business case study and zhejian.com final · pdf file‐type of e commerce, business model of...
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Lecture 20TIM 50 Autumn 2012Tuesday December 4, 2012
Business Case StudyAmazone.com and ZheJian.com
Final Exam Review
Announcement
Final ExamDecember 10, Monday 0800 ‐1000AM
Format is same as MidtermCovering Up to Midterm 25‐ %
After Midterm 75+ %
Case Study;
Amazone.com
CEO of Amazone.com
Strengths
• Reported revenue in 2006 was 13.15 billion• No brick and mortar location• Wide product range• Strong brand equity• Service non‐internet users with catalogs • Strong partnerships
Weaknesses
• No brick and mortar stores • Difficult to get direct customer service through website
• Limited advertising• No 24 hour customer service• No customer interaction
Opportunities
• Advertising• More distribution • Open a brick and mortar store• Larger international presence
Threats
• Possible identity theft• Low barriers to entry = increased competition
• Economic conditions • Consumer to Consumer commerce• Oil costs increase shipping/transportation costs
Zhejiang Corporation of China Telecom
Company Background
A leading provider of telecommunications
services to the southeastern coastal
province of Zhejiang, China
-The parent company, China Telecom Group,
was established in 2002,
- China Telecom Group, operating primarily in southern
China
- China Netcom, operating in northern China.
By the end of 2006,
‐Revenues of RMB (Ren Min Bi) over 16 billion(approximately US$2.3 billion),
- 21 million telephone subscribers - 4 million broadband subscribers.
Since October 1, 2008,
‐ A full‐service operator after acquiring China Unicom’sCDMA networks , Provide
- Comprehensive information services- Mobile communications services to its CDMA subscribers.
Foreign operators were permitted to enter the ChineseMarket place in 2005.
The goal of Zhejiang corporation was a more competitive telecommunications environmentprior to 2005.
To deliver better service to customers,
‐ Including slowing churn and lowering the cost of sales byselling more services to customers.
‐ To create a more efficient and cost‐effective business, ‐ Increasing profitability and revenue.
Business Challenge
A strategy for growth in the shorter and its longer‐term plans.
‐ To exchange its city based legacy organizational structureonthe province as a whole.
‐ Change Higher operating costs for all its business supportsystems
‐ The development of top‐down provincial marketing campaigns,‐ Accurate operational information on which to base its
own decision‐making.
‐ Program management, expertise in implementingthe software packages chosen,
‐ Global telecoms experience and a seasonedconsulting team
‐IT can bring to its goal customer relationshipmanagement and billing,
‐ An integrated suite of leading‐edge the essential BSS, OSS and service delivery capabilities
‐lower costs, speed implementation and advance towardhigh performance
‐Enterprise Data Warehouse(EDW)
‐ A blue print for replacing all city‐level legacy customer care
‐ legacy billing systems modified centralized thesesystems at a provincial level.
Solutions
‐ Customer care and billing solutions leverage Oracle’s SiebelCRM software for the customer relationship managementfunction
‐ Comverse’s Kenan for billing.‐ BEA’s Web Logic Integration provides the middleware
component
‐The role of solution architect as well as systems integrator,developing business processes
‐ Tested and verified system capabilities.
‐ A custom front end for the payments system was also created
Enterprise Data Warehouse(EDW)
‐ 2,400 table, 33,000 attributes in 31 provincial level, ‐ 20,000 tables in 11city level total 46 million people‐ 80 Terabyte
Capture and analysesVisibility control over city branchCustomer analysesOptimal decision
‐Reduction in operating costs and an increase inefficiency
‐Increasing the average revenue per user (ARPU).
‐Sales of bundled services up by 25 percent per month during the pilot phase.
‐ At the present level of 26 million subscribers , complete bill cycle within a short turnaround time
‐ Equivalent to having a single system with 100 millionaccounts spanning 10 bill cycles.
‐Reduce operational expenditures through back‐office consolidation and
‐ Increase revenues with enhanced revenue assurance capabilities
Transaction Processing
‐ A single instance processes generates 175 invoices a second (or 10,500 a minute) during bill runs
‐ Handle 10 million accounts enhanced with features, such as marketing promotions and discounts.
‐ 10 million bills generated across15 databases covering five cities, including the provincial capital Hangzhou,within 24 hours.
‐ 20 million business and residential accounts,consisting of 26 million subscribers, covering five cities
– All in a single system.
Analytics
Phone service market become saturated‐ subscriptions declined‐ competition grew stiffer
Strategy change from product to Customer focus‐ Analyze usage pattern of 24 mil subscriber‐ ARPU, churn rate‐ eHome, ASDL sale promotion
OLAP , Multi dimensional database(MDB)
Beyond Phone ServiceCompetitions with Fixed Line phone, ADSL and PHS
‐ China Netcom, Unicom, and china mobile
Changing landscape‐ Restructuring telecommunication industry
Marketing at Zhejiang Province‐ 25 people marketing group‐ product development, Rate plan, Service, management,Business support, Marketing budget
Electronic Eye, IP network service, Global eye, digital e‐House
Final Exam ReviewThe final exam will cover all the material in the course with an emphasis on topicscovered in the last half of the class. Please review all topics on the midterm review guidein addition to the topics below.
In the Mid Term Exam
1, Competitive Advantage‐ Competitive force model‐ Internet impacts on competitiveness‐ Business Process management
2. E‐ Commerse‐ E‐Commerse differences‐ Type of E Commerce, Business Model of E‐Commerce, E‐commerce Revenue Model
3. Global Business and Collaborations‐ Basic Business Functions‐Managing a Business and firm Hierarchy‐ The Role of Information Systems in a Business‐ Enterprise System, ERP‐Business benefits of Collaboration and Teamwork
Messerschmitt Chapter 4‐Information, data, data representation‐bit, byte, word‐binary system, base‐Data regeneration‐Networked computing, building block‐Computer system architecture‐CPU, ALU, Data Bus‐Subsystem, component, hierarchy‐OS, Operating system, ‐Midleware‐Network, peer to peer, client server system‐File system, data base, database management system‐Intranet, extranet, internet
Messerschmitt Chapter 5‐Client Server Architecture‐ Two, three tier system, multi‐Tier‐Primary functions of client and server‐Three tier client server architecture‐Reasons for separating application and data tier‐Shared data, application logic and presentation‐Thin , ultra thin clients
Sample Questions‐Which tier is responsible for presentation of applications?‐ In which tier is the logic of an application housed?
Messerschmitt Ch. 6 – Modularity and Layering‐Modularity – What does it mean? Why do we design systems this way?‐Granularity‐Hierarchy‐Interfaces – action invocation: parameters, and returns‐The layering principles‐>Layers of computing infrastructure‐Applications, components, middleware, operating system, networks‐>Data and information in layers‐Abstraction & Encapsulation‐Data Types
Sample Questions‐Why is it best for modules to communicate only through well‐definedinterfaces?‐ Should data storage infrastructure be sensitive to the applications that createthe data?
Messerschmitt Ch. 7 ‐ Computer and Comm. Industries‐Infrastructure and applications‐Decomposition and Assembly‐Components and Custom development‐Interoperability‐Scalability ‐Outsourcing, Off shore Outsourcing‐System Integration‐Products and Services‐Stovepipe (turn‐key) and integrated infrastructure‐Vertical integration and diversification‐Standardization
‐why do we need standards?‐why do companies participate?‐reference models and interfaces‐de facto / de jure standards‐Standards Bodies‐Open Standards
Sample questions:‐ If a company acquires its suppliers, is that a move toward diversification orvertical integration?‐What are the advantages of selling software as a service instead of as aproduct?‐What are some examples of infrastructure products?
Messerschmitt Ch. 9 – Applications and the Organization‐ Buy vs. Make vs. Outsource‐ Application Lifecycle Model of Development
Sample questions:‐What are the advantages of buying a enterprise application instead ofdeveloping it yourself?‐ Importance of Lifecycle Model of Development?
Laudon and Laudon Chapter 5‐Database‐Entity‐Attributes‐Fields‐Key Field‐Primary Key‐Relational Databases‐One‐to‐one, one‐to‐many, and many‐to‐many relationships‐Normalization‐DBMS‐SQL‐Select, join, project
‐Data dictionary‐OODBMS‐Data Warehouses and Marts‐Business intelligence‐Online Analytical Processing‐Data Mining
Sample Questions:‐T or F: Every record in a file should contain at least one key field.‐T or F: A data warehouse may include information from legacy systems.‐T or F: In normalization, complex groupings of data are streamlined to eliminate awkward many‐to‐many relationships.
Laudon & Laudon Chapter 6 + Networking ‐Basic Concepts of:‐Hosts/Routers/Links‐What is a packet? Packet Switching?‐Difference between IP / MAC address?‐Main idea of what a routing table does‐Hierarchical addressing – How is it analogous to post office routing?‐Error Detection – what is a parity bit? Why might it not work?‐Congestion in network‐Flow Control‐ The Domain Name System (DNS, WWW, HTTP)
‐Layering of architecture‐Physical Layer‐Link Layer‐Ethernet, MAC addresses, Hubs/Switches‐Network Layer‐Routing Table, Packet Forwarding, IP Addresses‐Transport Protocols – TCP/The User Datagram Protocol (UDP)‐ Statistical Multiplexing‐Typical Network Topologies (home, Internet service provider (ISP), small business, large e‐biz)‐Web Caching
Sample Questions:Describe how an IP packet is sent over an Ethernet to a gateway router.What responsibilities does the link layer have?Does the IP address of your laptop remain the same wherever you go?
Cloud Computing‐SaaS, Paas, Iaas‐Cloud Computing‐Utility Computing‐Public Cloud vs. Private Cloud‐Map Reduce and Hadoop‐EC2, App Engine, EC2‐Advantages for users‐“Pay ad you go”‐Scalability‐ better economies of scale‐challenges‐Lock‐in‐
Confidentiality + auditability‐Availability‐ Data transfer bottlenecks‐Reasons to become a cloud provider
Sample Questions:‐Why are software infrastructures for distributed systems important forcloud computing?‐Is there an economy of scale advantage for very large data centers versusmedium sized data centers?‐Can application developed for one cloud be easily made to run on adifferent cloud provider’s cloud?
Zhejiang Telecom‐ How was the telecom industry in China in 98 restructured?‐What businesses was Zhejiang telecom in after this restructuring.‐What trend was causing Zhejiang telecom to loose business?‐What major IT investment did they make to support their marketing efforts?‐ How did it help?‐What is ARPU?‐ How was the industry restructured in 2008? What changes in strategy did this necessitate for Zhejiang Telecom?
Amazon Web Services‐What prior investments did amazon make for its other businesses that enabledto launch AWS?‐What differences are there between EC2(Rent Virtual Computer) and Microsoft Azure(PaaS)?‐ How is EC2 priced?