Monday, January 25, 2016

CHAPTER 5 : ORGANIZATIONAL STRUCTURES THAT SUPPORT STRATEGIC INITIATIVES

Organizational Structure


Organizational employees must work closely together to develop strategic initiatives that
 create competitive advantages.
Ethics and security are two fundamental building blocks that organizations must base their
 businesses upon.

IT Roles and Responsibilities


Information technology is a relatively new function area, having only been around formally 
for around 40 years.
Recent IT-related strategic positions :
Chief Information Officer (CIO)
Chief Technology Officer (CTO)
Chief Security Officer (CSO)
Chief Privacy Officer (CPO)
Chief Knowledge (CKO)


Chief Information Officer (CIO)
- oversees all uses of IT and ensures the strategic alignment of IT with business goals and 
objectives
- Broad CIO functions include :
*Manager
ensuring the delivery of all IT projects, on time and within budget.
*Leader
ensuring the strategic vision of IT is in line with the strategic vision 
of the organization.
*Communicator
building and maintaining strong executive relationships.
If they have any problem involve IT personal, CIO that will solve it.
 (more effectiveness)



Chief Technology Officer (CTO)
- responsible for ensuring the throughput, speed, accuracy, availability, and reliability of IT.
- effectiveness because make sure the system is efficient.

Chief Security Officer (CSO)
- responsible for ensuring the security of IT systems.
- to make sure the system we do, no person can hack.

Chief Privacy Officer (CPO)
- responsible for ensuring the ethical and legal use of information


Chief Knowledge Office (CKO)
- responsible for collecting, maintaining, and distributing the organization's knowledge.


ORGANIZATIONAL FUNDAMENTALS
- Ethics and security are two fundamental building blocks that organizations must base their 
businesses on to be successful.
In recent years, such events as the Enron and Martha Stewart, along with 9/11 have shed new light on the meaning of ethics and security.


 
  • Ethics

- the principles and standards that guide our behavior toward other people

  • Privacy

- the right to be left alone when you want to be, to have control over your own personal 
possessions, and not to be observed without your consent. sometimes, we fell want to alone. don't want anyone bother we don't want someone to corrupt our business.


  • Issues affected by technology advances

- intellectual property.
intangible creative work that is embodied in physical form. for example, from idea to 
something we can hold. 
create new things. so, there is intellectual property, can touch.
things that comes from a creative idea.
such as architects, building that we can touch.
  • copyright

- the legal protection afforded an expression of an idea, such as a song, video, game, 
and some types of proprietary documents.
  • fair use doctrine

- in certain situations, it is legal to use copyrighted materials. for example song from 
oversea to Malaysia.
  • pirated software

- the unauthorized use, duplication, distribution, or sale of copyrighted software. 
more cheap and free.
  • counterfeit software

- software that is manufactured to look like the real thing and sold as such. for example, 
buy antivirus, notify original but not original. 


*One of the main ingredients in trust is privacy. the system is effective because customer will be satisfied but efficiency because the system can be slow.

  • Security

organizational information is intellectual capital - it must be protected.
  • Information security

the protection of information from accidental or intentional misuse by persons inside or 
outside an organization.

- the CSO who save the information.
- E-business automatically creates tremendous information 
- security risks for organizations. 

Wednesday, January 13, 2016

CHAPTER 4 - MEASURING THE SUCCESS OF STRATEGIC INITIATIVES

Measuring Information Technology's Success

- Key performance indicator (KPI) measure that are tied to business drivers.

- Metrics are detailed measure that feed KPI.


Efficiency and Effectiveness

* Efficiency : Measure the performance of the IT systems. ( Doing things right) 
* Effectiveness : Measure the impact. ( Doing the right things) 


Benchmarking - Baselining Metrics 

- a process measuring, comparing, identifying to improve systems performance. 


Efficiency IT Metrics
- Throughput
- Transaction speed
- Systems availability 
- Information accuracy 
- Web traffic 
- Response time

Effectiveness  IT Metrics
- Usability
- Customer satisfaction 
- Conversion rates
- Financial

The interrelationships of efficiency and effectiveness IT metrics 

- security : an issue for any organization offering product and service over the internet.
- Implement internet security.
- Secure internet connections and sockets layer.

Metrics For Strategies Initiatives 

1. Web site metrics 
2. SCM metrics 
3. CRM metrics 
4. BPR metrics 
5. ERP metrics 

Web Site Metrics :

- Abandoned registrations 
- Abandoned shopping cards 
- Click through 
- Conversion per thousand 
- Page exposed 
- Total hits 
- Unique visitors 

Supply Chain Management Metrics 

- Back order
- Customer order actual cycle time 
- Customer order promised cycle time
- Inventory replenishment cycle time 

Customer Relationship Management Metrics

*Sales metrics 
*Service metrics 
*Marketing metrics


BPR and ERP metrics 

- The balanced scorecard enables organizations to measure and manage strategies initiatives
 

Tuesday, January 12, 2016

CHAPTER 3 - STRATEGIC INITIATIVES FOR IMPLEMENTING COMPETITIVE ADVANTAGES

Strategic initiatives 

  • Supply Chain Management (SCM)
  • Customer Relationship Management (CRM)
  • Business Process Re-engineering (BPR)
  • Enterprise Resource Planning (ERP)




  • Supply Chain Management (SCM)

  •   

    - Involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability.

    4 basic components of supply chain management :

    1. Supply Chain Strategy - to meet customer demand.
    2. Supply Chain Partner - deliver finished product, raw material and service.
    3. Supply Chain Operation - for production activities.
    4. Supply Chain Logistics - delivery process.



      • Effective and efficient SCM system ca enable an organization to :
    • Decrease the power of its buyers.
    • Increase its own supplier power.
    • Increase switching costs to reduce the threat of substitute products or service.
    • Increase inefficiencies while seeking a competitive advantage through cost leadership.

      



  • Customer Relationship Management (CRM)




  • - involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability. CRM is not just technology, but a strategy, process and business goal.

    • CRM can enable an organization to;

    o      Identify types of customers
    o      Design individual customer marketing campaign
    o      Treat each customer as a individual

    o      Understand customer buying behaviors


    • Business Process Re-engineering (BPR)



    - It is a standardized set of activities that accomplish a specific task, such as processing a customer’s order.
    - The analysis and redesign of workflow within and between enterprises
    o     The purpose of BPR is to make all business processes best in class.

    - Finding Opportunity Using BPR
    o     A company can improve the way it travels the road by moving from foot to horse and then horse to car
    o     BPR looks at taking a different path, such as an airplane which ignore the road completely


    • Enterprise Resource Planning


    - It  integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise wide information on all business operations.

    - Keyword in ERP is “enterprise”.

    - ERP systems collect data from across an organization and correlates the data generating an enterprise wide view.