Saturday, 28 December 2013

Outsourcing in the 21st Century Organization

Posted by Unknown at 21:24 0 comments
In sourcing

> In sourcing (in-house-development)

= A common approach using the professional expertise within an organization to develop and maintain the organization's information technology systems


Outsourcing

  •  An arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house

# Different forms of outsourcing options a project must consider:

> Onshore outsourcing

= Engaging another company within the same country for services.

> Near shore outsourcing

= Contracting an outsourcing arrangement with a company in a nearby country. Often this country will share a border within  the native country

> Offshore Outsourcing

= Using organizations from developing countries to write code and develop systems. In offshore outsourcing the country is geographically far away

# Reasons company outsource


# Benefits from outsourcing:

~ Financial savings
*  Example: Ford, Chrysler & GM shared CAD/ CAM, e-mail msg & shipping comm- reduce cost of producing cars

~ Increased technical abilities
  - Consequences
  • More expense to upgrade system
  • More time to install
  • Increase complexity to master
~ Market agility
    - Ability to expend core buss more rapidly depending on outsources capabilities to provide:
  • Efficient transition to new system
  • Better info. Mgt for decision making
  • Expansion to new geographical market
# Factors driving outsourcing growth:

~ Core competencies
  • Maintain update technology while freeing it to focus on core buss
~ Rapid growth
  • Market condition always change. Outsourcing enable organization to acquire best practices process expertise.
~ Industry changes
  • M&A force company to change their organization thus outsourcing can make it better for organization to focus on the core competencies
~ The Internet
  • Make outsourcing easier with the communication accessibility.
Developing Strategic Outsourcing Partnerships

> Business process outsourcing (BPO)

= contracting of a specific business task, such as payroll, to a third-party service provider

# Categories of BPO
  • Back-office outsourcing includes internal buss function.
      * Example: Billing and purchasing
  • Front-office outsourcing includes customer-related services
    * Example: marketing and technical support
Sourcing's New Surge - Off shoring

> Offshore outsourcing

= Using organizations from developing countries to write code and develop systems
  • According to Forrester Research, nearly half of all businesses use offshore providers, and two-thirds plan to send work overseas in the near future.

Creating Collaborative Partnership

Posted by Unknown at 20:26 0 comments
Teams, Partnerships and Alliances

  • Use this element to:
        ~ undertake new initiatives
        ~ address both minor and major problems
        ~ capitalize on significant opportunities

> Collaborating system

= Supports the work of teams by facilitating the sharing and flow of information



  • Organization form alliances and partnerships with other organizations based on their core competency
> Core competency

=An organization's key strength, a business function that does better than any of its competitors.

> Core competency strategy

= Organization chooses to focus specifically on its core competency and forms partnerships with other organizations to handle nonstrategic business processes.

> Information Partnership

= Occurs when two or more organizations cooperate by integrating their IT systems, thereby providing customers with the best of what each can offer.

Collaboration System
  • Collaboration solves specific business tasks such as telecommuting, online meetings, deploying applications and management
> Collaboration system

= An IT-based set of tools that supports the work of teams by facilitating the sharing and flow of information

# Categories of collaboration

> Unstructured collaboration ( information collaboration)

= Includes document exchange, shared white boards, discussion forums and e-mail

> Structured collaboration (process collaboration)

= Involves shared participation in business processes such as workflow in which knowledge is harcoded as rules.

# Collaborative business functions


# Collaboration systems

> Knowledge management systems
  • Supports the capturing and use of an organization's "know-how"
~ Knowledge management (KM)

= Involves capturing, classifying, evaluating, retrieving and sharing information assets in a way that provides context for effective decisions and actions.

> Content management systems
  •  Provides tools to manage the creation, storage, editing and publication of information in a collaborative environment.
> Workflow management system
  • Controls the movement of work through a business process.
> Group ware systems
  • Software that supports team interaction and dynamics including calendaring, scheduling and videoconferencing.
Explicit and Tacit Knowledge
  •  Intellectual and knowledge-based assets categories:
> Explicit knowledge

= Consists of anything that can be documented, archived and codified often with the help of IT
* Payroll information, customer address, student grades and faculty course taught.

> Tacit knowledge

= Knowledge contained in people's heads
* How to perform a process, how to perform an activity and how you feel about something.

# Best practices for transferring or recreating tacit knowledge

> Shadowing

= Less experiences staff observe more experienced staff to learn how their more experienced counterparts approach their work.

> Joint problem solving

=  A novice and expert work together on a project.

# Reasons why organizations launch knowledge management programs


 KM Technologies
  • Knowledge management systems:
       ~ Knowledge repositories (databases)
       ~ Expertise tools
       ~ E-learning applications
       ~ Discussion and chat technologies
       ~ Search and data mining tools

KM and Social Networking
  • Finding out how information flows through an organization
> Social networking analysis (SNA)

= A process of mapping a group's contacts (whether personal or professional) to identify who knows whom and who work with whom
SNA provides a clear picture how employees and divisions work together and can help identify key experts.

Content management

> Content management system (CMS)

= Provides tools to manage the creation, storage, editing and publication of information in collaborative environment.

# CMS marketplace includes:
  
> Document management system (DMS)

= supports the electronic capturing, storage, distribution, archival and accessing of documents.

  > Digital asset management system (DAM)

= Similar to DMS, generally works with binary rather than text files, such as multimedia files types.

> Web content management system (WCM)

= Adds an additional layer to document and digital asset management that enables publishing content both to intranets and public Web sites.

  • Content management system vendor overview


Working Wikis

> Wikis

= Web-based tools that make it easy for users to add, remove and change online content

> Business wikis

= Collaborative Web pages that allow users to edit documents, share ideas or monitor the status of a project.

Workflow Management Systems
  •  Work activities can be performed in series or in parallel that involves people and automated computer systems.
> Workflow

= Defines all the steps or business rules from beginning to end, required for a business process

> Workflow management system 

= Facilitates the automation and management of business processes and controls the movement of work through the business process.

> Messaging-based workflow system

= Sends work assignments through an e-mail system

> Database-based workflow system

= Stores documents in a central location and automatically asks the team members to access the document when it is their turn to edit the document.

Groupware Systems
  • Groupware technologies

# Groupware system advantages



Videoconferencing
  •  A set of interactive telecommunication technologies that allow two or more locations to interact via two-way video and audio transmissions simultaneously
Web conferencing
    •  Blends audio, video and document-sharing technologies to create virtual meeting rooms where people "gather" at a password-protected Web site.
Instant messaging
  • Type of communications service that enables someone to create a kind of private chat room with another individual to communicate in real-time over the Internet.
# Instant messaging application



Friday, 27 December 2013

E-Business

Posted by Unknown at 21:29 0 comments
E-Business


  • The differences between e-commerce and e-business
         > E-commerce

     = The buying and selling of goods and services over the internet.

       > E-business

     = The conducting of business on the Internet including, not only buying and selling nut also serving customers and collaborate with business partners.

  • Industries using E-business






E-Business Models


  •  An approach to conducting electronic business on the Internet







# Business-to-Business

> Electronic marketplace (e-marketplace)

= interactive business communities providing a central market where multiple buyers and sellers can engage in e-business activities.


# Business-to-consumer (B2C)


  •  Common B2C e-business models include:
      > e-shop 

    = A version of a retail store where customers can shop at any hour of the day without leaving their home or office

     > e-mail

  = Consists of a number of e-shop, it serves as a gateway through which a visitor can access other e-shops.

  • Business types;


     > Brick-and-mortar business

     = Operates in a physical store without an Internet presence.

       > Pure-play business

     = A business that operates on the Internet only without a physical store
       * Example: Amazon.com and Expedia.com

       > Click-and-mortar business

     = A business that operates in a physical store and on the Internet.
       * Example: Barnes and Noble.

# Consumer-to-Business (C2B)

  • Example of a C2B e-business model is Priceline.com
  • The demand for C2B e-business will increase over the next few years due to customer's desire for greater convenience and lower prices.


# Consumer-to-Consumer (C2C)

  • Online auctions
     > Electronic auction (e-auction)
   
   = Sellers and buyers solicit consecutive bids from each other and prices are determined dynamically.
  

    > Forward auction

   = Sellers use as a selling channel to many buyers and the highest bid wins.

    > Reverse auction

   = Buyers use to purchase a product or service, selecting the seller with the lowest bid.

  •  C2C communities
    > Communities of interest

   = People interact with each other on specific topics, such as golfing and stamp collecting.

     > Communities of relation

   = People come together to share certain life experiences, such as cancer patients, senior citizens and car enthusiasts.


    > Communities of fantasy

   = People participate in imaginary environments, such as fantasy football teams and playing one-on-one with Michael Jordan.

E-Business Benefits and Challenges

  • E-business benefits:
    > Highly accessible

    = Businesses can operate 24 hours a day, 7 days a week, 365 days a year.

      > Increased customer loyalty

    = Additional channels to contact, respond to and access customers helps contribute to customer loyalty

    > Improved information content

   = In  the past, customers had to order catalogs or travel to a physical facility before they could compare price and products attributes. Electronic catalogs and Web pages present customers with updated information in real-time about goods, services and prices.

      > Increased convenience

    = E-business automates and improves many of the activities that make up a buying experience.

    > Increased global reach

    = Businesses, both small and large can reach new markets.

      > Decreased cost

  = The cost of conducting business on the Internet is substantially smaller than traditional forms of business communication

  • E-business challenges:
      ~ Protecting consumers
      ~ Leveraging existing systems
      ~ Increasing liability
      ~ Providing security
      ~ Adhering to taxation rules

  • Advantages and limitations in e-business revenue model:
        ~ Transaction fees
        ~ License fees
        ~ Subscription fees
        ~ Value-added fees
        ~ Advertising fees

Mashups

# Web mashup

= A Web site or Web application that uses content from more than one source to create a completely new service.

 > Application programming interface (API)

 = A set of routines protocols and tools for building software applications

 > Mashup editor

 = WSYIWYGs (What You See Is What You Get) for mashups.


  

Integrating the Organization from End to End-Enterprise Resource Planning

Posted by Unknown at 20:25 0 comments

Enterprise Resource Planning (ERP)

  • Main component of an ERP systems is a database. Which when a users enters or updates information in one module, it is immediately and automatically updated throughout the entire system.
 

  • ERP systems automate business processes



Bringing the Organization Together
  • The organization before ERP



  • The organization after ERP




The Evolution of ERP




Integrating SCM, CRM and ERP
  • These three component are the backbone of e-business.
  • integrating these three element is the key to success for many companies
  • integration allows the unlocking of information to make it available to any user, anywhere and anytime.


  • SCM and CRM market overwiews






  • General audience and purpose of SCM, CRM and ERP






Integration tools

  •  Middle ware - several different types of software which sit in the middle of and provide connectivity between two or more software applications.
  •  Enterprise application integration (EAI) - packages together commonly used functionality which reduces the time necessary to develop solutions that integrate applications from multiple vendors

  •  Data points where SCM, CRM and ERP integrate




Enterprise Resource Planning (ERP)
  • ERP systems must integrate various organization processes and be:
         > Flexible
       
      = must be able to quickly respond to the changing needs of the organization.

        > Modular and Open

     =  must have an open system architecture, meaning that any module can be interface, with or detached whenever required without affecting the other modules.

       > Comprehensive 

    = must be able to support a variety of organizational functions for a wide range of businesses,

      > Beyond the company

    = must support external partnerships and collaboration efforts

Thursday, 26 December 2013

Building a Customer- Centric Organization- Customer Relationship Management

Posted by Unknown at 20:29 0 comments
Customer Relationship Management (CRM)

  • CRM enables an organization to:
            * Provide better customer service
            * Make call centers more efficient
            * Cross sell products more effectively
            * Help sales staff close deals faster
            * Simplify marketing and sales processes
            * Discover new customers
            * Increase customer revenues.

Recency, Frequency and Monetary Value
  • Organizations can find their most valuable customers through "RFM"-
           * Recency - How recently a customer purchased items

            * Frequency - How frequency a customer purchased items

             * Monetary value - How much a customer spends on each purchase.

The Evolution of CRM

> CRM reporting technology

= Help organizations identify their customers across other applications.

> CRM analysis technologies

= Help organization segment their customers into categories such as best and worst customers.

> CRM predicting technologies

= Help organizations make predictions regarding customer behavior such as which customers are at risk of leaving.

  • Three phases in the evolution of CRM include reporting, analyzing, and predicting.



The Ugly Side of CRM


Customer Relationship Management's Explosive Growth
  •  CRM Business Drivers


Using Analytical CRM to Enhance Decisions

> Operational CRM

= Supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers.

> Analytical CRM 

= Supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers.
  • The primary difference between the two is the direct interaction between the organization and its customer.
  • Operational CRM and analytical CRM


Customer Relationship Management Success Factors
  • CRM success factors include:
           * Clearly communicate the CRM strategy
           * Define information needs and flows
           * Build an integrated view of the customer
           * Implement in iterations
           * Scalability for organizational growth.


Extending the organization-Supply Chain Management

Posted by Unknown at 19:25 0 comments
Basics of Supply Chain

  • Three main links of supply chain:
            * Materials flow from suppliers and their "upstream" suppliers at all levels
           * Transformation of materials into semi finished and finished products through the organization's own production process.
             * Distribution of products to customers and their "downstream" customers at all levels.

  • Technologies that effectively manage supply chains must be embrace by an organization.




# Plan 

> Aim

= Plan for managing all the resources that go toward meeting customer demand for products or services.

> Activity

= Develop a set of metrics to monitor the supply chain so that it is efficient, cost less and  delivers high quality and value to customers

# Sources

> Aims

= Choose reliable suppliers that will deliver goods and services required for making products
= Develop a set of pricing, delivery and payment processes with suppliers and create metrics for monitoring and improving the relationships.

# Make

> Activity

= Include scheduling the activities necessary for production, testing, packaging and preparing for delivery.

# Delivery

  • Also known as logistic.
> Logistics

= The set of processes that plans for and controls the efficient and effective transportation and storage of supplies from suppliers to customers.

> Activity

= Companies must be able to receive order from customers, fulfill the orders via a network of warehouse, pick transportation companies to deliver the products and implement a billing and invoicing system to facilitate payments.

# Return

> Activity

= Create a network for receiving defective and excess products and support customers who have problems with delivered products.

Information Technology's Role in the Supply Chain.
  •  IT's primary roles is to create integrations or tight process and information linkages between functions within a firm.


  • Factors Driving SCM




Visibility

> Supply chain visibility

= The ability to view all areas up and down the supply chain.

> Bullwhip effect

= Occurs when distorted product demand information passes from one entity to the next throughout the supply chain.

Consumer Behavior
  •  Companies can respond faster and more effectively to consumer demands trough supply chain enhances.
> Demand planning software

= Generates demand forecasts using statistical tools and forecasting techniques.

Competition

> Supply chain planning (SCP) software

= Uses advanced mathematical algorithms to improve the flow and efficiency of the supply chain.

> Supply chain execution (SCE) software

= Automates the different steps and stages of the supply chain.
  • SCP and SCE in the supply chain
Speed

  • Three factors fostering speed:
         

Supply Chain Management Success Factors.


  • SCM industry best practices includes:
         * Make the sale to suppliers
         * Wean employees off traditional business practices
         * Ensure the SCM system supports the organizational goals.
         * Deploy in incremental phases and measure and communicate succes
         * Be future oriented.

SCM Success Stories.
  •  Top reasons why more executives are turning to SCM to manage their extended enterprises.

  • Decision Support Systems (DSSs) are built to assist decision makers in the design and operation of integrated supply chains. It also allow managers to examine performance and relationships over the supply chain and among:
                * Suppliers
                * Manufacturers
                * Distributors
                * Other factors that optimize supply chain performance.

 

Wednesday, 25 December 2013

Enabling the Organization-Decision making

Posted by Unknown at 20:49 0 comments

Decision Making

  • Reasons for the growth of decision-making information systems:
          * People need to analyze large amounts of information
          * People must make decisions quickly
           * People must apply sophisticated analysis techniques, such as modeling and forecasting to make a good decisions.
           * People must protect the corporate asset of organizational information.

# Model

= A simplified representation or abstraction of reality.
  • Models can calculate risks, understand uncertainty, change variables and manipulate time.
  • IT systems in an enterprise

#  Executive information systems (EIS)

= A specialized DSS that supports senior level executives within the organization.

# Decision support system (DSS)

= Models information to support managers and business professionals during the decision-making process.

# Artificial intelligence (AI)

= Stimulates human intelligence such as the ability to reason and learn.

# Data mining

= Typically includes many forms of AI such as neural networks and expert systems. Data mining tools apply algorithms to information sets to uncover inherent trends and patterns in the information.

Transaction Processing Systems
  • Moving up through the organizational pyramid users move from requiring transactional information to analytical information.
  • At the lower levels of the pyramid, people perform daily tasks such as processing transactions.
  • Moving up through the organizational pyramid, people typically the managers deal less with the details and more with meaningful aggregations of information that help them to make broader decisions for the organization.
# Transaction processing system

= The basic business system that serves the operational level (analysts) in an organization.

# Online transaction processing (OLTP)

= The capturing of transaction and event information using technology to:
  • process the information according to defined business rules.
  • store the information
  • update existing information to reflect the new information.
# Online analytical processing (OLAP)

= The manipulation of information to create business intelligence in support of strategic decision making.

Decision Support Systems
  • Models information to support managers and business professionals during the decision-making process.
  • Three quantitative models used by DSSs:
           * Sensitivity analysis - the study of the impact that changes in one or more parts of the model have on other parts of the model.
         
            * What-if analysis - checks the impact of a change in an assumption on the proposed solution.
          
       * Goal-seeking analysis - finds the inputs necessary to achieve a goal such as a desired level of output.
  •  What-if analysis


   * This figure displays Excel being used as a DSS to determine "what-if" analysis by using Excel's Scenario Manager to determine what will happen to total sales as the price and quantity of units sold changes.

  • Goal-seeking analysis



    * This figure displays Excel being used as a DSS to determine "goal-seeking" by using Excel's Goal Seek tool to determine how much money a person can borrow with an interest rate of 5.5 % and a monthly payment of $ 1,300.
  • Interaction between a TPS and a DSS.
         * The TPS supplies transaction-based data to the DSS.
     * The DSS summarizes and aggregates the information from the different TPS systems which assists managers in making informed decisions.

Executive Information Systems
  •  A specialized DSS that supports senior level executives within the organization.
  • Most EISs offering the following capabilities:
          * Consolidation - Involves the aggregation of information and features simple roll-ups to complex groupings of interrelated information.
          
              *Drill-down - Enables users to get details and details of details of information.
            
              * Slice-and-dice - Looks at information from different perspectives.
  • Interaction between a TPS and an EIS 


         * The EIS needs information fron the TPS to help executives makes decisions.
               
  * Without knowing the order information, inventory information and shipping information from the TPSs, it would be difficult for the CEO to make strategic decisions for the organization.

# Digital dashboard 

= Integrates information from multiple components and presents it in a unified display.



Artificial Intelligence (AI)

# Intelligent system

= Various commercial applications of artificial intelligence.

# Artificial intelligence

= Stimulates human intelligence such as the ability to reason and learn.
  • It advantages is it can check info on competitor.
> Four most common categories of AI include:
  
 * Expert system - Computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems.
   
     * Neural Network - A mathematical method of handling imprecise or subjective information.

  * Genetic algorithm - An artificial intelligent system that mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem.
   
 * Intelligent agent - Special-purposed knowledge-based information system that accomplishes specific tasks on behalf of its user
   - Multi-agent systems
      -Agent-based modeling.

Data Mining
  •  Data-mining software includes many forms of AI such as neural networks and expert systems.
  • Data-mining tools apply algorithms to informations sets to uncover inherent trends and patterns in the information.
  • Analysts use this information to develop new business strategies and business solutions.
  • Common forms of data-mining analysis capabilities include:
# Cluster Analysis

= A technique used to divide an information set into mutually exclusive groups such that the members of each group are as close together as possible to one another and the different groups are as far apart as possible.
  • CRM systems depend on cluster analysis to segment customer information and identify behavioral traits.
# Association detection

= reveals the degree to which variables are related and the nature and frequency of these relationships in the information.

   * Market basket analysis - Analyzes such items as Web sites and checkout scanner information to detect customers' buying behavior and predict future behavior by identifying affinities among customers choices of products and services.


# Statistical analysis 

= Performs such functions as information correlations, distributions, calculations and variance analysis.

   * Forecast - Predictions made on the basis of time-series information.
   * Time-series information - Time-stamped information collected at a particular frequency.