CHAPTER 14: CREATING COLLABORATIVE PARTNERSHIP

TEAM,PARTNERSHIP AND ALLIANCES

• Organizations create and use teams, partnership 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 systems- supports the work of teams by facilitating the sharing and flow of information

• Organizations from alliances and partnership 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 non-strategic                             business processes

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

           ⇉Information partnership -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 alliances and partnership

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:

           ↳Unstructured collaboration (information collaboration)- includes document exchange,                      shared whiteboards, discussion forums and e-mail

           ↳Structured collaboration (process collaboration)- involves shared participation in business                 processes such as workflow in which knowledge is hardcoded as rules

• Collaboration system 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 decision 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:

         ⧭ 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 heads

• The following are two best practices for transferring or recreating tacit knowledge

       🔺 shadowing- less experienced staff observe more experienced staff to learn how                   their more experienced counterparts approach their work

       🔺Joint problem solving - a novice and expect work together on a project.

Shadowing – less experienced staff observe more experienced staff to learn how their more experienced counterparts approach their work

·         Joint problem solving – a novice and expert work together on a project

Ø  Reasons why organizations launch knowledge management programs

Ø  KM Technologies

Ø  Knowledge management systems include:

·         Knowledge repositories (databases)

·         Expertise tools

·         E-learning applications

·         Discussion and chat technologies

·         Search and data mining tools

Ø  KM and Social Networking

Ø  Finding out how information flows through an organization

Social Networking 

·         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

·         Social Networking

Ø  Content Management

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

Ø  CMS marketplace includes:

·         Document management system (DMS)

·         Digital asset management system (DAM)

·         Web content management system (WCM)

Document management system (DMS)

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

Digital asset management system (DAM)

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

Web content management system (WCM)

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

Ø  Content management system vendor overview

WORKING WIKIS

Ø  Wikis - Web-based tools that make it easy for users to add, remove, and change online content

Ø  Business wikis - collaborative Web pages that allow users to edit documents, share ideas, or monitor the status of a project

Ø  Business wikis

Ø  Workflow Management Systems

Ø  Work activities can be performed in series or in parallel that involves people and automated computer systems

Ø  Workflow – defines all the steps or business rules, from beginning to end, required for a business process

Ø  Workflow management system – facilitates the automation and management of business processes and controls the movement of work through the business process

Ø  Messaging-based workflow system – sends work assignments through an e-mail system

Ø  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

Ø  Groupware Systems

Ø  Groupware technologies

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

VIDEOCONFERENCING

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

WEB CONFERENCING

Ø  Web conferencing - blends audio, video, and document-sharing technologies to create virtual meeting rooms where people “gather” at a password-protected Web site.

INSTANT MESSAGING

Ø  E-mail is the dominant form of collaboration application, but real-time collaboration tools like instant messaging are creating a new communication dynamic

Ø  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

Ø  Instant messaging application

chapter 15 – Outsourcing in the 21st Century

chapter 15 – Outsourcing in the 21st Century

Outsourcing Project

• 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

• 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 PricewaterhouseCoopers “Businesses that outsource are growing faster, larger and more profitable than those that do not”
• Most organizations outsource their noncore 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

• Difficulties in getting out of a contract
• Problems in foreseeing future needs
• Problems in reforming an internal IT department after the contract is finishe

• Competitive edge
• Confidentiality
• Scope definition 

CHAPTER 13 : E-BUSINESS

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 & 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

-Industries using E-Business

E-BUSINESS MODELS

- E-BUSINESS MODEL = an approach to conducting electronic

                        business on the internet

BUSINESS-TO-BUSINESS (B2B)

• Electronic markerplace (e-market place) - interactive business communities providing a                                                                                central market where multiple buyers and                                                                                      sellers can engage in e-business activities

BUSINESS-TO-CONSUMER (B2C)

• 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-shop ; it serves as a getaway through which a visitor can                     access other e-shops
• Business type:

          - Brick-and-mortar business

          - Click-and-mortar business

          - Pure-play business

BUSINESS-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
• Online auctions

          - Electronic auction (e-auction) -sellers and buyer 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 sellers with the                                              lowest bids

CONSUMER-TO-CONSUMER (C2C)

• 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-BUSINESS BENEFITS AND CHALLENGES

• E-business benefits include :

         - Highly accessible

         - Increase  customers loyalty

         - Increase convenience 

• E-business challenges include :

          - Protecting consumers

          - Increasing liability

          - Providing security

• Numerous advantages & limitations in e-business revenue models including:

          - Transactions fees

          - License fees

          - Advertising fees

E-BUSINESS TOOLS FOR CONNECTING & COMMUNICATING 

• E-mail
• Podcasting 
• Web conferencing

MASHUPS

• Web mashup - a Web site or web application that use content from more  than one source to                              create a completely new service

          - Application programming interface (API) - a sets 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

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

•       At the heart of all ERP systems is a database, when a user enters or updates information in one module, it is immediately and automatically updated throughout the entire system.

- ERP Integration Data Flow

- ERP Process Flow

BRINGING THE ORGANIZATION TOGETHER

Information has traditionally been isolated within specific departments,

whether on an individual database, in a file cabinet or on an employee's PC

- The Organization before ERP

- ERP - Bringing the Organization Together

The Evolution Of ERP

INTEGRATING SCM, CRM, And 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. 

INTEGRATION TOOLS.

-Many companies purchase modules from ERP vendor,an SCM vendor

 and CRM vendor and must integrate the different modules together.

-MIDDLEWARE - several different types software which sit in middle 

                                     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. 

- Primary Users and Business Benefits of Strategic Initiatives

- Integrations between SCM, CRM, and ERP Applications

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

CUSTOMER RELATIONSHIP MANAGEMENT (SCM)

 

 

   Today, most competitors are simply a mouse-click away, and this intense competition is forcing firms to switch from sales-focused business strategies to customer-focused business strategies. Customers are one of a firm’s most valuable assets, and building strong loyal customer relationship is a key competitive advantage.
   CRM is means of managing all aspect of a customer’s relationship with a an organization to increase customer loyalty and retention and an organization’s profitability.

CRM enables an organization to :

• - Provide better customer service 
• - Make call centers more efficient 
• - Cross sell products more effectively 
• - Help sales staff close deals faster 
• - Simplify marketing and sale processes 
• - Discover new customers 
• - Increase customer revenues 

RECENCY, FREQUENCY, and MONETARY VALUE

Organizations can find their most valuable customers through “RFM” Recency, Frequency, Monetary value
• How recently a customer purchased items ( RECENCY )
• How frequently a customer purchased items ( FREQUENCY )
• How much a customer spends on each ( MONETARY VALUE )

 

THE EVOLUTION OF CRM 

• CRM  reporting technology – help organizations identify their customer across other applications
• CRM analysis technologies – help organizations segment their customers into categories such as best and worst customers
• CRM predicting technologies – help organizations make predictions regarding customer behavior such as which customers are at risk of leaving
Three phases in the evolution of CRM include reporting, analyzing and predicting 

THE UGLY SIDE OF CRM 

Identify the primary forces driving the explosive growth of customer relationship management: 

• The primary forces driving the explosive growth of CRM include Automation/ Productivity/ Efficiency, Competitive Advantage, Customer Demand / Requirements, Increase Revenues, Decrease Costs, Customer Support, Inventory Control, Accessibility 

CUSTOMER RELATIONSHIP MANAGEMENT’S EXPLOSIVE GROWTH 

Forecasts for CRM Spending ( in billions ) 

Compare operational and analytical customer relationship management:

• Operational CRM – supports traditional transaction processing for day-to-day font-office operations or systems that deal directly with the customers. For example, marketing, shipping.
• Analytical CRM – supports back office operations and strategic analysis and includes all systems that do not deal directly with the customers.
The primary difference between operational CRM and analytical CRM is the direct interaction between the organization and its customers

OPERATIONAL CRM AND ANALYTICAL CRM 

Define the relationship between decision making and analytical customer relationship management: 

• Analytical CRM solutions are designed to dig deep into a company’s historical customer information and expose patterns of behavior on which a company can capitalize. Analytical CRM is primarily used to enhance and support decision making and works by identifying patterns in customer information collected form the various operational CRM systems. 

CUSTOMER RELATIONSHIP MANAGEMNET SUCCESS FACTORS

- CRM success factors include:

• Clearly communicate the CRM strategy 
• Define information needs and flows 
• Build an integrated view of the customer 
• Implement in iterations- avoid big-bang approach 
• Scalability for organization growth