Chapter 12 : Integrating The Organization From End To End (Enterprise Resource Planning)

Assalamualaikum,

Case : Shell Canada Fuels Productivity with ERP

Shell Canada

Shell Canada is one the nation's largest integrated petroleum companies and is a leading manufacturer, distributor and marketer of refined petroleum products.

1. How did ERP helps improve business operations at Shell?
    - ERP helps improve business operations at Shell by integating and managing its
      daily operations that span from wells and mines, to processing plants, to oil
      trucks, and gas pumps. For example, the ERP system has helped the company
      immensely in terms of reducing and streamlining the highly manual process of
      third-party contractors submitting repair information and invoices.

2. How could extended ERP components help improve 
    business operations at Shell?
    - ERP solution helps improve business operations at Shell by providing an
      integrated web-based service order, invoicing and payment submission system.
      Formerly, the information was not timely and it was often weeks or even months
      old by the time it made it into the payment processing system. Thus, Shell was
      not collecting sufficient information about what repairs being done, what caused
      the problem and how it had been resolved. However, with the ERP system, the
      contractors can also enter detailed about the work that was performed and
      sometimes even attaching photo and drawings to help describe the work that
      was done.

3. What advice would you give Shell if it decided to choose
    a different ERP software solution?
     - In my own opinion, if Shell decide to choose a different ERP software solution,
       they can be used to handle other operational task.
     - The system can help speed up maintenance and repair operations at the
       company's refineries.
     - They can use ERP system to access these things directly from a centralized
       database.
     - However it depends on the suppliers or contractors that want to search the
       Shell company's website.
     - If the system that they choose can satisfy the user or the contractors, the
       software can be used. Or else, Shell must use the ERP software that they
       already have.
     - In this era, people intend to do choose the easier task and if people already
       knows and familiar with the system before, they will make the task effectively
       and efficiencly. Changes can be made but not too complicated until until they
       find it difficult to perform the task.

4. How can integrating SCM , CRM and ERP helps in 
    improving the business operations at Shell?
    - Application such as supply chain management (SCM), customer relationship
      management (CRM), and enterprise resource planning system (ERP) are the
      backbone of e-business. It's the key to success for many companies. Thus, it
      can helps in improving the business operations at Shell in terms of :
      SCM - sales forecasts, sales strategies and marketing campaigns
      CRM - market demand, resource and capacity constraints and real-time
      scheduling
      ERP - forecasting, planning, purchasing, material management, warehousing,
      inventory and distribution

Shell does not only use the ERP system to helps their business operations but also using the SCM system to integrate sales for Shell company and CRM system to help cater the market demand. With these system, all of employees in the organization have gained fast and easier for them to access the tools and information that they need to carry out for their daily operations.

Chapter 11 : Building A Customer-Centric Organization (Customer Relationship Management)

Assalamualaikum,

1. Describe Customer Relationship Management (CRM) and its role
     in supporting business operations.

Customer Relationship Management (CRM) is a management philosophy according to which a company's goals can be best achieved through identification and satisfaction of the customers stated and unstated needs and wants. One example of a common CRM strategy is the rewards card program offered by many supermarkets. The store gives its customers a free card that gives them access to special deals and discounts when they swipe the card during checkout. But that card also tracks everything the customer buys and allows the store to create an extremely detailed customer profile based on his or her purchasing habits. Armed with that information, the store can then offer its customers targeted coupons and other programs that will motivate its customers to buy more products from that store. 

Its role in supporting business operations are :

1. Accumulating a lot of data about the customer
    - when all the data of customer are being captured, it is then used to facilitate
      customer service transaction by making the information needed to resolve the

      issue or concern readily available in order to deal with the customers.

2. Help for the top management
    - help for the top management in deciding the company's future course of action, 

      whether it involves phasing out one of the products on the shelves or making 

      adjustments to one of the products sold.

3. Invaluable to organization's advertising and marketing planners

    - they will be able to pinpoint which ideas and which don't. CRM system is the 

      main reason where you will be able to release advertisements or plan marketing 

      campaigns more in tune with your target market as well as the target audiences.  

2. Identify the benefits and challenges of CRM 

The benefits of CRM  :

1. Shared information

    - aggregate the data obtained and distributes it among the different department in
      your organizations. CRM systems collect and maintain detailed customer
      information such as purchase histories and customer preferences.

2. Improved customer service
    - improves the customer service experience. Many CRM systems have a detailed
      note-taking and contact system, which allows sales professionals and others to
      record when and why a customer was contacted. Having this information
      prevents you from making repeated telephone calls, sending out repeat
      notices and asking repeat questions, which may only annoy or frustrate
      customers. Improving the customer service experience may lead to repeat
      purchases and more loyal customers.

3. Better marketing

    - gives organization the chance to improve and simplify the marketing system.
      Data in the CRM system also can tell you which customers are profitable
      and which are not. A company uses this information when deploying
      marketing tactics by focusing on the profitable customers and less-so on
      other ones, thereby simplifying marketing strategies and bolstering sales.

Challenges of CRM :

1. Expensive costs that occur when implementing the system
    - it is a huge investment to maintain a customer database. The additional
      expense comes from the money needed for the computer hardware, 
      software, and personnel that is needed to maintain it. These excessive
      costs can lead to a negative vibe within the company and can result in a
      CRM collapse.  

2. An inadequate focus on objectives
    - occurs after the CRM system is implemented. When hard times hit, the
      organization may lose sight of its goals and eventually steer away from the
      clearly laid out objectives. Goals may get interchanged and ultimately lose
      their original importance. 

3. Insufficient resources
    - organizations start lessening their budgets from the current phase in order
       to handle the initial excessive costs. Organizations tend to fail at utilizing

       the necessary resources fro success and that can result in failure. 

4. Inappropriate metrics 

    - organizations constantly fail to use the right metrics. Failure to chose
      the right method of measurement is a main reason of why this system may 

      not work. Different metrics implement different goals. 

Chapter 10 : Extending The Organization (Supply Chain Management)

Assalamualaikum, 

a) List and describe the components of a typical supply chain. 

The five basic supply chain management activities 

First and foremost let me explain the meaning of Supply Chain. Supply Chain is all activities associated with the flow and transformation of goods and services from raw materials to the end user, the customer while Supply Chain Management is synchronization of activities required to achieve maximum competitive benefits. 

PLAN : Refer to the overall strategy of Supply Chain Management (SCM) including 

            the development of SCM metric to monitor. 

SOURCE : Refer to the supplier who will provide goods or services necessary to
                 run for business

MANUFACTURING : Execution of processes needed to produced, test and
                               package product or service

DELIVERY : Refer to the system for receiving orders from customer, developing a 

                   network when warehouses getting the product to the customer and 

                   receiving payment from them.

RETURN : System of processing customer return or supporting customer problem 

                with the product they received.

b) Describe the four changes resulting from advances in IT that are
     driving supply chain.

        1. Visibility

• ability to view all areas up and down the supply chain
• bull whip effect occurs when distorted product demand information passes from one entity to the next through the supply chain
• information technology allows additional visibility in the supply chain

         2. Consumer behavior

• demand planning software generates demand forecast using statistical tools and forecasting techniques
• once an organization understand customer demand its effect on the supply chain. It can begging to estimate the impact that its supply chain will have on its customer and ultimately the organizations performance 

         3. Competition 

• supply chain planning software, uses advanced mathematical algorithm to improve the flow and efficiency of the supply chain while reducing inventory

         4. Speed

• new form of serve, telecommunication enabling companies to perform activities that were once never thought possible
• ability to satisfy continually changing customer requirement efficiency, accurately and quickly

c) Summarize the best practice for implementing successful supply
    chain management system.

        1. Make the sale to supplier

• the hardest part of any SCM system is its complexity because a large part of the system extends beyond the company's wall

         

        2. Wean employees of traditional business practices

• operation people typically deal with phone calls, faxes and orders scrawled on paper and will most likely want to keep it that way. 

         

        3. Ensure the SCM system supports the organizational goals

• it is important to select SCM software that give organizations an advantage in the area most crucial to their business success

         

        4. Deploy in incremental phases and measure and communicate 
            success

• design the deployment of the SCM system in incremental phases

         

        5. Be future oriented

• the supply chain design must anticipate the future state of business

Chapter 9 : Enabling The Organization (Decision Making)

Assalamualaikum, 

Artificial Intelligence (AI) is an area of computer science that emphasizes the creation of intelligence machines  that work and react like humans. Some of the activities computers with artificial intelligence are designed for included speech recognition, learning, planning and problem solving.

There are four categories of Artificial Intelligence :

1. Expert System 

• Expert system is an artificial intelligence program that has expert-level knowledge about a particular domain and knows how to use it knowledge to response properly. Domain refers to the area within which the task is being performed.  For example : Vodafone, one of Europe's leading mobile operators, selected Expert System technology to develop an innovative customer integration management solution for its SMS 190 application.

Expert System 

2. Neural Networks

Neural Networks

• Neural networks is a artificial intelligence technique that mimics the operation of the human brain (nerves and neurons), and comprises of densely interconnected computer processor working simultaneously (in parallel). For example : Citibank uses neural networks to find opportunities in financial markets. By carefully examining historical stock market data with neural network software, Citibank financial managers learn of interesting coincidences or small anomalies.

3. Genetic Algorithms

• Genetic algorithm is a method for searching for the optimum solution to a complex problem, based on the principles of natural selection. It's basically an automated, intelligent approach to trial and error. Given specific formulas, rules or arrangements to be optimized, a genetic algorithm can find a solution. Genetic algorithm can be used in scientific design. For example : Brighterion is the leader in smart analytic offering products for device ID, click stream analysis, credit risk, homeland security intelligence and many others. Their products are used widely and trusted by the largest institutions and governments around the world.

Genetic Algorithm 

4. Intelligence Agents

Intelligent Agents

• Intelligence agent is an agent that acts intelligently, it makes rational decision, considering its circumstances. That is, an AI agent observes its environment and chooses its actions accordingly. Intelligent agents are already pervasive in our lives. They work under the hood to make our lives easier. For example : Firefly used intelligent agent software to take the raw data about likes and dislikes submitted by Firefly users to identify other products and services likely to be of interest to those users, based on the user profile developed from the personal information submitted by the user. 

Artificial Intelligent directed by Steven Spielberg is one of movie that highlighted this projects. I'm highly recommend you to watch this movie because it is beyond awesome. It brings you sadness, resentful, happiness altogether within yourself. 

p/s : Madam Intan, i'm sharing this entry with Nura Adila  , my partner as you've told to do so.

Chapter 8 : Assessing Organizational Information (Data Warehouse)

Assalamualaikum,


1. Describe the role and purpose of data warehouses and data marts in the organization

Data warehouses is a massive database (typically housed on a cluster of servers, or a mini or mainframe computer) serving as a centralized repository of all data generated by all departments and units of a large organization. Advanced data mining software is required to extract meaningful information from a data warehouse. The role of data warehouses are companies commonly use data warehouse to analyze trends over time. They might use it to view day-to-day operations, but it's primary function is often strategic planning based on long-terms data overviews. From such reports, companies make business models, forecasts and other projections. For example, Zalora.com build a warehouse that concentrates on sale. Using this warehouse, they can answer questions like "Who was our best customer for this item last year?" They also might want to know latest design of clothing that customers have been looking for. The purpose, of course, is to bring key sets of data about or used by the organization into one place. 

Bringing together so much data into a data warehouse makes analysis very difficult. To address this problem, organizations use what are called data marts. Data marts is a simple form of data warehouse that is focused on a single subject (or functional area), such as Sales, Finance, or Marketing. Data marts are often built and controlled by a single department within an organization. Given their single-subject focus, data marts usually draw data from only a few sources. The sources could be internal operation systems, a central data warehouse or external data. The purpose of data marts are designed to be made available to specific sets of users. For example, data about manufacturing can be put into a data mart and be made available to the production department. Human resource data can be put into another data mart and be provided to the human resources employees. This approach makes it easier for each group or constituency in the organization to access the data they need.


2. Explain the relationship between business intelligence and a data warehouse

Business Intelligence (BI) is a broad category of applications and technologies for gathering, storing, analyzing and providing access to data to help enterprise users make better business decisions. Its purposes  are acquire theoretical background in lectures and literature studies and obtain practical experience on (industrial) tools in practical exercises. A data warehouse is a repository for a company's historical data. Data warehouses can be physical or virtual, and they can be structurally relational, quasi relational, summarized, cubes, flat files or a combination of styles. Data warehousing is the set of technologies and techniques that you use to build and manage the data warehouse.

The relationship between Business Intelligence and Data Warehousing

The data warehouse gets its data from a variety of sources, including the extraction, transformation and loading (ETL) staging database, the online transaction processing (OLTP) transactional database, or even directly from external data sources. Then, depending on the data needed for a BI project, you can spin off multiple OLAP cubes (also called multidimensional databases) from the data warehouse. For example, a bank might analyze ATM transactions for behavior, time of a day, or queue information, whereas retail operation might perform a basket analysis on point of sales, POS transactions. On top of this underlying architecture, with the ability to tap into any or all of the data sources, is the BI software tools layer. This layer represents numerous BI packages that you can use to analyze data, generate reports and find information for making business decisions. You can even feed information into automated activities and other processes for additional analysis.

Chapter 7 : Storing Organization Information (Database)

Assalamualaikum, 


1. Define the fundamental concepts of the relational database model

Database Icon

A database is a collection of information that is organized so that it can easily be accessed, managed and updated. In one view, databases can be classified according to types of content : bibliographic, full-text, numeric and images. There are three types of model for organizing information in a database including the hierarchical database model, network database model and the most prevalent-the relational database model.

The Relational Database Model

Relational database :

- a collection of data items organized as a set of formally-described tables from which data can be assessed or reassembled in many different ways without having to reorganize the database tables. The best example of situation for this relational database model is at the hospital. Patients in and out endless. This can be tiresome whenever the doctor or staff on duty need to check on the patients. Hence, with the use of this Relational Database model, these patient's data can be accessed at anytime without having difficulties to reorganize the database tables.


2. Evaluate the advantages of the Relational Database Model

• Structural independence : in the Relational model, changes in the structure do not affect the data access
• Design implementation : the Relational model achieves both data independence and structural independence
• Conceptual simplicity : we have seen that both the Hierarchical and Network models are conceptually simple, but Relational model is simpler than both of those two
• Increase flexibility : who access the database will able to get the information based on their users of database
• Reduced information redundancy : to reduce duplication of information
• Increase information security : to maintain information integrity using password, access levels and access control 

3. Define a database management system and its relationship to a website

Database Management System (DBMS) is a program that lets one or more computer users create and access data in a database. It manages user requests and requests from other program so that users and other programs are free from having to understand where the data is physically located on storage media and in a multi-user system, who else may also be accessing the data. 

There is a very close relationship between Database Management System (DBMS) and a website. The website provides the user-interface to send requests to DBMS and to receive processed results from DBMS. The DBMS processes the requests and returns the results to the website and also controls and manages the database. The website programmer should have the complete knowledge about DBMS and databases used in it, and then he can easily develop the website. For instance, Wikipedia is a website that provides all the conveniences of answer to every question asked by its user. As far as we know, this website can be edited by its users. Its user will sent information and website programmer will received it. The DBMS processes the requests and returns the results to the website and also controls and manages the database. 


4. Explain why an organization would want to integrate its database

Integrated databases help organizations get more value from from their diverse data sources by making data management process available as portable services that applications throughout the enterprise can use on demand. Beside that, an organization can reduce information redundancy. Duplication of information frequently happens when too many users access the information and that's why an organization need to integrate its database.

Chapter 5 : Organizational Structures That Support Strategic Initiatives

Assalamualaikum,

Organizational structure refers to a sum of activities that have one single goal that is to achieve all of the organization's aim. Such activities can include task allocation, supervising, coordinating people or leading them. From the workers point of view, the structure of a company, represents how the workers see their company and how they perceive the environment they are working in. The most common form of organizational structure is the hierarchical structure. It is the most popular because it creates a simple and fair chain of responsibilities. Each person in a business has to answer to someone who is in a superior position.

Within Information Technology (IT), there are several IT- related positions such as chief information officer (CIO), chief technology officer (CTO), chief security officer (CSO), chief privacy officer (CPO), and chief knowledge officer (CKO).

Chief Information Officer (CIO) 

Chief Information Technology (CIO) is a job title commonly given to the person in an organization responsible for the information technology and computer system that support organization goals. Their task are :

• proposes the information technology an organization will need to achieve its goals 
• work within a budget to implement the plan
• analyzing and reworking existing business processes
• identifying and developing the capability to use new tools
• reshaping the organization's physical infrastructure and network access
• identifying and exploiting the organization's knowledge resources
• head the organization's efforts to integrate the Internet and the World Wide Web into both its long term strategy and its immediate business plan   

Chief Technology Officer (CTO)

Chief Technology Officer (CTO) is an executive whose primary responsibility is to manage and address technical issues that a company faces, including Research and Development (R&D). Also called Chief Technical Officer. Their task are :

• identify technology trends and evolving social behavior that may support or impede the success of the business
• collaborate with the appropriate departments to assess and recommend technologies that support company organizational needs.
• direct development and execution of an enterprise-wide disaster recovery and business continuity plan
• establish a governance process that meets government, partner and company expectations for customer information privacy 

Chief Security Officer (CSO)

Chief Security Officer (CSO) is the person who is responsible for the security of a company's communication and other business system, especially those now exposed to intrusion from outsiders on the Internet. Their task are :

•  involved in both the business (including people) and technical aspects of security
• include training others for security awareness
• developing secure business and communication practices
• purchasing security products 
• ensuring that security practices are being followed

Chief Privacy Officer (CPO)

Chief Privacy Officer (CPO) is a senior executive who manages policies and procedures on how an individual business handles and protects its client data. Client data encompasses a wide variety of information, such as personal e-mail addresses, account balances, credit scores, purchasing history and social security numbers. Their task are divided into two sections :

General 

• leadership for privacy program
• compliance related to privacy, security and confidentiality
• liaison to regulatory and accrediting bodies
• collaborate on cyber privacy and security policies and procedures 
• monitor systems development and operations for security and privacy compliance
• counsel relating to business partner contracts

Specific

• develop Corporate Privacy Policies & Procedures 
• use and disclosure of Protected Health Information (PHI)
• amendment/correction of PHI 
• access/inspection/copying of PHI

Chief Knowledge Officer (CKO) 

Chief Knowledge Officer (CKO) is a corporate title for a professional within an organization who oversees its knowledge management. Their task are : 

• actively promote the role of knowledge and knowledge management agenda both inside and outside of the organization
• build, develop and support an organizational culture that support the knowledge management effort
• develop, manage and measure knowledge assets
• create and share a vision for the organizational knowledge management effort, and develop strategy and coordinate activities that supports attainment of that vision
• innovating and optimizing the returns on investments in knowledge including people, processes and intellectual capital  

Chapter 4 : Measuring The Success of Strategic Initiatives

Assalamualaikum,

Service Philosophy

A metric is a holder for information, usually a business performance measurement. A metric can be used alone or with other metrics to define the calculation for  a key performance indicator (KPI), which measures performance against a business objective. Examples of metrics are the working duration of a process, the name of the assigned user, a supplier's response time and the cost of the risk assessment step in an insurance process.

What is Effectiveness IT Metrics?
       
        Effectiveness IT metrics measures how IT affects specific aspects of the business world and a part of the business process. The given aspects include conversion rates, customers satisfaction in addition to self-through increases. In short, Effectiveness measures how well a company, or business is reaching its objectives, and constantly questions as to whether the right actions being taken to meet the given objectives. An example in real life would be how well customers are treated at the Apple store when purchasing a new Ipod or computer. Also, the performance of the Effectiveness IT metrics is measured in Brenchmarks, so progress can be assessed. Apple being ranked number one in customer service, after taking a number of different surveys, would be considered to be a Brenchmark. Thousands and thousands of dollar are spent every year by companies, in order to see how well they are doing, not just internally but externally.

What is Effeciency IT Metrics?

         Efficiency IT metrics measure the performance of the IT system itself including throughput, speed and availability. Even though Effectiveness IT metrics is very similar to Efficiency IT metrics, however, there are several differences that place between the two. For example, Efficiency IT metrics refers to the technical aspects such as rate of speed, and availability. In example, the rate of speed is used in reference to transactions. So, when i go to H&M to purchase clothing, the time that it takes me to get into the line, the time that amounts for the cashier to ring up the products that i am purchasing and how long it takes for my credit card to run through. They are so many different elements that can be used and measure in the speed in transactions.

Effectiveness and Efficiency using a Facebook in IT Metrics

I had my own hijab/headscarves for Muslim woman's business. I see that Facebook as one of the important medium in marketing my products more broadly. Nevertheless, a few questions came out as I plans to use Facebook as a place for me to do online business. Did I meet my customer's satisfaction if they making purchases on my products? Does this business online are effective enough or vice versa? 

In my personal opinion, it certainly saves time for the customers in purchasing the products they need because they do not need to go to the main shop. They as well get clearer picture of product they need compared with listening experiences from friends who have bought the product. Thus its saving their time, money, energy and meet their satisfactions. Yes, it is effective to do online business. I will get immediate feedback from my customers on my page compared with the use of feedback form. Negative feedback will be used as booster to make improvement while positive feedback will become as a benchmark either i had achieved my goals or not.

Chapter 3 : Strategic Initiatives for Implementing Competitive Advantages

Assalamualaikum,

Supply Chain Management Diagram

The above diagram shows how a product is generated starts from suppliers up to customers. An example senario is demand for the fresh harum manis mango from Thailand increased dramatically in the market. The fruit seller who are aware of the high demand for this fruit then purchases the harum manis mango from the dealer from there. The dealer purchases the fruit from various farmer which then will be supplied back to the fruit seller. This is a repetitive process.

What is Supply Chain Management ?

• A supply chain is the stream of processes of moving goods from the customer order through the raw materials stage, supply, production and distribution of products to the customer. All organizations have supply chains of varying degrees, depending upon the size of the organization and the type of product manufactured. These networks obtain supplies and components, change these materials into finished products and then distribute them to the customer. 

The Process of Supply Chain of A Product 

• The first step is obtaining a customer order. Customer satisfaction is paramount. As i've mentioned earlier, demand for the fresh harum manis mango from Thailand increased dramatically in the market. So, the raw material here is the harum manis mango. 
• The fruit company who are aware of the high demand for this fruit then purchases the harum manis mango from the dealer from there. The fruit comppany act as a supplier for the customer. In the meantime, the supplier will seek to buy fruit with low wholesale price. 
• The dealer purchases the fruit from various farmer which then will be supplied back to the fruit company. The process of repackaging will be made to ensure it is in good condition.  
• The fruit will then be distribute to retailers.  

The Four Basic Components of Supply Chain Management are : 

1. Supply chain strategy 

2. Supply chain partner

3. Supply chain operation

4. Supply chain logistics