LAST CHAPTER -

LAST CHAPTER - 

OUTSOURCING IN THE 21st CENTURY

OUTSOURCING PROJECTS

Insourcing (in-house-development) – 

a common approach using the professional expertise within an organization 

to develop and maintain the organization's information technology systems

Outsourcing – 

an arrangement by which one organization provides a service or services 

for another organization that chooses not to perform them in-house

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

–     Core competencies

–     Financial savings

–     Rapid growth

–     Industry changes

–     The Internet

–     Globalization

OUTSOURCING BENEFITS

–     Increased quality and efficiency

–     Reduced operating expenses

–     Outsourcing non-core processes

–     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

-  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

CHAPTER 15 - CREATING COLLABORATIVE PARTNERSHIP

CHAPTER 15 - CREATING COLLABORATIVE PARTNERSHIP

Web 2.0 : Advantages of Business 2.0

Web 2.0 is the next generation of internet uses is a more mature,distinctive communication platform characterized by new quality such as collaboration, sharing and free.

Business 2.0 provided a virtual environment that,for many new employees, it just as vibrant and important as the physical environment.

Characteristics of Business 2.0

1. CONTENT SHARING THROUGH OPEN SOURCING
2.  USER CONTRIBUTED CONTENT
3. COLLABORATION INSIDE THE ORGANIZATION
4. . COLLABORATION OUTSIDE THE ORGANIZATION

Networking Communities Business 2.0

Social media : refer to website that relay on user participation and users contributed content such as facebook and youtube.

Social network : application that connects people by matching profile information.

Social networking : practices of expanding your business or social content by constructing a personal network.

Social Tagging

tags : specific keywords or phrases incorporated into website content for means of classification or taxonomy.

social tagging : describe the collaborative activity of marking share online contents with keywords tag as a way to organize it for future navigation.

Business 2.0 Tools for Collaborating

- blog

- wikis

- mashups

CHAPTER 14 - E-BUSINESS

CHAPTER 14 - E-BUSINESS

E-commerce - the buying and selling of goods and services over the internet.

E-bsuiness - the conducting of business on the internet, not only buying and selling, but also serving customers and collaborating with business partners.

Industries Using E business

E-business Models 

E-business Model- is an approach to conducting electronic business on the internet.

Business-to-business (B2B)

Electronic marketplaces or e-marketplaces- interactive business communities providing a central market space where multiple buyers and sellers can engage in business activities.

Business-to-consumer (B2C)

Applies to any business that sells its products or services to consumers over the internet.

 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-mall- consists of a number of e-shops, it serves as a gateway through which a visitor can access other e-shops.

Types of Businesses

  Brick-and-mortar business- a business that operates in a physical store without an internet presence.

 Pure-play (virtual) business- a business that operates on the internet only without a physical store. Examples include Amazon.com and Expedia.com

Click-and-mortar business- a business that operates in a physical store and on the internet. Examples include REI and Barnes and Noble.

Consumer-to-business (C2B)

 Applies to any consumer that sells a product or service to a business over the internet.

 An example - Priceline.com where bidders (or customers) ser their prices for items such as airline tickets or hotel rooms, and a seller decides whether to supply them.

Consumer-to-consumer (C2C)

Online auctions:

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

Forward auction- an auction that sellers use as a selling channel to many buyers and the highest bid wins.

Reverse auction- an auction that buyers use to purchase a product or service, selecting the seller with the lowest bid.

C2C Communities:

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 experience, 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-to-one with Michael Jordan.

E-business Benefits and challenges 

 E-business Business:

-  highly accessible

-  decreased cost

-  increase convenience

- increase global reach

Challenges :

-  protecting consumers

-  leveraging existing systems

-  increasing liability

- providing security

-  adhering to taxation rules.

CHAPTER 12 - INTEGRATING ORGANIZATION FROM END TO END - ERP

CHAPTER 12 - INTEGRATING ORGANIZATION FROM END TO END - ERP

Enterprise Resource Planning (ERP) : ERP systems is a database,when a user enters or update information in one module,it is immediately and automatically update throughout the entire system.

ERP Integration Data Flow

ERP Process Flow

The Evolution Of ERP :

Integrating SCM , CRM and ERP :

• SCM,CRM and ERP are the backbone of e business.
• Integration of these application is the key to success for many companies.
• Integration allows to unlocking of information to make it available to any user, anywhere and anytime.
• General audience and purpose of SCM, CRM and ERP:

Primary Users and Business Benefits of Strategic Initiatives

Integration Tools :

Integration between SCM, CRM and ERP Applications