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Friday, 18 September 2015

Chapter 15: Creating Collaborative Partnerships

Chapter 15: Creating Collaborative Partnerships

Teams,Partnerships,and Alliances
  • to be successful and avoid being eliminated by the competition an organization must constantly undertake new initiatives,address both minor and major problems,and capitalize on significant opportunities.
  • to support these activities an organization often will create and utilize teams,partnerships,alliances because the expertise needed is beyond the scope of a single individual or organization.
  • these teams,partnerships,and alliances can be formed internally among a company's employees or externally with other organizations.
  • the core competency of an organization is its key strength,a business function that it does better than any of its competitors.
  • a core competency strategy is one in which an organization chooses to focus specifically on what other specialist organizations to handle nonstrategic business processes.
  • information technology makes such business partnerships ans alliances easies to establish and manage.
  • an 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.
  • the advent of the internet has greatly increased the opportunity for IT-enabled business partnerships and alliances.
15.1 : Teams,Partnerships and Alliances Within and External to an Organization

Collaboration Systems
  • a collaboration system is an IT-based set of tools that supports the work of teams by facilitating the sharing and flow of information.
  • collaboration solves specific business tasks such as telecommuting,online meetings,deploying applications,and remote project and sales management
  • unstructured collaboration(sometimes referred to as information collaboration) includes document exchange,shared whiteboards,discussion forums,and email.
  • structured collaboration(or process collaboration) involves shared participation in business processes,such as workflow,in which knowledge is hard-coded as rules.
15.2: Collaborative Business Areas

15.3: Typical Collaborative Business Functions

Knowledge Management Systems
  • involves capturing,classifying,evaluating,retrieving,and sharing information assets in a way that provides context for effective decisions and actions.
  1.  KM in Business
  • supports the capturing,organization,and dissemination of knowledge(i'eknow-how) throughout an organization.
  1. Explicit and Tacit Knowledge
  • consists of anything that can be documented,archived,and codified,often with  the help of IT.
  • patents,trademarks,business plans,marketing research,and customer lists are all examples of explicit knowledge.
  • tacit knowledge is the knowledge contained in people's heads
  • shadowing and joint problem solving are two best practices for transferring or re-creating knowledge inside an organization.
  • shadowing less experienced employees examine more experienced employees to understand how their counterparts approach tasks.
  • joint problem solving a novice employee and an expert employee work together on a project

15.4:Key Reasons Organizations Launch Knowledge Management Systems

Content Management Systems
  • content management system provides tools to manage the creation,storage,editing,and publication of information in a collaborative environment
15.5: Common Types of Content Management Systems

Working Wikis
  • wikis are web-based tools that make it easy for users to add,remove,and change online content
  • business wikis are collaborative web pages that allow users to edit documents,share ideas,or monitor the status of a project.
15.6: Major Content Management System Vendors

Workflow Management Systems
  • workflow defines all the steps or business rules,from beginning to end,required for a business process.
  • workflow management systems facilitate the automation and management of business processes and control the movement of work through the business process.
  • messaging-based workflow systems send work assignments through an email system.
  • database-based workflow systems store documents in a central location and automatically ask the team members to access the document when it is their turn to edit the document.
15.7: Workflow Management System Features

Groupware Systems
  • groupware is software that supports team interaction and dynamics including calendaring,scheduling,and videoconferencing.
  1. Videoconferencing: is a set of interactive telecommunication technologies that allow two or more locations to interact via two-way video and audio transmissions simultaneously.
  2. Web Conferencing: blends audio,video,and document-sharing technologies to create virtual meeting rooms where people "gather" at a password-protected website.
  3. Instant Messaging: email is by the dominant collaboration application,but real-time collaboration tools like instant messaging are creating a new communication dynamic within organizations.
15.8: Groupware Systems

15.9:Groupware Advantages

15.10: Videoconferencing

15.11:Web Conferencing

15.12: Instant Messaging Application

Chapter 14: Ebusiness

Chapter 14: Ebusiness

  • is the buying and selling of goods and services over the internet
  • ecommerce refers only to online transactions.
  • derived from the term ecommerce,is the conducting of business on the internet,not only buying and selling,but also  serving customers and collaborating with business partners.
Difference between ecommerce and ebusiness
  • to exchanges of information
  • to enhance productivity
  • maximize convinence
  • improve communications globally 
14.1 : Overview of Several Industries Using Ebusiness

Ebusiness Models
  • is an approach to conducting electronic business on the Internet .
14.2: Basic Ebusiness Models

14.3: Ebusiness Models

Business to Business(B2B)
  • applies to business buying from and selling to each other over the internet.
  • online access to data,shipping date,delivery date and shipping status,provided either by the seller or third-party provider,is widely supported by B2B models.
  • electronic marketplaces,or emarketplaces,are interactive business communities providing a central market space where multiple buyers and sellers can engage in business activities.
14.4: Business to Business Emarketplace Overview

Business to Consumer (B2C)
  • applies to any business that sells its products or services to consumers over the Internet.
  • eshop.sometimes referred to as an estore or etailer,is a version of a retail store where  customers can shop at any hour of the day without leaving their home or office.
  • these online stores sell and support a variety of products and services.
  • the online business channeling their goods and services via the internet only
  • emall consists of a number of eshops it serves as a gateway through which a visitor can access other eshops.
14.5:Types of Business

14.6: Online Auctions

Consumer to Business(C2B)
  • applies to any consumer that sells a product or service to a business over the internet.
  • the demand for C2B e business will increase over the next few due to customers' desires for greater convenience and lower prices.
Consumer to Consumer(C2C)
  • applies to sites primarily offering goods and services to assist consumer interacting with each other the internet.
  • the internet's most successful C2C online auction website,e bay,links like-minded buyers and sellers for a small commission.
14.7: C2C Communities

14.8:E- business Benefits

  • web mashups is a website or web application that uses content from more than one source to create a completely new service.
  • API(application programming interface),which is a set of routines,protocols,and tools for building software applications.
14.9: E- business Challenges

14.10:The Benefits and Challenge of Various E -marketplace Revenue Models

Saturday, 12 September 2015

Chapter 12 - Integrating The Organization From The End To End - Enterprise Resource Planning

Enterprise Resource Planning (ERP)

·                     It serves as the organization’s backbone in providing fundamental decision making support.
·                     It enables people in different business areas to communicate. 
·                     ERP system helps an organization to obtain operational efficiencies, lower costs, improve supplier and customer relations, and increase revenues and market share.
·                     The heart of an ERP system is a central database that collects information from and feeds information into all the ERP system’s individual application components (called modules), supporting diverse business function such as accounting, manufacturing, marketing, and human resources. 
·                      ERP automates business processes such as order fulfillment- taking an order from a customer, shipping the purchase, and then billing for it. 
ERP Integration Data Flow 
ERP Process Flow 

Bringing the Organization Together 

·                      ERP enables employees across the organization to share information across a single, centralized database.
·                     With extended portal capabilities, an organization can also involve its suppliers and customers to participate in the workflow process, allowing ERP to penetrate the entire value chain, and help the organization achieve greater operational efficiency.
Organization before ERP 
ERP- Bringing the Organization Together 

The Evolution of ERP 

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

Integrating SCM, CRM, and ERP

Integration of SCM, CRM, and ERP is the key to success for many companies. Integration allows the unlocking of information to make it available to any user, anywhere, anytime. 2 main competitors in ERP market: 
1.    Oracle 
2.    Sap

Primary Users and Business Benefits of Strategic Initiatives.
Integration Tools

·                     An integrated enterprise infuses support areas, such as finance and human resources, with a strong customer orientation. 
·                     Integration are achieved using:  
* Middleware- several different types of software that sit in the middle of and provide connectivity between two or more software applications. It translates information between disparate systems.
* Enterprise application integration (EAI) middleware- 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.

 Integration between SCM, CRM, and ERP Applications.

·                     Companies run on independent applications, such as SCM, CRM, and ERP. If one application performs poorly, the entire customer value delivery system is affected.
Enterprise Resource Planning’s Explosive Growth:

Reasons of ERP being proven to be such a powerful force:

·                     ERP is a logical solution to the mess of incompatible applications that had sprung up in most businesses. 
·                     ERP addresses the need for global information sharing and reporting.
·                     ERP is used to avoid the pain and expense of fixing legacy systems
To qualify as a true ERP solution, the system not only must integrate various organization processes, but also must be:

·                      Flexible- an ERP system should be flexible in order to respond to the changing needs of an enterprise. 
·                     Modular and open- an ERP system has to have open system architecture, meaning that any module can be interfaced with or detached whenever required without affecting the other modules. The system should support multiple hardware platforms for organizations that have a heterogeneous collection of systems. It must also support third- party add-on components. 
·                      Comprehensive- an ERP system should be able to support a variety of organizational functions and must be suitable for a wide range of business organizations. 
·                      Beyond the company- an ERP system must not be confined to organizational boundaries but rather support online connectivity to business partners or customers.
Everyone involved in sourcing, producing, delivering the company’s product works with the same information, which eliminates redundancies, cuts wasted time, and removes misinformation.

Chapter 10 – Extending the Organization – Supply Chain Management

SCM – the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability
The supply chain has three main links.
1.       Materials flows from suppliers and their upstream suppliers at all levels
2.       Transformation of materials into semi-finished products, or the organization’s own production processes
3.       Distribution of products to customers and their downstream customers at all levels

 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


·         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.
·         The bullwhip effect occurs when distorted product demand information passes from one entity to the next throughout the supply chain.


·         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.
·         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.
·         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.


·         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.
·         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.


·         These systems raise the accuracy, frequency and speed of communication between suppliers and customers, as well as between internal users.
·         Another aspect of speed is the company’s ability to satisfy continually changing customer requirements efficiently, accurately and quickly.


·         To succeed in today’s competitive markets, companies must align their supply chain with the demands of the markets they serve.
·         Supply chain performance is now a distinct competitive advantage for companies proficient in the SCM area.


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.


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.


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.


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.


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. 

Chapter 9 - Enabling The Organization - Decision Making

Decision Making 

  •      Reasons for Growth of Decision Making Information System

-          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
-          People must make decisions quickly – Time is of the essence and people simply do not have time to sift through all the information manually
-          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
-          People must protect the corporate asset of organizational information 
– Information systems offer the security required to ensure organizational information remains safe.
  •       Model – A simplified representation or abstraction of reality
  •       IT systems in an enterprise

Transaction Processing System
  •      Moving 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 (analysis) 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 systems
  •      Decision 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
2.       What-if analysis – checks the impact of a change in an assumption on the proposed solution
3.       Goal-seeking analysis – finds the inputs necessary to achieve a goal such as a desired level of outputs

What-if analysis

Goal-seeking analysis

Executive information system 
  •       Executive information system (EIS) – A specialized DSS that supports senior level executives within the organization
  •       Most EISs offering the following capabilities;

-          Consolidation – involves the aggregation of information and features simple roll-ups to complex groupings of interrelated information
-          Drill-down – enables users to get details, and details of information
-          Slice-and-dice – looks at information from different perspectives

  •       Interaction between a TPS and an EIS

  •      Interaction between a TPS and a DSS

  •       Digital dashboard – integrates information from multiple components and presents it in a united display

Artificial intelligence (AI)
  •       The ultimate goal of AI is the ability to build a system that can mimic human intelligence
  •       Intelligent system – various commercial applications of artificial intelligence
  •      Artificial intelligence (AI) – simulates human intelligence such as the ability to reason and learn
  •      Four most common categories of AI include;

1.       Expert system – computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems
2.       Neural network – attempts to emulate the way the human brain works
o   Fuzzy logic – a mathematical method of handling imprecise or subjective information
3.       Genetic algorithm – an artificial intelligent system that mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem
4.       Intelligent agent – special-purposed knowledge-based information system that accomplishes specific tasks on behalf of its users

Data Mining

  •      Data-mining software includes many forms of AI such as neutral networks and expert systems