Business Functions and Processes (Google. Communication and Information Technology) - Research Paper Example

Business Functions and Processes Academic Literature Communication and Information Technology (CIT) Companies using information technology tochange the way they carry out business often announce that their investment in information technology complements changes in almost every aspect of the organization. These complementarities leave and put a number of ramifications for comprehending the value of computer based environment. In order to achieve success, organizations particularly need to adopt computers as an essential part of a ‘system’ or ‘cluster’ of mutually reinforcing organizational changes (Milgrom and Roberts 1990). Moreover, changing supplementary, either by incorporating computer investments without firm change in organization, or only partially enforcing some organizational requirements and changes, can generate significant productivity losses as any advantages of computerization are normally more than outshined by negative interactions with present organizational policies and practices (Brynjolfsson, Renshaw and Van Alstyne 1997). The necessity for ‘all or nothing’ changes between complementary systems was a part of the logic behind the organizational reengineering shift period during the era of 1990s (Hammer 1990). Furthermore, it can also elaborate why many large scale information technology projects are unable to perform as expected and miserably fail (Kemerer and Sosa 1991), while successful information technology adopters earn substantial rents (Brynjolfsson and Hitt 2000). There are various examples reflecting the historically high cost of information gathering and processing as well. For example, hierarchical organizational structures can diminish communications costs because they reduce the number of communications links essential to connect multiple economic factors as compared with the more decentralized hierarchical structures (Malone 1987; Radner 1993). Analogously, producing simple and standardized products remains to be the most efficient way to utilize scale intensive and inflexible manufacturing technology. However, as the cost of automated information processing has diminished by over 99.9 percent since the 1960s, it is not likely that the work practices of the earlier era will remain the same ones that best leverage the value of inexpensive information along with flexible production. In this spirit, Milgrom and Roberts (1990) develop and provide a model in which firm’s transformation and transition from ‘mass production’ to flexible, computer-enabled modern manufacturing’ is pushed by exogenous changes in the information technology price. Within the same context, the Bresnahan (1999) and Bresnahan, Brynjolfsson and Hitt (2000) highlight that how changes in information technology costs and capabilities direct to a cluster of changes in work organization and firm strategy increasing the demand for skilled labour. Changing interactions with the suppliers Managing a constant and result-orientated interaction and correspondence with suppliers offers numerous pitfalls. The organizations are generating a view that it is no more a feasible option to permanently rely on suppliers and may not disregard this option as for as the short term objectives are concerned. The organizations contend that suppliers have not been able to expectedly fulfil their role and part of work and they provide their excuses for delays. Keeping this view in mind and due to other problems coordinating with external suppliers, large firms often generate and develop many of their required inputs in-house. General Motors is the appropriate successful story of a company whose success was considerably supported by high levels of vertical integration. However, the latest technologies such as internet-based procurement systems, electronic data interchanges and other inter-organizational information systems have substantially diminished business process cost, business design and development cost and other difficulties of interacting with suppliers. Within the same context, now organizations can place orders and receive confirmations via the use of the Internet, eliminating paperwork and errors and delays attached with the manual processing of purchase orders (Johnston and Vitale 1998). Moreover, the supplementary advantages can also be availed when inter-organizational systems are attached and combined with new methods of working with suppliers and other business associates. An early successful inter-organizational system knows n as the Baxter ASAP system, which enables hospitals electronically to order supplies directly from the wholesalers (Vitale and Konsynski 1988; Short and Venkatraman 1992). There were many advantages directly and indirectly provided by the application of information communication technology mechanism. For example, the system was originally developed and designed to diminish the costs of data entry- a large hospital could place 60,000 purchase orders annually which had to be written out by hand by Baxter’s field sales associates at a projected cost of $ 25-35 each. However, once Baxter computerised its ordering system and had data available on levels of hospital stock, it required extended responsibility for the entire supply operation including designing stockroom space, providing automated inventory replacement and setting-up computer based inventory system. The collective use of technology and new supply chain, the organization substantially enhanced effectives and efficiency for both Baxter (no paper work or paper invoices) and the hospitals (reduction of stockroom management tasks, less chances of running out of items and lower inventory as well. Computer-based supply chain integration has been particularly complex and sophisticated in the consumer packaged goods industries. Traditionally, producers used and promoted products such as laundry detergent and soap by offering different types of discounts and rebates as many consumer products have long shelf lives and retailers tended to buy substantial amounts during the promotional periods, which again enhanced volatility in manufacturing schedules along with distorted manufactures’ view of the market. In response, producers sped up their packaging modifications to discourage stockpiling of products and they established internal audit departments to monitor retailers’ purchasing behaviour for contractual violations (Clemens 1993). McKenney and Clark (1995) state that to eliminate these inefficiencies, Procter and Gamble has pioneered a program called ‘efficient consumer response’. In this program, each retailer’s checkout scammer data directly heads toward the manufacturer; payments, ordering and invoicing are fully automated via electronic data interchange; products are regularly replaced by a focus on everyday low pricing. Manufacturers are also involved more in inventory decisions and are heading toward ‘category management’; in which a lead manufacturer would assume responsibility for an entire retail category along with highlighting and determining stocking level for their own and other products as well. Technology-based innovations pertaining to the commercialization of the Internet have substantially diminished the input cost of building electronic supply chain links. Computer-supported procurement and on-line markets provide a considerable amount of decline in input costs via a combination of reduced procurement time and more predictable deliveries, which again discourages and reduces the need for buffer inventories along with reducing spoilage for perishable commodities. In addition to that, reduced direct costs of purchase order and invoice processing are being experienced by many organizations. Where they can be enforceable, these innovations are projected to decrease the costs of purchased inputs from 10 to 40 percent depending on the industry (Glodman 1999). Changing customer relationships The Internet has opened up a wide range of possibilities for constructing and maintaining interactions with a wide range of existing and potential customers. In this regard, Rangan and Bell (1998) highlight that Dell Computers has been considerably successful in attracting and retaining customer orders and has been improving service by placing a wide range of options including configuration, ordering and technical support abilities on the web. In addition to that, Dell has enforced a consumer-driven build-to-order business model instead of using the traditional build-to-stock model of selling computers and computer accessories through retail stores. As a result, this technology based selling is providing Dell as much as a 10 percent advantage over its competitors especially in production cost. Some of these savings denote the elimination of retailing and wholesale distribution costs. Others represent substantially lower levels of inventory across the distribution channel. However, a subtle but significant by-product of these modifications in production and distribution is that Dell can be more easily and fast respond to customers and it can easily resolve their complaints and queries and other things required by the customers. Brynjolfsson and Hitt (2000) pinpoint that when Intel launches a new microprocessor, Dell can sell it to existing and potential customers within seven days in comparison with eight weeks taken by Intel to reach that level of selling speed. However, this is not a substantial difference in an industry where adoption of new technology along with obsolescence of old technology is widespread, profit margins are thin, and prices of many components drop by 3 to 4 percent each month. Moreover, other firms have also constructed closer relations with their customers via the Internet and other available technological means. For example, web retailers such as Amazon provides personalized recommendations to website visitors and enable them to customize numerous aspects of their online shopping experience. As described by Caruso (1998). ‘Amazon’s online account maintenance system provides its customers with secure access to everything about their account at any time. Such information flow from and to customers would paralyze most old-line firms.’ Merely providing the Internet access to a traditional bookstore would have had a comparatively lesser effect without the cluster of other changes enforced by the organizations like Amazon. Also, an increasingly common manifestation is using the website for handling and managing basic customer inquiries. For example, UPS now manages a total of 700,000 package tracking requests through the facility of Internet every day. UPS bears 10 cents per piece to serve that information through the medium of the Internet and $ 2 would be consumed if the same service is provided through the use of phone (Seybold and Marshak 1998). It is also advantageous for customers as well. As customers find it much easier to track and inquire about packages over the Internet than through the phone, UPS projects that two-thirds of the Internet users would not have bothered to check on their packages if they did not have access to the website through the facility of the Internet. 1-Google organizational structure Google Mission Google’s Mission is to organize the world’s information and make it universally accessible and useful (About, n.d.). Google was founded by Larry Page and Sergey Brin in 1998. Both founders initially met at Stanford University in the year of 1995. By the year of 1996, they had developed a search engine, called as Back Rub that used links to ascertain and measure the significance of individual web pages. On September 4, 1998, Google obtained the certificate of incorporation and it floated its first ever Initial Public Offering (IPO) in NASDAQ on August 19, 2004. Headquartered in California, Google Inc. has grown substantially and recognised across the world as one of the best search engines. Google Inc. has developed numerous other applications including image search, social groups, Google docs, News, translation, image search on mobile phone, blog search, alerts and Google scholar are some of them. Moreover, Google Inc. provides business solutions to entrepreneurs and publishers. The business solutions pertain to both on and off the web. The advertising services ranging from simple text ads to rich media ads, help businesses find customers. Furthermore, Google Inc. also provides cloud computing tools for businesses and entrepreneurs that save money and enables businesses to become more cost efficient and productive as well. The products like Chrome and Android, Google Inc. has provided simpler and faster for customers and clients to do what they want to online. And the latest product offered by the Google Inc. is Google Glasses that is yet to be publically offered. 2- Product design information The Google Glass product is developed by keeping in view the design philosophy developed and nurtured by the Google management. The product design philosophy is based on three design principles: Focus- with the new design changes, Google Inc. has to bring forward the things that matters to users and things moved all the other clutter out of their way so that the users can properly focus on what they require at a particular point of time (Annual Report 2011). Elasticity- The new design enables users to seamlessly transformation from one application or device to another from the numerous mobile devices, high-resolution monitors, tablets and TVs to access the web and have interrupted and consistent visual experience. Effortlessness- the Google Inc.’s design philosophy is developed to combine power with simplicity. The Management of Google Inc. want to keep the look simple and clean, but behind the seemingly simple product design and look, utilize technologies such as HTML5, WebGL, and the fastest and latest browsers to ensure that users have all the power of web with them (Annual Report 2011). The Google Inc. is going to launch its new product in the market. Known as the Google Glasses, these glasses will have the collective features of augmented reality and virtual reality. The Google Glasses can employ a 4G cell connection to take information from Google’s data and display information about the real world in augmented reality on the lens in front of human eye. As one turn head, he will get information about the surroundings and nearby objects from Google Goggles, information on establishments and buildings from Google Maps, even nearby friends can check-ins from latitude. Augmented reality describes a view of the real world that comprises of superimposed graphics (Claburn 2012). Typically, it is done by projecting images on a screen between a viewer and view in which screen such as lenses are implanted. It is carried out by adding dynamic graphics to a live video scene and it is considerably similar to many smart phone applications. A newly published Google+ page extends a glimpse of what to expect from the Project Glass, the experimental augmented reality project is being developed by Google X, a company laboratory currently involved for the project. The Project Google Glasses are the manifestations of some basic wearable computers which are quickly becoming everyday products (Bilton 2012). Although this product at its prototype stage, wearing the glasses could turn the Internet into a tool in the same way that our memory is a tool now (Ortutay, 2012). Google Glasses use the same Android software that supplies power to Android smart phones and tablets. Similar to smart phones and tables, the Google Glasses will be equipped with GPS and motion sensors technology. They will also be attached with a camera and audio inputs and outputs. The scientist behind Project Glass includes Babak Parviz, Sebastian Thrun and Steve Lee (Adhikari 2012). The wearer can also transmit what he sees during conversation process. For example, looking out of the window brings data about the weather that is shown on the lens. In addition to that, looking at objects while walking brings up information on the lens For instance, when the wearer passes a subway station, a notice that service had been suspended for a particular period of time is called up a Google Map showing a walking route as well. Moreover, a Siri-like voice application puts up data and information in response to asked questions and queries. For example, when the wearer walks into a bookstore and asks where the music section is, a map props up and indicates the location of music section on the lens. The wearer may use instruct the glasses to take some snap shots and it would instantly performed as well. The glasses are said to comprise of a low-resolution camera for capturing image and information about the wearer’s location. Relevant information derived from the image processing and location data will then be overlaid on the wearer’s view filed. 3-Product delivery information Google has both local and international market to deliver its product. Locally, the demand for the product would be considerably higher for various reasons. First, the Google Glasses will enable the users to save time and cost by wearing the glasses. In addition to that, the offered product has no identical product in the local and international market. This would increase the chances for higher demand not only in the United States of America but also to other countries of the world. It will be the biggest encouragement for the Google management to launch its product in the market. However, it is yet to be established that how the Google management would manage the product delivery and its subsequent distribution to the local and international market. Generally, the companies outsource their product delivery and distribution function in order to save money and efforts. If the Google management outsources the distribution function of this product, they have to decide whether the local distribution and international distribution would be allocated to a single distributor. However, currently the Google has made some affiliations with distribution partners who distribute Google toolbars and other products (Annual report 2011). However, these products are distributed in the virtual world not in the physical world. And the Google Glasses’ order, purchase and sale will be carried out through the appropriate representative websites and other physical outlets but the product delivery will be carried out through any of the distribution channel. 4- Implications of business processes Google has never been a design-forward organization. Instead, it has taken over the world by building products with raw intellectual horsepower along with the appropriate of artificial intelligence to fuel its search, wise mapping systems enabling the customers from one point to another point, cloud-syncing application allowing the users to collaborate on projects from around the world. Wilson (n.d.) opines that Google will observe the following ramifications: The Segway Problem Technology can be a symbol of future-forwardness or it can become the exact opposite. The segway was flopped in part due to its cost and in part for the fact that the customers are not quite lazy, but there was a clear but deeper visceral reaction to the core product signifying an unpromising future rather than a promising one. Till this point of time, the Google glasses are less inspiring. Calburn (2012) highlights some of the potential pitfalls that could severely impact the product success and long term demand in the local and global market. Privacy The outcry over people beaming images back to Google’s data centers will be very loud, which could be far worse than the complaints about Google’s monitoring habits of web browsing. The Google engineers are said to be considerably discussing privacy implications of this product and they do not disagree with the notion that privacy implications and controversy is inevitable. In addition to that, Google has the technology capable enough to recognise faces with its Google Goggles application, but it has not marketed it and has avoided doing so for fear of privacy issues. And that is going to be a real shame as augmented reality glasses should be able to do things like providing the name of the person you are looking at. In addition to that, the glasses would also provide the available information about the person including its residence, phone number and other confidential information pertaiing to that period. That kind of technology will be available eventually; at least law enforcement agencies However, as a society, a considerable number of people are not ready to accept that reality as it will take away the basic privacy rights. Redundancy The augmented reality is a useful piece of today’s technology. However putting the technology into a pair of glasses is not especially necessary. The important thing is that the same function and features are performed by the Android phone and considerably much better than the Google glasses. The use of Android phone becomes more relevant and useful given the assumption that the Google glasses will not be in a constant use rather they will be periodically used. This means the wearer may not be suggested to regularly use the Google glasses due to some health or other reasons. This puts the entire piece of work in a less acceptable situation. Health Brain cancer is mostly caused by the excessive use of mobile phones. In these days, many health experts highlight that the brain tumour and brain cancer are mostly caused by the excessive use of mobile phones. And even most scientifically-minded experts are likely to baulk if Google glasses depend on anything more powerful than Bluetooth to transfer or transmit and subsequently receive data. In addition to that, it is unclear what impacts Google glasses would leave on vision and sight of humans. Till this point of time, no information has been provided about the repercussions of the effects of using this technology for adults and children. Moreover, if the impacts of mobile phones generate brain cancer and other similar but dangerous diseases, there would be no way to protect the impacts of the Google glasses. And the possibility of more severe repercussions cannot be ruled out. Cost Interestingly, this product is not something new in the market. The same sort of services is being provided by the smart phones. In addition to that, the smart phones offer my services such as downloading, surfing on the land of the Internet and so on. On the other hand, the Google Glasses offer limited features when it is compared with the features of smart phone. Moreover, augmented reality makes less sense for the consumers as they are filled with more options. Liability The potential liabilities cannot be ruled out. If the product brings some health issues, there will be no way to avoid liability. The impacts of this device on human sight are not unclear. In addition to that, the possibility of this innovation on human brain and its functions cannot be ruled out. There is credible evidence that the use of devices such as Bluetooth and heavy use of smart phones may bring brain cancer. And if it is proven that a person has affected from this diseases which is caused by the Google glasses, there would be no way for the Google management to avoid paying damages to the victims. And if someone loses his eyesight because of using the Google Glasses, a heavy sum of fine would be paid by the Google management. Aggregately, this highlights that the chances of potential liability looks almost certain. Control Head-tilting will not be sufficient if the glasses are to provide services beyond the scope of navigation. In this case, the glasses will either have to convert hand gestures to commands or to recognise and accept voice commands. As a result, it will require fixing of a microphone, which increases another layer of privacy problems along with engineering requirements. Moreover, the glasses will also need to be extraordinarily responsive. This means even by truing head will be not sufficient to bring information pertaining to where one was looking a few seconds age. It will mean that a very fast network connection, something many mobile carriers even unable manage constantly, or displaying little data for the sake of speed. Furthermore, the glasses could run on Wi-Fi networks rather than any cellular networks. As a result, it would limit the glasses to being novelty items. Battery life Battery life continues to hamper the functionality of tablets, smart phones, notebook and computers. Even in these devices, the aggregate weight of the batteries continues to be a major cause of concern for many customers. Heavy weight batteries mostly are not liked by many customers as they become an additional source of burden. The battery attached with the Google glasses may have this pitfall and obviously this would impact the decision making process of the potential buyer of this product. If the attached battery provides a considerable weight, its repercussions would be many. First, the potential buyers may feel it difficult to buy the product. Second, the impacts of heavy battery on human body, mind and eyesight are yet being determined. There is no doubt that the potential customers would be less inclined to buy this product if the Google glasses come with a conventional battery weight. 6- Critical evaluation of the product The marketing section of the Google will observe increase in marketing activities. The marketing personnel will need to put their efforts for the direct and indirect marketing methods through appropriate promotions with an aim of generating sales of Google Glasses. They will be required to carry out Search Engine Optimization (SEO) options for the generating more sales orders. In this regard, the marketing department will not only focus on the local market but also work in the international virtual market. However, the Google is not only in the United States but it has opened its franchises and branches and various countries of the world. The provision of after sales and services cannot be ruled out. There is no way to avoid occurrence of fault in products like this one. The Google management would be required to ensure the presence and constant availability of after sales services to its customers. The existing capacity would experience more pressure as they may be required to gain understanding of the additional new features in the Google Glasses. In order to equip the existing staff working in the after sales services department, the Google management would be required to put some more cost on training and development of the relevant staff so that they become able to provide the services for the repair services of this product. There is no doubt that revenues of Google will also increase. This product is new of its kind in the market and there has been exceptional reception for its promotion. There are a considerable number of people intending to buy this product due to its uniqueness and acceptability. In addition to that, Google has not only the local market to sell the product but also the international market as well. Till this point of time, a substantial awareness has been created about this product; there is no way to believe that the product would not be able to generate attractive sales volume figures in the days to come. Pervasive issues Corporate Social Responsibility Over the past decades, the concept of corporate social responsibility (CSR) has achieved greater significance as a corporate strategy, as an idea and as a practical programme in firms (Cannon 1994; Carroll 1999; Carroll 2008). In addition to that, an array of concepts has appeared from the phenomenon: stakeholder theory emanates from ethics (Freeman 1998, Donald and Preston 1995; Phillips et al. 2003); CSR (Mintzberg 1983). The most commonly admired and used definitions of CSR come from the Commission of the European Communities in 2001: “A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis” as highlighted by Dahlsrud (2008). Google contributed in a series of social initiatives in China. In this regard, Google China Social Innovations Cup for College Students was a nationwide competition aimed to empower China’s youth to become agents of social change (About Us n.d.). In this event, Google provided an opportunity to the young Chinese to participate in the event and provide their part of contribution for the social uplifment of the society. In addition to that, Google donated 2.6 million dollars to the victims and affectees of the 2008 Earthquake hitting Sichuan province in Western China. And at the same time, Google provided 1.02 million dollars free online advertising to earthquake relief efforts and organizations. Diversity Google offers diverse work environment for its workforce. In its headquarters, Google not only employs locals but also extend employment opportunities to deserving expatriates. And Google claims that it has no policy of discrimination and gender inequality and provides equal and fair employment opportunities policy across the organization. However, the closer analysis suggests that Google has employed some expatriates but they are very limited in numbers. In addition to that, Google has a few female workers in comparison with the male workforce. The proportion between male and female workers remains considerably uneven. Innovation Innovation has been a part of Google’s strategic objectives. Google has always believed that it is application of innovation and innovation management that have really transpired the entire company to the highest level of success. For innovation, the company has implanted the most effective human resource strategy in the organization, enabling its existing and future workforce to work in a way to generate innovative results and outcomes. Google has offered its staff members to work according to their schedule and determine their sort of input in the organization. Google claims that it is this policy that has transformed the company from a small entity to a multi-national giant company. 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