Increasing the hardware Essay

Abstract As any business grows, they are always looking to expand all aspects of  their business. With this expansion, the cost of increasing the hardware and software needed for the expansion is also increasing. Many companies are looking for ways to keep or even streamline the hardware they currently have yet expand. They want a way to have their customers log into their site and go to a central server but want all the necessary files for the customers to be stored elsewhere which will increase the speed of the server. To be successful in today’s market, many businesses are realizing the necessity of using technology. As more and more companies use more technology, their IT infrastructure cannot handle all the traffic due to the lack of available server/storage space needed to meet the increasing demands of the customers. Whether the business is small or a large corporation, finding the needed available server/storage space is becoming an ever increasing problem. Trying to solve th is problem, many businesses have begun to look for an alternative solution to store many of their business files away from their own main computers, this is called cloud storage. Think about how you have an external hard drive that you use to store files away from the hard drive of your computer, the cloud storage works in the same way. The only exception is that you do not own the external storage, you rent the storage space from someone who takes care of all the maintenance and updating of the site. JPCexpress has been operating for many years with their own internal storage capabilities and now are in the market to expand their business. The current server space that the company owns is being bogged down by the amounts of data it needs to use daily so they need a newer solution to their storage problems so that they can continue to offer their production facilities and customers the best possible service. Next day service sets this company apart from other online businesses and I will show what needs to be done to help then continue to accomplish this with a simple server space solution. Company Background JPCexpress is an innovator in the online printing industry. They use advanced technology that allows the customer to place an order and have it printed and delivered the next day. There are many online printing organizations, but JPCexpress was one of the first that offered next day delivery if you place your order by a certain time the day before. The  company was founded in 2001 that offered printing as a service so that the customer has access to all the company printing business solutions allowing them to place their orders right on the company website. The customer does not have to invest any monies into their own printing infrastructure and the staff that would be needed to maintain it. JPCexpress offers its services to many different organizations of all sizes that do not want to hassle with having internal printing capabilities. Due to the customer being able to upload all their information to help us perform the needed services, this takes up a lot of storage space. JPCexpress operates three huge warehouses that are strategically placed across the country. Within each facility, they house all the hardware and software needed to conduct the printing business along with all the hardware and software needed for the IT side of the business. The customers are able to use our site as their own so they know they will get exactly the product they want. Our teams of engineers are always introducing new services and solutions for the customers and they have them integrate the new technologies into our platform monthly. The reason we have the fastest turnaround time for online printing companies is due to the fact that our customers are able to use our site as their own to make and order their printing needs. We have become a leader in the online printing world because of our customer service, ease and speed of our online services and the fact that we guarantee you will have your order the next day if you meet the daily cut off time. Discussion of Business Problem During times of peak use, the amount of data used is overwhelming. JPCexpress is a top of the line printing business but due to our storage capabilities, we do have issues that will slow the service to our customers. This is an issue because the timing of the slowness (can prevent customers from making the cut off time for next day service) which directly relates to customer service and customer satisfaction. The main issue is that when there are many users on the system, it slows down and prevents ease of use. I think that JPCexpress could benefit from emerging technology as cloud computing or could storage. Increasing our storage capacity would prevent the system from slowing down and loss of data. Any IT department within any business always needs new ways to increase the capabilities of their current infrastructure without investing in new hardware, new licensing requirements  or having to spend the time and monies to train and hire new personnel. Due to the increasing amounts of data needed by our existing customers and the addition of new customers, members of our IT department has to manually go into the system and get rid of old files and clear any redundant data. This happens when our system becomes slow which slows the use of our production tools and this all adds up to a loss in the amount of work that can be performed. If the organization was to use cloud computing, the problem of overwhelming the system could be avoided. Cloud computing encompasses any subscription-based or pay-per-use service that, in real time over the Internet, extends its existing capabilities (Gruman, 2012). Use of the cloud could begin at our centrally located facility for trial purposes until we see if using it would be beneficial to both the customers and to our stockholders. High Level Solution For many businesses, having enough storage space to hold all the information they have acquired from their customers and the working of internal business practices is a real challenge that becoming increasingly harder. Many organizations have turned to deleting huge amounts of data to open up room for the new data they need to stay updated and to continue to provide their customers with excellent customer service. Many businesses have turned to cloud storage to help relieve this problem. Cloud storage acts as a centrally located server whose main purpose is for storage only. Using cloud storage, each of the three facilities can store and retrieve files as they are needed without investing in more infrastructure. When deciding to move to cloud storage, a few concerns will be raised. Some people think that cloud storage is less secure than local data centers and this is not true. . When the cloud host that IT manager work together the cloud host will encrypt the data and the business w ill store the keys to that encryption on it local network (Marsh, 2013). Many cloud providers offer dashboards to the client so they can log and manage the company’s data center. They can add more storage if they need and all this is completed without adding any equipment to increase storage. I have checked two of the major providers of cloud storage for pricing and flexibility. Amazon S3 is 99.9 percent reliable and it is scalable to fit your current business needs and also can be changed to fit your future needs as well (Amazon Web  Services, 2013). All data going into this cloud storage is encrypted for data security and you can decide what region you want to have your data stored in. Another excellent benefit is that once the data is entered into the cloud, it is automatically backed up in case one system fails you will lose your data. All data uploaded is for free but they do charge for each GB of data that is transferred or downloaded from the cloud. This seems pretty reasonable since we will maintain a central server with only our servers logging into the cloud to retrieve the customer information. Google cloud storage offers secure and safe cloud storage. It has configurable security controls and the cloud is flexible so that you can get what you need now and later on if you need more storage you can always add more (Google Cloud Storage, 2013). Looking between the Amazon and Google sites, they both offer the same types of features but I could not find any data that says how reliable the Google cloud is. Also, checking the pricing from the two sites, it appears that Amazon is slightly cheaper than Google is. Moving to cloud storage is a viable option to help solve latency issues and website lag due to the enormous amounts of data being transmitted over our site. Benefits of Solving the Problem Solving this problem using cloud storage will increase the speed of the servers the customers use to conduct their business. The increased speed of the server will also take the customers’ orders quickly and get them to the desired printing facility to ensure they make the cut off time for next day delivery. Implementing the cloud storage solution at only one facility will allow the business time to see if the cloud is a viable option to investing countless monies in upgrading our current facilities. Using the cloud will save us money because of the increased speed at which the customers can use the system, the speed in processing the orders and also save us money because we will not have to hire additional personnel to maintain additional hardware or pay for licensing for additional software. In an article written by Joe McKendrick for Forbes magazine, he talks about the benefits of cloud computing for a business. Cost reduction – using cloud as storage lowers transaction costs, minimizes the investment in hardware and software and also reduces the need for a huge IT staff or for adding additional personnel to manage you IT infrastructure. Cloud as storage is scalable so  you can take as much or as little as you need and then increase as your needs increases. You only pay for what you use; most uploads are free so you pay when you download data from the cloud. Businesses of all sizes will have access to more up to date technology while using the cloud. Letting someone else manage your IT for you reduces the need for expensive licenses or buying software or hardware. Business/Technical Approach Conducting thorough research before deciding which provider of the cloud services we will go with. When a cloud provider has been chosen, our CIO and his team will work with the provider to ensure we get what storage we need and also to ensure the security of the files we will move to the cloud for storage. Only have one facility use the cloud as a test case to see if it will improve the speed of our system and also to see how reliable the cloud services are. Conducting technical inspections using our IT department will ensure that we are keeping control on what goes into the cloud storage and also to help us determine if the cloud is useful. When we move older files from our servers into the cloud, we should see an immediate improvement in the speed of our system and also improvements in order processing and order filling. The IT department must ensure what files are being put in the cloud and that they are being encrypted for increased security. Also inspecting the files in storage routinely to ensure the data is not being corrupted. To ensure we do not lose any of our major customers, we will move only the older files to cloud storage to increase space on our servers. When we have determined (Senior management/CIO approval) that the cloud is a viable option to investing in hardware/software, we will move more files to the cloud in an effort to free up more space which should increase the speed even more. Also, once the one facility has proven more efficient and profitable, we will migrate another facility to cloud storage. There is no set timeframe for this to happen, we just want to ensure the cloud is meeting our needs in the ways we want it to. Using the current IT staff at the first facility to check usage and speed of the system will help us in our decision whether to stay with the cloud or invest in our own infrastructure. Business Process changes Implementing cloud storage will allow the company to store more files  without causing the system to run slow which increase productivity. This is going to be a big move for JPCexpress in the way they do business at each of their facilities. We will use the current IT department at each facility to maintain the data stored in the cloud and to ensure that only the less used files have been migrated to the cloud until its reliability has been proven. There will be one central location for all the internal storage of customer information. When the customer logs onto the site with his credentials, they will log onto our central server who will access the cloud and pull their information off for the customer to use. When the order is placed, the server will then send that order to the printing facility closet to the customer location for fast, reliable completion of the order. When the cloud is implemented for use by all facilities, the IT departments at those facilities will be reduced . Setting up a team to continually monitor the cloud for reliability and security will also be accomplished. Senior management with the CIO will have to make a decision on implementing other facilities and how that will be accomplished. Technology or business practices used to augment the solution After thorough research I have decided that implementing cloud storage is the best solution to help fix the problems at JPCexpress. Moving the files to the cloud will free up valuable space which will increase the processing speed of our current servers. The IT department will maintain our current servers and monitor how effectively the cloud is to the company. The IT department will also routinely perform inspections on our equipment to see how well it is working and also to ensure what files are being moved to the cloud. Having someone compile quarterly reports on how well the cloud implementation has helped the speed of the system and to see if it truly has increased the speed at which orders are shipped. We will not have to hire additional personnel to accomplish any of these tasks; we will use the current staff at each facility. This alone will save the company huge amounts of money. Conclusions and overall recommendations The current system that JPCexpress has, it is not capable of handling the enormous amounts of data that goes through it during peak operating times. JPCexpress will have to upgrade their current hardware/software or find other alternatives. Cloud storage is just that alternative solution.  Moving files to cloud storage will free up much needed space that will allow the system to run faster during peak operating times. Using the cloud offers different ways that it can be beneficial to the company. Using cloud instead of investing in new hardware/software to upgrade our current system will save on ongoing support, maintenance and upgrades and having to hire additional IT staff to work the new system. When switching to the cloud we will replace all the up-front expense of investing in a new system and replace that cost with a manageable monthly subscription cost. David Linthicum discusses why companies should invest in the cloud. All the upgrades and maintenance are handled by the cloud host. The software will always be current without the company having to pay for expensive licensing. The fear of cloud storage’s security being an issue is being proven invalid. Cloud providers have been working hard to prove how secure their storage is. Cloud based companies offer the highest level of customer service because they cannot afford to lose customers because they are unsatisfied with the service and with all the blogs out there, a bad review could mean countless lost customers. Every data storage center or data processing center has some downtime at some point but many cloud providers offer higher than a 99 percent reliability rate. High level implementation plan * Conduct thorough research to ensure the right cloud provider is selected * Work with provider to ensure we get the security we need and also the plan that fits the amounts of storage needed * Schedule when to transition to the cloud storage * Determine what files will initially be moved to cloud storage * Reroute all traffic from one facility to the other two * Shut down one facility and transition to the cloud * Once all files are transferred to the cloud activate the cloud * Bring the shutdown facility back on line * Test the new configuration for speed and user ability * Monitor the cloud for potential problems * Produce monthly reports as to the speed of the facility and improvements in the processing of orders Summary of Project JPCexpress’ system runs slow because each facility has access to all the files that are stored on the server. The storage problem can be handled either by investing countless monies into a new upgraded data system or to use cloud storage to alleviate this problem. Business processes are slow due to the servers being bogged down during peak hours resulting in delays in processing and delivery of orders placed by the customers. When we transition to the cloud storage we can increase the processing speed which will increase the speed of the orders being printed and then shipped to the customer. This will save on time and money because we will not have to pay additional shipping costs when we can’t meet the next day delivery. This is not meant to be a permanent solution but will benefit the company until we can determine if this is the best solution. References Amazon Web Services. (2013, Oct 1). Retrieved from Amazon Simple Storage Service (S3): http://aws.amazon.com/s3/ Google Cloud Storage. (2013, Aug 1). Retrieved from Google Cloud Platform: https://cloud.google.com/products/cloud-storage/ Gruman, G. K. (2012, Feb 2). What cloud computing really means. Retrieved from InfoWorld: http://www.infoworld.com/d/cloud-computing/what-cloud-computing-really-means Linthicum, D. (2013, June 25). Cloud adoption’s tipping has arrived. Retrieved from InfoWorld – Cloud Computing: http://www.infoworld.com/d/cloud-computing/cloud-adoptions-tipping-point-has-arrived-221335 Marsh, J. (2013, Oct 3). The Top 5 Myths about Cloud Storage. Retrieved from Formstack: http://blog.formstack.com/2013/top-5-myths-cloud-storage/ McKendrick, J. (2013, July 21). 5 Benefits of Cloud Computing you aren’t likely to see in a sales brochure. Retrieved from Forbes.com: http://www.forbes.com/sites/joemckendrick/2013/07/21/5-benefits-of-cloud-computing-you- arent-likely-to-see-in-a-sales-brochure/

The 8 Best LSAT Prep Books of 2019

The Struggle Of Finding A Job - 1568 Words

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This ongoing cycle of â€Å"to get a job, you need experience and to get experience, you need a job† (Abel, J. R., Deitz, R . 2014) brings by even bigger issues for the student. Scholars who go through this process of job rejection and hopelessness often experience anxiety, insecurity and stress. Emotional distress is an issue that is on an even larger scale of the struggle of finding a job. Once a student is rejected, they lose confidence and dedication. They start doubting their sense of self and their capabilities. The uncertainty of our future can lead to more anxiety and strainShow MoreRelatedThe Importance Of College Education756 Words   |  4 PagesThere are roughly 4,140 colleges/institutions in the United States today as confirmed by infoplease.com and job options are endless. These institutions offer people a â€Å"gateway† to achieve long term success. In today’s society, there is the ongoing debate on whether or not college is worth it. 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The Effectiveness of the Legislation and Policy Reforms in...

The Effectiveness of the Legislation and Policy Reforms in Practice In this essay I will set out to identify key legislation, which has impacted and shaped the lives of my particular client group, adults with learning disabilities. Learning disabilities can be hard to define, but it is widely accepted that impairments in the ability to read, write, spell, speak or perform any mathematical calculations can lead to a diagnosis of learning disabilities. The campaign group Values into Action defines learning disabilities as â€Å"A disorder in one or more of the basic cognitive and psychological process involved in understanding or using written or spoken language†. I will give an overview of service†¦show more content†¦There was no welcome for disabled people in the community†. (Slater, C. 1998 p. 3). Segregation of these individuals meant that they were placed in large institutions, often in remote and rural areas of the country. Lack of good transport links meant that it was difficult for people’s family and friends t o visit them. People with learning disabilities were often detained in these facilities for years under the 1913 mental deficiency act. This act allowed for people certified as â€Å"mental defectives† to be institutionalised against their will. This attitude was consistent with most of societies at the time. People believed that these so called â€Å"mental defectives† were highly promiscuous and were predisposed to leading a violent and criminal way of life. However, in his paper, â€Å"A History of Care for People with developmental Disabilities† John Francis stated, â€Å" not all was blinded by the conventional wisdom of the timesâ€Å". Josiah Wedgwood, a radical MP from Newcastle-under-Lyme, criticised the legislation as the work of eugenic cranks, and was particularly critical of its attack on feeble-minded women†. 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Origin of the Flute Free Essays

Origins of the flute date back to the stone age. Known as the first ever wind instrument, most of the flutes were end blown flutes and looked like our modern day recorder. What could be considered the first flute was found in China and was called the â€Å"ch-ie†. We will write a custom essay sample on Origin of the Flute or any similar topic only for you Order Now The egyptians and Sumerians were the first to add finger holes so that we were able to produce different notes. Before then, it was made of animal bones with a carved out embouchure. Ancient greeks also played the flute (an end blown flute) however it was known as the instrument of the common man and was often looked down upon. During the fall of the roman empire, the flute seemingly disappeared from the west (Europe). It is likely that the flute was brought back to Europe during the Byzantine Empire from Asia where it’s traditions are longstanding. It was only during the 16th century (renaissance era) where the prototype or ancestor of the flute that we know of today was widely used. Until the 18th century, flutes were referred to pipe instruments that were both horizontal and vertical. A German court orchestra flutist by the name of Theobald Boehm presented what would be the modern day flute in 1847 at the Paris exhibition. He incorporated ideas from his colleagues and most notably, from Frederick Nolan who made use of the ring keys in 1808. In 1832, he (Theobald Boehm) built a flute based on logical acoustic placement instead of the easiest fingering. He also linked certain keys to each other. This lead to a new fingering that ended up being easier than its last. In 1847, felt pads were added to prevent leaking air, pin springs were added, the shape of the embouchure was changed and the flute was made of silver. This new flute was well received in the USA, France and England. However, in Germany, Russia and Italy, flutists were close-minded and didn’t want to accept the change of fingering despite the fact that the new design won many awards. Eventually, Boehm’s flute came into common use and has undergone minimal changes from then on. The flute, or what was called the flute back then, has been used since the middle ages. Used for the court and sometimes the military, it was often paired with the drum. During the renaissance era different ensembles were commonly heard together. The â€Å"flute consort† which consists of three different sized transverse flutes (horizontal flutes, like the ones today) and the â€Å"broken consort† which was made of the viola, lute and flute. During the end of the 17th century, solo flute works began to rise in popularity along with the excessive ornamentation of the baroque style. How to cite Origin of the Flute, Papers

National Security Strategy Comparison free essay sample

The US and Europe have different responses to the modernization of warfare from traditional (ships, armies, tanks, aircraft) to â€Å"asymmetrical† (terrorism, cyber-warfare), largely from differences in geography: With the notable exceptions of Pearl Harbor and the World Trade Center, our enemy threat has been thousands of miles away, while Europe has seen two bloody â€Å"world wars† and acts of terror committed right on home soil. However, for the purposes of this paper, I will focus on religion and ethnicity/nationalism, and how these two factors affect strategic culture. Culture is important. It defines what’s important to a group, or nation. It emerges in stated doctrine, laws, strategy. It defines who we ARE. There are common views, interests, priorities, and verbiage in both Security Strategic documents. Major powers are at peace. The world economy has grown; globalism is increasingly important. We must reduce dependency on foreign energy. We have a commitment to alliance with each other (US and Europe) via NATO (Obama, 2010, 1-9) (European Security Strategy, 2003, 2-14). We will write a custom essay sample on National Security Strategy Comparison or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page NATO has made a strong tie between the US and Europe since it was created to contain the Soviets, integrating Europe and the United States politically and militarily (Friedman, 2011, 1). In fact, â€Å"For any kind of military planning and operations with regard to Russia, the Europeans will prefer to act through NATO rather than the EU. † (Valesek, 2008, 1) In contrast to the above commonalities, the United States document, while acknowledging that â€Å"no one nation—no matter how powerful—can meet global challenges alone†, repeatedly shows glimpses of â€Å"Nationalist† overtones with statements such as, â€Å"Our country possesses the attributes that have supported our leadership for decades—sturdy alliances, an unmatched military, the world’s largest economy, a strong and evolving democracy, and a dynamic citizenry. † (Obama, 2010, 1-9). The European document, on the other hand, openly and repeatedly calls for â€Å"Unification† and â€Å"Cooperation† (European Security Strategy, 2003, 1-8). The United States can draw from European religious history and ethnic origin, which gives it some cultural similarities. At the same time, the birth of our nation was so much more recent, and so dramatically different from the beginning of European history, that it’s no wonder there are fundamental differences in culture. Even before the Declaration of Independence (â€Å"God† and â€Å"truth† referenced) or the US Constitution were drafted (â€Å"freedom of religion†), early America was rooted in Christianity. The first Pilgrims fled religious persecution in Europe. Christian doctrine has been quoted in speeches given by American leaders from the beginning (Governor John Walthrop, Massachusetts Governor, 1630), to recent/present-day Presidents (Reagan, GW Bush, Obama), The United States has been referred to as something â€Å"different†, a shining example all the world to see and emulate, a â€Å"city on a hill†. (Walthrop, 1630, 1). America, from its beginnings to today, while welcoming diversity, continues to be a predominately Christian culture, allowing for religious overtones in national documents (mostly visible through reference to â€Å"values†, and â€Å"truth†). Europe on the other hand, in its challenge to unify the 27 countries that form the European Union (Rosenberg, 2011, 1), must tread lightly so as not to alienate or anger any portion of the contemporary combination of Christian, Muslim, and â€Å"Secular† cultures (Rubenstein, 2011, 1). Both the US and Europe are ethnically and racially diverse. Many marvel at the ability to retain direction and focus in the face of such diversity. Early America molded immigrants into a â€Å"melting pot†, mixing historical roots into a soup that became distinctly â€Å"American†. Nowadays, the preference is to hold on to ethnic differences and describe the result as a â€Å"mosaic† or â€Å"salad bowl† – separate pieces that, when viewed as a whole, create a larger picture (Branigin, 1998). In spite of this recent shift to retain ethnic individuality, America seems to successfully categorize this into its frontiersman â€Å"rugged individualist† mentality, yet in shunning division along racial lines, manages to successfully embrace all groups into a sense of singular â€Å"nationalism†. Europe on the other hand, struggles to balance 27 nations, each with their own sense of nationalism, without giving significant preference to any one culture. The ultimate impact of these religious and ethnic/nationalistic differences is that, yes, the US National Security Strategy reads differently than the European Security Strategy. The variance in background results in different wording and stance, different reasons for why we do what we do, and the desired result. This can cause misunderstanding, and even distrust between these two great entities. However, it’s important to conclude that overall, we BOTH have the same ultimate intent: a continued commitment to trans-atlantic relationship, globalized economy, reduced dependency on foreign energy, and, most importantly, peace and security to our world (Obama, 2010, 1-9) (European Security Strategy, 2003, 2-14). In conclusion, many world researchers (including Samuel P Huntington in his map of â€Å"The World of Civilizations†), when identifying cultural categories in the world, group the US, Canada, Greenland, Western Europe, Australia and New Zealand as â€Å"the West† (Huntington, 1997, 26). Due to the emphasis on strong religious roots, belief in right, manifest destiny, and ethnic diversity in the United States, our stated objectives and self-identified role in the world is unique. However, overall, European US strategy and culture are not so remarkably different. BIBLIOGRAPHY Branigin, William, â€Å"The Myth of the Melting Pot: America’s Racial and Ethnic Divides. Immigrants Shunning Idea of Assimilation† (Washington, DC: Washington Post, 25 May 1998), http://www. washingtonpost. com/wp-srv/national/longterm/meltingpot/melt0525a. htm European Security Strategy, A Secure Europe in a Better World, (Brussels, 12 December 2003), 2-14 Friedman, George, â€Å"The Crisis of Europe and European Nationalism† (Austin, TX: StratFor Global Intelligence, 13 September 2011), 1, http://www. stratfor. com/weekly/20110912-crisis-europe-and-european-nationalism Huntington, Samuel P. , â€Å"The World of Civilizations† The Clash of Civilizations and the Remaking of World Order (New York, NY: Touchstone, 1997), 26-27 Obama, Barack, National Security Strategy (Washington, DC: Whitehouse Archives, 2010), 1-9 Rosenberg, Matt, â€Å"European Union Countries† (About. com, 09 December 2011), 1, http://geography. about. com/od/lists/a/eumembers. htm Rubenstein, Richard L. , â€Å"Islam and Christianity: The Roots of Europe’s Religious Identity† (New English Review, December 2011), 1, http://www. newenglishreview. org/custpage. cfm/frm/102790/sec_id/102790 Valesek, Tomas, â€Å"Europe’s Defence and its New Security Strategy† (Center for European Reform Bulletin: London, England, Dec 2007-Jan 2008), 1, http://gees. org/documentos/Documen-02705. pdf Walthrop, John, â€Å"Modell of Christian Charity† (Massachusetts, 1630), 1,

An exploration of the reason organisations adopt information systems strategy The WritePass Journal

An exploration of the reason organisations adopt information systems strategy INTRODUCTION An exploration of the reason organisations adopt information systems strategy INTRODUCTIONINFORMATION SYSTEM STRATEGYREASONS OF INFORMATION SYSTEM STRATEGY1. Operational excellence2. New products and services3. Customer and supplier Intimacy4. Competitive Advantage4.1) Porter’s Competitive Forces Model1. Rivalry among existing firm2. New Entrants in market3. Substitute Products and Services4. Customer’s power5. Supplier’s Powers4.2) Porter’s Generic theory 1. Cost Leadership2. Product Differentiation3. FocusMultiple Methodology FrameworksTop-downBottom-upInside-OutFlaws in Earl’s MethodologiesExternal Drivers that Influence IS Strategy1. Competition1.1)   YANSHA Leans on IS to Stay Competitive2. Deregulation2.1) 7-Eleven Japan Company3. Changing nature of Customer3.1) KROGER COMPANY3.2) BARNEYS NEW YORK4. Emerging technologies4.1)   Sainsbury5. Transformation of Business Enterprise5.1)   World BankBibliographyRelated INTRODUCTION The information systems play a critical role in managing market logistics, especially computer, point-of-sale terminals, uniform product bar codes, satellite tracking, electronic data interchange EDI, and electronic funds transfer EFT, these developments have shortened the order-cycle time, reduced clerical labour, reduced the error rate in documents, and provided improved control of operations. They have enabled companies to make a promise such as â€Å"the product will be at dock 25 at 10:00 am tomorrow,† and control that promise through information. Keeping in view of above significance of information system, the report has been designed to explore and outlined the reason of organization adopting information system strategy and what is information system strategy. Also using multiple methodology frameworks that assist in devising IS strategy. At the end of this report the six external drivers are listed in connection with real world example to understand how they influenced on IS strategies. INFORMATION SYSTEM STRATEGY The definition of IS strategy is formulation of approaches and planning needed to deploy information systems resources to support organizational strategy. The definition of development of information systems strategy is usually encompasses the areas of how information systems will be used to support an organization’s strategy. Support means creation of strategic of IS with organization strategy. Impact implies a role for IS in generating opportunities for an organization to gain competitive advantage. A strategy which covers both these facets is that of Dohertty et 999), who describe IS strategy development as The IS strategy is a process of identifying a portfolio of computer-based to be implemented, which is both highly aligned with corporate strategy and create an advantage over competitors. An information systems strategy brings together the business aims and understanding of the information needed to support those aims, and the of computer systems to provide that information. Irrespective, of any definition the main theme of information system is to establish strategy to provide best and timely service to their consumers in order to increase the wealth of shareholders. The emphasis of information systems strategy is on delivering a portfolio of appropriate software tools and systems that support the future direction of an organization and achieve advantage for the organization (Strategic objectives). Furthermore, the IS strategy also determines the quality of services delivered end-users. (BODDY, BOONSTRA, KENNEDY, 2002) REASONS OF INFORMATION SYSTEM STRATEGY The reasons organization heavily invest to generate its information system is to achieve six important business objectives. These objectives can be outlined as Operational excellence New products/services Business model Customer and supplier intimacy Improved decision making Competitive advantage And survival 1. Operational excellence The ultimate objective of every organization is to maximize the wealth of shareholders. The information system provide efficient mean to optimize the production and operations capability for the business. Also some time it needs to change the way organization conducting its business and management attitude. There are many success stories of those who plan strategically to implement information system and bring fundamental results due to this implementation. For example, Wal-Mart being as a largest retailer gains sales more than $348 billion in sales during 2007, which was 1/10 of total retail sales in US. The Wal-Mart achieved that hallmark by linking digitally its retail store system with the suppliers, so when the customer purchased items, the bar code link identified the suppliers about outflow and demand of certain product and suppliers timely replenish the stock. 2. New products and services The information system enables organization about the trend of new product or services. The demand can be evaluated of competitors product and then it is matched with the market to assess there is any need of copy cat product. Such as the music industry is no longer like it was in 2000. The exuberant demand permits the Apple Company to innovate new products with different styles. 3. Customer and supplier Intimacy The customers intimacy can be gauged by their frequency of repurchase, the often they come to buy the goods or receive the services the more they generate revenue for the organization. The suppliers relationship can be evaluated in the same way, if there are few suppliers and all are given confirm order or tie them with contract, the more they will deliver quality raw materials. Take the example of hotels business, they are using computers to keep track of guests preferences, such as their preferred room temperature, check in time, frequently dialled telephone numbers, and television programs, and store these data in a giant data repository, individual rooms in the hotels are networked to a central network server computer so that they can be remotely monitored or controlled. When these guests arrived to the hotel, the system automatically changes the room conditions, such as dimming the lights, setting the room temperature, or selecting appropriate music, based on the customer’s digital profile. Through, extensive use of IT, hotel can carry out their customer profitability analysis and can adequately determine those customers that are providing high revenue. 4. Competitive Advantage When organization outperform its competitors in terms of operation, new product development, services, and establishing business model, customer intimacy and last but not least in decision making process, then they are well ahead from their competitors. Through establishing IS strategy many organization prominently Toyota successfully eliminate waste, adopt continuous improvement, and optimizing customer value. The IS help to build effective supply and lean management system. Let discuss in detail that crucial aspect of IS strategy, The models which will help us to how to determine and evaluate of competitive advantage in terms of IS strategy’s are Porter’s Competitive Forces and Generic theory. 4.1) Porter’s Competitive Forces Model The most widely used mode for understanding competitive advantage is Michael Porter’s Competitive forces model. This model provides a general view of the firm, its competitors, and the firm environment. These are Rivalry among existing firm New Entrants in market Substitute product in market Supplier’s Power Buyer’s Power 1. Rivalry among existing firm All firms share market space with other competitors who are continuously devising new, more efficient ways to produce by introducing new products and services, and attempting to attract customers by developing their brands and imposing switching costs on their customers. 2. New Entrants in market The new arrival in market often gets kick start its business using several of IT and IS help. In mature market, when there is already fierce competition going on the tool that new entrants can use to get itself introduce to the customers are gaining economy of scale by spreading its fixed cost to the number of units or/and adopting learning curve. The state of the art designed IS can monitor the movement of learning curve that will help management in their decision making process. 3. Substitute Products and Services In a competitive market, there are several substitutes product each addressing different customers market need. New technologies create new substitutes all the time. To make the product more distinct and attractable organization need often to change its features and packaging to keep the product up to date. 4. Customer’s power The theory’s regarding customers retention has been getting enhanced day by day. The new theory related to customers are customer relationship management, which emphasis on keep the existing customers rather than deploying resources to attract the new one. In that sense, the power of the customer grows if they can easily switch to a competitor’s products and services, or if they can force a business and its competitors to compete on price alone in a transparent marketplace where there is little product differentiation, and all prices are known instantly through internet. 5. Supplier’s Powers The supplier’s power has huge impact on organization profitability. If there are few suppliers operating in the market the power of suppliers might be high and they would be in the position to convince the organization with their terms and condition. However, if there are many or diversified suppliers in the market, the greater control organization would have to exercise over suppliers in terms of price, quality, and delivery schedules. For instance, manufacturers of laptop PCs almost always have multiple competing suppliers of key components, such as keyboards, hard drives, and display screens. 4.2) Porter’s Generic theory There are four generic strategise, each of which often is enabled by using information technology and system: low-cost leadership, product differentiation, focus on market niche, and strengthening customer and supplier intimacy. These are Cost leadership Product leadership Focus 1. Cost Leadership The use of information system to achieve the lowest operational cost and lowest prices is goal of almost every organization. The classic example is Wal-Mart. By keeping prices low and shelves well stocked using a legendary inventory replenishment system, Wal-Mart became the leading retail business in the United States. Wal-Mart’s continuous replenishment system sends orders for new merchandise directly to suppliers as soon as consumers pay for their purchases at the cash register. Point-of-sale terminals record the bar code of each item passing the checkout counter and send a purchase transaction directly to a central computer at Wal-Mart headquarters. The computer collects the orders from all Wal-Mart stores and transmits them to suppliers. Suppliers can also access Wal-Mart’s sales and inventory data using web technology. Due to efficient use of IS by Wal-Mart they do not need to maintain large inventories of goods in its own warehouse, which cause greater cost of order and holding the inventories, because the system replenishes inventory with lightning speed. 2. Product Differentiation Those organizations that are charging high prices for their product need always modify their product to keep the product in the eyes of customers. For instance, Google continuously introduces new and unique search services on its web site, such as Google Maps. By purchasing PayPal, an elector nice payment system in 2003, eBay made it much easier for customers to pay sellers and expanded use of its auction marketplace. Apple created iPod, a unique portable digital music player, plus a unique online Web music service where songs can be purchased for 99 cents. Continuing to innovate, Apple recently introduced a portable iPod video player and music-playing cell phone. Manufacturers and retailers are starting to use information systems to create products and services that are customized and personalized to fit the precise specification of individual customers. Dell Inc. sells directly to customers using assemble-to-order manufacturing. Individuals, businesses, and government agencies can buy computers directly from Dell’s production control receives an order, it directs an assembly plant to assemble the computer using components from an on-site warehouse based on the configuration specified by the customer. 3. Focus Using information systems to enable a specific market focus, and serve this narrow target market better than competitors. Information systems support this strategy by producing and analyzing data for finely tuned sales and marketing techniques. Information system enable companies to analyze customer buying patterns, tastes and preferences closely so that they efficiently pitch advertising and marketing campaigns to smaller and smaller target markets. The data come from a range of sources-credit card transaction, demographic data purchase data from checkout counter scanners at supermarkets and retail stores, and data collected when people access and interact with Web sites. Sophisticated software tools find patterns in these large pools of data and infer rules from them that can be used to guide decision making. Analysis of such data drives one-to-one marketing where personal messages can be created based on individualized preference. For example, Hilton Hotels OnQ system analyzes detailed data collected on active guests in all of its properties determine the preferences of each guest and each guest’s profitability. (LAUDON, LAUDON, 2009) Multiple Methodology Frameworks Earl methodology has been regarded as most influential methodologies for developing information systems strategies. According to this work, IT offers major new business opportunities by improving productivity and performance, developing new businesses and enabling companies to gain competitive advantage. The key ideological stance taken by Earl is based not on internal but external or outward looking activities so that business objectives can be met fully. Earl pioneered a multiple methodology with three approaches (top-down, bottom-up and inside-out) Top-down Top down is concerned with identifying and agreeing business objectives and the drivers of business value through interviews, debates, existing business strategy and policies. Critical success factors (CSFs) are then developed for areas where success is necessary for survival, and subsequently information systems that support/enable/deliver these CSFs need to found. Bottom-up Bottom-up is about exploring what currently exist in terms of hardware, software, IT and IS applications and determining their functions, and how they work and add value. This activity concerns itself with understanding what systems currently exist and in establishing what needs to exist in the light of company strategic needs. This activity also requires and understanding of any capacity limits or constraints of current systems, which might act as a barrier to future needs. Inside-Out Inside-out is about being innovative and finding novel ways of giving the business an advantage. Usually, this needs strategic thinking into state of the art knowledge of other sectors/companies and spotting potential technologies or application of technologies, which will be ground-breaking in the near future. Benchmarking techniques are sometimes useful to highlight where an organization is falling short or has the opportunity to outperform its competitors. Earl suggests that both top-down and bottom-up methods should be used for IT/IS strategic planning and alignment since this gives a comprehensive overview of the situation from all angles. Accordingly, the top-down methods should be used to clarify business strategies and needs as well as the potential contribution of IT application. This should result in the alignment of IT and IS investment with business needs. Bottom-up methods should be used to discover gaps and map where an enterprise is in IS terms of its IT applications and where it needs to develop to meet the business strategy. The result should be improved specialist-user relationships and knowledge of where IT is important for competitive functioning. The third part of the methodology is termed ‘inside-out’ and implies designing an organizational and technological environment, which enables innovations to happen, thus making it possible to gain competitive advantages from IT/IS. Flaws in Earl’s Methodologies While Earl’s model is still relevant it does have a number of flaws: There is an assumption that because senior management are thinking about the strategic use of IT and IS and their alignment that this view and stance is good for everyone (throughout the enterprise), which may or may not be the case. The model lacks the ability to chart or predict future technologies and their potential impact on the business. The model is based on a rational and economic-based manager (Whittington, 1993),   who traditionally make decisions by analysing all the facts rather than taking into account more social, cultural, politically charged agendas, which can be entitled ‘social’ reasons and ‘gut feeling’ to decisions-making. Finally, Earl’s model does not take into account group and individual interactions and how this social networking is important is determining how things happen in business life. Since the development of Earl’s methodology other frameworks have evolved. A number of them have integrated principles and issues highlighted by Earl but have been modified to address some of the weakness of the Earl’s model. (GRANT, HACKNEY, EDGAR, 2010) External Drivers that Influence IS Strategy The following are the external drivers that have potential impact while formulating Information strategy and need to be adequately take into accounts. Transformation of the business enterprise Emergence of the global economy Transformation of industrial economies Competition De-regulation Emerging technologies Changing nature of the customer Environmental and conservation issues The value of intellectual assets 1. Competition Adopting Information System brings fundamental improvement inside and outside operation of organization. The organization added value in its activities by involving the IS across its department. The IS allow firms to understand and make better their supply chain, lean management, and value chain and eliminate all those wastes that do not give any margin to the company. Some of example of adopting Information system is given below. 1.1)   YANSHA Leans on IS to Stay Competitive YANSHA is one of China’s biggest retailers. It sells upscale designer clothes from around the world along with other line merchandise. One of its largest retail stores occupies 215,000 square feet in Beijing’s famous YOUYI Shopping City. YANSHA has long experienced market leadership in china, but in recent years has felt increasing completion from international companies. YANSHA’S management team was aware that its methods of communication with suppliers-the placing and receiving of orders-were less than efficient. It was also aware of other inefficiencies in communication throughout the organization. For YANSHA TO maintain its leadership role in the market, it would need to cut the waste and become lean and mean in its application of information systems technology. YANSHA turned to IBM China Research Lab to evaluate its information systems and recommend the latest technologies to bring it up to date. IBM implemented a massive system upgrade across the entire enterprise: an enterprise resource planning (ERP) system. The ERP allows YANSHA executives and managers to view real-time performance date, such as sales across all location, in certain regions, or in one particular store. Using this system, managers could, for example, determine the success of a particular marketing approach. The new ERP interfaces with a new supply chain management (SCM) system that provides close communication between YANSHA and its suppliers. These two systems working together, the ERP system and SCM system, allow organization. The new systems required a substantial investment of time and money for YANSHA, but the benefits have vastly overshadowed the costs. The new systems reduced the time it takes for suppliers to ship merchandise to YANSHA (order lead time) from 2.5 days to 4.5 hours. The order acknowledgment rate has increased from 80 percent to 99 percent. Order errors have been reduced from 9 percent to 1 percent. The money saved by YANSHA receiving the right merchandise at the right time has saved the company enough money to pay for its expensive new information systems within nine months of rolling them out. Achieving a return on investment (ROI) in such a short time is something any chief information officer (CIO) would be proud of. 2. Deregulation Deregulation can be defined as when Government cease to act as a controller over the industries and permit maximum liberty of the operation in market is called Deregulation. The use of IS in case of deregulation become vital because the connection with suppliers crossing the boundaries and new frontier develop which bring competitive edge to the firms. One of example in such situation is 2.1) 7-Eleven Japan Company In 1996 the Japanese Industries witnessed major deregulation in sales of stamps, postcards and revenue stamps and it is become possible at convenience stores. 7-Eleven Japan recorded sales figures equivalent to 9 billion yen in this area in 1996. Stamps and other products that customers frequently request contribute to increased store loyalty from customers even through the products themselves have low profit margins. In 1997 deregulation occurred in the travel industry. In 1998, the medical supplies and finance industries were deregulated and many other areas will also be affected. 7-Eleven Japan invested approximately 4 billion yen in the construction of large-sized refrigeration boxes for ice cream in 1994 and installed them in all of its chain stores. It is quite natural that ice cream sells well in summer time. However, 7-Eleven Japan recorded more than a two-fold increase in ice cream sales in comparison with the previous year. The refrigeration box was placed in the centre of the store where five gondolas used to be stationed. This was a drastic and innovative use of space as convenience stores have a limited space. Morinaga Milk industry Co. Ltd, Morinaga and Company Ltd, Snow Brand Milk Products Co, Ltd AKAGI NYUGYO, and HAGEN DAAS were the main suppliers. Until then, ice cream was mainly produced in the winter season and prepared for the concentration of sales in summer. However, manufacturers were unable to respond quickly to the change in the market. It was not possible to increase the production of popular ice cream because it would only build up inventory volume. Therefore, 7-Eleven Japan established a system to sell ice cream within 10 days after placing orders. The features of the system are as follows; On-line transmission of order information and inventory volume of the store directly to producers Manufacturers produce based on this information and store them in a storage facility especially prepared for 7-Eleven Japan The exact quantity required is delivered to the joint delivery centre for frozen products Form this centre, products are delivered to the stores In this way, 7-Eleven Japan has constructed a consistent production, distribution, and sales system for ice cream products. Thus, it became possible for the store to sell very fresh ice cream throughout the year. In addition, 7-Eleven Japan tied up with Morinaga Milk industry Co. Ltd Morinaga Company, ltd and AKAGI NYUGYOU for the development of new products and has developed new types of ice cream that satisfied customers’ needs. This is an excellent reflection of 7-Eleven Japan’s attitude towards â€Å"taste† and â€Å"freshness†, 7-Eleven Japan Attaches importance to the â€Å"un-learning effect†, something that breaks away from the existing concept. This is why it could carry out a very drastic innovation in order to sell â€Å"summer products during the winter season†. (ISHIKAWA, NEJO, 1998) 3. Changing nature of Customer The information system has been rigorously used to understand need and demand of customers in order to build stable relationship with them. A satisfied customer tends to remain a customer, and it is less costly to retain existing customers than to attract new ones. Therefore, the Information System helps to track down profiles of profitable customers to exceed revenue by continuously temping them. The process include compile the data of customers like Where the customers are located? What items are in demand? What is the revenue by customer and item in terms of an ABC ANALYSIS? What are the sales patterns and the sizes of orders? A sound database will enable organizations to manage costs, increase profits and make informed decisions about what to put on shelves. No manager ever has all the information needed to make a perfect decision, but having an adequate source of accurate information will improve the quality of decision. 3.1) KROGER COMPANY 3.2) BARNEYS NEW YORK Barneys New York, the upscale clothing store chain, reports a 10 percent increase in online revenue by using data mining software that finds links between online behaviour and greater propensity to buy. Barneys uses a system from proclivity systems to analyze data about when a customer visits its site and other demographic information to determine on whom it should focus its e-mail messages. For example, an email message announcing a sale might be send to those who had purchased certain products in the past but only when the items were on sale. This has not only increased sales but has increased customer goodwill by showing that Barneys understands its clientele’s interest. (GELINAS, DULL, 2010) 4. Emerging technologies The large supermarkets are extensively using information system to reduce their cost. They are acquiring sophisticated and state of the art technologies to evaluate the customer demand. The sensor machine on doors protect the shop to be stolen the goods. Also bar code or tag on the cloth helps organization to evaluate the demand of the product and link that technology with the Information system, which later send information to the supplier to replenish the particular stock in store. 4.1)   Sainsbury Since 1989, Sainsbury has implemented a high-tech information system that has halved the average time it takes to get a product from the supplier to the consumer. The impact has not only been on the Sainsbury organization, but also on other organizations within the retail food supply chain. According to Angus Clark, the Sainsbury director responsible for systems and distribution, bar-code scanning at the checkout counters has changed the whole supply-chain operation from a â€Å"push† system to a â€Å"pull† system. Historically, forecasts dictated what was pushed down the supply chain to each retail outlet. But scanning has allowed Sainsbury to capture demand data the instant a sale in made. Now, production and distribution can be calibrated to levels of real demand. (STAHL, GRIGSBY, 1997) 5. Transformation of Business Enterprise Organization structure refers to organizational subunits and the way they relate to the overall organization. An organization’s structure depends on its goals and approach to management, and can affect how it views and uses information systems. The types of organizational structures typically include traditional, project, team and virtual. Organizational structure can have a direct impact on the organization’s information system. 5.1)   World Bank World Bank is two financial institutions owned by 185 member countries. In recent years, the World Bank has suffered from front page scandal’s regarding suspected improprieties with its senior-level officials. In 2007, World Bank president Paul WOLLOWITZ was pressured to resign, and in 2005, vice president and CIO Mohammad Muhsin retired under a cloud of suspicion. However, while the press and the world were focused on corruption in the World Bank, some very positive developments were taking place with World Bank infrastructure and information systems that went relatively unnoticed. The World Bank has traditionally been run as a top-down hierarchy, which is a traditional organizational structure. In recent years, through the use of global information systems, the World Bank has transformed into a decentralized, front-line, matrix organization,† observes a recent article in Baseline magazine. Rather than controlling information systems from the top, the World Bank has been investing to empower its clients with the information systems they need locally to participate in the global economy. (STAIR, REYNOLDS, REYNOLDS, 2010) Bibliography Book References DAVID BODDY, ALBERT BOONSTRA, GRAHAM KENNEDY (2002), â€Å"MANAGING INFORMATION SYSTEM: STRATEGY AND ORGANIZATION†, 4TH ED PG 312-314: PEARSON EDUCATION LTD KENNETH C. LAUDON, JANE P. LAUDON (2009), â€Å"ESSENTIALS OF MANAGEMENT INFORMATION SYSTEMS†, 8TH ED PG 6-22: PEARSON EDUCATION LTD KEVIN GRANT, RAY HACKNEY, DAVID EDGAR (2010), â€Å"STRATEGIC INFORMATION SYSTEMS MANAGEMENT† 1ST ED PG 119: CENGAGE LEARNING EMEA AKIRA ISHIKAWA, TAI NEJO (1998), â€Å"THE SUCCESS OF 7-ELEVEN JAPAN: DISCOVERING THE SECRETS OF THE WORLD’S BEST CONVENIENCE CHAIN STORES† 1ST ED. PG 46-48: SEBEN-IREBUN DAKEGA NAZETSUYOI ULRIC J. GELINAS, RICHARD B. DULL (2010), â€Å"ACCOUNTING INFORMATION SYSTEMS 8e†: 1ST ED, PG 345-346, SOUTH-WESTERN CENGAGE LEARNING MICHAEL J. STAHL, DAVID W. GRIGSBY (1997), â€Å"STRATEGIC MANAGEMENT: TOTAL QUALITY AND GLOBAL COMPETITION† 1ST ED, PG 243, BLACKWELL PUBLISHERS LTD RALPH M. STAIR, GEORGE REYNOLDS, GEORGE W. REYNOLDS (2010), â€Å"PRINCIPLES OF INFORMATION SYSTEMS†, 1ST ED, PG 48: CENGAGE LEARNING