MGT NOTES

Outsourcing in the 21st Century Outsourcing Project Insourcing (in-house-development)  – A common approach using the professional expertise within an organization to develop and maintain the organization’s information technology systems Outsourcing  – An arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house Onshore outsourcing  – engaging another company within the same country for services Near shore outsourcing  – contracting an outsourcing arrangement with a company in a nearby country Offshore outsourcing  – using organizations from developing countries to write code and develop systems Big selling point for offshore outsourcing “inexpensive good work” Factors driving outsourcing growth include; Core competencies Financial savings Rapid growth Industry changes The Internet Globalization According to PricewaterhouseCoopers “Businesses that outsou

CREATING COLLABORATIVE PARTNERSHIP Teams, Partnership and Alliances ·        Organizations create and use teams, partnership and alliances to: -         Undertake new initiatives -         Address both minor and major problems -         Capitalize on significant opportunities ·        Create teams, partnership and alliances both internally with employees and externally with other organizations ·        Collaboration System- supports the work of teams by facilitating the sharing and flow of information ·        Organizations form alliances and partnership with other organizations based on their core competency -         Core competency- an organizations key strength, a business function that it does better than any of its competitors -         Core competency strategy- organizations chooses to focus specifically on its core competency and forms partnership with other organizations to handle nonstrategic business processes ·        Information technology can ma

E-Business The internet is a powerful channel that presents new opportunities for an organization to : -         Touch customers -         Enrich products and services with information -         Reduce costs How do e-commerce and e-business differ? -         E-commerce- the buying and selling of goods and services over the internet -         E-business- the conducting of business on the internet including, not only buying and selling, but also serving customers and collaborating with business partners INDUSTRIES USING E-BUSINESS E-business Models ·        E-business model- an approach to conducting electronic business on the internet      Business-to-Business (B2B) ·        Electronic marketplace (e-marketplace) – interactive business communities providing a central market where multiple buyers and sellers can engage in e-business activities Business-to-Consumer (B2C) Common B2C e-business models include: -    E-shop- a version of retail

Integrating the Organization from End to End – Enterprise Resource Planning ·        At the heart of all ERP systems is a database, when a user’s enters or updates information in one module, it is immediately and automatically updated throughout the entire system ·        ERP systems automate business process ·        The Evolution of ERP Integrating SCM, CRM and ERP ·        SCM, CRM and ERP are the backbone of e-business ·        Integration of these applications is the key to success for many companies ·        Integration allows the unlocking of information to make it available to any user, anywhere, anytime ·        SCM and CRM market overviews ·        General audience and purpose of SCM, CRM and ERP · Integration Tools ·        Many companies purchase modules from an ERP vendor, and SCM vendor, and a CRM vendor and must integrate the different modules together -         Middleware- several different types of software which sit i