Once the performance of the supply chain operations has been measured and performance gaps identified, it becomes important to identify what activities should be performed to close those gaps. Over 430 executable practices derived from the experience of SCC members are available.
The SCOR model defines a best practice as a current, structured, proven and repeatable method for making a positive impact on desired operational results.
ƒ Current - Must not be emerging (bleeding edge) and must not be antiquated
ƒ Structured - Has clearly stated Goal, Scope, Process, and Procedure
ƒ Proven - Success has been demonstrated in a working environment.
ƒ Repeatable - The practice has been proven in multiple environments.
ƒ Method- Used in a very broad sense to indicate: business process, practice, organizational strategy, enabling technology, business relationship, business model, as well as information or knowledge management.
Thursday, April 9, 2009
The Process Modeling Pillar
By describing supply chains using process modeling building blocks, the model can be used to describe supply chains that are very simple or very complex using a common set of definitions. As a result, disparate industries can be linked to describe the depth and breadth of virtually any supply chain.
SCOR(r) is based on five distinct management processes: Plan, Source, Make, Deliver, and Return.
Plan - Processes that balance aggregate demand and supply to develop a course of action which best meets sourcing, production, and delivery requirements.
Source - Processes that procure goods and services to meet planned or actual demand.
Make - Processes that transform product to a finished state to meet planned or actual demand.
Deliver - Processes that provide finished goods and services to meet planned or actual demand, typically including order management, transportation management, and distribution management.
Return - Processes associated with returning or receiving returned products for any reason. These processes extend into post-delivery customer support.
With all reference models, there is a specific scope that the model addresses. SCOR is no different and the model focuses on the following:
All customer interactions, from order entry through paid invoice.
All product (physical material and service) transactions, from your supplier’s supplier to your customer’s customer, including equipment, supplies, spare parts, bulk product, software, etc.
All market interactions, from the understanding of aggregate demand to the fulfillment of each order.
SCOR does not attempt to describe every business process or activity. Relationships between these processes can be made to the SCOR and some have been noted within the model. Other key assumptions addressed by SCOR include: training, quality, information technology, and administration (not supply chain management). These areas are not explicitly addressed in the model but rather assumed to be a fundamental supporting process throughout the model.
SCOR(r) is based on five distinct management processes: Plan, Source, Make, Deliver, and Return.
Plan - Processes that balance aggregate demand and supply to develop a course of action which best meets sourcing, production, and delivery requirements.
Source - Processes that procure goods and services to meet planned or actual demand.
Make - Processes that transform product to a finished state to meet planned or actual demand.
Deliver - Processes that provide finished goods and services to meet planned or actual demand, typically including order management, transportation management, and distribution management.
Return - Processes associated with returning or receiving returned products for any reason. These processes extend into post-delivery customer support.
With all reference models, there is a specific scope that the model addresses. SCOR is no different and the model focuses on the following:
All customer interactions, from order entry through paid invoice.
All product (physical material and service) transactions, from your supplier’s supplier to your customer’s customer, including equipment, supplies, spare parts, bulk product, software, etc.
All market interactions, from the understanding of aggregate demand to the fulfillment of each order.
SCOR does not attempt to describe every business process or activity. Relationships between these processes can be made to the SCOR and some have been noted within the model. Other key assumptions addressed by SCOR include: training, quality, information technology, and administration (not supply chain management). These areas are not explicitly addressed in the model but rather assumed to be a fundamental supporting process throughout the model.
Supply-Chain Operations Reference
Supply-Chain Operations Reference-model (SCOR(r)) is a process reference model developed by the management consulting firm PRTM and AMR Research and endorsed by the Supply-Chain Council (SCC) as the cross-industry de facto standard diagnostic tool for supply chain management. SCOR enables users to address, improve, and communicate supply chain management practices within and between all interested parties in the Extended Enterprise.
SCOR(r) is a management tool, spanning from the supplier's supplier to the customer's customer. The model has been developed by the members of the Council on a volunteer basis to describe the business activities associated with all phases of satisfying a customer's demand..
The model is based on 3 major "pillars":
Process Modeling
Performance Measurements
Best Practices
SCOR(r) is a management tool, spanning from the supplier's supplier to the customer's customer. The model has been developed by the members of the Council on a volunteer basis to describe the business activities associated with all phases of satisfying a customer's demand..
The model is based on 3 major "pillars":
Process Modeling
Performance Measurements
Best Practices
IBM jouran of R&D
The IBM Journals are now only available online for a fee. However, you can continue to read and download papers to get the inside track on emerging trends in science, technology, and business and how they are shaping our future—today.
Instructions are available in PDF format here for how your library or other institution can obtain unlimited free access for all its members. You need not miss the latest paper or issue while maintaining access to over 50 years of influential papers.
Use the left hand navigation column on this page to locate current and previously published issues and papers. The subscribe/order link can be used to order printed copies of back issues.
Instructions are available in PDF format here for how your library or other institution can obtain unlimited free access for all its members. You need not miss the latest paper or issue while maintaining access to over 50 years of influential papers.
Use the left hand navigation column on this page to locate current and previously published issues and papers. The subscribe/order link can be used to order printed copies of back issues.
Industry reference models e-commerce
Industry reference models are frameworks or models that provide a best practice off-the-shelf set of structures, processes, activities, knowledge and skills.
The enhanced Telecom Operations Map (eTOM), published by the TM Forum, describes the full scope of business processes required by a service provider in the telecommunications industry, and defines key elements and how they interact.
The Supply-Chain Operations Reference (SCOR) is a process reference model, endorsed by the Supply-Chain Council as the cross-industry de facto standard diagnostic tool for supply chain management.
The Information Technology Infrastructure Library (ITIL) is a set of concepts and policies for managing information technology (IT) infrastructure, development and operations
The enhanced Telecom Operations Map (eTOM), published by the TM Forum, describes the full scope of business processes required by a service provider in the telecommunications industry, and defines key elements and how they interact.
The Supply-Chain Operations Reference (SCOR) is a process reference model, endorsed by the Supply-Chain Council as the cross-industry de facto standard diagnostic tool for supply chain management.
The Information Technology Infrastructure Library (ITIL) is a set of concepts and policies for managing information technology (IT) infrastructure, development and operations
The Object Management Group of e-commerce
Modeling standards of the Object Management Group (OMG), including the Unified Modeling Language (UML), Model Driven Architecture (MDA) and the Business Process Modeling Notation (BPMN), enable powerful visual design, execution and maintenance of software and other processes, including IT Systems Modeling and Business Process Management.
The OMG established the Business Architecture Working Group[3] (BAWG) in December 2007 to pursue the development of standards to support the Business Architecture community. The group has begun an effort to catalog business scenarios and to capture a library of business techniques that will be used to isolate and prioritize areas of work. This initiative has as a key part of its mission the interlinking and unification of existing standards to accommodate the demands for integrated end-to-end business analytics. The BAWG conducted a Business Architecture Information Day on September 23, 2008 in Orlando at the OMG's quarterly Technical Meeting as part of an outreach effort to bring interested practitioner and vendor organizations into the standards process
The OMG established the Business Architecture Working Group[3] (BAWG) in December 2007 to pursue the development of standards to support the Business Architecture community. The group has begun an effort to catalog business scenarios and to capture a library of business techniques that will be used to isolate and prioritize areas of work. This initiative has as a key part of its mission the interlinking and unification of existing standards to accommodate the demands for integrated end-to-end business analytics. The BAWG conducted a Business Architecture Information Day on September 23, 2008 in Orlando at the OMG's quarterly Technical Meeting as part of an outreach effort to bring interested practitioner and vendor organizations into the standards process
e-Business Strategy
Business Architecture is directly based on business strategy. It is the foundation for subsequent architectures (strategy embedding), where it is detailed into various aspects and disciplines. The business strategy can consist of elements like strategy statements, organizational goals and objectives, generic and/or applied business models, etc. The strategic statements are analyzed and arranged hierarchically, through techniques like qualitative hierarchical cluster analysis. Based on this hierarchy the initial business architecture is further developed, using general organizational structuring methods and business administration theory, like theories on assets and resources and theories on structuring economic activity. Based on the business architecture the construction of the organization takes shape (figure 1: strategy embedding). During the strategy formulation phase and as a result of the design of the business architecture, the business strategy gets better formulated and understood as well as made more internally consistent.
The business architecture forms a significantly better basis for subsequent architectures than the separate statements themselves. The business architecture gives direction to organizational aspects, such as the organizational structuring (in which the responsibilities of the business domains are assigned to individuals/business units in the organization chart or where a new organization chart is drawn) and the administrative organization (describing for instance the financial reconciliation mechanisms between business domains). Assigning the various business domains to their owners (managers) also helps the further development of other architectures, because now the managers of these domains can be involved with a specific assigned responsibility. This led to increased involvement of top-level management, being domain-owners and well aware of their role. Detailed portions of business domains can be developed based on the effort and support of the domain-owners involved. Business architecture therefore is a very helpful pre-structuring device for the development, acceptance and implementation of subsequent architectures.
The business architecture forms a significantly better basis for subsequent architectures than the separate statements themselves. The business architecture gives direction to organizational aspects, such as the organizational structuring (in which the responsibilities of the business domains are assigned to individuals/business units in the organization chart or where a new organization chart is drawn) and the administrative organization (describing for instance the financial reconciliation mechanisms between business domains). Assigning the various business domains to their owners (managers) also helps the further development of other architectures, because now the managers of these domains can be involved with a specific assigned responsibility. This led to increased involvement of top-level management, being domain-owners and well aware of their role. Detailed portions of business domains can be developed based on the effort and support of the domain-owners involved. Business architecture therefore is a very helpful pre-structuring device for the development, acceptance and implementation of subsequent architectures.
Disciplined approach e-business
Business Architecture is a disciplined approach to creating and maintaining business models that serve as a business foundation of the enterprise to enhance accountability and improve decision-making.
Business Architecture's value proposition, unlike other disciplines is to increase organizational effectiveness by mapping and modeling the business to the organization's business vision and strategic goals.
Mapping identifies gaps between the current and target business capabilities (underlying processes, people, and tools).
Modeling discovers business requirements in the area of interest including stakeholders, business entities and their relationships, and business integration points.
Business Architecture's value proposition, unlike other disciplines is to increase organizational effectiveness by mapping and modeling the business to the organization's business vision and strategic goals.
Mapping identifies gaps between the current and target business capabilities (underlying processes, people, and tools).
Modeling discovers business requirements in the area of interest including stakeholders, business entities and their relationships, and business integration points.
Different views of an organization e-business
In order to develop an integrated view of an enterprise, many different views of an organization are typically developed. The key views of the enterprise within the business architecture are:[2]
Business Strategy view : captures the tactical and strategic goals that drive an organization forward. The goals are decomposed into various tactical approaches for achieving these goals and for providing traceability through the organization. These tactical and strategic goals are mapped to metrics that provide ongoing evaluation of how successfully the organization is achieving its goals.
Business Capabilities view : describes the primary business activities of an enterprise and the pieces of the organization that perform those functions. This view further distinguishes between customer-facing functions, supplier-related functions, business execution, and business management functions.
Business Process view : defines the set of strategic, core and support processes that transcend functional and organizational boundaries. It sets the context of the enterprise by identifying and describing external entities such as customers, suppliers, and external systems that interact with the business. The processes also describe which people, resources and controls are involved in the process. The lowest process level describes the manual and automated tasks that make up workflow.
Business Knowledge view : establishes the shared semantics (e.g., customer, order, and supplier) within an organization and relationships between those semantics (e.g., customer name, order date, supplier name). These semantics form the vocabulary that the organization relies upon to communicate and structure the understanding of the areas they operate within.
Organizational view : captures the relationships among roles, capabilities and business units, the decomposition of those business units into subunits, and the internal or external management of those units.
Business Strategy view : captures the tactical and strategic goals that drive an organization forward. The goals are decomposed into various tactical approaches for achieving these goals and for providing traceability through the organization. These tactical and strategic goals are mapped to metrics that provide ongoing evaluation of how successfully the organization is achieving its goals.
Business Capabilities view : describes the primary business activities of an enterprise and the pieces of the organization that perform those functions. This view further distinguishes between customer-facing functions, supplier-related functions, business execution, and business management functions.
Business Process view : defines the set of strategic, core and support processes that transcend functional and organizational boundaries. It sets the context of the enterprise by identifying and describing external entities such as customers, suppliers, and external systems that interact with the business. The processes also describe which people, resources and controls are involved in the process. The lowest process level describes the manual and automated tasks that make up workflow.
Business Knowledge view : establishes the shared semantics (e.g., customer, order, and supplier) within an organization and relationships between those semantics (e.g., customer name, order date, supplier name). These semantics form the vocabulary that the organization relies upon to communicate and structure the understanding of the areas they operate within.
Organizational view : captures the relationships among roles, capabilities and business units, the decomposition of those business units into subunits, and the internal or external management of those units.
e-Business architecture
A business architecture is an organizing framework of a business, and the documents and diagrams that describe that structure or the people who help build such a structure, respectively.
Business architecture is close related to concepts enterprise architecture and business reference model.The term "Business Architecture" is used to refer to a process, model or profession. A formal definition of the first meaning is defined by the Object Management Group's Business Architecture Working Group as follows:[1]
"A blueprint of the enterprise that provides a common understanding of the organization and is used to align strategic objectives and tactical demands.”
Business Architecture articulates the structure of an enterprise in terms of its capabilities, governance structure, business processes, and business information.[2] The business capability is "what" the organization does, the business processes, are "how" the organization executes its capabilities. In articulating the governance and information,the business architecture considers all external actors to an enterprise (including its customers, suppliers, and regulators), to ensure that flow in and out of the enterprise are captured.
Business architecture is close related to concepts enterprise architecture and business reference model.The term "Business Architecture" is used to refer to a process, model or profession. A formal definition of the first meaning is defined by the Object Management Group's Business Architecture Working Group as follows:[1]
"A blueprint of the enterprise that provides a common understanding of the organization and is used to align strategic objectives and tactical demands.”
Business Architecture articulates the structure of an enterprise in terms of its capabilities, governance structure, business processes, and business information.[2] The business capability is "what" the organization does, the business processes, are "how" the organization executes its capabilities. In articulating the governance and information,the business architecture considers all external actors to an enterprise (including its customers, suppliers, and regulators), to ensure that flow in and out of the enterprise are captured.
e-Business process management
Business process management is a field of management focused on aligning organizations with the wants and needs of clients. It is a holistic management approach[citation needed] that promotes business effectiveness and efficiency while striving for innovation, flexibility and integration with technology. As organizations strive for attainment of their objectives, business process management attempts to continuously improve processes - the process to define, measure and improve your processes – a "process optimization" process
e-Business process reengineering
Business process reengineering (BPR) is an approach aiming at improvements by means of elevating efficiency and effectiveness of the processes that exist within and across organizations. The key to business process reengineering is for organizations to look at their business processes from a "clean slate" perspective and determine how they can best construct these processes to improve how they conduct business.
Business process reengineering (BPR) began as a private sector technique to help organizations fundamentally rethink how they do their work in order to dramatically improve customer service, cut operational costs, and become world-class competitors. A key stimulus for reengineering has been the continuing development and deployment of sophisticated information systems and networks. Leading organizations are becoming bolder in using this technology to support innovative business processes, rather than refining current ways of doing work
Business process reengineering (BPR) began as a private sector technique to help organizations fundamentally rethink how they do their work in order to dramatically improve customer service, cut operational costs, and become world-class competitors. A key stimulus for reengineering has been the continuing development and deployment of sophisticated information systems and networks. Leading organizations are becoming bolder in using this technology to support innovative business processes, rather than refining current ways of doing work
e-Business process integration
A business model, which may be considered an elaboration of a business process model, typically shows business data and business organizations as well as business processes. By showing business processes and their information flows a business model allows business stakeholders to define, understand, and validate their business enterprise. The data model part of the business model shows how business information is stored, which is useful for developing software code. See the figure on the right for an example of the interaction between business process models and data models.[12]
Usually a business model is created after conducting an interview, which is part of the business analysis process. The interview consists of a facilitator asking a series of questions to extract information about the subject business process. The interviewer is referred to as a facilitator to emphasize that it is the participants, not the facilitator, who provide the business process information. Although the facilitator should have some knowledge of the subject business process, but this is not as important as her mastery of a pragmatic and rigorous method interviewing business experts. The method is important because for most enterprises a team of facilitators is needed to collect information across the enterprise, and the findings of all the interviewers must be compiled and integrated once completed
Usually a business model is created after conducting an interview, which is part of the business analysis process. The interview consists of a facilitator asking a series of questions to extract information about the subject business process. The interviewer is referred to as a facilitator to emphasize that it is the participants, not the facilitator, who provide the business process information. Although the facilitator should have some knowledge of the subject business process, but this is not as important as her mastery of a pragmatic and rigorous method interviewing business experts. The method is important because for most enterprises a team of facilitators is needed to collect information across the enterprise, and the findings of all the interviewers must be compiled and integrated once completed
e-Business reference model
A business reference model is a reference model, concentrating on the functional and organizational aspects of an enterprise, service organization or government agency. In general a reference model is a model of something that embodies the basic goal or idea of something and can then be looked at as a reference for various purposes. A business reference model is a means to describe the business operations of an organization, independent of the organizational structure that perform them. Other types of business reference model can also depict the relationship between the business processes, business functions, and the business area’s business reference model. These reference model can be constructed in layers, and offer a foundation for the analysis of service components, technology, data, and performance.
The most familiar business reference model is the Business Reference Model of the US Federal Government. That model is a function-driven framework for describing the business operations of the Federal Government independent of the agencies that perform them. The Business Reference Model provides an organized, hierarchical construct for describing the day-to-day business operations of the Federal government. While many models exist for describing organizations - organizational charts, location maps, etc. - this model presents the business using a functionally driven approach
The most familiar business reference model is the Business Reference Model of the US Federal Government. That model is a function-driven framework for describing the business operations of the Federal Government independent of the agencies that perform them. The Business Reference Model provides an organized, hierarchical construct for describing the day-to-day business operations of the Federal government. While many models exist for describing organizations - organizational charts, location maps, etc. - this model presents the business using a functionally driven approach
Programming languages tools for BPM
BPM suite software provides programming interfaces (web services, application program interfaces (APIs)) which allow enterprise applications to be built to leverage the BPM engine.[9]
Programming languages that are being introduced for BPM include:[1]
Architecture of Integrated Information Systems (ARIS) supports EPC,
Business Process Execution Language (BPEL),
Web Services Choreography Description Language (WS-CDL).
XML Process Definition Language (XPDL),
Other technologies related to business process modeling include model-driven architecture and service-oriented architecture.
Programming languages that are being introduced for BPM include:[1]
Architecture of Integrated Information Systems (ARIS) supports EPC,
Business Process Execution Language (BPEL),
Web Services Choreography Description Language (WS-CDL).
XML Process Definition Language (XPDL),
Other technologies related to business process modeling include model-driven architecture and service-oriented architecture.
e-Modeling and simulation
Modeling and simulation functionality allows for pre-execution “what-if” modeling and simulation. Post-execution optimization is available based on the analysis of actual as-performed metrics.[9]
Business process modeling diagrams are:
Use case diagrams created by Ivar Jacobson, 1992. Currently integrated in the UML
Activity diagrams, also currently adopted by UML
Some business process modeling techniques are:
Business Process Modeling Notation (BPMN)
Cognition enhanced Natural language Information Analysis Method (CogNIAM)
Extended Business Modeling Language (xBML)
Event-driven process chain (EPC)
IDEF0 used since early 1990s
Unified Modeling Language (UML), extensions for business process such as Eriksson-Penker's
Business process modeling diagrams are:
Use case diagrams created by Ivar Jacobson, 1992. Currently integrated in the UML
Activity diagrams, also currently adopted by UML
Some business process modeling techniques are:
Business Process Modeling Notation (BPMN)
Cognition enhanced Natural language Information Analysis Method (CogNIAM)
Extended Business Modeling Language (xBML)
Event-driven process chain (EPC)
IDEF0 used since early 1990s
Unified Modeling Language (UML), extensions for business process such as Eriksson-Penker's
e-Business process modeling tools
Business process modeling tools provide business users with the ability to model their business processes, implement and execute those models, and refine the models based on as-executed data. As a result, business process modeling tools can provide transparency into business processes, as well as the centralization of corporate business process models and execution metrics
e-Business process
A business process is a collection of related, structured activities or tasks that produce a specific service or product (serve a particular goal) for a particular customer or customers. There are three main types of business processes:
Management processes, the processes that govern the operation of a system. Typical management processes include "Corporate Governance" and "Strategic Management".
Operational processes, processes that constitute the core business and create the primary value stream. Typical operational processes are Purchasing, Manufacturing, Marketing, and Sales.
Supporting processes, which support the core processes. Examples include Accounting, Recruitment, Technical support.
A business process can be decomposed into several sub-processes, which have their own attributes, but also contribute to achieving the goal of the super-process. The analysis of business processes typically includes the mapping of processes and sub-processes down to activity level. A business process model is a model of one or more business processes, and defines the ways in which operations are carried out to accomplish the intended objectives of an organization. Such a model remains an abstraction and depends on the intended use of the model. It can describe the workflow or the integration between business processes. It can be constructed in multiple levels
Management processes, the processes that govern the operation of a system. Typical management processes include "Corporate Governance" and "Strategic Management".
Operational processes, processes that constitute the core business and create the primary value stream. Typical operational processes are Purchasing, Manufacturing, Marketing, and Sales.
Supporting processes, which support the core processes. Examples include Accounting, Recruitment, Technical support.
A business process can be decomposed into several sub-processes, which have their own attributes, but also contribute to achieving the goal of the super-process. The analysis of business processes typically includes the mapping of processes and sub-processes down to activity level. A business process model is a model of one or more business processes, and defines the ways in which operations are carried out to accomplish the intended objectives of an organization. Such a model remains an abstraction and depends on the intended use of the model. It can describe the workflow or the integration between business processes. It can be constructed in multiple levels
e-Business model
A business model is a framework for creating economic, social, and/or other forms of value. The term business model' is thus used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies.
In the most basic sense, a business model is the method of doing business by which a company can sustain itself. That is, generate revenue. The business model spells-out how a company makes money by specifying where it is positioned in the value chain.
In the most basic sense, a business model is the method of doing business by which a company can sustain itself. That is, generate revenue. The business model spells-out how a company makes money by specifying where it is positioned in the value chain.
e-Business process modeling
Business process modeling (BPM) in systems engineering and software engineering is the activity of representing processes of an enterprise, so that the current ("as is") process may be analyzed and improved in future ("to be"). BPM is typically performed by business analysts and managers who are seeking to improve process efficiency and quality. The process improvements identified by BPM may or may not require Information Technology involvement, although that is a common driver for the need to moChange management programs are typically involved to put the improved business processes into practice. With advances in technology from large platform vendors, the vision of BPM models becoming fully executable (and capable of simulations and round-trip engineering) is coming closer to reality every day.del a business process, by creating a process master.
IBP Applications in e-business and e-commerce
IBP has been used to successfully model and integrate the planning efforts in a number of applications, including:
Product profitability
Customer profitability
Capital expenditures
Manufacturing operations
Supply chain
Business processes (human and information-based)
Business policy
Market demand curves
Competitive strategy
Product profitability
Customer profitability
Capital expenditures
Manufacturing operations
Supply chain
Business processes (human and information-based)
Business policy
Market demand curves
Competitive strategy
Benefits of e-business and e-commerce
IBP transforms planning into a decisive competitive advantage by:[citation needed]
Providing an integrated planning platform across marketing, operations and finance
Generating a holistic understanding of performance drivers
Quantifying the financial impact and interdependencies across planning alternatives
Optimizing strategic planning and resource allocation
Balancing sales and operations planning for profitability
Quantifying financial risk
Increasing business flexibility
Providing an integrated planning platform across marketing, operations and finance
Generating a holistic understanding of performance drivers
Quantifying the financial impact and interdependencies across planning alternatives
Optimizing strategic planning and resource allocation
Balancing sales and operations planning for profitability
Quantifying financial risk
Increasing business flexibility
Analyses of e-bussiness and e-commerce
Companies use IBP to translate insight into financial impact by providing analyses such as:[citation needed] Identification of top financial (profit) drivers
Answers to “what-if” questions
Simulation
Optimization to any variable or ratio, including balance sheet, profitability, NPV, cash flow, etc
Intelligent sensitivity analysis
Modeling infeasibilities
Understanding of unique performance driver relationships
Opportunity costs and marginal economic value Dr. Whitehair, working in collaboration with scientists in the U.S. and the Russian Academy of Science, solved the problem of scaling real-life situations in mathematical equivalents. Today, IBP software easily runs thousands of analyses of a mathematical representation of ~1,000,000 equations, each in excess of 1,000,000 variables, in a typical solve.[citation needed]
In broad terms, the use of mathematical representations and extensive knowledge bases enable users to build the massive, multivariable models required for Integrated Business Planning
Answers to “what-if” questions
Simulation
Optimization to any variable or ratio, including balance sheet, profitability, NPV, cash flow, etc
Intelligent sensitivity analysis
Modeling infeasibilities
Understanding of unique performance driver relationships
Opportunity costs and marginal economic value Dr. Whitehair, working in collaboration with scientists in the U.S. and the Russian Academy of Science, solved the problem of scaling real-life situations in mathematical equivalents. Today, IBP software easily runs thousands of analyses of a mathematical representation of ~1,000,000 equations, each in excess of 1,000,000 variables, in a typical solve.[citation needed]
In broad terms, the use of mathematical representations and extensive knowledge bases enable users to build the massive, multivariable models required for Integrated Business Planning
History of IBP
The roots of IBP date back to 1996 where Dr. Robert Whitehair, working at the University of Massachusetts, developed technology for capturing and exploiting expert knowledge. Dr. Whitehair worked in close collaboration with several colleagues, including Professor Igor Budyachevsky of the Russian Academy of Science, to develop a technology now called COR (Constraint Oriented Reasoning). COR technology was used to capture expert knowledge; then embed it in applications that allow users to leverage it through a natural language interface.
Using grant funding from corporate giants such as Chase, DuPont, General Electric, PricewaterhouseCoopers, Shell and the Williams Company, Dr. Whitehair captured expert knowledge from numerous disciplines and introduced an application for business analysis that empowered decision makers.[1]
Using grant funding from corporate giants such as Chase, DuPont, General Electric, PricewaterhouseCoopers, Shell and the Williams Company, Dr. Whitehair captured expert knowledge from numerous disciplines and introduced an application for business analysis that empowered decision makers.[1]
Integrated e-business planning
Integrated business planning (IBP) refers to the technologies, applications and processes of connecting the planning function across the enterprise to improve organizational alignment and financial performance. IBP accurately represents a holistic model of the company[citation needed] in order to link strategic planning and operational planning with financial planning.
By deploying a single model across the enterprise and leveraging the organization’s information assets, corporate executives, business unit heads and planning managers use IBP to evaluate plans and activities based on the true economic impact of each consideration.
By deploying a single model across the enterprise and leveraging the organization’s information assets, corporate executives, business unit heads and planning managers use IBP to evaluate plans and activities based on the true economic impact of each consideration.
E-Business intelligence and data warehousing
Often BI applications use data gathered from a data warehouse or a data mart. However, not all data warehouses are used for business intelligence nor do all business intelligence applications require a data warehouse.
[edit] Competitive intelligence
The term business intelligence is often used as a synonym for competitive intelligence.
[edit] The future of business intelligence
A 2009 Gartner Group paper predicted these developments in business intelligence market .[3]
Because of lack of information, processes, and tools, through 2012, more than 35 per cent of the top 5,000 global companies will regularly fail to make insightful decisions about significant changes in their business and markets.
By 2012, business units will control at least 40 per cent of the total budget for business intelligence.
By 2010, 20 per cent of organizations will have an industry-specific analytic application delivered via software as a service as a standard component of their business intelligence portfolio.
In 2009, collaborative decision making will emerge as a new product category that combines social software with business intelligence platform capabilities.
By 2012, one-third of analytic applications applied to business processes will be delivered through coarse-grained application mashups.
[edit] Competitive intelligence
The term business intelligence is often used as a synonym for competitive intelligence.
[edit] The future of business intelligence
A 2009 Gartner Group paper predicted these developments in business intelligence market .[3]
Because of lack of information, processes, and tools, through 2012, more than 35 per cent of the top 5,000 global companies will regularly fail to make insightful decisions about significant changes in their business and markets.
By 2012, business units will control at least 40 per cent of the total budget for business intelligence.
By 2010, 20 per cent of organizations will have an industry-specific analytic application delivered via software as a service as a standard component of their business intelligence portfolio.
In 2009, collaborative decision making will emerge as a new product category that combines social software with business intelligence platform capabilities.
By 2012, one-third of analytic applications applied to business processes will be delivered through coarse-grained application mashups.
Business intelligence
Business intelligence (BI) refers to skills, technologies, applications and practices used to help a business acquire a better understanding of its commercial context. Business intelligence may also refer to the collected information itself.
BI applications provide historical, current, and predictive views of business operations. Common functions of business intelligence applications are reporting, OLAP, analytics, data mining, business performance management, benchmarks, text mining, and predictive analytics.
Business intelligence often aims to support better business decision-making.[1] Thus a BI system can be called a decision support system ( a 1958 article, IBM researcher Hans Peter Luhn used the term business intelligence. He defined intelligence as:[1] "the ability to apprehend the interrelationships of presented facts in such a way as to guide action towards a desired goal."
In 1989 Howard Dresner (later a Gartner Group analyst) proposed BI as an umbrella term to describe "concepts and methods to improve business decision making by using fact-based support systems."[2] It was not until the late 1990s that this usage was widespread.
BI applications provide historical, current, and predictive views of business operations. Common functions of business intelligence applications are reporting, OLAP, analytics, data mining, business performance management, benchmarks, text mining, and predictive analytics.
Business intelligence often aims to support better business decision-making.[1] Thus a BI system can be called a decision support system ( a 1958 article, IBM researcher Hans Peter Luhn used the term business intelligence. He defined intelligence as:[1] "the ability to apprehend the interrelationships of presented facts in such a way as to guide action towards a desired goal."
In 1989 Howard Dresner (later a Gartner Group analyst) proposed BI as an umbrella term to describe "concepts and methods to improve business decision making by using fact-based support systems."[2] It was not until the late 1990s that this usage was widespread.
Free and Open Source CRM Software
As the enterprise CRM market grows, many companies and small groups of developers are focusing on creating CRM software that is distributed freely on the Internet or offered at a fraction of the price of classic enterprise CRM software. However, many vendors charge for support. The software typically offers similar features to popular enterprise software packages. Some of the more popular include:
EBI Neutrino R1 CRM java
OpenERP - python
Compiere - java
Adempiere - java
Openbravo - java
Ofbiz - java
xTuple - integrated ERP, C++
Vtiger_CRM - php
SugarCRM - php
CiviCRM - php
Opentaps - java
XLsuite - ruby (RubyOnRails) - full stack CRM and ERP system
eWay CRM - .NET
EBI Neutrino R1 CRM java
OpenERP - python
Compiere - java
Adempiere - java
Openbravo - java
Ofbiz - java
xTuple - integrated ERP, C++
Vtiger_CRM - php
SugarCRM - php
CiviCRM - php
Opentaps - java
XLsuite - ruby (RubyOnRails) - full stack CRM and ERP system
eWay CRM - .NET
Privacy and data security e-commerce and e-business
One of the primary functions of CRM software is to collect information about customers. When gathering data as part of a CRM solution, a company must consider the desire for customer privacy and data security, as well as the legislative and cultural norms. Some customers prefer assurances that their data will not be shared with third parties without their prior consent and that safeguards are in place to preventA 2007 Datamonitor report [12] lists Oracle (including Siebel) and SAP as the top CRM vendors, with Chordiant, Infor, and SalesForce.com as significant, smaller vendors. illegal access by third parties
Implementation Issues e-commerce e-business
Many CRM project "failures" are also related to data quality and availability. Data cleaning is a major issue. If a company's CRM strategy is to track life-cycle revenues, costs, margins, and interactions between individual customers, this must be reflected in all business processes. Data must be extracted from multiple sources (e.g., departmental/divisional databases such as sales, manufacturing, supply chain, logistics, finance, service etc.), which requires an integrated, comprehensive system in place with well-defined structures and high data quality. Data from other systems can be transferred to CRM systems using appropriate interfaces.
Because of the company-wide size and scope of many CRM implementations, significant pre-planning is essential for smooth roll-out. This pre-planning involves a technical evaluation of the data available and the technology employed in existing systems. This evaluation is critical to determine the level of effort needed to integrate this data.
Equally critical is the human aspect of the implementation. A successful implementation requires an understanding of the expectations and needs of the stakeholders involved. An executive sponsor should also be obtained to provide high-level management representation of the CRM project.
An effective tool for identifying technical and human factors before beginning a CRM project is a pre-implementation checklist.[9] A checklist can help ensure any potential problems are identified early in the process.
Because of the company-wide size and scope of many CRM implementations, significant pre-planning is essential for smooth roll-out. This pre-planning involves a technical evaluation of the data available and the technology employed in existing systems. This evaluation is critical to determine the level of effort needed to integrate this data.
Equally critical is the human aspect of the implementation. A successful implementation requires an understanding of the expectations and needs of the stakeholders involved. An executive sponsor should also be obtained to provide high-level management representation of the CRM project.
An effective tool for identifying technical and human factors before beginning a CRM project is a pre-implementation checklist.[9] A checklist can help ensure any potential problems are identified early in the process.
Types/Variations of CRM e-commerce and e-business
There are several different approaches to CRM, with different software packages focusing on different aspects. In general, Customer Service, Campaign Management and Sales Force Automation form the core of the system (with SFA being the most popular[citation needed]).
[edit] Operational CRM
Operational CRM provides support to "front office" business processes, e.g. to sales, marketing and service staff. Interactions with customers are generally stored in customers' contact histories, and staff can retrieve customer information as necessary.
The contact history provides staff members with immediate access to important information on the customer (products owned, prior support calls etc.), eliminating the need to individually obtain this information directly from the customer. Reaching to the customer at right time at right place is preferable.
Operational CRM processes customer data for a variety of purposes:
Managing campaigns
Enterprise Marketing Automation
Sales Force Automation
Sales Management System
[edit] Operational CRM
Operational CRM provides support to "front office" business processes, e.g. to sales, marketing and service staff. Interactions with customers are generally stored in customers' contact histories, and staff can retrieve customer information as necessary.
The contact history provides staff members with immediate access to important information on the customer (products owned, prior support calls etc.), eliminating the need to individually obtain this information directly from the customer. Reaching to the customer at right time at right place is preferable.
Operational CRM processes customer data for a variety of purposes:
Managing campaigns
Enterprise Marketing Automation
Sales Force Automation
Sales Management System
Customer relationship management in e-commerce and e-business
Customer relationship management (CRM) consists of the processes a company uses to track and organize its contacts with its current and prospective customers. CRM software is used to support these processes; information about customers and customer interactions can be entered, stored and accessed by employees in different company departments. Typical CRM goals are to improve services provided to customers, and to use customer contact information for targeted marketing.
While the term CRM generally refers to a software-based approach to handling customer relationships, most CRM software vendors stress that a successful CRM effort requires a holistic approach.[1] CRM initiatives often fail because implementation was limited to software installation, without providing the context, support and understanding for employees to learn, and take full advantage of the information systems.[2] CRM can be implemented without major investments in software, but software is often necessary to explore the full benefits of a CRM strategy.
Other problems occur[3] when failing to think of sales as the output of a process that itself needs to be studied and taken into account when planning automation[
While the term CRM generally refers to a software-based approach to handling customer relationships, most CRM software vendors stress that a successful CRM effort requires a holistic approach.[1] CRM initiatives often fail because implementation was limited to software installation, without providing the context, support and understanding for employees to learn, and take full advantage of the information systems.[2] CRM can be implemented without major investments in software, but software is often necessary to explore the full benefits of a CRM strategy.
Other problems occur[3] when failing to think of sales as the output of a process that itself needs to be studied and taken into account when planning automation[
Electronic business
Electronic Business, commonly referred to as "eBusiness" or "e-Business", may be defined as the utilization of information and communication technologies (ICT) in support of all the activities of business. Commerce constitutes the exchange of products and services between businesses, groups and individuals and hence can be seen as one of the essential activities of any business. Hence, electronic commerce or eCommerce focuses on the use of ICT to enable the external activities and relationships of the business with individuals, groups and other businesses [1].
Louis Gerstner, the former CEO of IBM, in his book, Who Says Elephants Can't Dance? attributes the term "e-Business" to IBM's marketing and Internet teams in 1996.
Electronic business methods enable companies to link their internal and external data processing systems more efficiently and flexibly, to work more closely with suppliers and partners, and to better satisfy the needs and expectations of their customers.
In practice, e-business is more than just e-commerce. While e-business refers to more strategic focus with an emphasis on the functions that occur using electronic capabilities, e-commerce is a subset of an overall e-business strategy. E-commerce seeks to add revenue streams using the World Wide Web or the Internet to build and enhance relationships with clients and partners and to improve efficiency using the Empty Vessel strategy. Often, e-commerce involves the application of knowledge management systems.
E-business involves business processes spanning the entire value chain: electronic purchasing and supply chain management, processing orders electronically, handling customer service, and cooperating with business partners. Special technical standards for e-business facilitate the exchange of data between companies. E-business software solutions allow the integration of intra and inter firm business processes. E-business can be conducted using the Web, the Internet, intranets, extranets, or some combination of these.
Louis Gerstner, the former CEO of IBM, in his book, Who Says Elephants Can't Dance? attributes the term "e-Business" to IBM's marketing and Internet teams in 1996.
Electronic business methods enable companies to link their internal and external data processing systems more efficiently and flexibly, to work more closely with suppliers and partners, and to better satisfy the needs and expectations of their customers.
In practice, e-business is more than just e-commerce. While e-business refers to more strategic focus with an emphasis on the functions that occur using electronic capabilities, e-commerce is a subset of an overall e-business strategy. E-commerce seeks to add revenue streams using the World Wide Web or the Internet to build and enhance relationships with clients and partners and to improve efficiency using the Empty Vessel strategy. Often, e-commerce involves the application of knowledge management systems.
E-business involves business processes spanning the entire value chain: electronic purchasing and supply chain management, processing orders electronically, handling customer service, and cooperating with business partners. Special technical standards for e-business facilitate the exchange of data between companies. E-business software solutions allow the integration of intra and inter firm business processes. E-business can be conducted using the Web, the Internet, intranets, extranets, or some combination of these.
What is B2G e-commerce?
Business-to-government e-commerce or B2G is generally defined as commerce be-
tween companies and the public sector. It refers to the use of the Internet for public
procurement, licensing procedures, and other government-related operations. This kind
of e-commerce has two features: first, the public sector assumes a pilot/leading role in
establishing e-commerce; and second, it is assumed that the public sector has the
greatest need for making its procurement system more effective.
15
Web-based purchasing policies increase the transparency of the procurement proc-
ess (and reduces the risk of irregularities). To date, however, the size of the B2G e-
commerce market as a component of total e-commerce is insignificant, as govern-
ment e-procurement systems remain undeveloped
tween companies and the public sector. It refers to the use of the Internet for public
procurement, licensing procedures, and other government-related operations. This kind
of e-commerce has two features: first, the public sector assumes a pilot/leading role in
establishing e-commerce; and second, it is assumed that the public sector has the
greatest need for making its procurement system more effective.
15
Web-based purchasing policies increase the transparency of the procurement proc-
ess (and reduces the risk of irregularities). To date, however, the size of the B2G e-
commerce market as a component of total e-commerce is insignificant, as govern-
ment e-procurement systems remain undeveloped
Tuesday, April 7, 2009
Leveling the Playing Field through E-commerce:The Case of Amazon.com
Amazon.com is a virtual bookstore. It does not have a single square foot of bricks and mortar
retail floor space. Nonetheless, Amazon.com is posting an annual sales rate of approxi-
mately $1.2 billion, equal to about 235 Barnes & Noble (B&N) superstores. Due to the
efficiencies of selling over the Web, Amazon has spent only $56 million on fixed assets,
while B&N has spent about $118 million for 235 superstores. (To be fair, Amazon has yet to
turn a profit, but this does not obviate the point that in many industries doing business
through e-commerce is cheaper than conducting business in a traditional brick-and-mortar
company.)
retail floor space. Nonetheless, Amazon.com is posting an annual sales rate of approxi-
mately $1.2 billion, equal to about 235 Barnes & Noble (B&N) superstores. Due to the
efficiencies of selling over the Web, Amazon has spent only $56 million on fixed assets,
while B&N has spent about $118 million for 235 superstores. (To be fair, Amazon has yet to
turn a profit, but this does not obviate the point that in many industries doing business
through e-commerce is cheaper than conducting business in a traditional brick-and-mortar
company.)
What are the different types of e-commerce
The major different types of e-commerce are: business-to-business (B2B); business-
to-consumer (B2C); business-to-government (B2G); consumer-to-consumer (C2C);
and mobile commerce (m-commerce).
What is B2B e-commerce?
B2B e-commerce is simply defined as e-commerce between companies. This is the
type of e-commerce that deals with relationships between and among businesses.
About 80% of e-commerce is of this type, and most experts predict that B2B e-
commerce will continue to grow faster than the B2C segment.
The B2B market has two primary components: e-frastructure and e-markets. E-
frastructure is the architecture of B2B, primarily consisting of the following:
9
●
logistics - transportation, warehousing and distribution (e.g., Procter and Gam-
ble);
●
application service providers - deployment, hosting and management of pack-
aged software from a central facility (e.g., Oracle and Linkshare);
●
outsourcing of functions in the process of e-commerce, such as Web-hosting,
security and customer care solutions (e.g., outsourcing providers such as
eShare, NetSales, iXL Enterprises and Universal Access);
●
auction solutions software for the operation and maintenance of real-time auc-
tions in the Internet (e.g., Moai Technologies and OpenSite Technologies);
●
content management software for the facilitation of Web site content manage-
ment and delivery (e.g., Interwoven and ProcureNet); and
●
Web-based commerce enablers (e.g., Commerce One, a browser-based, XML-
enabled purchasing automation software).
E-markets are simply defined as Web sites where buyers and sellers interact with
each other and conduct transactions.
to-consumer (B2C); business-to-government (B2G); consumer-to-consumer (C2C);
and mobile commerce (m-commerce).
What is B2B e-commerce?
B2B e-commerce is simply defined as e-commerce between companies. This is the
type of e-commerce that deals with relationships between and among businesses.
About 80% of e-commerce is of this type, and most experts predict that B2B e-
commerce will continue to grow faster than the B2C segment.
The B2B market has two primary components: e-frastructure and e-markets. E-
frastructure is the architecture of B2B, primarily consisting of the following:
9
●
logistics - transportation, warehousing and distribution (e.g., Procter and Gam-
ble);
●
application service providers - deployment, hosting and management of pack-
aged software from a central facility (e.g., Oracle and Linkshare);
●
outsourcing of functions in the process of e-commerce, such as Web-hosting,
security and customer care solutions (e.g., outsourcing providers such as
eShare, NetSales, iXL Enterprises and Universal Access);
●
auction solutions software for the operation and maintenance of real-time auc-
tions in the Internet (e.g., Moai Technologies and OpenSite Technologies);
●
content management software for the facilitation of Web site content manage-
ment and delivery (e.g., Interwoven and ProcureNet); and
●
Web-based commerce enablers (e.g., Commerce One, a browser-based, XML-
enabled purchasing automation software).
E-markets are simply defined as Web sites where buyers and sellers interact with
each other and conduct transactions.
Is the Internet economy synonymous with e-commerce and e-business?The Internet economy is a broader concept than e-commerce and e-business. Itincludes
The Internet economy is a broader concept than e-commerce and e-business. It
includes e-commerce and e-business.
The Internet economy pertains to all economic activities using electronic networks
as a medium for commerce or those activities involved in both building the net-
works linked to the Internet and the purchase of application services
7
such as the
provision of enabling hardware and software and network equipment for Web-based/
online retail and shopping malls (or “e-malls”). It is made up of three major segments:
physical (ICT) infrastructure, business infrastructure, and commerce.
includes e-commerce and e-business.
The Internet economy pertains to all economic activities using electronic networks
as a medium for commerce or those activities involved in both building the net-
works linked to the Internet and the purchase of application services
7
such as the
provision of enabling hardware and software and network equipment for Web-based/
online retail and shopping malls (or “e-malls”). It is made up of three major segments:
physical (ICT) infrastructure, business infrastructure, and commerce.
Three primary processes are enhanced in e-business
Production processes, which include procurement, ordering and replenish-
ment of stocks; processing of payments; electronic links with suppliers; and
production control processes, among others;
2. Customer-focused processes, which include promotional and marketing ef-
forts, selling over the Internet, processing of customers’ purchase orders and
payments, and customer support, among others; and
3. Internal management processes, which include employee services, train-
ing, internal information-sharing, video-conferencing, and recruiting. Electronic
applications enhance information flow between production and sales forces
to improve sales force productivity. Workgroup communications and elec-
tronic publishing of internal business information are likewise made more
efficient
ment of stocks; processing of payments; electronic links with suppliers; and
production control processes, among others;
2. Customer-focused processes, which include promotional and marketing ef-
forts, selling over the Internet, processing of customers’ purchase orders and
payments, and customer support, among others; and
3. Internal management processes, which include employee services, train-
ing, internal information-sharing, video-conferencing, and recruiting. Electronic
applications enhance information flow between production and sales forces
to improve sales force productivity. Workgroup communications and elec-
tronic publishing of internal business information are likewise made more
efficient
What is e-commerce
Electronic commerce or e-commerce refers to a wide range of online business activi-
ties for products and services.
1
It also pertains to “any form of business transaction in
which the parties interact electronically rather than by physical exchanges or direct
physical contact.”
2
E-commerce is usually associated with buying and selling over the Internet, or con-
ducting any transaction involving the transfer of ownership or rights to use goods or
services through a computer-mediated network.
3
Though popular, this definition is
not comprehensive enough to capture recent developments in this new and revolu-
tionary business phenomenon. A more complete definition is: E-commerce is the
use of electronic communications and digital information processing technology in
business transactions to create, transform, and redefine relationships for value crea-
tion between or among organizations, and between organizations and individuals.
4
International Data Corp (IDC) estimates the value of global e-commerce in 2000 at
US$350.38 billion. This is projected to climb to as high as US$3.14 trillion by 2004.
IDC also predicts an increase in Asia’s percentage share in worldwide e-commerce
revenue from 5% in 2000 to 10% in 2004 (See Figure 1).
Figure 1. Worldwide E-Commerce Revenue, 2000 &2004
(as a % share of each country/region)
Page 7
7
Asia-Pacific e-commerce revenues are projected to increase from $76.8 billion at
year-end of 2001 to $338.5 billion by the end of 2004.
Is e-commerce the same as e-business?
While some use e-commerce and e-business interchangeably, they are distinct con-
cepts. In e-commerce, information and communications technology (ICT) is used in
inter-business or inter-organizational transactions (transactions between and among
firms/organizations) and in business-to-consumer transactions (transactions between
firms/organizations and individuals).
In e-business, on the other hand, ICT is used to enhance one’s business. It in-
cludes any process that a business organization (either a for-profit, governmental
or non-profit entity) conducts over a computer-mediated network. A more comprehen-
sive definition of e-business is: “The transformation of an organization’s processes to
deliver additional customer value through the application of technologies, philoso-
phies and computing paradigm of the new economy.”
ties for products and services.
1
It also pertains to “any form of business transaction in
which the parties interact electronically rather than by physical exchanges or direct
physical contact.”
2
E-commerce is usually associated with buying and selling over the Internet, or con-
ducting any transaction involving the transfer of ownership or rights to use goods or
services through a computer-mediated network.
3
Though popular, this definition is
not comprehensive enough to capture recent developments in this new and revolu-
tionary business phenomenon. A more complete definition is: E-commerce is the
use of electronic communications and digital information processing technology in
business transactions to create, transform, and redefine relationships for value crea-
tion between or among organizations, and between organizations and individuals.
4
International Data Corp (IDC) estimates the value of global e-commerce in 2000 at
US$350.38 billion. This is projected to climb to as high as US$3.14 trillion by 2004.
IDC also predicts an increase in Asia’s percentage share in worldwide e-commerce
revenue from 5% in 2000 to 10% in 2004 (See Figure 1).
Figure 1. Worldwide E-Commerce Revenue, 2000 &2004
(as a % share of each country/region)
Page 7
7
Asia-Pacific e-commerce revenues are projected to increase from $76.8 billion at
year-end of 2001 to $338.5 billion by the end of 2004.
Is e-commerce the same as e-business?
While some use e-commerce and e-business interchangeably, they are distinct con-
cepts. In e-commerce, information and communications technology (ICT) is used in
inter-business or inter-organizational transactions (transactions between and among
firms/organizations) and in business-to-consumer transactions (transactions between
firms/organizations and individuals).
In e-business, on the other hand, ICT is used to enhance one’s business. It in-
cludes any process that a business organization (either a for-profit, governmental
or non-profit entity) conducts over a computer-mediated network. A more comprehen-
sive definition of e-business is: “The transformation of an organization’s processes to
deliver additional customer value through the application of technologies, philoso-
phies and computing paradigm of the new economy.”
What is E-commerce and e-business
In the emerging global economy, e-commerce and e-business have increasingly be-
come a necessary component of business strategy and a strong catalyst for eco-
nomic development. The integration of information and communications technology
(ICT) in business has revolutionized relationships within organizations and those be-
tween and among organizations and individuals. Specifically, the use of ICT in busi-
ness has enhanced productivity, encouraged greater customer participation, and ena-
bled mass customization, besides reducing costs.
With developments in the Internet and Web-based technologies, distinctions be-
tween traditional markets and the global electronic marketplace-such as business
capital size, among others-are gradually being narrowed down. The name of the
game is strategic positioning, the ability of a company to determine emerging op-
portunities and utilize the necessary human capital skills (such as intellectual re-
sources) to make the most of these opportunities through an e-business strategy
that is simple, workable and practicable within the context of a global information
milieu and new economic environment. With its effect of leveling the playing field,
e-commerce coupled with the appropriate strategy and policy approach enables
small and medium scale enterprises to compete with large and capital-rich busi-
nesses.
On another plane, developing countries are given increased access to the global
marketplace, where they compete with and complement the more developed econo-
mies. Most, if not all, developing countries are already participating in e-commerce,
either as sellers or buyers. However, to facilitate e-commerce growth in these coun-
tries, the relatively underdeveloped information infrastructure must be improved.
Among the areas for policy intervention are:
●
High Internet access costs, including connection service fees, communication
fees, and hosting charges for websites with sufficient bandwidth;
●
Limited availability of credit cards and a nationwide credit card system;
●
Underdeveloped transportation infrastructure resulting in slow and uncertain
delivery of goods and services;
●
Network security problems and insufficient security safeguards;
●
Lack of skilled human resources and key technologies (i.e., inadequate profes-
sional IT workforce);
●
Content restriction on national security and other public policy grounds, which
greatly affect business in the field of information services, such as the media
and entertainment sectors;
come a necessary component of business strategy and a strong catalyst for eco-
nomic development. The integration of information and communications technology
(ICT) in business has revolutionized relationships within organizations and those be-
tween and among organizations and individuals. Specifically, the use of ICT in busi-
ness has enhanced productivity, encouraged greater customer participation, and ena-
bled mass customization, besides reducing costs.
With developments in the Internet and Web-based technologies, distinctions be-
tween traditional markets and the global electronic marketplace-such as business
capital size, among others-are gradually being narrowed down. The name of the
game is strategic positioning, the ability of a company to determine emerging op-
portunities and utilize the necessary human capital skills (such as intellectual re-
sources) to make the most of these opportunities through an e-business strategy
that is simple, workable and practicable within the context of a global information
milieu and new economic environment. With its effect of leveling the playing field,
e-commerce coupled with the appropriate strategy and policy approach enables
small and medium scale enterprises to compete with large and capital-rich busi-
nesses.
On another plane, developing countries are given increased access to the global
marketplace, where they compete with and complement the more developed econo-
mies. Most, if not all, developing countries are already participating in e-commerce,
either as sellers or buyers. However, to facilitate e-commerce growth in these coun-
tries, the relatively underdeveloped information infrastructure must be improved.
Among the areas for policy intervention are:
●
High Internet access costs, including connection service fees, communication
fees, and hosting charges for websites with sufficient bandwidth;
●
Limited availability of credit cards and a nationwide credit card system;
●
Underdeveloped transportation infrastructure resulting in slow and uncertain
delivery of goods and services;
●
Network security problems and insufficient security safeguards;
●
Lack of skilled human resources and key technologies (i.e., inadequate profes-
sional IT workforce);
●
Content restriction on national security and other public policy grounds, which
greatly affect business in the field of information services, such as the media
and entertainment sectors;
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