Monday, 14 March 2016

CHAPTER 15 :Outsourcing in the 21st Century

19.1 Describe the advantages and   disadvantages of insourcing,   outsourcing, and offshore outsourcing

19.2 Describe why outsourcing is a   critical business decision

OUTSOURCING PROJECTS
Insourcing (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
Factors driving outsourcing growth include:
     §Core competencies
Many companies have recently begun to consider outsourcing as a means to fuel revenue growth rather than just a cost-cutting measure.
     §Financial savings
It is typically cheaper to hire workers in China and India than similar workers in the United States. 
§Rapid growth
an organization is able to acquire best-practices process expertise. This facilitates the design, building, training, and deployment of business processes or functions.
§Industry changes
High levels of reorganization across industries have increased demand for outsourcing to better focus on core competencies. 
§The Internet
The pervasive nature of the Internet as an effective sales channel has allowed clients to become more comfortable with outsourcing.
§Globalization
As markets open worldwide, competition heats up. Companies may engage outsourcing service providers to deliver international services


















CHAPTER 14 : Creating Collaborative Partnerships

15.1  Identify the different ways in which
    companies collaborate using technology
15.2  Compare the different categories of 
         collaboration technologies
15.3   Define the fundamental concepts of a 


          knowledge management system
15.4  Provide an examples of a content 
         management system along with its
         business purpose
15.5  Evaluate the advantages of using a
         workflow management system
15.6  Explain how groupware can benefit a
         business

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
Organizations form alliances 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 partnership – 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 alliances 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 information

Two categories of collaboration
1.Unstructured collaboration (information collaboration) - includes document exchange, shared whiteboards, discussion forums, and e-mail
2.Structured collaboration (process collaboration) - involves shared participation in business processes such as workflow in which knowledge is hardcoded as rules

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
§Shadowing – less experienced 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

KM Technologies
Knowledge management systems include:
§Knowledge repositories (databases)
§Expertise tools
§E-learning applications
§Discussion and chat technologies
§Search and data mining tools
INSTANT MESSAGING

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

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


CHAPTER 13 : E-Business

14.1  Compare e-commerce and e-business
14.2  Compare the four types of e-business
       models
14.3  Describe the benefits and challenges
       associated with e-business
14.4  Explain the differences among e-shops, e-

       malls, and online auctions
The Internet is a powerful channel that presents new opportunities for an organization to:
§Touch customers
§Enrich products and services with information
§Reduce costs

E-Commerce & E-Business
How do e-commerce and e-business differ?
§E-commerce – the buying and selling of goods and services over the Internet (online transactions)
§E-business – the conducting of business on the Internet including, not only buying and selling, but also serving customers and collaborating with business partners (online transactions, serving customers and collaborating with business partner)

Industries Using E-Business


-retail

-manufacturing

-travel

-healthcare



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

Electronic marketplace (e-marketplace)

Electronic marketplaces, or e-marketplaces, present structures for conducting commercial exchange, consolidating supply chains, and creating new sales channels
Their primary goal is to increase market efficiency by tightening and automating the relationship between buyers and sellers
Existing e-marketplaces allow access to various mechanisms in which to buy and sell almost anything, from services to direct materials

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 -mall – consists of a number of e-shops; it serves as a gateway through which a visitor can access other e-shops


Business-to-Consumer (B2C)
Business types:
§Brick-and-mortar business- operates in a physical store without an Internet presence. Eg: Bata.
§Pure-play business- a business that operates on the Internet only without a physical store. Examples include fashionvalet.com.

§Click-and-mortar business– a business that operates in a physical store and on the Internet .Eg: Hijabs by Hanami


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
§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

Consumer-to-Consumer (C2C)

C2C communities include:
§Communities of interest - People interact with each other on specific topics, such as golfing and stamp collecting
§Communities of relations - 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

There are numerous advantages and limitations in e-business revenue models including:
§Transaction fees
§License fees
§Subscription fees
§Value-added fees

§Advertising fees




Chapter 12 : Intergrating the Organizational from End to End- Enterprise Resource Planning

12.1  Describe the role information plays in enterprise resource planning systems
12.2  Identify the primary forces driving the explosive growth of enterprise resource planning systems

12.3  Explain the business value of integrating supply chain management, customer relationship management, and enterprise resource planning systems

ENTERPRISE RESOURCE PLANNING (ERP)

ERP systems must integrate various organization processes and be:
§Flexible
§Modular and open
§Comprehensive
§Beyond the company

- Serve as the organization's backbone in providing fundamental decision-making support.
                - 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 system






Bringing the Organization Together

- ERP enables employees across the organization to share information across a single,centralized database.


The Evolution of ERP


- 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


Integrating SCM, CRM, and ERP


- SCM, CRM, and ERP are the backbone of e-business
- Allows the unlocking of information to make it available to any user, anywhere, anytime
- Integration of these applications is the key to success for many companies
Integration Tools

- Many companies purchase modules from an ERP vendor, an SCM vendor, and a CRM vendor and must integrate the different modules together
  • Middleware – several different types of software which sit in the middle of and provide connectivity between two or more software applications 
  • Enterprise application integration (EAI) middleware – packages together commonly used functionality which reduced the time necessary to develop solutions that integrate applications from multiple vendors


Chapter 11 : Building a Customer-centric Organization- Customer Relationship Management.

11.1  Compare operational and analytical customer   relationship management
11.2  Identify the primary forces driving the explosive   growth of customer relationship management
11.3  Define the relationship between decision   making and analytical customer relationship   management

11.4  Summarize the best practices for implementing   a successful customer relationship   management system


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, Frequency, and Monetary value
  • How recently a customer purchased items (Recency)
  • How frequently a customer purchased items (Frequency)
  • 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


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

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

CHAPTER 10 : EXTENDING THE ORGANIZATION SUPPLY CHAIN MANAGEMENT

10.1  List and describe the components of a typical       
          supply chain
10.2  Define the relationship between decision
         making and supply chain management
10.3  Describe the four changes resulting from advances in IT that are driving supply chains
10.4  Summarize the best practices for implementing a  

         successful supply chain management system

Supply Chain Management


The average company spends nearly half of every dollar that it earns on production 

In the past, companies focused primarily on manufacturing and quality improvements to influence their supply chains

Basics of Supply Chain

The supply chain has three main links:
  1. Materials flow from suppliers and their “upstream” suppliers at all levels
  2. Transformation of materials into semifinished and finished products through the organization’s own production process
  3. Distribution of products to customers and their “downstream” customers at all levels




Information Technology’s Role in the Supply Chain


IT’s primary role is to create integrations or tight process and information linkages between functions within a firm





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 through 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


Speed


Three factors fostering speed



Supply Chain Management Success Factors



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