In some cases, building a system solution may be the only effective and efficient approach if ... ... middle of paper ... ...for the customers, a simple and user-friendly system can be developed. Even though there will be excessive costs involved in the long term benefits will outweigh the short term costs incurred. From a business strategy viewpoint the in-house process will differentiates the system making it unique and gaining comparative advantage over its competitors. The systems performance will be primarily based on the set of requirements that have been set to ensure that efficiency, reliability and quality is given to the customers. There is also the capability to synergise the system across the business.
It Outsourcing INTRODUCTION Companies are increasingly outsourcing the management of information technology (IT) for reasons that include concern for cost and quality, lagging IT performance, supplier pressure, access to special technical and application skills, and other financial factors. The outsourcing solution is acceptable to large and small firms alike because strategic alliances are now more common and the IT environment is changing rapidly. REASON TO OUTSOURCE Although the mix of factors raising the possibility of outsourcing varies widely from one company to another, there are a series of themes that explain most of the pressures to outsource. First of all, general managers’ concerns about cost and quality drive outsourcing. The same issues such as getting existing services for a reduced price at acceptable quality standard came up repeatedly.
• The incremental model is more flexible; it will charge less cost to change scope and requirements. • Very easy to handle, test and operate during the development life cycle. • It has an opportunity for customers to respond to each and every build; provides flexibility in decision making. • Delivery cost is less than other software development methodologies. • Easy to manage the total risk; risk management is incremental.
This can be of particular value in tracking new products or customers and also solves the cross-subsidies problem linked to traditional costing system by separating overhead costs into different cost categories or cost pools. Further, it helps in cost reduction as by allocating indirect costs to products based on usage, a company can precisely identify the area in which the maximum energy and resources get consumed and the focus is then shifted to these areas. This will eventually lead to a reduction in cost as efforts will be made to purchase in bulk benefitting from economies of scale. The ABC system may be time consuming and expensive to implement and maintain, but its large number of benefits far outbalance the disadvantages of the traditional costing system; thus, creating a need for the ABC system.
SUMMARY OF CASE STUDY The Royal Bank of Scotland (RBS) was hired one junior technician in India. The system of the bank was glitch and caused a left millions of customers unable to access their accounts. It accidently happened and wiped out the information during a routine software upgrade. As a Chief Executive of RBS, Stephen Hester assumes that outsourcing never had caused the problems but things go wrong in technology. They have to learn the lessons from what went wrong in RBS and try to make then less likely to happen in the future.
If the outsourcers want more money, then they are almost obligated to give that money. This is usually the case when the contractors are bringing new technology into the system. High exit or switching costs entail the switch-over costs the company must shoulder if they decide to end the outsourcing and hire full time employees. It is important not to put too many resources at the hands of the contractors. Limiting this will ease the switch-over costs.
Successful implementation of virtual integration initiatives allows supplier companies, which are performing only certain processes, to work together as one entity. Therefore, operations become more efficient by reducing inventory, assuring quality, and reducing delivery time. More importantly, the organization maintains the ability to thrive in a competitive marketplace by achieving increased customer satisfaction through unique and strategic core competences. Virtual integration will redefine corporations and , eventually, entire industries as supply chains evolve into a new business model of cooperation and sharing.
Enterprise Resource Planning (ERP) Abstract ERP systems are meant to make companies and businesses operate more efficiently when they are not. The main goal for a company is to choose a vender that will give them the safest and easiest way to operate efficiently and achieve their business goals. What is ERP? • “An Enterprise resource planning (ERP) systems are software systems for business management, supporting areas such as planning, manufacturing, sales, marketing, distribution, accounting, finance, human resource management, project management, inventory management, service and maintenance, transportation, and e-business”. ( Haag, Cummings, Phillips, S, M, A (2007).
Although the sense of urgency for the change may not be that high, investing in IT infrastructure is a must as MS Dos is an obsolete technology and there is no contract or guarantee from their POS terminal vendor that they will continue supplying the same terminal with out much changes in the hardware for any specific period of time, therefore change is unavoidable. The other main issue that Zara faces is that the stores don’t share inventory information electronically and hence inventory management becomes highly difficult and manual. The decision making process is based on the judgment of employees throughout the company instead of relying on a small set of decision makers; the majority of the decisions were made by store managers and as a result they placed orders for the items rather than simply accepting and displaying what headquarters decided to send them.
In relation, the relatively portability and small size of these devices and the information stored on them exposes them to higher risk of getting lost or get stolen. In addition, the weakness of passwords and opera... ... middle of paper ... ...nclusion therefore, it is clear that BYOD has many impacts and no single IS approach exists for ultimate protection against these threats. Therefore defense-in-depth and many IS strategies must be employed in an organization. Technology has sophisticated to the state that our lives spread over it. Thus, employers are required to familiarize and adjust traditional mandates and needs to minimize risks while BYOD trend accelerates.