tag:blogger.com,1999:blog-55472938399270967242024-03-04T20:52:16.304-08:00MGT300Farihassanalhttp://www.blogger.com/profile/02486694140808963721noreply@blogger.comBlogger14125tag:blogger.com,1999:blog-5547293839927096724.post-85378978486446636952021-03-05T10:36:00.000-08:002021-03-05T10:36:55.152-08:00 MGT300<div style="text-align: center;">
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<strong><u>CHAPTER 1 - BUSINESS DRIVEN TECHNOLOGY</u></strong> </div>
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<b><span lang="EN-US" style="font-family: "Times New Roman","serif";">Learning outcomes</span></b></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-hansi-theme-font: major-bidi;">- Information technology (IT) - a field concerned with the use of technology in managing and processing information.<o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-hansi-theme-font: major-bidi;">- Information technology is an important enabler of business success and innovation<o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-hansi-theme-font: major-bidi;">- Management information system (MIS)-a general name for the business function and academic discipline covering the application of people, technologies, and procedures to solves business problems.<o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-hansi-theme-font: major-bidi;">- MIS is a business function, similar to Accounting, Finance, Operations, and Human Resources.<o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-hansi-theme-font: major-bidi;">#Information Functional Culture - employees use information as a means of exercising influence of power over others. For example, a manager in sales refuses to shares information with marketing to need the sales manager’s input each time a new sales strategy is developed.<o:p></o:p></span></div>
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Farihassanalhttp://www.blogger.com/profile/02486694140808963721noreply@blogger.com0tag:blogger.com,1999:blog-5547293839927096724.post-7710843907840869582017-12-18T23:41:00.001-08:002017-12-18T23:41:10.451-08:00<h3>
<u>Chapter 14 – Creating Collaborative Partnerships</u> </h3>
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<b>TEAMS, PARTNERSHIPS AND ALLIANCES <o:p></o:p></b></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Organizations create and use teams, partnerships and alliances to;<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Undertake new initiatives<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Address both minor and major problems<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Capitalize on significant opportunities <o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Organizations create teams, partnerships and alliances both internally with employees and externally with other organizations<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Collaboration system – supports the work of teams by facilitating the sharing and flow of information <o:p></o:p></div>
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Information partnerships with other organizations<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Organizations from alliance and partnerships with other organizations based on their core competency<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Core competency – An organization’s key strength, a business function that it does better than any of its competitors <o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Core competency strategy – Organization chooses to focus specifically on its core competency and forms partnerships with other organizations to handle nonstrategic business processes<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Information technology can make a business partnership easier to establish and manage <o:p></o:p></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 1in; mso-add-space: auto; mso-list: l1 level1 lfo3; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->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 <o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->The internet has dramatically increased the ease and availability for IT – enabled organizational alliance and partnerships<o:p></o:p></div>
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<b>COLLABORATION SYSTEMS<o:p></o:p></b></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Collaboration solves specific business tasks such as telecommuting, online meetings, deploying applications, and remote project and sales management<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Collaboration system – An IT- based set of tools that supports the work of teams by facilitating the sharing and flow of information.<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Two categories of collaboration <o:p></o:p></div>
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<!--[if !supportLists]-->1.<span style="font-size: 7pt;"> </span><!--[endif]-->Unstructured collaboration (information collaboration) – includes document exchange, shared whiteboards, discussion forums, and email.<o:p></o:p></div>
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<!--[if !supportLists]-->2.<span style="font-size: 7pt;"> </span><!--[endif]-->Structured collaboration (process collaboration) – involves shared participation in business processes such as workflow in which knowledge is hard-coded as rules<o:p></o:p></div>
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Collaborative business functions <o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Collaboration systems include;<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Knowledge management systems<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Content management systems <o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Workflow management systems <o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Groupware systems<o:p></o:p></div>
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<b>KNOWLEDGE MANAGEMENT SYSTEMS<o:p></o:p></b></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Knowledge management (KM) – involves capturing, classifying, evaluating, retrieving and sharing information assets in a way that provides context for effective decisions and actions<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Knowledge management system – supports the capturing and use of an organization’s “know-how”<o:p></o:p></div>
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<b>EXPLICIT AND TACIT KNOWLEDGE<o:p></o:p></b></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Intellectual and knowledge-based assets fall into two categories;<o:p></o:p></div>
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<!--[if !supportLists]-->1.<span style="font-size: 7pt;"> </span><!--[endif]-->Explicit knowledge – consists of anything that can be documented, archived, and codified, often with the help of IT<o:p></o:p></div>
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<!--[if !supportLists]-->2.<span style="font-size: 7pt;"> </span><!--[endif]-->Tacit knowledge – knowledge contained in people’s heads<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->The following are two best practices for transferring or recreating tacit knowledge<o:p></o:p></div>
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<!--[if !supportLists]-->1.<span style="font-size: 7pt;"> </span><!--[endif]-->Shadowing – less experienced staff observe more experienced staff to learn how their more experienced counterparts approach their work<o:p></o:p></div>
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<!--[if !supportLists]-->2.<span style="font-size: 7pt;"> </span><!--[endif]-->Joint problem solving – a novice and expert work together on a project<o:p></o:p></div>
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Reasons why organizations launch knowledge management programs <o:p></o:p></div>
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<b>CONTENT MANAGEMENT<o:p></o:p></b></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Content management system (CMS) – provides tools to manage the creation, storage, editing and publication of information in a collaborative environment <o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->CMS marketplace includes;<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Document management system (DMS)<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Digital assets management system (DAM)<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Web content management system (WCM)<o:p></o:p></div>
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<b>WORKING WIKIS<o:p></o:p></b></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Wikis – web-based tools that make it easy for users to add, remove, and change online content<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Business wikis – collaborative web pages that allows users to edit documents, share ideas or monitor the status of a project<o:p></o:p></div>
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<b>WORKFLOW MANAGEMENT SYSTEMS<o:p></o:p></b></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Work activities can be performed in series or in parallel that involves people and automated computer systems<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Workflow – defines all the steps or business rules, from beginning to end, required for a business process<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Workflow management system – facilitates the automation and management of business processes and controls the movement of work through the business process <o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Messaging-based workflow system – sends work assignments through an email system<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->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 <o:p></o:p></div>
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<b>GROUPWARE SYSTEMS<o:p></o:p></b></div>
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Groupware technologies<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Web conferencing – blends audio, video and document-sharing technologies to create virtual meeting rooms where people “gather” at a password-protected website<o:p></o:p></div>
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<b>VIDEOCONFERENCING<o:p></o:p></b></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Video conference – A set of interactive telecommunication technologies that allow two or more locations to interact via two-way video and audio transmissions simultaneously </div>
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<b>INSTANT MESSAGING</b><br />
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Email is the dominant form of collaboration application, but real-time collaboration tools like instant messaging are creating a new communication dynamic<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->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<o:p></o:p></div>
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Farihassanalhttp://www.blogger.com/profile/02486694140808963721noreply@blogger.com0tag:blogger.com,1999:blog-5547293839927096724.post-7416795138602450642017-12-18T23:41:00.000-08:002017-12-18T23:41:00.709-08:00<h3>
<u>Chapter 13 – Creating Collaboration Partnership through E-business</u> </h3>
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<b>E BUSINESS <o:p></o:p></b></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->The internet is a powerful channel that presents new opportunities for organization to;<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Touch customers <o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Enrich products and services with information<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Reduce costs<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->How do ecommerce and e business differ?<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Ecommerce – the buying and selling of goods and services over the internet <o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->E business – the conducting of business on the internet including, not only buying and selling, but also serving customers and collaborating with business partners <o:p></o:p></div>
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<span style="font-family: "calibri" , "sans-serif"; font-size: 11pt; line-height: 115%;">Industries Using E business </span><br />
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<b>E BUSINESS MODELS<o:p></o:p></b></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->E business model – An approach to conducting electronic business on the Internet <o:p></o:p></div>
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<b>Business-to-Business (B2B)<o:p></o:p></b></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Electronic marketplace (E market place) – interactive business communities providing a central market where multiple buyers and sellers can engage in e business activities. <o:p></o:p></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLt4zz3Ri2SRKU1OEdnzgzk20uDDTbbipJYGTyVaUlS0haHTmHddyVKp5X7SmnFtTiP_sAEodjNMbmL1ZsxPJAvgV9pTyII0zXKYFSfZJR9qb0G6fNk2R7JcLvuWMhTsCPqxS4ljviFwMi/s1600/143.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLt4zz3Ri2SRKU1OEdnzgzk20uDDTbbipJYGTyVaUlS0haHTmHddyVKp5X7SmnFtTiP_sAEodjNMbmL1ZsxPJAvgV9pTyII0zXKYFSfZJR9qb0G6fNk2R7JcLvuWMhTsCPqxS4ljviFwMi/s320/143.png" width="320" /></a></div>
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<b>Business-to-Consumer (B2C)<o:p></o:p></b></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Common B2C e business models include;<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->E shop – A version of retail store where customers can shop at any hour of the day without leaving their home or office<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->E mall – consists of a number of e shops; it serves as a gateway through which a visitor can access other e shops<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Business types;<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Brick-and-mortar business<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Pure-play business<o:p></o:p></div>
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<b>Consumer-to-Business (C2B)<o:p></o:p></b></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Priceline.com is an example of a C2B e business model<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->The demand for C2B e business will increase over the next few years due to customer’s desire for greater convenience and lower prices<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Online auctions <o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Electronic auction (E auction) – Sellers and buyers solicit consecutive bids from each other and prices are determined dynamically<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Forward auction – Sellers use as a selling channel to many buyers and the highest bid wins<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Reverse auction – Buyers use to purchase a product or service, selecting the seller with the lowest bid<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->C2C communities include;<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Communities of interest – People interact with each other on specific topics, such as golfing and stamps collecting <o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Communities of relations – People come together to share certain life experiences, such as cancer patients, senior citizens, and car enthusiasts<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Communities of fantasy – People participate in imaginary environments, such as fantasy football teams and playing one-to-one with Michael Jordan<o:p></o:p></div>
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EBUSINESS BENEFITS AND CHALLENGES <o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->E business benefits include;<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Highly accessible <o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Increased customer loyalty <o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Improved information content<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Increased convenience<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Increased global reach <o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Decreased cost<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->E business challenges include;<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Protecting consumers <o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Leveraging existing systems<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Increased liability <o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Providing security<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Adhering to taxation rules<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->There are numerous advantages and limitations in e business revenue models including;<o:p></o:p></div>
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MASHUPS<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Web mash up – A Web site or Web application that uses content from more than one source to create a completely new services<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "wingdings"; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><!--[endif]-->Application programming interface (API) – A set of routines, protocols, and tools for building software applications<o:p></o:p></div>
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Farihassanalhttp://www.blogger.com/profile/02486694140808963721noreply@blogger.com0tag:blogger.com,1999:blog-5547293839927096724.post-13178086025480579702017-12-18T23:40:00.000-08:002017-12-18T23:40:48.325-08:00<h3>
<u>Chapter 12 - Integrating The Organization From The End To End - Enterprise Resource Planning</u> </h3>
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Enterprise Resource Planning (ERP)<br />
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<li>It serves as the organization’s backbone in providing fundamental decision making support.</li>
<li>It enables people in different business areas to communicate. </li>
<li>ERP system helps an organization to obtain operational efficiencies, lower costs, improve supplier and customer relations, and increase revenues and market share.</li>
<li>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. </li>
<li> ERP automates business processes such as order fulfillment- taking an order from a customer, shipping the purchase, and then billing for it. </li>
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<u>ERP Integration Data Flow </u></div>
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<u>ERP Process Flow</u> </div>
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Bringing the Organization Together </div>
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<li style="text-align: left;"> ERP enables employees across the organization to share information across a single, centralized database.</li>
<li style="text-align: left;">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.</li>
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<u>Organization before ERP </u></div>
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<u>ERP- Bringing the Organization Together </u></div>
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<u>The Evolution of ERP</u> </div>
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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</div>
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<u>Integrating SCM, CRM, and ERP</u></div>
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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: </div>
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<u>Primary Users and Business Benefits of Strategic Initiatives.</u></div>
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Integration Tools</div>
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<li>An integrated enterprise infuses support areas, such as finance and human resources, with a strong customer orientation. </li>
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* <b>Middleware</b>- 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.</div>
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* <b>Enterprise application integration (EAI) middleware</b>- 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.</div>
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Integration between SCM, CRM, and ERP Applications.</div>
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<li>Companies run on independent applications, such as SCM, CRM, and ERP. If one application performs poorly, the entire customer value delivery system is affected.</li>
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Enterprise Resource Planning’s Explosive Growth:</div>
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Reasons of ERP being proven to be such a powerful force:</div>
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<li>ERP is a logical solution to the mess of incompatible applications that had sprung up in most businesses. </li>
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To qualify as a true ERP solution, the system not only must integrate various organization processes, but also must be:</div>
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<li> <b>Flexible</b>- an ERP system should be flexible in order to respond to the changing needs of an enterprise. </li>
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<li> <b>Comprehensive</b>- an ERP system should be able to support a variety of organizational functions and must be suitable for a wide range of business organizations. </li>
<li> <b>Beyond the company</b>- an ERP system must not be confined to organizational boundaries but rather support online connectivity to business partners or customers.</li>
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Everyone involved in sourcing, producing, delivering the company’s product works with the same information, which eliminates redundancies, cuts wasted time, and removes misinformation.</div>
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Farihassanalhttp://www.blogger.com/profile/02486694140808963721noreply@blogger.com0tag:blogger.com,1999:blog-5547293839927096724.post-79134630889987939702017-11-20T00:24:00.002-08:002017-11-20T00:24:18.258-08:00<h3>
<u>CHAPTER 11 - BUILDING A CUSTOMER CENTRIC ORGANIZATION - CUSTOMER RELATIONSHIP MANAGEMENT</u> </h3>
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<br /><span style="font-size: medium;"><u>ADVANTAGES OF CUSTOMER RELATIONSHIP MANAGEMENT</u></span><br /></div>
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<li>provide better customer service</li>
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<li>make call centers more efficient</li>
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<li>cross sell products more effectively </li>
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<li>helps sales staff close deals faster</li>
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<li>simplify marketing and sales processes</li>
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<li>discover new customers</li>
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<li>increase customer revenues</li>
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<span style="font-size: medium;"><u>RECENCY, FREQUENCY, AND MONETARY VALUE</u></span></div>
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<b>Recency</b> - how recently a customer purchased items</div>
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<b>Frequency</b> - how frequently a customer purchased items</div>
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<b>Monetary value</b> - how much a customer spends on each purchase</div>
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<span style="font-size: medium;"><u>EVOLUTION OF CRM</u></span></div>
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<li>CRM reporting technology - help organization identify their customers across other applications</li>
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<li>CRM analysis technologies - help organization segment their customers into categories such as best an worst customer</li>
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<li>CRM predicting technologies - helps organizations make predictions regarding customer behavior such as which customers are at risk of leaving</li>
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<u><span style="font-size: medium;">CUSTOMER RELATIONSHIP MANAGEMENTS EXPLOSIVE GROWTH</span></u></div>
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<li>CRM business driver</li>
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<li>forecast for CRM spending (in billion)</li>
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<span style="font-size: medium;"><u>STRATEGY TO ENHANCE DECISIONS </u></span></div>
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<li><b>Operational CRM</b> - supports traditional transactional processing for day-to-day front office operations or systems that deal directly with the customers </li>
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<li><b>Analytical CRM</b> - supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customer </li>
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<span style="font-size: medium;"><u>CUSTOMER RELATIONSHIP MANAGEMENT SUCCESS FACTORS</u></span><br /><br /><ul>
<li>clearly communicate the CRM strategy</li>
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<li>define information needs and flows </li>
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<li>scability for organizational growth</li>
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Farihassanalhttp://www.blogger.com/profile/02486694140808963721noreply@blogger.com0tag:blogger.com,1999:blog-5547293839927096724.post-18964459666408522492017-11-20T00:21:00.004-08:002017-11-20T00:21:26.124-08:00<h3 class="post-title entry-title" itemprop="name" style="font-family: 'Mountains of Christmas'; font-size: 24px; line-height: normal; margin: 0.75em 0px 0px; position: relative;">
<u>Chapter 10 – Extending the Organization – Supply Chain Management </u></h3>
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BASICS OF SUPPLY CHAIN<o:p></o:p></div>
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<span style="font-family: inherit; font-size: 14px;"><b>SCM</b> </span><span style="font-size: 14px;">–</span> the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability <o:p></o:p></div>
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The supply chain has three main links.<o:p></o:p></div>
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1. Materials flows from suppliers and their upstream suppliers at all levels <o:p></o:p></div>
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2. Transformation of materials into semi-finished products, or the organization’s own production processes</div>
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3. Distribution of products to customers and their downstream customers at all levels<o:p></o:p></div>
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INFORMATION TECHNOLOGY’S ROLE IN THE SUPPLY CHAIN<o:p></o:p></div>
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<span style="font-size: 14px;"> </span>Information technology’s primary role in SCM is creating the integrations or tight process and information linkages between functions within a firm such as marketing, sales, finance, manufacturing, and distribution – and between firms, which allow the smooth, synchronized flow of both information and product between customers, suppliers and transportation providers across the supply chain<o:p></o:p></div>
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<span style="font-size: 12pt; line-height: 18.39px;">VISIBILITY <o:p></o:p></span><br />
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<span style="font-family: "symbol"; line-height: 18.39px;"><span style="font-size: small;">·</span><span style="font-family: "times new roman"; line-height: normal;"><span style="font-size: 7pt;"> </span> </span></span><span style="line-height: 18.39px;">Supply Chain Visibility is the ability to view all areas up and down the supply chain. Changing supply chains requires a comprehensive strategy buoyed by information technology. Organizations can use technology tools that help them integrate upstream and downstream, with both customers and suppliers.<o:p></o:p></span></div>
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<span style="font-family: "symbol"; line-height: 18.39px;">·<span style="font-family: "times new roman"; line-height: normal;"> </span></span><span style="line-height: 18.39px;">The bullwhip effect occurs when distorted product demand information passes from one entity to the next throughout the supply chain.<o:p></o:p></span></div>
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<span style="font-size: 12pt; line-height: 18.39px;">CUSTOMER BEHAVIOR<o:p></o:p></span><br />
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<span style="font-family: "symbol"; line-height: 18.39px;"><span style="font-size: small;">·</span><span style="font-family: "times new roman"; font-size: 7pt; line-height: normal;"> </span><span style="font-family: "times new roman"; line-height: normal;"> </span></span><span style="line-height: 18.39px;">The behavior of customers has changed the way businesses complete. Customers will leave if a company does not continually meet their expectations. They are more demanding because they have information readily available, they know exactly what they want, and they know when and how they want it.<o:p></o:p></span></div>
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<span style="font-family: "symbol"; line-height: 18.39px;">·<span style="font-family: "times new roman"; line-height: normal;"> </span></span><span style="line-height: 18.39px;">Demand planning software generates demand forecasts using statistical tools and forecasting techniques. Companies can respond faster and more effectively to consumer demands through supply chain enhancements such as demand planning software.<o:p></o:p></span></div>
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<span style="font-family: "symbol"; line-height: 18.39px;">·<span style="font-family: "times new roman"; line-height: normal;"> </span></span><span style="line-height: 18.39px;">Once an organization understands customer demand and its effect on the supply chain it can begin to estimate the impact that its supply chain will have on its customers and ultimately the organization’s performance.<o:p></o:p></span></div>
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<span style="font-size: 12pt; line-height: 18.39px;">COMPETITION<o:p></o:p></span><br />
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<span style="font-family: "symbol"; font-size: 12pt; line-height: 18.39px;">·<span style="font-family: "times new roman"; font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 12pt; line-height: 18.39px;">Supply chain planning (SCP) 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.<o:p></o:p></span></div>
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<span style="font-family: "symbol"; font-size: 12pt; line-height: 18.39px;">·<span style="font-family: "times new roman"; font-size: 7pt; line-height: normal;"> </span></span><span style="font-size: 12pt; line-height: 18.39px;">Supply chain execution (SCE) software automates the different steps and stages of the supply chain. This could be as simple as electronically routing orders from a manufacturer to a supplier.<o:p></o:p></span></div>
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<span style="font-size: 12pt; line-height: 18.39px;">SPEED <o:p></o:p></span><br />
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<span style="font-family: "symbol"; font-size: 12pt; line-height: 18.39px;">·<span style="font-family: "times new roman"; font-size: 7pt; line-height: normal;"> </span></span><span style="line-height: 18.39px;">These systems raise the accuracy, frequency and speed of communication between suppliers and customers, as well as between internal users.<span style="font-size: small;"> <o:p></o:p></span></span></div>
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<span style="font-family: "symbol"; line-height: 18.39px;">·<span style="font-family: "times new roman"; line-height: normal;"> </span></span><span style="line-height: 18.39px;">Another aspect of speed is the company’s ability to satisfy continually changing customer requirements efficiently, accurately and quickly.<o:p></o:p></span></div>
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<span style="font-size: 12pt; line-height: 18.39px;">SUPPLY CHAIN MANAGEMENT SUCCESS FACTORS<o:p></o:p></span><br />
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<span style="font-family: "symbol"; font-size: 12pt; line-height: 18.39px;">·<span style="font-family: "times new roman"; font-size: 7pt; line-height: normal;"> </span></span><span style="line-height: 18.39px;">To succeed in today’s competitive markets, companies must align their supply chain with the demands of the markets they serve.<span style="font-size: small;"><o:p></o:p></span></span></div>
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<span style="font-family: "symbol"; line-height: 18.39px;">·<span style="font-family: "times new roman"; line-height: normal;"> </span></span><span style="line-height: 18.39px;">Supply chain performance is now a distinct competitive advantage for companies proficient in the SCM area.<o:p></o:p></span></div>
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<span style="font-size: 12pt; line-height: 18.39px;">MAKE THE SALE TO SUPPLIERS<o:p></o:p></span><br />
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<span style="line-height: 18.39px;">The hardest part of any SCM system is its complexity because a large part of the system extends beyond the company’s walls. Not only will the people in the organization need to change the way they work, but also the people from each supplier that is added to the network must change. Be sure suppliers are on board with the benefits that the SCM system will provide.<span style="font-size: small;"><o:p></o:p></span></span></div>
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<span style="font-size: 12pt; line-height: 18.39px;">WEAN EMPLOYEES OFF TRADITIONAL BUSINESS PRACTICES</span><br />
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<span style="font-size: 12pt; line-height: 18.39px;">Operations people typically deal with phone calls, faxes and orders scrawled on paper and will most likely want to keep it that way. Unfortunately, an organization cannot disconnect the telephones and fax machines just because it is implementing a supply chain management system. If the organization cannot convince people that using the software will be worth their time, they will easily find ways to work around it, which will quickly decrease the changes of success for the SCM system.</span></div>
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<span style="font-size: 12pt; line-height: 18.39px;">ENSURE THE SCM SYSTEM SUPPORTS THE ORGANIZATION GOALS<o:p></o:p></span><br />
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<span style="font-size: 12pt; line-height: 18.39px;">It is important to select SCM software that gives organizations an advantage in the areas most crucial to their business success. If the organizational goals support highly efficient strategies, be sure the supply chain design has the same goals.<o:p></o:p></span></div>
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<span style="font-size: 12pt; line-height: 18.39px;">DEPLOY IN INCREMENTAL PHASE AND MEASURE AND COMMUNICATE SUCCESS<o:p></o:p></span><br />
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<span style="font-size: 12pt; line-height: 18.39px;">Design the development of the SCM system in incremental phases. For instance, instead of installing a complete supply chain management system across the company and all suppliers at once, start by getting it working with a few key suppliers, and then move on to the other suppliers. Along the way, make sure each step is adding value through improvements in the supply chain’s performance. While a big-picture perspective is vital to SCM success, the incremental approach means the SCM system should be implemented in digestible bites and also measured for success one step at a time.<o:p></o:p></span></div>
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<span style="font-size: 12pt; line-height: 18.39px;">BE FUTURE ORIENTED <o:p></o:p></span><br />
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<span style="font-size: 12pt; line-height: 18.39px;">The supply chain design must anticipate the future state of the business. Because the SCM system likely will last for many more years than originally planned, managers need to explore how flexible the systems will be when (not if) changes are required in the future. The key is to be certain that the software will meet future needs, not only current needs. <o:p></o:p></span></div>
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Farihassanalhttp://www.blogger.com/profile/02486694140808963721noreply@blogger.com0tag:blogger.com,1999:blog-5547293839927096724.post-52214035880273760652017-11-20T00:21:00.003-08:002017-11-20T00:21:20.786-08:00<h3 class="post-title entry-title" itemprop="name" style="color: #222222; font-family: 'Mountains of Christmas'; font-size: 24px; line-height: normal; margin: 0.75em 0px 0px; position: relative;">
<u>Chapter 9 – Enabling the Organization-Decision Making</u></h3>
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Decision Making <o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Reasons for Growth of Decision Making Information System <o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>People need to analyze large amounts of information – Improvements in technology itself, innovations in communication, and globalization have resulted in a dramatic increase in the alternatives and dimensions people need to consider when making a decision or appraising an opportunity<o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>People must make decisions quickly – Time is of the essence and people simply do not have time to sift through all the information manually <o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>People must apply sophisticated analysis techniques, such as modeling and forecasting, to make good decisions – Information systems substantially reduce the time required to perform these sophisticated analysis techniques<o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>People must protect the corporate asset of organizational information – Information systems offer the security required to ensure organizational information remains safe.<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Model – A simplified representation or abstraction of reality<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>IT systems in an enterprise</div>
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Transaction Processing System<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Moving up through the organizational pyramid users move from requiring transactional information to analytical information</div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Transaction processing system – the basic business system that serves the operational level (analysis) in an organization<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Online transaction processing (OLTP) – the capturing of transaction and event information using technology to (1) process the information according to defined business rules, (2) store the information, (3) update existing information to reflect the new information <o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Online analytical processing (OLAP) – the manipulation of information to create business intelligence in support of strategic decision making<o:p></o:p></div>
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Decision support systems<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Decision support system (DSS) – models information to support managers and business professionals during the decision-making process<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Three quantitative models used by DSSs include; <o:p></o:p></div>
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1.<span style="font-size: 7pt;"> </span>Sensitivity analysis – the study of the impact that changes in one (or more) parts of the model have on other parts of the model<o:p></o:p></div>
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2.<span style="font-size: 7pt;"> </span>What-if analysis – checks the impact of a change in an assumption on the proposed solution <o:p></o:p></div>
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3.<span style="font-size: 7pt;"> </span>Goal-seeking analysis – finds the inputs necessary to achieve a goal such as a desired level of outputs<o:p></o:p></div>
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What-if analysis<o:p></o:p></div>
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Executive information system <o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Executive information system (EIS) – A specialized DSS that supports senior level executives within the organization<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Most EISs offering the following capabilities;<o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Consolidation – involves the aggregation of information and features simple roll-ups to complex groupings of interrelated information<o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Drill-down – enables users to get details, and details of information<o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Slice-and-dice – looks at information from different perspectives<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Interaction between a TPS and an EIS<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Interaction between a TPS and a DSS<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Digital dashboard – integrates information from multiple components and presents it in a united display<o:p></o:p></div>
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Artificial intelligence (AI)<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>The ultimate goal of AI is the ability to build a system that can mimic human intelligence<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Intelligent system – various commercial applications of artificial intelligence<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Artificial intelligence (AI) – simulates human intelligence such as the ability to reason and learn<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Four most common categories of AI include;<o:p></o:p></div>
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1.<span style="font-size: 7pt;"> </span>Expert system – computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems<o:p></o:p></div>
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2.<span style="font-size: 7pt;"> </span>Neural network – attempts to emulate the way the human brain works<o:p></o:p></div>
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<span style="font-family: "courier new";">o<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Fuzzy logic – a mathematical method of handling imprecise or subjective information<o:p></o:p></div>
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3.<span style="font-size: 7pt;"> </span>Genetic algorithm – an artificial intelligent system that mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem<o:p></o:p></div>
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4.<span style="font-size: 7pt;"> </span>Intelligent agent – special-purposed knowledge-based information system that accomplishes specific tasks on behalf of its users<o:p></o:p></div>
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Data Mining<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Data-mining software includes many forms of AI such as neutral networks and expert systems</div>
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Farihassanalhttp://www.blogger.com/profile/02486694140808963721noreply@blogger.com0tag:blogger.com,1999:blog-5547293839927096724.post-28131205058781419202017-11-20T00:21:00.002-08:002017-11-20T00:21:14.861-08:00<div class="post-body entry-content" id="post-body-319773471451459186" itemprop="description articleBody" style="line-height: 1.4; position: relative; width: 550px;">
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<span style="font-family: "mountains of christmas"; font-size: 24px;"><b><u>Chapter 8 – Accessing Organizational Information – Data Warehouse</u></b></span></div>
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What is Data Warehouse?<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Defined in many different ways, but not rigorously<o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>A decision support database that is maintained separately from the organization’s operational database.<o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>A consistent database source that bring together information from multiple sources for decision support queries.<o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Support information processing by providing a solid platform of consolidated, historical data for analysis.<o:p></o:p></div>
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History of Data Warehousing<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>In the 1990’s executives became less concerned with the day-to-day business operations and more concerned with overall business functions<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>The data warehouse provided the ability to support decision making without disrupting the day-to-day operations, because;<o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Operational information is mainly current – does not include the history for better decision making<o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Issues of quality information<o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Without information history, it is difficult to tell how and why things change over time<o:p></o:p></div>
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Data warehouse fundamentals<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Data warehouse – A logical collection of information – gathered from many different operational databases – that supports business analysis activities and decision-making takes<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>The primary purpose of a data warehouse is to combined information throughout an organization into a single repository for decision-making purposes – data warehouse support only analytical processing <o:p></o:p></div>
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Data warehouse model <o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Extraction, transformation and loading (ETL) – A process that extracts information from internal and external databases, transforms the information using a common set of enterprise definitions, and loads the information into a data warehouse. <o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Data warehouse then send subsets of the information to data mart.<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Data mart – contains a subset of data warehouse information.<o:p></o:p></div>
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Multidimensional Analysis and Data Mining <o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Relational Database contains information in a series of two-dimensional tables.<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>In a data warehouse and data mart, information is multidimensional, it contains layers of columns and rows<o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Dimension – A particular attribute of information</div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Cube – common term for the representation of multidimensional information<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Once a cube of information is created, users can begin to slice and dice the cube to drill down into the information. <o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Users can analyze information in a number of different ways and with number of different dimensions.<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Data Mining – the process of analyzing data to extract information not offered by the raw data alone. Also known as “knowledge discovery” – computer-assisted tools and techniques for sifting through and analyzing vast data stores in order to finds trends, patterns and correlations that can guide decision making and increase understanding</div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>To perform data mining users need data-mining tools<o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Data-mining tool – uses a variety of techniques to finds patterns and relationships in large volumes of information. Eg: retailers and use knowledge of these patterns to improve the placement of items in the layout of a mail-order catalog page or Web page.<o:p></o:p></div>
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Information Cleansing or Scrubbing <o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>An organization must maintain high-quality data in the data warehouse<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Information cleansing or scrubbing – A process that weeds out and fixes or discards inconsistent, incorrect or incomplete information<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Occurs during ETL process and second on the information once if is in the data warehouse<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Contract information in an operational system <o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Standardizing Customer name from Operational Systems<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Information cleansing activities<o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Missing Records or Attributes <o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Redundant Records <o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Missing Keys or Other Required Data<o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Erroneous Relationships or References<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Business Intelligence – refers to applications and technologies that are used to gather, provides access, analyze data and information to support decision making efforts <o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>These systems will illustrate business intelligence in the areas of customer profiling, customer support, market research, market segmentation, product profitability, statistical analysis, and inventory and distribution analysis to name a few<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Eg; Excel, Access<b><o:p></o:p></b></div>
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Farihassanalhttp://www.blogger.com/profile/02486694140808963721noreply@blogger.com0tag:blogger.com,1999:blog-5547293839927096724.post-58135377738234393412017-11-20T00:21:00.001-08:002017-11-20T00:21:09.966-08:00<h3 class="post-title entry-title" itemprop="name" style="color: #222222; font-family: 'Mountains of Christmas'; font-size: 24px; line-height: normal; margin: 0.75em 0px 0px; position: relative;">
<u>Chapter 7 - Storing Organizational Information - Database</u></h3>
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RELATIONAL DATABASE FUNDAMENTALS</div>
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<span style="font-size: 7pt; text-indent: -0.25in;"><b> -</b> </span><span style="text-indent: -0.25in;">Information is everywhere in an organization</span></div>
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<span style="text-indent: -0.25in;">- Information is stored in databases</span></div>
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<o:p></o:p><br /></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Database – maintains information about various types of objects (inventory), events (transactions), people (employees), and places (warehouses)<o:p></o:p></div>
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<span style="font-size: 7pt;"> - </span>Database models include;<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Hierarchical database model – information is organized into a tree-like structure (using parent/child relationships) in such a way that it cannot have too many relationships.<b><o:p></o:p></b></div>
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<b> </b> <span style="font-family: "wingdings"; text-indent: -0.25in;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><span style="text-indent: -0.25in;">Network database model – a flexible way of representing objects and their relationships</span><br />
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<span style="font-weight: bold; text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;"> </span><span style="font-family: "wingdings"; text-indent: -0.25in;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><span style="text-indent: -0.25in;">Relational database model – stores information in the form of logically related two-dimensional tables</span><br />
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ENTITIES AND ATTRIBUTES <o:p></o:p></div>
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<b>-</b><span style="font-size: 9px; font-weight: bold;"> </span>Entity – a person, place, thing, transaction, or event about which information is stored<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>The rows in each table contains the entities <o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Attributes (fields, columns) – characteristics or properties of an entity class<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>The columns in each table contain the attributes<o:p></o:p></div>
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KEYS AND RELATIONSHIPS<o:p></o:p></div>
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<b>-</b><span style="font-size: 7pt; font-weight: bold;"> </span>Primary keys and foreign keys identity the various entity classes (tables) in the database<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Primary key – a fields (or group of fields) that uniquely identities a given entity in a table<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Foreign key – a primary key of one table that appears an attribute in another table and acts to provide a logical relationships among the two tables <o:p></o:p></div>
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RELATIONAL DATABASE ADVANTAGES <o:p></o:p></div>
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<b>-</b><span style="font-size: 7pt; font-weight: bold;"> </span>Database advantages from a business perspective include; <o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Increased flexibility<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Increased scalability and performance <o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Reduced information redundancy<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Increased information integrity (quality)<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Increased information security<o:p></o:p></div>
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INCREASED FLEXIBILITY<o:p></o:p></div>
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<b>-</b><span style="font-size: 7pt; font-weight: bold;"> </span>A well-designed database should; <o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Handle changes quickly and easily <o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Provide users with different views <o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Have only one physical views <o:p></o:p></div>
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<span style="font-family: "wingdings";">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Physical view – deals with the physical storage of information on a storage device <o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Have multiple logical views <o:p></o:p></div>
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<span style="font-family: "wingdings";">§<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Logical view – focuses on how users logically access information <o:p></o:p></div>
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INCREASED SCALABILITY AND PERFORMANCE <o:p></o:p></div>
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<b>-</b><span style="font-size: 7pt; font-weight: bold;"> </span>A database must scale to meet increased demand, while maintaining acceptable performance levels <o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Scalability – refers to how well a system can adapt to increased demands <o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Performance – measures how quickly a system performs a certain process or transaction<b><o:p></o:p></b></div>
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REDUCED INFORMATION REDUNDANCY<o:p></o:p></div>
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<b>-</b><span style="font-size: 7pt;"><b> </b> </span>Databases reduce information redundancy<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Redundancy – the duplication of information or storing the same information in multiple places<o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Inconsistency is one of the primary problems with redundant information <o:p></o:p></div>
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INCREASED INFORMATION SECURITY <o:p></o:p></div>
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<b>-</b><span style="font-size: 7pt;"><b> </b> </span>Information is an organization asset and must be protected <o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Databases offer several security features including; <o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Password – provides authentication of the user<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Access level – determines who has access to the different types of information<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Access control – determines types of user access, such as read-only access <o:p></o:p></div>
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DATABASE MANAGEMENT SYSTEMS<o:p></o:p></div>
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<b>-</b><span style="font-size: 7pt;"><b> </b> </span>Database management systems (DBMS) – software through which users and application programs interact with a database<b><o:p></o:p></b></div>
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DATA-DRIVEN WEB SITES<o:p></o:p></div>
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<b>-</b><span style="font-size: 7pt;"><b> </b> </span>Data-driven Web sites – an interactive Web site kept constantly updated and relevant to the needs of its customers through the use of database<b><o:p></o:p></b></div>
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DATA-DRIVEN WEB SITE BUSINESS ADVANTAGES <o:p></o:p></div>
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<b>-</b><span style="font-size: 7pt;"><b> </b> </span>Development <o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Content Management <o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Future Expandability<o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Minimizing Human Error<o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Cutting Production and Update Costs<o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>More Efficient<o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Improved Stability<b><o:p></o:p></b></div>
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DATA-DRIVEN BUSINESS INTELLIGENT<o:p></o:p></div>
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<b>-</b><span style="font-size: 7pt; font-weight: bold;"> </span>BI in a data-driven Web site<b><o:p></o:p></b></div>
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INTEGRATING INFORMATION AMONG MULTIPLE DATABASES<o:p></o:p></div>
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<b>-</b><span style="font-size: 7pt;"><b> </b> </span>Integration – allows separate systems to communicate directly with each other<o:p></o:p></div>
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<span style="font-family: "wingdings";">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Forward integration – takes information entered into a given system and sends it automatically to all <u>downstream</u> systems and processes<o:p></o:p></div>
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<b> </b><span style="font-family: "wingdings"; text-indent: -0.25in;">Ø<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><span style="text-indent: -0.25in;">Backward integration – takes information entered into a given system and sends it automatically to all </span><u style="text-indent: -0.25in;">upstream</u><span style="text-indent: -0.25in;"> systems and processes</span><br />
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<span style="text-indent: -0.25in;">-</span><span style="font-size: 7pt; text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Building a central repository specifically for integrated information</span><br />
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Farihassanalhttp://www.blogger.com/profile/02486694140808963721noreply@blogger.com0tag:blogger.com,1999:blog-5547293839927096724.post-68936048824840387272017-11-20T00:21:00.000-08:002017-11-20T00:21:03.213-08:00<h3 class="post-title entry-title" itemprop="name" style="font-family: 'Mountains of Christmas'; font-size: 24px; line-height: normal; margin: 0.75em 0px 0px; position: relative;">
<u>Chapter 6 – Valuing Organizational Information</u></h3>
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<b>ORGANIZATIONAL INFORMATION</b></div>
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<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">Information is everywhere in an organization</span></li>
<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">Employees must be able to obtain and analyze the many different levels, formats and granularity of organizational information to make decisions</span></li>
<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">Successfully collecting, compiling, sorting and analyzing information can provide tremendous insight into how an organization is performing</span></li>
<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: "symbol"; text-indent: -0.25in;"><span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><span style="text-indent: -0.25in;">Levels, formats and granularity of organizational information</span></li>
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<b><span style="text-indent: -0.25in;">THE VALUE OF TRANSNATIONAL AND ANALYTICALLY INFORMATION</span></b><span style="text-indent: -0.25in;"><br /></span><br />
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<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">Transaction information verses analytically information</span></li>
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<b>THE VALUE OF TIMELY INFORMATION</b><span style="text-indent: -0.25in;"><br /></span><span style="text-indent: -0.25in;">- Timeliness is an aspect of information that depends on the situation</span></div>
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- Real-time information – immediate, up-to-date information<o:p></o:p></div>
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- Real-time system – provides real-time information in response to query requests<o:p></o:p></div>
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<b>THE VALUE OF QUALITY INFORMATION </b><o:p></o:p></div>
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<span style="font-family: "symbol";"><span style="font-family: "times new roman";">- </span><span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Business decisions are only as good as the quality of the information used to make the decisions<o:p></o:p></div>
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- You never want to find yourself using technology to help you make a bad decision faster<o:p></o:p></div>
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- Characteristics of high-quality information include;<o:p></o:p></div>
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<span style="font-family: "symbol";"><span style="font-family: "times new roman";">- </span><span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Low quality information example;<o:p></o:p></div>
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<b>UNDERSTANDING THE COSTS OF POOR INFORMATION<o:p></o:p></b></div>
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- The four primary sources of low quality information include;<br />
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<span style="text-indent: -0.25in;">- Online customers intentionally enter inaccurate information to protect their privacy</span><span style="text-indent: -0.25in;"> </span></blockquote>
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<span style="text-indent: -0.25in;">- Information from different systems have different entry standards and formats</span><span style="text-indent: -0.25in;"> </span></blockquote>
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<span style="text-indent: -0.25in;">- Call center operators enter abbreviated or erroneous information by accident or to save time</span><span style="text-indent: -0.25in;"> </span></blockquote>
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<span style="text-indent: -0.25in;">- Third party and external information contains inconsistencies, inaccuracies and errors</span></blockquote>
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- Potential business effects resulting from low quality information include;<br />
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<span style="text-indent: -0.25in;">- Inability to accurately track customers</span></blockquote>
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<span style="text-indent: -0.25in;">- Difficulty identifying valuable customers</span><span style="text-indent: -0.25in;"> </span></blockquote>
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<span style="text-indent: -0.25in;">- Inability to identify selling opportunities</span><span style="text-indent: -0.25in;"> </span></blockquote>
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<span style="text-indent: -0.25in;">- Marketing to nonexistent customers</span><span style="text-indent: -0.25in;"> </span></blockquote>
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<span style="text-indent: -0.25in;">- Difficulty tracking revenue due to inaccurate invoices</span><span style="text-indent: -0.25in;"> </span></blockquote>
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<span style="text-indent: -0.25in;">- Inability to build strong customer relationships</span></blockquote>
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<b>UNDERSTANDING THE BENEFITS OF GOOD INFORMATION</b><o:p></o:p></div>
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- High quality information can significantly improve the chances of making a good decision<o:p></o:p></div>
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- Good decisions can directly impact an organization’s bottom line <o:p></o:p></div>
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Farihassanalhttp://www.blogger.com/profile/02486694140808963721noreply@blogger.com0tag:blogger.com,1999:blog-5547293839927096724.post-68338344738383895612017-11-20T00:20:00.001-08:002017-11-20T00:20:56.041-08:00<h3 class="post-title entry-title" itemprop="name" style="font-family: 'Mountains of Christmas'; font-size: 24px; line-height: normal; margin: 0.75em 0px 0px; position: relative;">
<u>Chapter 5 – Organizational Structures that Support Strategic Initiatives </u></h3>
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ORGANIZATIONAL STRUCTURES <o:p></o:p></div>
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<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">Organizational employees must work closely together to develop strategic initiatives that create competitive advantages.</span></li>
<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">Ethics and security are two fundamental building blocks that organizations must base their businesses upon.</span></li>
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INFORMATION TECHNOLOGY ROLES AND RESPONSIBILITIES<o:p></o:p></div>
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<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">Information technology is a relatively new functional area, having only been around formally for around 40 years.</span></li>
<li style="margin: 0px 0px 0.25em; padding: 0px;">Recent IT – related strategic positions:</li>
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- Chief Information Officer (CIO)</div>
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- Chief Technology Officer (CTO)</div>
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- Chief Security Officer (CSO)</div>
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- Chief Privacy Officer (CPO)</div>
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<span style="font-family: "wingdings";"><span style="font-family: "times new roman";"> - </span><span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Chief Knowledge Officer (CKO)</div>
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<span style="font-family: "symbol";"><span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Chief Information Officer (CIO) – oversees all uses of IT and ensures the strategic alignment of IT with business goals and objectives.</div>
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- Broad CIO functions include;</div>
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<li style="margin: 0px 0px 0.25em; padding: 0px; text-indent: 0px;"><span style="font-family: "wingdings";"><span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Manager – ensuring the delivery of all IT projects, on time and within budget.</li>
<li style="margin: 0px 0px 0.25em; padding: 0px; text-indent: 0px;">Leader – ensuring the strategic vision of IT is in line with the strategic vision of the organization.</li>
<li style="margin: 0px 0px 0.25em; padding: 0px; text-indent: 0px;">Communicator – building and maintaining strong executive relationships.</li>
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<span style="font-family: "symbol";"><span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Average CIO compensation by industry<o:p></o:p></div>
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Industry <o:p></o:p></div>
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Average CIO Compensation <o:p></o:p></div>
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Wholesale/Retail/Distribution<o:p></o:p></div>
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$ 243,304<o:p></o:p></div>
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Finance <o:p></o:p></div>
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$ 210,547<o:p></o:p></div>
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Insurance <o:p></o:p></div>
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$ 197,697<o:p></o:p></div>
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Manufacturing <o:p></o:p></div>
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$ 190,250<o:p></o:p></div>
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Medical/Dental/Health Care <o:p></o:p></div>
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$ 171,032<o:p></o:p></div>
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Government <o:p></o:p></div>
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$ 118,359<o:p></o:p></div>
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Education <o:p></o:p></div>
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$ 93,750</div>
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<span style="font-family: "symbol";">·<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>What concerns CIOs the most<o:p></o:p></div>
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Percentages % <o:p></o:p></div>
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CIOs Concerns <o:p></o:p></div>
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94<o:p></o:p></div>
</td><td style="border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 2.25pt; border-style: none solid solid none; padding: 0in 5.4pt; width: 2.25in;" valign="top" width="216"><div class="MsoNormal" style="margin-bottom: 0pt;">
Enhancing customer satisfaction<o:p></o:p></div>
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<tr><td style="border-bottom-color: windowtext; border-bottom-width: 1pt; border-left-color: windowtext; border-left-width: 2.25pt; border-right-color: windowtext; border-right-width: 2.25pt; border-style: none solid solid; padding: 0in 5.4pt; width: 95.4pt;" valign="top" width="127"><div align="center" class="MsoNormal" style="margin-bottom: 0pt; text-align: center;">
92<o:p></o:p></div>
</td><td style="border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 2.25pt; border-style: none solid solid none; padding: 0in 5.4pt; width: 2.25in;" valign="top" width="216"><div class="MsoNormal" style="margin-bottom: 0pt;">
Security <o:p></o:p></div>
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89<o:p></o:p></div>
</td><td style="border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 2.25pt; border-style: none solid solid none; padding: 0in 5.4pt; width: 2.25in;" valign="top" width="216"><div class="MsoNormal" style="margin-bottom: 0pt;">
Technology evaluation <o:p></o:p></div>
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87<o:p></o:p></div>
</td><td style="border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 2.25pt; border-style: none solid solid none; padding: 0in 5.4pt; width: 2.25in;" valign="top" width="216"><div class="MsoNormal" style="margin-bottom: 0pt;">
Budgeting <o:p></o:p></div>
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<tr><td style="border-bottom-color: windowtext; border-bottom-width: 1pt; border-left-color: windowtext; border-left-width: 2.25pt; border-right-color: windowtext; border-right-width: 2.25pt; border-style: none solid solid; padding: 0in 5.4pt; width: 95.4pt;" valign="top" width="127"><div align="center" class="MsoNormal" style="margin-bottom: 0pt; text-align: center;">
83<o:p></o:p></div>
</td><td style="border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 2.25pt; border-style: none solid solid none; padding: 0in 5.4pt; width: 2.25in;" valign="top" width="216"><div class="MsoNormal" style="margin-bottom: 0pt;">
Staffing <o:p></o:p></div>
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<tr><td style="border-bottom-color: windowtext; border-bottom-width: 1pt; border-left-color: windowtext; border-left-width: 2.25pt; border-right-color: windowtext; border-right-width: 2.25pt; border-style: none solid solid; padding: 0in 5.4pt; width: 95.4pt;" valign="top" width="127"><div align="center" class="MsoNormal" style="margin-bottom: 0pt; text-align: center;">
66<o:p></o:p></div>
</td><td style="border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 2.25pt; border-style: none solid solid none; padding: 0in 5.4pt; width: 2.25in;" valign="top" width="216"><div class="MsoNormal" style="margin-bottom: 0pt;">
ROI analysis <o:p></o:p></div>
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<tr><td style="border-bottom-color: windowtext; border-bottom-width: 1pt; border-left-color: windowtext; border-left-width: 2.25pt; border-right-color: windowtext; border-right-width: 2.25pt; border-style: none solid solid; padding: 0in 5.4pt; width: 95.4pt;" valign="top" width="127"><div align="center" class="MsoNormal" style="margin-bottom: 0pt; text-align: center;">
64<o:p></o:p></div>
</td><td style="border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 2.25pt; border-style: none solid solid none; padding: 0in 5.4pt; width: 2.25in;" valign="top" width="216"><div class="MsoNormal" style="margin-bottom: 0pt;">
Building new applications<o:p></o:p></div>
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<tr><td style="border: 2.25pt solid currentColor; padding: 0in 5.4pt; width: 95.4pt;" valign="top" width="127"><div align="center" class="MsoNormal" style="margin-bottom: 0pt; text-align: center;">
45<o:p></o:p></div>
</td><td style="border-bottom-color: windowtext; border-bottom-width: 2.25pt; border-right-color: windowtext; border-right-width: 2.25pt; border-style: none solid solid none; padding: 0in 5.4pt; width: 2.25in;" valign="top" width="216"><div class="MsoNormal" style="margin-bottom: 0pt;">
Outsourcing hosting <o:p></o:p></div>
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<span style="font-family: "courier new";">o<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Chief Technology Officer (CTO) – responsible for ensuring the throughput , speed, accuracy, availability and reliability of IT<o:p></o:p></div>
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<span style="font-family: "courier new";">o<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Chief Security Officer (CSO) – responsible for ensuring the security of IT systems <o:p></o:p></div>
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<span style="font-family: "courier new";">o<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Chief Privacy Officer (CPO) – responsible for ensuring the ethical and legal use of information<o:p></o:p></div>
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<span style="font-family: "courier new";">o<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Chief Knowledge Officer (CKO) – responsible for collecting, maintaining and distributing the organization’s knowledge</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguqUH-RoNiGszn6n8uKSUPm9DIzLEfTg_7US2ol8hfmB_bpQDgyG6Wn8qm2DS5uoMH7ovmKEn6iK_cxYhyphenhyphenHr_Ll_2BmcXs0rvuEmMnOyvmJjQkFm-exv6EnjJvIDAB5IcvqtIkjBHjo_Hb/s1600/capture-20130713-204919.png" imageanchor="1" style="color: #888888; margin-left: 1em; margin-right: 1em; text-decoration: none;"><img border="0" height="265" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguqUH-RoNiGszn6n8uKSUPm9DIzLEfTg_7US2ol8hfmB_bpQDgyG6Wn8qm2DS5uoMH7ovmKEn6iK_cxYhyphenhyphenHr_Ll_2BmcXs0rvuEmMnOyvmJjQkFm-exv6EnjJvIDAB5IcvqtIkjBHjo_Hb/s320/capture-20130713-204919.png" style="-webkit-box-shadow: rgba(0 , 0 , 0 , 0.0980392) 1px 1px 5px; background-color: white; border: 1px solid rgb(238, 238, 238); box-shadow: 1px 1px 5px rgba(0,0,0,0.098039); padding: 5px; position: relative;" width="320" /></a></div>
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THE GAP BETWEEN BUSINESS PERSONNEL AND IT PRSONNEL <o:p></o:p></div>
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<o:p></o:p><br /></div>
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<o:p></o:p><br /></div>
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<ul style="color: #222222; font-family: Kranky; line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;">
<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: "symbol"; text-indent: -0.25in;"><span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><span style="text-indent: -0.25in;">Business personnel possess expertise in functional areas such as marketing, accounting and sales</span></li>
<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: "symbol"; text-indent: -0.25in;"><span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><span style="text-indent: -0.25in;">IT personnel have the technological expertise</span></li>
<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">This typically causes a communications gap between the business personnel and IT personnel</span></li>
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<o:p style="color: #222222; font-family: Kranky;"></o:p><br />
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IMPROVING COMMUNICATIONS <o:p></o:p></div>
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<o:p></o:p><br /></div>
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<o:p></o:p><br /></div>
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<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">Business personnel must seek to increase their understanding of IT</span></li>
<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">IT personnel must seek to increase their understanding of the business</span></li>
<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: "symbol"; text-indent: -0.25in;"><span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><span style="text-indent: -0.25in;">It is the responsibility of the CIO to ensure effective communication between business personnel and IT personnel</span></li>
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ORGANIZATIONAL FUNDAMENTALS – ETHICS AND SECURITY<o:p></o:p></div>
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<ul style="color: #222222; font-family: Kranky; line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;">
<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: "symbol"; text-indent: -0.25in;"><span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><span style="text-indent: -0.25in;">Ethics and security are two fundamental building blocks that organizations must base their businesses on to be successful</span></li>
<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">In recent years, such event as the 9/11 have shed new light on the meaning of ethics and security</span></li>
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ETHICS<span style="font-family: "symbol"; text-indent: -0.25in;"><span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><br />
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<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">Ethics – the principles and standards that guide our behavior toward other people</span></li>
<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">Privacy is a major ethical issues;</span></li>
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<ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;">
<li style="margin: 0px 0px 0.25em; padding: 0px;">Privacy – the right to be left alone when you want to be to have control ever your own personnel possessions and not to be observed without your consent</li>
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<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">Issues affected by technology advances</span></li>
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Intelligent property<o:p></o:p></div>
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Intangible creative work that is embodied in physical form<o:p></o:p></div>
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Copyright <o:p></o:p></div>
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The legal protection afforded an expression of an idea, such as a song, video game and some types of proprietary documents<o:p></o:p></div>
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Fair use doctrine <o:p></o:p></div>
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In certain situations, it is legal to use copyrighted material <o:p></o:p></div>
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Pirated software <o:p></o:p></div>
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The unauthorized use, duplication, distribution or sale of copyrighted software<o:p></o:p></div>
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Counterfeit software<o:p></o:p></div>
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Software that is manufactured to lock like the real thing and sold as such</div>
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</div>
<ul style="color: #222222; font-family: Kranky; line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;">
<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="font-family: "symbol"; text-indent: -0.25in;"><span style="font-family: "times new roman"; font-size: 7pt;"> </span></span><span style="text-indent: -0.25in;">One of the main ingredients in trust is privacy</span></li>
<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">Primary reasons privacy issues lost trust for e-business</span></li>
</ul>
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1.<o:p></o:p></div>
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Loss of personnel privacy is a top concern for Americans in the 21<sup>st</sup> century <o:p></o:p></div>
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2.<o:p></o:p></div>
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Among Internet users, 37 percent would be “a lot” more inclined to purchase a product on a websites that had a privacy policy <o:p></o:p></div>
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3.<o:p></o:p></div>
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Privacy/security is the number one factors that would convert Internet researchers into Internet buyers<o:p></o:p></div>
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SECURITY – HOW MUCH WILL DOWNTIME COST YOUR BUSINESS?? <o:p></o:p></div>
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Sources of Unplanned Downtime<o:p></o:p></div>
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Bomb threat<o:p></o:p></div>
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Hacker <o:p></o:p></div>
</td><td style="border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 1pt; border-style: none solid solid none; padding: 0in 5.4pt; width: 159.6pt;" valign="top" width="213"><div class="MsoNormal" style="margin-bottom: 0pt;">
Snowstorm <o:p></o:p></div>
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Burst pipe<o:p></o:p></div>
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Hail <o:p></o:p></div>
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Sprinkler malfunction <o:p></o:p></div>
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Chemical spill <o:p></o:p></div>
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Hurricane <o:p></o:p></div>
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Static electricity<o:p></o:p></div>
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Construction <o:p></o:p></div>
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Ice storm <o:p></o:p></div>
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Strike <o:p></o:p></div>
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Corrupted data <o:p></o:p></div>
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Insects <o:p></o:p></div>
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Terrorism <o:p></o:p></div>
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Earthquake <o:p></o:p></div>
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Lightning <o:p></o:p></div>
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Theft <o:p></o:p></div>
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Electrical short<o:p></o:p></div>
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Network failure <o:p></o:p></div>
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Tornado <o:p></o:p></div>
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Epidemic <o:p></o:p></div>
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Plane crash <o:p></o:p></div>
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Train derailment <o:p></o:p></div>
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Equipment failure <o:p></o:p></div>
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Frozen pipe <o:p></o:p></div>
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Smoke damage <o:p></o:p></div>
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Evacuation <o:p></o:p></div>
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Power outage <o:p></o:p></div>
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Vandalism <o:p></o:p></div>
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Explosion <o:p></o:p></div>
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Power surge <o:p></o:p></div>
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Vehicle crash <o:p></o:p></div>
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Fire <o:p></o:p></div>
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Rodents <o:p></o:p></div>
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Virus <o:p></o:p></div>
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Flood <o:p></o:p></div>
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Sabotage<o:p></o:p></div>
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Water damage (various)<o:p></o:p></div>
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Fraud <o:p></o:p></div>
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Shredded data<o:p></o:p></div>
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Wind <o:p></o:p></div>
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<span style="font-family: "symbol";">·<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>How much will downtime cost your business??</div>
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PROTECTING INTELLECTUAL ASSETS <o:p></o:p></div>
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<span style="font-family: "symbol";">·<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Organizational information is intellectual capital – it must be protected <o:p></o:p></div>
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<span style="font-family: "symbol";">·<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Information security – the protection of information from accidental or intentional misuse by persons inside or outside an organization <o:p></o:p></div>
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<span style="font-family: "symbol";">·<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>E-business automatically crates tremendous information security risks for organization <o:p></o:p></div>
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Percentage of IT Budget Spent on Information Security<o:p></o:p></div>
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Average Reported Computer Security </div>
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Expenditure/Investment per Employee </div>
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Farihassanalhttp://www.blogger.com/profile/02486694140808963721noreply@blogger.com0tag:blogger.com,1999:blog-5547293839927096724.post-38012068050120155022017-11-20T00:20:00.000-08:002017-11-20T00:20:40.655-08:00<h3 class="post-title entry-title" itemprop="name" style="font-family: 'Mountains of Christmas'; font-size: 24px; line-height: normal; margin: 0.75em 0px 0px; position: relative; text-align: center;">
<u>Chapter 4 – Measuring the Success of Strategic Initiatives </u></h3>
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MEASURING INFORMATION TECHNOLOGY’S SUCCESS <o:p></o:p></div>
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<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">-</span><span style="font-size: 7pt; text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Key performance indicator – measures that are tied to business drivers</span></li>
<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">-</span><span style="font-size: 7pt; text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Metrics are detailed measures that feed KPIs</span></li>
<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">-</span><span style="font-size: 7pt; text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Performance metrics fall into the nebulous area of business intelligence that is neither technology, nor business centered, but requires input from both IT and business professionals</span></li>
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EFFICIENCY AND EFFECTIVENESS <o:p></o:p></div>
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<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">-</span><span style="font-size: 7pt; text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Efficiency IT metric – measures the performance of the IT system itself including throughput, speed, and availability</span></li>
<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">-</span><span style="font-size: 7pt; text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Effectiveness IT metric – measures the impact IT has on business processes and activities including customer satisfaction, conversion rates, and sell-through increases</span></li>
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BENCHMARKING – BASELINE METRICS<o:p></o:p></div>
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<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">-</span><span style="font-size: 7pt; text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Regardless of what is measured, how it is measured, and whether it is for the sake of efficiency or effectiveness, there must be </span><b style="text-indent: -0.25in;"><i>benchmarks </i>– </b><span style="text-indent: -0.25in;">baseline values the system seeks to attain</span></li>
<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">-</span><span style="font-size: 7pt; text-indent: -0.25in;"> </span><b style="text-indent: -0.25in;"><i>Benchmarking – </i></b><span style="text-indent: -0.25in;">a process of continuously measuring system results, comparing those results to optimal system performance (benchmark values), and identifying steps and producers to improve system performance</span></li>
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-<span style="font-size: 7pt;"> </span>Comparing efficiency IT and effectiveness IT metrics for the government initiatives <o:p></o:p></div>
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THE INTERRELATIONSHIPS OF EFFICIENCY AND EFFECTIVESS IT METRICS<o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Common types of efficiency IT metrics<o:p></o:p></div>
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Efficiency IT Metrics<b style="font-style: italic;"><o:p></o:p></b></div>
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Throughput <b style="font-style: italic;"><o:p></o:p></b></div>
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The amount of information that can travel through a system at any point.<b style="font-style: italic;"><o:p></o:p></b></div>
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Transaction speed<i><o:p></o:p></i></div>
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The amount of time a system takes to perform a transaction. <b style="font-style: italic;"><o:p></o:p></b></div>
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System availability<b style="font-style: italic;"><o:p></o:p></b></div>
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The number of hours at system is available for users.<b style="font-style: italic;"><o:p></o:p></b></div>
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Information accuracy<b style="font-style: italic;"><o:p></o:p></b></div>
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The extent to which a system generates the correct results when executing the same transaction numerous times.<b style="font-style: italic;"><o:p></o:p></b></div>
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Web traffic<b style="font-style: italic;"><o:p></o:p></b></div>
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Includes a host of benchmarks such as the number of page views, the number of unique visitors, and the average time spent viewing a web page.<b style="font-style: italic;"><o:p></o:p></b></div>
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Response time <b style="font-style: italic;"><o:p></o:p></b></div>
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The time it takes to respond to user interactions such as a mouse click. <o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Effectiveness IT metrics focus on an organization’s goals, strategies, and objectives and include… <o:p></o:p></div>
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Effectiveness IT Metrics<b><o:p></o:p></b></div>
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Usability <i><o:p></o:p></i></div>
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The ease with which people perform transactions and/or find information. A popular usability metric on the Internet is degrees of freedom, which measures the number of clicks required to find desired information.<o:p></o:p></div>
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Customers satisfaction <b style="font-style: italic;"><o:p></o:p></b></div>
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Measured by such benchmarks as satisfaction surveys, percentage of existing customers retained, and increases in revenue dollars per customer.<o:p></o:p></div>
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Conversion rates <b style="font-style: italic;"><o:p></o:p></b></div>
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The number of customers an organization “touches” for the first time and persuades to purchase its products or services. This is a popular metric for evaluating the effectiveness of banner, pop-up, and pop-under ads on the Internet. <o:p></o:p></div>
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Financial <b style="font-style: italic;"><o:p></o:p></b></div>
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Such as return on investment (the earning power of an organization’s assets), cost-benefit analysis (the comparison of projected revenues and costs including development, maintenance, fixed and variable), and break-even analysis (the point at which content revenues equal ongoing costs).<o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Security is an issue for any organization offering products or services over the Internet.<o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>It is inefficient for an organization to implement Internet security, since it slows down processing.<o:p></o:p></div>
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<span style="font-family: "symbol";">·<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>However, to be effective it must implement Internet security.<o:p></o:p></div>
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<span style="font-family: "symbol";">·<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Secure Internet connections must offer encryption and Secure Sockets Layers (SSL denoted by the lock symbol in the lower right corner of browser)<o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Interrelationships between efficiency and effectiveness. <o:p></o:p></div>
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METRICS FOR STRATEGIC INITIATIVES <o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>Metrics for measuring and managing strategic initiatives include;<o:p></o:p></div>
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<span style="font-family: "symbol";">·<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Website metrics.<o:p></o:p></div>
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<span style="font-family: "symbol";">·<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Supply chain management (SCM) metrics<o:p></o:p></div>
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<span style="font-family: "symbol";">·<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Customer relationship management (CRM) metrics<o:p></o:p></div>
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<span style="font-family: "symbol";">·<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Business process reengineering (BPR) metrics<o:p></o:p></div>
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<span style="font-family: "symbol";">·<span style="font-family: "times new roman"; font-size: 7pt;"> </span></span>Enterprise resource planning (ERP) metrics <o:p></o:p></div>
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WEBSITE METRICS<o:p></o:p></div>
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<o:p>SUPPLY CHAIN MANAGEMENT METRICS </o:p><br />
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CUSTOMER RELATIONSHIP MANAGEMENT METRICS<o:p></o:p></div>
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BPR and ERP Metrics<o:p></o:p></div>
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-<span style="font-size: 7pt;"> </span>The balanced scorecard enables organizations to measure and manage strategic initiatives. <o:p></o:p></div>
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Farihassanalhttp://www.blogger.com/profile/02486694140808963721noreply@blogger.com0tag:blogger.com,1999:blog-5547293839927096724.post-53674548807424175902017-10-05T05:32:00.005-07:002017-10-05T05:33:46.492-07:00<h3 class="post-title entry-title" itemprop="name" style="color: #222222; font-family: 'Mountains of Christmas'; font-size: 24px; line-height: normal; margin: 0.75em 0px 0px; position: relative;">
<u>Chapter 3 – Strategic Initiatives for implementing Competitive Advantages</u></h3>
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Strategies initiatives<br /></div>
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<span style="text-indent: -0.25in;">- Organizations can undertake high-profile strategic initiatives including;</span><br /><ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;">
<li style="margin: 0px 0px 0.25em; padding: 0px; text-indent: 0px;">Supply chain management (SCM)</li>
<li style="margin: 0px 0px 0.25em; padding: 0px; text-indent: 0px;">Customers relationship management (CRM)</li>
<li style="margin: 0px 0px 0.25em; padding: 0px; text-indent: 0px;">Business process re engineering (BPR)</li>
<li style="margin: 0px 0px 0.25em; padding: 0px; text-indent: 0px;"><span style="font-family: Wingdings;"><span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span>Enterprise resources planning (ERP)</li>
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Supply Chain Management (SCM)<o:p></o:p></div>
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<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">-</span><span style="font-size: 7pt; text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">It involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability</span></li>
<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">-</span><span style="font-size: 7pt; text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Four basic components of supply chain management include;</span></li>
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<span style="font-family: 'Courier New';">o<span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span>Supply chain strategy – strategy for managing all resources to meet customers demand<o:p></o:p></div>
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<span style="font-family: 'Courier New';">o<span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span>Supply chain partner – partners throughout the supply chain that deliver finished products, raw materials and services<o:p></o:p></div>
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<span style="font-family: 'Courier New';">o<span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span>Supply chain operation – schedule for production activities<o:p></o:p></div>
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<span style="font-family: 'Courier New';">o<span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span>Supply chain logistics – product delivery process <o:p></o:p></div>
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<span style="font-family: 'Courier New';">o<span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span>Decrease the power of its buyers<o:p></o:p></div>
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<span style="font-family: 'Courier New';">o<span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span>Increase its own supplier power<o:p></o:p></div>
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<span style="font-family: 'Courier New';">o<span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span>Increase switching costs to reduce the threat of substitute products or services<o:p></o:p></div>
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<span style="font-family: 'Courier New';">o<span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span>Create entry barriers thereby reducing the threat of new entrants<o:p></o:p></div>
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<span style="font-family: 'Courier New';">o <span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span>Increase efficiency while seeking a competitive advantages through cost leadership<o:p></o:p></div>
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Customers Relationship Management (CRM)<o:p></o:p></div>
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<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">-</span><span style="font-size: 7pt; text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Its involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability</span></li>
<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">-</span><span style="font-size: 7pt; text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Many organizations, such as Charles Schwab and Kaiser Permanente, have obtained great success through the implementation of CRM systems</span></li>
<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">-</span><span style="font-size: 7pt; text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">CRM is not just technology, but a strategy, process and business goal that an organization must embrace on an enterprise wide level</span></li>
<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">-</span><span style="font-size: 7pt; text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">CRM can enable an organization to;</span></li>
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<span style="font-family: 'Courier New';">o<span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span>Identify types of customers<o:p></o:p></div>
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<span style="font-family: 'Courier New';">o<span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span>Design individual customer marketing campaign<o:p></o:p></div>
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<span style="font-family: 'Courier New';">o<span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span>Treat each customer as a individual<o:p></o:p></div>
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<span style="font-family: 'Courier New';">o<span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span>Understand customer buying behaviors<o:p></o:p></div>
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Business Process Re engineering (BPR)<o:p></o:p></div>
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<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">-</span><span style="font-size: 7pt; text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">The analysis and redesign of workflow within and between enterprises</span></li>
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<span style="font-family: 'Courier New';">o<span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span>The purpose of BPR is to make all business processes best in class<o:p></o:p></div>
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<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">-</span><span style="font-size: 7pt; text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Finding Opportunity Using BPR</span></li>
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<span style="font-family: 'Courier New';">o<span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span>A company can improve the way it travels the road by moving from<span style="font-weight: bold;"> </span>foot to horse and then horse to car<o:p></o:p></div>
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<span style="font-family: 'Courier New';">o<span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span>BPR looks at taking a different path, such as an airplane which ignore the road completely<o:p></o:p></div>
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<span style="font-family: 'Courier New';">o<span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span>Types <o:p></o:p></div>
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Enterprises Resource Planning (ERP)<o:p></o:p></div>
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<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">-</span><span style="font-size: 7pt; text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Keyword in ERP is “enterprise”.</span></li>
<li style="margin: 0px 0px 0.25em; padding: 0px;"><span style="text-indent: -0.25in;">-</span><span style="font-size: 7pt; text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">ERP systems collect data from across an organization and correlates the data generating an enterprise wide view</span></li>
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Farihassanalhttp://www.blogger.com/profile/02486694140808963721noreply@blogger.com0tag:blogger.com,1999:blog-5547293839927096724.post-52049787896923770072017-09-30T09:47:00.002-07:002021-03-05T10:37:24.142-08:00<h3
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<u>Chapter 2 – Identifying Competitive Advantage</u>
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<div class="separator" style="clear: both; text-align: center;">
<br />
</div>
<div class="MsoNormal">
<b><span style="font-size: medium;">Introduction </span></b
><o:p></o:p>
</div>
<div class="MsoNormal">
<b
><span style="font-size: medium;"><br /></span
></b>
</div>
<div class="MsoNormal">What is competitive advantage?</div>
<div class="MsoListParagraphCxSpFirst" style="text-indent: -0.25in;"></div>
<ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;">
<li style="margin: 0px 0px 0.25em; padding: 0px;">
<span style="text-indent: -0.25in;">-</span
><span style="font-size: 7pt; text-indent: -0.25in;"
> </span
><span style="text-indent: -0.25in;"
>A product or services that an organization’s customers place a greater
value on than similar offerings from a competitor</span
>
</li>
<li style="margin: 0px 0px 0.25em; padding: 0px;">
<span style="text-indent: -0.25in;">-</span
><span style="font-size: 7pt; text-indent: -0.25in;"
> </span
><span style="text-indent: -0.25in;"
>Unfortunately, CA is temporary because competitors keep duplicate the
strategy.</span
>
</li>
<li style="margin: 0px 0px 0.25em; padding: 0px;">
<span style="text-indent: -0.25in;">-</span
><span style="font-size: 7pt; text-indent: -0.25in;"
> </span
><span style="text-indent: -0.25in;"
>Then, the company should start the new competitive advantage</span
>
</li>
</ul>
<o:p></o:p><br />
<div class="MsoListParagraphCxSpMiddle" style="text-indent: -0.25in;">
<o:p></o:p>
</div>
<div class="MsoListParagraphCxSpLast" style="text-indent: -0.25in;">
<o:p></o:p>
</div>
<div class="separator" style="clear: both; text-align: center;"></div>
<div class="MsoNormal">
Michael Porter’s Five Forces Model is useful tool to aid organization in
challenging decision whether to join a new industry or industry segment<o:p
></o:p>
</div>
<div class="separator" style="clear: both; text-align: center;"></div>
<div class="separator" style="clear: both; text-align: center;">
<br />
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><img
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</div>
<div class="separator" style="clear: both; text-align: center;">
<br />
</div>
<div class="MsoListParagraphCxSpFirst" style="text-indent: -0.25in;">
1.<span style="font-size: 7pt;"
> </span
>Buyer Power <o:p></o:p>
</div>
<div
class="MsoListParagraphCxSpMiddle"
style="margin-left: 1in; text-indent: -0.25in;"
>
<span style="font-family: Symbol;"
>·<span style="font-family: 'Times New Roman'; font-size: 7pt;"
> </span
></span
>High – when buyers have many choices of whom to buy<o:p></o:p>
</div>
<div
class="MsoListParagraphCxSpMiddle"
style="margin-left: 1in; text-indent: -0.25in;"
>
<span style="font-family: Symbol;"
>·<span style="font-family: 'Times New Roman'; font-size: 7pt;"
> </span
></span
>Low – when their choices are few <o:p></o:p>
</div>
<div
class="MsoListParagraphCxSpMiddle"
style="margin-left: 1in; text-indent: -0.25in;"
>
<span style="font-family: Symbol;"
>·<span style="font-family: 'Times New Roman'; font-size: 7pt;"
> </span
></span
>To reduce buyer power (and create competitive advantage), an organization
must make it more attractive to buy from the company not from the
competitors<o:p></o:p>
</div>
<div
class="MsoListParagraphCxSpMiddle"
style="margin-left: 1in; text-indent: -0.25in;"
>
<span style="font-family: Symbol;"
>·<span style="font-family: 'Times New Roman'; font-size: 7pt;"
> </span
></span
>Best practices of IT based<o:p></o:p>
</div>
<div
class="MsoListParagraphCxSpLast"
style="margin-left: 1.5in; text-indent: -0.25in;"
>
- Loyalty program in travel industry, for example rewards on
free airline tickets or hotel stays<o:p></o:p>
</div>
<div class="MsoNormal">
<br />
</div>
<div class="MsoNormal">The Competitive Environment <o:p></o:p></div>
<div class="MsoNormal">
<u><br /></u>
</div>
<div class="MsoNormal">
<u>Bargaining Power of Customers/Buyer Power<o:p></o:p></u>
</div>
<div class="MsoListParagraphCxSpFirst" style="text-indent: -0.25in;"></div>
<ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;">
<li style="margin: 0px 0px 0.25em; padding: 0px;">
<span style="text-indent: -0.25in;"
>Customers can grow large and powerful as a result of their market
share</span
>
</li>
<li style="margin: 0px 0px 0.25em; padding: 0px;">
<span style="text-indent: -0.25in;"
>Many choices of whom to buy from</span
>
</li>
<li style="margin: 0px 0px 0.25em; padding: 0px;">
<span style="font-family: Symbol; text-indent: -0.25in;"
><span style="font-family: 'Times New Roman'; font-size: 7pt;"
> </span
></span
><span style="text-indent: -0.25in;"
>Low when comes to limited items</span
>
</li>
<li style="margin: 0px 0px 0.25em; padding: 0px;">
<span style="text-indent: -0.25in;"
>Example, used loyalty programs (Jusco card, Tesco card, being a members
to get the discount)</span
>
</li>
</ul>
<br />
<div class="MsoListParagraphCxSpFirst" style="text-indent: -0.25in;">
2.<span style="font-size: 7pt;"
> </span
>Supplier Power <o:p></o:p>
</div>
<div
class="MsoListParagraphCxSpMiddle"
style="margin-left: 1in; text-indent: -0.25in;"
>
<span style="font-family: Symbol;"
>·<span style="font-family: 'Times New Roman'; font-size: 7pt;"
> </span
></span
>High – when buyers have few choices of whom to buy from<o:p></o:p>
</div>
<div
class="MsoListParagraphCxSpMiddle"
style="margin-left: 1in; text-indent: -0.25in;"
>
<span style="font-family: Symbol;"
>·<span style="font-family: 'Times New Roman'; font-size: 7pt;"
> </span
></span
>Low – when their choices are many <o:p></o:p>
</div>
<div
class="MsoListParagraphCxSpMiddle"
style="margin-left: 1.5in; text-indent: -0.25in;"
>
- Best practices of IT to create competitive advantage<o:p
></o:p>
</div>
<div
class="MsoListParagraphCxSpLast"
style="margin-left: 1.5in; text-indent: -0.25in;"
>
- Example, <span style="font-family: Georgia, serif;"
>B2B</span
> marketplace – private exchange allow a single buyer to posts it needs
and then open the bidding to any supplier who would care to bid. <u
>Reverse auction</u
> is an auction format in which increasingly lower bids<o:p></o:p>
</div>
<div class="separator" style="clear: both; text-align: center;"></div>
<div class="MsoNormal">
<br />
</div>
<div class="MsoNormal">An organization within the Supply Chain</div>
<div class="MsoListParagraph" style="text-indent: -0.25in;">
<o:p></o:p>
</div>
<div class="MsoNormal">
<o:p></o:p>
</div>
<ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;">
<li style="margin: 0px 0px 0.25em; padding: 0px;">
<span style="text-indent: -0.25in;">-</span
><span style="font-size: 7pt; text-indent: -0.25in;"
> </span
><span style="text-indent: -0.25in;"
>Supplier power is the converse of buyer power</span
>
</li>
</ul>
<div class="separator" style="clear: both; text-align: center;">
<a
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><img
border="0"
height="101"
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</div>
<div class="separator" style="clear: both; text-align: center;">
<br />
</div>
<div class="MsoListParagraphCxSpFirst" style="text-indent: -0.25in;">
1.<span style="font-size: 7pt;"
> </span
>Threat of Substitute products and services<o:p></o:p>
</div>
<div
class="MsoListParagraphCxSpMiddle"
style="margin-left: 1in; text-indent: -0.25in;"
>
<span style="font-family: Symbol;"
>·<span style="font-family: 'Times New Roman'; font-size: 7pt;"
> </span
></span
>High – when there are many alternatives to a product or service<o:p></o:p>
</div>
<div
class="MsoListParagraphCxSpMiddle"
style="margin-left: 1in; text-indent: -0.25in;"
>
<span style="font-family: Symbol;"
>·<span style="font-family: 'Times New Roman'; font-size: 7pt;"
> </span
></span
>Low – when there are few alternatives from which to choose <o:p></o:p>
</div>
<div
class="MsoListParagraphCxSpMiddle"
style="margin-left: 1in; text-indent: -0.25in;"
>
<span style="font-family: Symbol;"
>·<span style="font-family: 'Times New Roman'; font-size: 7pt;"
> </span
></span
>Ideally, an organization would like to be on a market in which there are
few substitutes of their product or services<o:p></o:p>
</div>
<div
class="MsoListParagraphCxSpMiddle"
style="margin-left: 1.5in; text-indent: -0.25in;"
>
- Best practices of IT<o:p></o:p>
</div>
<div
class="MsoListParagraphCxSpLast"
style="margin-left: 1.5in; text-indent: -0.25in;"
>
- Example, Electronic product – same functions different brands<o:p></o:p>
</div>
<div class="MsoNormal">
<br />
</div>
<div class="MsoNormal">The Competitive Environment <o:p></o:p></div>
<div class="MsoNormal">
<u><br /></u>
</div>
<div class="MsoNormal">
<u>Threat of Substitutes<o:p></o:p></u>
</div>
<div class="MsoListParagraphCxSpFirst" style="text-indent: -0.25in;"></div>
<ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;">
<li style="margin: 0px 0px 0.25em; padding: 0px;">
<span style="text-indent: -0.25in;">-</span
><span style="font-size: 7pt; text-indent: -0.25in;"
> </span
><span style="text-indent: -0.25in;">To the extent that </span
><u style="text-indent: -0.25in;">customers can use different products</u
><span style="text-indent: -0.25in;"
> to fulfill the same need, the threat of substitutes exists</span
>
</li>
<li style="margin: 0px 0px 0.25em; padding: 0px;">
<span style="text-indent: -0.25in;">-</span
><span style="font-size: 7pt; text-indent: -0.25in;"
> </span
><span style="text-indent: -0.25in;"
>Example, electrical product – same function different brands</span
>
</li>
<li style="margin: 0px 0px 0.25em; padding: 0px;">
<span style="text-indent: -0.25in;">-</span
><span style="font-size: 7pt; text-indent: -0.25in;"
> </span
><u style="text-indent: -0.25in;">Switching cost</u
><span style="text-indent: -0.25in;"
> – costs can make customer reluctant to switch to another product
or service</span
>
</li>
</ul>
<br />
<div class="MsoListParagraphCxSpFirst" style="text-indent: -0.25in;">
2.<span style="font-size: 7pt;"
> </span
>Threat of new entrants<o:p></o:p>
</div>
<div
class="MsoListParagraphCxSpMiddle"
style="margin-left: 1in; text-indent: -0.25in;"
>
<span style="font-family: Symbol;"
>·<span style="font-family: 'Times New Roman'; font-size: 7pt;"
> </span
></span
>High – when it is easy for new competitors to enter a market<o:p></o:p>
</div>
<div
class="MsoListParagraphCxSpMiddle"
style="margin-left: 1in; text-indent: -0.25in;"
>
<span style="font-family: Symbol;"
>·<span style="font-family: 'Times New Roman'; font-size: 7pt;"
> </span
></span
>Low – when there are significant entry barriers to entering a market<o:p
></o:p>
</div>
<div
class="MsoListParagraphCxSpMiddle"
style="margin-left: 1in; text-indent: -0.25in;"
>
<span style="font-family: Symbol;"
>·<span style="font-family: 'Times New Roman'; font-size: 7pt;"
> </span
></span
>Entry barriers is a product or service feature that customers have come to
except from organizations and must be offered by entering organization to
complete and survive<o:p></o:p>
</div>
<div
class="MsoListParagraphCxSpMiddle"
style="margin-left: 1in; text-indent: -0.25in;"
>
<span style="font-family: Symbol;"
>·<span style="font-family: 'Times New Roman'; font-size: 7pt;"
> </span
></span
>Best practices of IT<o:p></o:p>
</div>
<div
class="MsoListParagraphCxSpLast"
style="margin-left: 1.5in; text-indent: -0.25in;"
>
<span style="font-family: Wingdings;"
><span style="font-family: 'Times New Roman';">- </span
><span style="font-family: 'Times New Roman'; font-size: 7pt;"
> </span
></span
>Example, new bank must offers online paying bills, acc. monitoring to
compete<o:p></o:p>
</div>
<div class="MsoNormal">
<br />
</div>
<div class="MsoNormal">The Competitive Environment <o:p></o:p></div>
<div class="MsoNormal">
<u><br /></u>
</div>
<div class="MsoNormal"><u>Threat of New Entrants</u><o:p></o:p></div>
<div class="MsoListParagraphCxSpFirst" style="text-indent: -0.25in;">
<o:p></o:p>
</div>
<div class="MsoListParagraphCxSpMiddle" style="text-indent: -0.25in;">
<o:p></o:p>
</div>
<div class="MsoListParagraphCxSpLast" style="text-indent: -0.25in;"></div>
<ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;">
<li style="margin: 0px 0px 0.25em; padding: 0px;">
<span style="text-indent: -0.25in;">-</span
><span style="font-size: 7pt; text-indent: -0.25in;"
> </span
><span style="text-indent: -0.25in;"
>Many threats come from companies that do not yet exist or have a
presence in a given industry or market</span
>
</li>
<li style="margin: 0px 0px 0.25em; padding: 0px;">
<span style="text-indent: -0.25in;">-</span
><span style="font-size: 7pt; text-indent: -0.25in;"
> </span
><span style="text-indent: -0.25in;"
>The threat of new entrants forces top management to monitor the trends,
especially in technology, that might give rise to new competitors</span
>
</li>
<li style="margin: 0px 0px 0.25em; padding: 0px;">
<span style="text-indent: -0.25in;">-</span
><span style="font-size: 7pt; text-indent: -0.25in;"
> </span
><span style="text-indent: -0.25in;"
>Example, new bank (online paying bills, acc. monitoring)</span
>
</li>
</ul>
<br />
<div class="MsoListParagraphCxSpFirst" style="text-indent: -0.25in;">
3.<span style="font-size: 7pt;"
> </span
>Rivalry among existence competitors<o:p></o:p>
</div>
<div
class="MsoListParagraphCxSpMiddle"
style="margin-left: 1in; text-indent: -0.25in;"
>
<span style="font-family: Symbol;"
>·<span style="font-family: 'Times New Roman'; font-size: 7pt;"
> </span
></span
>High – when competition is fierce in a market <o:p></o:p>
</div>
<div
class="MsoListParagraphCxSpMiddle"
style="margin-left: 1in; text-indent: -0.25in;"
>
<span style="font-family: Symbol;"
>·<span style="font-family: 'Times New Roman'; font-size: 7pt;"
> </span
></span
>Low – when competition is more complacent <o:p></o:p>
</div>
<div
class="MsoListParagraphCxSpMiddle"
style="margin-left: 1in; text-indent: -0.25in;"
>
<span style="font-family: Symbol;"
>·<span style="font-family: 'Times New Roman'; font-size: 7pt;"
> </span
></span
>Best practices of IT<o:p></o:p>
</div>
<div
class="MsoListParagraphCxSpMiddle"
style="margin-left: 1.5in; text-indent: -0.25in;"
>
- Wal-Mart and its suppliers using IT – enabled system for
communication and track product at aisles by effective tagging system<o:p
></o:p>
</div>
<div
class="MsoListParagraphCxSpLast"
style="margin-left: 1.5in; text-indent: -0.25in;"
>
- Reduce cost by using effective supply chain<o:p></o:p>
</div>
<div class="MsoNormal">
<br />
</div>
<div class="MsoNormal">The Competitive Environment<o:p></o:p></div>
<div class="MsoNormal">
<u><br /></u>
</div>
<div class="MsoNormal">
<u>Rivalry Among Existing Firms</u>
</div>
<ul
style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em; text-indent: -24px;"
>
<li style="margin: 0px 0px 0.25em; padding: 0px; text-indent: 0px;">
<span style="text-indent: -0.25in;">-</span
><span style="font-size: 7pt; text-indent: -0.25in;"
> </span
><span style="text-indent: -0.25in;"
>Existing competitors are not much of the threat: typically each firm
has found its “niche”.</span
>
</li>
<li style="margin: 0px 0px 0.25em; padding: 0px; text-indent: 0px;">
<span style="text-indent: -0.25in;">-</span
><span style="font-size: 7pt; text-indent: -0.25in;"
> </span
><span style="text-indent: -0.25in;">However, </span
><u style="text-indent: -0.25in;">changes in management</u
><span style="text-indent: -0.25in;">, ownership, or “</span
><u style="text-indent: -0.25in;">the rules of the game</u
><span style="text-indent: -0.25in;">” can give </span
><u style="text-indent: -0.25in;">rise to serious threats</u
><span style="text-indent: -0.25in;"
> to long term survival from existing firms</span
>
</li>
<li style="margin: 0px 0px 0.25em; padding: 0px; text-indent: 0px;">
<span style="text-indent: -0.25in;">-</span
><span style="font-size: 7pt; text-indent: -0.25in;"
> </span
><span style="text-indent: -0.25in;">Example, the </span
><u style="text-indent: -0.25in;"
>airline industry faces serious threats</u
><span style="text-indent: -0.25in;"
> from airlines operating in bankruptcy, who do not the debts while
slashing fares against those healthy airlines who do pay on debt. (MAS
& AIR ASIA)</span
>
</li>
</ul>
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<br />
<div class="MsoNormal">
The Value Chains – Targeting Business Processes <o:p></o:p>
</div>
<div class="MsoListParagraphCxSpFirst" style="text-indent: -0.25in;"></div>
<ul style="line-height: 1.4; margin: 0.5em 0px; padding: 0px 2.5em;">
<li style="margin: 0px 0px 0.25em; padding: 0px;">
<span style="text-indent: -0.25in;"
>Supply Chain – a chain or series of processes that adds value to
product and service for customer</span
>
</li>
<li style="margin: 0px 0px 0.25em; padding: 0px;">
<span style="font-family: Symbol; text-indent: -0.25in;"
><span style="font-family: 'Times New Roman'; font-size: 7pt;"
> </span
></span
><span style="text-indent: -0.25in;"
>Add value to its products and services that support a profit margin for
the firm</span
>
</li>
</ul>
</div>
Farihassanalhttp://www.blogger.com/profile/02486694140808963721noreply@blogger.com0