Illustrate and explain the four value adding domains identified by the Amit and Zott model giving examples to support your answer Amit and Zott identified four value adding domains that would be used in the improvement of sales through ERP. First, it is very important that the business develops the technical requisite knowledge required for the adoption of the system. This, he referred to as the technical domain; overall this will deal with the development of infrastructure that is tidal in the development of the ERP.
Second, the business has to develop an understanding of how the e-business will assist the business in reaching its desired goals; the knowledge domain. Third the business has to understand the overall e-technology that is required in driving the business to the projected levels; e-technology domain. b) Critically evaluate the role of porter’s value chain in underpinning the efficiency sector of the Amit and Zott model giving applied case study example to support your argument. Firms will undertake various activities geared towards ensuring that the set objectives are attained.
The activities associated with the attainment of the customer were identified by Porter as selection of the channel, promotion, pricing and the management of the retail activities. Through these services, the business would attain its set targets. Services were equally identified by porter as key in the attainment and retention of the customers. These services were identified as Customer support, repair services and upgrading of the products that needed such services. In addition Porter identified the procurement process as core in the customer service process.
Ideally for Porter, if the right materials are procured, there was a high likelihood the service was to be offered. Porter also saw great importance in the management of the human resources that were utilized in the production process. The remuneration of the worker and their subsequent training was to play a central role if the right quality product was to be attained. Question 2 a) explain the functions of the enterprise resource planning (ERP) within e-business strategies The adoption of the ERP within e-business makes it possible for the effecting of business orders through the electronic services.
Subsequently this reduces the overall quantity of details required and makes the process of transacting even faster. Besides, the possibility of the details being incorrect is equally reduced. Through the integrated process, catalogues of products can be provided in a number of languages making cross border sales very effective. Ideally, this makes the viewing of the currencies through the whole world a success without any extra costs. Equally, marketing and publicity costs are cut down. Optimized operations ultimately reduce the costs of administration, processing and transport.
This gives any business competitive advantage in the market. In deed the adoption of this technology is meant to satisfy the consumer even better. The introduction of the systems goes a long way in ensuring the utility of the product is improved in terms of time, place and form. In addition, the adoption of the ERP integrates the various players in the production process, clients and the providers. This enhances the relationship between these core players in the business chain. b) critically evaluate the role of balanced scorecards for the effective achievement of ERP objectives
The balanced scorecard ensures that the business improves on it processes. Overall, the business has to ensure the processes of production are effective and gives the desired final products that are standardized. If the scorecard is standardized it ensures the employees are motivated are dully trained in monitoring and evaluating the production process. Besides, a motivated employee will always effectively participate in the production and product promotional processes. If evaluation is undertaken through the standardized scorecard, the business’s information system is enhanced.
The enhanced information system does ensure that there is smooth flow of information from one point within the business to the other without much distortion. With the adoption of the balanced scorecard ensures that there is due coordination within the business in terms of the monitoring of progress and the overall satisfaction of the customers. Subsequent the out turn over of the business plummets. In the final analysis, the adoption of the balanced score card increases the overall returns on the sales and the turnover.
Question 3 a) Explain why many business choose not to become e-business enabled The embrasure of e-business has numerous merits. However, it equally lends itself to a number of demerits. The approach of e-business has no particular application when it comes to the agricultural industry. Based on this argument the approach is prone to sectoral limitations. Some businesses do not grow at all, for such businesses they do not see the need for the adoption of e-business. This has been particularly experience in the food industry.
In addition, the costs of e-business are quite high that low productivity may not ultimately maximize the output of the electronic communication. Ideally substantial adjustments are required within any firm to embrace sales through online interactions. b) Critically evaluate any two reasons from your answer to part a) using a case study example to support your argument as appropriate. Agricultural productivity can not readily embrace e-business. This is because most of the goods from the agricultural sector are perishable. This makes it literally impossible for the adoption of e-business.
Besides, very few consumer of food product will see the need to access the market for certain agricultural product through the internet. The costs of installation are relatively high. It would be illogical for example adopting e-business approach when the capital base of the business stands at $2300 and one uses $12000 to install the entire program. In the long run the business may not be able to pay back returns on this investment. Question 4 a) explain why e-business organizations might be better placed to outsource elements of their business activities than conventional business
E-business involves the use of electronically enabled communication network in the undertaking of business and facilitating business communications. The approach assists in the strengthening of the link between the business and the customers. The network improves the efficiency in the business chain, marketing, selling and purchasing. Businesses that are already running e-business find it relative easy going to adopt the ERP system. This is because the interface adopted in both cases can easily be merged to the ERP and the E-business systems.
Ideally with the two systems in force the internal customer issues are integrated with the external customer affairs. Research has shown that businesses with already developed e-business interface find it quite easy to adopt the ERP systems. Besides, the research shows that the business with already established e-business has the installation costs cut by approximately 50% compared with one without the e-business system. b) critically analyze the argument against outsourcing as an ERP strategy The process of introducing the CRM system is relative expensive to install.
Besides the implementations has a massive cost implication. This notwithstanding, the limitation go beyond this bounds; First, the outsourced system has to serve the own first. Within this argument, the teething challenges associated with the merging the two businesses may massive and costly. The system may not serve the interest of the business altogether. Overall the business finds if nearly impossible to customize its process. The business equally finds it quite challenging to reengineer and fit in the industry’s standard requirement that are prescribed by the ERP.
Ultimately, if the business does not meet this requirement the business may end up losing its competitive advantage over the other business in the same line of business. The outsourced systems would be very hard and rigid in its process of adapting to the workflows of the business. The process of the business may be equally flawed. This may translate into failures of the business. Question 5 a) Briefly explain the main reasons for the development of Customer relations management (CRM) software in business
CRM software ensures the departments of any business are working in tandem to ensure that the customers’ issues are dully attended to and satisfied. Through the CRM software, the sales, support and marketing departments are linked infinitely showing the requite flow of customer information. This assists in the attainment of the common goal for which the company if fronting for altogether. Subsequent the customer metric will be reflected in the core customer chain which makes it even easier to address the concerns of the customers collectively.
The CRM helps the organization it its quest to generate more leads for the customers. Ideally the adoption of multiple channels of customer service, the viewing of the requisite customer related information and the subsequent analysis of the customer chains keeps the sales representatives on course. In addition, the solution will assist in the filling up of gaps in the distribution chains. Through the CRM software, all transactions with customer are kept track of making the follow-up relatively possible.
The most important information is captured through the interaction tracked through the CRM solutions. Further, through the CRM software support requests from the customers are easily tracked and a subsequent follow-up undertaken. The business can undertake developments based on the concerns of the customer as captured through the analysis on the CRM software. Ultimately, with the effective management of the CRM software the business can turn in leads on its sales and overall turn over. b) Critically evaluate the limitations of CRM systems within the e-business giving examples where appropriate.
While the implementation of the CRM systems is most welcome, it need to be appreciated that the implementation has been coupled with numerous challenges including dissatisfaction by customers. Under certain circumstances, the systems may fail leading to delays in the response to customer concerns. For instance the use of the interactive voice response is taken by customers as a headache. The CRM systems are dogged with bureaucracies. This makes the customers to dislike them altogether. In addition where outsourcing has been used, there have been circumstances when the CRM system has suddenly been stopped.
This ordinarily inconveniences the users of the services. Besides, the reason for the outsourcing is because of the high installation costs of the CRM system. Ultimately the cost aspects make the adoption of the systems unpopular. The security of the customer information becomes the preserve of the business. Where such information is lost, the business stands to meet the retrieval costs of the information. The expansion of the business in some cases renders the existing business null and void, or at least quite ineffective, hence the business will keep reviewing the system over time. This is quite expensive.
The staff meant to run and use the CRM system just needs extensive retraining. This is an additional cost. However, even after the retraining the staff may feed the system with the wrong information and as it were garbage in garbage out. Essentially, if the company does not present the staff with the requisite knowledge, the system can cause more harm than good. Work Cited Wang B & Hoon F. , ERP + E-Business= a new vision of the enterprise system, University of Nebraska-Lincoln, USA Songini, M L, Users vent frustrations over oracle CRM/ERP upgrades Computerworld, 10/30/2000, Vol. 34 Issue 4