Chapter 14 - Creating Collaborative Partnerships

Teams, Partnerships, and Alliances

• Organizations create and use teams, partnerships and alliances to:

- Undertake new initiatives

- Address both minor and major problems

- Capitalize on significant opportunities

• Organizations create teams, partnerships and alliances both internally with employees and externally with other organizations

Organizations from alliance 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 partnerships – 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 alliance and partnerships

 

• Two categories of collaboration

1. Unstructured collaboration (information collaboration) – includes document exchange, shared whiteboards, discussion forums, and email.
2. Structured collaboration (process collaboration) – involves shared participation in business processes such as workflow in which knowledge is hard-coded as rules

Collaboration Systems

• Collaboration systems include;

- Knowledge management systems

- Content management systems

- Workflow management systems

- Groupware systems

Knowledge Management Systems

• Knowledge management (KM) – involves capturing, classifying, evaluating, retrieving and sharing information assets in a way that provides context for effective decisions and actions

• Knowledge management system – supports the capturing and use of an organization’s “know-how”

Explicit and Tacit knowledge

• Intellectual and knowledge-based assets fall into two categories;

1. Explicit knowledge – consists of anything that can be documented, archived, and codified, often with the help of IT
2. Tacit knowledge – knowledge contained in people’s heads

• The following are two best practices for transferring or recreating tacit knowledge

           - Shadowing – less experienced staff observe more experienced staff to learn how their more

             experienced counterparts approach their work

          - Joint problem solving – a novice and expert work together on a project

KM Technologies

• Knowledge management systems include:

- Knowledge repositories (databases)
- Expertise tools
- E-learning applications
- Discussion and chat technologies
- Search and data mining tools

KM and Social Networking

• Finding out how information flows through an organization

- Social networking analysis (SNA) - a process of mapping a group's contacts (whether personal or professional) to identify who knows whom and who works with whom

- SNA provides a clear picture of how employees and divisions work together and can help identify key experts

Social Networking

Content Management

• Content management system (CMS) – provides tools to manage the creation, storage, editing and publication of information in a collaborative environment

• CMS marketplace includes:

          - Document management system (DMS)

          - Digital assets management system (DAM)

          - Web content management system (WCM)

 

Document Management System (DMS)

• Supports the electronic capturing, storage, distribution, archival, and accessing of documents

Digital Asset Management System (DAM)

• Similar to DMS, generally works with binary rather than text files, such as multimedia files types

Web Content Management System (WCM)

• Adds an additional layer to document and digital asset management that enables publishing content both to intranets and to public Web sites

WORKING WIKIS

• Wikis - Web based tools that make it easy for users to add, remove, and change online content
• Business wikis – collaborative web pages that allows users to edit documents, share ideas or monitor the status of a project

Business Wikis

Workflow Management Systems

• Work activities can be performed in series or in parallel that involves people and automated computer systems
• Workflow – defines all the steps or business rules, from beginning to end, required for a business process
• Workflow management system – facilitates the automation and management of business processes and controls the movement of work through the business process
• Messaging-based workflow system – sends work assignments through an email system
• Database-based workflow system – stores documents in a central location and automatically asks the team members to access the document when it is their turn to edit the document
• Groupware systems

Videoconferencing

• Videoconference - a set of interactive telecommunication technologies that allow two or more locations to interact via two-way video and audio transmissions simultaneously

Web Conferencing

• Web conferencing - blends audio, video, and document-sharing technologies to create virtual meeting rooms people "gather" at a password-protected Web site

Instant Messaging

• Email is the dominant form of collaboration application, but real-time collaboration tools like instant messaging are creating a new communication dynamic
• Instant messaging – types of communications service that enables someone to create a kind of private chat room with another individual to communicate in real-time over the internet

 

• Instant messaging application

Chapter 13 – E-Business

E-Business

v  The Internet is a powerful channel that presents new opportunities for an organization to:

·         Touch customers

·         Enrich products and services with information

·         Reduce costs

E-Commerce & E-Business

v  How do e-commerce and e-business differ?

·         E-commerce – the buying and selling of goods and services over the Internet (online transaction)

·         E-business – the conducting of business on the Internet including, not only buying and selling, but also serving customers and collaborating with business partners (online transaction, serving customers and collaborating with business partner)

Electronic marketplace (e-marketplace)

v  Electronic marketplaces, or e-marketplaces, present structures for conducting commercial exchange, consolidating supply chains, and creating new sales channels

v  Their primary goal is to increase market efficiency by tightening and automating the relationship between buyers and sellers

v  Existing e-marketplaces allow access to various mechanisms in which to buy and sell almost anything, from services to direct materials

Electronic Marketplaces

Search Engine Marketing

Business-to-Consumer (B2C)

v  Common B2C e-business models include:

·         e-shop – a version of a retail store where customers can shop at any hour of the day without leaving their home or office

·         e-mail – consists of a number of e-shops; it serves as a gateway through which a visitor can access other e-shops

e-shop

e-mall

v  Business types:

·         Brick-and-mortar business – operates in a physical store without an Internet presence. Example: Bata

·         Pure-play business – a business that operates on the Internet only without a physical store. Examples include fashionvalet.com

·         Click-and-mortar business – a business that operates in a physical store and on the Internet. Example: Hijabs by Hanami

CarFax

Amazon.com

Consumer-to-Business (C2B)

v  Priceline.com is an example of a C2B e-business model

v  The demand for C2B e-business will increase over the next few years due to customer’s desire for greater convenience and lower prices

Consumer-to-Consumer (C2C)

v  Online auctions

·         Electronic auction (e-auction) – sellers and buyers solicit consecutive bids from each other and prices are determined dynamically

·         Forward auction – sellers use as a selling channel to many buyers and the highest bid wins

·         Reverse auction – buyers use to purchase a product or service, selecting the seller with the lowest bid

v  C2C communities include:

·         Communities of interest – people interact with each other on specific topics, such as golfing and stamp collecting

·         Communities of relations – people come together to share certain life experiences, such as cancer patients, senior citizens, and car enthusiasts

·         Communities of fantasy – people participate in imaginary environments, such as fantasy football teams and playing one-on-one with Michael Jordan

e-bay

mudah.my

E-business Benefits

v  E-business benefits include:

·         Highly accessible

-          Businesses can operate 24 hours a day, 7 days a week, 365 day a year

·         Increased customer loyalty

-          Additional channels to contact, respond to, and access customers  helps contribute to customer loyalty

·         Improved information content

-          In the past, customers had to order catalogs or travel to a physical facility before they could compare price and product attributes. Electronic catalogs and Web pages present customers with updated information in real-time about goods, services, and prices

·         Increased convenience

-          E-business automates and improves many of the activities that make up a buying experience

·         Increased global reach

-          Businesses, both small and large, can reach new markets

·         Decreased cost

-          The cost of conducting business on the Internet is substantially smaller than traditional forms of business communication

E-Business Challengers

v  E-business challengers include:

·         Identifying Limited Market Segments

-          The main challenge of e-business is the lack of growth in some sectors due to product or service limitation

·         Managing Consumer Trust

-          Internet marketers must develop a trustworthy relationship to make that initial sale and generate customer loyalty

·         Ensuring Consumer Protection

-          Implement Internet Security, protect from misuse of customer information

·         Managing Consumer Trust

-          Companies that operate online must obey a patchwork of rules about which customers are subject to sales tax on their purchase and which are not

E-Business Benefits and Challenges

v  There are numerous advantages and limitations in e-business revenue models including:

·         Transaction fees

·         License fees

·         Subscription fees

·         Value-added fees

·         Advertising fees

Mashup

v  Web mashup – a Web site or Web application that uses content form more than one source to create a completely new service

·         Application programming interface (API) – a set of routines, protocols, and tools for building software applications

·         Mashup editor – WSYIWYGs (What You See Is What You Get) for mashups

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

Integrating SCM, CRM, and ERP

v  SCM, CRM, and ERP are the backbone of e-business

v  Integration of these applications is the key to success for many companies

v  Integration allows the unlocking of information to make it available to any user, anywhere, anytime

Integration Tools

v  Many companies purchase modules from an ERP vendor, an SCM vendor, and a CRM vendor and must integrate the different modules together

·         Middleware – several different types of software which sit in the middle of and provide connectivity between two or more software applications

·         Enterprise application integration (EAI) middleware – packages together commonly used functionality which reduced the time necessary to develop solutions that integrate applications from multiple vendors

Enterprise Resource Planning (ERP)

v  ERP systems must integrate various organization processes and be:

·         Flexible

·         Modular and open

·         Comprehensive

·         Beyond the company

v  Flexible – must be able to quickly respond to the changing needs of the organization

v  Modular and open – must have an open system architecture, meaning that any module can be interface, with or detached whenever required without affecting the other modules

v  Comprehensive – must be able to support a variety of organizational functions for a wide range of businesses

v  Beyond the company – must support external partnerships and collaboration efforts

Enterprise Resource Planning’s Explosive Growth

 

v  SAP boasts 20000 installations and 10 million users worldwide

v  ERP solutions are growing because:

·         ERP is a logical solution to the mess of incompatible applications that had sprung up in most businesses

·         ERP addresses the need for global information sharing and reporting

·         ERP is used to avoid the pain and expense of fixing legacy systems

 

 

 

Chapter 11 – Building a Customer-Centric Organization – Customer Relationship Management

Customer Relationship Management (CRM)

v  CRM enables an organization to:

·         Provide better customer service

·         Make call centres more efficient

·         Cross sell products more effectively

·         Help sales staff close deals faster

·         Simplify marketing and sales processes

·         Discover new customers

·         Increase customer revenues

Recency, Frequency, and Monetary Value

v  Organizations can find their most valuable customers through “RFM” – Recency, Frequency, and Monetary value

·         How recently a customer purchased items (Recently)

·         How frequently a customer purchased items (Frequency)

·         How much a customer spends on each purchase (Monetary Value)

The Evolution of CRM

v  CRM reporting technology – help organizations identify their customers across other applications

v  CRM analysis technologies – help organization segment their customers into categories such as best and worst customers

v  CRM predicting technologies – help organizations make predictions regarding customer behaviour such as which customers are at risk of leaving

 

 

 

 

 

 

 

 

 

 

 

Using Analytical CRM to Enhance Decisions

v  Operational CRM – supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers

 

v  Analytical CRM – supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers

 

 

 

Customer Relationship Management Success Factors

v  CRM success factors include:

 

1.       Clearly communicate the CRM strategy

2.       Define information needs and flows

3.       Build an integrated view of the customer

4.       Implement in iterations

5.       Scalability for organizational growth