chapter 19: outsourcing in the 21st Century

 

assalamualikumm :) 

whoot whoot we now in the last chapter of Business IT

yeahhh !

okeyy chill ! what are this chapter all about ?

 chapter 19, or Outsourcing in the 21st Century are about outsourcing project.

1st, what is 21st century ?

wow ! 

okeyy then.. next what is outsourcing projects?

in this high-speed global business environment, an organization needs to maximize its profits, enlarge its market share, and restrain its ever-increasing costs.

two basic options are available to organizations wishing to develop and maintain their information system which is:

i- insourcing

ii- outsourcing

i- insourcing.

 Insourcing (in-house-development) – a common approach using the professional expertise within an organization to develop and maintain the organization's information technology systems 

ii- outsourcing.

Outsourcing – an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house

The three different forms of outsourcing option a project must consider are:

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

•         Nearshore outsourcing – contracting an outsourcing arrangement with a company in a nearby country

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

Factors driving outsourcing growth include:

             •         Core competencies

             •         Financial savings

             •         Rapid growth

             •         Industry changes

             •         The Internet
             •         Globalization

Outsourcing benefits include:

•    Increased quality and efficiency

•    Reduced operating expenses

•    Outsourcing non-core processe

•    Reduced exposure to risk

•    Economies of scale, expertise, and best practices

•    Access to advanced technologies

•    Increased flexibility

•    Avoid costly outlay of capital funds

•    Reduced headcount and associated overhead expense

•    Reduced time to market for products or services

Outsourcing challenges include:

•         Contract length

–     Difficulties in getting out of a contract

–     Problems in foreseeing future needs

–     Problems in reforming an internal IT department after the contract is finished

•         Competitive edge

•         Confidentiality

•         Scope definition

the end :)

thank you for reading my blog..

till we meet again in another chapter and another day

xoxo :D

Chapter 15: Creating Collaborative Partnerships

Hello buddies! Assalamulaikum J come on, we are almost at the finishing line. Let’s finish the chapter in just one breath..  *kidding*

Okay, to be short and simple, this chapter is about collaborative of two or more party/ companies/ sides/ etc.   

enjoy reading my post !

Collaboration system – supports the work of teams by facilitating the sharing and flow of information

•         Collaboration systems, such as groupware, enable, support, and facilitate internal and external team collaboration

•         This is a good time to mention the imporsoft tance of people skills, or soft skills, in additional to business knowledge.  Your students should anticipate working with many coworkers from different areas of the business when solving issues or finding opportunities.  Building skills is just as important as building analytical skills.  Successful people rarely work in isolation.

 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 processes

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

–     Information partnership – occurs when two or more organizations cooperate by integrating their IT systems, thereby providing customers with the best of what each can offer

–     The Internet has dramatically increased the ease and availability for IT-enabled organizational alliances and partnerships

 Collaboration solves specific business tasks such as telecommuting, online meetings, deploying applications, and remote project and sales management

 Collaboration system – an IT-based set of tools that supports the work of teams by facilitating the sharing and flow of information

  Two categories of collaboration

1.      Unstructured collaboration (information collaboration) - includes document exchange, shared whiteboards, discussion forums, and 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

    

    Reasons why organizations launch knowledge management programs

  Group ware technologies

•         Group ware – software that supports team interaction and dynamics including calendaring, scheduling, and video conferencing

Group ware advantages are 

that all for this chapter..

byeee !!

Chapter 14: Ebusiness

A business model is a plan that details how a company creates, delivers, and generates revenues. The majority of online business activities consist of the exchange of products and services either between businesses or between businesses and consumers. Ebusiness model consists of four categories which are:

1-      Business-to-business

2-      Business-to-consumer

3-      Consumer-to-business

4-   Consumer-to-consumer

The diagram below will simplify the Ebusiness model:

Chapter 12: Integrating the Organization from End to End – Enterprise Resource Planning

A success company must have a very organize system like SCM, CRM, and ERP. However what is it means by ERP as we already know about SCM and CRM in the previous topic.

ERP or Enterprise Resource Planning serves as the organization’s backbone in providing fundamental decision-making support. ERP system provides a foundation for collaboration between departments, enabling people in different business areas to communicate within an organization.

ERP Integration Data Flow

ERP Process Flow

The Evolution of ERP

Integration between SCM, CRM, and ERP Applications

xoxo :D

zulaiha alias :*

Chapter 11: Building a Customer-centric Organization – Customer Relationship management

Hello buddies! Assalamualaikum and a very good day to all of us J may Allah blessed our day and may today become an ease day for each of us J *thumbs up*

In this chapter I will share a about customer relationship management (CRM).

Before this we already learned a little bit about this chapter. Thus, to know more details about this chapter lets discover it with me ;)

Definition of CRM:

CRM is managing all aspects of customer’s relationship with an organization to increase customer loyalty and retention and organization’s profitability.

Evolution of CRM:

Operational and Analytical CRM:

The ugly side of CRM:

This is the example of ugly side of CRM which is negative feedback from customer that ruined the company’s name.  

That all for this Chapter ! 

SYS :)

Chapter 10: extending the organization – supply chain Management

Supply Chain Management in short is a system that an organization used to communicate with other company (suppliers or customers) in order to ease the flow in purchasing or selling ready or raw materials to other organization.

Basic of supply chain:

  Five Basic Supply Chain Management Activities:

Factor Driving Supply Chain Management:  

      

Supply Chain Planning and Supply Chain Execution: 

software’s Correlation to the Supply Chain:

3 Factor Fostering Supply Chain Speed:

i-                    Pleasing customers has become something of a corporate obsession. Serving the customer in the best, most efficient, and most effective manner has become critical, and information about issues such as order status, product availability, delivery schedules, and invoices has become a necessary part of the total customer service experience. 

ii-                  Information is crucial to managers’ abilities to reduce inventory and human resource requirements to a competitive level.

iii-                Information flows are essential to strategic planning for and deployment of resources.

7 Principle of Supply Chain Management:

i.            Segment customers by service needs, regardless of industry, and then tailor services to those particular segments.

ii.            Customize the logistics network and focus intensively on the service requirements and on the profitability of the preidentified customer segments.

iii.            Listen to signals of market demand and plan accordingly. Planning must span the entire chain to detect signals of changing demand.

iv.            Differentiate product closer to the customer, since companies can no longer afford to hold inventory to compensate for poor demand forecasting.

v.            Strategically manage sources of supply, by working with the key supplier to reduce overall costs of owning materials and services.

vi.            Develop a supply chain information technology strategy that supports different level of decision making and provides a clear view (visibility) of the flow of the products, services, and information.

vii.            Adopt performance evaluation measures that apply to every link in the supply chain and measure true profitability at every stage.

 Keys to Supply Chain Management (SCM) Success:

i-                    Make the sales to suppliers

ii-                  Wean employees off traditional business practices

iii-                Ensure the SCM system supports the organizational goals

iv-                Deploy in incremental phases and measure and communicate success

v-                  Be future oriented