Thursday, 10 March 2016

MGT300 Chapter 15: Outsourcing in the 21st Century

OUTSOURCING PROJECTS

  • In sourcing (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









  • Onshore outsourcing – engaging another company within the same country for services
  • Near shore 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






Big selling point for offshore outsourcing “inexpensive good work”


Factors driving outsourcing growth include;

  • Core competencies
  • Financial savings
  • Rapid growth
  • Industry changes
  • The Internet
  • Globalization

-According to Pricewater house Coopers “Businesses that outsource are growing faster, larger and more profitable than those that do not”
-Most organizations outsource their non core business functions, such as payroll and IT




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 


MGT300 Chapter 14– 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


Information partnerships with other organizations



Organizations from alliance and partnerships with other organizations based on their core competency

  • Core competency – An organization’s key strength, a business function that it does better than any of its competitors
  • Core competency strategy – Organization chooses to focus specifically on its core competency and forms partnerships with other organizations to handle nonstrategic business processes

Information technology can make a business partnership easier to establish and manage

  • 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 internet has dramatically increased the ease and availability for IT – enabled organizational alliance and partnerships


COLLABORATION SYSTEMS

  • Collaboration solves specific business tasks such as telecommuting, online meetings, deploying applications, and remote project and sales management
  • 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) – includes document exchange, shared whiteboards, discussion forums, and email.
2.       Structured collaboration (process collaboration) – involves shared participation in business processes such as workflow in which knowledge is hard-coded as rules


Collaborative business functions 




Collaboration systems include:-
  • Knowledge management systems
  • Content management systems
  • Workflow management systems
  • Groupware systems


KNOWLEDGE MANAGEMENT SYSTEMS
  • Knowledge management (KM) – involves capturing, classifying, evaluating, retrieving and sharing information assets in a way that provides context for effective decisions and actions
  • Knowledge management system – supports the capturing and use of an organization’s “know-how”


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

The following are two best practices for transferring or recreating tacit knowledge
1.       Shadowing – less experienced staff observe more experienced staff to learn how their more experienced counterparts approach their work
2.       Joint problem solving – a novice and expert work together on a project


Reasons why organizations launch knowledge management programs 




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 assets management system (DAM)
  • Web content management system (WCM)


WORKING WIKIS
  • Wikis – web-based tools that make it easy for users to add, remove, and change online content
  • Business wikis – collaborative web pages that allows 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
  • Workflow – defines all the steps or business rules, from beginning to end, required for a business process
  • Workflow management system – facilitates the automation and management of business processes and controls the movement of work through the business process
  • Messaging-based workflow system – sends work assignments through an email system
  • Database-based workflow system – stores documents in a central location and automatically asks the team members to access the document when it is their turn to edit the document


GROUPWARE SYSTEMS

Groupware technologies



  • Groupware – software that supports teams interaction and dynamics including calendaring, scheduling and videoconferencing 






WEB CONFERENCING
  • Web conferencing – blends audio, video and document-sharing technologies to create virtual meeting rooms where people “gather” at a password-protected website





VIDEOCONFERENCING
  • Video conference – A set of interactive telecommunication technologies that allow two or more locations to interact via two-way video and audio transmissions simultaneously 




 INSTANT MESSAGING
  • Email is the dominant form of collaboration application, but real-time collaboration tools like instant messaging are creating a new communication dynamic
  • Instant messaging – types 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
  • Instant messaging application 




Friday, 4 March 2016

MGT300 Chapter 13 - Creating Innovative Organization

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 (online transactions)
  • E-business – the conducting of business on the Internet including, not only buying and selling, but also serving customers and collaborating with business partners (online transactions, serving customers and collaborating with business partner)

Industries Using E-Business














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































Business-to-Business (B2B)

Electronic marketplace (e-marketplace) – interactive business communities providing a central market where multiple buyers and sellers can engage in e-business activities.




















Electronic marketplace (e-marketplace)
  • Electronic marketplaces, or e-marketplaces, 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 and sellers
  • Existing e-marketplaces allow access to various mechanisms in which to buy and sell almost anything, from services to direct materials


















Search Engine Marketing















Business-to-Consumer (B2C)

Common B2C e-business models include:
  • 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 – consists of a number of e-shops; it serves as a gateway through which a visitor can access other e-shops
e-shop
















e-mall

















Business types:

Brick-and-mortar business- operates in a physical store without an Internet presence. Eg: Bata.
Pure-play business- a business that operates on the Internet only without a physical store. Examples include fashionvalet.com. 
Click-and-mortar business– a business that operates in a physical store and on the Internet .Eg: Hijabs by Hanami

CarFax

















Amazon.com
















Consumer-to-Business (C2B)
  • Priceline.com is an example of a C2B e-business model
  • The demand for C2B e-business will increase over the next few years due to customer’s desire for greater convenience and lower prices
Priceline.com
















Agoda.com
















Consumer-to-Consumer (C2C)
Online auctions
  • Electronic auction (e-auction) - 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
C2C communities include:
  • Communities of interest - People interact with each other on specific topics, such as golfing and stamp collecting
  • Communities of relations - People come together to share certain life experiences, such as cancer patients, senior citizens, and car enthusiasts
  • Communities of fantasy - People participate in imaginary environments, such as fantasy football teams and playing one-on-one with Michael Jordan

E-Bay
















mudah.my















E-Business Benefits
E-Business benefits include:
  • Highly accessible-Businesses can operate 24 hours a day, 7 days a week, 365 days a year
  • Increased customer loyalty-Additional channels to contact, respond to, and access customers helps contribute to customer loyalty
  • Improved information content -In the past, customers had to order catalogs or travel to a physical facility before they could compare price and product attributes. Electronic catalogs and Web pages present customers with updated information in real-time about goods, services, and prices
  • Increased convenience-E-business automates and improves many of the activities that make up a buying experience
  • Increased global reach-Businesses, both small and large, can reach new markets
  • Decreased cost -The cost of conducting business on the Internet is substantially smaller than traditional forms of business communication
E-business challenges include:
  • Identifying Limited Market Segments-The main challenge of e-business is the lack of growth in some sectors due to product or service limitation.
  • Managing Consumer Trust-Internet marketers must develop a trustworthy relationship to make that initial sale and generate customer loyalty.
E-business challenges include:
  • Ensuring Consumer Protection-Implement Internet Security, protect from misuse of customer information.
  • Managing Consumer Trust-Companies that operate online must obey a patchwork of rules about which customers are subject to sales tax on their purchase and which are not.
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