CHAPTER 3

DEFINITION BPR :

 Business process re-engineering (BPR) is the analysis and redesign of workflow within and between enterprises.

For example : The manager could discover the best process for performing work and re-engineering the process to optimize productivity.

  

               

               THE ROLE OF INFORMATION TECHNOLOGY

  

BPR literature identified several so called disruptive technologies that were supposed to challenge traditional wisdom about how work should be performed.

• Shared databases, making information available at many places
• Expert systems, allowing generalists to perform specialist tasks
• Telecommunication networks, allowing organizations to be centralized and decentralized at the same time
• Decision-support tools, allowing decision-making to be a part of everybody's job
• Wireless data communication and portable computers, allowing field personnel to work office independent
• Interactive videodisk, to get in immediate contact with potential buyers
• Automatic identification and tracking, allowing things to tell where they are, instead of requiring to be found
• High performance computing, allowing on-the-fly planning and revisioning

Many lessons were learned and many elements were identified as essential to the success of a BPR activity. Some important BPR success factors, which will be discussed in further details later, include, but are not limited to the following:

1. Organization wide commitment.
2. BPR team composition.
3. Business needs analysis.
4. Adequate IT infrastructure.
5. Effective change management.
6. Ongoing continuous improvement

                                         CHAPTER 2

                             CHAPTER 2 CASE: SAY" CHARGE IT" WITH YOUR CELL PHONE

 

 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.

YES.i am totally agree that traditional telephone companies can take the technology as a potential threat to
the companies because based on " THE THREE GENERICS STRATEGIES" the company may prefer to
choose "DIFFERENTIATION ". The company may create competitive advantage by distinguishing their
products on one or more features important to their customer. for example now days every body want to
make all of their work become easy n fast.so for the company if they make a new product it will help the
customer and may increase their satisfaction to solve their problem. such as to make a bill payment. through
their smartphone it will help their customer to make the transaction easily without wasting their time. other
than that, the unique features or benefits may justify price differences and or stimulate demand. for the
customer, they already have a different taste and needs so if the company produce the variety products
maybe it will fulfill the customer needs..:)..


2) by using Porter's Five Forces describe the baries to entry for this technology.

by using Porter's Five Forces, the describe to entry for this new technology is the first threat of substitute product. for example the barrier in threat of substitute product and service happened when too many technology product exist at the market they want to be the best product among the customer. they want to be the best because they do not want their customer find another product and change their tastes. customer have many choices to satisfy their want and needs. for example to surf internet. customer may use the smartphone, such as mobile phone. now in the market they various types of mobile phone that have their own technology such as they use of technology samsung using the android system and ios system is using by the blackberry. therefore, customer can find their own to meet their taste because they will try to find something that will satisfied in their life.
3) which of porter's three generic strategies the new technology following?

Porter's three generic strategies by this new technology is differentiation. which is it can a give competitive advantage by this distinguishing their product on one or more features important. all of the product have their own quality and singularity . so if they want to beat the other product they have to perform their product rather than other product. for exam APPLE products, they have their own style in form of appearance and sophistication.

4) the value chain of the business of using cell phones as a payment method

the value chain is  a payment method to improving an a technology development and also increasing infrastructure of phone companies. the payment method can receive information from the consumer purchases and they will send it to the phone company . then, more people will more likely this type of payment method for every business.
5) what types of regulatory issues might occur due to this type of technology

types of technology that might occur due to this technology is fraud. the fraud can be happen at the buyer and the supplier side. for example, the children us the credit card of their parents without permission . for supplier side, they will make double charges without customer knowledge.

CHAPTER 2 : PORTERS FIVE FORCES MODEL

Threat of substitute products

Threat of substitute products means how easily your customers can switch to your competitors product. Threat of substitute is high when:

• There are many substitute products available
• Customer can easily find the product or service that you’re offering at the same or less price
• Quality of the competitors’ product is better
• Substitute product is by a company earning high profits so can reduce prices to the lowest level.  

1. Threat of new entrants

   A new entry of a competitor into your market also weakens your power. Threat of new entry depends upon entry and exit barriers. Threat of new entry is high when:
   
   • Capital requirements to start the business are less
   • Few economies of scale are in place
   • Customers can easily switch (low switching cost)
   • Your key technology is not hard to acquire or isn’t protected well
   • Your product is not differentiated
   There is variation in attractiveness of segment depending upon entry and exit barriers. That segment is more attractive which has high entry barriers and low exit barriers.
   Some new firms enter into industry and low performing companies leave the market easily. When both entry and exit barriers are high then profit margin is also high but companies face more risk because poor performance companies stay in and fight it out. When these barriers are low then firms easily enter and exit the industry, profit is low. The worst condition is when entry barriers are low and exit barriers are high then in good times firms enter and it become very difficult to exit in bad times.
   
   
   

   1. Industry Rivalry

      Industry rivalry mean the intensity of competition among the existing competitors in the market. Intensity of rivalry depends on the number of competitors and their capabilities. Industry rivalry is high when:
      
      • There are number of small or equal competitors and less when there’s a clear market leader.
      • Customers have low switching costs
      • Industry is growing
      • Exit barriers are high and rivals stay and compete
      • Fixed cost are high resulting huge production and reduction in prices
      These situations make the reasons for advertising wars, price wars, modifications, ultimately costs increase and it is difficult to compete.

   2. Bargaining power of suppliers

      Bargaining Power of supplier means how strong is the position of a seller.  How much your supplier have control over increasing the Price of supplies. Suppliers are more powerful when
      
      • Suppliers are concentrated and well organized
      • a few substitutes available to supplies
      • Their product is most effective or unique
      • Switching cost, from one suppliers to another, is high
      • You are not an important customer to Supplier
      When suppliers have more control over supplies and its prices that segment is less attractive. It is best way to make win-win relation with suppliers. It’s good idea to have multi-sources of supply.

   3. Bargaining power of Buyers

      Bargaining Power of Buyers means, How much control the buyers have to drive down your products price, Can they work together in ordering large volumes. Buyers have more bargaining power when:
      
      • Few buyers chasing too many goods
      • Buyer purchases in bulk quantities
      • Product is not differentiated
      • Buyer’s cost of switching to a competitors’ product is low
      • Shopping cost is low
      • Buyers are price sensitive
      • Credible Threat of integration
      Buyer’s bargaining power may be lowered down by offering differentiated product. If you’re serving a few but huge quantity ordering buyers, then they have the power to dictate you.

Saya pelajar dari fakulti business studies(insurance)..Pelajar semester 5.Dari kelas BM1155A.

Pada semester ini,saya belajar MGT300 iaitu TECHNOLOGY IN BUSINESS bersama dengan lecturer yang cantik Puan Intan Liana binti Suhaime.Kali ini madam minta saya sediakan 1 BLOG untuk subjek ini..hahhaa..first time buat blog...nak ceritakan subjek yang di ajari oleh madam.This subjek nampak macam menarik..memang menarik..insyallah saya dapat focus..Subjek ini terdapat 18 chapter...huhuu banyak kena baca..

Hari pertama minggu pertama kelas.Kami hanya mempelajari 1CHAPTER..This tittle is Business Driven Technology.Mengenai first chapter..its okey for me..this chapter is about the IT (Information Technology).IT is are important in your daily life.The any person can be get the information lebih cepat dan pantas...

chapter 1..Business Driven Technology.The objectives is distinguish management information system(MIS) and information technology(IT).Second objectives is describe the relationships among people,information technology and information.

IT in your daily life,now this electronics that connect to one another are found everywhere.For example in the office,home, car and etc.

IT's impact on businesss operations have three...

> reducing costs

>Improving productivity

>Generating growth

Information Technology Basics

INFORMATION TECHNOLOGY(IT)

> is a field concerned with the use of technology in managing and processing information.

> can be an important enable of business success and innovation. 

> not useful unless the right people know how to use and manage it effectively.

MANAGEMENT INFORMATION SYSTEM(MIS)

 > is a business function just as marketing,finance,operation and human resourses.

> is a general name for the business function and academic discipline covering the application of people,technologies and procedures.For example collectively called information systems to solve business problems.

Important element of MIS

• data, information and business intelligence
• IT resources
• IT cultures

 

 Data, information and business intelligence

*****DATA*****

>raw facts that describe the characteristics of an event. 

>characteristic for sale*** date, item number, item description,quantity ordered,customer number name and shipping details. 

 

***** INFORMATION*******

• Data converted into a meaningful and useful context..
• information from sales events could include best.for example selling item,worst selling item ,best customer and worst customer . 

 ****** BUSINESS INTELLIGENCE***** 

• Applications and technologies that are used to gather provide access to,and analyze data and information to support decision_making effort

• Help companies gain a more comprehensive knowledge of the factors affecting their business.

 

IT RESOURCES                                                              IT CULTURES

Three keys resources                                                    > Functional culture

> people                                                                        > sharing culture

>information                                                                > inquiring culture

>information technology                                             > discovery culture