Questions:
2.) What type of global business and systems strategy did Nestle adopt?
Nestle adopted a transnational strategy which involved managing nearly all of its value-adding activities from a global perspective without reference to national borders, optimization of sources of supply and demand wherever they appear, and taking advantage of any local competitive advanatages. The globe not the home country is the management frame of reference. Nestle wanted to be the first global enterprise to conduct business as if it were operating in a single country. This meant that it had to choose one system and make all countries conform to that system no matter what local differences there might be and know matter what differences there were in the way they conducted day to day business.
3.) What management, organization, and technology challenges did Nestle have to deal with to standardize its business processes and systems?
Management challenges included convincing all of the market heads around the world to adopt one single set of business processes and systems for procurement, distribution , and sales management. All of the managers felt that their way of doing business was the right way and it was a challenge to get them all on board to give the new system a chance. As a whole organization it was challenging because up to that point each local organization had been allowed to run the business as it saw fit which took into account local conditions and cultures. Standardization of all of the company's systems completely changed the culture of the company. No longer was each global site its own autonomous unit, now everyone was expected to use the same system and do things the same way no matter what part of the world they resided in. The technological challenges that the company faced wsa that Nestle facilities in 14 countries all ran their ERP software differently and used different schemes for formating data and management forms. Also many of the company's core processes were not documented and were passed down by word of mouth. All of these processes needed to be documented so that the best way to run the business could be determined and all sites could use these core processes.
Sunday, June 8, 2008
Article Summary
GET A GRIP
Mary Hayes Weier
InformationWeek; Nov 5, 2007; 1161; ABI/INFORM Global
pg. 41
This article discusses offshore outsourcing and how that it is creating new risks and requiring new strategies to deal with those risks. The article opens with a description on how the CIO from Genworth Financial, a company that provides mortgage and life insurance has had to change his whole routine because of IT outsourcing. He now has to come into work extra early (between 6:00-6:30 A.M.) so that he can spend the first couple of hours of the day dealing with IT teams in India and Europe before the U.S. workday starts. In 10 years Gensworth went from outsourcing just a few IT projects to almost having half of all IT work done outside the U.S. This firm and other firms like it in the U.S. prefer to use the term "globalization" instead.
The article goes on to explain how the techniques for dealing with offshore IT employees and projects is now changing to deal with some of the challenges that come with the territory. For instance, firms that employee outsourcing of their IT functions are trying to have a closer relationship with the vendors that they are employing. This includes doing things like helping improve with employee retention and attempting to treat those problems more like their own inhouse problems. Companies are also trying to hold the providers more accountable for costs and outcomes and also are giving them more critical work. It appears that since more companies are relying on outsourcing as a way to cut costs there is also more of a need to make sure that the investment is really paying off and that means having more involvement in what is going on.
The article also mentions that even though cost cutting is still the main reason for outsourcing, some companies are also depending more on foreign markets for revenue growth. To become successful in those markets these companies are starting to put employees in those markets including IT. Companies are also looking for the latest skills and technology platforms which many see as coming out of India. The hardest lession that has been learned with all the outsourcing in the last decade was the hidden costs associated with it. To avoid these hidden cost companies are now creating outsourcing contracts based less on input andm ore on output (that is generating revenue from new products, meeting systems uptime requirements, ect).
The article ends by discussing the ongoing problem of retaining skilled outsourced employees. Many employees would get burned out at having to work night shifts just to please U.S. customers. Outsourcing companies are trying to change this and make the work environment better to help retain these employees.
This article relates back to what was discussed in the chapter on the challenges of implementing global information systems. It is important to make sure that the benefits outweigh the costs and that companies monitor these types of systems to make sure everything runs smoothly. It can be much harder to fix a problem that is occuring on the other side of the world once it has already happed but close monitoring and adjustments can keep a new global system running smoothly and make it remain profitable. I also have experience with outsourcing at my own company. Recently we began to outsource the production of some of the recombinant proteins that we make to India. This has helped to cut costs for the company but early on there were some challenges. For awhile production levels were much lower than normal as the new team got used to the proccesses. I think one important thing that helped improve the process was that some of the scientists from the India group came to our site for training and to meet everyone. It helped both the India site and our site transition faster to the new arrangement and since then production has been high with few problems.
Mary Hayes Weier
InformationWeek; Nov 5, 2007; 1161; ABI/INFORM Global
pg. 41
This article discusses offshore outsourcing and how that it is creating new risks and requiring new strategies to deal with those risks. The article opens with a description on how the CIO from Genworth Financial, a company that provides mortgage and life insurance has had to change his whole routine because of IT outsourcing. He now has to come into work extra early (between 6:00-6:30 A.M.) so that he can spend the first couple of hours of the day dealing with IT teams in India and Europe before the U.S. workday starts. In 10 years Gensworth went from outsourcing just a few IT projects to almost having half of all IT work done outside the U.S. This firm and other firms like it in the U.S. prefer to use the term "globalization" instead.
The article goes on to explain how the techniques for dealing with offshore IT employees and projects is now changing to deal with some of the challenges that come with the territory. For instance, firms that employee outsourcing of their IT functions are trying to have a closer relationship with the vendors that they are employing. This includes doing things like helping improve with employee retention and attempting to treat those problems more like their own inhouse problems. Companies are also trying to hold the providers more accountable for costs and outcomes and also are giving them more critical work. It appears that since more companies are relying on outsourcing as a way to cut costs there is also more of a need to make sure that the investment is really paying off and that means having more involvement in what is going on.
The article also mentions that even though cost cutting is still the main reason for outsourcing, some companies are also depending more on foreign markets for revenue growth. To become successful in those markets these companies are starting to put employees in those markets including IT. Companies are also looking for the latest skills and technology platforms which many see as coming out of India. The hardest lession that has been learned with all the outsourcing in the last decade was the hidden costs associated with it. To avoid these hidden cost companies are now creating outsourcing contracts based less on input andm ore on output (that is generating revenue from new products, meeting systems uptime requirements, ect).
The article ends by discussing the ongoing problem of retaining skilled outsourced employees. Many employees would get burned out at having to work night shifts just to please U.S. customers. Outsourcing companies are trying to change this and make the work environment better to help retain these employees.
This article relates back to what was discussed in the chapter on the challenges of implementing global information systems. It is important to make sure that the benefits outweigh the costs and that companies monitor these types of systems to make sure everything runs smoothly. It can be much harder to fix a problem that is occuring on the other side of the world once it has already happed but close monitoring and adjustments can keep a new global system running smoothly and make it remain profitable. I also have experience with outsourcing at my own company. Recently we began to outsource the production of some of the recombinant proteins that we make to India. This has helped to cut costs for the company but early on there were some challenges. For awhile production levels were much lower than normal as the new team got used to the proccesses. I think one important thing that helped improve the process was that some of the scientists from the India group came to our site for training and to meet everyone. It helped both the India site and our site transition faster to the new arrangement and since then production has been high with few problems.
Sunday, June 1, 2008
Chapter 13 Case Study
Can the U.S. Army Reserve Pay Soldiers Correctly?
2.) Diagram the Forward Compatible Payroll business process for paying Army reservists. How should this process be improved?
It was supposed to proved a temporary solution until a more complete systems solution could be implemented. It provided more automation for the change in pay that occurred when Army reservists were called to active duty. The pay administrator could use a web browser to review the orders in the system and then access and update the files in the personnel database without any duplicate entries occurring. The system still required a unit commander to approve and sign a hard copy of a mobilization order before the data was transferred to the payroll system so that soldiers could get payed. The problem was still do to human error that caused a lag in information to be updated and the update also was very slow because pay was constantly changing for these soldiers which added more complexity to the system. To improve the system more it will be important to make it even more automatic by getting rid of the need for manual approvals and limit the data entry so it only needs to happen once. Also add a way to check to make sure the data is entered correctly the first time to prevent errors.
3.) Describe the role of end users and technical specialists in analyzing the problem and developing a solution.
The end users are the pay administrators who enter the data and the commanders who approve the pay decisions as well as the soldiers who rely on these systems to get paid correctly. End users can analyze the process to see what parts are redundant or could be eliminated or streamlined to make it more efficient to reduce error and save on time. The technical specialists are the programmers and consultants that will be able to recommend, design and implement the right kind of information system that will solve the problems identified by the end users of the current system.
2.) Diagram the Forward Compatible Payroll business process for paying Army reservists. How should this process be improved?
It was supposed to proved a temporary solution until a more complete systems solution could be implemented. It provided more automation for the change in pay that occurred when Army reservists were called to active duty. The pay administrator could use a web browser to review the orders in the system and then access and update the files in the personnel database without any duplicate entries occurring. The system still required a unit commander to approve and sign a hard copy of a mobilization order before the data was transferred to the payroll system so that soldiers could get payed. The problem was still do to human error that caused a lag in information to be updated and the update also was very slow because pay was constantly changing for these soldiers which added more complexity to the system. To improve the system more it will be important to make it even more automatic by getting rid of the need for manual approvals and limit the data entry so it only needs to happen once. Also add a way to check to make sure the data is entered correctly the first time to prevent errors.
3.) Describe the role of end users and technical specialists in analyzing the problem and developing a solution.
The end users are the pay administrators who enter the data and the commanders who approve the pay decisions as well as the soldiers who rely on these systems to get paid correctly. End users can analyze the process to see what parts are redundant or could be eliminated or streamlined to make it more efficient to reduce error and save on time. The technical specialists are the programmers and consultants that will be able to recommend, design and implement the right kind of information system that will solve the problems identified by the end users of the current system.
Article Summary
Signed, Sealed and Indelible
Nicoe Vaughan-Spickers. Health Management Technology. Altlanta: Mar 2007. Vol. 28, Iss. 3; pg. 22, 3pgs
This article talks about a pharmaceutical company called Ferring Pharmaceuticals which identifies and develops products in the fields of urology, gynecology, fertility, gastroenterology, and endocrinology. It discusses how this company decided in 2004 to change from paper lab notebooks to an Electronic Lab Notebook (ELN). Lab notebooks are essential for creating what is called a " trail of evidence" that protects valuable intellectual property when new products are being developed by R&D groups in the life-science industry as well as other science-based industries. The information contained can contain the record on when a new invention was conceived as reduced to practice. This information is essential for patent protection and patent infringement cases.
The article begins by talking about how important it is in the healthcare, biotechnology, and pharmaceutical industries to bring new products to market more quickly. It greatly increases the opportunity for revenue and company growth. In order to do this these types of companies must constantly look for ways to streamline processes to allow research scientists to spend more time actually producing work and less time documenting their work. In doing this it is important to make sure that these processes continue to adhere to strict quality standards as many products made in these industries are regulated by governmental agencies like the FDA.
The article goes onto discuss how most companies in health care and pharmaceutical industries still rely on paper lab notebooks to protect intellectual property even though there are electronic software versions available. There are problems with paper lab notebooks which include illegible, incomplete or error filled notebooks that can make it impossible to repeat a key experiment. Also, often it can be extremely time consuming to find the right lab notebook since there can be dozens in a single lab. The reason companies have been hesitant to adopt an electronic version despite these issues is a perception that Intellectual Property protection can not be managed by electronic systems, in order to have this protection you need a signature and witness that can only be obtained by using a paper lab notebook.
Ferring Pharmaceuticals took the risk and switched to an ELN with very positive results. They believed by doing this that they would provide a way speed up information retrieval, make it easier to collaborate and share knowledge among its 100 scientists and different sites, and also to speed up documentation and data entry process. The company chose to use a digital time-stamp technology embedded in its Electronic Lab Notebooks so that the notebooks would be able to still be used for Intellectual Property protection. The software was called Surety's AbsoluteProof technology and it allowed for a unique timestamp token or seal to be generated for every electronic document produced in Ferring's ELN's. The timestamp or token was stored off site in a data center that was fully accessible, searchable and verifiable.
The system was easily implemented with a half-day specialized training for scientists. Scientists also had two week time frame to experiment with and test the ELN system before it was implemented. The user acceptance was high and the system has increased the efficiency of scientists by saving countless hours by getting rid of the manual process of documenting experiments in lab notebooks and having them signed and witnessed.
This article relates back to chapter 13 because it illustrates how a successful information system was designed and implemented. It also illustrates how important getting the end user involved is through training and input so that they will accept the new system once it is implemented. Also, it shows how a whole organization can change with the design and implementation of a new system. Ferring got rid of a completely outdated system and successfully implemented a new system that is still not widely accepted by the rest of the industry.
Sunday, May 18, 2008
Chapter 11 Case- Can Knowledge Systems Help Boeing Trounce Airbus?
Questions:
2.) What is the relationship of knowledge management to Boeing's business strategy? How is Boeing using knowledge management systems to execute its business model and business strategy?
Boeing's business strategy is based on the assumption that travelers prefer to fly non-stop from their home city to their destination. As such they are focusing on developing and selling smaller airliners that can fly quickly and cheaply. In order to design a plane that will allow the company to implement this strategy it has had to take advantage of knowledge management in order to build on the technology of its existing planes rather than starting from scratch. To do so it shifted from a "paper-intensive" production process to a computer one that allowed the 777 aircraft to be completely designed and produced by computer. By using software and computers Boeing was able to communicate effectively with all departments at the company cut down on design errors, and save time. Part of Boeing's strategy also involves using a new production process which outsources design and construction to cut down on costs. Boeing must use knowledge management systems to coordinate and collaborate with all of these different suppliars and design teams in order to efficiently implement this cost saving strategy. Boeing uses supply chain knowledge management software to allow Boeing's suppliars and contractors to have a larger role in the design and development of new planes. It also cuts costs by half.
4.) What role has knowledge management played in Airbus's business strategy and business performance?
Airbus's strategy is the opposite of Boeing's, it believes that as air travel expands there will be a growing need for jumbo jets to carry a larger amount of passangers without increasing airline costs. It appears that a lack of knowledge management may have been the cause of some of the drop in performance that has been seen recently. It has had to delay the delivery of its A380 jet to customers multiple times because of "electrical problems". The case mentions that the electrical systems are "highly integrated" which results in one problem creating problems in other areas of the plane. It seems like Airbus's inability to correct these type of problems may be due to a lack of good knowledge management systems. If it were able to implement software like Boeing did which helped reduce many of the design errors that it was seeing perhaps problems like this could be avoided or fixed at an early stage of product development so that it doesn't cause a delay in customer orders.
Article Summary
Reality, only better. The Economist. London: Dec. 8, 2007. Vol. 385, Iss. 8558; pg. 14
The article I chose for this week relates back to the Chapter 11 discussion on managing knowledge. The article talks about a fairly new technique called "augmented reality" or AR for short. Using this technology, the real world is "augmented" with text or graphics. The user puts on a pair of goggles similar to the virtual reality goggles discussed in the textbook and is able to see computer graphics or information (virtual images) in the real world. For instance in the picture at the left a mechanic is able to see colors and arrows overlaid over the top of the car's engine so that he knows what parts of the car to fix. This technology fits into the category of knowledge work systems discussed in chapter 11 of the text. Instead of just offering a virtual world, however, this technology allows the user to learn by doing or to make changes to a real world process as it is being done as new information is viewed. For instance, surgeans could use it so that they would not constantly have to look up and down from patient to equipment displays. Information would just be overlaid into a single field of vision. For use in battle it could relay tactical information to soldiers who are in the war zone or it could be used during military training. Soldiars could be told with virtual images like arrows where to patrol or retreat and symbols could mark locations of supplies or friendly forces like in a video game. AR could create virual targets for sodiars in combat training to shoot at that would be in a real world setting. AR is also being used by car companies like Volkswagon to speed up prototype construction by overlaying the instructions directly onto tools and prototype components in front of workers. AR is still in the early stages of development when compared to virtual reality. A lot of AR technology is expensive and fragile but it clearly has a lot of possible applications that will keep researchers furthering its development.
Sunday, May 11, 2008
Chapter 9 Case- Limited Brands Consolidates its Supply Chain Management
Questions:
2.) Describe the supply chain management problems encountered by Limited Brands in this case. What was their business impact?
The main problem had to do with all of the different companies that Limited Brands acquired over a short period of time. All of these different companies had a different information technology infrastructure which included sixty different systems with hundreds of different applications on a variety of platforms. Due to all these different systems it was very difficult to have supply chain information flow to different applications so that the entire supply chain could be coordinated. The business impact was a major traffic jam of 400 merchandise trailers at a distribution center that could only hold 150 trailers. The incident occurred because of poor communication between segments of the firm and poor planning. The result was a public relations nightmare and a loss of sales for the firm.
4.) How did Limited Brands solve these problems?
The company upgraded its supply chain and eliminated all the different systems being used by the various segments of the company. It used Tibco Software which is a leading vendor of enterprise application integration software. Tibco Software allowed there to be real-time communication between Limited Brands and its suppliers. It also provided a secure environment for document transfer, enhanced shipment tracking and order visibility, and put the company in a position to support future IT initiatives that could save on time and costs. Limited Brands now has all of its IT operations under one business segment instead of having separate IT infrastructures for each business.
2.) Describe the supply chain management problems encountered by Limited Brands in this case. What was their business impact?
The main problem had to do with all of the different companies that Limited Brands acquired over a short period of time. All of these different companies had a different information technology infrastructure which included sixty different systems with hundreds of different applications on a variety of platforms. Due to all these different systems it was very difficult to have supply chain information flow to different applications so that the entire supply chain could be coordinated. The business impact was a major traffic jam of 400 merchandise trailers at a distribution center that could only hold 150 trailers. The incident occurred because of poor communication between segments of the firm and poor planning. The result was a public relations nightmare and a loss of sales for the firm.
4.) How did Limited Brands solve these problems?
The company upgraded its supply chain and eliminated all the different systems being used by the various segments of the company. It used Tibco Software which is a leading vendor of enterprise application integration software. Tibco Software allowed there to be real-time communication between Limited Brands and its suppliers. It also provided a secure environment for document transfer, enhanced shipment tracking and order visibility, and put the company in a position to support future IT initiatives that could save on time and costs. Limited Brands now has all of its IT operations under one business segment instead of having separate IT infrastructures for each business.
Article Summary
Greeenemeier, L. The Products of Research. InformationWeek. Manhasset: May 10, 2004. Iss. 988; pg. 62, 3pgs.
The article I chose for this week is about Dyax Corp, a small company that at the time the article was written was only nine years old and was based in Cambridge, Mass. At the time it sold research on drug compounds and licensed biotech research tools to drug makers but wanted to transition from being a "behind the scenes player" in the drug industry to being an actual pharmaceutical company that develop and manufactures drugs. One of the reasons it was attempting this change was that it had identified a potential treatment for a rare life-threatening genetic disorder called hereditary agioedema. This disorder is characterised by attacks of swelling and inflammation that can strike without warning and at the time had no FDA approved treatment available. To successfully get a drug approved by the FDA, Dynax needed to change the way it operated its business and become more like biotech leaders like Amgen and Genentech.
The article goes on to talk about how Dyax intended to do just that by implementing a new IT strategy. The first part of that strategy was to overhaul its ERP system to ensure it would be able to handle all the new business functions of a drugmaker, along with tracking its testing programs for its new drug, meet FDA requirements, and eventually handle manufacturing the drug want it was approved. To handle all of this the company implemented Ross System Inc.'s iRenaiissance ERP system. This system replaced the old ERP software which was called Great Plains and would hopefully help the company with its transition. Dyax needed new software because the old ERP software did not have project-management capabilities that are needed to support the new business model. It also lacked an inventory tracking system which would be needed to document drug development and manufacturing processes for FDA approval.
The article also discusses how Dyax will continue to improve its business plan with IT investments. Some of these include a document-management system to aid clinical trial and regulatory affairs personal. The firm will also implement a company intranet and portal to provide a central area for storing information so that across the company people can access information without having to search for it on a server.
I think this article relates back to what was discussed in Chapter 9 with how enterprise applications can be used to improve and consoldiate business proccesses. In this example these software systems are being used to allow a firm to transition to a completely new type of business.
The article I chose for this week is about Dyax Corp, a small company that at the time the article was written was only nine years old and was based in Cambridge, Mass. At the time it sold research on drug compounds and licensed biotech research tools to drug makers but wanted to transition from being a "behind the scenes player" in the drug industry to being an actual pharmaceutical company that develop and manufactures drugs. One of the reasons it was attempting this change was that it had identified a potential treatment for a rare life-threatening genetic disorder called hereditary agioedema. This disorder is characterised by attacks of swelling and inflammation that can strike without warning and at the time had no FDA approved treatment available. To successfully get a drug approved by the FDA, Dynax needed to change the way it operated its business and become more like biotech leaders like Amgen and Genentech.
The article goes on to talk about how Dyax intended to do just that by implementing a new IT strategy. The first part of that strategy was to overhaul its ERP system to ensure it would be able to handle all the new business functions of a drugmaker, along with tracking its testing programs for its new drug, meet FDA requirements, and eventually handle manufacturing the drug want it was approved. To handle all of this the company implemented Ross System Inc.'s iRenaiissance ERP system. This system replaced the old ERP software which was called Great Plains and would hopefully help the company with its transition. Dyax needed new software because the old ERP software did not have project-management capabilities that are needed to support the new business model. It also lacked an inventory tracking system which would be needed to document drug development and manufacturing processes for FDA approval.
The article also discusses how Dyax will continue to improve its business plan with IT investments. Some of these include a document-management system to aid clinical trial and regulatory affairs personal. The firm will also implement a company intranet and portal to provide a central area for storing information so that across the company people can access information without having to search for it on a server.
I think this article relates back to what was discussed in Chapter 9 with how enterprise applications can be used to improve and consoldiate business proccesses. In this example these software systems are being used to allow a firm to transition to a completely new type of business.
Thursday, May 8, 2008
Malykhina, E. Laptop Lockdown. Wall Street & Technology. New York: Jun 2007. Vol. 25, Iss. 6; pg. 44.
The article that I chose has to do with securing information systems which was discussed in Chapter 8 of the textbook. Specifically, the article talks about laptop security which I feel is a growing issue as more sensitive information is being stored on company laptops. I mention in my e-portfolio my own personal story with laptop theft and there are many more that have been discussed in class and in the news recently. This article provides some options for securing laptops and preventing the precious information they often contain from falling into the wrong hands.
The first security measure discussed is Biometrics which is is a device such as a fingerprint reader that requires a specific biometric tag like a fingerprint to be used to log onto the laptop. There are laptops by Lenovo that include the fingerprint reader and software to authenticate the user. It is cost effective because it replaces passwords which can cost $100 per employee to replace a year. Another option put out by Bioscrypt is a USB pluggable 3-inch, 3-D face recognition camera that can autheticate users. It requires the user to undergo a digital face measurement.
Another security option discussed are Smart Card readers. These are used at my work for the laptops. In order to access the company network from home laptop users need a Smart Card to plug into their laptop. Advanced Smart Cards also allow multiple passwords to be stored and also one-time use passwords. Another important option is BIOS security which provides authentication with a password before being able to start the operating system. This is important because someone can't get to the information if they can't access the operating system. Finally encyption hardware and software is also discussed with the warning that encrypting everything can get very expensive and is still risky as the encryption keys can be stolen. Clearly a balance is needed between security but still having access to important information when it is needed.
Chapter 7 Case Study Google
2.) What are Google's sources of competitive advantage? How does it provide value to its users?
Google's primary source of competitive advantage is its IT infrastructure. It is able to use a large number of servers spread accross the world at a low cost by using a customized version of the linux operating system. It uses other customized systems as well that allow it to simplify processing and handle larg amounts of information as well as protect the information in case a server should fail. Google's competitive advantage also includes the fact that it is spending a significantly smaller amount of money then its competitors to provide its users with far superior services. Google's advertising program also offers a competitive advantage because the technology is able to match users with the ads that they are most likely to respond to. This has allowed Google to get 70% of all search advertising. Google also may have a competitive advantage over Microsoft by offering free web-based and linux-based word processor and spreadsheet software as well as other packages that might make it possible to bypass Microsoft products all together. Google's competitive advantages provide a lot of value to the user in the form of a superior search engine that deliver the information the user is looking for quickly and easily without the user having to search through irrelevant search results. It also pairs users with ads that the user might actually find relevant to their interests rather then just being anoying. Also, Google is offering a free alternative to Microsoft based software which up to this point has has a monopoly over word processing software.
5.) How successful do you think Google will be in the future?
I think Google will continue its growth trend and success into the future. All of its competitors in the search engine arena are very far behind and would have to spend a lot of money to catch up. Google meanwhile continues to come up with new products and areas to move into. It also has a very favorable image with the consumer, everyone users Google for searching and knows its the best out there. As Google comes out with new ideas and services people will use them because they believe in Google's reputation. Google is also taking on Microsoft and offering free software equivilant to Microsoft's Microsoft works. I think as it becomes more well known and people and businesses begin to use it could really threaten the Microsoft monopoly.
Google's primary source of competitive advantage is its IT infrastructure. It is able to use a large number of servers spread accross the world at a low cost by using a customized version of the linux operating system. It uses other customized systems as well that allow it to simplify processing and handle larg amounts of information as well as protect the information in case a server should fail. Google's competitive advantage also includes the fact that it is spending a significantly smaller amount of money then its competitors to provide its users with far superior services. Google's advertising program also offers a competitive advantage because the technology is able to match users with the ads that they are most likely to respond to. This has allowed Google to get 70% of all search advertising. Google also may have a competitive advantage over Microsoft by offering free web-based and linux-based word processor and spreadsheet software as well as other packages that might make it possible to bypass Microsoft products all together. Google's competitive advantages provide a lot of value to the user in the form of a superior search engine that deliver the information the user is looking for quickly and easily without the user having to search through irrelevant search results. It also pairs users with ads that the user might actually find relevant to their interests rather then just being anoying. Also, Google is offering a free alternative to Microsoft based software which up to this point has has a monopoly over word processing software.
5.) How successful do you think Google will be in the future?
I think Google will continue its growth trend and success into the future. All of its competitors in the search engine arena are very far behind and would have to spend a lot of money to catch up. Google meanwhile continues to come up with new products and areas to move into. It also has a very favorable image with the consumer, everyone users Google for searching and knows its the best out there. As Google comes out with new ideas and services people will use them because they believe in Google's reputation. Google is also taking on Microsoft and offering free software equivilant to Microsoft's Microsoft works. I think as it becomes more well known and people and businesses begin to use it could really threaten the Microsoft monopoly.
Sunday, April 20, 2008
Article Summary- Chapter 6
Wildstrom, Stephen H. From Apple: Organization Made Easy; Using the vocabulary of !Tunes, Bento makes the power of the database user-friendly. Business Week. New York: Feb. 18, 2008. , Iss. 4071; pg. 76
This article from Business Week discusses the importance of databases to the everyday consumer. Everyday we use databases to buy plane tickets, make online purchases, to pay our bills or get our paychecks and many other everyday essential tasks. The article mentions however useful these databases maybe in our daily lives there are very few individuals with the programming knowledge to create such databases on our own personal computers.
The article reports that FileMaker which is a part of Apple Inc. has come up with an application that will change all that. It created a $50 database called Bento for use on Mac computers. The firm took an existing data-base management program called FileMaker Pro which is used in small businesses and combined it with the Mac's new operating system. This new organization tool can be used at home to manage personal information like planning a birthday party or a simple project at work. Instead of using traditional database terminology, Bento mimics the database interface that most personal users are most familiar with, the ITunes library. It doesn't use the term database to describe a collection of data but rather calls such a collection a "library." The system maybe user friendly but it still has the advantages of a traditional database including data security, sophisticated searches, and filtering.
This type of database would be very useful for organizing personal data at home or small projects that are not complicated enough to need a regular database like FileMaker Pro. Unfortunately, right now it is only available for Mac computers. Hopefully the product will become popular just like !Tunes did and it will be offered in a version that is compatible with PCs. I think this article is very relevant to what was discussed in Chapter 6 of the textbook on the use of databases to improve business performance and decision making. I believe these same concepts hold true in our daily lives. We are constantly faced with decisions ranging from whether to buy a house to how to balance a family's busy school, work, and activity schedules. If there was a way to store all the important information we need to make decisions in our personal lives then we all might be able to use our limited time and resources more wisely.
This article from Business Week discusses the importance of databases to the everyday consumer. Everyday we use databases to buy plane tickets, make online purchases, to pay our bills or get our paychecks and many other everyday essential tasks. The article mentions however useful these databases maybe in our daily lives there are very few individuals with the programming knowledge to create such databases on our own personal computers.
The article reports that FileMaker which is a part of Apple Inc. has come up with an application that will change all that. It created a $50 database called Bento for use on Mac computers. The firm took an existing data-base management program called FileMaker Pro which is used in small businesses and combined it with the Mac's new operating system. This new organization tool can be used at home to manage personal information like planning a birthday party or a simple project at work. Instead of using traditional database terminology, Bento mimics the database interface that most personal users are most familiar with, the ITunes library. It doesn't use the term database to describe a collection of data but rather calls such a collection a "library." The system maybe user friendly but it still has the advantages of a traditional database including data security, sophisticated searches, and filtering.
This type of database would be very useful for organizing personal data at home or small projects that are not complicated enough to need a regular database like FileMaker Pro. Unfortunately, right now it is only available for Mac computers. Hopefully the product will become popular just like !Tunes did and it will be offered in a version that is compatible with PCs. I think this article is very relevant to what was discussed in Chapter 6 of the textbook on the use of databases to improve business performance and decision making. I believe these same concepts hold true in our daily lives. We are constantly faced with decisions ranging from whether to buy a house to how to balance a family's busy school, work, and activity schedules. If there was a way to store all the important information we need to make decisions in our personal lives then we all might be able to use our limited time and resources more wisely.
Chapter 5 Case- Merrill Lynch Connects Past and Future Technology
1.) Why did Merill Lynch need to update its IT infrastructure?
Merill Lynch needed to update its IT infrastructure in order to remain competitive. One of the most important ways to do so was to provide customers with Internet-based applications that provided them with up to date access to portfolios and the tools needed to work with those portfolios. There are many competitors in the financial management industry and if Merill Lynch cannot maintain its technological edge then those competitors will take advantage by offering a more user friendly web interface and variety of tools for customers to take advantage of. Merill Lynch also needed to consider its IBM mainframe and how to include it in the update of its IT infrastructure. The mainframe provided a strategic advantage in terms of processing power but did not have compatible software for implementing Internet-based applications that were needed to stay competitive.
4.) Do you think that Merill Lynch's decision to sell off its successful technology initiatives was a good idea? Why or why not?
I think that over the short term it was a good idea for Merill Lynch to sell of the technology. It gave the firm a large amount of money to re-invest in IT or other areas of the company and helped recoup some of the $1 billion in costs that the firm spent over a three year period to update the financial advisers' financial management applications. However, in the long-term it might leave Merill Lynch at a competitive disadvantage because now its competitors have access to this new IT infrastructure. The competition can now go to SOA Software and purchase the system for $125,000, which is a lot less then the $1 billion plus that Merill Lynch invested to develop and launch X4ML. If the competition is able to take advantage of the applications of this IT system in the same way that Merill Lynch did then Merill Lynch could loose its competitive advantage. Merill Lynch may have been better off licensing the technology to different companies, at lease then it would have had some control over whether competitors had access to the technology.
Merill Lynch needed to update its IT infrastructure in order to remain competitive. One of the most important ways to do so was to provide customers with Internet-based applications that provided them with up to date access to portfolios and the tools needed to work with those portfolios. There are many competitors in the financial management industry and if Merill Lynch cannot maintain its technological edge then those competitors will take advantage by offering a more user friendly web interface and variety of tools for customers to take advantage of. Merill Lynch also needed to consider its IBM mainframe and how to include it in the update of its IT infrastructure. The mainframe provided a strategic advantage in terms of processing power but did not have compatible software for implementing Internet-based applications that were needed to stay competitive.
4.) Do you think that Merill Lynch's decision to sell off its successful technology initiatives was a good idea? Why or why not?
I think that over the short term it was a good idea for Merill Lynch to sell of the technology. It gave the firm a large amount of money to re-invest in IT or other areas of the company and helped recoup some of the $1 billion in costs that the firm spent over a three year period to update the financial advisers' financial management applications. However, in the long-term it might leave Merill Lynch at a competitive disadvantage because now its competitors have access to this new IT infrastructure. The competition can now go to SOA Software and purchase the system for $125,000, which is a lot less then the $1 billion plus that Merill Lynch invested to develop and launch X4ML. If the competition is able to take advantage of the applications of this IT system in the same way that Merill Lynch did then Merill Lynch could loose its competitive advantage. Merill Lynch may have been better off licensing the technology to different companies, at lease then it would have had some control over whether competitors had access to the technology.
Sunday, April 13, 2008
Article Summary
Liang, H., et al. Assimilation of Enterprise Systems: The Effect of Institutional Pressures and the Mediating Role of Top Management. MIS Quarterly. Vol. 31 No. 1, pp. 59-87/ March 2007.
In the article from MIS Quarterly, the authors discussed how they developed a theoretical model that involved investigating how the top management of companies involved in implementation of enterprise resource planning (ERP) systems were able to interfere with external pressures which impact how much new ERP systems are actually used. These external pressures included pressure from suppliers, customers, competitors, professional networks and governmental agencies. The top management was said to be the "organization's primary human interface" when it comes to the external environment. The authors tested their hypothesis by obtaining survey data from different companies that had already implemented new ERP systems and then used a parital least squares analysis to determine how managers at those companies handled external pressures. The results of the study indicate that institutional forces strongly influenced the assimilation and use of ERP systems. The study concludes that it is important for top managers to facilitate ERP assimilation by giving into institutional pressures so that all features of ERP systems are integrated within the firms business processes.
The article relates back to what was discussed in chapter 3 regarding the interdependence of the business environment, the organization's culture, the business processes, business strategy and developing information systems like ERP systems. I think the opening case of that chapter on US Airways attempt to merge information systems and get rid of redundant systems ties back into the purpose of the article which is to illustrate that once the implementation phase is complete there is still much that needs to be done to ensure that a new information system improves the value of the firm. U.S. Airways was able to lower costs by consolidating information systems but will it be able to capitalize on those costs by winning the market share? It still faces external pressures from customers and competitors. If the new information system does not work for customers they will take their business elsewhere. Competitors with information systems already in place for some time have the advantage of experience while U.S. Airways is still adjusting to its new system.
My own experiences also relate back to what was discussed in the article. My company recently implemented a new ERP system and it took a very long time for everyone in the company to adjust and for productivity to get back to normal levels even after everyone was trained. Many people were hesitant to adapt to the new system, customers complained because orders were late or lost in the system, suppliers also had issues with getting raw materials into the new system and finally when the company was audited for ISO certification there was pressure from outside agencies to change the system to meet ISO standards. All of these pressures forced the workforce to use the ERP system and allowed it to be more fully integrated into everyday business. Management helped mediate this process by making changes in policy and procedures that allowed the external pressures to be alleviated.
In the article from MIS Quarterly, the authors discussed how they developed a theoretical model that involved investigating how the top management of companies involved in implementation of enterprise resource planning (ERP) systems were able to interfere with external pressures which impact how much new ERP systems are actually used. These external pressures included pressure from suppliers, customers, competitors, professional networks and governmental agencies. The top management was said to be the "organization's primary human interface" when it comes to the external environment. The authors tested their hypothesis by obtaining survey data from different companies that had already implemented new ERP systems and then used a parital least squares analysis to determine how managers at those companies handled external pressures. The results of the study indicate that institutional forces strongly influenced the assimilation and use of ERP systems. The study concludes that it is important for top managers to facilitate ERP assimilation by giving into institutional pressures so that all features of ERP systems are integrated within the firms business processes.
The article relates back to what was discussed in chapter 3 regarding the interdependence of the business environment, the organization's culture, the business processes, business strategy and developing information systems like ERP systems. I think the opening case of that chapter on US Airways attempt to merge information systems and get rid of redundant systems ties back into the purpose of the article which is to illustrate that once the implementation phase is complete there is still much that needs to be done to ensure that a new information system improves the value of the firm. U.S. Airways was able to lower costs by consolidating information systems but will it be able to capitalize on those costs by winning the market share? It still faces external pressures from customers and competitors. If the new information system does not work for customers they will take their business elsewhere. Competitors with information systems already in place for some time have the advantage of experience while U.S. Airways is still adjusting to its new system.
My own experiences also relate back to what was discussed in the article. My company recently implemented a new ERP system and it took a very long time for everyone in the company to adjust and for productivity to get back to normal levels even after everyone was trained. Many people were hesitant to adapt to the new system, customers complained because orders were late or lost in the system, suppliers also had issues with getting raw materials into the new system and finally when the company was audited for ISO certification there was pressure from outside agencies to change the system to meet ISO standards. All of these pressures forced the workforce to use the ERP system and allowed it to be more fully integrated into everyday business. Management helped mediate this process by making changes in policy and procedures that allowed the external pressures to be alleviated.
Chapter 4 Case Study
1.) Do the increased surveillance power and capability of the U.S. government present an ethical dilemma? Explain you answer.
Yes I do think that the surveillance power and capability of the U.S. government presents some ethical dilemmas. The government has the power to create the laws that protect privacy, but it seems that it also has the ability to create laws or agreements that are able to go around the privacy laws and obtain the private information it needs. On the surface it appears that the government is simply doing what is necessary to fight terrorism but it is doing it in a way that does not get the consent of the people it is attempting to protect. The dilemma that presents itself is how much power does the government have and what right does it have to use that power and in what circumstances? Also, do agencies such as the telecommunications firms Verizon and AT&T have an obligation to release private information when it is demanded by the government or should this information be safeguarded unless the correct judicial procedures are followed? The laws are in place to protect privacy rights and it still remains unclear about when it is alright to step around the law to get that information under certain circumstances.
2.) Apply ethical analysis to the issue of the U.S. government's use of telecommunications data to fight terrorism.
Identify and describe clearly the facts: Three of the four major telecommunications companies cooperated with the NSA fight against terrorism by turning over billions of phone records on phone calls made by billions of Americans. The records contain only phone numbers, and calling information (date, time, length of call).
Define the conflict or dilemma and identify the higher-order values involved: Conflict is that privacy groups feel that the program was a "massive intrusion on personal privacy" and was not legal while the White House feels it has the executive powers to take such actions to counter terrorism. The participating phone companies also feel that they must cooperate with law enforcement and government on matters of national security.
Identify the stakeholders: The stakeholders are private citizens, the telecommunications companies involved, the government and the NSA.
Identify the options you can reasonably take: Options include stricter privacy laws that force governmental agencies to provide a warrant or other validation before requesting private information. Or clearly spelling out the situations when the government has the right to obtain private information and what type of information it can obtain.
Identify the potential consequences: Government agencies will not be able to get the information they need to battle terrorism. Citizens will have their privacy violated because governmental agencies have access to too much private information.
5.) My opinion on the agreement reached by the White House and Senate Judiciary Committee with regards to NSA wiretapping is that the agreement gave too much power to the White House. Even though it is important for the president to have executive powers to fight terrorism I do think that the constitutional right to privacy should be protected and should still come first unless there are valid reasons for violating the right of an individual. I do not think that it is right to open all of the private information of all U.S. citizens to government scrutiny. Also, I think that the proper judicial process (i.e. getting a warrant) needs to be followed to obtain private information. The agreement is not an effective solution because it gives to much power to the White House to make decisions regarding privacy when it concerns surveillance programs. There needs to be more checks and balances in the process to make sure the power is not abused or over-used.
Yes I do think that the surveillance power and capability of the U.S. government presents some ethical dilemmas. The government has the power to create the laws that protect privacy, but it seems that it also has the ability to create laws or agreements that are able to go around the privacy laws and obtain the private information it needs. On the surface it appears that the government is simply doing what is necessary to fight terrorism but it is doing it in a way that does not get the consent of the people it is attempting to protect. The dilemma that presents itself is how much power does the government have and what right does it have to use that power and in what circumstances? Also, do agencies such as the telecommunications firms Verizon and AT&T have an obligation to release private information when it is demanded by the government or should this information be safeguarded unless the correct judicial procedures are followed? The laws are in place to protect privacy rights and it still remains unclear about when it is alright to step around the law to get that information under certain circumstances.
2.) Apply ethical analysis to the issue of the U.S. government's use of telecommunications data to fight terrorism.
Identify and describe clearly the facts: Three of the four major telecommunications companies cooperated with the NSA fight against terrorism by turning over billions of phone records on phone calls made by billions of Americans. The records contain only phone numbers, and calling information (date, time, length of call).
Define the conflict or dilemma and identify the higher-order values involved: Conflict is that privacy groups feel that the program was a "massive intrusion on personal privacy" and was not legal while the White House feels it has the executive powers to take such actions to counter terrorism. The participating phone companies also feel that they must cooperate with law enforcement and government on matters of national security.
Identify the stakeholders: The stakeholders are private citizens, the telecommunications companies involved, the government and the NSA.
Identify the options you can reasonably take: Options include stricter privacy laws that force governmental agencies to provide a warrant or other validation before requesting private information. Or clearly spelling out the situations when the government has the right to obtain private information and what type of information it can obtain.
Identify the potential consequences: Government agencies will not be able to get the information they need to battle terrorism. Citizens will have their privacy violated because governmental agencies have access to too much private information.
5.) My opinion on the agreement reached by the White House and Senate Judiciary Committee with regards to NSA wiretapping is that the agreement gave too much power to the White House. Even though it is important for the president to have executive powers to fight terrorism I do think that the constitutional right to privacy should be protected and should still come first unless there are valid reasons for violating the right of an individual. I do not think that it is right to open all of the private information of all U.S. citizens to government scrutiny. Also, I think that the proper judicial process (i.e. getting a warrant) needs to be followed to obtain private information. The agreement is not an effective solution because it gives to much power to the White House to make decisions regarding privacy when it concerns surveillance programs. There needs to be more checks and balances in the process to make sure the power is not abused or over-used.
Chapter 3
Chapter 3 Case Study: Blockbuster vs Netflix
1.) What is Blockbuster's business model? How successful has it been?
Blockbuster's business model began with establishing itself as the market leader in video and DVD rentals which it did by 2004 when it had 40% of the market share. Unfortunately, the threat of a new entrant, Netflix, forced Blockbuster to re-engineer its business model by adding a monthly subscription service similar to what Netflix was offering. Blockbuster created a separte business for its online services and attempted to re-capture the market lost to Netflix by using a cost leadership strategy. Blockbuster offered lower prices for its monthly subscription then Netflix. Blockbuster also tried to differentiate itself from Netflix by also trying to get customers to use its physical rental stores by offering coupons for free rentals and offering no more late fees giving customers both the option of instore and online rentals
Blockbuster's new business model to try to regain the market share lost to Netflix has not been very successful. Because Blockbuster entered the online movie rental market late, Netflix already had a large customer base and has built on it, Blockbuster has been unable to catch up. Also, it is suffering do to the costs of implementing its new business model. It lost the $250-300 million in revenue it used to receive for charging late fees.
2.) What industry and technology forces have challenged that business model? What problems have they created?
Blockbuster's old business model of being an established leader in video store rentals was challenged by a new entrant into the market, Netflix which had a completely new business strategy of online movie rentals. Blockbuster had to deal with the cost of implementing new technology so that it could also enter the online rental market. It lacked the experience with the technology that Netflix had so it did not offer as good a user interface which resulted in less cusotmers. Also, it had to deal with customers that were loyal to Netflix because of its good customer service and low prices.
Blockbuster faces lower revenues in its traditional brick and morter video stores as customer turn to the convenience of online rentals. It faces stiff competition from Netflix which was a pioneer of this new business model and still holds the marketshare. Blockbuster most still deal with the increase in costs of implementing a completely new technology and the challenges off using the technology in the most productive way to win customers back. It has to deal with its lack of experience in the industry which makes Netflix more desirable to customers seeking both low prices and good customer service.
How successful is Netflix and its business model?
Netflix was very successful because it was able to enter the market early and become the leader in this new emerging industry. Even though competitors like Blockbuster tried to copy its strategy it was still able to grow its customer base to over 3 million by leveraging its experience in the industry. Even though Blockbuster may have offered lower prices, Netflix offered better selection and a better customer interface which allowed it to maintain the market share. It now must deal with new entrants with video on demand which is a new emerging technology that makes it even more convenient for customers to rent movies.
1.) What is Blockbuster's business model? How successful has it been?
Blockbuster's business model began with establishing itself as the market leader in video and DVD rentals which it did by 2004 when it had 40% of the market share. Unfortunately, the threat of a new entrant, Netflix, forced Blockbuster to re-engineer its business model by adding a monthly subscription service similar to what Netflix was offering. Blockbuster created a separte business for its online services and attempted to re-capture the market lost to Netflix by using a cost leadership strategy. Blockbuster offered lower prices for its monthly subscription then Netflix. Blockbuster also tried to differentiate itself from Netflix by also trying to get customers to use its physical rental stores by offering coupons for free rentals and offering no more late fees giving customers both the option of instore and online rentals
Blockbuster's new business model to try to regain the market share lost to Netflix has not been very successful. Because Blockbuster entered the online movie rental market late, Netflix already had a large customer base and has built on it, Blockbuster has been unable to catch up. Also, it is suffering do to the costs of implementing its new business model. It lost the $250-300 million in revenue it used to receive for charging late fees.
2.) What industry and technology forces have challenged that business model? What problems have they created?
Blockbuster's old business model of being an established leader in video store rentals was challenged by a new entrant into the market, Netflix which had a completely new business strategy of online movie rentals. Blockbuster had to deal with the cost of implementing new technology so that it could also enter the online rental market. It lacked the experience with the technology that Netflix had so it did not offer as good a user interface which resulted in less cusotmers. Also, it had to deal with customers that were loyal to Netflix because of its good customer service and low prices.
Blockbuster faces lower revenues in its traditional brick and morter video stores as customer turn to the convenience of online rentals. It faces stiff competition from Netflix which was a pioneer of this new business model and still holds the marketshare. Blockbuster most still deal with the increase in costs of implementing a completely new technology and the challenges off using the technology in the most productive way to win customers back. It has to deal with its lack of experience in the industry which makes Netflix more desirable to customers seeking both low prices and good customer service.
How successful is Netflix and its business model?
Netflix was very successful because it was able to enter the market early and become the leader in this new emerging industry. Even though competitors like Blockbuster tried to copy its strategy it was still able to grow its customer base to over 3 million by leveraging its experience in the industry. Even though Blockbuster may have offered lower prices, Netflix offered better selection and a better customer interface which allowed it to maintain the market share. It now must deal with new entrants with video on demand which is a new emerging technology that makes it even more convenient for customers to rent movies.
Tuesday, April 8, 2008
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