Vital Features of Digital Economy Driven by Digital Technologies - Assignment Example

Supervisor Assignment 08 December Inter-Organizational Systems Answer Inter organizational system (IOS) is the structurethat smoothen the process of automatic information flow between organizations. It is broadly used the supply chain management. For instance, here the back-end department automatically comes to know what the requirement is and what is to be done by observing the performances of front end department. In the system it keeps the connecting balance between the sale of a finished product and the raw material procured. The chain can be single layered Advantages of inter-organisational system in supply chain management For this kind of system the advantages are many. Like in the case of electronic data interchange (EDI) system. Each and every department of the system comes to know about the development Challenges of inter-organisational system in supply chain management Managing different motives and interests: If the objectives of the links of the chains are different from each other, then it becomes difficult to co-ordinate the process. If the objective of one organisation is to cost minimisation and play in volume and the other one’s policy is no compromise with quality and serving the niche market. Then it becomes complicated. Difficulty due to geographic differences: If the links of the chain are scattered across the globe the logistics becomes tough. There are cases where one component of raw material is ready and another component is not then the work gets stalled Answer-2 Digital economy is economy driven by digital technologies. It is basically Internet economy or ecommerce. In this system, internet or online channels are being used to do business and getting payment. Different kind of transactions takes place. It can be Business to Consumer (B2C), Business to Business (B2B) or Government to Consumer (G2C). Online retail businesses are the examples of B2C model. Organizations like e-Bay or Amazon .com are following the model. Here retail consumers buy goods and services online and make the payment too in online through cards or bank transfer. In the case of B2B the transaction takes place between two business entities. Metal junction is the example of it. When a sovereign makes payment may be salary, pension or other to the consumers directly, that comes under G2C. Due to many reasons the growth of digital economy is taking place. 1990 onwards companies shifted to e commerce Multi-channel: To develop the business, organization wants to tap maximum possible channels. Apart from conventional ways of doing business, they are trying a new avenue. Low cost virtual market: Online market is not the actual market rather a virtual market. It is being loved by the younger generation. As it does not require maintaining the establishment or infrastructure of the shop or the market it requires less cost compared to actual physical market. Accuracy and Quick Response: In the online business intermediaries have a role to play. Neither business owner nor end buyers like to go through intermediaries. As direct communication is taking place, accuracy and quick response is ensured. That saves cost from both ends. Online Banking and International and Multiple-Currency Banking: Online banking has revolutionised the system of online transaction. When the system came where international multiple currency transaction took place it became the whole process further easier. Debit card and credit card have become part regular life. Even today no good organisation is there who does not have a digital wing. For some it is an online selling unit or for some it is only a website .However, Digital economy is the future of the world. As the number of internet user is increasing day by day it is expected that the online business will surpass the physical business volume soon. Answer -3 Client department is one of the most vital departments among organizations. Hardly any organization can survive without servicing their clients. Business always runs with the help of repeat customer. Furthermore it is always difficult to win a new customer rather it is easier to retain the old one. To do that, no better option than client department. Information technology has made the work easy. Through internet, email and telephone clients can communicate with the organization and get the problem addressed. Challenge –High expectation Many a time clients have unrealistic assumption about the product or service. It becomes difficult for the organization to stand before that. Solution -Set expectation level through website and social media Realistic expectation level can be set by describing all the characteristics in the website. There can be Facebook, Twitter, and linked page where people can discuss about their experience regarding their product or service Challenge -Delayed Response Clients always allege that their problems are not getting attention and the solution is delayed. Solution – quick response through mail and phone Through telephones problems can be addressed on a real time basis. If anything is required to be repaired then concerned person can be contented immediately. If one mails to the organization then an automatic mail can be set to reply instantly and followed by a detailed reply. Challenge- Overall Dissatisfaction It is the general tendency that people try to find fault in everything and an overall dissatisfaction developed. Solution- Keeping track by taking feedbacks through phone and mail As a part of after sales service regular phone calls are required to keep track on the feedback of the client. Special care and attention is needed for those who has experienced anything bad, even after that is repaired. Organizations should have a grievance redressal cell and a wing in its website. Answer-4 Decision support system (DSS) is meant to ease organization’s decision making process with the help of computer based information system. It is used in mid and top level management. It can be fully automated or combination of human effort and automation. Executive information system is a subsection of subsection of management information. It is also a specialised form of decision support system. It makes all relevant internal and external information accessible to executives. DSS in Decision Making DSS helps to collect and assemble all related data then analyses it according to which one is required and how it is required. Then it is used as the base of relevant business model. The most used tool to develop DSS is Microsoft Excel. Generally it is put in the dashboard and a report is written based on the business model. According to the outcome of the business model the decision is taken. It makes the decision making process structured. In DSS three models are used Sensitivity Analysis: It gives the result of the model if one or more variable is changed in it. How the change is going to impact the model. What if Analysis: It gives the result for a given situation. Goal seeks analysis: It shows the required input value to get given output. EIS in Decision Making EIS helps to collect data and understand the situation then find out organization’s objective and come with a result fitting into it. Data usually comes from single warehouse. The system helps to take most informed decision. Consolidation: It collects all possible relevant and interrelated information Drill Down: Helps to get detailed information Slice and Dice: Analyse the information form different perspective. Use of DSS and EIS in supply chain management However these tools are externally important in the case of supply chain management. To run the chain it need the help of EIS and collect data then comes the part of dissection then it can be analysed from different angle. Then with the help of DSS decision would be taken after doing sensitivity analysis, what-if and other relevant models. Answer - 5 Case Study--Implementation of New Information Technology for Supply Chain Management Introduction I, being an employee in an organization which has supply chain management, have come up with a technology that shares critical information with buyers. It is unique in the industry and is being successfully. I have to convince the senior management to proceed with it. Problem The basic problem is that the benefits of the information technology is intangible and difficult to measure in dollar terms Solution Convince the management innovation in the technology is the key to survival. And even if the immediate benefit is intangible and non quantitative, the improvement it will bring in the system will be tangible and financially measurable. It is the general trend that companies often do not realize the potential of a new technology. The benefits of an upgraded technology cannot easily be quanti?ed. Lack of awareness and the volume of investment restrict the management to give green signal for that. But one has to understand that information technology is the future of the business, especially in the supply chain management. The fast one is informed the fast he can start work and deliver quickly. If there is any delay, the prices in the domestic and interaction market will change. But the selling price has already agreed upon with customers. So chances are there that the organization has to incur a loss due to it. Our organization mainly produces customized products. So it is not possible make and stock readymade goods. It has to make then and there when ever a sale is book or order is there. As this business is run in multi level supply chains and takes into account different country’s perspective it becomes further difficult. If any person anywhere from the globe fails to deliver his commitment, the final product will not come out. The reputation and goodwill will also come at a stake apart from the profitability issue. But, decision making software and systems help to address the problem. Inter organizational system keeps track and keep informed all the links of the chain. The business world is shifting from conventional ways of doing business like from Management Information System (MIS) Decision support system (DSS) and Executive Information System (EIS) to newer concepts like business intelligence (BI) and analytics by using technologies like Enterprise Resource planning (ERP) and SAP. Days are coming when further new technology will capture the market. More over the competitor organization have also implemented but they have not seen success in a big way. The technology we have in our hand took into account the mistakes others have done. So it will not repeat those loopholes and will be a better one compared to others. If we fail to introduce the technology others will do that capture the entire market. Ongoing Future If the technology is implemented the buyers will be better informed. The immediate benefit is that buyers will be more associated with this organization and would like transact with us. In the case of customer service quality of the service and the delivery schedule will improve. There will be internal improve as well. Overall process of the work and work flow will increase as it will be more error-free. But the actual benefit is in the future. Efficient service will put a positive impact in the market. The improved product and serviced will attract more number of customers and help to swell the business volume. Customers will come to us because of better services. As a result the profitability will increase. Top line and bottom line will increase as a result. Number of sales the figure of profitability and to some extent is tangible and measured in terms of dollar. So here the return on investment in intangible in the short run but in long run it translated into a measurable one. Conclusion Finally the senior management was convinced that to survive in the competitive world, technological up gradation is a must. Though it requires investment initially but it will give good dividend in future. So the implementation of the new information technology in the supply chain management was done. Works Cited Turban, Efraim., Volonino, Linda. Information Technology for Management: Improving Strategic and Operational Performance, 8th Edition, New York: Wiley. 2011 Turban, Efraim., Volonino, Linda., Wood, Gregory R Information Technology for Management: Advancing Sustainable, Profitable Business Growth, 9th edition. New York: Wiley. 2011 Read More