Chapter 14 : Creating Collaboration 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
♦CONTENT SHARING THROUGH OPEN SOURCING
♦USER CONTRIBUTED CONTENT
♦COLLABORATION INSIDE THE ORGANIZATION
♦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 13 : 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 Benifit :
♦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

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 between SCM, CRM and ERP Applications

Chapter 11 : Building A Customer - Centric Organization - CRM

CUSTOMER RELATIONSHIP MANAGEMENT
♦Customer Relationship Management (CRM) is a means of managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability.

RECENCY, FREQUENCY AND MONETARY VALUE

Organizations can find their most valuable customers through “RFM”
♦How recently a customer purchased item.
♦How frequently a customer purchased item.
♦How much a customer spends on each purchase.

EVOLUTION OF CRM

Three phase in evolution of CRM:
♦Reporting
♦Analyzing
♦Predicting

OPERATIONAL AND ANALYTICAL CRM

Operational CRM
♦support traditional processing day-to-day front-office operation or system that deal directly with the customers.

Analytical CRM
♦support back-office operation and strategic analysis and includes all systems that do not deal directly to the customers.

CUSTOMER RELATIONSHIP MANAGEMENT SUCCESS FACTORS

CRM success factors include:

♦Clearly communicate the CRM strategy.
♦Define information needs and flows.
♦Build an integrated view of the customer.
♦Implement in iterations.
♦Scalability for organizational growth.

Chapter 10 : Extending The Organization -SCM

SUPPLY CHAIN MANAGEMENT

The supply chain has three main links:

♦Materials flow from suppliers and their “upstream” suppliers at all levels.

♦Transformation of materials into semifinished and finished products through the organization’s own production process.

♦Distribution of products to customers and their “downstream” customers at all levels.

Organizations must embrace technologies that can effectively manage supply chains.

Supply chain management improves ways for companies to find the raw components they need to make a product or service, manufacture that product or service, and deliver it to customers.

Plan
♦This is the strategic portion of supply chain management. A company must have a plan for managing all the resources that go toward meeting customer demand for products or services.

Source
♦Companies must carefully choose reliable suppliers that will deliver goods and services required for making products.

Make
♦This is the step where companies manufacture their products or services. This can include scheduling the activities necessary for production, testing, packaging, and preparing for delivery.

Deliver
♦This step is commonly referred to as logistics. Logistics is the set of processes that plans for and controls the efficient and effective transportation and storage of supplies from suppliers to customers. 

Return
♦This is typically the most problematic step in the supply chain. Companies must create a network for receiving defective and excess products and support customers who have problems with delivered products.

Information Technology’s Role in the Supply Chain

IT’s primary role is to create integrations or tight process and information linkages between functions within a firm.

Factors Driving SCM

Visibility

♦more visible models of different ways to do things in the supply chain have emerged. High visibility in the supply chain is changing industries, as Wal-Mart demonstrated.

♦Supply chain visibility – the ability to view all areas up and down the supply chain.

♦Bullwhip effect – occurs when distorted product demand information passes from one entity to the next throughout the supply chain.

Consumer behavior

♦companies must respond to demanding customers through supply chain enhancements.

♦Companies can respond faster and more effectively to consumer demands through supply chain enhances.

♦Demand planning software – generates demand forecasts using statistical tools and forecasting techniques.

Competition

♦increased competition makes any organization that is ignoring its supply chain at risk of becoming obsolete.

♦Supply chain planning (SCP) software– uses advanced mathematical algorithms to improve the flow and efficiency of the supply chain.

♦Supply chain execution (SCE) software – automates the different steps and stages of the supply chain.

Speed

♦These system raise the accuracy, frequency, and speed of communication between supplier and customers, as well as between internal users.

Chapter 9 : Enabling The Organization - Decision Making

REASONS for the growth of decision-making information systems:

♦People need to analyze large amounts of information.
♦People must make decisions quickly.
♦People must protect the corporate asset of organizational information
♦People must apply sophisticated analysis techniques, such as modeling and forecasting, to       make
   good decisions.


Model
♦a simplified representation or abstraction of reality IT systems in an enterprise

TRANSACTION PROCESSING SYSTEM
♦Moving up through the organizational pyramid users move from requiring transactional information to analytical information.

Transaction processing system - the basic business system that serves the operational level (analysts) in an organization.

Online transaction processing (OLTP)
♦the capturing of transaction and event information using technology to (1) process the information according to defined business rules, (2) store the information, (3) update existing information to reflect the new information.

Online analytical processing (OLAP)
♦the manipulation of information to create business intelligence in support of strategic decision making


DECISION SUPPORT SYSTEM
Decision support system (DSS)
♦models information to support managers and business professionals during the decision-making process.

Three quantitative models used by DSSs include:
♦Sensitivity analysis
♦What-if analysis
♦Goal-seeking analysis

Interaction between a TPS and a DSS

EXECUTIVE INFORMATION SYSTEM
Executive information system (EIS)
♦ A specialized DSS that supports senior level executives within the organization.

Interaction between a TPS and an EIS

ARTIFICIAL INTELLIGENCE
Intelligent system – various commercial applications of artificial intelligence.
Artificial intelligence (AI) – simulates human intelligence such as the ability to reason and learn.
Advantages : can check info on competitor.

Four most common categories of AI include:
♦Expert system
♦Neural Network
♦Genetic algorithm
♦Intelligent agent

DATA MINING
♦Data-mining software includes many forms of AI such as neural networks and expert systems.

Common forms of data-mining analysis capabilities include:
♦Cluster analysis
♦Association detection
♦Statistical analysis


CLUSTER ANALYSIS
♦Cluster analysis – a technique used to divide information set into mutually exclusive groups such that the members of each group are as close together as possible to one another and the different groups are as far apart as possible.

CRM systems depend on cluster analysis to segment customer information and identify behavioural traits.


ASSOCIATION PROTECTION
♦Association detection – reveals the degree to which variables are related and the nature and frequency of these relationships in the information.

  Market basket analysis – analyses such items as Web sites and checkout scanner information to detect customers’ buying behaviour and predict future behaviour by identifying affinities among customers’ choices of products and services.


STATISTICAL ANALYSIS
♦Statistical analysis – performs such functions as information correlations, distributions, calculations, and variance analysis.
Forecast – predictions made on the basis of time-series information.
     Time-series information – time-stamped information collected at a particular frequency.

Chapter 8 : Accessing Organizational Information - Data Warehouse

Accessing Organizational Information

The company uses data warehouse information to perform the following :

♦Base labor budgets on actual number of guests served per hour.

♦Develop promotional sale item analysis to help avoid losses from overstocking or under stocking inventory.

♦Determine theoretical and actual cost of food and the use of ingredients.

History of Data Warehousing

In the 1990’s executives became less concerned with the day-to-day business operations and more concerned with overall business functions.

The data warehouse provided the ability to support decision making without disrupting the day-to-day operations, because:

Operational information is mainly current – does not include the history for better decision making.

Issue of quality information.

Without information history, it is difficult to tell how and why things change over time.

Data Warehouse Fundamentals

♦A data warehouse is a logical collection of information gathered from many different operational database that supports business analysis activities and decision making tasks.

♦Purpose of a data warehouse is to aggregate information throughout an organization into a single repository in such way that employees can make decisions and undertake business analysis activities.

♦Extraction, transformation, and loading (ETL) is a process that extracts information from internal and external databases, transforms the information using a common set of enterprise definitions, and loads the information into a data warehouse.

♦Data warehouse then send subsets of the information to data mart.

♦Data mart contains a subset of data warehouse information.

Model of Typical Data Warehouse

MULTIDIMENSIONAL ANALYSIS AND DATA MINING

Relational Database contain information in a series of two-dimensional tables.

In a data warehouse and data mart,

information is multidimensional,

it contains layers of columns and rows.

Dimension – a particular attribute of information.

Cube – common term for the representation of

multidimensional information.

Data mining is the process of analyzing data to

extract information not offered by the raw data alone.

Data-mining tool – uses a variety of techniques to find patterns and relationships in large volumes of information. 

INFORMATION CLEANSING OR SCRUBBING

An organization must maintain high-quality data in the data warehouse.

Information cleansing or scrubbing is a process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information.

Occur during ETL process and second on the information once it is in the data warehouse.

Contact information in an operational system.

Standardizing Customer name from Operational Systems.

Information cleansing activities.

Accurate and complete information.

Business Intelligence

Business intelligence (BI) refers to applications and technologies that are used to gather, provide access, analyze data, and information to support decision making effort.

ENABLING BUSINESS INTELLIGENCE

♦Competitive organizations accumulate business intelligence to gain sustainable competitive advantage, and they may regard such intelligence as a valuable core competence in some instances.

The principal BI enablers are technology, people, and culture. 

Chapter 7 : Storing Organizational Information Database

Rational Database Fundamentals
♦Database maintains information about various types of objects (inventory), events (transactions), people (employees), and places (warehouse).

Hierarchical Database Model
♦information is organized into a tree-like structure that allows repeating information using parent/child relationship such a way that it cannot have too many relationships.

Network Database Model
♦flexible way of representing objects and their relationships.

Relational Database model
♦type of database that stores information in the form of logically related two-dimensional tables.

ENTITIES AND ATTRIBUTES
♦An entity in the relational database model is a person, place, thing, transaction, or event about which information is stored.
A table in relational database model is a collection of similar entities.
Attributes also called column or fields, are characteristics or properties of an entity class.

KEYS AND RELATIONSHIPS
♦A primary key is a field (or group of fields) that uniquely identifies a given entity in a table.
The primary keys are important because they provide a way of distinguish each entity in a table.
A foreign key in the relational database model is a primary key of one table that appears as an attribute in another table and acts to provide a logical relationships between the to tables.


Relational Database Advantages

From a business perspective, database information offers many advantages, including :

INCREASE FLEXIBILITY

Handle changes quickly and easily.
Provide users with different views.
Have only one physical view.

The physical view of information deals with the physical storage of information on a storage device such as hard disk.

Have multiple logical views.
The logical view of information focuses on how user logically access information to meet their particular business needs.

INCREASE SCALABILITY AND PERFORMANCE
Only a database could “scale” to handle the massive volumes of information and the large number of users required for the successful.

Scalability refers to how well a system can adapt to increased demands.

Performance measures how quickly the system performs a certain process or transaction.

REDUCE INFORMATION REDUNDANCY
Redundancy is the duplication of information, or storing the same information in multiple places.
The primary problem with redundant information is that it is often inconsistent, which makes it difficult to determine which values are the most current or most accurate.

INCREASE INFORMATION INTEGRITY (QUALITY)
Information integrity – measures the quality of information.
Integrity constraint – rules that help ensure the quality of information
            - Relational integrity constraint
            - Business-critical integrity constraint

INCREASED INFORMATION SECURITY
Information is an organizational asset and must be protected
Databases offer several security features including:
Password – provides authentication of the user
Access level – determines who has access to the different types of information
Access control – determines types of user access, such as read-only access


Database Management System
♦A database management system (DBMS) is software through which users and application programs interact with a database.

The user sends requests to the DBMS and the DBMS performs the actual manipulation of the information in the database.

Two ways that users can interact with DBMS : (1) Directly and (2)  indirectly.

Interacting Directly and Indirectly with a Database through a DBMS

DATA-DRIVEN WEBSITES
♦The pages on website must change according to what a site visitor is interested to browsing.

♦A data-driven website is an interactive website kept constantly updated and relevant to the needs of customers through the use of a database.

Wikipedia - Data-Driven Website

Data-Driven Website Advantages

Integrating Information among Multiple Databases
Integration
♦allows separate systems to communicate directly with each other.

Forward integration
♦takes information entered into a given system and sends it automatically to all downstream systems and processes.

Backward integration
♦takes information entered into a given system and sends it automatically to all upstream systems and processes.

 A Forward and Backward Customer Information Integration Example

Building a central repository specifically for integrated information.
♦User can create, update, and delete customer information only in the central customer information database.

Integrating Customer Information among Database