U3 & CHAPTER 15 : Outsourcing In The 21st Century ( 15th March 2017, 12.11 p.m.)

Assalamualaikum My Dear Bloggers,

Rumors have passed by my class saying that blog will be reviewed by this week, I was thrilled and scared at the same time because I haven't really complete 100% of this blog yet. When I meet my lecturer earlier like 10 am just now, she mention that the blog will be reviewed during study week which is 26th March 2017, A relief just inhaled in me, although this would be my last academic post, I hope this blog would be a prolonged study for those whom are interested in Business IT.

The last chapter.....

    OUTSOURCING

         

                               IN

                                  

                                     THE

                                                  21st

         

                                                              CENTURY

Basically in this chapter, you will study mainly on OUTSOURCING

What is Outsourcing ?

It is an arrangement which one organisation provides a service or services for another organisation that chooses not to perform them in-house.

In conjunction with that, what is Insourcing ?

A common approach using the professional expertise with in an organisation to develop and maintain the organisation's information technology systems.

Why does a company outsources?

- Tap outside sources of expertise.

- Concentrate resources on core business.

- Reduce head count and related expenses.

- Eliminate the need of reinvest in technology.

- Reduces costs.

- Better manage the costs of internal processes.

What are the outsourcing projects involved?

- Onshore outsourcing

Engaging another company with in the same country for services.

- Nearshore outsourcing

Contracting an outsourcing arrangement with a company in a nearby country.

- Offshore outsourcing

Using organisations from developing countries to write code and develop systems.

What are the factors drives the outsource projects?

- Core competencies
Many companies have recently begun to consider outsourcing as a means to fuel revenue growth rather than just a cost-cutting measure.

- Financial savings 

It is typically cheaper to hire workers in China and India than similar workers in Malaysia.

- Rapid growth
An organization is able to acquire best-practices process expertise. This facilitates the design, building , training , and development of business processes or functions.

- Industry Charges
High level of reorganization across industries have increased demand for outsourcing to better focus on core competencies.

- The Internet
The pervasive nature of the internet as an effective sales channel has allowed clients to become more comfortable with outsourcing.

- Globalization
As markets open worldwide, competition heats up. Companies may engage outsourcing service providers to deliver international services.

Non-core business functions outsource industries

- Banking & Finance
Checks electronic payment processing , credit report issuance etc.

- Insurance
Claim reporting and investigating.

- Telecommunications
Invoice and bill production.

- Health care
Electronic data interchange.

- Transportation
Ticket and order processing

- Government
Loan processing

- Retail
Electronic payment processing.

The benefits of outsourcing.

- Increased quality and efficiency
- Reduce operating expenses
- Outsource non-core processes
- Reduce exposure to risk
- Economics of scale, expertise, and best practices
- Access to advance technologies
- Increased flexibility.

The challenges in outsourcing includes

• Contract length
• Confidentiality
• Scope definition

Thank You

U3 & CHAPTER 14 : Creating Collaborative Partnerships ( 14th March 2017, 12.27 a.m.)

Assalamualaikum Dear Bloggers,

Lets continue on

CREATING  A COLLABORATIVE PARTNERSHIPS IN THIS IT BUSINESS

Organisations create and use teams partnerships , and alliances to 

- Undertake new initiatives

- Address both minor and major problems

- Capitalise on significant opportunities 

Which both internally with employees and externally with other organisations. A collaborative system in which the work of teams by facilitating the sharing and flow of information.

It is based on

Core Competency

An organisation's key of strength, a business function that it does better than any of its competitors.

Core Competency Strategy

Organisation chooses to focus specifically on its core competency and forms partnerships with other organisations to handle nonstrategic business processes.

Information technology can make a business partnership easier to establish and manage.The internet has dramatically increased the ease and availability for IT-enabled. Collaboration solves specific business tasks such as  telecommuting, online meetings, deploying applications, and remote project & sales management.

The two categories involved..

Unstructured collaboration

Includes the document exchange, shared whiteboards, discussion forums and e-mail

Structured Collaboration

Involves shared participation in business processes such as workflow on which knowledge is hard coded as rule.

The systems involved are..

Knowledge Management Systems

Involves capturing, classifying, evaluating, retrieving and sharing information assets in a way that provides context for effective decisions and actions, It also supports the capturing and use of an organisation's "know-how" term.

- Explicit Knowledge

Consists of anything that can be documented, archived and codified often with the help of  IT

- Tacit Knowledge

Knowledge contained in people's head

- Shadowing

Less experienced staff observe more experienced staff to learn how their more experienced staffs counterparts approach their work.

- Joint problem solving

A novice and expert work together on a project.

- Social Networking Analysis

A process of mapping group 's contacts to identify who knows whom and who works with whom. It also provides a clear picture of how employees and divisions work together and can help identify key experts.

Content Management Systems

Provides tools to manage the creation, storage, editing, and publication of information in a collaborative environment.

This includes of,

- Document Management Systems (DMS)

Supports the electronic capturing, storage, distribution , archival and accessing of documents

- Digital Asset Management System (DAM)

Similar to DMS, generally works with the binary rather than text files, such as multimedia files types.

- Web Content Management (WCM)

Adds an additional layer to document and digital asset management that enables publishing content both to intranets and to public Web Sites.

- Business Wikis

Collaborative web pages that allow users to edit documents , share ideas, or monitor the status of a project.

Workflow Management Systems

Work activities can be performed in series or in parallel that involves people and automated computer systems. It also facilitates the automation and management of business processes and management of business processes and controls the movement of work through the business process.

- Messaging-Based Workflow System

Sends work assignments through an e-mall systems

- Database-based Workflow System

Stores document in a central location and automatically asks the team members to access the document when it is their turn to edit the document.

Groupware Technologies Systems

Software that supports team interaction and dynamics including calendaring, scheduling, and videoconferencing.

- Videoconferencing

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

- Web Conferencing

Blends audio video and document-sharing technologies to create virtual meeting rooms where people gather at a password-protected website.

- Instant Messaging

Types of communications service that enables someone to create a private chat room with another individual to communicate in real-time over the internet.

U3 & CHAPTER 13 : E-Business (13th March 11.14 a.m.)

Assalamualaikum Dear Bloggers,

I haven't realise that there are actually 3 more chapters that I haven't update in this page. Yes, this week is the deadline week where this blog will be evaluated by my lecturer which I don't even know when. In precise with calm and peace, I will update this blog for the last 3 chapters a head.

The question is...

Yup , I should....

Lets look into E-Business

The internet is so powerful channel that presents new opportunities for an organisation to :

- Touch customers

- Enrich products and services with information

- Reduce costs

How do we differ what is E-Commerce and E-Business?

E-Commerce

The buying and selling of goods  and services over the internet.

E-Business

The conducting of business on the internet including not only buying and selling but also serving customers and collaborating with business partners.

- In E-Business, it has its model which is an approach to conducting electronic business on the internet.

What is Business-to-Business (B2B) ?

- It is an electronic marketplace where interactive business communities providing a central market where multiple buyers and sellers can engage in e-business activities.

- It also present structures for conducting commercial exchange, consolidating supply chains, and creating new sales channels

- Their primary goal is to increase market efficiency by tightening and automating the relationship between buyers an d sellers.

What is Business-to-Consumer (B2C) ?

It contains,

- 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

Consist of a number of e-shops which it serves s a gateway through which a visitor can access other e-shops.

Its business types,

- Brick-and-mortar Business

Operates in a physical store without an internet presence. Eg. Bata

- Pure-play Business

A business that can operates on the internet only without a physical store. Eg. Amazon.com

- Click-and-mortar Business

A business that operates in a physical store and on the internet. Eg. hijab By Hanami

What is Consumer-to-Business (C2B) ?

Its examples,

Priceline.com & Agoda.com

Its future views,

Demand of C2B will increase for the next few years due to customer's desire for greater convenience and lower prices.

What is Consumer-to-Consumer (C2C) ?

Its an online auctions,

- Electronic Auctions

Sellers and buyers solicit consecutive bids from each other and prices are determined dynamically

- Forward Auction

Sellers use as a selling channel to many buyers and the highest bid wins.

- Reverse Auction 

Buyers use to purchase a product or service, selecting the seller with the lowest bid.

Its communities includes,

- Communities of interest

People interact with each other on specific topics.

-  Communities of relation

People come together to share certain life experiences.

- Communities of fantasy

People participate in imaginary environments,

Its examples,

E-Bay.com & Mudah.my

What are E-Business benefits?

Its typically

- Highly accessible

Business operates 24 hours per day

- Increased customer loyalty

Additional channels to contact, respond to and access customers helps contribute to customer loyalty

- Improved information content

Electronic catalogues and Web pages present customers with updated information in real-time about goods, services, and prices.

- Increased convenience

Automates and improves many of the activities that make up a buying experience more interesting.

- Decreased costs

Cost of conducting business on the internet is substantially smaller than traditional forms of business communication.

What are E-Business challenges faced?

- Identifying limited market segments.

- Managing consumer trusts

- Ensuring consumer protection.

- Adhere to taxation rules.

What is Web Mashups?

Its a website or web application that uses content from more that one source to create a completely new service

Well bloggers,

U3 & CHAPTER 12 : Integrating The Organization from End to End - Enterprise Resource Planning ( 17th February 2017, 5.30p.m.)

Assalamualaikum Bloggers,

In relation with previous topics which SCM n CRM...
Guess what...
Now its ERP turn to be studied in detail...

IF YOU COULD REMEMBER,
                                            which some say yes or some might not,
                                                                     ERP is an Enterprise Resource Planning

Its an Enterprise
                     which has a well-defined Resource
                                                                  which also have a well-refined Planning

BASICLY...
ERP at a heart of all its systems, it is a database where when a users enters or updates information in one module, it is immediately and automatically updated throughout the entire system.

Its automate business process....

UPON BRINGING THE ORGANIZATIONAL TOGETHER...

In most organizations, information has traditionally been isolated within specific departments, whether on an individual database, in a file cabinet, or on an employee's PC.

However, there are some disadvantages encountered in ERP
- Update issues
- Redundancy
- Inaccurate information across databases
- Different formats of information in the different databases
- Inability to access other department information and not being provided with a 360 degree view of the organization.
- Different customer information in different databases.

THE EVOLUTION OF ERP...



INTEGRATION OF SCM + CRM + 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 and anytime.

- Many ERP vendors offer SCM and CRM components

- These modules are typically not as functional or flexible as the modules offered by industry leaders who specialize in SCM and CRM.

The tools used are

- 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.

The criteria that ERP must integrate various organizational processes are :

- Flexible

Must be able to quickly respond to the changing needs of the organization.

- Modular and Open

Must have an open system architecture, meaning that any module can be interface , with or detached whenever required without affecting the other modules.

- Comprehensive
Must be able to support a variety of organizational functions for a wide range of businesses.

- Beyond the company
Must support external partnerships and collaboration efforts

That is all for this chapter people....



U3 & CHAPTER 11 : Building a customer Centric Organization - Customer Relationship Management ( 16th February 2017, 7.10p.m.)

Assalamualaikum People,

Previously we've mentioned about SCM, but now we are ahead further to CRM which we have revised before

DO YOU REMEMBER ???

Even I can't remember which chapter was it. Anyway, moving on to the current chapter, CRM is basically an abbreviation for Customer Relationship Management.

YES, its Customer Relationship Management, so it means here that it have something to between :

CUSTOMERS & ORGANZATIONS

 

 

CRM ENABLES...

 

- Provide better customer service

- Make call centers more efficient

- Cross sell products more effectively

- Help sales staff close deal faster

- Simplify marketing and sales processes

- Discover new customers

- Increase customer revenues

 

AN ORGANIZATION MAY FIND THEIR MOST VALUEBLE CUSTOMERS THROUGH....

 

 

R.F.M method

 

 

 

Recency - How recently a customer purchased items

 

Frequency - How frequently a customer purchased items

 

Moentary Value - How much a customer spends on each purchase

 

 

THE EVOLUTION...

 

 

 

1.) Reporting Technology

Help organizations identify their customers across other applications

 

2.) Analysis Technologies

Help organization segment their customers into categories such as best and worst customers

 

3.) Predicting Technologies

Help organizations make predictions regarding customer behavior such as which customers are at risk of leaving.

 

ANALYTICAL CRM TO ENCHANCE 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.

 

 

CRM SUCCESS FACTORS...

 

 

 

- Clearly communicate the CRM strategy

- Define information needs and flows

- Build an integrated view of the customer

- Implement in iterations

- Scalability for organizational growth

 

 

 

 

 



U3 & CHAPTER 10 : Extending The Organizational Supply Chain Management ( 15th February 2017, 10.44a.m.)

Assalamaualaikum Dear Bloggers,

I need to be as well prepared as possible  to update this blog because since yesterday 2 hours class, my lecturer speed up her lecturers upon chapter 10, 11 and 12 in one class. So need to be well updated before the WEEK 14 arrives where all the assignment in individual or group will be handed in that is between 13 March 2017 - 17 March 2017.

As you can recall, we have already studied the pre-face of this chapter which its subtopic is Supply Chain Management (SCM).

But now, you guys are gonna dive in the topic more detailed on what is SCM is all about and what it does..

* SUPPLY CHAIN MANAGEMENT *

-  An 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.

THE BASICS...

- The 3 basics links

• Materials flow from suppliers and their upstream suppliers at all levels.
• Transformation of materials into semi-finished and finished products through the organization;s own production process
• Distribution of products to customers and the downstream customers to all levels.

- Plan

A company must have a plan for managing all the resources that go toward meeting customer demand for products and services

- Source

Companies must have carefully choose reliable suppliers that will deliver goods and services required for making their products.

- Make 

This is the step where companies manufacture their products of services. This can include scheduling the activities necessary for production , testing, packaging, and preparing for delivery.

- Deliver (Logistic)

Companies must be able to receive orders from customers, fulfill those orders via a network of warehouses, pick transportation companies to deliver the products, and implement a billing and invoicing system to facilitate payments.

- Return 

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

THE FACTORS...

 

- Visibility

More visible models of different ways to do things in the supply chain have emerged. High visibility in the supply chain is changing industries, as Wal-Mart demonstrated.

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

Supply chain visibility allows all organizations to eliminate the bullwhip effects

Example of Bullwhip effects

Diapers, the need of diapers is constant, it does not increase on festive seasons and it is a demand for all year long. The number of  newborn babies determines diaper demand and that number is constant. Retailers order diapers from distributors when their inventory falls below a certain level, they might order a few extra just to be safe. Distributors order diapers from manufactures when their inventory level falls below a certain level, they might order a few extra just to be safe. Manufactures order diapers from manufactures when their inventory level falls below a certain level, they might order a few extra just to be safe. Eventually,, the on or two extra boxes ordered from a few retailers becomes several thousand boxes for the manufacturer. This is the bullwhip effect, a small ripple at one end makes a large wave at the other end of the whip.

- Consumer Behavior

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

Demand Planning Software = Generates demand forecasts using statistical tools and forcasting techniques

- Competition 

Supply Chain Planning software SCP  =  used advanced mathematical algorithms to improve the flow and efficiency of the supply chain

Supply Chain Execution software SCE  = automates the different steps and stages of the supply chain

SCP and SCE both increases a companies's ability to compete

SCP depends entirely on information for its accuracy

SCE can be as simple as electronically routing orders from a manufacture to a supplier.

- Speed

3 main factors that fostering speed

• Pleasing a customer has become something of a corporate obsession. Serving the customer in the best, most efficient, and most effective manner has become critical and information about issues such as order status, product availability , delivery schedules. and invoices has become a necessary part of the total customer service experience.
• Information is crucial to manager's abilities to reduce inventory and human resource requirements to a competitive level.
• Information flows are essential to strategic planning for and deployment of resources.

THE SUCCESS FACTORS...

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

Thank You...