CHAPTER 12- SHELL CANADA FUELS PRODUCTIVITY WITH ERP

1.How did ERP help improve business operations at Shell?

 

ERP help improve business operations at Shell by operations that span from wells and mines, to processing plants, to oil trucks and to gas pumps. Rate For example, the ERP system has helped the company immensely in terms of reducing and streamlining the highly manual process of third-party contractors submitting repair information and invoices.

 

 

    2. How could extended ERP components help improve business operations at Shell?

 

- ERP solution solved these inadequacies by providing an integrated web-based service order, invoicing and payment submission system. Third-party contractors can enter service orders directly into Shell’s ERP system via the web easily and faster.

- Contractor’s monthly summarized invoices can be generated automatically and fed directly into ERP system’s account payable application for processing.

- Help speed up maintenance and repair operations at the company’s refineries.  

 

 

    3.What advice would you give Shell if it decided to choose a different ERP software solution?

 

It depends on the suppliers or contractors that want to search the Shell Company’s website. If the system that they choose can satisfy the user or the contractors the software can be proceed to use. If not Shell must use the ERP software that they already have. Must be remember, people want the easier work and if people already knows and common with the system before, they will make the work effective and efficiency. Changes can be made but not too complicated until exist the difficulty feel for them. 

4.  How can integrating SCM, CRM, and ERP help improve business operations at Shell?

 

- Shell will have a lot of suppliers to supply the materials that they want to sell. Therefore, Shell must determine the suitable supplier to give them the products such as supplier for junk food, water, petrol and else.

- Shell want built the good relation towards their customers by giving Shell card. Customers will use the card to get point. Then when the points become increase, Shell will give reward or present to their customers.

- For the ERP, Shell will have their own website to make the contractors easy to make any transactions, exchange, payments and else.

CHAPTER 10: EXTENDING THE ORGANIZATION- SUPPLY CHAIN MANAGEMENT

List and describe the component of a typical supply chain

• PLAN : REFER TO THE OVERALL STRATEGY OF SCM PROGRAM INCLUDING THE DEVELOPMENT OF SCM METRIC TO MONITOR.
• SOURCE: REFER TO THE SUPPLIER WHO WILL PROVIDE OF GOODS AND SERVICE NECESSARY FOR TO RUN BUSINESS.
• MANUFACTURING COMPONENT: EXECUTION OF PROCESSES NEEDED TO PRODUCED, TEST AND PACKAGE PRODUCT OR SERVICE.
• DELIVERY: REFER TO THE SYSTEM FOR RECEIVING ORDERS FROM CUSTOMER, DEVELOPING A NETWORK PF WAREHOUSES GETTING THE PRODUCT TO THE CUSTOMER AND RECEIVING PAYMENT FROM THEM.
• RETURN: SYSTEM OF PROCESSING CUSTOMER RETURN OR SUPPORTING CUSTOMER PROBLEM WITH THE PRODUCT THEY RECEIVED.

Describe the four changes resulting from advances in IT that are driving supply chain

visibility

• ABILITY TO VIEW ALL AREAS UP AND DOWN THE SUPPLY CHAIN
• BULL WHIP EFFECT OCCURS WHEN DISTORTED PRODUCT DEMAND INFORMATION PASSES FROM ONE ENTITY TO THE NEXT THROUGH THE SUPPLY CHAIN
• INFORMATION TECHNOLOGY ALLOWS ADDITIONAL VISIBILITY IN THE SUPPLY CHAIN.

Consumer behavior

• DEMAND PLANNING SOFTWARE GENERATES DEMAND FORECAST USING STATITICAL TOOLS AND FORECASTING TECHNIQUES
• ONES AN ORGANIZATION UNDERSTAND CUSTOMER DEMAND ITS EFFECT ON THE SUPPLY CHAIN IT CAN BEGGING TO ESTIMATE THE IMPACT THAT ITS SUPPLY CHAIN WILL HAVE ON ITS CUSTOMER AND ULTIMATELY THE ORGANIZATIONS PERFORMANCE

Competition

• SUPPLY CHAIN PLANNING SOFTWARE, USES ADVANCED MATHEMATICAL ALGORITHM TO IMPROVE THE FLOW AND EFFICIENCY OF THE SUPPLY CHAIN WHILE REDUCING INVENTORY.
• SUPPLY CHAIN EXECUTIVE (SCE) SOFTWARE AUTOMATES THE DIFFERENT SYSTEM AND STAGE OF THE SUPPLY CHAIN.

Speed

• NEW FORM OF SERVE, TELECOMMUNICATION ENABLING COMPANIES TO PERFORM ACTIVITIES THAT WERE ONCE NEVER THOUGHT POSSIBLE.
• ABILITY TO SATISFY CONTINUALLY CHANGING CUSTOMER REQUIREMENT EFFICIENCY, ACCURATELY AND QUICKLY.

Summarize the best practice for implementing a successful supply chain management system.

• MAKE THE SALE TO SUPPLIER: SCM IS IT COMPLEXITY BECAUSE A LARGE PART OF   THE SYSTEM EXTENDS BEYOND THE COMPANY WALLS
• WEAN EMPLOYEES OF TRADITIONAL BUSINESS PRACTICES: OPERATION PEOPLE TYPICALLY DEAL WITH PHONE CALLS, FAXES AND ORDERS SCRAWLED ON PAPER AND WILL MOST LIKELY WANT TO KEEP IT THAT WAY.
• ENSURE THE SCM SYSTEM SUPPORT THE ORGANIZATIONAL GOALS: SCM SOFTWARE THAT GIVE ORGANIZATION AND ADVANTAGE IN THE AREAS MOST CRUCIAL TO THEIR BUSINESS SUCCESS.
• DEPLOY IN INCREMENTAL PHASES AND MEASURE COMMUNICATE SUCCESS:  DESIGN THE DEPLOYMENT OF SCM SYSTEM IN INCREMENTAL PHASES.
• BE FUTURE ORIENTED: THE SUPPLY CHAIN DESIGN MUST ANTICIPATE THE FUTURE STATE OF THE BUSINESS

CHAPTER 11- BUILDING A CUSTOMER CENTRIC ORGANIZATION- CUSTOMER RELATIONSHIP MANAGEMENT 

   Why is it important for any company to use CRM strategies to manage customer information.

•  PROVIDE BETTER CUSTOMER SERVICE
• MAKE CALL CENTER MORE EFFICIENT 

• CROSS SELL PRODUCT MORE EFFICIENTLY
• HELPS SELL  STAFF CLOSE DEALS FASTER   

   If the virtual world is the first point of contact between a company and its customer, how might that transform the entire shopping experience.


 IT WILL BE POSITIVE AND NEGATIVE EFFECT OF BOTH PARTIES

-POSITIVE SIDES

• IT MORE EASY  TO MAKE CONVERSATION AND TRANSACTION
•  THE COMMUNICATION WILL BE MORE EFFECTIVE BECAUSE CUSTOMER CAN FACE TO FACE  WITH SELLER.
• THE CUSTOMER CAN GIVE COMMENTS OR CRITIC IN FRONT OF THE VIRTUAL TOOLS

-NEGATIVE SIDES 

 

•  HIGHER COST IN MAINTAINANCE.
• CUSTOMER DID NOT KNOW ABOUT  THE ACTUAL PRODUCT
• IT WILL HARD FOR CUSTOMER TO COMMUNICATE IF THE MACHINE IN TECHNICAL PROBLEM.

 

CHAPTER 9 ENABLING ORGANIZATION IN DECISION MAKING

EXPERT SYSTEM

are computerized advisory system or programs that initiate the reasonable process of expert in solving difficult problem. this system include a knowledge of containing various accumulated experience and set of rules for applying the knowledge base to each particular situation. these are most common form of AI in business arena because it fill the gap when human are expert difficult to find or  retain it

GENETIC ALGORITHM 

This is an artificial intelligence system that mimic the involuntary process to generate increasingly better solution to a problem. A genetic algorithm is essentially an optimizing system it find combination of   inputs that give the best outputs. this system can find evaluate a solutions with many more possibilities and faster. these type of genetic algorithm.

• as a problem solver
• as challenging technical puzzle
• as a basis for competent machine learning
• as computational model of innovation and creativity
• as computational model of other innovating system
• as a guiding philosophy

INTELLIGENT AGENTS

This is a special purpose knowledge based information system that accomplishes specific tasks on behalf its users. these system usually graphical representation. for example, shopping bot is software that will search several retailer websites and provide comparison of each retailer offering include price and availability.

  

VIRTUAL REALITY

this is virtual reality is a computerized environment that can be stimulated the real world. this is a faster growing area of artificial that had origins in efforts to build more natural, realistic and multisensory  human computer interfaces. these system enables telepresence  where user can be  anywhere in the world and use virtual reality  system to work alone or together at a remote sites.

STORING ORGANIZATIONAL INFORMATION

(DATABASES)

 Define the fundamental concept of the relational databases model

  Organizational information is stored in database. Applications and programs, such as supply chain management system and customer relationship management system, access the data in the data in the databases so the program can consult it to answer queries. The record retrieved in answer to become information that can be used to make decision. The computer programmed used to manage query a database is known as Database Management System (DBS).

 Evaluate the advantages of the relational databases model

• increase flexibility
• increase scalability and performance
• reduced information integrity
• increase information security

Define a databases management system and its relationship to a websites 

  Databases management system is used to access information from a databases. is a software through which user and application program interact with a databases.  the relationship is, the user send request to DBMS and the DBMS  perform actual manipulation of the information in databases.

Explain why an organization would want to integrate its databases

 

data integration refers to the organization inventory of data and information asset as well as the tools, strategies and philosophies by which fragmented data asset are aligned to support business goals. company want integrate it databases because they will connect, communicate, dealing and having

relation with customer everyday

CHAPTER 5 : ORGANIZATIONAL STRUCTURE

 CHIEF INFORMATION OFFICER (CIO)

• is person will responsible for overseeing for the uses of information technology
• it ensuring the strategic alignment of IT with business goals and objectives
• the jobs will reports all the activities in organizations directly to CEO
• CTO must also be a person that have understanding of every aspects of an oranization
• the capability in it must be the main power to be a CTO
• CTO need to enhance customer statisfaction of their concern of any specific aspect of
•  
• CHIEF TECHNOLOGY OFFICER

• Responsible for ensuring the through, speed, accuracy, availability, and reliability of an organization in IT
• Direct responsibilities for ensuring the efficiency of IT system 
• CTO will posses well-rounded knowledge of all aspects of IT
• run the organization engineering group
• uses technology to enhance the company product offerings
• focuses of external customers (buyers)
• collaborates and manage vendors that supply solution to enhance the company product
• develop strategies to increase the company top line
• has to be a creative and innovative technologist to be succesful

CHIEF SECURITY OFFICER (CSO)

• To ensuring the security of IT systems
• Developing strategies in IT
• Make sure the IT safeguards against attacks from hackers and viruse
• Lead operational risk management activities to enhance the value of the company and brand.
• Oversee a network of security directors and vendors who safeguard the company's assets, intellectual property and computer systems, as well as the physical safety of employees and visitors.
• Identify protection goals, objectives and metrics consistent with corporate strategic plan.
• Manage the development and implementation of global security policy, standards, guidelines and procedures to ensure ongoing maintenance of security. Physical protection responsibilities will include asset protection, workplace violence prevention, access control systems, video surveillance, and more. Information protection responsibilities will include network security architecture, network access and monitoring policies, employee education and awareness, and more.
• Work with other executives to prioritize security initiatives and spending based on appropriate risk management and/or financial methodology.
• Maintain relationships with local, state and federal law enforcement and other related government agencies.
• Oversee incident response planning as well as the investigation of security breaches, and assist with disciplinary and legal matters associated with such breaches as necessary.
• Work with outside consultants as appropriate for independent security audits.

CHIEF PRIVACY OFFICER (CPO)

• responsibility for ensuring the ethical and legal use information within in organization
• coordinating with the officer for civil rights and civil liberties
• created to respond to both consumer concern with over the uses of personal information including medical data and financial information and law regulations
• 
  

CHIEF KNOWLEDGE OFFICER (CKO)

• CKO is an organizational leader, responsible for ensuring that the organization maximizes the value it achieves through "knowledge". 
• The CKO is responsible for managing intellectual capital and the custodian of Knowledge Management practices in an organization. 
• CKO role is much broader, that can help an organization maximize the returns on investment in knowledge (people, processes and intellectual capital), exploit their intangible assets (know-how, patents, customer relationships), repeat successes, share best practices, improve innovation, and avoid knowledge loss after organizational restructuring.
• CKO must have skills across a wide variety of areas. 
• They must be good at developing/understanding the big picture, advocacy (articulation, promotion and justification of the knowledge agenda, sometimes against cynicism or even open hostility), project and people management (oversight of a variety of activities, attention to detail, ability to motivate), communications (communicating clearly the knowledge agenda, have good listening skills and be sensitive to organizational opportunities and obstacles), leadership, teamwork, influencing, and interpersonal skills. 
• The CKO who successfully combines these skills is well equipped as an excellent agent of change for their organization.

CHAPTER 4: MEASURING THE SUCCESS OF STRATEGIC INITIATIVES

  This entries will discuss about measuring the success of this initiatives and efficiency and effectively IT metrics and how facebook can be efficiency platform to promote our own product.

   if we want to make a small business we can selling our own product by online in facebook or any other network site, but nowadays many people make facebook as their platform to do so. By adding a picture and detail about the product, we can promote to our friends in facebook. I was imagine that i want to sell clothe. Nowadays teenagers like to buy a modern attire such as peplum, and so on. besides, i will sell product such as scarf or shawl and shoes. Customer or buyer will prefer to buy a  product by online without wasting their time in traffic jammed.

\  

  IT has become an important part of organization strategies, competitive advantage and of course to gain a profit. by using and IT it will make our business became faster better and minimum cost. i will discuss about an effective and efficiency IT metrics in measuring the success of strategic initiatives.

EFFICIENCY IT METRICS

  
  The efficiency IT metric is the throughput, the amount of information that can travel through a system at any point, means that, buyer can get many information or choices of the product that they can buy buy clicking or online shopping, transaction speed, by buying the product by online the amount of the time of the system will take time to perform the transaction but without wasting time to make manual transaction at bank, buyer can make payment through online transaction. Next system availability, the number of hour system is available for users, for example buyer or user can buy the online product in any time at anywhere. Response time, the time it take to respond to user interaction such as mouse click. As customer who are buy product by online need to be patient to make it, because there has a lack of it. for example if internet connection are too slow, the response time will take time to respond it. Next is information accuracy, the extent to which a system generates the correct results when executing the same transaction numerous time. lastly for efficiency IT metrics is web traffic., Web traffic includes a host of benchmarks such as the number of page views, the number of unique visitors and the average time of spent viewing a web pages.

EFFECTIVENESS IT METRICS

  The effectiveness IT metrics is usability, it can ease with which people perform the transaction and find information. for example, for gain information or to find many choices of peplum dress, buyer can explore to the internet of any website that he or she can open it such as zalora on facebook and others. next is customer satisfaction, by doing survey and percentage. for an example i would to sell a peplum dress, shoes and scarf or shawl on online facabook, i will do the survey towards my customer whether they satisfied with the material and service that i have been given or not. Besides, conversion rates. conversion rates such as making banner, pop-up and pop-under advertisement on internet. If i as a business woman which as making my facebook into platform to making a business, at my facebook page i will promoting my business by making an advertisement, banner to attract a customers, it is the way how to gain a profit by promoting our product with our own style. Lastly is financial. as a making a business through online the most important is the financial, to make sure the profit or capital stable we can making investment, so that we has the asset without worried if something risk would happen to our business.
  

CHAPTER 3 : STRATEGIC INITIATIVES FOR IMPLEMENTING COMPETITIVE ADVANTAGES

BUSINESS PROCESS RE-ENGINEERING

QUESTION

How organization  use it to improve their business by using business process re-engineering.

ANSWER

 Business process re-engineering is the analysis and redesign of workflow within and between enterprise for example manager could discover the best process for performing work and re-engineering the process to optimized productivity.

 The role in business process re-engineering in IT (information technology) such as below.

• expert system, allowing generalists to perform specialist tasks.
• shared database, making information available at many place.
• wireless data communication and portable computers, allowing field personnel to work office independent

• automatic identification and tracking, allowing things to tell where they are instead of requiring to be found.

 This diagram show the process of BUSINESS RE-ENGINEERING 

CHAPTER TWO CASE : say "charge it" with your cell phone

QUESTIONS

1. Do you view this technology as a potential threat to traditional telephone companies? if so, what counter strategies could traditional telephone companies adopt to prepare for this technology.

2. Using Poter's five forces describe the barriers to entry for this technology.

3.  Which Porter;s three generic strategies is the new technology following?

4. Describe the value chain of the business of using cell phone as a payment method.

5. what types of regulatory issues might occur due to this type of technology?

ANSWER

1. Yes i agree this technology as a potential traditional companies. therefore the counter strategies could traditonal telephone companies adopt to prepare for this technology by using focused strategies. focused strategy normally target to a niche market they only focus one group of user in their product. for example, M mobile  in malaysia just focus to calling and massaging.its not have many application in the systems compared to others mobiles smartphone companies. M mobile should maintain it strategy to compete with others mobile companies because not all people like to using smartphone and perhaps they do not know how to use the application in the smartphone.

2. By using Porter's five forces the barriers to entry for this new technology is buyer power. Nowadays buyers has many choices to choose the best supplier. buyers should maintain their customer to make sure their customer loyal and use their product. for example, in blackberry smartphone using an application of IOS and samsung were using an application of adnroid. therefore the existence of the competitors cause barriers to them to improve and move aggressively to produce quality product well then, customer will choose the best and quality product. Next is supplier power, they need to diversify their product to maintain and complete with other supplier.for example acer using window and apple using mac. next threat of substitute product and service. when many technology product in market they want to compete with each other to be the best product. for example, if customer does not like one of the smartphone from samsung, they can change to HTC.
  Threat a new entrants is the Porter's five forces the barriers to entry for this new technology. they want to introduce and attract people to buy their product. for example Motorola. event Motorola product producing traditional mobile product to compete with other company. lastly is rivalry among existence competitors. they do not think about another advanced product. for example, product already have in market, they just focus to compete with each other and to produce the same product like touch screen smartphone.

3. the Porter's three generic strategies is the new technology following is differentiation will create competitive advantage by distinguish their product on one or more features to their customer. For example, an apple product, they use an application of Mac, the identity logo is an apple shape, the colors are colorful, the shape are interesting. it can be distinguish clearly with the others product like nokia.

4. The value chain of business of using cell phone as a payment method such smartphone like android. this diagram show the flow of using cell phone as a payment method.

5. the regulatory issues might occur due to this type of technology is fraud. for example, is using others people credit cards to make transaction

PORTERS 5 FORCES MODEL

   The diagram above shows that the five forces model that contain threat of new entrant, bargaining power of customer, threat of substitutes, bargaining power of suppliers and rivalry among competitors.

   Firstly, buyer power, buyer power is the ability of buyers to affect the price they pay for the items, meaning that customer are the buyer. buyer has many substitute product that they can choose and this is an advantages for customer to choose what the best product that they can buy it. so that for supplier they have to produce an attractive product to attract customer and customer will satisfied with their product for an example is telecommunication company, such as celcom and maxis. customer has rights to choose the best telecommunication company that give goods service to them.

  secondly is supplier power, its consist of all parties involved, directly or indirectly in obtaining raw material or a product. supplier power is the suppliers ability to influence the price they charge for supplies such as material, labor and services. for example is KFC stand for Kentucky fried chicken, the main raw material is chicken, they has to get supplier for them to supply the  fresh chicken, if supplier do not supply chicken their business will no operated. the supplier power will high at, when buyers have a few choices of whom to buy chicken too supply for them. besides, the low is when their choices are many, means that if to many supplier buyer has many choice to buy from the best supplier.

   next, threat of substitutes product and services it becomes high when there are many alternative to a product or services and low when  there are few alternatives from which to choose. for an example to travel in country there are many transportation that we can choose such as air plane, buses, train and others. besides in new era many product smartphone that customer substitutes. for example for a product is android such as samsung and for smartphone such as blackberry. 

   besides, threats of new entrants. when to many competitors produce the same product or enter the market and it will barriers to enter the market or to compete with others company. if there were has many same product in the market they will might faces difficulties to compete with others competitors. for example, nowadays to many smartphone in market such as blackberry, samsung, apples and others. this company will face difficulties to compete with each others. every product has their own speciality and customer will buy if the product are satisfied them or fulfil their criteria 

.

   Rivalry among existing competitors.there will high when competition is fierce in a market and low when competitors are more complacent. although competitions is always more intense in some industries that in others. the overall trends is toward increase competition in almost every industry. 

   

summary chapter 1

   asssalamualaikum, this blog has been created to shown to write the summaries about business driven technology in every chapters that we have already learn. IT is global, we used it in daily life such as at work, spent time by online face-booking, twitter, tagged and others. Now days we should now how to used an IT in daily life because in ERA 2000 all things in daily life we has using an IT.

 What is an IT in business, it’s provide an overview of how organizations operate in competitive environment and must continually define and redefine their business strategies to create competitive advantages. As a business student should recognize relationship or function between business and technology and understand information technology role in daily business activities and global business technology. The example for the IT technology in business or services activities is supply chain management, customer relationship management, enterprise resources planning, outsourcing, integration, e-business, and others.

   Why we should study information technology’s role in business? There is because information technology is everywhere in business. Understanding information technology provides great insight to anyone learning about business. Student if understand technology have an advantage in business, and gain a detailed understanding of information technology is important to all student. Next, how does information technology impact on business operations. Understanding information technology begins with gaining and understanding of how business function and IT role in creating inefficiencies and effectiveness towards the organization. For an organization to succeed every department or functional area must work together sharing common information.

   There show the common department in an organization function. Firstly is accounting department, finance department, human resources department, sales and marketing department, and operation and management information’s system department. In the departmental companies has the challenges for the example is finance department, finance department has to deal with strategic financial issues including money, banking, investment and assets.