Chapter 15 - Outsourcing in the 21st Century

yeayyy !!! am going to update the last chapter.  "Outsourcing in the 21st Century"

Insourcing : 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. 

Onshore Outsourcing :-  engaging another company within the same country for sevices.

Nearshore Outsourcing :- contracting an outsourcing arrangement with a company in a nearby country. Often this country will share a border with the native country.

Offshoring Outsourcing :-  using organizations from developing countries to write code and develop systems. In offshore outsourcing the country is geographically far away.

§ 

FACTORS DRIVING OUTSOURCING GROWTH INCLUDES :- 

1. Core competencies
2. Financial saving
3. Rapid growth
4. Industry change
5. The Internet
6. Globalization

Most organizations outsource their noncore business function, such as payroll and IT :- 

OUTSOURCING BENEFIT :- 

• Increased quality and efficiency of a process, service, or function.
• Reduced operating expenses.
• Access to advanced technologies.
• Increased flexibility with the ability to respond quickly to changing market demands.
• No costly outlay of capital funds.

OUTSORCING CHALLENGE :- 

1. Contract Length
2. Competative edge 
3. Confidentially 
4. Scope defination 

CREDIT TO :-  

Last but not least, a zillion thanks to Madam NoorAzzura  for teaching us in this subject (MGT300) during our fourth semester and giving us the opportunity to finish this assignmnent by updating chapter by chapter. 

xoxo

dakwats.blogspot

Chapter 14 - Creating Collaborative Partnerships

What is Collaboration system :-

Support the works of team by facilitating the sharing and flow of information.

Information Technology can make a business partnership easier to establish and manage.

• Patnership occurs when two or more organization cooperates by intergrating their IT systems, thereby providing customers with the best of what each can offer.

There are two catogaries of collaboration : 

1. Unstructured collaboration (information collaboration) is includes document exchanges, shared whiteboard, and emails. 
2. Structured collaboration (process collaboration) is involve share participants in business processes such as workflow, in which knowledge is hardcorded as rules.

Collaborative business function :

Collaboration systems includes : 

KNOWLEDGE MANAGEMENT SYSTEM 

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

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

Explicit and Tacit Knowledge :

Ø  Intellectual and knowledge-based assets fall into two categories :-

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

·         Tacit knowledge - knowledge contained in people’s heads

Ø  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

CONTENT MANAGEMENT SYSTEMS

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

Ø  Business wikis - collaborative Web pages that allow users to edit documents, share ideas, or monitor the status of a project

Ø  Business wikis.

       

WORKFLOW MANAGEMENT SYSTEMS

Ø  Work activities can be performed in series or in parallel that involves people and automated computer systems.

Ø  Workflow – defines all the steps or business rules, from beginning to end, required for a business process.

Ø  Workflow management system – facilitates the automation and management of business processes and controls the movement of work through the business process.

Ø  Messaging-based workflow system – sends work assignments through an e-mail system.

Ø  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 – software that supports team interaction and dynamics including calendaring, scheduling, and videoconferencing


Ø  Videoconference - a set of interactive telecommunication technologies that allow two or more locations to interact via two-way video and audio transmissions simultaneously.
Ø  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 :-

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

Ø  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

xoxo,

dakwats.blogspot

Tutorial on Chapter 13 E-Business

Chapter 13 : E-Business 

Industrial using E-business :-

E-business Model an approach to conduct electronic business on the internet.

EXAMPLE FOR B2B, B2C, C2B, C2C  :

E-Business benefits include :-

- Highly accessible

- Increased customer loyalty

- Increased Global research

- Decrease cost

- Improved information content

- Increased convenience

There are Numerous advantages and limitations in e-business revenue models, includings :-

- Transaction fees

- Lisence fee

- Subcription fees

- Value-added fees

- Advertising fees

Web sites Mash-up : 

- Applications programming interface (API)

- Mash-up editor

Example for web mash-up : 

xoxo,

dakwats.blogspot

Tutorial on Chapter 11 & 12

CHAPTER 11 - BUILDING A CUSTOMER-CENTRIC ORGANIZATION-CUSTOMER RELATIONSHIP MANAGEMENT 

CRM enables an organization to :

 - Provide better customers service

 Make call centers more efficient

- Cross sell product more effectively

- Help sales staff close deals faster

- Simplify marketing and sales processes

- Discover new customers

- Increase customer revenues

Recency, Frequently, and Monetary value - organization can find their most valuable customer through "RCM"

• Recency - how recently customer purchased items
• Frequently - how frequent 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 organizations segments their customers into categories. 

- CRM predicting technologies : help organizations make predictions regarding customer  behaviour. 

Using analytical CRM to enhance decisions :

- Operational CRM : support traditional and transactional processing day to day.

- Analytical CRM : support backoffice operations and strategic analysis and includes all systems that do not deal directly with the customers.

CRM success factors  :

- 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 12 : Integrating the Organization from End to End-                          Enterprise Resource Planning.

Enterprise Resource Planning (ERP)

• It serves as the organization’s backbone in providing fundamental decision making support.
• It enables people in different business areas to communicate.
• ERP system helps an organization to obtain operational efficiencies, lower costs, improve supplier and customer relations, and increase revenues and market share.
• 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.

Bringing the Organization Together

·  ERP enables employees across the organization to share information across a single, centralize 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.

The Evolution before ERP : 

The Evolutions joins Together : 

The Evolutions of ERP : 

- Integrating of SCM, SRM, 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 is Oracle and 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 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.

To qualify as a true ERP solution, the system not only must integrate various organization processes, but also must 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.  Some organizations will begin with buying two modules, such as accounting and sales, and then will add modules, such as CRM and SCM, as they gain confidence in their current modules.  (Implementing in small pieces or phases – companies do not want to buy the entire ERP and spend years implementing twenty different modules to find that it doesn’t meet their need)

• 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

xoxo,

dakwats.blogspot

Tutorial on Chapter 9 & 10

CHAPTER 9 - ENABLING THE ORGANIZATION -DECISION MAKING .

The systems organizations use to make decisions and gain competitive advantages :

Reasons for the growth of decision-making information systems :

- People need to analyze large amounts of information.

- People must make decisions quickly

- People must protect the corporate assets of organizational information

Transactional Processing Systems :

• Transaction processing system
• Online transaction processing (OLTP)
• Online analytical processing (OLAP)

Models is a simplified representation or abstraction of reality and IT systems in an enterprise.

Transaction Processing Systems : 

Three quantitative models used by DSS includes : 

• Sensitivity Analysis
• What-if Analysis
• Goal-seeking Analysis 

Most EISs offering the following capabilities :

• Consolidation
• Drill-down
• Slice-and-dice 

Digital dashboard integrates information from multiple components and present it in a unified display.

Artificial Intelligence :

• Intelligent systems - is the various commericial applications of artificial intelligence

• Artificial intelligence (AI) - is simulates human intelligence such as the ability to reason and learn.

Four common categories of Al include :

1. Expert systems - for eg : Playing Chess
2. Neutral Network - for eg : Washing machines that determine by themselves how much water to use or how long to wash.
3. Genetic algorithm - for eg : Business executives use genetic algorithm to help them decide which combination of projects a firm should invest.
4. Intelligent agent - for eg : Shopping bot.software that will search several retailer's websites and provides a comparison of each retailer's offering including prive and availability.

so whatt is the DATA MINING : 

Common forms of data-mining analysis capabilities includes :

• 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.

• Association detection - reveals the degree to which variables are related and the nature and frequency of these relationship in the information.

• Statistical analysis - performs such functions as information correlations, distributuion, calculations, and variance analysis. 

now let's move to Chapter 10 - Extending the Organization Supply                                                 Chain Management 

Basics of Supply Chain : Organizational must embrace technologies that can effectively manage                                                  supply chains.

• Plan - A company must have a plan for managing all the resources that go toward meeting customer demand for products or services.

• Sources - Companies must carefully choose reliable suppliers that will deliver goods and services required for making products.

• Make - This is the step where companies manufacture their activities necessary for production, testing, packaging and preparing for delivery.

• Deliver (Logistic) - Companies must be able t receive orders from customers, fulfill the orders via a network of warehouses, pick transportation companies to deliver the products and implement a billing invoicing system to faciliate payments. 

• Return - This is typically the most problematic step in the supply chain. Companies must create a network for receiving defective and excess products and support customers who have problems with delivered products

Visibility : 

• Visibility
• Supply Chain Visibility
• Bullwhip Effect

Consumer Behaviour :

• Demand Planning Software

Competitions :

• Supply chain planning (SCP) software
• Supply chain execution (SCE) software

Speed :

Supply Chain Management Success Factors :

1.  Make the sale to suppliers.
2. Wean employees off traditional business pratices.
3. Ensure the SCM system supports the organizational goals.
4.  Deploy in incremental phases and measure and communicate success.
5. Be future oriented.

THANK YOU ..

xoxo,

dakwats.blogspot