This article discusses the increasing concerns over the amount of firms that are outsourcing their hardware and software management. Though being beneficial is of high importance in terms of time and cost savings of 20-40%; concerns are being raised by people with obvious self-interest. The potential loss of jobs relates directly to the loss of their standard of living. It also mentions that while the operations of outsource in countries like U.S, Britain and India are considered safe nervousness is beginning to grow among companies and the government, with the possibility of abuse by hackers and cyber terrorist countries.
According to the Forrester Research of Cambridge, Mass, forecasts that the acceleration in the outsourcing would result in 3.3 million American job’s moving offshore by 2015. It also estimated that 70% of these jobs will move to India, 20% to Philippines and 10% to China. Transferring every management to offshore can be risky unless evaluating the particular needs. As at Intel, all the software were being reviewed for safety though the cost is more, but it protects you from making big mistakes.
It has proven to be beneficial for companies engaging in offshore outsourcing, yet it is very important to assess the reliability of such process of management. It is also necessary to check for every possible glitch that could bring problems and increase their total cost of ownership or corrupt the system.
Experts See Vulnerability As Outsiders Code Software
JOHN SCHWARTZ
New York Times (1857-Current file); Jan 6, 2003; Retrieved on June 7, 2008 from ProQuest Historical Newspapers The New York Times
Sunday, June 8, 2008
Nestle Tries for an All-For-One Global Strategy
Q2. What type of global business and systems strategy did Nestle adopt? Was this strategy appropriate for Nestlé’s business model?
Ans: The traditional strategy of decentralized strategy at Nestle had created inefficiency; preventing the company from competing successfully on e-commerce. Thus, in order to solve the problem, Nestle adopted the strategy of global standardization of operational process. This will help the company standardize and coordinate its information systems and business process rather than managing 80 different information technologies.
The adopted strategy was initially considered inappropriate for the wide spread business operations. Though at the end, it proved to be beneficial for the company in cost savings and increasing its overall productivity.
Q3. What management, organization, and technology challenges did Nestle have to deal with to standardize its business processes and systems?
Ans:
Management: The challenge faced was the decentralization of the business process. Each local organization conducted business in their own culture which prevented Nestle from leveraging worldwide buying power to obtain lower prices for raw materials.
Organization: The challenges Nestle faced in the organizational, was lacking truly global brand products. Its products were being rebranded, repackaged and reformulated according to the preferences of each region.
Technology: Technically, Nestle faced the challenges in supporting 80 different information technology units, running nearly 900 IBM AS/400 midrange computers, 15 mainframes and 200 UNIX systems. This prompted observers to describe Nestlé’s infrastructure as a Tower of Babel.
Ans: The traditional strategy of decentralized strategy at Nestle had created inefficiency; preventing the company from competing successfully on e-commerce. Thus, in order to solve the problem, Nestle adopted the strategy of global standardization of operational process. This will help the company standardize and coordinate its information systems and business process rather than managing 80 different information technologies.
The adopted strategy was initially considered inappropriate for the wide spread business operations. Though at the end, it proved to be beneficial for the company in cost savings and increasing its overall productivity.
Q3. What management, organization, and technology challenges did Nestle have to deal with to standardize its business processes and systems?
Ans:
Management: The challenge faced was the decentralization of the business process. Each local organization conducted business in their own culture which prevented Nestle from leveraging worldwide buying power to obtain lower prices for raw materials.
Organization: The challenges Nestle faced in the organizational, was lacking truly global brand products. Its products were being rebranded, repackaged and reformulated according to the preferences of each region.
Technology: Technically, Nestle faced the challenges in supporting 80 different information technology units, running nearly 900 IBM AS/400 midrange computers, 15 mainframes and 200 UNIX systems. This prompted observers to describe Nestlé’s infrastructure as a Tower of Babel.
Sunday, June 1, 2008
Can the U.S. Army Reserve Pay Soldiers Correctly?
Q1. Write a system analysis report about the U.S. Army pay system. What have been the problems with existing systems? What management, organization, and technology factors caused the problems? What was the impact of these problems? What are the objectives and information requirements of a new systems solution?
Answer:
1. Problems in existing system: The existing pay system has dire problems of asymmetrical payments. The inability to keep up-to-date information is caused by an out-of-date system. This old system requires the manual input of updates, resulting in increasing chances of error occurrence.
2. Management, operation and technological problems: The problems in their management and operation are lacking a system that, automatically updates changes. It also lacks integration between the Personnel System and the Regional Level Application system to process the salaries, bonuses and benefits.
Moreover, the technologies are been in use since the Vietnam War. The old aged systems needed manual updates, increasing potential for error. The languages used to write the systems are dated back to 40 years making it unable to work at an acceptable level.
3. Impacts of the problems:
-Increasing possibility of system damage without proper documentation
-High degree of error due to constant need for manual updates
-Soldiers have to file correct tax returns due to lacking revise tax rates.
-Report of overpayment to 1,300 soldiers worth 1.5 millions.
-Demand for return of overpayment to families of the deceased, for error in active status
4. Objectives and information requirement of a new systems solution: The main objective is to have a flexible new system that will enable the personnel and regional system to integrate smoothly. The system also needed to automatically update the current deployment and redeployment status of the soldiers.
Q3. Describe the role of end users and technical specialist in analyzing the problem and developing a solution.
Answer: The end user shouldn’t have to re-enter data once this system is in place. And the amount of duplicate work will be eliminated. The Unit Commander was responsible for processing the hard copy of any mobilization. If this was not done; payroll would not know the pay scale. The proper check amounts will be sent without further errors. The ‘new system’ is still on the drawing board, since 2006. The system will have the capability to encompass the payment processing with mass updates for various degrees of duty pay.
The solution will be to build a system that automatically updates the occurring changes in a soldier’s status, to reduce manual error. There is need for a centralized database system that collects all the information and when needed, updates and sends to the particular payroll or personnel system. Also, the system should have a prolonged capability to hold the information rather deleting at the end of each 30 day cycle. This will efficiently and effectively improve their pay system by limiting their inaccuracy.
How much is enough?
I thought it was an interesting article, where the author Blanton Godfrey, pointing out that in Six Sigma, changes are made without sufficient proof of validity. The advantage in manufacturing and servicing environments is the verification of benefits from such changes; through ways of collecting data, strengthening the evidence. But, data will not always give positive results. Instead, the way to have significant results is to increase the power of detecting changes and reducing the scope of experiment.
The common phrase used in Six Sigma training and practice “failed to reject the null hypothesis” shows the presence of flaws, hindering in achieving significant results. The reasons: small sample size, correlations in variables, choosing the wrong model and the inability to detect changes.
During a speech at the Institute for Healthcare Improvement National Forum, Don Berwick (CEO) raised a critical question; when do you have sufficient proof of success to implement what you feel is a positive change?
In response, the author mentioned there is a need for additional statistics tools; do more real-time or unplanned experiments to gain insight and information of the organization. Generally, organizations fail in collecting and analyzing data carefully. The changes rarely get implemented 100% by all employees, at the same time. For example; at hospitals, a new drug is introduced – some doctors’ start administering it, while others continue to prescribe the older, more familiar drug. The implementation of process change in some organization also results in some employees immediately applying – while others take time to adapt.
An efficient and thorough study of the collected data and information will gain beneficial change in well designed and planned experiments.
ASQ Six Sigma Forum Magazine; Feb 2008; 7, 2; Retrieved on May 31st from ABI/INFORM Global
The common phrase used in Six Sigma training and practice “failed to reject the null hypothesis” shows the presence of flaws, hindering in achieving significant results. The reasons: small sample size, correlations in variables, choosing the wrong model and the inability to detect changes.
During a speech at the Institute for Healthcare Improvement National Forum, Don Berwick (CEO) raised a critical question; when do you have sufficient proof of success to implement what you feel is a positive change?
In response, the author mentioned there is a need for additional statistics tools; do more real-time or unplanned experiments to gain insight and information of the organization. Generally, organizations fail in collecting and analyzing data carefully. The changes rarely get implemented 100% by all employees, at the same time. For example; at hospitals, a new drug is introduced – some doctors’ start administering it, while others continue to prescribe the older, more familiar drug. The implementation of process change in some organization also results in some employees immediately applying – while others take time to adapt.
An efficient and thorough study of the collected data and information will gain beneficial change in well designed and planned experiments.
ASQ Six Sigma Forum Magazine; Feb 2008; 7, 2; Retrieved on May 31st from ABI/INFORM Global
Saturday, May 17, 2008
Mobile GIS Improves Productivity in the Field
This article talks about how the Laurens Electric Cooperative implemented the Geographic Information System (GIS) and improved productivity and increased efficiency among all their service vehicles and personnel. LEC is a non-profit member –owned utility company with 5000 customers. In 2004, the company equipped its 120 trucks with laptops embedded with GIS mobile software. This software is updated two or three times a week.
Saving Lineman Time: With the installation of GIS technology, the crewmen can easily find customers by name or ID. The zoom and pan technology enables locating pieces of equipment such as transformers and substations. Using the digital maps help linemen locate grid numbers, roads or customers. It also saves valuable time in repairs since all the information is at their fingertips. When the company first installed the computers it met with resistance from some of the crew members. This was mostly due to the “old tool mentality”. After the company had training sessions the crewmen realized the value of such a system.
Minimizing Outages: This digital mapping saves time and becomes invaluable during storms. The GIS software helps the crews identify problems and get an individual, substation or subdivision back on-line, quickly. By seeing where exactly the problem area is visually on a map, the field crews can make better decisions in terms of how to restore power.
If the need arises the GIS can be updated continuously. It keeps management informed of the location, of all their crews and dispatches them to specific locations.
Increasing Dispatch Efficiency: The mobile software effectively handles outage situations and improves the efficiency of dispatch. The interactive maps of the electrical system helps linemen find ways to deal with a power outage before they arrive at a location, thus increasing efficiency. This eliminates down time and the problem can be fixed much quickly. It also keeps management informed of the specific location where the job and the crew is.
In the past four years, LEC has continually updated and improved its GIS software and capabilities. LEC is now looking to partner with another system integrator that supports the electrical community and is exploring the possibility of investing in global positioning system technology.
Mobile GIS Improves Productivity in the Field; Transmission & Distribution World; Nov 2007; 59, 11; Retrived on May 15 from ABI/INFORM Global
Saving Lineman Time: With the installation of GIS technology, the crewmen can easily find customers by name or ID. The zoom and pan technology enables locating pieces of equipment such as transformers and substations. Using the digital maps help linemen locate grid numbers, roads or customers. It also saves valuable time in repairs since all the information is at their fingertips. When the company first installed the computers it met with resistance from some of the crew members. This was mostly due to the “old tool mentality”. After the company had training sessions the crewmen realized the value of such a system.
Minimizing Outages: This digital mapping saves time and becomes invaluable during storms. The GIS software helps the crews identify problems and get an individual, substation or subdivision back on-line, quickly. By seeing where exactly the problem area is visually on a map, the field crews can make better decisions in terms of how to restore power.
If the need arises the GIS can be updated continuously. It keeps management informed of the location, of all their crews and dispatches them to specific locations.
Increasing Dispatch Efficiency: The mobile software effectively handles outage situations and improves the efficiency of dispatch. The interactive maps of the electrical system helps linemen find ways to deal with a power outage before they arrive at a location, thus increasing efficiency. This eliminates down time and the problem can be fixed much quickly. It also keeps management informed of the specific location where the job and the crew is.
In the past four years, LEC has continually updated and improved its GIS software and capabilities. LEC is now looking to partner with another system integrator that supports the electrical community and is exploring the possibility of investing in global positioning system technology.
Mobile GIS Improves Productivity in the Field; Transmission & Distribution World; Nov 2007; 59, 11; Retrived on May 15 from ABI/INFORM Global
Friday, May 16, 2008
Can Information System Make Your Doctor Better?
Q1. What problems are hospitals and physicians encountering in diagnosing diseases and prescription medications? What management, organization, and technology factors are responsible for these problems?
Ans: Physicians encounter problems of misdiagnosing and wrong medications to their patients in hospitals, nursing homes and doctor’s office. As reported by the National Academy of Science’s Institute of Medicine that, each year more than 1.5 million Americans are injured by drug errors and estimation of more than 7,000 Americans die because of inappropriate prescriptions. Erroneous charges are incurred to patients for faulty medication bills amounting about $3.5 billion annually.
Human factor is the key responsible for these problems because of their handwriting, memory lapses, fatigue and distractions. The proliferation of medications also raises confusions and complexity for doctors in proper prescriptions.
Q3. What obstacles prevent computer systems from improving the medical industry? How can these obstacles be removed?
Ans: Computer systems like CPOE and DDS have proven to be very effective at hospitals; enhancing activities by saving time and people lives. The obstacles that prevent computer systems from improving the medical industry are:
1) The resistance from doctors to change the traditional way of treatment, due to the complexity of the system.
2) Simple glitches in the system increase the likelihood of ordering wrong medications by scattering patient data and drug ordering forms. The program needs to be well designed.
3) Lack of gearing these systems towards the nurse, who actually has the greater impact.
4) Rigidity of such a system over the traditional paperwork also obstruct from improving the medical industry.
The obstacles can be overcome if: effective communication among the medical staff is achieved. They also need to learn more about the system and trust it. Finally, the system must be designed to have thorough pertinent information regarding each patient.
Ans: Physicians encounter problems of misdiagnosing and wrong medications to their patients in hospitals, nursing homes and doctor’s office. As reported by the National Academy of Science’s Institute of Medicine that, each year more than 1.5 million Americans are injured by drug errors and estimation of more than 7,000 Americans die because of inappropriate prescriptions. Erroneous charges are incurred to patients for faulty medication bills amounting about $3.5 billion annually.
Human factor is the key responsible for these problems because of their handwriting, memory lapses, fatigue and distractions. The proliferation of medications also raises confusions and complexity for doctors in proper prescriptions.
Q3. What obstacles prevent computer systems from improving the medical industry? How can these obstacles be removed?
Ans: Computer systems like CPOE and DDS have proven to be very effective at hospitals; enhancing activities by saving time and people lives. The obstacles that prevent computer systems from improving the medical industry are:
1) The resistance from doctors to change the traditional way of treatment, due to the complexity of the system.
2) Simple glitches in the system increase the likelihood of ordering wrong medications by scattering patient data and drug ordering forms. The program needs to be well designed.
3) Lack of gearing these systems towards the nurse, who actually has the greater impact.
4) Rigidity of such a system over the traditional paperwork also obstruct from improving the medical industry.
The obstacles can be overcome if: effective communication among the medical staff is achieved. They also need to learn more about the system and trust it. Finally, the system must be designed to have thorough pertinent information regarding each patient.
Sunday, May 11, 2008
The Top 10 Most Significant Ecommerce Developments
This article clearly shows how the ecommerce had brought different developments in today’s way of doing business. There are lots of companies who are part of the ecommerce trend in the businesses. As in chapter 10 as well as in previous chapter, we use examples of companies like Google, eBay and others. This article shows the impact of such business on the overall operation of business.
The Software& Information Industry Association (SIIA) had unveiled a list of the top most significant ecommerce developments during the past decade on the 10th anniversary of the Framework for Global Electronic Commerce. From events to products to websites, the SIIA’s list of significant ecommerce developments of the past 10 years encompasses a wide range of innovations. This list was compiled and ranked by panel of policy and industry expert who were selected by SIIA’s staff.
Google (September 1998): The search engine is now used by 30% of internet users for services including maps, blogs and video.
Broadband Penetration of U.S. Internet Users Reached 50 % (June 2004): It took broadband 4 years to reach 50% of the population. By the end fo 2007, the number will reach an estimated 90%.
eBay Auctions(September 1997): After the growth of eBay, thousands of people quit their jobs and now earn money exclusively through online auctions.
Amazon.com (May 1997): The template for online stores, Amazon gained tremendous popularity through its ease of use and selection, and heralded the important role of ecommerce in the U.S.
Google Ad Words (2000): This was the beginning of keywords ads, which now represents 40% of the market share of online advertising.
Open Standards HTML 4.0 (released 1997): The World Wide Wed Consortium, which is not controlled by any company or government, oversees HTML standards. The opne standards allow entire industries to grow as benefit to everyone.
Wi-Fi 802.11 (Launched 1997): The Internet went from home and office into the worlds as Internet users were able to connect anywhere without cables and wires.
User-Generated Content (Youtube 2005): Youtube may have started with shaky, amateurish videos, but it is not an integral part of 2008 presidential campaign, the center pf copyright battles, and a place where anyone and everyone can express themselves.
iTunes (2001): In a world of pirated music and CD sales in decline, iTunes popularized the sale of legal music downloads, which has now generated more than $2 billion.
Blackberry (1999): This all-in-one communication device took the business world by storm, delivering Web in the palm of person’s hand.
These are the major companies that have and will be talked about when it comes to the evolution of technology. It’s so amazing to see the impact of such revolutionary in the development of e-commerce.
Scott Koerwer
Information Today; Sep 2007; 24, 8; ABI/INFORM Global
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