Monday, 27 July 2015

Chapter 4: Measuring the Success of Strategic Intiatives

Chapter 4: Measuring the Success of Strategic Intiatives

There is management pressure to build systems faster,better,and at minimum cost.The return on invesment that an organization can achieve from the money it spends on IT under increased  scrutiny from senior business executives and directors.

IT professionals know how to install and maintain information systems.Business professionals know how to run a successful business.Key performance indicators [KPIs] are the measures that feed those KPIs.

Improving business process operations.The council developed metrics to evaluate the efficiency of Cisco's online order processing and discovered

Efficiency and Effectiveness

Efficiency and Effectiveness metrics are two primary types of IT metrics.Efficiency IT metrics measure the performance of the IT system itself including throughout,speed,and availability.Effectiveness IT metrics measure the impact IT has on business processes and activities including customer satisfaction,conversion rates,and sell-through increases.

Benchmarking-Baseline Metrics

A process of continuously measureing system results,comparing those results to optimal system performance[benchmark values],identifying steps and procedures to improve system performance.


Comparing Efficiency IT and Effectiveness IT Metrics for Egornment Intiatives

The Interrelationships of Efficiency and Effectiveness IT Metrics

Common Types of Efficiency IT Metrics


Common Types of Effectiveness IT Metrics

Metrics for Strategic Initiatives

A focus on customers and performance standards shows up in the form of metrics that assess the ability to meet customers' needs and business objectives.

Website Metrics

  
Supply Chain Managent Metrics

Customer Relationship Management[CRM] Metrics


The Four Primary Perspectives of the Balanced Scorecard




Chapter 1:Business Driven Technology



Information Technology's Role Business

- information technology is everywhere in business.Understanding information technology provides great insight to anyone learning about business





                             
-implementing anew accounting system or marketing plan is not likely to generate long-term growth or reduce cost across an entire organization.
-business must undertake enterprisewide intiatives to achieve broad general business goals such as reducing costs.

Information Technology Basics

*Information  technology
- use of technology in managing and processing information.

Management Information System.
-general name for the business function and academic discipline covering the application of people, technology and procedures-collectivity called information system-to solve business problem.


1) Accounting-provides quantitative information about the finance.

2)Finance-deals with the strategic financial issues.

3)Human Resources-includes the policies plan and procedures for the effective management of              employee.

4)Sales-the function of selling a good or service.

5)Marketing-the process associated with promoting the sale of goods or services.

6)Operation Management-the management of system or process that convert or transform resources.

Data, Information and Business Intelligence.
-Data are raw facts that describes the characteristics of an event.
-Information is data converted into a meaningful and useful context.
-Business Intelligent is refer to application and technologies that are used to gather, provide, access to, and analyze data and information to support decision making efforts.

IT Cultures


-Culture will influence the way people use information and will reflect the importance that company leaders attribute to use of information in achieving success or avoiding failure.

Chapter 3 :Strategic Initiatives for Implementing Competitive Advantages

Chapter 3 :Strategic Initiatives for Implementing Competitive Advantages

Strategic Initiatives
-this chapter introduces high-profile strategic initiatives that an organization can undertake to help it gain competitive advantages management,business efficiencies supply chain management,customer relationship management.business process reengineering,and enterprise resource planning.Each of these strategic initiatives is covered throughout this text.This chapter provides a brief introduction only.

Supply Chain Management

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

Supply chain strategy
-the strategy for managing all resources required to meet customer demand for all products and services.

Supply chain partners
-the partners chosen to deliver finished products,raw materials,and services including pricing,delivery,and payment  processes along with partner relationship monitoring metrics.

Supply chain operation
-the schedule for production activities including testing,packaging and preparation for delivery.Measurement for this component include productivity and quality.

Supply chain logistics
-the product delivery processes and elements including orders ,warehouses,carries,defective product returns and invoicing.



Supply chain for a product purchased from wal-mart


Effective and efficient supply chain management effect on porter's five forces

Customer Relationship Management
-involves managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability.


CRM Overview

Business Process Reegineering
-is the analysis and redesign of workflow within and between enterprises.


Seven principles of business process reengineering

Enterprise Resource Planning
-integrates all departments and functions throughout an organization into a single IT system [or intergrated set of IT systems ] so employees cam make decisions by viewing enterprisewide information on all business operations

Auto insurance claims process



The benefits and magnitude of change


Enterprise resource planning systems

Monday, 6 July 2015

Identitying Competitive Advantage.
1)First-mover advantage
    -Occur when an organization can significantly impacts its market share by being first market with a competitive advantage.

2)Environmental Scanning
    -acquisition and analysis of events and trends in the environment external to an organization.

The five Forces Model-Evaluating Business Segments.

-buyer power-buyer power is high as customers have many airlines to choose from and typically make  purchase based on price not career.
-Supplier power-Supplier power is high as there are limited plane an engine manufacturers to choose from an unionized workforces squeeze the airline's profitability.
-threat of substitute products or services-threat of substitute products is high as there are numerous transportation alternatives including automobiles, trains, and boats.
-threat of new entrants-high as new airline continously entering the market including the new sky taxies which offer low-cost on-demand air taxi service.
-Rivalry among existing competitors-rivalry in the airline industry is high-just search Travelocity.com and see how  many choices are offered.




THE THREE GENERIC STRATEGIES-CREATING A BUSINESS FOCUS
-Broad strategies reach a large market segment, while focused strategies target a niche market.
-A focus strategy concentrates on either cost leadership or differentiation.


VALUE CHAIN ANALYSIS-TARGETING BUSINESS PROCESSES.
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A Graphical Depiction of a value chain.