chapter 20 - developing a 21st-century organization

Slide 1

Business TechnologyChapter 20: Developing a 21st Century OrganizationSemester II 2014HUTECH JOINT BBA PROGRAM WITH BRISTOL UNIVERSITY

HUTECH JOINT BBA PROGRAM WITH BRISTOL UNIVERSITY

On the business side, 21st-century organization trends are:Uncertainty in terms of future business scenarios and economic outlooks. Emphasis on strategic analysis for cost reduction and productivity enhancements. Focus on improved business resiliency via the application of enhanced security. In order to survive in the 21st century, organization must recognize the immense power of technology, carry out required organizational changes in the face of it, and learn to operate in an entirely different wayHows about Vietnam? Why now we have to apply technology to our businesses, especially in traditional industries like agriculture?

I. Developing OrganizationsHUTECH JOINT BBA PROGRAM WITH BRISTOL UNIVERSITY

New trend: focus on improved business management of IT in order to extract the most value from existing resources and create alignment between business and IT priorities.The four primary information technology areas where organizations are focusing are:IT infrastructures Security E-business Integration


I. Developing Organizations

Examples of How Technology Is Changing Business


1.1 Increased Focus On It InfrastructureA significant trend for the 21st century is to increase the focus on IT infrastructure.Today, organizations today are looking to Internet-based cross-functional systems such as CRM, SCM, and ERP to help drive their business success. Creating an effective organization requires a 360-degree view of all operations.Ownership of the IT infrastructure now becomes the responsibility of the entire organization and not just the individual users or functional department.This is primarily because the IT infrastructure has a dramatic influence on the strategic capabilities of an organization

I. Developing Organizations


I. Developing OrganizationsThe Position of the Infrastructure within the Organization


1.2 Increased Focus On SecuritySecurity is a hot topicIncreasingly opening up business networks and applications to customers, partners, and suppliers using a diverse set of computing devices and network => a lot of potential threatsBusinesses can benefit from deploying the latest advances in security technologies.These benefits include fewer disruptions to organizational systems, increased productivity of employees, and greater advances in administration, authorization, and authentication techniques. For businesses it is important to have the appropriate levels of authentication, access control, and encryption in place, which help to ensure (1) that only authorized individuals can gain access to the network, (2) that they have access to only those applications for which they are entitled, and (3) that they cannot understand or alter information while in transit.


1.3 Increased Focus On SecuritySecurity breaches is not only inconvenience, but can also cost millions of dollars in lost revenues or lost market capitalization. It can even force a business out of existence within hours or days of an attack. It is now more important than ever for an organization to have well-rehearsed and frequently updated processes and procedures to insure against a variety of adverse scenariosInternet email and denial-of-service attacks from worms and viruses, loss of communications, loss of documents, password and information theft, fire, flood, physical attacks on property, and even terrorist attacks.


1.4 Increased Focus On eBusinessMobility and wireless are the new focus in ebusiness, and some upcoming trends are mobile commerce, telematics, electronic tagging, and RFID.


1.4 Increased Focus On eBusinessMobile commerce (m-commerce) Telematics: efficiently conveying information over vast networks to improve business operations. The most notable example of telematics may be the Internet itself. Electronic tagging a technique for identifying and tracking assets and individuals via technologies such as radio frequency identification and smart cards. Radio frequency identification (RFID): RFID can enable greater efficiencies in business processes such as inventory, logistics, distribution, and asset management.On the mobile commerce side, RFID can enable new forms of ebusiness through mobile phones and smart cards. This can increase loyalty by streamlining purchases for the consumer.


1.4 Increased Focus On eBusinessMobile employees will soon have the ability to leverage technology just as if they were in the office. Improvements in devices, applications, networks, and standards over the past few years have made this far more practical than it was when introduced.Mobile technology will help extend an organization out to its edges in areas such as sales automation and enterprise operations. Benefits can include improved information accuracy, reduced costs, increased productivity, increased revenues, and improved customer service.Mobile business enables an organization to combine of business processes, e business, and wireless communications


1.5 Increased Focus On IntegrationIT has penetrated the heart of organizations and will stay there in the future.The integration of business and technology has allowed organizations to increase their share of the global economy, transform the way they conduct business, and become more efficient and effectiveAround the world, free-market competition has flourished and a new globally interdependent financial system has emerged. Reflecting these changes, core business relationships and models are dramatically changing, including shifts from: Product-centricity to customer-centricity. Mass production to mass customization. The value in material things to the value of knowledge and intelligence.


1.5 Increased Focus On IntegrationA new series of business success factors and challenges has emerged that is helping to determine marketplace winners and losers: Organization agility, often supported by a plug and play IT infrastructure (with a flexible and adaptable applications architecture). A focus on core competencies and processes. A redefinition of the value chain. Instantaneous business response. The ability to scale resources and infrastructure across geographic boundaries.


I. Developing OrganizationsThe Integration of Business and TechnologyFigure 20.3


1.5 Increased Focus On IntegrationThe new environment requires organizations to focus externally on their business processes and integration architectures. The virtually integrated business model will cause a sharp increase in the number of business partners and the closeness of integration between them. As business strategies continue to evolve, the distinction between the business and IT will virtually disappear. Why?

I. Developing OrganizationsWal-Mart got into e-commerce more than a decade ago, but its online sales came in at $7.7 billion last year, compared with more than $61 billion for AmazonIn short, Walmart still badly lags Amazon in eCommerce and they are playing catch up.Wal-Mart plans to combine its stores, existing distribution centers, and new facilities into what it calls its next generation fulfillment networkAt the bottom of the article, is really the heart of a retail strategy known as Omni-channel Commerce, being implemented by not only Walmart but by many leading brick and mortar retailers.

Case Study: Amazon Vs. Walmart

HUTECH JOINT BBA PROGRAM WITH BRISTOL UNIVERSITYOmni-channel is an initiative by brick and mortar retailers to better integrate their stores and e-commerce channels. So a retailer might support buy online, pick-up at store; or order online, deliver to home from a store; several other fulfillment paths are also possible.Instead of fulfilling Web orders from warehouses hundreds of miles from shoppers homes, companies including Wal-Mart, Best Buy and Gap are routing orders to stores nearby.The trend, known as Ship from Store, saves money through shorter delivery routes, speeds deliveries, avoids costly markdowns and recoups sales that have been lost to Amazon.


HUTECH JOINT BBA PROGRAM WITH BRISTOL UNIVERSITYThis ship from store strategy wont be easy. In order to intelligently allocate inventory from stores, retailers need to implement a distributed order management (DOM) => costlySecondly, retailers need to be able to execute the perfect order from the store => perfectly done warehouse management systems (WMS), it means their inventory must be 100% tracked, which is impossibleThirdly, retailers need to take the culture of the perfect order as practiced in distribution centers, and graft it into the store. This culture change is likely to be far more difficult than implementing new technologies


HUTECH JOINT BBA PROGRAM WITH BRISTOL UNIVERSITYWhy is it critical that the government develop its IT infrastructure using a 21st-century strategy? How would the government define security when developing its 21st-century strategy? How would the government define its e-business infrastructure when developing its 21stcentury strategy? Why is it important that the government control all integrations into its systems?

Questions


chapter 20 - developing a 21st-century organization

Documents

business networks

business success

business technologychapter

bristol university new

improved business resiliency

improved business management

increased focus

century organization