4. How can the system improve customer service?
There are several ways that business intelligence can improve customer service. One of the ways is by having the right and updated information at the right time, thus allowing the customer service representative or the likes to provide timely, update and accurate services to the customers. With the use of BI system, the organization or the individual providing services to the (prospective) customers will have a clear idea as to what products are missing in the store, the inventory level of products, and others. By understanding such concepts or intricate information, the organization or representative of the organization will be able to best serve the needs of its customers.
5. Go to MicroStrategy's Web Site (microstrategy.com) and examine the capabilities of Retail IB system. Prepare a list.
In MicroStrategy's Web Site, two different business intelligence services and products are discussed: The MicroStrategy Business Intelligence Platform and MicroStrategy Business Intelligence Services.
Features of BI Platform
1. Unification of reporting, analysis and real-time business.
2. Simple initial implementation.
3. Low entry cost.
Features of BI Services
1. Maximization of organization's return on investment through the utilization of hundreds of professionals of Microstrategy.
2. Services provide include consulting and beta programs.
6. Go to the SAS Web Site (sas.com) and find their Retail Intelligence product (take interactive tour). Compare it with Microsoft's product. Also, compare it with Oracle Retail (oracle.com/retek).
SAS' Retail Intelligence, Microsoft Intelligence Products, and Oracle Retail
SAS Retail Intelligence:
-provides right information, at the right time and at the right format.
-fast, simple and complete system.
-provides capabilities that are appropriate in different skills within the organization.
-allows users to see relationships among data, documentations that are not easily available in manual or non-usage of BI system.
-provides services like reporting, office integration, query and analysis, OLAP, business visualization and integrated analytics.
Microsoft Business Intelligence:
- breaks down its business intelligence by personal BI, team BI and organizational BI.
-provides services like data warehousing, data integration, OLAP, reporting, analysis, predictive analytics, scorecards and dashboards, planning and budgeting, delivery, and enterprise research.
-BI services provides the needed services in different business roles, industry, and segment.
-Microsoft has four different kinds of BI products: SQL Server 2005, SQL Server 2008, 2007 Office System, and PerformancePoint Server 2007.
www.microsoft.com/bi
Oracle Retail
- It monitors business processes or activities in real-time and alerts staff members to exceptions or the next business process.
- It enhances product cycle managmeent and improves supply-chain management.
- It increases productivity.
- Improved uniformity of business operations.
- Oracle Retail has different products. These products include not only Retail Intelligence but also Oracle Database, Oracle Retail DataWarehouse, Oracle Retail Business Intelligence Accelerator, Oracle Retain Extract, Transform and Load, Oracle Retail Integration Bus and Oracle Retail Integrator.
http://www.oracle.com/applications/retail/bi/index.html
Thursday, October 23, 2008
Friday, October 17, 2008
Some More Info about Knowledge Management
This is a website where you can find additional information about knowledge management. The pieces of information found in this website are not found elsewhere in the book we're using. I found it quite informative and hope you find it informative too. Just like the reasoning of the author of the article, I believe that in most of the organizations, if not all, there needs to have some forms of technology to support the organizations' knowledge management activities.
According to the article, in order for an organization to mitigate risks innate within and out of the control of the company, and to get the best possible project outcomes, organizations needs to abandon the use of the term knowledge management system (KMS). According to the author of the article, "the use of KMS is likely to cause considerable when evaluationg potential solutions."
http://www.steptwo.com.au/papers/cmb_kmsystems/index.html
According to the article, in order for an organization to mitigate risks innate within and out of the control of the company, and to get the best possible project outcomes, organizations needs to abandon the use of the term knowledge management system (KMS). According to the author of the article, "the use of KMS is likely to cause considerable when evaluationg potential solutions."
http://www.steptwo.com.au/papers/cmb_kmsystems/index.html
10.8 Ensuring Success of KM Efforts
Knowledge Management System (KM System) refers to a system for managing knowledge in organizations, supporting creation, capture, storage and dissemination of information (Wikipedia, 2008).
Organizations are able to gain substantial from the adoption and implemention of the knowledge management system or strategy. The following are the benefits of, causes of failure of, the factors leading to the success of, and the potential drawbacks of knowledge management systems.
Knowledge Management Valuation
- Asset-based approach. This approach starts with the identification of intellectual assets and then focuses on the organization's management's attention on increasing their value.
- Links knowledge to its applications and business benefits. It uses variants of a balanced scorecard, where financial measures are balanced against customer, process and innovation measures.
Types of Measures for Assessing the Effectiveness of a KM Initiative
- Results-oriented. This is financial in nature and might include such things as increase in goods sold.
- Activities-based. It considers how frequently users are accessing knowledge or contributing to knowledge.
Financial Metrics. Though traditional accounting measures are incomplete for measuring KM, they are sometimes being used to justify KM effort.
Nonfinancial Metrics. When one needs to evaluate intangibles, the following are the different ways to view capital.
- External Relationship Capital. Links with its partners, suppliers, customers, and others.
- Structural Capital. Work processes and systems that leverage competitiveness.
- Human Capital. This include the capacity and abilities of individuals.
- Social Capital. Relationship with the larger society.
- Environmental Capital. Relationships with the environment.
Causes of KM Failure
There are a number of reasons why knowledge management cause to fail. It is estimated that KM failure rates from 50 to 70 percent. These causes include but not limited to the following:
1. Too much information that is not easily searchable.
2. Inadequancy/Incompleteness of information in the system.
3. Inability to capture and categorize knowledge.
4. Lack of Commitment.
5. Overemphasis on technology at the expense of larger knowledge and people.
6. Lack of inadequate staff and resources.
7. Lack of clear understanding of KM benefits.
8. Overambitious scope of the KM effort.
Factors Leading to KM Success
The following steps are critical for every organization wishing that its organization to have a successful knowledge management systems.
1. Assess the strategic need for knowledge management in the first place.
2. Determine the current process of dealing with organizational knowledge is adequate and the organization's culture is ready for procedural changes.
3. Have an effective managerial influence in terms of control and measurement, project management and others.
4. Have key resources such as financial resources and cross functional expertise.
5. Take advantage of technological opportunities.
6. A knowledge-friendly culture leading directly to user support.
7. A link to a firm's economic value, to demonstrae financial viability and maintain executive sponsorship.
8. A level of process orientation to make a knowledge management effort worthwhile. In other words, new, improved work methods can be developed.
Potential Drawbacks To Knowledge Management Systems
1. Adaptability. Inability to deliver the expected performance outcomes.
2. Usability: Some users are not capable enough to use automated tools to get required information.
For more information about Knowledge Management visit http://en.wikipedia.org/wiki/Knowledge_Management_System
Organizations are able to gain substantial from the adoption and implemention of the knowledge management system or strategy. The following are the benefits of, causes of failure of, the factors leading to the success of, and the potential drawbacks of knowledge management systems.
Knowledge Management Valuation
- Asset-based approach. This approach starts with the identification of intellectual assets and then focuses on the organization's management's attention on increasing their value.
- Links knowledge to its applications and business benefits. It uses variants of a balanced scorecard, where financial measures are balanced against customer, process and innovation measures.
Types of Measures for Assessing the Effectiveness of a KM Initiative
- Results-oriented. This is financial in nature and might include such things as increase in goods sold.
- Activities-based. It considers how frequently users are accessing knowledge or contributing to knowledge.
Financial Metrics. Though traditional accounting measures are incomplete for measuring KM, they are sometimes being used to justify KM effort.
Nonfinancial Metrics. When one needs to evaluate intangibles, the following are the different ways to view capital.
- External Relationship Capital. Links with its partners, suppliers, customers, and others.
- Structural Capital. Work processes and systems that leverage competitiveness.
- Human Capital. This include the capacity and abilities of individuals.
- Social Capital. Relationship with the larger society.
- Environmental Capital. Relationships with the environment.
Causes of KM Failure
There are a number of reasons why knowledge management cause to fail. It is estimated that KM failure rates from 50 to 70 percent. These causes include but not limited to the following:
1. Too much information that is not easily searchable.
2. Inadequancy/Incompleteness of information in the system.
3. Inability to capture and categorize knowledge.
4. Lack of Commitment.
5. Overemphasis on technology at the expense of larger knowledge and people.
6. Lack of inadequate staff and resources.
7. Lack of clear understanding of KM benefits.
8. Overambitious scope of the KM effort.
Factors Leading to KM Success
The following steps are critical for every organization wishing that its organization to have a successful knowledge management systems.
1. Assess the strategic need for knowledge management in the first place.
2. Determine the current process of dealing with organizational knowledge is adequate and the organization's culture is ready for procedural changes.
3. Have an effective managerial influence in terms of control and measurement, project management and others.
4. Have key resources such as financial resources and cross functional expertise.
5. Take advantage of technological opportunities.
6. A knowledge-friendly culture leading directly to user support.
7. A link to a firm's economic value, to demonstrae financial viability and maintain executive sponsorship.
8. A level of process orientation to make a knowledge management effort worthwhile. In other words, new, improved work methods can be developed.
Potential Drawbacks To Knowledge Management Systems
1. Adaptability. Inability to deliver the expected performance outcomes.
2. Usability: Some users are not capable enough to use automated tools to get required information.
For more information about Knowledge Management visit http://en.wikipedia.org/wiki/Knowledge_Management_System
Sunday, October 12, 2008
Appendix 9A. Electronic Data Interchange (EDI)
Electronic Data Interchange (EDI)- is a communication standard that enables the electronic transfer of routine documents such as purchase orders, between business partners. It reduces the costs, delays, and errors inherent in a manual document-delivery system.
Major Components of EDI
1. EDI Transistors. Converts data into a standard format before it is transmitted; then, the standard form is coverted to the original data.
2. Business transaction messages. These messages include but are not limited to purchase orders, confirmations and others.
3. Data formatting standards. Because EDI messages are repetitive, standards need to be formatted. These standards are formatted based on ANSI X.12.
The Benefits of EDI
1. Data entry errors are minimized. Because human has a limited role in entering data and that only one entry and an automatic check by the computer are done, the errors in data entry are substantially minimized.
2. Increased productivity. With minimization of data entry and of paper usage, employees within the organization are able to devote their time in more productive and effective ways. In short, they are able to use their time to different tasks and responsibilities that may not be possible without the adoption and utilization of EDI.
3. Minimized paper usage. Because data are stored in a computer system, the use of paper is minimized.
4. Increased customer service. Because all data are stored in a computer system, or in this case, EDI, customer service representatives are able to pull up information to effectively provide service to customers.
Limitations of Traditional EDI
1. Only about 100,000 companies out of several million businesses adopt the traditional EDI.
2. Due to its costs, only a few businessess utilize EDI.
3. Inflexibility of traditional EDI system.
4. Business processes of organizations need to be restructured to fit EDI requirements.
Benefits of Internet-based EDI
1. Accessibility. Because internet is easily accessible anywhere and has only a limited geographical constraints, Internet-based EDI is also easily accesible anywhere, thereby giving organizations more rooms for doing business instead of just doing such business in one room/building.
2. Reach. Because of internet's ability to reach wider demographics and geographical locations, organizations that are utilizing internet-based EDI can reach more trading/business partners.
3. Cost. Because internet-based EDI has lower costs than traditional EDI, more and more businesses are utilizing this type of EDI and fewer businesses use traditional EDI. With internet-based EDI, organizations will not necessarily have to pay for network transport, transalation and routing of EDI messages that companies using traditional EDI utilize.
4. Ease of Use. Because internet-based EDI are done using the internet, it is easier for employees to this type of EDI since almost everyone is familiar with the use of web browsers, search engines and others.
5. Added functionalities. The benefits of internet-based EDI includes collaboration, workflow and search engines capabilities.
Types of Internet-Based EDI
1. Internet e-mail can be used to transport EDI messages in place of a VAN.
2. EDI creates an extranet that enable trading partners of the organization to enter information into a Web form.
The Prospects of Internet-Based EDI
The following are excellent examples of the benefits of internet-based EDI:
1.Rapid Growth at CompuCom. When the organization adopted the use internet-based EDI and abandoned the use of traditional EDI, the organization was able to average 35,000 transactions.
2. Recruitment at Tradelink. When tradelink switched to internet-based system, it registered thousands of new companies to the systems.
3. Better Collaboration at Atkins Carlyle. When the organization moved to an internet-based EDI, the company was able to collaborate with more business partners.
Most pieces of information contained in this specific blog were obtained from Information Technology for Management Transforming Organizations in the Digital Economy 6E by Turban, Leidner, McLean and Wetherbe
Major Components of EDI
1. EDI Transistors. Converts data into a standard format before it is transmitted; then, the standard form is coverted to the original data.
2. Business transaction messages. These messages include but are not limited to purchase orders, confirmations and others.
3. Data formatting standards. Because EDI messages are repetitive, standards need to be formatted. These standards are formatted based on ANSI X.12.
The Benefits of EDI
1. Data entry errors are minimized. Because human has a limited role in entering data and that only one entry and an automatic check by the computer are done, the errors in data entry are substantially minimized.
2. Increased productivity. With minimization of data entry and of paper usage, employees within the organization are able to devote their time in more productive and effective ways. In short, they are able to use their time to different tasks and responsibilities that may not be possible without the adoption and utilization of EDI.
3. Minimized paper usage. Because data are stored in a computer system, the use of paper is minimized.
4. Increased customer service. Because all data are stored in a computer system, or in this case, EDI, customer service representatives are able to pull up information to effectively provide service to customers.
Limitations of Traditional EDI
1. Only about 100,000 companies out of several million businesses adopt the traditional EDI.
2. Due to its costs, only a few businessess utilize EDI.
3. Inflexibility of traditional EDI system.
4. Business processes of organizations need to be restructured to fit EDI requirements.
Benefits of Internet-based EDI
1. Accessibility. Because internet is easily accessible anywhere and has only a limited geographical constraints, Internet-based EDI is also easily accesible anywhere, thereby giving organizations more rooms for doing business instead of just doing such business in one room/building.
2. Reach. Because of internet's ability to reach wider demographics and geographical locations, organizations that are utilizing internet-based EDI can reach more trading/business partners.
3. Cost. Because internet-based EDI has lower costs than traditional EDI, more and more businesses are utilizing this type of EDI and fewer businesses use traditional EDI. With internet-based EDI, organizations will not necessarily have to pay for network transport, transalation and routing of EDI messages that companies using traditional EDI utilize.
4. Ease of Use. Because internet-based EDI are done using the internet, it is easier for employees to this type of EDI since almost everyone is familiar with the use of web browsers, search engines and others.
5. Added functionalities. The benefits of internet-based EDI includes collaboration, workflow and search engines capabilities.
Types of Internet-Based EDI
1. Internet e-mail can be used to transport EDI messages in place of a VAN.
2. EDI creates an extranet that enable trading partners of the organization to enter information into a Web form.
The Prospects of Internet-Based EDI
The following are excellent examples of the benefits of internet-based EDI:
1.Rapid Growth at CompuCom. When the organization adopted the use internet-based EDI and abandoned the use of traditional EDI, the organization was able to average 35,000 transactions.
2. Recruitment at Tradelink. When tradelink switched to internet-based system, it registered thousands of new companies to the systems.
3. Better Collaboration at Atkins Carlyle. When the organization moved to an internet-based EDI, the company was able to collaborate with more business partners.
Most pieces of information contained in this specific blog were obtained from Information Technology for Management Transforming Organizations in the Digital Economy 6E by Turban, Leidner, McLean and Wetherbe
Monday, October 6, 2008
8.9 Managerial Issues
8.9 Managerial Issues
This section delineates the managerial issues that organizations may face in their efforts to employing supply chain management in their respective organizations.
1. Ethical Issues- It is true that conducting or employing supply chain management project in an organzation may result in the need to lay off, retrain and or transfer employees. Although, in general, supply chain management helps an organization streamline its operation, cut costs and increase overall company productivity, SCM results in activities mentioned above. Is it ethically justifiable to employ such project when a number of employees will be terminated? Is it just to share personal information in order to create an effective SCM? The answer to these questions is no.
2. How much to integrate?- Integration of supply chain segments may result in failure. This failure may include but not limited to the difficulty of utilizing and understanding technologies, inability of the technology to simplify processes that customers would be able to know easily, cost of maintaining such technology and among others. Instead of integrating the technologies of the company, the company itself may just want to connect any activities to ensure that each single activity is separate from each other and that each single activity is understandable and user-friendly for the users and customers.
3. Role of IT- SCM projects use information technology. Without IT, SCM efforts do not succeed. Oftentimes, technology plays the primary role in an organization rather than a supportive role, which should not be the case. However, without information technology, SCM efforts would not succeed. In short, there tends to be a problem as to what the role of IT truly is. The organizations must ensure that they recognize the fact IT takes the supportive role. This is because if for some reasons the information technology side of the company fails, the company itself fails as well.
4. Organizational Adaptibility- Because organization processes must conform to the software, not the other way around when it comes to adopting enterprise resources planning (ERP), some companies may have a difficult time adjusting when a new software is used. This is where dilemma exists. Some organizations have the capacity to adjust to new software changes, and some are not. Some organizations will be willing to adjust in order to utilize better software and some are not.
5. Going global- EC provides an opportunity to expand market globally. However, going global means that a company has to comply with different rules and regulations or laws set forth by different countries. This means that a company may have different kinds of operations in different countries. This also means that the costs associated with complying with the set laws might be high, which can create the organization's overall profitability and viability in the marketplace.
6. The customer is king/queen- It is always said that customers are always the top priority of organizations. Therefore, the organizations must ensure that even the smallest change of technology or adoption of it is easily understandable and beneficial to the customers. After all, it is the customers that make an organization survive in the globally-competitive marketplace. The organization must ensure that even though they are taking advantage of the benefits of the digital age, they must be aware that the end product must be customer-friendly.
7. Set CRM policies with care- In practicing CRM, a number of companies may give priority to more valuable customers (e.g. frequent buyers). Since frequent buyers are more of avid customers of the organization, the organization tends to give these customers discounts, coupons, and others. However, people may see this as a form of discrimination. People may think that customers should and must have equal opportunities that others get. Therefore, the organization must place care with its CRM policies to ensure that individuals are treated equally.
This section delineates the managerial issues that organizations may face in their efforts to employing supply chain management in their respective organizations.
1. Ethical Issues- It is true that conducting or employing supply chain management project in an organzation may result in the need to lay off, retrain and or transfer employees. Although, in general, supply chain management helps an organization streamline its operation, cut costs and increase overall company productivity, SCM results in activities mentioned above. Is it ethically justifiable to employ such project when a number of employees will be terminated? Is it just to share personal information in order to create an effective SCM? The answer to these questions is no.
2. How much to integrate?- Integration of supply chain segments may result in failure. This failure may include but not limited to the difficulty of utilizing and understanding technologies, inability of the technology to simplify processes that customers would be able to know easily, cost of maintaining such technology and among others. Instead of integrating the technologies of the company, the company itself may just want to connect any activities to ensure that each single activity is separate from each other and that each single activity is understandable and user-friendly for the users and customers.
3. Role of IT- SCM projects use information technology. Without IT, SCM efforts do not succeed. Oftentimes, technology plays the primary role in an organization rather than a supportive role, which should not be the case. However, without information technology, SCM efforts would not succeed. In short, there tends to be a problem as to what the role of IT truly is. The organizations must ensure that they recognize the fact IT takes the supportive role. This is because if for some reasons the information technology side of the company fails, the company itself fails as well.
4. Organizational Adaptibility- Because organization processes must conform to the software, not the other way around when it comes to adopting enterprise resources planning (ERP), some companies may have a difficult time adjusting when a new software is used. This is where dilemma exists. Some organizations have the capacity to adjust to new software changes, and some are not. Some organizations will be willing to adjust in order to utilize better software and some are not.
5. Going global- EC provides an opportunity to expand market globally. However, going global means that a company has to comply with different rules and regulations or laws set forth by different countries. This means that a company may have different kinds of operations in different countries. This also means that the costs associated with complying with the set laws might be high, which can create the organization's overall profitability and viability in the marketplace.
6. The customer is king/queen- It is always said that customers are always the top priority of organizations. Therefore, the organizations must ensure that even the smallest change of technology or adoption of it is easily understandable and beneficial to the customers. After all, it is the customers that make an organization survive in the globally-competitive marketplace. The organization must ensure that even though they are taking advantage of the benefits of the digital age, they must be aware that the end product must be customer-friendly.
7. Set CRM policies with care- In practicing CRM, a number of companies may give priority to more valuable customers (e.g. frequent buyers). Since frequent buyers are more of avid customers of the organization, the organization tends to give these customers discounts, coupons, and others. However, people may see this as a form of discrimination. People may think that customers should and must have equal opportunities that others get. Therefore, the organization must place care with its CRM policies to ensure that individuals are treated equally.
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