CHAPTER 15 : OUTSOURCING IN THE 21st CENTURY

OUTSOURCING DEVELOPMENT

•          Insourcing  (INTERNAL)– a common approach using the professional expertise within an organization to develop and maintain the organization's information technology systems

•          Outsourcing (EXTERNAL) – 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

·         Nearshore outsourcing – contracting an outsourcing arrangement with a company in a nearby country, often this country will share a border with a native country.

·         Offshore outsourcing – using organizations from developing countries to write code and develop systems.

•          Reasons companies outsource

•          Factors driving outsourcing growth include:

1.       Core competencies

2.       Rapid growth

3.       Industry changes

4.       The Internet

OUTSOURCING BENEFITS

·         Increased quality and efficiency of a process, service, or function

·         Reduced operating expenses

·         Resources focused on core profit-generating competencies

·         No costly outlay of capital funds

·         Reduced time to market for products or services

·         Reduced head count and associated overhead expenses

OUTSOURCING CHALLENGES

·         Contract length 

·         Competitive edge

·         Confidentiality

·         Scope definition 

CHAPTER 14 : CREATING COLLABORATIVE PARTNERSHIPS

TEAMS, PARTNERSHIP AND ALLIANCES

•          Organizations create and use teams, partnerships, and alliances to:

–      Undertake new initiatives

–      Address both minor and major problems

–      Capitalize on significant opportunities

•  

                                                                        

•          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 – 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

–      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

COLLABORATION SYSTEMS

•          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 e-mail

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

•          Collaborative business functions

•          Collaboration systems include:

1.       Knowledge management system 

2.       Content management system (CMS)

3.       Workflow management system

4.    Groupware 

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

Knowledge management system – supports the capturing and use of an organization’s “know-how”

•          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

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

            Reasons why organizations launch knowledge management programs

•          Knowledge management systems include:

§  Knowledge repositories (databases)

§  Expertise tools

§  E-learning applications

§  Discussion and chat technologies

§  Search and data mining tools

•          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

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)

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 allow 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 e-mail 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 system advantage

•          Groupware falls into two categories:

1.       Users of the groupware are working together at the same time or different times (time difference)

2.       Users are working together in the same place or in different places (physical location difference)

•          Videoconference -  is a set of interactive telecommunication technologies that allow two or more locations to interact via two-way video and audio transmissions simultaneously. It has also been called visual collaboration and is a type of groupware.

•          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 - 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

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 and e-business differ?

–      E-commerce – the buying and selling of goods and services over the Internet

–      E-commerce refers only to 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

–      E-business refers to online transactions, serving customers and collaborating with business partners

E-BUSINESS MODELS

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

Business types

Brick-and-mortar business - operates in a physical store without an Internet presence.

Pure-play (virtual) business - a business that operates on the Internet only without a physical store. Examples include Amazon.com and poplook.com.

Click-and-mortar business – a business that operates in a physical store and on the Internet.  Examples include Cala Qisya and Barnes and Noble.

E-BUSINESS BENEFITS AND CHALLENGE

•          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. A Web mashup is a Web site or Web application that uses content from more than one source to create a completely new service. The term is typically used in the context of music; putting Jay-Z lyrics over a Radioahead song makes something old become new. The Web version of a mashup allows users to mix map data, photos, video, news feeds, blog entries and so on.

–      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

ENTERPRISE RESOURCE PLANNING (ERP)

•          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

The Evolution of ERP

INTERGRATING 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, anytime

Integration Tools

•          Many companies purchase modules from an ERP vendor, an SCM vendor, and a CRM vendor and must integrate the different modules together

–      Middleware – several different types of software which sit in the middle of 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

Enterprise Resource Planning (ERP)

•          ERP systems must integrate various organization processes and be:

1. Flexible – must be able to quickly respond to the changing needs of the organization
2. Modular and open – must have an open system architecture, meaning that any module can be interface, with or detached whenever required without affecting the other modules.  Some organizations will begin with buying two modules, such as accounting and sales, and then will add modules, such as CRM and SCM, as they gain confidence in their current modules.  (Implementing in small pieces or phases – companies do not want to buy the entire ERP and spend years implementing twenty different modules to find that it doesn’t meet their need)
3. Comprehensive – must be able to support a variety of organizational functions for a wide range of businesses
4. Beyond the company – must support external partnerships and collaboration efforts

UBAT SAKIT HATI

Assalamualaikum ...

Sedih, kecewa, patah hati and end up kita akan menangis. Kan? Perasan paling susah nak pujuk bila kita tengah menangis sedih. Tipulah kalau aku cakap dgn pejam mata all things can back to normal. Really? Bohong. 

Tapi ada orang cakap cara paling mustajab untuk hilangkan rasa sedih sampai menitis air mata jernih milik jiwa itu, kita ambil wuduk & bukan akan stop semuanya sampai situ. No!

Tapi terus jumpa Tuhan. Luahkan semuanya yang terpendam. Tell him everythings that make you so upset the most, luah everything sampai lapisan organ hati paling dalam.  Sesungguhnya dialah pendengar yang terbaik.

Then,kau bawa jiwa dan pelbagai perasaan kau itu dengan baca kisah cinta dari kitab cinta milik tuhan, AlQuran. Perasaan kan akan back to normal if kau sungguh sungguh. Tapii itu terapi utk diri sendiri bila kita ada dalam situasi yang sedih kecewa terluka patah hati haa semua itulah.

Tapi macam mana pula dengan orang lain? Jujur aku tak boleh tengok orang menangis entah kenapa aku pun akan rasa sedih jugak even takda dalam situasi orang itu. Tapi paling deep bila orang yang sedih tu orang yang rapat dengan kita, family, kawan rapat. Aku punn taktahu nak deskripsi kan apa yang aku rasa actually tapi aku faham itu je cara nak luahkan semua yang mengguris hati kita. Sense kita sama. 

Even it just a small matter kita menangis bagai nak rak. 

Wallahi pasti ada tercalit rasa bersalah simpati dalam hati atau dah tak sanggup nak hadapi and tanggung masalah yang menghempap bahu. Air mata ni macam beban yang berlinangan untuk mencipta kelegaan. So that, just cry! If it will make you better.

Tapi berdoalah untuk kembali kuat. Sekali kau jatuh, bangun dua kali. Sekali jatuh, bangun.Dua kali kau jatuh, bangun lagi buat kali ketiga. ;) Bersangka baik pada Allah. 

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

At this chapter, we learned a more details about customer relationship management, why we need a good relation and how to implement it. 

CRM enables an organization to :

l Provide better customers service

l Make call centers more efficient

l Cross sell product more effectively

l Help sales staff close deals faster

l Simplify marketing and sales processes

l Discover new customers

l Increase customer revenues

Recency, Frequently, and Monetary value

- Organization can find their most valuable customers through “RFM”

1) Recency : how recently customer purchased items

2) Frequently : how frequent customer purchased items

3) Monetary value : how much a customer spends on each purchase 

The evolution of CRM 

- CRM reporting technology : help organizations identify their customers across other applications.

- CRM analysis technologies : help organizations segments their customers into categories.
-CRM predicting technologies : help organizations make predictions regarding customer behaviour. 

Using analytical CRM to enhance decisions

- Operational CRM : supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers.

- Analytical CRM : support back-office operations and strategic analysis and includes all systems that do not deal directly with the customers.

CRM success factors 

1) clearly communicate the CRM strategy

2) Define information needs and flows 

3) Build an integrated view of the customer

4) Implement in iterations

5) Scalability for organizational growth