Chapter 15

First of all, Alhamdullilah because we are able to cover all chapters.

Thanks a lots to Madam Noor Azzura who is our lecturer in this subject 

(MGT300). And of course to my classmate. Thank you kat korang ye sebab 

selalu Support and tolong sis. peace no war haha. 

Okay, so we proceed to the last chapter.

What is outsourcing ??

Insourcing (in-house-development)

a common approach using the professional expertise within an organization 

to develop and maintain the organization's information technology systems 

Outsourcing

an arrangement by which one organization provides a service or services 

for another organization that chooses not to perform them in-house

Onshore outsourcing 

engaging another company within the same country for services

Nearshore outsourcing

contracting an outsourcing arrangement with a company in a nearby country

Offshore outsourcing

using organizations from developing countries to write code and 

develop systems

Factors driving outsourcing growth include :

ü   Core competencies 

Many companies have recently begun to consider outsourcing as a means 

to fuel revenue growth rather than just a cost-cutting measure.

ü   Financial savings 

It is typically cheaper to hire workers in China and India than similar 

workers in the United States.

ü   Rapid growth 

an organization is able to acquire best-practices process expertise. 

This facilitates the design, building, training, and deployment of 

business processes or functions.

ü   Industry changes 

High levels of reorganization across industries have increased demand 

for outsourcing to better focus on core competencies.

ü   The Internet 

The pervasive nature of the Internet as an effective sales channel has 

allowed clients to become more comfortable with outsourcing.

ü   Globalization 

As markets open worldwide, competition heats up. Companies may 

engage outsourcing service providers to deliver international services

Most organizations outsource their noncore 

business function, such as payroll and It :

Outsourcing benefits include :

Ø  Reduced operating expenses

Ø  Increased quality and efficiency

Ø  Outsourcing non-core processes

Ø  Economies of scale, expertise, and best practices

Ø  Reduced headcount and associated overhead expense

Ø  Reduced time to market for products or services

Ø  Avoid costly outlay of capital funds

Ø  Access to advanced technologies

Ø  Reduced exposure to risk

Ø  Increased flexibility 

OUTSORCING CHALLENGE :

v Contract Length

v Competitive edge 

v Scope definition

v Confidentially 

Chapter 13 & 14

Organizations create and use teams, partnerships,

and alliances to :

–      Undertake new initiatives

–      Address both minor and major problems

–      Capitalize on significant opportunities

 Collaboration system 

supports the work of teams by facilitating the sharing and flow 

of information 

Organizations form alliances and partnerships 

with other organizations based on 

their core competency :

Core competency

an organization’s key strength, a business function that it does better 

than any of its competitors

Core competency strategy

organization chooses to focus specifically on its core competency and forms 

partnerships with other organizations to handle 

nonstrategic business processes

Information technology can make a business 

partnership easier to establish and manage

 Information partnership  

occurs when two or more organizations cooperate by integrating their IT systems,

 thereby providing customers with the best of what each can offer

 2 categories of collaboration : 

Unstructured collaboration  (information collaboration) 

includes document exchange, shared whiteboards, discussion forums, and e-mail

Structured collaboration  (process collaboration) 

involves shared participation in business processes such as workflow in which 

knowledge is hardcoded as rules

 Collaborative business functions 

COLLABORATION SYSTEM INCLUDE :

1.       Knowledge management system 

Knowledge management (KM)

involves capturing, classifying, evaluating, retrieving, and sharing information 

assets in a way that provides context for effective decisions and actions

Knowledge management system

supports the capturing and use of an organization’s “know-how”

Intellectual and knowledge-based assets fall into two categories

Explicit knowledge

consists of anything that can be documented, archived, and codified, 

often with the help of IT

Tacit knowledge

knowledge contained in people’s heads

The following are two best practices for transferring or recreating tacit knowledge

Shadowing

less experienced staff observe more experienced staff to learn how their more experienced 

counterparts approach their work

Joint problem solving

a novice and expert work together on a project

Knowledge management systems include :

v  Expertise tools

v  E-learning applications

v  Search and data mining tools

v  Knowledge repositories (databases)

v  Discussion and chat technologies


2.        Content management system (CMS) 
provides tools to manage the creation, storage, editing, and 

publication of information 

CMS marketplace includes :

v  Document management system (DMS)
v  Web content management system (WCM)
v Digital asset management system (DAM)

Content management system vendor overview

Wikis

Web-based tools that make it easy for users to add, remove, 

and change online content

Business wikis

collaborative Web pages that allow users to edit documents, share ideas, 

or monitor the status of a project

3.     Workflow management system 

 Work activities can be performed in series or in parallel that involves people

 and automated computer systems

v Workflow 

defines all the steps or business rules, from beginning to end, required 

for a business process.

v   Workflow management system 

facilitates the automation and management of business processes and controls the 

movement of work through the business process.

v   Messaging-based workflow system 

sends work assignments through an e-mail system.

v   Database-based workflow system

stores documents in a central location and automatically asks the team members to access 

the document when it is their turn to edit the document.

4.  Groupware 

Groupware technologies

Groupware SYSTEM

software that supports team interaction and dynamics including 

calendaring, scheduling, and videoconferencing

Ø  Video conference 

a set of interactive telecommunication technologies that allow two or more locations

 to interact via two-way video and audio transmissions simultaneously.

Ø  Web conferencing 

blends audio, video, and document-sharing technologies to create virtual 

meeting rooms where people “gather” at a password-protected Web site.

INSTANT MESSAGING 

E-mail is the dominant form of collaboration application, but 

real-time collaboration tools like instant messaging 

are creating a new communication dynamic

 Instant messaging 

type of communications service that enables someone to create a kind of 

private chat room with another individual to communicate in 

real-time over the Internet

The Internet is a powerful channel that presents 

new opportunities for an organization to :

§  Touch customers

§  Enrich products and services with information

§  Reduce costs

 How do e-commerce and e-business differ? 

E-commerce

the buying and selling of goods and services over the Internet 

(online transactions)

E-business

 the conducting of business on the Internet including, not only buying and selling, 

but also serving customers and collaborating with business partners 

(online transactions, serving customers and collaborating with business partner)

 Industries Using E-Business 

 E-business Model 

v  an approach to conducting electronic business on 

the Internet

v  Example for (B 2 B), (B 2 C), (’C 2 B) & (C 2 C) :

 E-business benefits : 

v  Highly accessible

v  Increased customer loyalty

v  Improved information content

v  Increased convenience

v  Increased global reach

v  Decreased cost

 E-business Challenges : 

v  Providing security

v  Protecting consumers

v  Leveraging existing systems

v  Adhering to taxation rules

v  Increased liability

 Numerous advantages and limitations in e business revenue models : 

v  License fees

v  Transaction fees

v  Subscription fees

v  Value-added fees

v  Advertising fees

 MASHUPS 

A Web site or Web application that uses content from more than 

one source to create a completely new services

 Web Mash-up 

Application programming interface (API) 

A set of routines, protocols, and tools for building software 

applications

Mash up editor

WSYIWYGs (What You See Is What You Get) for mash ups 

 Example of Wed mashup