Function
* Enabler of E-Business
* Change Agent
* Enabler of Globalization
Function of IT – Enabler of E-Business
* Disintermediation
Elimination ( by the online beginnings ) of the traditional jobber the mediator between the marketer and the purchaser ( such as an agent. agent. or reseller ) . or between the beginning and the receiver of information ( such as an bureau. functionary. or gate keeper ) . * Reintermediation
Re-emergence of the traditional jobber the mediator in new signifiers. For illustration. portals such as PetroChemNet bring purchasers. Sellerss. bargainers. and distributers of chemicals together. and mediate as sure third-parties between parties that are entire aliens to one another. * Hypermediation
* Infomediation
Function of IT – Change Agent
* Dynamic Stability
* Enable/inhibit incremental and extremist alterations
Function of IT – Enabler of Globalization
* Expands concern presence beyond boundary lines
* IT care of Infrastructure and Technologies
Consequence of IT on competition
* Michael Porter’s industry and competitory analysis model: 1 ) Industry Rivalry. 2 ) Potential New Entrant. 3 ) Threats of Substitute Products or Services. 4 ) Dickering Power of Supplier. 5 ) Dickering Power of Buyers * Build barriers to entry [ P. 72 ]
* Switch overing costs [ P. 74 ]* Change the footing of competition. e. g. transformed concern scheme [ P. 68 ] * Change the balance of power in supplier relationships [ P. 70 ] * Generate new merchandises [ P. 75 ]
Consequence of IT on Productivity
* Tangible V intangible benefits
* Service V fabrication subdivisions
* Alignment of IT to strategic ends
Consequence of IT on Business Performance [ P. 108 ]* Drive cost nest eggs [ P. 106 ]* Revenue growing [ P. 109 ]* Asset efficiency [ P. 112 ]
Types of Business Information Systems
* Transaction Processing Systems
* Management Information Systems
* Decision Support Systems
* Enterprise Resources Systems
* E-commerce Systems
* Expert Systems
2. Cisco Case Study
( Implementation method. possible jobs. successful factors )
Problems
* No redundancy. dependability. maintainability
* Decentralization tendency
* Expected company growing
Questions in implementing new system
* How should ERP determination be made?
* How should we setup-up the ERP execution squad?
* How should we choose ERP seller
* How should we implement ERP?
* How do we cut over to ERP?
* What should we make after execution?
* Following measure?
Obstacles
* Initial “No modification” scheme { 4. Management of IT Change } * Undersized proficient architecture
* Immature package
* Poor proving scheme
Success Factors
* Put best people on squad
* “Can-Do” squad attitude
* Well communicated top direction committedness
* Middle direction committedness
* High precedence in company
* Rapid. iterative paradigm to construct cognition
* Purchase equipment on ‘promised capability’
* Tight controls on proposed alterations
* Strong seller confederations
* ‘Seasoned’ . experienced confer withing support
3. Forming IT Function
( IT substructure. the constituents. impacts. organisation construction. leading type )
IT substructure
* Current: Internetwork-Based Calculating
* Moore’s Law
* Metcalf’s Law
Components of Internetworked Infrastructure [ P. 240 – 250 ]* Processing Systems
* Network
* Facilities
* Key direction issues
Business Deductions of Internetworks [ P. 252 – 256 ]* Real-time substructures
* New theoretical account of service bringing
* Broader exposure to operational menaces
* Pull offing bequests
Impact of Internetworked Infrastructure on Organization Design * hierarchal controls – & gt ; flattened
* promotes flexibleness. creativeness and acquisition
* Eliminate beds of direction
* Ensure cross-functional. inter-organizational information usage
Leadership of the IT Function [ P. 423 – 427 ]* Support
* Factory
* Turnaround
* Strategic
4. Management of IT Change
( Aspects to see for an IT alteration. troubles and declarations. errors to avoid ) { 2. Cisco instance }
Pull offing Change Through IT
1. Dissolving
* Motivation for alteration
* Hindrances
* 5 stages of positive rhythms
* Negative response to alter
2. Change
* Chiseled aim
* Communication
* Plan
* Stakeholder direction
* Plan for opposition to alter
* **High acting squads
3. Refreezing
* Institutionalize alteration
* Overcome lingering opposition to alter
Others
* 80/20 regulations
* Mistakes in pull offing alteration
5. World Bank: Enabling Business and IT Strategies
( Business-IT alliance. planning activities. competitory advantage )
Planing
* Strategic readyings – Technical
* IT substructure
* Networks of connectivity
* Information architecture
* Business procedure redesign/reengineering
* Control costs/expenditures
* Performance rating
* Strategic readyings – Managerial
* Organization re-structuring / redesign
* The function of IT
* Change Management
Business-IT alliance. Strategy planning activities
1. Obtaining champion/sponsor
2. Forming the squad
3. Describing the ‘as-is’ province. ‘to-be’ province
4. SWOT Analysis
5. Porter industry profitableness analysis { 1. IT Management: IT Role. Effect and Types } 6. Ansoff product-market analysis
7. Execution program
8. Periodic reappraisal
Alignment success sum-up
Can IT make competitory advantage { 1. IT Management: IT Role. Effect and Types } * Cost decrease
* Operational effectivity
* Customer satisfaction
* New ways to leverage IT
* Potential benefits to mine
Cloud calculating
* Features
* Types: Public. community. private. loanblend
* Service Types: SaaS. PaaS. IaaS
* Barriers: security. hold. handiness ; SLA. concern theoretical account. locking in clients
6. Electronic Commerce
( Business Types. Single market categorization )
1. Different concern types
2. Beginnings and Growth of E-commerce
3. Technology Infrastructure { 3. Forming IT Function }
4. The Internet: Technology Background: Transmission control protocol/internet protocol
5. Internet II: The Future Infrastructure
Traditional Business and E-commerce
Winner-Take-All Category ( Single market )
* The market is a natural monopoly – the minimal efficient graduated table of a firm’s operation sxceed the mature market’s size. or ;
*All of the following
* Network effects are strong and positive
* Cross-side web effects
* Same-side web effects
* Multi-homing costs are high
* Network user demand for differentiated platform functionality is limited
7. Citibank: eBusiness Strategy and Investment
( Internet for eBusiness scheme )
Reasons
* Customers: e-Enabled. looked for efficient and streamlined payment procedure
* B2B: market demands changed. payment migrate to the Internet
* Competition: Bank being disintermediated
Strategy Justification
* Align with mission/vision { 5. World Bank: Enabling Business and IT Strategies }
* How to convey in values?
* Can Internet advantage last long: Imitation. Inertia. Suboptimization. alteration of the game
How the Internet transforms scheme
* Transaction costs
* Differentiation
* Focus
* Deconstruction of concern construction
* De-averaging competitory advantage
Competitive advantage { 5. World Bank: Enabling Business and IT Strategies }
* Transaction cost decrease
* Operational effectivity non advantage because of imitation
* Strategic placement
Implement C-T-E scheme
1. Organization of e-Business construction { ref Cisco instance }
2. Execution schemes of C-T-E
* Regionalization
* Internalizing the web
* Straight-through mechanization
Execution Issues ( Difficulties )
* Management of the new concern units
* Integration of e-strategy to the bank’s bequest
* Instillation of an e-culture across Citibank to believe in a like-minded manner
* Preparation of direction for the apprehension and support of ebusiness
Maximize the eBusiness benefits ( Next )
* Cardinal benefits: cost nest eggs. operational efficiency. client satisfaction
* Potential benefits to mine: more client satisfaction. new merchandises – cross merchandising. informations excavation
8. Amazon
( Disruptive Innovations. valuing concern investings )
Disruptive Inventions
Four-step scheme for riotous engineering ( Planing )
1. Determine whether the engineering is riotous or prolonging 2. Specify the strategic significance of the riotous engineering 3. Locate the initial market for the riotous engineering 4. House the riotous engineering in an independent entity
Business theoretical account
* Diversification
* Business Model Evolution: Enhance. Extend. Expand. Exit * Significant substructure investings { californium. 5. cloud computer science }
Valuing e-Business Investings
* Financial assessment methods
* Payback period
* Net nowadays value
* Average rate of return/Return on Investing
* Internal rate of return
Inappropriate for e-businesses
Localization Scheme
Samsung’s illustration
* Charity
* Localization
* Education
9. IT Outsourcing [ P. 302 – 310 ]( outsourcing considerations )
Outsourcing aureate regulations
* Low cost
* Not core concern
* ( Strategic partnering )
Cost analysis
* Vendor hunt and catching
* Transitioning to the seller
* Pull offing the attempts
* Transitioning after outsourcing
* Outsourcing ratio & A ; Overhead ratio
Core Business Analysis
Outsourcing Benefits ( from Bharti’s instance )
* Focus on nucleus countries of merchandise invention. value added services. selling. stigmatization and pricing
* Do non hold to keep extra capacity
* Rapid growing is possible
* Risk diversified by affecting different sellers
Outsourcing Contract
* Performance: KPI. flexible. updating
* Incentives: wagess & A ; penalties…
Administration: trust but verify. monitoring. updating. struggle declaration. issue triggers
Decentralize
[ P. 83 ]We want to be planetary and local. large and little. and radically decentralized with centralised coverage and control. If we resolve those contradictions. we create existent competitory advantage. ” [ P. 85 ]
The personal computer revolution of the 1980s provided tools to deconcentrate information processing-which helped better local determination making-but the engineering to back up both local and enterprisewide information sharing and communicating was unequal. [ P. 93 ]
During the 1980s and 1990s. the solution adopted by many executives was to deconcentrate determination doing to progressively more focussed and independent net income centres or “self-managing squads. ” In so making. determinations could be made more rapidly. but the cost of coordination and control increased and determinations made by local employees and squads frequently failed to see the overall ends of the company. [ P. 251 ]
Interne/working Technologies Are Decentralized
Largely due to their Defense Department heritage. which dictated that computing machine net- plants contain no individual points of failure. internetworks have no cardinal traffic control point. Computers connected to the web do non necessitate to be defined to a cardinal control authorization. as is the instance with some networking engineerings. [ P. 434 ]
Decentralizing the direction of development undertakings and IT dcvelopment professionals to concern divisions can aline the development of new IT applications more rapidly and efficaciously with the demands of senior divisional direction. Standardization
[ P. 265 ]Standardization and engineering progresss permit specialisation by single houses in value ironss. ensuing in economic systems of graduated table and higher service degrees. [ P. 431 ]Standardization of calculating substructure besides pays dividends by cut downing the complexness and cost of keeping a firm’s IT capabilities. Simplification [ P. 216 ]This ICT standardisation and concern procedure simplification would efficaciously ease the acquisition procedure and enable faster and smoother integrating into the DSM organisation. A cardinal effect of the carve-out stratcgy was the realisation by the concern units that standardisation on the SAP endeavor system platform ( e. g. . work processes. information criterions. describing templets ) was a critical measure towards operational simplification and efficiency. [ P. 433 ]A centralised policy-based attack to both practical and physical resources besides can foster the simplification. standardisation. consolidation. and integrating of IT services in common usage across concerns and parts. At the same clip. the ability to easy recycle and reconfigure [ T capablenesss and assets provides a robust but nimble substructure platform for rapid hereafter concern growing.
Consolidation
[ P. 139 ]In the planetary contraption industry. for case. rivals including Electrolux. General Electric. and Whirlpool have been squeezed by the consolidation of retail channels ( the diminution of contraption forte shops. for case. and the rise of big-box retail merchants like Best Buy and Home Depot in the United States ) . Another illustration is travel agents. who depend on air hoses as a cardinal provider. When the Internet allowed air hoses to sell tickets straight to clients. this significantly increased their power to dicker down agents’ committees.
Centralization
[ P. 433 ]Similarly. centralisation of informations direction ensures coordination and synchronism of amalgamate or physically distributed databases. so that concern users. regardless of their location. can entree informations as needed.
Value Chain
