Gypsy Fashion Deco Co. The Global Expansion - Essay Example

RESEARCH PAPER Page GYPSY Fashion Deco Co The Global Expansion Table of Contents (Please provide depending on the topics you may wantto include or delete. Thank you.) Background Gypsy Fashion Deco Company used to be a small home enterprise capitalizing on fashion credo "defy" and "deconstruct." The credo, as well as the products, caters to the young consumers aged 13 to 35 that adheres to "individualism" as a way of life, therefore, a way of wearing clothes. The clothes are sourced from branded, well-known and unknown designers and re-designed or deconstructed in a way that makes it stand-out as a definite "single" copy of the cloth. Most of the clients or consumers of these clothes are internet buyers, so, it is necessary that an updated as well as competitive website is maintained by GFDC. GFDC started out as an experimental fashion company already applying its credo. With only a cutter, hi-speed sewer, a contractual bookkeeper and another contractual accountant, it launched a website maintained by an independent web-serving company. Demands grew in about six months so that GFDC had to set up and maintain its own website, as well as cater to its growing clientele. While in its first three months, there were only about two clothe items finished in a day, and there was only a weekly update of website, these have to be changed. Everyday, since it hired additional fashion purchaser, cutters and sewers, as well as a web designer and programmer, there are about 20 solo products made available in the website, so that everyday, the website need to be updated. GFDC was able to cope with this set up until global demands flooded the company. To maintain its ever-growing consumer market, GFDC had to set-up country branches, source out more skilled workers, both sewers and cutters, as well as purchasers and fashion designers in its major product destinations London, New York, Shanghai and the Middle East's Dubai. The internet market had growing demands due to the expansion, and to remain competitive, global delivery and outsourcing became necessary. The management which had grown adept to the small-scale setting is suddenly faced with the dilemma of multifold expansion and to deliver, it has to adopt the enterprise architecture of its information technology system integrating the whole global expansion project into one working dynamic group. Identification of Major Enterprise Architecture Issues Organizational Issues: Organizational, Management, People, Culture Expansion of departments Inter-department cooperation Research and development Data, Information & Knowledge Issues: New system addressing intranet and internet work flow and sharing Standardized design Information Technology Issues: Ease of website update Website potential in attracting consumers Business Process, Policy & Procedure Issues: Corporate strategic plans Extended guiding principles Scope Environmental dynamics Goals and objectives Architecture Issues: Organization structure Business area structure Role players and actors Business rules and commitment Analysis of the Major Enterprise Architecture Issues Schekkerman (2005) acknowledges that enterprise architecture "is about understanding all of the different elements that go to make up the enterprise and how those elements inter-relate," facilitating factual and actual knowledge on the existence of the enterprise and everything that keeps it going. Raines (1997) likewise added that enterprise architecture "is the explicit description of the current and desired relationships among business and management process and information technology. It describes the target situation which the agency wishes to create and maintain by managing its IT portfolio." It was discussed further by Sheckkerman (2005) that by the end of this year (2006), Global 2000 organizations are already expected to have integrated holistic enterprise architecture, enterprise program management, enterprise strategy or planning, and information technology portfolio management. This is in accordance with the Clinger-Cohen Act allowing for the assignment of the Chief Information Officers (CIO) with the responsibility of "developing, maintaining, and facilitating the implementation of a sound and integrated information technology architecture."1 Using an example of the IFEAD organizational chart (Please see Table 1 of Appendix), these are all integrated into a common set of IT management processes under the office of the CIO. Likewise, it has also been expected that 10 percent of EA core teams would already have moved out under the IT organization's management structure and already have direct reporting relationships to either the corporate strategy or corporate change management functions (Sheckkerman, 2005). The report further discussed that the value of integrated architecture is that by 2007, half or 50 percent of Global 2000 enterprises "will move beyond a pure technology architecture focus" and shall be encompassing enterprise business architecture, enterprise information architecture, and enterprise solution architecture so that failure could mean increased pressure in demonstrating business value. 2008 shall see another set of 40 percent of the Global 2000's enterprise architects having primary expertise in business strategy or process engineering (MGR, 2005-2006). While King (1995) suggested the importance of strategic capabilities architecture, he proposed that the architecture provides a guide for the design and development that shall serve as a bridge between the current status and projected future status of an enterprise so that the primary issue or issues are all interconnected with the current and future capabilities of the company. Already, it could be established that "a single capability of the firm cannot provide a sustainable competitive advantage" and that "low cost", "best quality" or "customer service" alone could no longer stand on its own. Pastore (1995) cited Porter's concept of "complementarities" thereby allowing for synergistic outcome that defy easy imitation either by current or potential competitors (Harrison 1996, Pastore, 1995). The overarching framework within the various levels of company development as rated by CIOs (Brancheau et al, 1995) includes Business Architecture, Information Architecture, Data Architecture, Systems Architecture and Computer Architecture. Malhotra (1996) added that "The various decisions related to development of information systems (IS) related innovations need to be considered in a systemic manner within the framework of various architectures. Further, the investments in new IS-related efforts such as BPR, Client-Server Computing, Distributed Databases need to be considered within this systemic framework. The decisions related to strategy, business goals, information needs, data mapping, selection of product- independent systems, and selection of specific hardware and software need to be guided by this framework to ensure maximal effectiveness and efficiency." While Prahalad and Hamel (1990) defined that capabilities are viewed in terms of core competencies, enterprise architecture takes into consideration the business strategy of the firm, its long terms goals and objectives, the technological environment, as well as the external environment with a view of interests of stakeholders, regulatory agencies, employees, customers and stockholders (King, 1978). Schekkerman (2005) pointed out that an enterprise architecture's insight and overview of the firm's success puzzle include the pieces of: Competitiveness Risk Innovation Design Market place Expertise Distribution, and Modeling. Malhotra (1996), enumerated the various issues for consideration from a business perspective as: databases to facilitate surveillance and scanning of the environment use of databases for reverse competitive intelligence data mining for gathering data on customers and competitors data protocols for using EDI for interorganizational information systems or for electronic integration of the firm's business processes with those of its business partners. From the information perspective, it would need to consider issues such as: distributed databases to provide a common view of data across the firm data integrity and security data warehousing that considers the firm level data requirements data modeling tools development tools such as CASE and Lotus Notes databases, data dictionaries, and query languages. Herzum (2003) also enumerated several sets of IT services for medium and large enterprise architecture as follows: Enterprise and product strategy and architecture Architectural, technology, or organizational readiness assessments System-integration, design and implementation Software process definition and rollout Course design or comprehensive curriculums on architecture advanced technologies, and development processes Mentoring on advanced component-based and Webservices technologies. Herzum (2003) further acknowledges medium and large-sized companies invest in EA to support their enterprise-wide cost reductions or their latest IT or business initiatives mostly due to economic downturn. Schekkerman (2005) added that chief executive officers (CEOs) nowadays are quite aware that effective management and exploitation of information technology go hand-in-hand towards business success. And the enterprise architecture shall provide strategic context for the evolution of IT in the enterprise to address constant changes in the business environment. It will also enable well-managed innovation within the company balancing IT efficiency and business innovation so that units may innovate safely for competitive advantage and assuring an integration of IT strategy that permits synergistic approach across the extended enterprise. Below, a global perspective on the Clinger Cohen Act from IFEAD, 2005: Since it is necessary to understand the big picture as Schekkerman (2005) have described, other questions such as the following need be addressed as well: Who is delivering this big picture Who is maintaining this big picture How is this big picture maintained Who is using the big picture How is the big picture used How is the big picture aligned with the technology Upon addressing these questions, it is likewise necessary that other relevant data such as measuring the effects of enterprise architecture be supplied and found out. Schekkerman (2005) also provided for the necessary rules in calculating the effects of EA as follows: Costs and benefits of EA calculated through collection of data about it Define process of collecting EA effected data Focus on 2 key drivers Activities and Assets of which one can calculate costs and benefits Use tools to store and explore data Check the data with the business owners and define the appropriate calculation method. After gathering and integrating all these information, it is then necessary that a proper evaluation takes place. Table 4 (Please see Appendix) provides a guideline for the discussion on the effects of EA. Likewise, a sample framework of metrics and models for measuring the economic value of EA is shown as Table 5 (Please see Appendix) for reference. Another actual detailed Costs and Benefits illustration is shown as Table 6 (Please see Appendix) of 8 Enterprise Architecture initiatives at federal level showing EA's actual governmental effect. Conclusion Most businesses nowadays are either new and bullish backed with competitive business plan and set-up that allows for malleability in a global business atmosphere, or hardcore mainstays that were adept in manipulating reigns to cope with issues and changes. Several multinational corporations found out their own vulnerability the hard way: closing shop. But those who were able to adapt fast and efficiently to the changes brought forth by the demands of a global free market economy proved to be tougher than ever as these companies seem to have taken one step further. Considering the ever-changing and highly volatile global market as well as business environment confronting most modern businesses, that have to adapt to actual changes going on in order to stay competitive and existing, it is necessary that a defined and well-structured plan and action be gathered and integrated to the business system. Enterprise Architecture enters the picture perfectly with its highly competitive nature of anticipating changes in information technology that is affecting most businesses that thrive in global settings. And EA proved to be the core competency used by most MNCs that maintained their market share, if not an ever growing or expanding market share in the global market. While new and bullish enterprises emerge to capture new markets armed with competitive information technology advantage, mainstays have to keep pace with these changes coming from all sides of the business arena. It has been discussed how smaller companies threatened established ones such as Finland's Nokia taking the bulk of Motorola's previous market share, and how it maintained its industry presence. Cost of labor has also been presented as another moving force that shifted industries from the west to the east as India and China dominate business process outsourcing cornering lucrative contracts from MNCs mainly from the west. Enterprise Architecture backed by information technology advances coming in by the minute from all corners of the global business arena is a necessity adaptation of most medium and large enterprises that want to penetrate or maintain a growing market. Global is always backed by information technology, and to keep up with the pace, a solid structure that can only be EA is a must. Recommendations In order to address the expansion at GFDC organizational issues that include organization, management, people and culture, it has to adopt: Global expansion settings Easy and fluid inter-department cooperation Competitive research and development In its Data, Information & Knowledge Issues, GFDC must: Adopt new system addressing intranet and internet work flow and sharing A solid and standardized design that allows global interconnectivity at the speed DSL may provide. Under the Information Technology Issues: GFDC have to ease up website use and update Maintain competitiveness through maximizing website potential in attracting consumers. In GFDC's Business Process, Policy & Procedure Issues: It is advisable to update corporate strategic plans Extend guiding principles to the expanding company setting and market Define and understand global scope Maintain environmental dynamics And redefine goals and objectives GFDC's Architecture Issues may be addressed: By adopting competitive organizational structure Updated and continually reevaluated business area structure Defined role players and actors And structured business rules and commitment. Appendices Table 1 Source: IFEAD, 2005 Table 2 Table 3 Source: IFEAD, 2005 Table 4 Source: IFEAD, 2005 Table 5 Table 6 Bibliography: Brancheau, J.C., B.D. Janz, and J.C. Wetherbe. "Key Issues in Information Systems Management: A Shift Toward Technology Infrastructure. MIS Quarterly. 1995. Harrison, B. "The Importance of Being Complementary." Technology Review, October. 1996. Herzum, Peter. "Applying Enterprise Architecture." Cutter Consortium Enterprise Architecture Advirosy Service Executive Report, March 2003 Vol. 6, No. 3. 2003. King, W.R. "Creating a Strategic Capabilities Architecture." Information Systems Management. Winter. 1995. Malhotra, Yogech. "Enterprise Architecture: An Overview. Brint Institute. 1996. Meta Research Group (MGR). EA Trends. 2005-2006. Pastore, R. "Competing Interests: An Interview with Michael E. Porter." CIO, October 1. 1995. Prahalad, C.K. and G. Hamel. "The Core Competence of the Corporation." Harvard Business Review, May-June. 1990. Raines, Franklin. "Information Technology Architectures." Memorandum. June 18, 1997. Rockart, J. and J.D. Hofman. "Systems Delivery: Evolving New Strategies." Sloan Management Review, Summer. 1992. Schekkerman, Jaap. "How Valuable is Enterprise Architecture For You" Institute for Enterprise Architecture Developments (IFEAD). 2005. Read More