“The CEO's role in raising a company's corporate IQ is to establish an atmosphere that promotes knowledge sharing and collaboration, to prioritize the areas in which knowledge sharing is most valuable, to provide the digital tools that make knowledge sharing possible, and to reward people for contributing to a full flow of information.”Bill Gates
Knowledge management (KM) system is a phrase that is used to describe the creation of knowledge repositories, improvement of knowledge access and sharing as well as communication through collaboration, enhancing the knowledge environment and managing knowledge as an asset for an organization. Knowledge is something that comes from information processed by using data. It includes experience, values, insights, and contextual information and helps in evaluation and incorporation of new experiences and creation of new knowledge. Knowledge originates from, and is applied by knowledge workers who are involved in a particular job or task. People use their knowledge in making decisions as well as many other actions. In the last few years, many organizations realize they own a vast amount of knowledge and that this knowledge needs to be managed in order to be useful. In organizations, it becomes embedded in documents and repositories, in organizational routines, in processes, practices, and norms. One of the challenges of establishing a KM system is in categorizing knowledge.(1)
Most effective KM systems use a knowledge repository (database) accessed via the corporate intranet where experts are queried, answers are sent to the initiator of the query and stored in a database for future access. The process works like this:
Find Experts Electronically and Using Expert Location Systems
· Expert Location Systems (ELSs): are interactive computerized systems that help employees find and connect with colleagues with expertise required for specific problems---in order to solve specific, critical business problems in seconds.
· ELS process:
o Step 1: Employee submits a question into ELS
o Step 2: System searches database for answer. If not found searches previous documents and communications for an “expert”
o Step 3: Colleague either answers or passes to another colleague who does
o Step 4: Answer is reviewed and stored in the database
· Social Network Analysis (SNA): is a process of mapping a group’s contacts (whether personal or professional) to identify who knows whom and who works with whom. [2]
The following list illustrates communication techniques, applications and modes of invovement:
Synchronous Technique (ST)
• Meeting room • Discussion • Forum
Same Time, Same Place
Asynchronous Technique (AT)
• Bulletin Board System • Notice Board • Agent Based
Different Time, Same Place
Distributed Synchronous Collaboration (DSC)
• Video conferencing
• Tele-conferencing • Chatting
Same Time, Different Place
Distributed Asynchronous Collaboration (DAC)
• E-mail • Short Messaging System • Voice mail • Fax machine • Agent Based
Different Time, Different Place
[3]
Traditional knowledge dissemination is effective, but it is also time consuming. Knowledge Management software uses various strategies to allow users access to the vast store of knowledge available in most companies. This link lists 38 different vendors of KM software http://elibrary.line56.com/olist/Knowledge-Management.html
There are many Knowledge Management products and vendors. The following terms will prove helpful in evaluating options:
· Knoware: technology tools that support knowledge management
o Software Development Companies and Enterprise Information Systems Vendors
o Collaborative Computing Tools
o Knowledge Servers: contains the main knowledge management software, including the knowledge repository, and provides access to other knowledge, information, and data.
o Knowledge Repository: a (server) central location for searching and accessing information from many sources, such as the Internet, corporate intranets, databases, and file systems, thereby enabling the efficient distribution of time-sensitive information.
o Enterprise Knowledge Portals (EKP):
o Electronic Document management (EDM): focus on the document in electronic form as the collaborative focus of work.
o Content Management Systems (CMS): produces dynamic versions of documents, and automatically maintains the “current” set for use at the enterprise level.
o Knowledge Harvesting Tools: Tools for capturing knowledge unobtrusively are helpful since they allow a knowledge contributor to be minimally involved in the knowledge-harvesting efforts.
o Search Engines: perform one of the essential functions of knowledge management----locating and retrieving necessary documents from vast collections accumulated in corporate repositories
o Knowledge Management Suites: complete knowledge management solutions out-of-the-box. They integrate the communications, collaboration, and storage technologies into a single convenient package.
· Consulting Firms
· Knowledge Management Application Service Providers (ASP):
The KM system is an integral part of an effective enterprise information system. It cannot be implemented as an add-on application. The KMS and its activities must be integrated into the firm’s business processes. The real challenge is to integrate data which resides in a variety of systems and formats into the knowledge management system.[4]
__________________________________________________________________
[1]Rusli Abdullah, Mohd Hasan Selamat, Shamsul Sahibudin, Rose Alinda Alias. "A Framework For Knowledge Management System Implementation In Collaborative Environment For Higher Learning Institution." Journal of Knowledge Management Practice (March 2005).
[2] Turban, Leidner, Mclean and Wetherbe. Information Technology for Management . Danvers, Ma.: John Wiley & Sons, Inc., 2007.
[3] Rusli Abdullah, Mohd Hasan Selamat, Shamsul Sahibudin, Rose Alinda Alias. "A Framework For Knowledge Management System Implementation In Collaborative Environment For Higher Learning Institution." Journal of Knowledge Management Practice (March 2005).
[4] Turban, Leidner, Mclean and Wetherbe. Information Technology for Management . Danvers, Ma.: John Wiley & Sons, Inc., 2007.
Tuesday, October 21, 2008
Monday, October 13, 2008
Partner Relationship Management - PRM
The need to maintain good relationships with business partners transcends time and space. Communication should flow between organizations and partners, suppliers and consumers. Until recent history, communication would involve mail, telephone, fax and other less efficient methods. Partner Relationship Management (PRM) is a business strategy that recognizes the need to develop long-term relationships by providing technology based tools that are beneficial to all parties. PRM is built on the principles of Customer Relationship Management (CRM) software. PRM/CRM solutions (http://www.blueroads.com/webcasts/FOLEADMGMT/br_lead_mgmt_player.html) are web-based software applications that support the critical business processes of order management, supply chain management, customer support, payment and delivery services or various administrative tasks.
PRM facilitates partner relationships through:
Partner programs
*sales strategies support via distribution channel management
*retailer and partner support
*cross sales and loyalty programs
Sales Management & Controlling
*web shops (B2B/B2C)
*multilingual product catalog
*flexible stock keeping, continuously updated price lists and inventory
*cross product promotions, co-branded substores
*quick and easy configuration of country-specific requirements (language, currency, taxes)
Marketing and PR tools
*customer specific marketing strategies, easy and convenient implementation of promotions and ad campaigns
*targeted on-line marketing, detailed customer profile, co-branded substores, online survey combined with lottery
*easy and fast implementation of PR-promotions
*newsletter, press release sending
Order & Supply Chain Management
*electronic data interchange between shop engine and supply chain partners to achieve smooth *data flows between order and delivery
*flexible integration of business partners, (e.g. fulfillment and payment providers, distributors)
individual order process per fulfillment partner[1]
PRM companies seem to agree that PRM is about aligning the goals of disparate companies and making this so financially attractive to partners in the form of leads and other incentives that they never want to leave your company’s sphere of influence.
Kevin McKelvey, ChannelWave’s Senior Alliance Manager, explained that since the beginning of buying and selling, vendors have recruited vast networks of partners. But, he said, as the sheer volume of partners and complexity of the business world have accelerated, a business is now left aching for something like PRM.“There are layers of complexity with their partner channels. In addition, there are layers of complexity within those relationships,” he said. “The tremendous volume of business being driven through channels is itself a driver.”[2]
Another aspect of PRM is Supplier Relationship Management (SRM). The core concepts of CRM are evident in SRM and PRM. The following link to Oracle’s Peoplesoft will illustrate their relationship management software which includes PRM, CRM and SRM functions. http://www.oracle.com/pls/ebn/swf_viewer.load?p_shows_id=5317101&p_referred=0&p_width=800&p_height=600
Collaborative Commerce
Collaborative commerce refers to non-selling/buying transaction between organizations. An example is a company collaborating electronically with a vendor designing a product or part. Retailer-suppliers like Wal-Mart collaborate with major suppliers to design production, perform inventory planning and forcast demand. Product design and manufacturing are often performed on web-based collaborative interorganizational information systems (IOS) which document product changes and requirements all along the supply chain.
______________________________________
[1] http://www.channel-star.com/solutions/prm-crm
[2]http://saleslobby.com/OnlineMagazine/0900/channelmanagement_jkrist.asp
PRM facilitates partner relationships through:
Partner programs
*sales strategies support via distribution channel management
*retailer and partner support
*cross sales and loyalty programs
Sales Management & Controlling
*web shops (B2B/B2C)
*multilingual product catalog
*flexible stock keeping, continuously updated price lists and inventory
*cross product promotions, co-branded substores
*quick and easy configuration of country-specific requirements (language, currency, taxes)
Marketing and PR tools
*customer specific marketing strategies, easy and convenient implementation of promotions and ad campaigns
*targeted on-line marketing, detailed customer profile, co-branded substores, online survey combined with lottery
*easy and fast implementation of PR-promotions
*newsletter, press release sending
Order & Supply Chain Management
*electronic data interchange between shop engine and supply chain partners to achieve smooth *data flows between order and delivery
*flexible integration of business partners, (e.g. fulfillment and payment providers, distributors)
individual order process per fulfillment partner[1]
PRM companies seem to agree that PRM is about aligning the goals of disparate companies and making this so financially attractive to partners in the form of leads and other incentives that they never want to leave your company’s sphere of influence.
Kevin McKelvey, ChannelWave’s Senior Alliance Manager, explained that since the beginning of buying and selling, vendors have recruited vast networks of partners. But, he said, as the sheer volume of partners and complexity of the business world have accelerated, a business is now left aching for something like PRM.“There are layers of complexity with their partner channels. In addition, there are layers of complexity within those relationships,” he said. “The tremendous volume of business being driven through channels is itself a driver.”[2]
Another aspect of PRM is Supplier Relationship Management (SRM). The core concepts of CRM are evident in SRM and PRM. The following link to Oracle’s Peoplesoft will illustrate their relationship management software which includes PRM, CRM and SRM functions. http://www.oracle.com/pls/ebn/swf_viewer.load?p_shows_id=5317101&p_referred=0&p_width=800&p_height=600
Collaborative Commerce
Collaborative commerce refers to non-selling/buying transaction between organizations. An example is a company collaborating electronically with a vendor designing a product or part. Retailer-suppliers like Wal-Mart collaborate with major suppliers to design production, perform inventory planning and forcast demand. Product design and manufacturing are often performed on web-based collaborative interorganizational information systems (IOS) which document product changes and requirements all along the supply chain.
______________________________________
[1] http://www.channel-star.com/solutions/prm-crm
[2]http://saleslobby.com/OnlineMagazine/0900/channelmanagement_jkrist.asp
Tuesday, October 7, 2008
Business Process Management
The Role of Business Process Management
Have you heard the saying that “you can’t see the forest for the trees?” That is the case in many businesses today. The reality is that increasingly complex products, services and highly automated business operations have come to intervene between the human and the physical task. As a result, operators are separated from the processes they control.
Business leaders today are conditioned to see organizations in terms of its business functions such as Sales, Marketing and Finance. Many executives have specialized knowledge and tend to focus on a narrow field of expertise. Specialization often leads to tunnel vision. Managers have insufficient knowledge about what is happening in other areas of expertise and in the system as a whole. The more removed decision-makers are from front-line activities the greater is the potential danger to the system.
Business Process Management (BPM) represents a way to build structural integrity for the organization. If business functions are dots, then business structure is the connection between the dots. BPM leads to an understanding of the purpose behind business activities by recognizing processes from beginning to end through an analysis of the structure of the organization.
The mechanics of an organization refers to formal processes (operational tempo, time pressures, production quotas, incentive systems, schedules, etc.), procedures (performance standards, objectives, documentation, instructions about procedures, etc.) and oversight within the organization (organizational self-study, risk management, and the establishment and use of safety programs). Each organization should develop business mechanics appropriate to its anticipated outcome. If its business mechanics is misaligned with anticipated outcome, the business system is dysfunctional; for example claiming customer service as priority and demanding outrageous termination fees when customers are dissatisfied with the product or service.
Business Process Management is critical because business mechanics is impartial, just like railroad cars are impartial. The way you lay the tracks is the path the train will follow. Consequently, organizations will grow if BPM aligns the business mechanics with anticipated outcome. On the other hand, organizations will implode when the reality of their anticipated outcome is not aligned with business processes. The key to success of any organization lies in the design, maintenance and execution of its business processes. BPM is one way to ensure success in the implementation of its strategy!
Have you heard the saying that “you can’t see the forest for the trees?” That is the case in many businesses today. The reality is that increasingly complex products, services and highly automated business operations have come to intervene between the human and the physical task. As a result, operators are separated from the processes they control.
Business leaders today are conditioned to see organizations in terms of its business functions such as Sales, Marketing and Finance. Many executives have specialized knowledge and tend to focus on a narrow field of expertise. Specialization often leads to tunnel vision. Managers have insufficient knowledge about what is happening in other areas of expertise and in the system as a whole. The more removed decision-makers are from front-line activities the greater is the potential danger to the system.
Business Process Management (BPM) represents a way to build structural integrity for the organization. If business functions are dots, then business structure is the connection between the dots. BPM leads to an understanding of the purpose behind business activities by recognizing processes from beginning to end through an analysis of the structure of the organization.
The mechanics of an organization refers to formal processes (operational tempo, time pressures, production quotas, incentive systems, schedules, etc.), procedures (performance standards, objectives, documentation, instructions about procedures, etc.) and oversight within the organization (organizational self-study, risk management, and the establishment and use of safety programs). Each organization should develop business mechanics appropriate to its anticipated outcome. If its business mechanics is misaligned with anticipated outcome, the business system is dysfunctional; for example claiming customer service as priority and demanding outrageous termination fees when customers are dissatisfied with the product or service.
Business Process Management is critical because business mechanics is impartial, just like railroad cars are impartial. The way you lay the tracks is the path the train will follow. Consequently, organizations will grow if BPM aligns the business mechanics with anticipated outcome. On the other hand, organizations will implode when the reality of their anticipated outcome is not aligned with business processes. The key to success of any organization lies in the design, maintenance and execution of its business processes. BPM is one way to ensure success in the implementation of its strategy!
Sunday, September 28, 2008
B2B Electronic Commerce
B2B – Business To Business Electronic Commerce
Business to Business (B2B) applications comprise about 85% of electronic commerce (EC) volume.[i] B2B applications enable an organization to improve supply chains and partner relations through electronic relationships with its suppliers, distributors, customers and other partners. There are several ways that businesses use electronic commerce to develop these relationships.
The following list gives a brief explanation of the major B2B e-commerce methods:
· Sell-side corporate marketplace – the organization sells products or services to other organizations via their own e-marketplace or from a third party site. This model offers the seller great latitude in allowing the buyer to customize the product.
· Buy-side corporate marketplace – the organization buys needed products or services from sellers. This model is well suited for specific purchases where the company wants to evaluate offers from multiple vendors.
· Public exchange – brings many buyers and sellers (normally both businesses) together to facilitate the exchange of goods and services. The trading platform is usually owned and operated by a third party.
Electronic commerce offers cost saving opportunities by simply improving market efficiency. Each B2B method has advantages for specific types of business. For instance, a public exchange is an efficient way to procure raw materials for manufacturing, but it is not an efficient way to sell office supplies to retailers. The following explanation gives examples of the most applicable use for each EC method.
Sell-side Marketplace
The sell-side model is a powerful sales tool suited for companies with a good reputation and name-brand recognition (e.g. IBM). It is an excellent sales channel for a manufacturer (e.g. Dell), a distributor (e.g. www.avnet.com ) or a retailer (e.g. www.bigbox.com ). The seller can customize electronic catalogues for buyers at different levels, hold forward auctions ( www.dellauction.com ) or use third party auction sites such as Overstock.com to liquidate excess inventory. The sell-side model is also well suited to customization. Vendors can easily allow buyers to specify or self-configure products to meet their needs with fewer misunderstandings and faster order fulfillment.
Buy-side Marketplace
The predominant method of commerce in the buy-side model is a reverse auction. A company purchasing items places a request for proposal (RFQ) on its website or in a third party bidding marketplace. Then sellers, usually pre-approved suppliers, submit bids electronically which are evaluated internally and successful bidders are notified. E-procurement is a type of buy-side marketing which uses reverse auctions, group purchasing and desktop purchasing.
Group purchasing combines many smaller orders from multiple buyers into a larger order. Especially popular in the health-care industry and in education, orders of smaller buyers are often aggregated by third party vendors which merits greater consideration and discounts from sellers.
Desktop purchasing refers to the aggregation of multiple vendors’ catalogues into an internal master catalogue which resides on the buyer’s server. This facilitates efficiency in purchasing when a company has many suppliers, but the quantities purchased from each are relatively small (e.g. office supplies). The U.K. Department for Environment, Food and Rural Affairs (www.defra.gov.uk ) implemented a desktop purchasing system and realized a savings of approximately $1.2 million due to improved efficiency.
Public Exchanges
An e-marketplace where many buyers and sellers (usually businesses) come together is called a public exchange or exchange. This type of EC is typically owned and operated by a third party and open to all businesses with product offerings or needs. Vertical e-marketplaces offer services particularly suited to the industry served. There are four basic types of exchanges[ii]:
· Vertical distributors for direct materials – materials used as inputs in manufacturing are traded in large quantities (systematic sourcing) with established business partners.
· Vertical exchanges for indirect materials – indirect materials in one industry are purchased on an as needed basis in an auction format where supply and demand are matched by the service provider.
· Horizontal distributors – a many-to-many e-marketplace where prices can be fixed or negotiated. Examples are EcEurope.com, Globalsources.com and www.alibaba.com .
· Functional exchange – services such as temporary help or storage space are traded on an as needed basis. Prices are dynamic and vary based on supply and demand.
These exchanges tend to function best under the following conditions:
· Products are commodities or near-commodities.
· Trading volumes are massive, relative to transaction costs.
· Products are relatively standardized and can be traded sight-unseen.
· Buyers and sellers are sophisticated enough to deal with dynamic pricing.
· Purchasing is often done on a spot/transactional basis.
· Logistics and fulfillment can be conducted by third-parties, often without revealing the identity of the seller or buyer.
· Demand and prices are volatile.
Business-to business electronic commerce is a tool to improve efficiency and profitability by increasing sales, improving delivery time, reducing mistakes, selling and advertising costs and administrative costs.
The following link, http://www.tradekey.com/index.html?action=aboutus_howtosell&w=780&h=525 , provides an excellent explanation of services offered on its B2B website.
___________________________________________________________________
[i] Turban, Leidner, Mclean and Wetherbe. Information Technology for Management . Danvers, Ma.: John Wiley & Sons, Inc., 2007.
[ii] Kaplan, Steven and Sawney, Mohanbir. "B2B E-Commerce Hubs: Towards a Taxonomy of Business Models." 1999.
Business to Business (B2B) applications comprise about 85% of electronic commerce (EC) volume.[i] B2B applications enable an organization to improve supply chains and partner relations through electronic relationships with its suppliers, distributors, customers and other partners. There are several ways that businesses use electronic commerce to develop these relationships.
The following list gives a brief explanation of the major B2B e-commerce methods:
· Sell-side corporate marketplace – the organization sells products or services to other organizations via their own e-marketplace or from a third party site. This model offers the seller great latitude in allowing the buyer to customize the product.
· Buy-side corporate marketplace – the organization buys needed products or services from sellers. This model is well suited for specific purchases where the company wants to evaluate offers from multiple vendors.
· Public exchange – brings many buyers and sellers (normally both businesses) together to facilitate the exchange of goods and services. The trading platform is usually owned and operated by a third party.
Electronic commerce offers cost saving opportunities by simply improving market efficiency. Each B2B method has advantages for specific types of business. For instance, a public exchange is an efficient way to procure raw materials for manufacturing, but it is not an efficient way to sell office supplies to retailers. The following explanation gives examples of the most applicable use for each EC method.
Sell-side Marketplace
The sell-side model is a powerful sales tool suited for companies with a good reputation and name-brand recognition (e.g. IBM). It is an excellent sales channel for a manufacturer (e.g. Dell), a distributor (e.g. www.avnet.com ) or a retailer (e.g. www.bigbox.com ). The seller can customize electronic catalogues for buyers at different levels, hold forward auctions ( www.dellauction.com ) or use third party auction sites such as Overstock.com to liquidate excess inventory. The sell-side model is also well suited to customization. Vendors can easily allow buyers to specify or self-configure products to meet their needs with fewer misunderstandings and faster order fulfillment.
Buy-side Marketplace
The predominant method of commerce in the buy-side model is a reverse auction. A company purchasing items places a request for proposal (RFQ) on its website or in a third party bidding marketplace. Then sellers, usually pre-approved suppliers, submit bids electronically which are evaluated internally and successful bidders are notified. E-procurement is a type of buy-side marketing which uses reverse auctions, group purchasing and desktop purchasing.
Group purchasing combines many smaller orders from multiple buyers into a larger order. Especially popular in the health-care industry and in education, orders of smaller buyers are often aggregated by third party vendors which merits greater consideration and discounts from sellers.
Desktop purchasing refers to the aggregation of multiple vendors’ catalogues into an internal master catalogue which resides on the buyer’s server. This facilitates efficiency in purchasing when a company has many suppliers, but the quantities purchased from each are relatively small (e.g. office supplies). The U.K. Department for Environment, Food and Rural Affairs (www.defra.gov.uk ) implemented a desktop purchasing system and realized a savings of approximately $1.2 million due to improved efficiency.
Public Exchanges
An e-marketplace where many buyers and sellers (usually businesses) come together is called a public exchange or exchange. This type of EC is typically owned and operated by a third party and open to all businesses with product offerings or needs. Vertical e-marketplaces offer services particularly suited to the industry served. There are four basic types of exchanges[ii]:
· Vertical distributors for direct materials – materials used as inputs in manufacturing are traded in large quantities (systematic sourcing) with established business partners.
· Vertical exchanges for indirect materials – indirect materials in one industry are purchased on an as needed basis in an auction format where supply and demand are matched by the service provider.
· Horizontal distributors – a many-to-many e-marketplace where prices can be fixed or negotiated. Examples are EcEurope.com, Globalsources.com and www.alibaba.com .
· Functional exchange – services such as temporary help or storage space are traded on an as needed basis. Prices are dynamic and vary based on supply and demand.
These exchanges tend to function best under the following conditions:
· Products are commodities or near-commodities.
· Trading volumes are massive, relative to transaction costs.
· Products are relatively standardized and can be traded sight-unseen.
· Buyers and sellers are sophisticated enough to deal with dynamic pricing.
· Purchasing is often done on a spot/transactional basis.
· Logistics and fulfillment can be conducted by third-parties, often without revealing the identity of the seller or buyer.
· Demand and prices are volatile.
Business-to business electronic commerce is a tool to improve efficiency and profitability by increasing sales, improving delivery time, reducing mistakes, selling and advertising costs and administrative costs.
The following link, http://www.tradekey.com/index.html?action=aboutus_howtosell&w=780&h=525 , provides an excellent explanation of services offered on its B2B website.
___________________________________________________________________
[i] Turban, Leidner, Mclean and Wetherbe. Information Technology for Management . Danvers, Ma.: John Wiley & Sons, Inc., 2007.
[ii] Kaplan, Steven and Sawney, Mohanbir. "B2B E-Commerce Hubs: Towards a Taxonomy of Business Models." 1999.
Tuesday, September 16, 2008
Overcoming Barriers To Intranet Usability
Overcoming Barriers To Intranet Usability
Organizations have invested millions in creating effective websites but the corporate intranet has suffered from chronic under-capitalization. In his article in the Knowledge Management Review, Mar/Apr 2007, p. 6-7, Dave Wallace proposes that senior management has a lot to learn about the use of an intranet as a strategic tool. An intranet is a network designed to serve the informational needs of an organization. This network would support communication and collaboration within the company and connect to the internet to facilitate e-commerce activities and it could connect to an extranet to share secure business information with suppliers, partners and customers.
Company intranets are being used extensively by employees for communication and resource gathering but the technology could be used much more effectively. Senior managers within most companies simply don’t know how many people are using the intranet, what they are using it for or how they are using it. The channel should provide better internal communication, employee engagement and improved efficiency through greater support for day-to-day work. The first step to improvement is to conduct a detailed study with users to better understand how, when and why they use the intranet.
Information overload is a problem on most systems. Some large intranet systems may have over a million pages. The principles of good design, use of white space, clear headings and content and keep it simple make a more effective portal. Ease of navigation and user-friendly pages that keep the user focused on content rather than distractions is important to achieving objectives.
It is helpful to establish a cross-functional steering group composed of senior managers and system engineers to oversee the design of key components of the intranet. One-on-one interviews sitting across from users should be conducted. Sitemaps of the information architecture must be developed to verify that user journeys represent the quickest possible path to accomplishing the task. Good access to company communication via the intranet is a powerful tool that is often under-utilized. Senior management can achieve more with less effort through the effective use of intranet communications. Ideally the intranet connects organizational strategic objectives with user needs.
Organizations have invested millions in creating effective websites but the corporate intranet has suffered from chronic under-capitalization. In his article in the Knowledge Management Review, Mar/Apr 2007, p. 6-7, Dave Wallace proposes that senior management has a lot to learn about the use of an intranet as a strategic tool. An intranet is a network designed to serve the informational needs of an organization. This network would support communication and collaboration within the company and connect to the internet to facilitate e-commerce activities and it could connect to an extranet to share secure business information with suppliers, partners and customers.
Company intranets are being used extensively by employees for communication and resource gathering but the technology could be used much more effectively. Senior managers within most companies simply don’t know how many people are using the intranet, what they are using it for or how they are using it. The channel should provide better internal communication, employee engagement and improved efficiency through greater support for day-to-day work. The first step to improvement is to conduct a detailed study with users to better understand how, when and why they use the intranet.
Information overload is a problem on most systems. Some large intranet systems may have over a million pages. The principles of good design, use of white space, clear headings and content and keep it simple make a more effective portal. Ease of navigation and user-friendly pages that keep the user focused on content rather than distractions is important to achieving objectives.
It is helpful to establish a cross-functional steering group composed of senior managers and system engineers to oversee the design of key components of the intranet. One-on-one interviews sitting across from users should be conducted. Sitemaps of the information architecture must be developed to verify that user journeys represent the quickest possible path to accomplishing the task. Good access to company communication via the intranet is a powerful tool that is often under-utilized. Senior management can achieve more with less effort through the effective use of intranet communications. Ideally the intranet connects organizational strategic objectives with user needs.
Tuesday, September 9, 2008
Information Systems Support Bayer's Mission and Goals
A2-1 Information Systems to Support Bayer’s Mission and Goals
Bayer is a global enterprise with core competencies in the fields of health care, nutrition and high-tech materials. Bayer’s stated mission is “to create products and services designed to benefit people and improve their quality of life.” This mission statement underscores its willingness as an inventor company to help shape the future and to come up with innovations that benefit humankind. Bayer’s goals are to create an enterprise that is keenly focused on its customers, its strengths, its potential and the markets of the future.
Strategic Activities: Bayer has carried out a strategic realignment, placing its businesses into three subgroups that operate virtually independently and are fully aligned to their respective markets. Each group is supported by competent service companies. The company intends to focus on the areas of health care, nutrition, high-tech materials. Of special importance are new products emerging from active substance research, the consumer health business, the growth markets of Asia and new areas such as biotechnology and nanotechnology. Bayer has an extensive network of external partners and long-term alliances, such as those with biotechnology companies which strengthens its research platform and offers attractive business opportunities in the markets of the future. Its research and development are directed toward therapeutic areas where there is particular scope for innovation and where it already has successful products and/or promising product developments. It believes that biotechnologically derived active ingredients have considerable growth potential. It also plans to further expand the successful business in products for the companion animals market. Bayer plans to systematically exploit opportunities for both internal and external growth.
Operational Activities: Bayer’s operations revolve around its core principles as an inventor company. Each of the three subgroups operates as independent entities working toward a common goal: to create products that benefits people and improves quality of life. The company is an established international supplier of IT-based administrative, commercial and scientific services. Bayer Business Services has bundled all the related services in its core area of IT Infrastructure and Applications. The experts at IT Infrastructure and Applications ( http://www.bayerbbs.de/english/solutions-services/it-infrastructure-and-applications.html ) provide comprehensive and qualified consulting on all aspects of corporate processes. They implement applications for all major core business processes and provide application service for more than 60 IT systems (most based on SAP) with more than 60,000 users. The unit also maintains a global data network with data centers on three continents, provides PCs and devices for landline and mobile telephony, and sets up telephone and computer networks. Based on the IP telephony infrastructure, global communications solutions are installed and maintained. All services include comprehensive support.
Managerial Activities: The mission of providing benefit to people and improving the quality of life also guides management activities. A core element of its corporate strategy is rigorous value management. Performance-related compensation systems reward and incentivize the achievement of value-creation targets. Customers remain the focus of activities but employees are also highly valued. Common values and leadership principles form the basis for day-to-day activities. The organizational structure encourages individual responsibility and entrepreneurship. The company “places paramount importance on living our values in our work. The leadership principles on which we assess our managers are therefore based on these values.”
Bayer is using Information Technology (IT) in virtually all aspects of business operations. It is operating innovative host and web technologies as well as business systems based on SAP, supporting business processes in the areas of research & development, health, environment, occupational safety and quality (HSEQ), collaborative work processes, document and content management, performing contract and license management as well as scientific data searches and implementation and operation of scientific information systems for end users (currently 12,000 users worldwide). It is operating a “Customer Interaction Center” (CIC) from Bayer Business Services which collects data from a wide variety of source systems and presents it on screen. It is using virtualization technology enabling the resources of IT systems to be divided up creating high system availability, server load optimization and cost-effective server structures. Bayer Business Services is developing solutions for information integration, collaboration and activity management as well as research into how to best utilize RFID technology. Bayer is an example of a company that is truly focused on its mission: to create products and services designed to benefit people and improve their quality of life.
Bayer is a global enterprise with core competencies in the fields of health care, nutrition and high-tech materials. Bayer’s stated mission is “to create products and services designed to benefit people and improve their quality of life.” This mission statement underscores its willingness as an inventor company to help shape the future and to come up with innovations that benefit humankind. Bayer’s goals are to create an enterprise that is keenly focused on its customers, its strengths, its potential and the markets of the future.
Strategic Activities: Bayer has carried out a strategic realignment, placing its businesses into three subgroups that operate virtually independently and are fully aligned to their respective markets. Each group is supported by competent service companies. The company intends to focus on the areas of health care, nutrition, high-tech materials. Of special importance are new products emerging from active substance research, the consumer health business, the growth markets of Asia and new areas such as biotechnology and nanotechnology. Bayer has an extensive network of external partners and long-term alliances, such as those with biotechnology companies which strengthens its research platform and offers attractive business opportunities in the markets of the future. Its research and development are directed toward therapeutic areas where there is particular scope for innovation and where it already has successful products and/or promising product developments. It believes that biotechnologically derived active ingredients have considerable growth potential. It also plans to further expand the successful business in products for the companion animals market. Bayer plans to systematically exploit opportunities for both internal and external growth.
Operational Activities: Bayer’s operations revolve around its core principles as an inventor company. Each of the three subgroups operates as independent entities working toward a common goal: to create products that benefits people and improves quality of life. The company is an established international supplier of IT-based administrative, commercial and scientific services. Bayer Business Services has bundled all the related services in its core area of IT Infrastructure and Applications. The experts at IT Infrastructure and Applications ( http://www.bayerbbs.de/english/solutions-services/it-infrastructure-and-applications.html ) provide comprehensive and qualified consulting on all aspects of corporate processes. They implement applications for all major core business processes and provide application service for more than 60 IT systems (most based on SAP) with more than 60,000 users. The unit also maintains a global data network with data centers on three continents, provides PCs and devices for landline and mobile telephony, and sets up telephone and computer networks. Based on the IP telephony infrastructure, global communications solutions are installed and maintained. All services include comprehensive support.
Managerial Activities: The mission of providing benefit to people and improving the quality of life also guides management activities. A core element of its corporate strategy is rigorous value management. Performance-related compensation systems reward and incentivize the achievement of value-creation targets. Customers remain the focus of activities but employees are also highly valued. Common values and leadership principles form the basis for day-to-day activities. The organizational structure encourages individual responsibility and entrepreneurship. The company “places paramount importance on living our values in our work. The leadership principles on which we assess our managers are therefore based on these values.”
Bayer is using Information Technology (IT) in virtually all aspects of business operations. It is operating innovative host and web technologies as well as business systems based on SAP, supporting business processes in the areas of research & development, health, environment, occupational safety and quality (HSEQ), collaborative work processes, document and content management, performing contract and license management as well as scientific data searches and implementation and operation of scientific information systems for end users (currently 12,000 users worldwide). It is operating a “Customer Interaction Center” (CIC) from Bayer Business Services which collects data from a wide variety of source systems and presents it on screen. It is using virtualization technology enabling the resources of IT systems to be divided up creating high system availability, server load optimization and cost-effective server structures. Bayer Business Services is developing solutions for information integration, collaboration and activity management as well as research into how to best utilize RFID technology. Bayer is an example of a company that is truly focused on its mission: to create products and services designed to benefit people and improve their quality of life.
Sunday, September 7, 2008
SOA Makes The Modern Consumer Economy Possible
SOA Makes The Modern Consumer Economy Possible
Service Oriented Architecture (SOA) illustrates how Information Technology (IT) challenges are being met with new and innovative solutions. The problem is that many companies are constrained by their current IT infrastructure which is incapable of supporting the level of flexibility needed in rapidly changing business environments. Much of the intellectual capital and other corporate resources are tied up in these older inflexible systems. There is also a huge amount of IT resources (manpower) used to shuffle data around in these older systems rather than on newer Web-based technologies.
The concept of SOA is to reuse and reconnect existing IT assets and make resources available to participants via a network. The network links the Web service consumer to the Web service provider through a service broker. One advantage is that organizations can offer independent services in a standardized way using SOA. Another benefit is that implementation of new products and services can be accomplished quickly and at a lower cost than older technologies.
Web-based credit service companies operate in a very competitive environment. Opportunities to create competitive advantage are often linked to its ability to immediately respond to market demands as well as meet existing customers’ expectations. It is easy to understand the implications of SOA when viewed in relation to a successful Web-based company.
TrueCredit is one of those companies. It is a subsidiary of TransUnion, an international credit bureau (http://www.transunion.com/corporate/aboutUs/aboutUs.page). The company was founded in 1968, is headquartered in Chicago, provides solutions to more than 50,000 businesses worldwide, reaches businesses and consumers in 25 countries on 5 continents and maintains secure credit histories on an estimated 500 million consumers around the globe.
TransUnion solutions comprise four distinct areas of expertise. Those are information services, real estate services, international services and consumer services.
It provides information services with enterprise-wide decisioning technologies, advanced analytics and specialized market expertise, leveraged data capabilities to help clients meet their objectives and make better decisions. Services offered are marketing, fraud and identity management, risk management and collections management. Key markets include automotive, collections, communications, financial services, healthcare, insurance and retail.
Real Estate Services are offered to mortgage lenders to simplify each step of the residential lending process by working with them to understand their operations and integrate automated Web solutions allowing them to acquire more qualified applicants and reduce processing delays.
International Services focuses on domestic companies expanding overseas and international companies in need of powerful information resources. Consulting services for developing credit reporting infrastructures, debt collection and direct marketing analysis are its key components.
The consumer services division develops and markets interactive credit-based products and services to consumers and the nation's largest financial institutions. It offers credit monitoring and identity theft protection products for consumers, private-label, online and offline credit management solutions for financial institutions, marketing analysis and comprehensive direct marketing agency services.
The existence of an individual's updated credit file makes it possible for businesses to make nearly instantaneous, objective credit and insurance decisions. Processes that formerly took days or weeks may now be completed in minutes without question of personal prejudice or subjective judgment. The credit database also makes it possible for credit card issuers and other businesses to target their offers to consumers.
SOA allows TransUnion to provide timely information to its 50,000 business customers while operating various other services focused on different market segments using essentially the same data. It is important to be able to serve all of these users simultaneously since the subscribers to this service, primarily banks and lending institutions, require instantaneous credit reporting. The global information system required by TransUnion would be costly and virtually impossible to implement without SOA. SOA gives TransUnion a definite competitive advantage.
Immediate access to current credit information makes the modern consumer economy possible.
Service Oriented Architecture (SOA) illustrates how Information Technology (IT) challenges are being met with new and innovative solutions. The problem is that many companies are constrained by their current IT infrastructure which is incapable of supporting the level of flexibility needed in rapidly changing business environments. Much of the intellectual capital and other corporate resources are tied up in these older inflexible systems. There is also a huge amount of IT resources (manpower) used to shuffle data around in these older systems rather than on newer Web-based technologies.
The concept of SOA is to reuse and reconnect existing IT assets and make resources available to participants via a network. The network links the Web service consumer to the Web service provider through a service broker. One advantage is that organizations can offer independent services in a standardized way using SOA. Another benefit is that implementation of new products and services can be accomplished quickly and at a lower cost than older technologies.
Web-based credit service companies operate in a very competitive environment. Opportunities to create competitive advantage are often linked to its ability to immediately respond to market demands as well as meet existing customers’ expectations. It is easy to understand the implications of SOA when viewed in relation to a successful Web-based company.
TrueCredit is one of those companies. It is a subsidiary of TransUnion, an international credit bureau (http://www.transunion.com/corporate/aboutUs/aboutUs.page). The company was founded in 1968, is headquartered in Chicago, provides solutions to more than 50,000 businesses worldwide, reaches businesses and consumers in 25 countries on 5 continents and maintains secure credit histories on an estimated 500 million consumers around the globe.
TransUnion solutions comprise four distinct areas of expertise. Those are information services, real estate services, international services and consumer services.
It provides information services with enterprise-wide decisioning technologies, advanced analytics and specialized market expertise, leveraged data capabilities to help clients meet their objectives and make better decisions. Services offered are marketing, fraud and identity management, risk management and collections management. Key markets include automotive, collections, communications, financial services, healthcare, insurance and retail.
Real Estate Services are offered to mortgage lenders to simplify each step of the residential lending process by working with them to understand their operations and integrate automated Web solutions allowing them to acquire more qualified applicants and reduce processing delays.
International Services focuses on domestic companies expanding overseas and international companies in need of powerful information resources. Consulting services for developing credit reporting infrastructures, debt collection and direct marketing analysis are its key components.
The consumer services division develops and markets interactive credit-based products and services to consumers and the nation's largest financial institutions. It offers credit monitoring and identity theft protection products for consumers, private-label, online and offline credit management solutions for financial institutions, marketing analysis and comprehensive direct marketing agency services.
The existence of an individual's updated credit file makes it possible for businesses to make nearly instantaneous, objective credit and insurance decisions. Processes that formerly took days or weeks may now be completed in minutes without question of personal prejudice or subjective judgment. The credit database also makes it possible for credit card issuers and other businesses to target their offers to consumers.
SOA allows TransUnion to provide timely information to its 50,000 business customers while operating various other services focused on different market segments using essentially the same data. It is important to be able to serve all of these users simultaneously since the subscribers to this service, primarily banks and lending institutions, require instantaneous credit reporting. The global information system required by TransUnion would be costly and virtually impossible to implement without SOA. SOA gives TransUnion a definite competitive advantage.
Immediate access to current credit information makes the modern consumer economy possible.
Tuesday, September 2, 2008
Friday, August 29, 2008
Information Technology Does Not Matter
There are certainly more than a few businesses and individuals that claim Information Technology (IT) does not matter. Many small and medium sized companies use tried and true methods of manual bookkeeping, order processing, packing and shipping, marketing, etc. with great success. Often there is resistance to converting to more costly and complicated methods of performing simple tasks. Computers are seen as a waste of time and money that can better be spent producing product and profit.
If the focus is on profitability, computers offer a huge distraction to that objective. Employees use them to play games, communicate with friends and conduct personal business on company time. The argument that computers save time and improve productivity is offset by the inability of management to control employees use of the resource.
These are just a few of the reasons given by companies that refuse to implement information systems (IS) into their business. Although the arguments against using computers in the workplace are valid, most of the problems are inherent to business in general and are not exclusive to the IT environment. For instance, there are always challenges in movtivating employees and providing a productive work environment. Company policies must address the human tendency toward laziness regardless of the implementation of IT.
There is also validity to the argument that IT is expensive to implement even though the price per byte is lower than ever. The very act of converting from old methods to new methods of operating is disruptive to the flow of business. In many cases, the conversion may take years to achieve. During that time there are costs incurred for duplicating efforts. Even after successful installation, there are occasional system failures and further disruption to business. Many companies choose to continue using pen and paper because the risk of loosing control is greater than the benefit of increased productivity.
While there are challenges to the transition from antiquated methods of operation to a computer based system, it is impossible to deny that IT has affected the way business is done everywhere. Even the companies which have resisted implementing information systems in house cannot deny that IT has changed the very landscape of the entire business world. From transportation to banking, from communication to manufacturing and from energy to government, all aspects of business and life in general are affected by IT. Even the "Mom and Pop" store on the corner is dependent on IT for their business. Credit card receipts, UPS shipments and electricity would not be available without the benefits of IT.
Information technology has become so ubiquitous that we take it for granted. Virtually every aspect of life is touched by its presence. IT is essential to every car, appliance and TV broadcast. Even Maslow's basic needs of food, clothing and shelter are dependent today on IT. As IT becomes more of a commodity, its effects will be even less noticeable, but no less profound. It is impossible to imagine life as we know it without information technology.
If the focus is on profitability, computers offer a huge distraction to that objective. Employees use them to play games, communicate with friends and conduct personal business on company time. The argument that computers save time and improve productivity is offset by the inability of management to control employees use of the resource.
These are just a few of the reasons given by companies that refuse to implement information systems (IS) into their business. Although the arguments against using computers in the workplace are valid, most of the problems are inherent to business in general and are not exclusive to the IT environment. For instance, there are always challenges in movtivating employees and providing a productive work environment. Company policies must address the human tendency toward laziness regardless of the implementation of IT.
There is also validity to the argument that IT is expensive to implement even though the price per byte is lower than ever. The very act of converting from old methods to new methods of operating is disruptive to the flow of business. In many cases, the conversion may take years to achieve. During that time there are costs incurred for duplicating efforts. Even after successful installation, there are occasional system failures and further disruption to business. Many companies choose to continue using pen and paper because the risk of loosing control is greater than the benefit of increased productivity.
While there are challenges to the transition from antiquated methods of operation to a computer based system, it is impossible to deny that IT has affected the way business is done everywhere. Even the companies which have resisted implementing information systems in house cannot deny that IT has changed the very landscape of the entire business world. From transportation to banking, from communication to manufacturing and from energy to government, all aspects of business and life in general are affected by IT. Even the "Mom and Pop" store on the corner is dependent on IT for their business. Credit card receipts, UPS shipments and electricity would not be available without the benefits of IT.
Information technology has become so ubiquitous that we take it for granted. Virtually every aspect of life is touched by its presence. IT is essential to every car, appliance and TV broadcast. Even Maslow's basic needs of food, clothing and shelter are dependent today on IT. As IT becomes more of a commodity, its effects will be even less noticeable, but no less profound. It is impossible to imagine life as we know it without information technology.
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