State-of-the-Art Technologies - Assignment Example

In today's day and age, companies need to have of-the-art technologies to better deal with s and suppliers in addition to perform business activities in an effective and efficient manner. Web based systems are one powerful source by which companies can achieve the above objectives. This paper identifies the three types of web based systems namely e-banking, online stock trading and web-based manufacturing systems that are widely used by various companies, their pros and cons and the issues and factors that need to be kept into account when companies implement such web-based systems. Introduction Getting closer to the customer and maintaining valuable relationships with members along the supply chain are some of the major issues circulating around the companies at present. Web-based selling, sales force automation and integrated customer service are the technologies and buzzwords that are fast becoming a company's focus point. In addition to that, the customers are busy dealing with so many things at the same time that they don't have time to personally visit physical locations or wait in lines to do their respective duties. They rather prefer doing business with companies that provide them with ease and comfort and as little hassle as possible; these are the companies that have web-based systems. The paper that follows will identify the types of web-based systems and how essential they are for companies to be competitive, retain their market share, satisfy existing customers and attract new ones. E banking is one of the web-based systems that a bank may use to improve its relationship with its customers or suppliers and effectively carry out its business. E banking involves all the banking activities that can be carried out from home, business or while on the road without being at a physical bank location. It is the new way of doing business with a bank and has brought about the hassle free way of conducting business. It incorporates many advantages for the banks as well as the customers. An example of a bank using e banking facilities is the Wells Fargo bank. The customers are facilitated greatly because they can do several activities like: View account balances at any time of the day Receive personal bank account statements Pay bills without the need to stand in queues Download their account transactions on their personal PCs Funds transfer between accounts Can handle their finances while traveling Can perform any bank related activity whenever it's feasible for them. Advantages of E banking are: Real time banking- can be done from anywhere at any time. Saves time- customers don't need to stand in lines to pay bills or personally visit a bank to carry out transactions. Convenience- customers don't need to cramp all their banking activities in the 9 to 5 banking hours; they can do everything at their own convenience. Attract more customers- the banks are able to attract those customers as well who are in remote areas and were previously discouraged by the far away location of the physical bank. Increased customer base- banks offering e-banking facilities are able to enjoy a large customer base and hence a competitive edge over traditional banks. Saving of costs- the banks are able to save the cost of paper transactions and the cost of hiring extra employees to deal with the large amount of customers. Disadvantages of E banking are: Losing valuable customers- if the main server is down and the customers are unable to process their transactions, they'll be dissatisfied and prefer not to do business with that bank the next time and the bank will lose current and prospective customers as well. Maintenance issues- the bank will need to hire expert personnel to deal with maintenance issues and proper handling of the expert systems. Security issues- hackers are a potential threat to both customers and the bank. Higher costs- the banks need to install costly safety systems such as firewalls to ensure safety and reliability of the systems. There are some implementation issues with regard to e banking such as: Access to banks' intranets: the customers are allowed to access the bank's intranet so as to provide a more personalized service to large business customers. Imaging systems: many banks allow customers to view the images of all their incoming online correspondence with the help of a search engine. Securing transactions: the banks need to provide extremely reliable and effective security systems for all the financial transactions taking place. Pricing of services: some banks offer free computer-based banking services while others charge some fee; pricing issues must be taken into account in the provision of services. Online stock trading is another web-based system that a company may use to sell its shares on the net. Offering stocks online has made stock trading simpler, faster, transparent and cheaper for the retail investor. The interested customer just has to log on to the company's website and do all the trading he wants at any time from anywhere and he can also remain updated with the movements in the stock market, without any hassle. Advantages of online stock trading are: There are no busy telephone lines as the customers can do all the trading online There are close to none chances for errors as there is no oral communication between the broker and the customer in a noisy environment of a physical stock exchange. Orders can be placed from anywhere, anytime. There are no brokers involved to push a sale. Investors can find all sorts of free information about specific companies or mutual funds. Disadvantages of online stock trading are: There are security issues even though all the trading sites require users to have an ID and password. A novice investor may make an error in judgment and incur considerable losses since there are no brokers involved to provide relevant and expert advice. Online stock trading does not provide investors with an investment plan and there are a lot of risks involved. Globalization has led to fierce competition in all sorts of industries in recent years. In order to survive, companies must be cost-effective, have streamlined processes and meet the customers' demand on time. This is especially essential for manufacturing firms as they communicate with several business partners along the supply chain to make a product and they must have efficient business processes in order to survive, thrive and grow. The web-based systems allow free flow of information between the customers, manufacturers and suppliers which leads to a close relationship and smooth functioning of the supply chain. The co-ordination between the production, distribution and manufacturing departments also results in less wastage, high-quality products and no shortages. The processes are streamlined and production is aptly met with demand. Advantages of Web-based manufacturing are: Real time information- the manufacturer is able to get instant real time information about the requirements of the customers, supply chain partners and inventory updates. Coordination- the information flow results in greater cohesion between all the departments and results in efficient running of various processes. Shortage prevention- since the departments are working together, the raw materials are allocated appropriately to avoid wastage and production is met with demand so as to avoid shortages or large inventory stocks in the warehouses. Time saving- the processes have become automated and have led to great time saving because all the departments are working together simultaneously rather than one department completing one work and then passing it on to the other department. Labor requirements- as the processes have become automated, less labor is required to perform duties and the companies are becoming capital-intensive. Saving of costs- there is no need to stock large amounts of inventory and hence money tied up because the companies are using just-in-time inventory systems and saving costs. Improved customer satisfaction- short delivery times and correct information about availability of products while keeping control on prices lead to high customer satisfaction and repeat business and hence profits for the company. Disadvantages of web-based manufacturing are: Complexity- the processes may seem very complex to some employees and they will need to be properly trained in order to become comfortable in using the new technology. Maintenance- expert personnel will be required to maintain the hardware and software of systems. Security- in all web-enabled activities, security is a major concern as there are expert hackers around who can damage the entire system of businesses and get hold of confidential information that can result in unimaginable losses. Reliability- the equipments and the software used are sometimes not very reliable and can lead to severe problems and breakdown in the processing activity. A company using a web-based system needs to keep certain factors in consideration namely: TECHNICAL State of the art infrastructure should be implemented and maintained. All the high-tec technology should be implemented. High Security encryption system should be used to identify and verify the customer's identity. The management of the customer's information database should be real time and updated at once. MANAGEMENT The influx of walk in customers and general query calls will be reduced considerably. It will definitely save manpower and time and increase operational efficiency. The empowerment of employees is essential so as to inculcate a sense of ownership and spirit among the employees. ORGANIZATIONAL Adequate training will need to be provided to the staff, organization wide, so that they become dexterous in dealing with customers in a new and different way. Provision of user manuals to the customers and employees so that they become accustomed to the new way of doing business. Literature review The research was conducted to find out the various possible types of web-based systems that a company could use in order to enhance its operations while satisfying customers and suppliers as well. The web-based systems also result in cost saving for the companies and precious time is saved. In today's fast paced environment, time is one thing that everyone is running short of; nobody is willing to give time more than is absolutely necessary to conduct businesses. The research findings led to the conclusion that businesses' sole aim is to satisfy customers and make profits. They will incorporate the latest technologies in their way of doing business so that the customer is happy and continues doing business with them. 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