Thursday, February 26, 2015

E-Business as a Tool for Competition


With the advent of technology, e-business has become a crucial part of an organization’s ability to successfully gain and maintain its competitive advantage in a fast-changing world of information systems. By virtue of the Internet and various other networks, companies are able to use information technologies to support e-commerce, enterprise communications, and collaboration. One of the most implemented systems within an organization are cross-functional enterprise systems, which allow companies to utilize IT to share information and improve on efficiency and effectiveness, which are of utmost importance to their customers and help bring forth a major competitive advantage. This process typically involved installing more cross-functional client/server applications, such as PeopleSoft and Oracle, in an effort to support integrated units of business processes involved in the general operations of a business. One example of the implementation of this system is PeopleSoft’s Human Capital Management (HCM) 9.2 model, which delivers a set of human resources functionality, enabling companies to proactively manage HR operations, increase productivity, accelerate business performance, and lower ownership costs (Snider, 2013). These types of systems are beneficial for organizations, and the implementation of which provides them a competitive edge, since they help companies improve the vital business processes all across the enterprise, thus leading to improved work effectiveness, time saving, greater efficiency of organizational costs, and significant cost-saving.

Online transaction processing systems play a pivotal role in areas of web-enabled businesses, where many firms use the Internet to tie them electronically to their customers or suppliers for online transaction processing. Through these real-time systems, companies may gain a competitive advantage by providing superior customer service to customers, as well as other trading partners. This is a major tool for businesses in general, as customers essentially render a business a success or a failure in the long run. One major example of this type of a system is the implementation of Computerized Provider Order Entry (CPOE) to support decision-making processes. The safe use of medications is an important area of concern for health care providers. In order to reduce the occurrence of medication-related errors, the Institute of Medicine recommends implementing health information technologies in conjunction with other process improvements (AHRQ, 2014). In essence, CPOE is an application that allows providers to enter medical records into a computer system that is located within inpatient or ambulatory setting. This method replaces more traditional methods of placing medication orders, such as written paper prescriptions, verbal (in person or via telephone), and fax. In turn, this process has an impact on safety, by ensuring that orders are legible and accurate.

In addition, enterprise collaboration systems (ECS) are cross-functional information systems that enhance communication, coordination, as well as collaboration among members of business teams and group works. In essence, information technologies provide us tools to better communicate in a business setting, in turn allowing an organization to effectively and successfully compete in its niche market. For instance, electronic communication tools, such as e-mail, voice mail, and faxing, allow various members of a group to effectively communicate to reach a common goal, regardless of their physical location. This speaks volumes about organizations in the modern age, and their ability to carry out common tasks from various locations. These collaborative tools, in essence, bring together people working together, sharing information, to achieve a common objective. By understanding how various processes in an organization may change, companies will understand how collaboration initiates might impact or even reduce operating costs (McDonald, 2011). For example, Microsoft’s SharePoint tool promotes new ways of working together and enables employees to easily collaborate with their team members on specific projects, find organization resources, and manage content and share ideas. According to a Forrester Research Report, companies may benefit from a return on investment of 301% and a payback period of 7.4 months when investing in this particular software (Exigy, 2015). Additionally, these types of systems allow for better branding of a company’s web presence: What used to be an arduous process, now enables any web designer with proficiency in HTML, CSS, and JavaScript to brand a SharePoint site and create a public-facing or internal site that is presentable (Hassell, 2013).

In conclusion, e-businesses have brought forth numerous benefits to the daily operations of organizations. With the emergence of the Internet, companies are able to gain a competitive edge by implementing various e-business systems to help them market themselves easily and more effectively, gain a larger customer base, study their competitors, and find avenues to capitalize on their gains and minimize their costs.

Snider, E. (2013, May 1). PeopleSoft HCM 9.2 strengthens healthcare user's confidence. Retrieved February 18, 2015, from http://searchfinancialapplications.techtarget.com/feature/PeopleSoft-HCM-92-strengthens-healthcare-users-confidence

Inpatient Computerized Provider Order Entry (CPOE). (2014, March 1). Retrieved February 18, 2015, from http://healthit.ahrq.gov/ahrq-funded-projects/emerging-lessons/computerized-provider-order-entry-inpatient/inpatient-computerized-provider-order-entry-cpoe

McDonald, D. (2011, January 7). Defining and Measuring Enterprise Collaboration - Managing Technology - Dennis D. McDonald's Web Site. Retrieved February 18, 2015, from http://www.ddmcd.com/managing-technology/defining-and-measuring-enterprise-collaboration.html

Enterprise Collaboration. (n.d.). Retrieved February 20, 2015, from http://www.exigy.com/Solutions/Enterprise-Collaboration

Hassell, J. (2013, February 11). 7 Things About SharePoint 2013 All IT Pros Should Know. Retrieved February 27, 2015, from http://www.cio.com/article/2388447/collaboration/7-things-about-sharepoint-2013-all-it-pros-should-know.html

Saturday, February 14, 2015

Business Intelligence Systems

A business intelligence system is designed to analyze business data and turn it into information that can be used to benefit the business. There are several different types of activities that are considered business intelligence, including data mining, online analytical processing, and reporting. The raw data is analyzed and can then be used to make decisions, cut costs, and make predictions for the future of the business. The systems should not only be used to present the data, but should be able to determine what factors are influencing the results. (Mulcahy, 2007)

This type of system may be expensive to implement, with prices ranging from thousands to millions of dollars. The initial costs usually include the software licenses and the first year of maintenance. (King, 2009) There are also several factors to consider when making the decision to purchase this type of system. The company should first look at their needs and determine what type of information should be analyzed. Also, when implementing a business intelligence system, the company should ensure that the data collected is complete and accurate. The system should be able to produce different types of reporting to meet the changing needs of the business. Due to the high cost of this type of software, the company should be clear on the data needed and the objectives for the future of the company. The return on investment should be clearly defined to ensure that the company is benefiting from the system. (Desmarais, 2011)

There are several potential problems associated with business intelligence systems. User resistance may be an issue; therefore, all employees, ranging from the highest executives down to the sales team, should be trained properly and encouraged to ‘buy-in’ to the idea of using the new system. Another issue is inaccurate or incomplete data. If the data is not correct, decisions made using the system will be based on incorrect information. Business intelligence systems will also be ineffective if a company doesn’t understand their processes. They should be very knowledgeable about how each aspect of the business operates so that they can utilize the system as an effective tool for improving these processes. (Mulcahy, 2007)

Cultural differences may also be a factor when implementing business intelligence systems. Data collection methods, ideas regarding timeliness, and accuracy may all vary across different cultures. Ethical standards for gathering information may be different. In addition, the different technologies and language barriers may also be a factor when operating in different countries. (Park, Fables, Parker & Nitse, 2010)

There are numerous benefits to business intelligence systems. These systems can be used to identify new business opportunities and cost-saving changes in their processes. For example, Welch’s used software to analyze their transportation expenses. By using the software, they were able to consolidate their shipments into full loads, which decreased their shipping costs drastically. Another company used a business intelligence system to strategically market their product. In response to decreased bookings, Carnival Cruise Lines used their customer information to determine which of them would be most likely to book a cruise during a recession. They then focused their marketing efforts on this segment of their past customers. (King, 2009)

The systems also produce informative reports that help companies know how to optimize prices due to fluctuating product demands. The pharmaceutical manufacturer, Wyeth, used information from their system to determine that the demand would increase when they launched the arthritis drug, Enbrel®, to the European market. They were then able to increase production to keep up with the projected increase in demand. (King, 2009)

In summary, while business intelligence systems have shown to have numerous benefits for a company, a great deal of thought and research should go into the decision to purchase a system and what type of system to purchase. The company should be sure that the software meets their needs and is compatible with their data collection ability.

References:

Desmarais, C. (2011, September 7). Can Small Business Benefit from Business Intelligence Software? Inc. Retrieved from www.inc.com

King, R. (2009, March 2). Business Intelligence Software’s Time is Now. Bloomberg Business. Retrieved from www.bloomberg.com

Mulcahy, R. (2007, March 6). Business Intelligence Definition and Solutions. CIO. Retrieved from http://www.cio.com/article/2439504/business-intelligence/business-intelligence-definition-and-solutions.html


Park, J., Fables, W., Parker, K. & Nitse, P. (2010). The Role of Culture in Business Intelligence. The International Journal of Business Intelligence Research,  1.3, 1-14, http://www.irma-international.org/viewtitle/45723/