Project Management in Vietnam in the IT/IS Area - Essay Example

Report Reference The report is prepared for the directors of Zeta so as to evaluate and analyze the potential risks of the project, especially in IT/IS area in North Vietnam. Introduction Emerging markets are crucial in the era of globalization and can be defined as the new area with high income and where the demand for the product can be created with relative success. North Vietnam, with its fast developing economy, is a strong emerging market that has tremendous scope for the multinational companies. The report would be evaluating the risk factors, especially in the area of IT/IS that have significant impact on the business negotiations. It would also be analyzing those factors for their role and impact on the company’s marketing policies and strategies as the market strategies need to be tailored according to the environmental conditions of the place. Vietnam has introduced reforms in its economy and had opened its market to foreign competition in 2001. The GDP growth of Vietnam has been significant with growth that can be seen across various sectors as shown in the table (Economywatch) as below: % Of GDP 1994 2003 2004 Agriculture 27.4 22.5 21.8 Industry 28.9 39.5 40.1 Manufacturing 14.9 20.5 20.3 Services 43.7 38 38.2 Discussion To meet the challenges of the contemporary business environment of cut throat competition, effective information system has become essential. Timeliness and efficient delivery of organizational goals and objectives have become intrinsic to the survival of the businesses. Sharing the information amongst the various internal and external linkages, within the businesses so as to exploit the potential and opportunities, has become the need of the hour. Thus, the highly competitive global environment has necessitated the tacit manipulation of the informed choices by the organizational leadership. Porter’s five forces model is highly relevant in the contemporary business environment primarily because it helps to understand the market compulsions of developing economies and facilitates in applying appropriate business strategy (Porter, 1988). The five forces that considerably impact market decision are: entry of competitors; threat of substitute; power of the buyers; power of the suppliers; and competitive rivalry amongst the existing firms. There is huge competition from the neighbouring countries like China, India, Japan etc which are all developing economies and offer huge cut throat competition. Hence, Zeta would need to adopt innovative approach and competitive market strategy to meet the challenges from various areas as mentioned. Indeed, the business dynamics within the developing economy of Vietnam are also undergoing dramatic transformation. The use of information technology and its application would help the business houses to evolve new strategies and analytical packages that would improve their core competencies and production. The application would also facilitate better communication among various inter-related factors thus creating a wider database of new opportunities. ‘Access to information represents the basic precondition for success of a firm’ (Drucker, 1998). Hence, IT and management information system would help to explore the multidimensional scope of improving and improvising business processes to optimize performance of enterprises. Another very important aspect of international business is that the compulsions of the present times require versatility in the work ideology and functioning, thus making it imperative that new skills and strategies are evolved to meet the emerging challenges with efficiency and unmatched proficiency. Goldberg (1996) correctly interprets higher education and says, ‘academic thinking is powerful and usable over long time frames’. Thus, the use of IT/IS in academia is the need of the hour and presents a vast business potential for Zeta. The major challenges in the implementation of the information system were to convince the workers at the regional and grass-root level of the long term benefits of the system and establish effective linkages with their clients and partners to promote computer literacy so that poor nations could access timely information and benefit from the experiences of their better halves. Standardization and integration of computer infrastructure across its office in the world to meet the demands of the changing technology was also one of its key challenges. Last but not the least important is the training and development of the human capital which will become critical for Zeta to gain leverage over their rival in the highly competitive environment of global business setting. According to a recent study, ‘the task of finding, retaining, developing, and deploying a skilled workforce to meet an organization’s objectives is the number one obstacle to revenue growth’ (Julian, 2001). The IT platform would greatly facilitate and provide the workforce with continuous learning environment. The circumstances, therefore, demand strategic controls with flexible approach. Christensen and Raynor (2003) say that companies fail because they tend to follow the theoretical models and assumptions, without making any efforts to alter those models to suit their parameters and value system. The changing dynamics of the global business necessitate formation and incorporation of management strategies that go beyond the realm of individual company’s concern. Thus, planning for distinctive competencies along with considerations for wider ramifications of the socio political environment of the place would give the company market leadership. Indeed, the company promises to prove the relevance of testing new approaches with sound application and implementation of the creative business processes within its strategic goals and visions. Conclusions The changing times have made the businesses more competitive thereby making it obligatory for them, as well as for the working force to become more flexible and swiftly adapt to the changing technologies and products. The current scenario of working populations therefore faces much more challenges than the people who were earlier working in different work environment. Therefore Zeta must strive to develop a comprehensive information system that would promote and accelerate the organizational aims and objectives in a manner that would help it to achieve higher level of efficiency and organizational growth which would offset a competitive advantage over its rivals. Recommendations There is urgent need to evolve new approaches to ISD like MIS (management information system), encompassing various spheres of the business including administration, management, productions, accounts and other areas which are intrinsically linked to produce the desired outcome of efficiency, quality and profits. “We realized that the ‘objects’ of strategy – such as business units, industries, supply chains, customer relationships, organizational structure, and so forth – are held together by a ‘glue’, and that glue is essentially information” (Evans, Wurster, 2000). The study would therefore, encourage usage of MIS that would not only streamline the administration and management of the productions and other related processes but also help to create a wider client base resulting in better outcomes. HR leaders need to be aware that the traditional process of labour deployment is undergoing a fast transformation, both in terms of quality and quantity. Scholars assert that over the past decade and a half, radical new forms of production have emerged with the pervasive expansion of information and communication technology (ICT) (Freeman et al, 1988). The rapidly changing models of work environment has made it imperative for the employees and the job aspirants alike, to keep themselves updated with the knowledge and use of all the latest gadgets and processes which are increasingly replacing the older model of office efficiencies. The technical division of labour has become more jobs specific and highly skilled. The cultural production has multidimensional facet that not only contributes towards creating identities and disseminating information and knowledge but it also helps to establish a unique relationship among individual, promoting understanding. Hence, the hierarchal division of labour that needs to conceptualize and produce such cultural production becomes more sophisticated in its approach and complex in production processes. Thus, new HR strategy must promote and inculcate a climate based on information technology. “… ICT1s seem to offer human beings, and the organisations for which they work, much faster, cheaper and broader sources of data and means of communication to enable them to generate and share knowledge” (Walsham 2001). Internet has redefined the communication with its far reaching implications that have revolutionized the concept of the distance and time thus facilitating wider scope for personal and professional growth. The application of ISD in the various areas like storing and manipulating strategic business information is envisaged to dramatically improve the overall performance. It would also help to identify the strengths and weaknesses of the strategies followed and thereby facilitate improvements. It would help enhance future projections and productivity criteria. The new approach to ISD therefore, has provided a win-win situation for the bank as well as the clients. It is true that ‘one important aspect of aligning the business and IT strategies is understanding the skills that will be required‘(Luftman et al. 2004, p. 237). The organizational setup is structured to optimize the performance outcome and normally is segregated into different departments with people who are expert in the area specific to the needs and requirements of the various department of the organization. The huge tangible and intangible costs, in the form of maintenance of infrastructure and human resource, have inherent tendency of increasing with time and therefore, over a period of time need to be reassessed and pruned to accommodate and suit the changing business environment. The new system would promote a sustainable effort remain cost effective. (1532) Reference Christensen, Clayton M and Ranor, Michael E. (2003). Why hard-nosed executives should care about management theory. Harvard Business Review. September. pp. 67-74. Drucker, P.F. Next information revolution. Forbes, 24 August, 1998. Database: Academic Search Elite. Economy of Vietnam. Available from: [Accessed 9 January, 2010]. Evans, Philip & Wurster, Thomas S. (2000). Blown to Bits: How the New Economics of Information Transforms Strategy. HBS Press. Freeman, C., Nelson, R., Silverberg, G., Soete, L. and Dosi, G.(1988). Technical Change and Economic Theory. Continuum International Publishing. London. pp 38-66. Goldberg, Michael A. (1996). The case against “Practicality” and “Relevance” as Gauges of Business Schools. University of British Columbia. Julian, H., & Boone, C. (2001). Blended Learning Solutions: Improving the Way Companies Manage Intellectual Capital. IDC White Paper. Luftman, J.N., et al.(2004). Managing the Information Technology Resource: Leadership in the Information Age. Upper Saddle River, New Jersey: Pearson Education, Inc. Porter, Michael, E.(June 1, 1980). Competitive Strategy: Techniques for analyzing industries and competitors. NY: Free Press 1998. Walsham, G. (1993). Interpreting Information Systems in Organizations. Chichester: Wiley Read More