Followers

Friday 26 August 2016

CASE STUDY :)))

Chapter 1 - Case Study


Answer :

1)  Apple achieved business success through the use of information from all areas operations to create a competitive advantage to their products. Converting data information into meaningful information could make a product from simply to whole. Sharing common information, enable an organization to be more effective and efficient. Steve Jobs had a lot with Apple's success. He was a perfectionist and wanted  every product to be perfect. Every department relies in each other and work together to produce the best.


Information technology(IT) enable managers to be more competent in the business function and the organization departments to be more effective. Information technology can control the use of computers and computers software. Jobs, wants to "control the primary technology in everything he does". He was obsessed with control, he wants i-Pod playing songs encoded by Apple only, but it will limited the i-Pod markets. Then he came with the idea landing with a Windows compatible and that made i-Pods sales when up. Apple's designs are distinctive and their devices rely more in standard technologies. His decision to change was fundamental to the exceptional success that Apple has over the past ten years. Giving a little control, Jobs found more power.


Apple provides the best customer service to all Apple users. Apple employees are smart and supportive, experts to connect customers and their to help integrate into their lives. Organizations are more interested to their customers satisfaction now than before. Apple knows that an organization without customers is unable to succeed. Apple use information from customers comments and suggestions about their products to develop new products and devices. This is important for customers to remain loyal and to continuing using them.


2)  The types of information staff employees at an Apple Store require is data. Based on business technology research, data are raw facts that describe the characteristics of an event or object. Before the information age, managers manually collected and analyzed data, a time-consuming and complicated task without which they would have little insight into how to run their business. Lacking data, managers often found themselves making business decisions about how many products to make, how much material to order, or how many employees to hire based on intuition or gut feelings. In the information age, successful managers compile, analyze, and comprehend massive amounts of data daily, which helps them make more successful business decisions.


The types of information the executives at Apple's corporate headquarters require is information. Meaning of information from business technology context is data converted into a meningful and useful context. Example of information that executives at Apple's corporate headquarters need are do they have enough inventory to meet demand, are prices too high or too low, what is employee turnover per store, where should they build a new store or should they close a store,etc.

Yes. There are links between these two types of information. Staff employees at an Apple store use also information to do their jobs however it is just at a store level not a corporate level. But for executives at Apple's corporate headquarters, they require information from many stores and the volumes of data they use to gain information are larger than store employees.

CHAPTER 15 : OUTSOURCING IN THE 21ST CENTURY

CHAPTER 15 : OUTSOURCING IN THE 21ST CENTURY


OUTSOURCING PROJECTS
Insourcing (in-house-development) – a common approach using the professional expertise within an organization to develop and maintain the organization's information technology systems

Outsourcing – an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house


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


Factors driving outsourcing growth

     Core competencies
     Financial savings
     Rapid growth
     Industry changes
     The Internet
     Globalization


OUTSOURCING BENEFITS

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

OUTSOURCING CHALLENGES

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

CHAPTER 14 : CREATING COLLABORATIVE PARTNERSHIP

CHAPTER 14 - CREATING COLLABORATIVE PARTNERSHIP


Organizations create and use teams, partnerships and alliances to :
  • undertake new initiatives
  • address both minor and major problems
  • capitalize on significant opportunities
Organizations create teams,partnerships and alliances both internally with employees and externally with other organizations.

Collaboration system : Supports the work of teams by facilitating the sharing and flow of information.

Two categories of collaboration :
1. Unstructured collaboration (information)
  • includes document exchange, shared whiteboard, discussion forums and email.
2. Structured collaboration (process)
  • involves shared participation in business processes such as workflow in which knowledge is hardcoded as rules.
Collaboration system includes :
- knowledge management system
- content management system
-workflow management system
- groupware system

CHAPTER 13 : E- BUSINESS

CHAPTER 13 : E-BUSINESS


E-commerce - the buying and selling of goods and services over the internet.

E-bsuiness - the conducting of business on the internet, not only buying and selling, but also serving customers and collaborating with business partners.

Industries Using E business

E-business Models 

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








Business-to-business (B2B)
Electronic marketplaces or e-marketplaces- interactive business communities providing a central market space where multiple buyers and sellers can engage in business activities.

Business-to-consumer (B2C)
Applies to any business that sells its products or services to consumers over the internet.

 E-shop - a version of a retail store where customers can shop at any hour of the day without leaving their home or office.
E-mall- consists of a number of e-shops, it serves as a gateway through which a visitor can access other e-shops.

Types of Businesses

  Brick-and-mortar business- a business that operates in a physical store without an internet presence.
 Pure-play (virtual) business- a business that operates on the internet only without a physical store. Examples include Amazon.com and Expedia.com
Click-and-mortar business- a business that operates in a physical store and on the internet. Examples include REI and Barnes and Noble.


Consumer-to-business (C2B)
 Applies to any consumer that sells a product or service to a business over the internet.

 An example - Priceline.com where bidders (or customers) ser their prices for items such as airline tickets or hotel rooms, and a seller decides whether to supply them.

Consumer-to-consumer (C2C)
Online auctions:

  Electronic auction (e-auction)- sellers and buyers solicit consecutive bids from each other and prices are determined dynamically.
Forward auction- an auction that sellers use as a selling channel to many buyers and the highest bid wins.
Reverse auction- an auction that buyers use to purchase a product or service, selecting the seller with the lowest bid.

C2C Communities:
Communities of interest- people interact with each other on specific topics, such as golfing and stamp collecting.
Communities of relations- people come together to share certain life experience, such as cancer patients, senior citizens, and car enthusiasts.
Communities of fantasy- people participate in imaginary environments, such as fantasy football teams and playing one-to-one with Michael Jordan.


E-business Benefits and challenges 

 E-business Business:
-  highly accessible
-  decreased cost
-  increase convenience
- increase global reach

Challenges :
-  protecting consumers
-  leveraging existing systems
-  increasing liability
- providing security
-  adhering to taxation rules.

CHAPTER 12 : INTEGRATING THE ORGANIZATION FROM END TO END - ENTERPRISE RESOURCE PLANNING

CHAPTER 12

INTEGRATING THE ORGANIZATION FROM END TO END – ENTERPRISE RESOURCE PLANNING


Enterprise Resource Planning (ERP)

At the heart of all ERP systems is a database, when a user enters or updates information in one module, it is immediately and automatically updated throughout the entire system

  • ERP systems automate business processes


Bringing the Organization Together

  • ERP – The organization before ERP


The Evolution of ERP



Integrating SCM, CRM, and ERP

SCM, CRM, and ERP are the backbone of e-business

Integration of these applications is the key to success for many companies

Integration allows the unlocking of information to make it available to any user, anywhere, anytime

  • General audience and purpose of SCM, CRM and ERP


Integration Tools

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


Enterprise Resource Planning (ERP)

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


Enterprise Resource Planning’s Explosive Growth

SAP boasts 20,000 installations and 10 million users worldwide

ERP solutions are growing because:
  1. ERP is a logical solution to the mess of incompatible applications that had sprung  up in most businesses
  2. ERP addresses the need for global information sharing and reporting
  3. ERP is used to avoid the pain and expense of fixing legacy systems

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

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


Customer Relationship Management (CRM)

CRM enables an organization to:
  • Provide better customer service
  • Make call centers more efficient
  • Cross sell products more effectively
  • Help sales staff close deals faster
  • Simplify marketing and sales processes
  • Discover new customers
  • Increase customer revenues

Recency, Frequency, and Monetary Value

Organizations can find their most valuable customers through “RFM” - Recency, Frequency, and Monetary value
How recently a customer purchased items (Recency)
How frequently a customer purchased items (Frequency)
How much a customer spends on each purchase (Monetary Value)


The Evolution of CRM

  • CRM reporting technology – help organizations identify their customers across other applications

  • CRM analysis technologies – help organization segment their customers into categories such as best and worst customers

  • CRM predicting technologies – help organizations make predictions regarding customer behavior such as which customers are at risk of leaving




Using Analytical CRM to Enhance Decisions

Operational CRM – supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers

Analytical CRM – supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers


Customer Relationship Management Success Factors


CRM success factors include:
  1. Clearly communicate the CRM strategy 
  2. Define information needs and flows
  3. Build an integrated view of the customer
  4. Implement in iterations
  5. Scalability for organizational growth

CHAPTER 10 : EXTENDING THE ORGANIZATION - SUPPLY CHAIN MANAGEMENT

CHAPTER 10

EXTENDING THE ORGANIZATION – SUPPLY CHAIN MANAGEMENT


Supply Chain Management

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

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


Basics of Supply Chain

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

Information Technology’s Role in the Supply Chain

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


Factors driving SCM

Visibility

Supply chain visibility – the ability to view all areas up and down the supply chain

Bullwhip effect – occurs when distorted product demand information passes from one entity to the next throughout the supply chain


Consumer Behavior

Companies can respond faster and more effectively to consumer demands through supply chain enhances 

Demand planning software – generates demand forecasts using statistical tools and forecasting techniques


Competition

Supply chain planning (SCP) software– uses advanced mathematical algorithms to improve the flow and efficiency of the supply chain

Supply chain execution (SCE) software – automates the different steps and stages of the supply chain


Speed

Three factors fostering speed


Supply Chain Management Success Factors




SCM Stories

CHAPTER 9 : ENABLING THE ORGANIZATION-DECISION MAKING

CHAPTER 9ENABLING THE ORGANIZATION – DECISION MAKING
Decision MakingReasons for the growth of decision-making information systems
  1. People need to analyze large amounts of information
  1. People must make decisions quickly
  1. People must apply sophisticated analysis techniques, such as modeling and forecasting, to make good decisions
  1. People must protect the corporate asset of organizational information

Model – a simplified representation or abstraction of realityIT systems in an enterprise

Transaction Processing SystemsMoving up through the organizational pyramid users move from requiring transactional information to analytical information
  • Transaction processing system - the basic business system that serves the operational level (analysts) in an organization 

  • 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

  • Online analytical processing (OLAP) – the manipulation of information to create business intelligence in support of strategic decision making

Decision Support SystemsDecision support system (DSS) – models information to support managers and business professionals during the decision-making process
Three quantitative models used by DSSs include:
  1. Sensitivity analysis – the study of the impact that changes in one (or more) parts of the model have on other parts of the model
  1. What-if analysis – checks the impact of a change in an assumption on the proposed solution
  1. Goal-seeking analysis – finds the inputs necessary to achieve a goal such as a desired level of output
Executive Information SystemsExecutive information system (EIS) – a specialized DSS that supports senior level executives within the organization
Most EISs offering the following capabilities:
  1. Consolidation – involves the aggregation of information and features simple roll-ups to complex groupings of interrelated information
  1. Drill-down – enables users to get details, and details of details, of information
  1. Slice-and-dice – looks at information from different perspectives
Digital dashboard – integrates information from multiple components and presents it in a unified displayArtificial Intelligence (AI)Intelligent system – various commercial applications of artificial intelligenceArtificial intelligence (AI) – simulates human intelligence such as the ability to reason and learnAdvantages: can check info on competitorFour most common categories of AI include:
  1. Expert system – computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems
  1. Neural Network – attempts to emulate the way the human brain works ;Fuzzy logic – a mathematical method of handling imprecise or subjective information
  1. Genetic algorithm – an artificial intelligent system that mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem
  1. Intelligent agent – special-purposed knowledge-based information system that accomplishes specific tasks on behalf of its users;Multi-agent systems, Agent-based modeling

Data MiningData-mining software includes many forms of AI such as neural networks and expert systemsCommon forms of data-mining analysis capabilities include:
  • Cluster analysis
  • Association detection
  • Statistical analysis

Cluster AnalysisCluster analysis – a technique used to divide an information set into mutually exclusive groups such that the members of each group are as close together as possible to one another and the different groups are as far apart as possibleCRM systems depend on cluster analysis to segment customer information and identify behavioral traitsAssociation DetectionAssociation detection – reveals the degree to which variables are related and the nature and frequency of these relationships in the informationMarket basket analysis – analyzes such items as Web sites and checkout scanner information to detect customers’ buying behavior and predict future behavior by identifying affinities among customers’ choices of products and servicesStatistical AnalysisStatistical analysis – performs such functions as information correlations, distributions, calculations, and variance analysisForecast – predictions made on the basis of time-series informationTime-series information – time-stamped information collected at a particular frequency