Tuesday, 9 July 2013

chapter 4

Measuring the success of strategy initiative 

 key performance indicator
measure that are tied to business drivers
> metrics are detailed measures that feed KPIs

Efficiency and Effectiveness

Efficiency IT metric measures the performance of the IT system itself including throughput, speed, and availability

Effectiveness IT metric measures the impact IT has on business processes and activities including customer satisfaction, conversion rates, and sell though increases

Benchmarking baselining metrics

benchmark baseline values the system seek to attain
benchmarking a process of continuously measuring system results, comparing those results to optimal system performance and identifying steps and procedures to improve system performance

the interelationships of efficiency and effectiveness IT metrics

 efficiency IT metrics focus on technology and include :

 > throughput
     amount of information that can travel through a system at any point
 > transaction speed
     amount of time a system takes to perform a transaction

 > system availability
     number of hours a system is available for users

 > information accuracy
     extent to which a system generates the correct result when executing the same transaction numerous times

 > web traffic 
     a host of benchmarks such as the number of pages views, the number of unique visitors, and the average
     time spent viewing a web page

 > response time
     times to respond to user interaction such as a mouse click

 effectiveness IT metrics focus on an organization's goal, strategies, and objectives and include :

chapter 3

      Chapter 3


      Supply chain management 

        Involves the management of information flows between and among stages in a supply chain to maximize
        total supply chain effectiveness and profitability

         4 basic components of supply chain management :

Ø  Strategy  for managing all resources to meet customer demand
Ø  Partner   throughout the supply chain that deliver finished products, raw materials, and services
Ø  Operation  schedule for production activities

Ø  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 product  or services 
- create entry barriers thereby reducing the threat of new entrants

customer relationship management 
      involves  managing all aspect of a customer's relationship with an organization to increase customers loyalty and retention and an organization's profitability  

CRM  is not just technology, but a strategy process, and business goal that an organization must
 embrace on an enterprisewide level

can enable an organization to :
- identify types of customers
- designed individual customer marketing campaign 
- treat each customer as an individual 
- understand customer buying behaviors

Business process reengineering

Business process is a standardized set of activities that accomplish a specific  task, such as processing a
 customer's order 

Business process reengineering the analysis and redesign of workflow within and between enterprise

seven principles of business process reengineering :
- organize around outcomes, not tasks
- identify all the organization's process and prioritize in order of redesign urgency
- integrate information processing work into the real work that produces the information
- treat geographically dispersed resources as though they were centralized
- link parallel activities in the workflow instead of just integrating their results
- put the decision point where the work is performed and build control into the process
- capture information once and at the sources

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 a airplane which ignore the road completely

-- types of change an organization can achieve along with the magnitudes of change and the potential business

pitfall of BPR 

> fails to keep up with competitors

Enterprise resources planning
integrates all departments and functions throughout an organization into a single IT system so that employees can make decision by viewing enterprisewide information on all business operations.
 the keyword in ERP is enterprise

chapter 2


What is competitive advantage? The answer is
·              A product or service that an organization’s place a greater value on than similar offering from competitor       

Buyer power

·  High when people have many choice of whom to buy
·  Low when choice are few
·  To reduce buyer power an organization must make it more attractive to buy from the 
·   Best practise of IT

The competitive environment

    Customers can grow large and powerful as a result of their market share. Many choices of whom to buy from. Low when comes to limited items. Example, used loyalty programs like Jusco card.


        Ý   When buyers have few choices of whom to buy from
        ß      when their choices are many

Threat of substitute product & service

High when there are many alternative to a product or service
Low when there are few alternatives from which to choose
The treat of substitute
-          Customer can use different product to fulfil the same need. Example: electronic product
-          Switching cost : cost can make customer reluctant to switch product or service

Treat 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 organization and must be offered by entering organization to compete and survive

Competitive environment

-          The treats of new entrants forces top management to monitor the trends, especially in technology, that         might give rise to new competitors
Example : new bank, online paying bills, acc monitoring

Rivalry among existence competitors

High when competition is fierce in a market
Low  when competition is more complacent

Rivalry among existing firms

-          Existing competitors are not much of the treat. Typically each firm has found its niche
-          Change in management the rules of the game rise to serious threats

The three generics strategies

Cost leadership ( Low cost )

-          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

Differentiation ( High cost )

-          Create competitive advantage by distinguishing their product on one or more features important to their customers
-          Unique features or benefits may justify price differences and/or stimulate demand

Focused strategy ( Narrow market )

-          Target to a niche market
Concentrates on either cost leadership or differentiation

chapter 1

Information technology's roles in business
-  information technology is everywhere in business
- Today, people depend on technology in business
 for example : they are using computer, or fax to separate information

the impact information technology on business operations
 - organization typically operate bu functional areas or functional silos
- functional areas are interdependent

information technology basics

 information technology ( IT ) - a field concerned with the use of technology information in managing and processing information

management information system ( MIS ) - a general name for the business function and academic discipline covering the application of people, technologies, and procedures to solve business problem

when beginning to learn about information technology it is important to understand :


·       Raw facts that describe the characteristic of an event


·       Data converted into a meaningful and useful context

Business intelligence

·       Application and technologies that are used to support decision making effort


Ø People use information technology to work with information


 ü Information functional culture

Employees use information as a means of exercising influence or power over others.

 ü Information inquiring culture

Employees across department search for information to better understand the future and align themselves with current trend and new directions.

 ü Information discovery culture

Employees across department are open to new insight about crisis and radical changes and seek ways to create competitive advantages

 ü Information sharing culture

Employees across department trust each other to use information to improve performance

Friday, 28 June 2013


Nabilah esa. ini adalah belog pertamaku. Thanks to my beautiful big sister for helping me to create this blog. hehe. I maybe small, but tough enough to protect myself. Now or never. I'm a secret angles. wish me luck!