Tuesday 11 March 2014

CHAPTER 15: CREATING COLLABORATIVE PARTNERSHIP

TEAMS, PARTNERSHIPS AND ALLIANCES

Organizations create and use teams, partnerships and alliances to;



  •   Undertake new initiatives
  •   Address both minor and major problems
  •  Capitalize on significant opportunities
  • Organizations create teams, partnerships and alliances both internally with employees and externally with other organizations
  • Collaboration system – supports the work of teams by facilitating the sharing and flow of information


Information partnerships with other organizations



  • Organizations from alliance and partnerships with other organizations based on their core competency
  •   Core competency – An organization’s key strength, a business function that it 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 technology can make a business partnership easier to establish and manage
  • Information partnerships – Occurs when two or more organizations cooperate by integrating their IT systems, thereby providing customers with the best of what each can offer
  • The internet has dramatically increased the ease and availability for IT – enabled organizational alliance and partnerships


COLLABORATION SYSTEMS


Collaboration solves specific business tasks such as telecommuting, online meetings, deploying applications, and remote project and sales management


Collaboration system – An IT- based set of tools that supports the work of teams by facilitating the sharing and flow of information.


Two categories of collaboration


1.       Unstructured collaboration (information collaboration) – includes document exchange, shared whiteboards, discussion forums, and email.


2.       Structured collaboration (process collaboration) – involves shared participation in business processes such as workflow in which knowledge is hard-coded as rules


Collaborative business functions 


Collaboration systems include;

-  Knowledge management systems
-  Content management systems
-  Workflow management systems
-  Groupware systems

KNOWLEDGE MANAGEMENT SYSTEMS


-Knowledge management (KM) – involves capturing, classifying, evaluating, retrieving and sharing information assets in a way that provides context for effective decisions and actions


-Knowledge management system – supports the capturing and use of an organization’s “know-how”



EXPLICIT AND TACIT KNOWLEDGE


 Intellectual and knowledge-based assets fall into two categories;


1.       Explicit knowledge – consists of anything that can be documented, archived, and codified, often with the help of IT


2.       Tacit knowledge – knowledge contained in people’s heads


The following are two best practices for transferring or recreating tacit knowledge


1.       Shadowing – less experienced staff observe more experienced staff to learn how their more experienced counterparts approach their work


2.       Joint problem solving – a novice and expert work together on a project

Reasons why organizations launch knowledge management programs 



CONTENT MANAGEMENT


-Content management system (CMS) – provides tools to manage the creation, storage, editing and publication of information in a collaborative environment


 CMS marketplace includes;

- Document management system (DMS)
-  Digital assets management system (DAM)
-  Web content management system (WCM)


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 allows 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 email 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 – software that supports teams interaction and dynamics including calendaring, scheduling and videoconferencing 


WEB CONFERENCING


Web conferencing – blends audio, video and document-sharing technologies to create virtual meeting rooms where people “gather” at a password-protected website



VIDEO CONFERENCING


Video conference – A set of interactive telecommunication technologies that allow two or more locations to interact via two-way video and audio transmissions simultaneously 



INSTANT MESSAGING



- Email is the dominant form of collaboration application, but real-time collaboration tools like instant messaging are creating a new communication dynamic


-Instant messaging – types 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 28 February 2014

CHAPTER 19: OUTSOURCING IN THE 21ST CENTURY


Outsourcing Projects
  • Types of sourcing

ü  In sourcing (in-house-development)
o   A common approach using the professional expertise within an organization to develop and maintain the organization’s information technology systems
o   Do sourcing with own department
o   Example: expert in IT. So do they expect in own department

ü  Outsourcing
o   An arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house
o   Example: Do the outsource in other company
  • 3 types of outsourcing

ü  Onshore outsourcing
o   Engaging another company within the same country for service
ü  Near shore outsourcing
o   Contracting an outsourcing arrangement with a company in a nearby country
o   Example: Singapore, Thailand and China
ü  Offshore outsourcing
o   Using organizations from developing countries to write code and develop systems
o   Example: Japan, Korea, united kingdom, Canada, and US

  • Factors driving outsourcing growth include:

ü  Core competencies
o   When use core competencies, we can get more benefit because we get focus about your expert and can get outsourcing
ü  Financial savings
o   Do the outsource with China because salary is cheapest
ü  Rapid growth
o   Growing faster. Put the initiative to do outsource with the develop company
ü  Industry changes
ü  The internet
o   For marketing, information, system, does with internet. Easy to use.
ü  Globalization
o   Don’t have excuses for do the outsources if don’t have the expert. Don’t to if not, we can get loss.

Outsourcing Benefits

ü  Increased quality and efficiency
ü  Reduced operating expenses
ü  Outsourcing non-core processes
ü  Reduced exposure to risk
ü  Economies of scale, expertise and best practices
ü  Access to advanced technologies
ü  Increased flexibility
ü  Avoid costly outlay of capital funds
ü  Reduced headcount and associated overhead expense
ü  Reduced time to market for products or services


Outsourcing Challenges

ü  Contract length
o   Difficulties in getting out of a contract. For example, do the contract with US 5 years. In 5 years, we cannot void the contract.
o   Problems in foreseeing future needs. For example, if someone came to our company to do the IT system, the workers maybe don’t want to know about IT.
o   Problems in reforming an internal IT department after the contract are finished.

ü  Competitive edge
ü  Confidentiality

ü  Scope definition

CHAPTER 14: E-BUSINESS

E-Business
  • The Internet is a powerful channel that presents new opportunities for an organization to:

v  Touch customers. (can see what the customer want)
v  Enrich products and services with information.
v  Reduce costs
  • How do e-commerce and e-business differ?

v  E-commerce – the buying and selling of goods and services over the Internet
v  E-business – the conducting of business on the Internet including, not only buying and selling, but also serving customers and collaborating with business partners
  • Industries Using E-Business



E-Business Models
  • E-Business model – an approach to conducting electronic business on the Internet






Business-to-Business (B2B)
  • 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 – aversion of a retail store where customers can shop at any hour of the day without leaving their home or office.
    •  E-mall – consists of a number of e-shops; it serves as a gateway through which a visitor can access other e-shops
  • Business types:
v  Brick-and-mortar business. (offline)
v  Pure-play business. (online)
v  Click-and-mortar business. (have a own business and also business in online)


Consumer-to-Business (C2B)
  • Priceline.com is an example of a C2B e-business model
  • 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

v  Electronic auction (e-auction) – sellers and buyers solicit consecutive bids from each other and prices are determined dynamically
v  Forward auction – sellers use as a selling channel to many buyers and the highest bid wins (the product increase, increase and increase)
v  Reverse auction – buyers use to purchase a product or service, selecting the seller with the lowest bid (buy the product with the high price but when want to sellers, the price will be decrease)

  • C2C communities include:

v  Communities of interest – people interact with each other on specific topics, such as golfing and stamp collecting
v  Communities of relations – people come together to share certain life experiences, such as cancer patients, senior citizens and car enthusiasts
v  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 include:

v  Highly accessible
v  Increased customer loyalty
v  Improved information content
v  Increased convenience
v  Increased global reach
v  Decreased cost
  • E-Business challenges include:

v  Protecting consumers
v  Leveraging existing systems
v  Increasing liability
v  Providing security
v  Adhering to taxation rules
  • There are numerous advantages and limitations in e-business revenue models including:

v  Transaction fees
v  License fees
v  Subscription fees
v  Value-added fees
v  Advertising fees
Mashups
  • Web mashup – a web site or web application that uses content from more than one sources to create a completely new service

v  Application programming interface (API) – a set of routines, protocols, and tools for building software applications

v  Mashup editor – WSYIWYGs (What You See Is What You Get) for mashups

Thursday 27 February 2014

CHAPTER 12: INTEGRATING THE ORGANIZATION FROM END TO END – ENTERPRISE RESOURCES PLANNING

Enterprise Resources Planning (ERP)
  • At the heart of all ERP systems is a database, when a user enters or updates information in one module, it is immediately and automatically updated throughout the entire systems
  • ERP systems automate business process


Integrating SCM, CRM,and ERP
  • SCM, CRM and ERP are the backbone of e-business
  • Integration of these applications is the key to success for many companies. SCM, CRM and ERP are not the same supplier
  • Integration allows the unlocking of information to make it available to any user, anywhere, anytime. The format and systems are not same.


Integration Tools
  • Many companies purchase modules from an ERP vendor, an SCM vendor, and a CRM vendor and must integrate the different modules together

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

Enterprise Resource Planning (ERP)
  • ERP systems must integrate various organization processes and be:

W      Flexible (update information and data in ERP system)
W      Modular and open (friendly. All users can login)
W      Comprehensive

W      Beyond the company (can do collaboration, relationship because use the ERP)

CHAPTER 11: BUILDING A CUSTOMER – CENTRIC ORGANIZATION – CUSTOMER RELATIONSHIP MANAGEMENT


Customer relationship management (CRM)

  • CRM enables an organization to:

W      Provide better customer service
W      Make call centers more efficient
W      Cross sell products more effectively
W      Help sales staff close deals faster
W      Simplify marketing and sales processes
W      Discover new customers
W      Increase customer revenues


Recency, Frequency, and Monetary Value
  • Organizations can find their most valuable customers through “RFM” –Recency, Frequency, and Monetary value

F      How recently a customer purchased items (Recency)
F      How frequently a customer purchased items (Frequency)
F      How much a customer spends on each purchase (Monetary Value)


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






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
  • Operational CRM and analytical CRM



Customer Relationship Management Success Factors
  • CRM success factors include:

W      Clearly communicate the CRM strategy
W      Define information needs and flows
W      Build an integrated view of the customer
W      Implement in iterations

W      Scalability for organizational growth

CHAPTER 10: EXTENDING THE ORGANIZATION – SUPPLY CHAIN MANAGEMENT


Supply Chain Management

  • Supply chain are all parties involved directly or indirectly
  •  The average company spends nearly half of every dollar that it earns on production
  • Involves the management of such an exchange of information from one party to the other party
  • Ensure the profit and production increased
  •  In the past, companies focused primarily on manufacturing and quality improvements to influence their supply chains
  • Before this, buy the product with supplies then sell. But now, the transfer of information in the supplier chain.
  • Example : supplier, manufacture, retailer, distributor, and customer


Basic of Supply Chain.

  • The supply chain has three main links :
    • 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



  •  plan
    •   to make customer demand
  • source
    • build relationship with the supplier
      • easy to negotiate
      • get discount
      • the price of product is cheapest
      • before sent the product, must pay first
  • make
    • make a product, get the materials, start with manufacturing
  • deliver
    • deliver to customers using fast and safe transportation
  • return
    • If the product are damage, how to solve.



Information Technology’s Role In The Supply Chain



  • Visibility
    • Supply chain visibility
      • The ability to view all areas up and down the supply chain. When we do the SCM system, we can see the visibility
    • Bullwhip effect
      • Occurs when distorted product demand information passes from one entity to the next throughout the supply chain. Example, the sugar. In the shop, we want buy the sugar. When the dealers see the sugar already is out of stock, the dealer call suppliers. When the suppliers also already are out of stock, he continues to call the retailer.

  • Consumer Behavior
    • Companies can respond faster and more effectively to consumer demands through supply chain enhances. Companies also can do forecasting customers behaviors. The SCM can do easy to consumer behavior system.
    • 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



  • Implementation
    • Focus on what is happening in the supply chain.
    • Payment involved can know with SCE.

  • Speed
    • three factors fostering speed



Supply Chain Management Success Factors




  •  SCM industry best practices include :
W      Make the sale to suppliers. (easy to suppliers)
W      Wean employees off traditional business practices. (no need to call the suppliers. Direct use the SCM)
W      Ensure the SCM system support the organizational goals. (must parallel)
W      Deploy in incremental phases and measure and communicate success. (with the SCM system, to success, must do progressively)
W      Be future oriented. (use SCM to do forecasting. Anticipated profit increased by using the SCM system)


SCM Success Stories
  • Numerous decision support systems (DSSs) are being built to assist decision makers in the design and operation of integrated supply chains
  • DSSs allow managers to examine performance and relationships over the supply chain and among:
    • Suppliers
    • Manufacturers
    • Distributors
    • Other factors that optimize supply chain performance