CHAPTER 12 CASE - SHELL CANADA FUELS PRODUCTIVITY WITH ERP

(1) How did ERP help improve business operations at Shell?

ERP help improve business operations at Shell by operations that span from wells and mines, to processing plants, to oil trucks and to gas pumps. Rate 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 solved these inadequacies by providing an integrated web-based service order, invoicing and payment submission system. Third-party contractors can enter service orders directly into Shell’s ERP system via the web easily and faster.

~ Contractor’s monthly summarized invoices can be generated automatically and fed directly into ERP system’s account payable application for processing.

~ Help speed up maintenance and repair operations at the company’s refineries. 

(3) What advice would you give Shell if it decided to choose a different ERP software solution?

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 proceed to use. If not Shell must use the ERP software that they already have. Must be remember, people want the easier work and if people already knows and common with the system before, they will make the work effective and efficiency. Changes can be made but not too complicated until exist the difficulty feel for them.

(4) How can integrating SCM, CRM, and ERP help improve business operations at Shell?

- Shell will have a lot of suppliers to supply the materials that they want to sell. Therefore, Shell must determine the suitable supplier to give them the products such as supplier for junk food, water, petrol and else.

- Shell want built the good relation towards their customers by giving Shell card. Customers will use the card to get point. Then when the points become increase, Shell will give reward or present to their customers.

- For the ERP, Shell will have their own website to make the contractors easy to make any transactions, exchange, payments and else.

EXTENDING THE ORGANIZATION - SUPPLY CHAIN MANAGEMENT

Haii, ASSALAMUALAIKUMM U'OLLSs.. next in my entry is about SUPPLY CHAIN MANAGEMENT (SCM). MY LECTURE ASK US TO ANSWER ALL THE QUESTION IN LEARNING OUTCOMES BASED ON OUR TEXTBOOK.. 
and this is my answer.......

(1) List and describe the components of a typical supply chain

A basic supply chain management system has five components: 

1. the plan, which refers to the over-all strategy of the SCM program including the development of SCM metrics to monitor 
2. the source, which refers to the suppliers who'll provide you with goods and services necessary for you to run your business 
3. the 'make' or manufacturing component, which refers to the execution of processes needed to produce, test, and package your products or services 
4. the delivery, which refers to the system for receiving orders from customers, developing a network of warehouses; getting the products to the customers; invoicing customers and receiving payment from them; and 
5. the return, which is the system for processing customer returns and/or supporting customers with problems with the products they received.

(2) Describe the four changes resulting from advances in IT that are driving supply chains

VISIBILITY

• Supply chain visibility is the ability to view all areas up and down the supply chain.
• Bull whip effect occurs when distorted products demand information passes from one entity to the next through the supply chain.

• Information technology allows additional visibility in the supply chain.

CONSUMER BEHAVIOUR

• Demand planning software generates demand forecasts using statistical tools and forecasting techniques
• Ones an organization understand customer demand and its effect on the supply chain it can begging to estimate the impact that its supply chain will have on its customers and ultimately the organization's performance.

COMPETITION

• Supply chain management can be broken down in'
• Supply chain planning software: uses advanced mathematical algorithms to improve the flow and efficiency of the supply chain while reducing inventory. SCP depends entirely on information for its accuracy.
• Supply chain executive (SCE) software automates the different stems and stages of the supply chain.

SPEED

• During the past decade, competition has focused on speed. New forms of severs, telecommunications enabling companies to perform activities that were once never thought possible.
• Another aspect of speed is the company's ability to satisfy continually changing customer requirements efficiently, accurately, and quickly.

(3) Summarize the best practices for implementing a successful supply chain management system

MAKE THE SALE TO SUPPLIERS

The hardest part of any SCM is it complexity because a large part of the system extends beyond the company's walls

WEAN EMPLOYEES OF TRADITIONAL BUSINESS PRACTICES 

Operation people typically deal with phone calls, faxes an orders scrawled on paper and will most likely want to keep it that away

ENSURE THE SCM SYSTEM SUPPORTS THE ORGANIZATIONAL GOALS

It is important to select SCM software that give organizations and advantages in the areas most most crucial to their business success

DEPLOY IN INCREMENTAL PHASES AND MEASURE COMMUNICATE SUCCESS

Design the deployment of the SCM system in incremental phases

BE FUTURE ORIENTED

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

dOne one of my assignment!! yeeaayyy =)) wait for my next entry.. 

KEEP CALM & LOVE YANA (^_^ *)

BUILDING A CUSTOMER CENTRIC ORGANIZATION - CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

HAII.. We mEet agAin guyss.. hOw arE yOu?? i hOpe u'rE in thE pInK.. (^_^* ) today, my entry is about how a company manage their relationship with customers in their organization.. 

Why is it important for any company to use CRM strategies to manage customer information..

• PROVIDE BETTER CUSTOMER SERVICE
• MAKE CALL CENTER MORE EFFICIENT
• CROSS CELL PRODUCT MORE EFFICIENTLY
• HELP SELL STAFF CLOSE DEALS FASTER

If the virtual world is the first point of contact between a company and its customer, how might that transform to entire shopping experience.

POSITIVE SIDES

• IT MORE EASY TO MAKE CONVERSATION AND TRANSACTION
• THE COMMUNICATION WILL BE MORE EFFECTIVE BECAUSE CUSTOMER CAN FACE TO FACE WITH SELLER
• THE CUSTOMER CAN GIVE COMMENTS OR CRITIC IN FRONT OF THE VIRTUAL TOOLS 

NEGATIVE SIDES

• HIGHER COST IN MAINTENANCE
• CUSTOMER DID NOT KNOW ABOUT THE ACTUAL PRODUCT
• IT WILL HARD FOR CUSTOMER TO COMMUNICATE IF THE MACHINE IN TECHNICAL PROBLEM

ENABLING THE ORGANIZATION - DECISION MAKING

ARTIFICIAL INTELLIGENCE 

Artificial Intelligence (AI) simulates human thinking and behaviour, such as the ability to reason and learn. Ability of a machine to perform tasks thought to require human intelligence. Typical application include game playing, language translation, expert systems, and robotics. 

There are for categories of Artificial Intelligence systems.... 

EXPERT SYSTEMS

an expert system is a computer system that emulates the decision-making ability of a human expert. Expert systems are designed to solve complex problems by reasoning about knowledge, like an expert, and not by following the procedure of software as is the case in conventional programming. Expert systems were among the first truly successful forms of AI software.click for more info.. =D

NEURAL NETWORKS

A series of algorithms that attempt to identify underlying relationships in a set of data by using a process that mimics the way the human brain operates. Neural networks have the ability to adapt to changing input so that the network produces the best possible result without the need to redesign the output criteria.

GENETIC ALGORITHMS

a genetic algorithm is a search heuristic that mimics the process of natural evolution. This heuristic is routinely used to generate useful solutions to optimization and search problems. Genetic algorithms belong to the larger class of evolutionary algorithms (EA), which generate solutions to optimization problems using techniques inspired by natural evolution, such as inheritance, mutation, selection, and crossover.

Genetic algorithms find application in bioinformatics, phylogenetics, computational science, engineering, economics, chemistry,manufacturing, mathematics, physics, pharmacometrics and other fields.

INTELLIGENCE AGENTS

An intelligence agent is a special purpose knowledge based information system that accomplishes specific tasks on behalf of its users. Intelligence agents usually have a graphical representation, such as "Sherlock Holmes" for an information search agent.

This is a movie by Steven Spielberg's but isn't just a movie that U need to watch.. The movie, set in the near future, is about a human like robot boy who runs on artificial-intelligence software. A computer program that doesn't just follow instructions, as today's software does, but can think and learn on its own. In some ways, the character is a fantasy. It's no closer to reality than the alien in Spielberg's earlier E.T. the Extra-Terrestrial. Yet artificial intelligence is very real. It's far from re-creating a human brain, with its power, emotions and flexibility, though that might be possible in as little as 30 years. Today's AI can re-create slices of what humans do, in software that can indeed make decisions. 

ACCESSING ORGANIZATIONAL INFORMATION - DATA WAREHOUSE

again and again... yesss that me!! CIK YANNA in da housee!! here, the next entry is about learning outcomes for DATA WAREHOUSE

(1) describe the roles and purpose of data warehouses and data marts in an organization

The purpose of the Data Warehouse in the overall Data Warehousing Architecture is to integrate corporate data. It contains the "single version of truth" for the organization that has been carefully constructed from data stored in disparate internal and external operational databases.

The amount of data in the Data Warehouse is massive. Data is stored at a very granular level of detail. For example, every "sale" that has ever occurred in the organization is recorded and related to dimensions of interest. This allows data to be sliced and diced, summed and grouped in unimaginable ways. 

Typical Data Warehousing Environment

 

Contrary to popular opinion, the Data Warehouses does not contain all the data in the organization. It's purpose is to provide key business metrics that are needed by the organization for strategic and tactical decision making. Decision makers don't access the Data Warehouse directly. This is done through various front-end Data Warehouse Tools that read data from subject specific Data Marts. The Data Warehouse can be either "relational" or "dimensional". This depends on how the business intends to use the information.

(2) explain the relationship between business intelligence (BI) and a data warehouse (DW)

BI is a business management term that refers to the applications and technologies used to gather, provide access to, and analyse data and information about a company's operations. A DW is a repository for a company's historical data. DW can be physical or virtual, and they can be structurally relational, quasi-relational, summarized, cubes, flat files, or a combination of styles. DW is the set of technologies and techniques that you use to build and manage the data warehouse. 

more info?? just click =)

finally, me done my assignments.. yeaayyyy!! =')) Hope this notes will be useful to us.. I'll come back later to updates in next chapter.. btw thanks for reading.... 
KEEP CALM & LOVE YANA =')

STORING ORGANIZATIONAL INFORMATION - DATABASES

HEYYY U'OLLLSSS!! we met again =')  i like to wish SALAM MAULIDUR RASUL to all muslim in this country.. Let's bless of our beloved Prophet, Muhammad S.A.W. aminnnnn.. here, the next entry my lecturer ask us to answer all the questions in learning outcomes.. btw, Done read all my previous entries?? i give a lots of information.. dont miss yaaaa.. ;')

(1) define the fundamental concepts of the relational database model

Concept of a database is that of a collection of records or pieces of information which is a structural description of the type of facts held in database known as a schema. Schema describe the objects that are represented in the database and the relationships among them. There are ways of organizing a schema modelling the database structure known as database models or data models. but nowadays, Relational model is commonly used which is all information in the form of multiple related tables each consisting of rows and columns. this model represents relationships by the use of values common to more than one table. Hierarchy model and the network model is use a more explicit representation of relationships.

(2) evaluate the advantages of the relational database model 

The advantages of the relational model 

• increased flexibility
• increased scalability and performance
• reduced information redundancy
• increased information integrity (quality)
•  increased information security

INCREASED FLEXIBILITY

• good database that can handle changes quickly and easily
• physical view of information deals with the physical storage of information on a storage device such as a hard disk
• logical view of information focuses on how users logically access information to meet their particular business needs

INCREASED SCALABILITY & PERFORMANCE

• scalability refers to how well a system can adapt to increase demand
• performance measures how quickly a systems performs a certain process or transaction

REDUCED INFORMATION REDUNDANCY

• redundancy is the duplication of information, or storing the same information in multiple places
• occurs bcoz organizations frequently capture and store the same information in multiple locations.
• primary problem with redundant is that it is often inconsistent which makes it difficult to determine which values are most current or most accurate

INCREASED INFORMATION INTEGRITY (QUALITY)

• measures of the quality of information
• database environment, integrity constraints are rules that help ensure the quality of information 
• two types of integrity:

(1) relational integrity constraints - enforce bacic & fundamental information based constraints

(2) business (critical integrity constraints) - enforce business rules vital to an organization's success and often require more insight and knowledge than relational integrity constraints

INCREASED INFORMATION SECURITY

• organizational asset
• as systems become increasingly complex and more available over the internet, security becomes an even bigger issue
• offer many security features including passwords access levels, and access controls
• password provide authentication of the user

(3) define the database management system (DBMS) and its relationship to a website

DBMS is software through which users and application programs interact with a database. The user sends requests to the DBMS and the DBMS performs the actual manipulation of the information in the database. there are two primary ways that users can interact with a DBMS, directly and indirectly. 

(4) explain why an organization would want to integrate its database

by integrating its systems or building connections between its many database, its allow the organizations multiple system to automatically communicate by passing information between the databases, eliminating the need for manual information entry into multiple systems because after entering the information once, the integrations send the information immediately to all databases. the integrations not only enable the different departments to share information, but have also dramatically increased the quality of the information. without integrations, an organization will,

1. spend considerable time entering the same information in multiple system

2. suffer from the low quality and inconsistency typically embedded in redundant information 

While most integrations do not completely eliminate redundant information, they can ensure the consistency of it across multiple systems. 

Organizational Structures That Support Strategic Initiatives

Did u know what is Organizational Structure?? Read my entry here & Let me tell u.. =') it is about basic structure of a typically IT department including titles, roles, and responsibilities will help an organization build a cohesive enterprise wide team. So that they need to maintain positions in developing  towards elevating some IT positions such as CIO, CTO, CSO, CPO, and CKO. What's that purposes to?? WONDERING?? let me explainn...

CHIEF INFORMATION OFFICER (CIO)

this position is responsible for 

• overseeing all uses of information technology
• ensuring the strategic alignment of IT with business goals and objectives

broad function of CIO include:

• Manager - ensure the delivery of all IT projects, on time and within budget.
• Leader - ensure the strategic vision of IT is in line with the strategic vision of the organization
• Communicator - advocate and communicate the IT strategy by building and strong executive relationships.

CHIEF TECHNOLOGY OFFICER (CTO)

CTO is responsible for ensuring the throughput, speed, accuracy, avaibility, and reliability of an organization's of an organization information technology

CHIEF SECURITY OFFICER (CSO)

This position is responsible for ensuring the security of IT systems and developing strategies and IT safeguards against attacks from hackers and viruses

CHIEF PRIVACY OFFICER (CPO)

CPO is responsible for ensuring the ethical and legal use of information within an organization

CHIEF KNOWLEDGE OFFICER (CKO)

This position of CKO is responsible for collecting, maintaining and distributing the organization's knowledge.

All the above IT positions and responsibilities are critical to an organization's success. The individuals responsible for enterprise wide IT and IT-related issues must provide guidance and support to the organization's employees. 

wish u'ollssS gots the informations and keep reading with my new entry.....

KEEP CALM & LOVE YANA ='D 

how the efficiency & effectiveness the seller using Facebook as a medium of business..

How the success of business online ads are generally measured?? facebook make more advanced online business .. seller can make their business as a part time job as well as to reduce the cost without having to pay rent the site for sale. Besides the dealer can also save time without having any specific time for doing business. They just need to upload pictures of goods sold which is one way to promoted enclosed with your goods the right information on the goods. Customer only need to make a comment or private message for more information if interested. Based on the feedback received, the customer is satisfied and also received goods quickly and safely.

measuring the success of strategic initiatives...

EFFICIENCY & EFFECTIVENESS IT METRICS

definition of metrics... 
standard of measurement by efficiency, performance, progress or quality of a plan, process or product can be assessed.

efficiency IT metrics

• metrics is about measure a performance of IT system itself including speed, availability & etc.
• IT may be focused back-offline efficiency instead of the premium customer service the company wishes to provide.
• in example, how efficiency and the rate of speed customers from Apple Store can purchase or repair their gadgets until they got what they want.

effectiveness IT metrics

• measure the impact IT has on business process & activities including customer satisfaction, conversion rates ell increase.
• 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.
• for example, in real life how would be how well customers are treated at the Apple Store when purchasing a new iPod or gadgets.

RESOURCE PLANNING INTRODUCTION (ERP)

A system that used to combine all the information or operations of a company into a single unit. The standard ERP system will utilize both computer hardware and software. Central database of ERP system will be use to store information from various modules. ERP was originally coined, it was used to describe systems that were designed to use multiple resources. It was commonly connected to the manufacturing industry. The goal of ERP is to unify the various functions of an institution. The software must be capable of giving functionally to one unit that would commonly have to use multiple systems. For example, a system that was able to combine two elements into a whole, such as a system that combined payroll with accounting, would be an ERP system. 

Say 'Charge It' with Your Cell Phone

Your cell phone can purchase item?? but how???..... yess!! u could purchase item by using your cell phone by dialing a telephone number on the dispensing machine and have the charge for the item and it will show up on your cell phone bill. this working prototypes are currently in use in South Korea, Japan and Europe. wish it will have in Malaysia too.. =)) 

do u think this technology as a potential threat to additional telephone companies?? i think it yess!! so traditional telephone companies should adopt to prepare for this technology. this company must overcome this before the new technology affecting in their production. they must be innovative and creative to create new product that more useful in their company. they should create more differentiation with competitive advantage by distinguishing their products on one or more features important to their customers. make consumer desire to use and loyalty with their product. give good and service satisfy need of customer through sustainable competitive advantage. competitors with higher costs cannot afford to compete with the low-cost leader on price. this allows companies to low their price and focus on value that generated a quite higher price. benefit differentiation is need a producer achieve their target to give good and services for the consumer. 

By using Porter's Five Forces, there is barriers to entry for this new technology in cell phone. among the barrier that the company must facing is threat of new entrants which will be low when there are significant entry barriers to entering the market. Company can expect obstacles that will occur and identify the causes. Between the barriers to technology companies have been long in the market are as  sceptical consumer of their products and have an impact on production.sales companies do not reach the target due to the lack of consumer confidence in the new technology market. Sometimes the user is not too fast to adopt new technology. Among those who consider the new technologies that are marketed just copy and paste or copyright from existing technologies in the market. threat of substitutes  product and services, ideally an organization would like to be on a market which there are a few substitutes of their product or services. Obstacles to the tackle is coming to a copyright company and the products will be competitive. Barriers will be high because companies will maintain the same product, by the problem for companies to maintain their company sales. When Threat of Substitute products and services been high, power of buyers will be increase because there are many options for consumers to buy.

To this new technology, the company chooses differentiation of the porter's 3 Generic Strategies, create a low cost producer in the industry allows the company to lower prices to customers. Unique features or benefits may justify  price differences for example i-care by proton. the company has made a difference in this technology which has competitive advantage to the company. for this strategy, unique features or benefits of the technology can differentiate prices and more demand from consumers. This technology has many application that can be used by the users and no longer in other technology is available. As mentioned in the article, this technology can buy anything using no.phone and must carry their mobile phone. That is a differentiation strategies used by other companies.

value chain which means value-adding activities that convert inputs into outputs.
help create competitive advantage-for the value chain of this business, the profit they get from the payment will go to company or an organizations.As their profit, they will create a new design and pay the supplier that supply the materials.With this activities, company can develop their business same level in international market.




types of regulatory issues that might occur during the transaction from customer

-transaction like buying merchandise, paying the bill or any else will lead to fraud. Sometimes the products is not the same as sample or picture that had been showed. Customer unsatisfied with the merchandise. There are also can happen when the company have taken the money but the products are not delivered to customer. The fraud also can be occur from customer as they can lie about their information such as they use others phones. The breakdown of system also can be an issues that occur and can make the transaction cancelled automatically

IDENTIFYING COMPETITIVE ADVANTAGE

In chapter 2, we learn about competitive advantage (CA) that is a product or service that an organization's customers place a greater value on the similar offerings from a competitor. Unfortunately, CA is typically temporary because competitors keep duplicate the strategy. Then the company should start the new competitive advantage.

The five forces in Porter's Five Forces Model is 

BUYER POWER
Buyer power will be high when buyers have many choices of whom to buy and it will be low when their choices are few. To reduce buyer power an organization must make it more attractive to buy from the company not from the competitors. The best practices of IT- based is loyalty program in travel industry for example rewards on free airlines tickets or hotel stays.

SUPPLIER POWER
Supplier power will be high when buyers have few choices whom to buy from and will low when their choices are many. The best practices of IT to create competitive advantage. For example, business to business marketplace. Private change allow a single buyer to posts it needs and then open the bidding to any supplier who would care to bid. Reverse auction is an auction format in which increasingly lower bids.

THREAT OF SUBSTITUTES PRODUCTS & SERVICES
It will be high when there are many alternatives to a product or services and will be low when there are few alternatives from which to choose. Ideally, an organization would like to be on a market in which there a few substitutes of their product\or services

THREAT OF NEW ENTRANTS
High when it is easy for new competitors to enter a market and low when there are significant entry barriers to entering a market. Entry barriers is a product or services feature that customers have come to expect from organizations and must be offered by entering organization to compete and survive. Best practices of IT for example new bank must offers online paying bills, acc monitoring to compete.

RIVALRY AMONG EXISTENCE COMPETITORS
High when competition is fierce in a market and will be low when competition is more complacent.

IT in your daily life =)

Nowadays, in our globalisation centre, electronics that connect to one another are found everywhere.For example, we have a lots of gadgets in office, home, car and everywhere.We also can bring it together like handphone, ipad mp3 and etc. Bluetooth and WiFi are the wireless technology that can be connected between one gadgets with another in distance.

IT's can give impact on business operation in terms of : 

• reducing costs
• improving productivity
• generating growth

INFORMATION TECHNOLOGY BASIC:

• Information Technology (IT)
• Management Information Systems (MIS)

Information technology (IT) is a field concerned with the use of technology in managing and processing information.Its covered many field that deal with the use of electronic computers and computer software to convert, store, protect, process, transmit, and retrieve the information securely.IT can be an important enabler of business success and innovation.It not useful unless the right people know hoe to use and manage it effectively.

Management Information Systems (MIS) is a business function just as marketing, finance, operations and human resources. MIS is a general name for the business function and academic discipline covering the application of people, technologies, and procedures.The important elements of MIS is data, information and business intelligence, IT resources, IT culture.

 

Data is a raw facts that describe the characteristics of an event, for example population number of student.Characteristic for a sale is date, item, number, item description, quantity ordered, customer name, shipping details.