Outsourcing In The 21st Century ( Chapter 19 )

OUTSOURCING PROJECTS

• Insourcing ( in-house development ) is a common approach using the professional expertise within an organization to develop and maintain the organization's information technology systems.
• Outsourcing is an arrangement by which one organization provides a service or services for another organizations that chooses not to perform them in-house.

1. Onshore outsourcing - engaging another company within the same country for service.
2. Nearshore outsourcing - contracting an outsourcing arrangement with a company in a nerby country. Often this country will share a border with a native country
3. Offshore outsourcing - using organization from developing countries to write code and develop systems. In offshore outsourcing the country is geographically far away.

OUTSOURCING BENEFITS

The benefits associated with outsourcing include :

• Increased quality and efficiency of a process, service or function
• Reduced operating expenses
• Resources focused on core profit-generating competencies
• Reduced exposure to risks involved with large capital investment
• Access to outsourcing service provider's economies of sales
• Access to outsourcing services provider's expertise and best-in-class practice
• Access to advanced technologies
• Increased flexibility with the ability to respond quickly to changing markets demand
• No costly outlay capital funds
• Reduced head count and associated overhead expense
• Reduce time to market for products or service

OUTSOURCING CHALLENGES

• Contract length
• Competitive edge
• confidentiality
• Scope definition

E-Business ( Chapter 14 )

E-BUSINESS MODELS


A Business model is a plan that details how a company creates, delivers, and generates revenue. Some models are quite simple : A company produces a good or services and sell it to customer. If the company is successful, sales exceed costs and the company generates a profit. Other models are less straightforward, and sometimes it's not immediately clear who makes money and how much. Radio and network television are broadcast free to anyone with a receiver, for instance advertisers pay the costs of programming.

• Business-to-business
• Business-to-customer
• Customer-to-business
• Customer-to-customer

e-Business

BUSINESS-TO-BUSINESS ( B2B )

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

BUSINESS-TO-CUSTOMER ( B2C )

• Applies to any business that sales its product or services to consumers over the internet

CUSTOMER-TO-BUSINESS ( C2B )

• Applies to any customer that sales a product or services to a business over the internet

CUSTOMER-TO-CUSTOMER ( C2C )

• Applies to sites primarily offering goods and services to assist consumers interacting with each other over the internet.

E-BUSINESS TOOL FOR CONNECTING AND COMMUNICATING

• Email
• Instant Messaging
• Pod casting
• Video conferencing
• Wed conferencing
• Content management systems

THE CHALLENGES OF E-BUSINESS

• Identifying limited market segments
• Managing consumer trust
• Ensuring customer protection
• Adhering to taxation rules

Integrating the Organization from End to End - Enterprise Resource Planning ( Chapter 12 )

ENTERPRISE RESOURCE PLANNING ( ERP )

WHAT IS ENTERPRISE RESOURCES PLANNING?

THE EVOLUTION OF ERP

Evolution Of ERP

INTEGRATION TOOLS

• Integration are achieved using middleware - several different types of software that sit in the middle of an provide connectivity between two or more software application. Middleware 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 link to popular enterprise application, which reduces the time necessary to develop solutions that integrate applications from multiple vendors.

Primary Users and Business Benefits of Strategic Initiatives

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

CUSTOMER RELATIONSHIP MANAGEMENT


Customer Relationship Management ( CRM ) is a means of managing all aspects of customer's relationship with an organization to increase customer loyalty and relation and an organization's profitability. CRM allows an organization to gain insight into customer's shopping and buying behaviour. Every time the customer communicates with a company, the firm has a chance to built a trusting relationship with that particular customer.

WHAT IS CUSTOMER RELATIONSHIP MANAGEMENT?

OPERATIONAL AND ANALYTICAL CRM


Operational CRM support traditional transactional processing for day-to-day front-office operations or system that deal directly with the customer. Analytical CRM support back-office operations and strategic analysis and includes all system that do not deal directly with customer.

Operational CRM and Analytical CRM

Extending The Organization - Supply Chain Management ( Chapter 10 )

BASICS SUPPLY CHAIN MANAGEMENT

WHAT IS SUPPLY CHAIN MANAGEMENT?

INFORMATION TECHNOLOGY'S ROLE IN THE SUPPLY CHAIN MANAGEMENT

• Visibility
• Consumer behaviour 
• Competition
• Speed

Seven Principle Of Supply Chain Management

Enabling the Organization - Decision Making ( Chapter 9 )

MAKING BUSINESS DECISION

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TONY ROBBINS - DECISION MAKING

THE FUTURE : ARTIFICIAL INTELLIGENCE

Artificial Intelligence (AI) simulates human thinking and behaviour such as the ability to reasons and learn. Intelligent systems are various commercial application of artificial intelligent. AI system increase the speed and consistency of decision making, solve problem with incomplete information and resolve complicated issues that cannot be solved by conventional computing.

NEURAL NETWORKS

A neural network, also called an artificial neural network, is category of AI that attempts to emulate the way the human brain works. Neural networks analyze large quantity of information to establish patterns and characteristics in situation where the logic or rules are unknow.

INTELLIGENT AGENTS

An intelligent agent is a special - purpose knowledge - based information system that accomplishes specific tasks on behalf of its users. Another application for intelligent agents is in environmental scanning and competitive intelligence.

Accessing Organizational Information - Data Warehouse ( Chapter 8 )

DATA WAREHOUSE FUNDAMENTALS

A data warehouse is a logical collection of information - gathered from many different operational databases - that supports business analysis activities and decision making task.

Model Of Typical Data Warehouse

The figure above shows the compiles information from internal databases or transactional / operational databases and external databases through extraction, transformation, and loading (ETL), which is a process that extracts information from internal and external databased information using a common set of enterprise definitions, and load the information into a data warehouse.

MULTIDIMENSONAL ANALYSIS AND DATA MINING

A cube is common term for the representation of multi dimensional information.

A Cube Of Information For Performing a Multidimensional Analysis On Three Different Stores, For Five Different Products And Four Different Promotions

Data Mining is the process of analyzing data to extract information not offered by the raw data alone.

BUSINESS INTELLIGENCE

Business Intelligent (BI) refers to application and technologies that are used to gather, provide access to and analyze data and information to support decision making efforts.

• Collecting information
• Discerning patterns and meaning in the information
• Responding to the resultant information.

ENABLING BUSINESS INTELLIGENCE

Competitive organization accumulate business intelligent to gain sustainable competitive advantage, and they may regard such intelligent as a valuable core competence in some instances.

• Technology
• People
• Culture