This article relates to Chapter 5 where it describes about the software tools such as Web Services and SOA (Service-Oriented Architecture); as the tool in improving the software applications. As defined, web-services as a set of loosely coupled software component that exchanged information using the web languages. And SOA is a set of self-contained services that communicate with each other to create a working software application.
Andy Scurto based this article on an Insurance company. He mentioned that as long as insurance companies have been around they have shared one thing in common with many other large businesses; they want to know all the details and how to save money.
Insurance companies have large capital invested in their inner workings and many times it may be outdated. There is a company called Tech Target, an on-line source of technology information that uses a combination of internet connections, software and other services that bring outdated systems up to par. The executives of the insurance companies are used to “hands on” and this was no longer required. Computing was no longer done internally but globally, where the programs were stored in a “cloud”. These computer clouds allow employees to access any application or service. All they have to do is request it and the cloud delivers.
With the clouds capabilities the computer environment has become globally interactive. Around the world these computing clouds are performing the various tasks that bring companies into today’s business world.
Similarly, our insurance agency run quotes look up information on new products, print applications and order exams all on-line. Other areas we use this service for is tracking the applicant’s policy through underwriting, crediting agents accounts and tracking their performance. It also has become convenient and easy to check up to date information and report back to the client or current policyholder. We require certain applications from the company and the company cloud delivers.
Andy Scurto
National Underwriter. P & C Erlanger; Mar 10, 2008; Volume 112, Issue 9; ABI/INFORM Global
Sunday, April 20, 2008
Merrill Lynch connects Past and Future Technology
Q1. Why did Merrill Lynch need to update its IT infrastructure?
Ans: Merrill Lynch had needed to update the IT infrastructure because of its critical role in the business operation. The technology platform of the past had been the key success in generating revenue and growth of the firm. It is the technology that had given Merrill Lynch a competitive advantage in the growing financial market.
Thus, in order to stay competitive, Merrill Lynch is compelled to modernize their infrastructure technology.
Q2. What is the relationship of information technology to Merrill Lynch’s business strategy? How was its web services initiative related to that strategy?
Ans: The information technology is very much embedded into Merrill Lynch business strategy. The company processes around 23,000 programs with 80 million daily on-line transactions shows a crucial role played by information technology. It is vital to the company to handle such volume of data, to better serve their clients and brokers.
The web service facilitates the business strategy of Merrill Lynch by making their operations more convenient and effective to their customers. It ensured security of the private information and provides flexibility in choosing the applications. On top, it also allows the firm to correct errors before launching the services. As such, Merrill Lynch saved $41 million in application development costs and boosted their investment by selling X4ML (web service tools) to SOA Software Inc.
Not to mention, the web service conformed the current mainframe security as well as web security for inscription, authentication and authorization.
Ans: Merrill Lynch had needed to update the IT infrastructure because of its critical role in the business operation. The technology platform of the past had been the key success in generating revenue and growth of the firm. It is the technology that had given Merrill Lynch a competitive advantage in the growing financial market.
Thus, in order to stay competitive, Merrill Lynch is compelled to modernize their infrastructure technology.
Q2. What is the relationship of information technology to Merrill Lynch’s business strategy? How was its web services initiative related to that strategy?
Ans: The information technology is very much embedded into Merrill Lynch business strategy. The company processes around 23,000 programs with 80 million daily on-line transactions shows a crucial role played by information technology. It is vital to the company to handle such volume of data, to better serve their clients and brokers.
The web service facilitates the business strategy of Merrill Lynch by making their operations more convenient and effective to their customers. It ensured security of the private information and provides flexibility in choosing the applications. On top, it also allows the firm to correct errors before launching the services. As such, Merrill Lynch saved $41 million in application development costs and boosted their investment by selling X4ML (web service tools) to SOA Software Inc.
Not to mention, the web service conformed the current mainframe security as well as web security for inscription, authentication and authorization.
Sunday, April 13, 2008
Article summary: Erosion of Trust--E-commerce and the Loss of Privacy
This article I found relates to Chapter 4; about how the information system leads to an ethical dilemma. It describes the development of trust by the consumer when doing e-business, and how to maintain it.
Some of the concerns expressed are the usage of cookies and web bugs that collect personal information. This information could be private information or sensitive, opening the possibility for fraud. With the information obtained by e-business, a company must develop a strong trust with consumers by assuring quality and protection.
According to The Federal Trade Commission (FTC), the self-regulation in the United States is failing to provide adequate protection for consumers. Legislation sought by the FTC would be based on four core elements: notice, choice, access and security.
· Clear notice to consumers of what information is collected and use.
· Choice as to how this information will be used for purposes beyond which it was originally collected
· Accessing of the collected information including a reasonable opportunity to correct inaccuracies and delete information.
· Reasonable security precautions to safeguard information collected about consumers.
Concerns over privacy in the US have been further deteriorated by the attempted sale of consumer information by dot-coms. With trust being the core foundation, lack of privacy is threatening the future of e-business. On one hand, e-commerce facilitates the gathering of information; however, many consumers consider such usage of collected information to be an invasion of their privacy.
There is neither a simple solution nor a single view on whether violation of privacy is ethical or not.
Information Systems Control Journal, Volume 3, 2001
By Jonathan D. Andrews, CA, CISA, FCA
Some of the concerns expressed are the usage of cookies and web bugs that collect personal information. This information could be private information or sensitive, opening the possibility for fraud. With the information obtained by e-business, a company must develop a strong trust with consumers by assuring quality and protection.
According to The Federal Trade Commission (FTC), the self-regulation in the United States is failing to provide adequate protection for consumers. Legislation sought by the FTC would be based on four core elements: notice, choice, access and security.
· Clear notice to consumers of what information is collected and use.
· Choice as to how this information will be used for purposes beyond which it was originally collected
· Accessing of the collected information including a reasonable opportunity to correct inaccuracies and delete information.
· Reasonable security precautions to safeguard information collected about consumers.
Concerns over privacy in the US have been further deteriorated by the attempted sale of consumer information by dot-coms. With trust being the core foundation, lack of privacy is threatening the future of e-business. On one hand, e-commerce facilitates the gathering of information; however, many consumers consider such usage of collected information to be an invasion of their privacy.
There is neither a simple solution nor a single view on whether violation of privacy is ethical or not.
Information Systems Control Journal, Volume 3, 2001
By Jonathan D. Andrews, CA, CISA, FCA
Is the Telephone Company violating your privacy?
1. Yes. I think the increased surveillance power and capability of the US government present an ethical dilemma. When the government has not been authorized by you, the law abiding citizen of the United States, to “listen in” or track your movements I feel it is an invasion of privacy. This is also a violation of the Fourth Amendment.
2. It is the responsibility of the government to protect its people. The Fourth Amendment also allows the government to track ones that may hurt us or strike on Americas’ soil. If the information received from the telecommunication could help prevent, counter attack or prepare us of some impending situation then I think it would be ethical. This is for national security.
4. The White House and the Senate Judiciary committee reached the agreement of approving the NSA in regards to the wire tapping program. It was the best compromise on a delicate issue of national security vs. privacy rights.
Yes. While the solution might not be perfect, it at least satisfies both parties as well as it protects the telecommunication companies
2. It is the responsibility of the government to protect its people. The Fourth Amendment also allows the government to track ones that may hurt us or strike on Americas’ soil. If the information received from the telecommunication could help prevent, counter attack or prepare us of some impending situation then I think it would be ethical. This is for national security.
4. The White House and the Senate Judiciary committee reached the agreement of approving the NSA in regards to the wire tapping program. It was the best compromise on a delicate issue of national security vs. privacy rights.
Yes. While the solution might not be perfect, it at least satisfies both parties as well as it protects the telecommunication companies
Saturday, April 12, 2008
Blockbuster vs. Netflix: Which will win out?
1. Blockbuster’s business model is based on rental and sales of DVD’s. Since its operation onset in 1985, Blockbuster has enjoyed a very successful monopoly, opening 9100 stores in 25 countries within 20 years. This established Blockbuster as the market leader. But with the emergence of a new competitor - Netflix in 1998, Blockbusters business was adversely affected.
2. Netflix had challenged the business model of Blockbuster by launching online video rentals. The whole process of accessing video selections, delivery and returns were consolidated into an easy to understand procedure. Anyone can order anytime, anywhere without retail store prices and just mail back in a postage paid envelope.
As such, Netflix forced Blockbuster to reassess its place in the video rental business, creating the list of problems below:
a)This increasing rivalry from Netflix forced Blockbuster to initiate its own online rental market, incurring additional expenses on top of the retail stores.
b)It forced Blockbuster to reduce their subscriber price to $14.99, as compared to NetFlixs’ $19.99.
c)Blockbuster acquired only 1 million subscribers, but Netflix had 3 million by the end of year. This showed a continued downward trend of customers.
d)Blockbuster has to restructure the business model, implementing the new campaign of “No more late fees”, which failed to offset its cost.
4. Since starting the trend of online rental, in 1998, Netflix has attracted more customers and earned higher revenue than Blockbuster. Although Netflix has only 35 distribution centers around the world as compared to 30 such facilities from Blockbuster it generated almost 2 million more customers. Within 5 years of being in business Netflix had gained 2 to 7 percent in market shares, projecting the revenue to reach 1 billion in 2005 and $3 billion by 2009.
With the increasing new technology like cable subscription of movies (VOD), online rentals by Amazon.com and Apple entering into such business model pushes Blockbuster and Netflix to the edge.
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