Category: MBA Seminar Topics

In the below figure, the most of Enterprise System challenges can be assume from the Key factors motivating the realization of ES values. The ES allows the enterprise-wide management view of overall, how the company performs well.

It requires the vast amount of investment, spends the huge amount of time and high costs at the unfortunate side. Therefore, in the extensive implementation, it faces many of the daunting difficulties. Problems crop up after implementation when it comes to optimize, integrate and in format.

The bigger companies are facing the major problems because the companies use the hundreds or even sometimes use the thousand computers in the different type of departments. These departments serve the involving the various business units, functions, and management tiers.

Still the integration brings the quicker communications, money savings and improved decision-making and the integration is the more complex in the ongoing process can takes the many years to completely automated. To overcome this problem, the centralized shared services implementations are also includes by the recommendations. Whereas by sharing the software, hardware or other firms core business process, some companies left the services in the future. The Enterprise Application Integration (EAI) tools or web services to make the applications well matched to each other. Otherwise organizations requires to collaborate and business processes and agree on key information is the pain full process.

Among the more efficient arrangement between systems and required process, ES Customization can brings the optimization. The companies requires to make confident that managers and non-IT employees are educated about the process of new system suggestions and allow them to achieve it and to get the use of system. Before the presence of optimization, the managers are live using the system. The same in format process is applies which is known as an evolutionary process. Moreover, the professionals and managers are must learns the how to create the most professional use of persons information or data and how to separate out the information of good business from the huge amount of transactional data.

Organizations looking for to contract with that type of problem must implements the new ES functions. Moreover, these functions are like applications of performance measurement. For example, to track the performance uses the balanced scorecard application. The performance is handles the earlier information requirements and among the management information analysis considers the operations to generate the new insight. Data warehouses, ad hoc and portals reporting functionalities are also useful for the employees and permit the company to appear with the new and improved quality information or data.

From its ES, Dell is capable to accelerate and realizes the values. Moreover, to get the implementation of critical mass and get the most benefit on seamless flows of data and better integration and business Units, the information between the departments, and geographies, this company invests the much time and requires the which resources are come to use. To accept the bifocal advance on the long term and short-term benefits, the many firms play the safe role. To achieve the consequently produced equivalent action plans and benefits, Dell performs well and prioritizes intelligent benefits. Its incorporated MIS has effectively achieved its vital optimization goal.

For managing the process of business and improve the performance, the procedure of an efficient and integrated MIS serving is based upon the rest of this assignment. In the four walls of organizations does not finish the Processes of enterprise wise Business like functions or departments. Moreover, customers are integrates by this process and the customers are like partners of dell or best of variety vendors. The company’s links in the industry-wide system is highlight by another author. The process of inter organizational business is the most importance in these days.

Using the enhanced process of specific business, structures and capabilities, the performance of business improves by IT and this procedure is argues by the process oriented approach. In the value of IT business using the Resource Based View Theory (RBV) application, the dell is not directly links with the IT to improved performance of business. In this case, IT interacts or develops with organization capabilities and the processes of higher order business. The relationships of the supply chain are the examples for this type of business processes. The activities like internal and external and company process and analyzing the strengths and weakness of company are describes by the value chain method proposed by Lindgren.

Analyzing and choosing the correct process of right value chain, the successful robust business is creates by the Dell. Dell combines the customer management relationship and the concept of supplier to directly supplies to its customers. During the essential information of customer, Dell allows without any doubt to fight the best competitors than it. Moreover during the just in approach avoids the high obsolescence costs and high investment inventory costs at the same time due to the quick change of technology.

According to Walters, “vertuality becomes into reality” is allows by the improvement of the process management. For example, According to Dell, to improve the utilization rates of processor beyond 20% enables by the virtualization method. Moreover, the result is closing the two data centers, decomposing the total 8,000 servers, and saving the annual training costs of IT.

Dell is capable to create, delivers the maximum value to customers, and creates the competitive improvement by cooperating with the different opposite business partners using the value chain (Agency theory). During with the many suppliers cooperation so Dell is capable to gets more benefits. To decrease the company’s cash cycle, operating cycle and operating cycle, it is combines both the supplier’s influence of intangible assets and tangible assets together. The Transaction cost theory creates the vast competitive improvement for the company. To achieve the success, the efficient and robust Information technology communicates between the Dell and its partners. Partners play the vital role to achieve the success. This model is mainly looking after for the innovations and these are associated with the integration of SCM, KMS and CRM.

When the competitors form the team then combines the benefits is agree by many numbers of authors. The competitors like greater force, inter-partner learning and power to fake together into the new established markets as well as collecting the resources. However, other side contains the fear of critical corporate information for over-sharing and threat of trust and knowledge. These are makes to spoil the company market position, if the competitors use these. Therefore, these types of relationships are generally connections by the network sharing. However, sometimes the network complex interdependencies cannot coordinate or controlled but can only manage.

Among the success of hypercompetitive future, the business models are supports by only the high-tech companies. The future model contains the advantage of business model in the horizontal but not vertical. Therefore, this is the reason; the IBM Company will hold stable or slightly reject the Dell computers compared than to other companies. The other company’s drops down the 40% during the middle of 2000 once the economy is in uncertain position. Dell believes at that time is vertically connected enterprise is more than the vertically integrated enterprise proposed by Michael.

In Dell Company, the key applications such as the roles, efficiency and integration are analyzed. For increasing the access by the public and for the both in-bound and out-bound managers, the Dell’s integrated management system is formed in the layered management model. This is used for manage the products by organize and plan the required aspects. This is for, at lower cost increasing the manageability and interoperability and at different levels of structure getting the more efficient decision making. So it is named as the UMA (Unified Manageability Architecture).    

There are three layers in the Dell’s hierarchy. Namely: first one is operational, second one is tactical, and the last one is strategic level.

At the operational level the Dell’s system is also called as the “platform management”. This consist the all configurations, monitoring, and all diagnostics. For doing the quick help for the customer queries, this level is more depend on the TPS. This gives the more accurate and quick response for the queries of the customer.  Because there is a great emphasize on the marketing and sales function. For that department, the TPS application system has Sales Order Information System (Sales Management), Market research, and pricing system (for pricing promotion and new products).

For the life bring the new products and services by the DSS, there is a unique core competence through the competitive knowledge in production. The DSS uses the sophisticated modeling tools it gathers the data through the user control inputs and outputs. Because the DSS does not directly involve in the professional programming it is just support the decision making. The MIS application uses the high volume for the present and the past data. These are processed by using the simple model. The output is generally in the form of summary reports such as company’s annual report. This is done with the help of structured and unstructured decisions.

At the strategic level, the Dell system is also called as “Enterprise Systems Management”. For the strategic level managers this is divided into the longer term planning. This longer term includes resource management and business management. In this the CRM helps with data analysis tools and the advanced data consolidation. This is might be in the form of summarized or detailed when interacting with the ESS. At the same time the CRM is also work simultaneously with the DWS and Enterprise Resource Planning (ERP) systems.

The keyboard-to-server type of sales process is initiated by the customer. The dell’s customers could choose their system’s configuration from the thousands of software and hardware combinations. Generally the user friendly systems are selected which gives the updates and delivery dates. At the tactical level, from the operational level of TPS receives the data by the accounts department. The financial credit charge details are verified and sent the information to the TPS. This is because the order conformation with the customer and delivered it with in five working days.

Data is sent to the manufacturing department, order might be in the form of printout then starts manufacturing. After manufacturing it will be checked and sent it to the packaging department then to the distribution and logistics department. The agile supplier has the data getting from the TPS purchase order and according to that those will be sent to the customers next day.

At the strategic level, for the over all company, gathering the information from the various departments and different systems for help, support, forecast, and plan the future. There are three guide lines; these are the key for success in Dell.

Now a day’s among its IS, Dell produced its modified leagile supply chain (lean-agile hybrid) although benefiting from the Mason-Jones model metrics of the four key business. The Dell contains mainly the lead-time, cost, availability and quality using this model proposed by Christopher. The importance of changes of these key metrics is remember and requires by the Dell. The changes is made accordingly with the especially time when the winner of new market appears. Dell is also satisfies the below equation which is express in a business in the terms of value delivery

Total value = Quality * Service level / Costs * Lead-time

The success of the leagile supply chain is mention by the two decoupling points such as information and material proposed by Christopher. In the supply chain, upstream information is possible and this information is lie according to this author. In addition, it is the future point whenever penetrates the real actual demand using the TPS theory. The importance of IS shows by this theory and it permits the right information or data to develop into correct format accessible to the correct department of the correct level of the management and shows the how to improve the company overall performance.

            The various companies try the integrated system approach of Dell to copy. Without any luck, the Dell Company tried to changes the distribution channels from direct to indirect way. The Dell includes the set of systems. Therefore, this is the main reason beyond to capital benefit. The system is like integrated information system. This system serves and supports the process of custom configuration and gives the responsive ability to the customers.

There are significant changes in the market, products, and society. These are brought by the company fro which made a small change that is in the company full implementation is done in IT. But outside competitors, IT is not a differentiating factor.

It is a great success for the DELL, by using of this IT as a differentiator. This is outperforming for its rivals. Many researches can also said that, the positive effect which is significant brought by the IT/IS for the firm’s productivity. The “IT productivity paradox” is brought by the Brynjolfsson. This is used as a contribution for the business value. This gives the optimistic view and pessimistic view of IT.

There is a need to complement with the social assets (internet, IT training, rule & regulations), managerial assets (flexible management, and knowledge based decision making) and organizational assets (culture, efficient business processes) for optimize the IT investment returns. If the IT is complemented with more or other assets then the accumulation would be done with the superior returns and vice versa.

• Key systems Applications and their Interrelationship 

For getting the maximize efficiency and effectiveness of performance of the over all company, the key systems are interrelated to each other. The following is the fig for the interrelation of the systems. 

The external environment is changing frequently now a day; this may lead the organizational decision making become more complex. There are some globalization forces which may affect the businesses such as technology, political & legal, social & cultural, economical, ecological and many others. The way changing the business is known as “Behavioral Theories”. The companies are mainly focus on the core capability. This is used in developing the advantage about the sustainable competitive.

The Outsourcing is the latest trend in the business. It will become success only when the relationship with management is strong. The maintenance of relationship in between the organizations, supply chain members at different borders is enhanced. This enhancement is done with the use of IT. 

This application is selected by the DELL. This is used to show, implementation of IT in world wide operations. The customers, supplier, distributors, business partners are consisted in the exceptional virtual and integrated value chain. 

DELL has brought the optimization by using the integrated MIS; this is very helpful for the company in order to improve the performance. The performance is improved when the information is provided across various departments. For managing the business processes, the decision making is served as an efficient at the three tiers of management. There is an important characteristic in the IS integration. By the coordination of the activities, the databases are shared with the organizations. This is the degree for the IS integration. The other business units also access the right data during in this process. The right data is related to the different department’s activities.

 Design and manage information system of the company is done effectively by the manager by doing analyze deeply and closely. The understanding about the information systems and its structure for the manager, the classified divisional bureaucracy is helped out for the manager. The flexibility and the improved speed are the efficiencies of company product; these are earned from the global IT. This is done from the performance of the DELL in the IT globally

Question: 

Electronic Commerce has revolutionised consumer’s shopping behaviour as well as business models for firms and enterprises. Discuss the different forms of business-to-consumer (B2C) e-commerce and critically analyse its impacts on firm’s logistics and supply chain strategies, focusing on a specific firm or industry.

Layout: 

• 1500 words maximum, approx. 5 pages exclusive of references
• 1.5 or double spacing, Times New Roman, 12
• Titles in bold
• References required, bibliography optional

The cost side scale economies and demand and scope provide greater airline networks a viable advantage on lesser carriers. Airline alliances and mergers can permits airlines to lesser costs and improve demand with rationalizing the joined networks and growing the seamless services scope. Commonly, the benefit of mergers and alliances is reviewed as follows.

• Scale economies, density or scope

• Market demand

• Globalization

• Network Reliability

• Partner’s center access

• Technology access and other source

• Distributing resource

• Operational flexibility

• Competition reduction

• Diversification of Product/service

The effect level varies broadly between city-pair markets and involving various consumers’ classes in any case, this segment can balance the normal benefits and drawbacks of mergers and alliances. 

The virtual compare of the advantages in provisions of effectiveness and the results on contest depends on a several factors, as well as the overlap level in the airlines’ earlier networks to the merger of two networks.

Further than the airline ownership system has several other barriers of regulatory to mergers and airline acquisitions. These occur mostly from attempts through governments to prevent anti competitive activities or the neglect of a leading market position.

• A merger must not effect in either the removal of successful competition or an extreme market distribute for the existing firm.

• A merger must not effect in excessive concentration in the air transporter industry.

• A merger must not be probable to show the way to broad reactions and protective merger offers by competitive carriers.

• A merger must not cause in significant competition foreclosure for exchange traffic.

• A merger must carry the extensive operational, organizational advantages or service for the existing firm.

• In merger case comparatively efficient carrier which is marginal, or in the two marginal cases, the ensuing advantages of the existing firm must be corrective complexity of the fragile merger partner.

• In the merging firms the security given to the labor force must be in accordance by the current CAB policies.

• Types of alliance

In order to meet definite requirements of airline, an extensive range of difficult agreements of inter-airline has developed. In the industry of airline, the code-sharing agreements are the most common form of alliance. Theoretically, alliance’s diversity can be associated towards the cohesion level among the partners of code-sharing. This level is reproduced in.

• The alliance’s non-operating carrier’s commercial commitment
• The airline product’s operational integration
• The integration degree of marketing mix’s other components
• Alliance’s equity aspects
• The network scope 

       In general, four kinds of alliances are present like point specific. First type is Point specific where on specific city pairs the airlines only block space or code-share. Regional alliance is the second type where the airlines code-share on franchise regional airlines or on a number of routes. Global alliance is third type where several routes are code-shared by airlines connecting two significant networks of hub in an extensive commercial agreement. Strategic alliance is fourth type where the co-mingled assets might be maintenance bases, staff, traffic rights, aircraft, capital resources or terminal facilities. 

Items	Content
Point Specific	Code-shares on less number of pairs of city Often with the purchase of block space
Regional	Code-share on huge number of routes from-to a franchising of regional airline or a specific region
Global	Extensive commercial agreement Several routes shared by code Connecting two significant networks of hub
Strategic	If there is only an effective co-mingling of assets

 Table: Nature of airline alliances

 

• Factors affecting alliances 

     From the perspective of economy, limitations towards alliances can result from huge number of resources; constraints of regulatory compelled by technology changes, factors of supply-side like network economies, scale and scope, trends in demand level, determinants of market organization like competitive nature, and overseeing agencies.

The International Airport Minneapolis-St. Paul is a main for center Delta airlines. Actually, a major fraction of whole flights and Delta and/or different code share followers are operated beyond MSP. This is significant in evaluating the impact local environment of this airline. “On fuel conservation Delta considered as a leader, containing enhanced fuel effectiveness with 35% while percentage of 2000 and 10 from 2005.” The airline is extensively reduced fuel use, by 1.4 billion some gallon fuel in 2008 as in 2000. Delta Airlines challenges to decrease its local impact by various strategies, as like aircraft retirement, fleet renewal and establishing new equipment’s of ground handling.

                 The policy that the Delta Airlines is attempting to decrease the impact the local environment is through fleet renewal and the retirement of aircraft. An example of this renewal is “changing 757 hub faction tanks to safely remove the requirement for a fuel of 1,000 pounds, 1 million an investment fuel gallons yearly” and “on 737s installing winglets, 767s increases fuel effectiveness by 3-4 %”.“Northwest Airlines also started flying 757-200 airliners reconfigured Boeing on a fewer of its European flights taking some passengers.” DC-10s were exchanges through the newer, additionally A330s fuel-efficient, that are normally utilized on transatlantic flights. “Trans-Atlantic Delta A330s take 25 new passengers than of a DC-10 however using 13,000 some fuel gallons per flight” 727-200s and DC-9s is also been changed with Airbus 320s and 319s, where “more capable of 25 percent”.

                         Using third policy is another equipment of ground handling. This having towbarless tractors “more than 7 million gallons fuel saving per annul”, motorless carts “gates location to transport fuel to the aircraft from the alternative hydrant system, approximately gallons of fuel saving 250,000 per annum also decreasing travel interruptions and making a secure work area.”, and also lighter cargo containers, “that can save more than gallons of fuel1.3 million per annum.”
Finally, Delta Airlines, a major provider to flights into and beyond an International Airport Minneapolis-St. Paul, will be a possible source of huge pollution. Though, the airline has been carried environmental actions seriously and asks for to decrease its environmental impact by multiple strategies, as like fleet renewal, equipment of newer ground handling and aircraft retirement.

ALLIANCES: AN ALTERNATIVE TO MERGERS 

• The development of airline alliances

                  As said by the professor Oum (1997), the primary international alliance was created among British Island Airways and Air Florida in the year 1986. On the path of London-Amsterdam, the originating traffic of US was fed towards the code-share flights of British Island by means of Air Florida. For international alliances of code sharing no strict approval was required by the US DOT during that time. But, on international alliances the US DOT in March 1988 has simplified its position representing that no approval will be provided to alliance unless and until the alliance brought advantages to the US, or else it was covered in a bilateral agreement, and until the code sharing rights of US carriers were also permitted in its markets by the foreign country. For instance, the antitrust immunity was granted for KLM as well as Northwest in November 1992 by the US DOT. In May 1996, antitrust immunity was granted to United States and Lufthansa.

          Results of the 1998 as well as 1995 studies of Boston Consulting Group regarding the Airline alliances durability were shown in the table given below. The most significant finding is that for each and every alliance category the success rate has increased substantially in the period 1995-98 over the previous three-year period 1992-95. 

	1992-92 (%)	1995-98 (%)
Overall alliances	38	68
Equity alliances	73	81
Non-equity alliances	26	62
Domestic alliances	65	93
Alliances within a continent	59	68
Intercontinental alliances	33	58

 Table: Percentage (%) of alliances having endured in a specified time.

 

• Alliance objective

         As said by Bissesseur (1996), based on two perspectives such as demand (marketing) and supply (production) the airline alliance’s objective can be analyzed. The objectives on the supply side are to improve efficiency as well as to reduce production. The main approach is to join definite operations of partner so as to improve the use of resources containing labor sharing, joint purchasing, facility sharing, and capacity rationalization and also it reduce the costs of unit production as shown in the table below. The objectives on the demand side include improving market power, accessing new markets and profiting from traffic feed. This method also consists of block-sharing, fare co-ordination, code-sharing, and franchising. 

		Strategy	Advantages
Objectives	Demand side	Code-sharing Block-spacing Franchising Fare co-ordination and schedule Co-ordination of FTP International hubbing Scope economies Density economies Power of market
	Supply side	Facility Sharing Labour sharing Rationalization of capacity Activities of non-core Mutual purchasing Integration economy Scope economy

The radical adjustments as well as effective risk management’s implementation is influenced with the introduction of the latest security provisions along with consumer uncertainty, aircraft costs, escalating fuel costs and static labor in case of airline business. At the time of integrating new business, operations and process this business climate should be taken into consideration for knowing how to balance the opportunity and risk. It is risky and costly to mismanage the risk and also not possible to prevent all risks. Hence effective risk management is only an effective solution for these cases.

For implementing the effective risk management the effort level placed is considerable and there is no similarity in between two solutions of the effective risk management. Different structures, financial resources, cultures, objectives, strategies and risk appetites are comprised in the companies. The greatly influenced efforts regarding the corporate sustainability are the air transportation and airline industry’s sustainability nature as well as objectives.  In accordance with the characteristics in a process of implementation, the model CSM has been improved and developed.  For this reason a basic process model is presented by the CSM model.

To airline industry, the effective risk management model of the Protiviti is provided as a best sample model. To understand and implement the CSM model, this model is considered to be useful. In order to assist the management of airline to go away from traditional risk management towards the holistic risk management, this Protiviti model is designed. The uncertainties occurring across the financial and physical assets are managed through traditional risk management. Since the risk management managerial approach and its system objective is to protect, enhance and create the enterprise value the risk is observed to be opportunity when compared with effective risk management and CSM. In strategy of the company and above the organization the risk management is embedded and managed through this approach.          

To implement the corporate sustainability management, the industry of airline is one of the complex and dynamic industries. One of the fastest growing airlines of the world also experiences the major challenges as well as new risks with respect to the survey of Oliver Wyman are given below:

• Issues of post-merger integration
• Increased competition
• Probable market liberalization and regulatory changes and
• Changes in fuel prices

                   An approach of comprehensive and analytic intensive is utilized by the OW for determining and down selecting the key internal as well as external risks that are being experienced by the main Asian airlines. In accordance with the corporate sustainability fundamentals, related efforts, sustainable development and requirement, a new model can be formed. A continual improvement is enabled in decision making if the series of steps included in the process of CSM are undertaken in sequence. In every processes step the consultation as well as communication is reflected. In the process of risk management, monitoring and reviewing is considered to be an important and integral step . The steps are:

• Internal as well as external airline business environment analysis includes for corporate sustainability management the resource allocation.
• Corporate based strategy as well as relevant infrastructure’s establishment includes human based sources, technological and human based sources.
• CSM committee and function establishment includes assigning responsibilities and roles along with information, feedback systems and data flow’s establishment.
• Prioritization, analyzing and identifying and mapping the sustainability basing the risks into the economic, social and environmental risk categories.
• For good risk response decision making includes mitigate, assume, transfer or avoidance to each risk.
• The corporate sustainability based system’s continuity is presented for new as well as changed risks.

The new model’s sub components and its cyclic nature are described by the below process steps:

Step 1-

• Corporate objectives and goals of airlines.
• The internal and external pressures determination over the airlines.
• Airline’s management systems, information systems and internal audit structure analysis.
• Culture, common language and infrastructure of airline to risk management and corporate sustainability.
• Stakeholder relations such as stakeholder identification, outreach, marketing and media relations analysis.
• Airline resource determination and its allocation.
• Business strategy of airline and their relationship with the corporate sustainability’s determination.
• Corporate appetite and tolerances of airline’s determination.
• In accordance with corporate sustainability, airlines corporate procedures and policies review.
• To corporate sustainability, triple bottom line’s establishment (Oliver Wyman, 2007).
• Using the present managerial applications, functions and approaches supporting the sustainability.

Step 2-

• Organizational sustainability strategy’s definition and integrating through strategic planning.
• For sustainability high corporate level, risk perceptions and sustainable development awareness institution.
• Risk management guidelines, reports and best practices determination.
• A general risk terminology and language is developed.
• Abilities and capabilities of organization institution.
• Development and research.
• System staffing, design and funding.
• Regarding the fundamentals training and education.
• Risk profile of corporate sustainability’s institution (T. Hikmet Karakoc, 2008).

Step 3-

• ERM function’s establishment.
• In organization committee the ERM’s place.
• Roles as well as responsibilities assignment.
• CSM philosophy’s establishment.
• Suitable CSMIS’s establishment.
• Reporting line and format’s establishment.
• CSM and its associated system’s updation and enhancement.
• The effective, well-timed data flow, feedback reporting and line measurements are offered (Ljubljana, 2008).

Step 4-

• Best management, guidelines, sustainability, surveys, risk management framework and sustainable development’s analysis as well as reviewing.
• Analysis tools, models and method’s identification.
• For the risks assess, prioritize and identify.
• Key risks and capabilities analysis.
• Strategies as well as design capabilities institution.
• Respective to triple bottom line risks classification.

Step 5-

• Risk mapping and selection for agreeable responses of risk.

Step 6-

• Constant monitoring and review function’s institution for managing the system efficiency as well as workable level in developed conditions.
• Continuity offered for CS based system of ERM and its development.
• For new as well as developing risks and its sources the CSM process has to restart on loop.