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Outsourcing in the 21st century (Chapter 19)

Outsourcing Projects

Outsourcing is an arrangement by which one organization provides a services or services for another organization that choose 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 organization from development countries to write code and develop systems .

Outsourcing benefits

•           Increased  quality and efficiency of a process
•           Reduced operating expenses
•           Resources focused on core profit
•           Reduced exposed to risks involved capital

Outsourcing challenges

•           Contract length
•           Competitive edge
•           Confidentiality
•           Scope definition 

Creating collaborative Partnerships (Chapter 15)

Web 2.0 is the next generation of Internet use . encourages user participation and the formation of communities .

Content sharing through open sourcing

Open system – consists of nonproprietary hardware and software .

Source code – contains instructions written by a programmer specifying by computer software .

Open sources – refers to any software whose source code is made available free for any third party to review and modifying .

User-Contributed Content

Is created and updated by many users for many users . Flicks, Wikipedia , and YouTube

Collaboration inside the organization

Is a set of tools that supports the work of teams or groups .

-                     Explicit and Tacit Knowledge

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

 Tacit Knowledge – The knowledge contained in people’s heads .

Collaboration outsides the organization

Crowdsourcing – refers to the wisdom of the crowd .

Networking communities with Business 2.0

• Social tagging – the collaboration activity of marking shared online
• Blogs – an online journal that allows users to post their own comment , graphics , and video .
• Wikis – types of collaboration web type that allows user to add , remove , and change content .
• Mashup – website that uses content from more than one source to create a completely new product .

The challenges of Business

-Technology Dependence

-Information Vandalism

-Violation of copyright and plagiarism 

Ebusiness (Chapter 14)

Ebusiness Model 

Is a plan that details how a company crates, delivers, and generates revenues.

Ebusiness Model fall into one of the four categories :

•       Business-to-Business
•       Business-to-consumer
•       Consumer-to-Business
•       Consumer-to-Consumer

Business-to-Business

   Applies to businesses buying from and selling to each other over the Internet .

Business-to-Consumer

-          Applies to any business that sells its products or services directly to consumers online .

Consumer-to-Business

-          Applies to any consumer who sells a product or service to a business on the Internet .

Consumer-to-Consumer

-          Applies to consumer offering goods and services to each other on the Internet .

E-Business forms and revenue-generating strategies

Google is an ebusiness that did not figure out way to generate profits until many years after its launch . Google determines a prices and a search the same terms . Pricing for keywords can range form 5 cents to 10$ a click .

Ebusiness Tools for Connecting and Communicating

•            Email

S    Short  for electronic mail , digital messages .

•     Instant Messaging

-          A service that enables instant or real-time communication between people .

•       Podcasting

-          Convert an audio broadcasting to a digital music player .

4)      Videoconferencing

-          Allows people at two or more locations to interact via two-way video and audio .

5)      Web Conferencing

-          Allow the user to deliver a presentation over the web to a group of geographically .

6)      Content management systems

-          Helps companies manage the creation, storage, editing, and publication of their website .

The Challenges of Ebusiness

1)Identifying limited market segment

2) Managing Consumer Trust

3) Ensuring Consumer Protection

4) Adhering to taxation rules 

Integrating The Organization From End to End - Enterprise Resource Planning (Chapter 12)

Enterprise Resource Planning (ERP)

Enterprise resource planning systems serve as the organization's backbone in providing fundamental decision-making supports.

Bringing the organizational together

• information has traditionally been isolated within specific departments, whether on an individual database, in a file cabinet, or on an employee's.
•  ERP enables employees across the organization to share information across a single, centralized database.

Evolution of ERP

•  ERP solutions were developed to deliver automation across multiple units of an organization, yo help facilitate the manufacturing process and address issues such a raw materials, inventory, order entry, and distribution.
•  ERP handle document management, such as cataloging contracts and purchase orders.

Integrating SCM, CRM and ERP

•  this application are the backbone of ebusiness.
•  is the key success of the company.
•  allows unlocking of information to make it available to any user, anywhere, anytime.

Integrating tools

•  achieved using middleware- several different types of software that sit in the middle of and provide connectivity between two or more software applications.
•  enterprise application integration (EAI) middleware represents a new approach to middleware by packaging together commonly used functionality.
•  if one applications performs poorly, the entire customers value delivery systems will affected.

Building a Customer - center Organization - Customer Relationship Management (Chapter 11)

Customer Relationship Management

- customer relationship management (CRM) is a means of managing all aspects of a customer's relationship with an organizations to increase customer loyalty and retention and an organization's profitability.

The Benefits of CRM

•  firms can find their most valuable customers by using the RFM formula-recency, frequency, and monetary value.

Evolution of CRM

•  3 phrases in evolution of CRM : i) reporting  ii) analyzing   iii) predicting CRM reporting technologies help organizations identify their customers across other application.
•  CRM analysis technologies help organizations segment their customers into categories such as best and worst customers.
•  CRM predicting technologies help organizations predict customers behaviour such as which customer are at risk of leaving. 

Operational and Analytical CRM

•  operational CRM supports traditional transactional processing 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.

Extending The Organization - Supply Chain Management (Chapter 10)

Basics of Supply Chain

Supply chain management (SCM) is involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability.

Information Technology's Role in the Supply Chain

Visibility

- supply chain visibility is the ability to view all areas up and down the supply chain.

Consumer behaviour

- the behaviour of customers has changed the way business compete. Demand planning software generates demand forecasts using statistical tools and forecasting technique.

Competition

- supply chain planning (SCP) software using advanced mathematical algorithms to improve the flow and efficiency of the supply chain while reducing inventory.

- supply chain executives (SCE) software automates the different steps and stages of the supply chain.

Speed

- during the past decade, competition has focused on speed.

- new forms of serves, telecommunications, wireless application, and software are enabling companies to perform activities that were once never though possible.

- these systems raise the accuracy, frequency, and speed of communication between suppliers and customers, as well as between internal users.

Supply Chain Management Success Factors

•   Make the sale to suppliers
•  Wean employees off traditional business practices
•   Ensure the SCM systems supports the organizational goals
•  Deploy in incremental phases and measure and communicate success
•  Be future oriented