CHAPTER 19: 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

            While, this picture below show the reasons companies outsorce

·         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 include:

–     Core competencies

–     Financial savings

–     Rapid growth

–     Industry changes

–     The Internet

–     Globalization

·         Most organizations outsource their non core business functions, such as payroll and IT

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OUTSOURCING BENEFITS

·         Outsourcing benefits include:

–     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

1.      Difficulties in getting out of a contract

2.      Problems in foreseeing future needs

3.      Problems in reforming an internal IT department after the contract is finished

–     Competitive edge

–     Confidentiality

–     Scope definition

CHAPTER 15: CREATING COLLABORATIVE PARTNERSHIPS

TEAMS, PARTNERSHIPS, AND ALLIANCES

·        

 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

·         Organizations form alliances and partnerships with other organizations based on their core competency

–     Core competency

–     Core competency strategy

COLLABRATION SYSTEM

–     Collaboration system – an IT-based set of tools that supports the work of teams by facilitating the sharing and flow of information

–     Two categories of collaboration

1.        Unstructured collaboration (information collaboration)

2.       Structured collaboration (process collaboration)

This figure below shows that collaborative system function

KNOWLEDGE MANAGEMENT SYSTEM

–     Knowledge management (KM) – involves capturing, classifying, evaluating, retrieving, and sharing information assets in a way that provides context for effective decisions and actions

EXPLICIT AND TACIT KNOWLEDGE

–     Intellectual and knowledge-based assets fall into two categories

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

2.       Tacit knowledge - knowledge contained in people’s heads

–     Reasons why organizations launch knowledge management programs

KM AND SOCIAL NETWORKING

·         Finding out how information flows through an organization

–      Social networking analysis (SNA) – a process of mapping a group’s contacts (whether personal or professional) to identify who knows whom and who works with whom

–      SNA provides a clear picture of how employees and divisions work together and can help identify key experts

CONTENT MANAGEMENT

·         Content management system (CMS) – provides tools to manage the creation, storage, editing, and publication of information in a collaborative environment

·         CMS marketplace includes:

–      Document management system (DMS)

–      Digital asset management system (DAM)

–     Web content management system (WCM)

·         Content management system vendor overview

GROUPWARE SYSTEM

·         The picture below show the groupware technologies.

·         Groupware – software that supports team interaction and dynamics including calendaring, scheduling, and videoconferencing

INSTANT MESSAGING

·         Instant messaging - type of communications service that enables someone to create a kind of private chat room with another individual to communicate in real-time over the Internet

The picture below shows the instant messaging application.

CHAPTER 14: EBUSINESS

 

E-BUSINESS

·         The Internet is a powerful channel that presents new opportunities for an organization to:

–      Touch customers

–      Enrich products and services with information

–      Reduce costs

·         How do e-commerce and e-business differ?

–      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

I want to share with you guys with a simple picture that show the industries using E-Business. Come take a look..

 

E-BUSINESS MODEL

·         E-business model – an approach to conducting electronic business on the Internet

                E-BUSINESS BENEFITS AND CHALLENGES

·         E-Business benefits include:

–      Highly accessible

–      Increased customer loyalty

–      Improved information content

–      Increased convenience

–      Increased global reach

–      Decreased cost

·         E-business challenges include:

–      Protecting consumers

–      Leveraging existing systems

–      Increasing liability

–      Providing security

–      Adhering to taxation rules

·         There are numerous advantages and limitations in e-business revenue models including:

–      Transaction fees

–      License fees

–      Subscription fees

–      Value-added fees

–      Advertising fees

MASHUPS

·         Web mashup - a Web site or Web application that uses content from more than one source to create a completely new service

–      Application programming interface (API) - a set of routines, protocols, and tools for building software applications

–      Mashup editor - WSYIWYGs (What You See Is What You Get) for mashups

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

       

DEFINITION :
- provides a foundation for collaboration between departments, enabling people in different business areas to   communication.
- the heart of an ERP systems is a central database that collects information from and feeds information into     all ERP system's individual application compenents.

ERP integration flow :

           

ERP process flow :

             

BRINGING THE ORGANIZATION TOGETHER

the organization before ERP 

                            

ERP - bringing the organization together

                          

THE EVOLUTION OF ERP :

                               

INTEGRATING SCM , CRM AND ERP

- those are the backbone of ebusiness

- these application is the key success for many companies.

- allows the unlocking information to any users, anywhere and anytime.

Primary users and business benefits of strategic initiatives

INTEGRATION TOOLS

Integrations between SCM,CRP and ERP applications

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

The definition of CRM 

- managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and organization's profitability.

The benefits of CRM 

- threat customers as individuals.

- gaining important insight into their buying preferences and shopping    behaviour

- using the RMF formulae to track their most valuable customers.

  which are, recency, frequency and monetary value.

The Evolution of CRM :-

Operational and Analytical CRM :-

                           

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 operation and strategic analysis including all systems that do not deal                             directly with the customers.

The Ugly Side of CRM