Saturday, March 8, 2014

Chapter 19 : Outsourcing in the 21st century.

HELLO there people on earth :) 



           As we all know we are all leaving now in a 21st century, many things has changed.....in IT we can see a HUGE change in the way we Outsource. There are many advantage and disadvantage. So today i shall walk you through the changes it has in the outsourcing process :)

OUTSOURCING PROJECTS

> Insourcing (in-house-development) as a common approach using the professional expertise within an organization to develop and maintain the organization’s information technology systems.
> Outsourcing is an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house.

The three different forms of outsourcing options a project must consider are:

1. Onshore outsourcing – engaging another company within the same country for services.
 2. Near shore outsourcing – contracting an outsourcing arrangement with a company in a nearby country.
   3 .Offshore outsourcing – using organizations from developing countries to write code and develop systems.




Some of the influential drives affecting the growth of the outsourcing market include:

> Core competencies.
> Financial savings.
> Rapid growth.
> Industry changes.
> The Internet.
> Globalization.


OUTSOURCING BENEFITS

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

Lastly we have.....

OUTSOURCING CHALLENGES

 Outsourcing challenges include:
> Contract length:
1. Difficulties in getting out of a contract.
2. Problems in foreseeing future needs.
3. Problems in reforming an internal IT department after the contract is finished.
> Competitive edge.
> Confidentiality.
> Scope definition. 

                                                                                                                - THE END -

P/S: HERE  IS A WEB THAT I FOUND THAT MIGHT GIVE YOU A CLEARER IMAGE OF THIS TOPIC :)
http://online.wsj.com/news/articles/SB10001424052748703882404575520232436064498

 

Saturday, March 1, 2014

Chapter 15: Creating Collaborative Partnerships

Goodmorning :)Hope this will makes things a lot easier to Understand.....Happy Reading!!


TEAMS, PARTNERSHIPS AND ALLIANCES

 - Organizations create and use teams, partnerships and alliances to:
      1. Undertake new initiatives. 
      2. Address both minor and major problems. 
      3. 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”.


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:
  1. Document Management System (DMS).
  2. Digital Assets Management System (DAM).
  3. Web Content Management System (WCM).


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 .






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: 




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.


WEB CONFERENCING

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




VIDEOCONFERENCING

 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. 


Sunday, February 23, 2014

Chapter 14: Ebusiness

Hello :)
 i have found a video that would very much explain the whole chapter....do enjoy! :D

chapter 12: Integrating the Organization from End to End--ERP.

Enterprise Resource Planning (ERP)
·         It serves as the organization’s backbone in providing fundamental decision making support.
·         The heart of an ERP system is a central database that collects information from and feeds information into all the ERP system’s individual application components (called modules), supporting diverse business function such as accounting, manufacturing, marketing, and human resources.
·         ERP automates business processes such as order fulfillment- taking an order from a customer, shipping the purchase, and then billing for it.

ERP Integration Data Flow




Bringing the Organization Together
·  ERP enables employees across the organization to share information across a single, centralized database.
·  With extended portal capabilities, an organization can also involve its suppliers and customers to participate in the workflow process, allowing ERP to penetrate the entire value chain, and help the organization achieve greater operational efficiency.

 Organization before ERP


 ERP- Bringing the Organization Together




The Evolution of ERP
·      Although ERP solutions were developed to deliver automation across multiple units of an organization, to help facilitate the manufacturing process and address issues such as raw materials, inventory, order entry, and distribution, ERP was unable to extend to other functional areas of the company such as sales, marketing, and shipping. It could not tie to any CRM capabilities that would allow organizations to capture customer-specific information, nor did it work with websites or portals used for customer service or order fulfillment.



Integrating SCM, CRM, and ERP
·      Integration of SCM, CRM, and ERP is the key to success for many companies.
·      Integration allows the unlocking of information to make it available to any user, anywhere, anytime.
·      2 main competitors in ERP market:
§         Oracle
§         Sap
 Primary Users and Business Benefits of Strategic Initiatives.

Integration Tools
·         An integrated enterprise infuses support areas, such as finance and human resources, with a strong customer orientation.
·         Integration are achieved using:
§   Middleware- several different types of software that sit in the middle of and provide connectivity between two or more software applications. It translates information between disparate systems
·         Enterprise application integration (EAI) middleware- represents a new approach to middleware by packaging together commonly used functionality, such as providing prebuilt links to popular enterprise applications, which reduces the time necessary to develop solutions that integrate applications from multiple vendors.
 Integration between SCM, CRM, and ERP Applications.
·         Companies run on independent applications, such as SCM, CRM, and ERP. If one application performs poorly, the entire customer value delivery system is affected.
Enterprise Resource Planning’s Explosive Growth:
Reasons of ERP being proven to be such a powerful force:
·         ERP is a logical solution to the mess of incompatible applications that had sprung up in most businesses.
·         ERP addresses the need for global information sharing and reporting.
·         ERP is used to avoid the pain and expense of fixing legacy systems
To qualify as a true ERP solution, the system not only must integrate various organization processes, but also must be:
·         Flexible- an ERP system should be flexible in order to respond to the changing needs of an enterprise.
·         Modular and open- an ERP system has to have open system architecture, meaning that any module can be interfaced with or detached whenever required without affecting the other modules. The system should support multiple hardware platforms for organizations that have a heterogeneous collection of systems. It must also support third- party add-on components.
·         Comprehensive- an ERP system should be able to support a variety of organizational functions and must be suitable for a wide range of business organizations.
·         Beyond the company- an ERP system must not be confined to organizational boundaries but rather support online connectivity to business partners or customers.
Everyone involved in sourcing, producing, delivering the company’s product works with the same information, which eliminates redundancies, cuts wasted time, and removes misinformation.

chapter 11: Building a Customer-centric Organization- CRM

Hello :)
So before we start... here is a short video to brief you in to what is CRM...enjoy :)



Recently, Frequency, and Monetary Value

An organization can find its most valuable customers by using a formula that industry insiders call RFM-recency, frequency, and monetary value. In other words, an organization must track:
- How recently a customer purchased items (recently)
- How frequently a customer purchases an item (frequently
- How much a customer spends on each purchase (monetary value)


The evolution of CRM
Knowing the customer, especially knowing the profitability of individual customers, is highly lucrative in the financial service industry.

There are three phases in the evolution of CRM:
1.                               CRM Reporting technology help organizations identify their customers across other applicants
2.                               CRM analysis technology helps organizations segment their customers into categories such as best and worst customers.
3.                               CRM predicts technological help organizations make predictions regarding customer behavior such as which customers are at risk of leaving.
 
Using Analytical CRM to Enhance Decisions
The two components of a CRM strategy are:
- 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 operational CRM and analytical CRM in the direct interaction between the organization and its customer
 
The Ugly Side of CRM: Why CRM Matters More Now than Ever Before
Now companies have no choice as the power of the customer grows exponentially as the internet grows. In every case, customers have become an integral part of the action as a member of the aggregated, interactive, self-organizing, auto-entertaining audience on businesses. However, this should no be a surprise, since it was the customers crazy passion and hobbies and obsessions-that build up the web in the first place.
                                                                                           - Have a good day-

chapter 10: Extending the Organization- SCM.

Goodmorning!

Supply Chain Management (SCM)? in a nutshell what SCM is the management of information flows and between and among stages in the supply chain to maximize effectiveness and profitability.

Information Technology's Role in the Supply Chain
- The notion of virtually seamless information links within and between organizations is an essential element of integrated supply chain.
- Information technology's primary role in SCM is creating the integration or tight process and information linkages between functions within a firm.
- Information technology integrates planning, decision -making processes, business operating processes, and information sharing for business performance management.
- Considerable evidence shows that this type of supply chain integration results in superior supply chain capabilities and profits.


+VISIBILITY
Supply chain visibility is the ability to view all areas up and down the supply chain.
Bullwhip effect occurs when distorted products demand information passes from one entity to the next through the supply chain.
*Information technology allows additional visibility in the supply chain.

+CONSUMER BEHAVIOR
Demand planning software generates demand forecasts using statistical tools and forecasting techniques.
Ones an organization understand customer demand and its effect on the supply chain it can begging to estimate the impact that its supply chain will have on its customers and ultimately the organization's performance.

+ COMPETITION
Supply chain management can be broken down in"
Supply chain planning software: uses advanced mathematical algorithms to improve the flow and efficiency of the supply chain while reducing inventory. SCP depends entirely on information for its accuracy.
Supply chain executive (SCE) software automates the different stems and stages of the supply chain.

+SPEED
During the past decade, competition has focused on speed. New forms of severs, telecommunications enabling companies to perform activities that were once never thought possible.
Another aspect of speed is the company's ability to satisfy continually changing customer requirements efficiently, accurately, and quickly. 

Supply Chain Management Success Factors
To succeed in today's competitive markets, companies must align their supply chains with the demands of the markets key serve.
To achieve success such as reducing operation costs, improving asset productivity, and compressing order cycle time, and organization should follow the seven principles of SCM outlines.
One of the benefits is to know immediately what is being transacted at the customer and of the supply chain instead of waiting days or weeks for the information to flow.
Organizations should study industry best practices to improve their chances of successful implementation of SCM systems. The following are keys to SCM success.

+ MAKE THE SALE TO SUPPLIERS
The hardest part of any SCM system is its complexity because a large part of the system extends beyond the company's walls.

+ WEAN EMPLOYEES OF TRADITIONAL BUSINESS PRACTICES
Operations people typically deal with phone calls, faxes, and orders scrawled on paper and will most likely want to keep it that way.

+ENSURE THE SCM SYSTEM SUPPORTS THE ORGANIZATIONAL GOALS
It is important to select SCM software that give organizations and advantage in the areas most crucial to their business success.

+ DEPLOY IN INCREMENTAL PHASES AND MEASURE AND MOMMUNICATE SUCCESS
Design the deployment of the SCM system in incremental phases.

+ BE FUTURE ORIENTED
The supply chain design must anticipate the future state of the business

                                                                -goodbye-