Monday, 8 July 2013

METRICS FOR STRATEGIC INITIATIVES

 What is a metric?

o   A metric is nothing more than a standard measure to assess performance in a particular area

Metrics for measuring and managing strategic initiatives include:

o   Website metrics
o   Supply chain management (SCM) metrics
o   Customer relationship management (CRM) metrics
o   Business process reengineering (BPR) metrics
o   Enterprise resource planning (ERP) metrics

Website metrics include:

o   Abandoned registrations
o   Abandoned shopping carts
o   Click-through
o   Conversion rate
o   Cost-per-thousand
o   Page exposures
o   Total hits
o   Unique visitors

A supply chain is only as strong as its weakest link. The solution is to measure all key areas, which include:

o   Back order
o   Customer order promised cycle time
o   Customer order actual cycle time
o   Inventory replenishment cycle time
o   Inventory turns (inventory turnover)

Customer relationship management metrics measure user satisfaction and interaction and include:

o   Sales metrics
o   Service metrics
o   Marketing metrics

·         The balanced scorecard enables organizations to measure and manage strategic initiatives


  • The balanced scorecard views the organization from four perspectives:

o   The learning and growth perspective
o   The internal business process perspective
o   The customer perspective
o   The financial perspective

THE INTERRELATIONSHIPS OF EFFICIENCY AND EFFECTIVENESS IT METRICS
·         
  • Efficiency IT Metrics—Measures the performance of the IT system itself including throughput, speed, and availability


  • Effectiveness IT Metrics—Measures the impact IT has on business processes and activities including customer satisfaction, conversion rates, and sell-through
    increases


  • Efficiency IT metrics focus on technology and include:
    • Throughput
    • Transaction speed
    • System availability
    • Information accuracy
    • Web traffic
    • Response time

  • Effectiveness IT metrics focus on an organization’s goals, strategies, and objectives and include:

    • Usability
    • Customer satisfaction
    • Conversion rates
    • Financial

  • Security is an issue for any organization offering products or services over the Internet


  • It is inefficient for an organization to implement Internet security, since it slows down processing however, to be effective it must implement Internet security
    • Secure Internet connections must offer encryption and Secure Sockets Layers (SSL denoted by the lock symbol in the lower right corner of a browser)


Thursday, 4 July 2013

3. Strategic Initiatives for Implementing Competitive Advantages


Strategic Initiatives

          Organizations can undertake high-profile strategic initiatives including:
      Supply chain management (SCM)
      Customer relationship management (CRM)
      Business process reengineering (BPR)
      Enterprise resource planning (ERP)


Supply Chain Management

          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
          Four basic components of supply chain management include:
          Supply chain strategy – strategy for managing all resources to meet customer demand
          Supply chain partner – partners throughout the supply chain that deliver finished products, raw materials, and services.
          Supply chain operation – schedule for production activities
          Supply chain logistics – product delivery process

          Effective and efficient SCM systems can 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 services
      Create entry barriers thereby reducing the threat of new entrants
      Increase efficiencies while seeking a competitive advantage through cost leadership
          Effective and efficient SCM systems effect on Porter’s Five Forces


Customer Relationship Management

          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
          Many organizations, such as Charles Schwab and Kaiser Permanente, have obtained great success through the implementation of CRM systems
          CRM is not just technology, but a strategy, process, and business goal that an organization must embrace on an enterprisewide level
          CRM can enable an organization to:
          Identify types of customers
          Design individual customer marketing campaigns
          Treat each customer as an individual
          Understand customer buying behaviors


Business Process Reengineering

           Business process – a standardized set of activities that accomplish a specific task, such as processing a customer’s order
          Business process reengineering (BPR) – the analysis and redesign of workflow within and between enterprises
      The purpose of BPR is to make all business processes best-in-class
          Reengineering the Corporation – book written by Michael Hammer and James Champy that recommends seven principles for BPR


Finding Opportunity Using BPR

          A company can improve the way it travels the road by moving from foot to horse and then horse to car
          BPR looks at taking a different path, such as an airplane which ignore the road completely
          Progressive Insurance Mobile Claims Process
          Types of change an organization can achieve, along with the magnitudes of change and the potential business benefit


Enterprise Resource Planning

          Enterprise resource planning (ERP) – integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprisewide information on all business operations
          Keyword in ERP is “enterprise”
          ERP systems collect data from across an organization and correlates the data generating an enterprisewide view


angahrayn***

2. IDENTIFYING COMPETITIVE ADVANTAGE


Introduction

¡  What is competitive advantage?
§  A product or service that an organization’s customers place a greater value on than similar offerings from a competitor.
§  Unfortunately, CA is temporary because competitors keep duplicate the strategy.
§  Then, the company should start the new competitive advantage.


Five Forces Model

  1. Buyer power
·         High – when buyers have many choices of whom to buy.
·         Low – when their choices are few.
·         To reduce buyer power (and create competitive advantage), an organization must make it more attractive to buy from the company not from the competitors.
·         Best practices of IT-based
o   Loyalty program in travel industry (e.g. rewards on free airline tickets or hotel stays )

  1. Supplier power
·         High – when buyers have few choices of whom to buy from.
·         Low – when their choices are many.
o   Best practices of IT to create competitive advantage.
o   E.g. B2B marketplace – private exchange allow a single buyer to posts it needs and then open the bidding to any supplier who  would care to bid. Reverse auction is an auction format in which increasingly lower bids.

  1. Threat of substitute products or services.
·         High – when there are many alternatives to a product or service.
·         Low – when there are few alternatives from which to choose.
·         Ideally, an organization would like to be on a market in which there are few substitutes of their product or services.
o   Best practices of IT
o   E.g. Electronic product -same function different brands

  1. Threats of new entrants.
·         High – when it is easy for new competitors to enter a market.
·         Low – when there are significant entry barriers to entering a market.
·         Entry barriers is a product or service feature that customers have come to expect from organizations and must be offered by entering organization to compete and survive.
·         Best practices of IT
o   E.g. new bank must offers online paying bills, acc monitoring to compete.

  1. Rivalry among existing companies.

·         High – when competition is fierce in a market
·         Low – when competition is more complacent
·         Best Practices of IT
o   Wal-mart and its suppliers using IT-enabled system for communication and track product at aisles by effective tagging system.
o   Reduce cost by using effective supply chain.


The Three Generics Strategies

1. Cost Leadership
          Becoming a low-cost producer in the industry allows the company to lower prices to customers. 
          Competitors with higher costs cannot afford to compete with the low-cost leader on price

2.Differentiation
          Create competitive advantage by distinguishing their products on one or more features important to their customers. 
          Unique features or benefits may justify price differences and/or stimulate demand.
          Ex: i-care by Proton

3.Focused Strategies
          Target to a niche market
          Concentrates on either cost leadership or differentiation.



The Value Chains-
Targeting Business Processes

  • Supply Chain - a chain or series of processes that adds value to product & service for customer.
  • Add value to its products and services that support a profit margin for the firm




angahrayn***

IT : Business Driven Technology



Information Technology’s Impact on Business Operations

         Organizations typically operate by functional areas or functional silos
         Functional areas are interdependent


Information Technology Basics

         Information technology (IT) – a field concerned with the use of technology in managing and processing information
         Information technology is an important enabler of business success and innovation
         Management information systems (MIS) – a general name for the business function and academic discipline covering the application of people, technologies, and procedures  to solve business problems
         MIS is a business function, similar to Accounting, Finance, Operations, and Human Resources
         When beginning to learn about information technology it is important to understand
         Data, information, and business intelligence IT resources
         IT cultures


Information

         Data - raw facts that describe the characteristic of an event
         Information - data converted into a meaningful and useful context

Business intelligence – applications and technologies that are used to support decision-making efforts


IT Resources

         People use
         Information technology to work with
         Information


IT Cultures

         Organizational information cultures include:
         Information-Functional Culture - Employees use information as a means of exercising influence or power over others. For example, a manager in sales refuses to share information with marketing. This causes marketing to need the sales manager’s input each time a new sales strategy is developed.
         Information-Sharing Culture  - Employees across departments trust each other to use information (especially about problems and failures) to improve performance.
         Information-Inquiring Culture - Employees across departments search for information to better understand the future and align themselves with current trends and new directions.
     •         Information-Discovery Culture - Employees across departments are open to new insights about crisis and radical changes and seek ways to create competitive advantages.


angahrayn***

Thursday, 18 August 2011

hari ni bufday aku ! 18 august ..

 so , hari ni bufday aku . maka genaplah aku 18 tahun . bole la tengok cite blue 18sx . hehe (: gurau je , sesungguhnya adalah lbih afdal kita beribadah kepada-Nya di bulan yg mulia ini . huhu

oke , meh nak cite cket , pagi2 bute lg aku da kene dgn budak2 ni . dowg dah planning awal2 dah rupenye . ehh shiall lahhh phhhuiii ! ahhahaha .


korang tengok muke dowang nehh .. kejam kn ? hahaha
 lari punya lari punya lari .. akhernya kecundang , hahahaha . mcm2 kene baling . seghonokk ~


terduduk aku . redha je pd qada dan qadar , mmg dah tertulis kat atas camtu . hahahah.

nampak tk permainan dorang ? nak bermanja dgn Dragon sebenanye =.=" 
hehehe . akhernye dpt jgak kek hari jadi . wloupon dah kene tonyoh2 dgn naddy sblom tuh :3

auummm .thx tau !
 haaa !! ni laa dalang nye .yg kenekan aku . konon ckp nak jumpe member , ak g la teman . egt tyme tu nk beli sahur skali . hahak .ini ropenye plan mike . haha


kau tengok . nk begambar kat ford . kat kancil tanak. 

okeyy , ni je la yg aku nk gtaw . nk lebih2 dtg tnye aku sniry . hahahk . btw , thx kawan !! aku hargai ape yg korang buat. terharu la jgax . hehehe (:

angahrayn***