“Offshoring” is an article I found on the economist.com web site. It differentiates outsourcing with offshore outsourcing and offshoring. Outsourcing is when a company decides to shift or hand one of its functions to another company. Offshore outsourcing is when this is done with another company overseas. Many claim this is harmful to the country because jobs are being shifted elsewhere. In the U.S. it started with manufacturing and labor intensive jobs. It then moved to service jobs like customer support. India is a main destination for these call centers. Offshoring though, is when a company transfers one of its functions to another one of its extensions in another country. Economists argue, according to the article, this is a win-win situation. The country that sends their jobs benefits from lower costs and the country that receives the jobs benefits from an increase in their job sector. The panic of the departure of jobs has calmed down as many companies are even starting to bring the jobs backs. The article talked about the difficulty of a customer trying to explain localised problems to someone in a different time zone and possibly even a different climate. I think it may not be a win-win situation. The country that gains the jobs benefits more than the country that looses them. Even though the country who has outsourced may increase in profitability, in the long run it will end up hurting it. Less people in the labor force will reduce income and have harmful effects to the economy and may even experience a contraction.
REFERENCE:
October 28, 2009, Offshoring, accessed on November 16, 2009 on economist web site: http://www.economist.com/research/articlesBySubject/displaystory.cfm?subjectid=3282216&story_id=14301171
“IT’s biggest project failures — and what we can learn from them” is an article I found on computerworld.com. I thought it was interesting since it lists some of the biggest IT project failures. One of them was in Canada. In 1997, Electronic Data Systems started working on a Canadian gun registration system. The original planned cost was only 2 million. 119 million for implementation and 117 million from gun registry fees. Just in the first two years there were over 1000 change orders from interest and lobby groups. By 2001 the costs were up at 688 million. Not only that, maintenance costs alone were at 75 million a year. It was estimated that the project would be costing about 1 billion dollars by 2004 while only generating revenue of 140 million. It still has not been scrapped! A current project mentioned was one about the upcoming census. In 2006 the U.S. Census Bureau decided to implement handheld devices purchased at about 600 million dollars. This would help automate the 2010 census. As of now, the cost has more than doubled and their use will be curtailed, but the Bureau will still implement the project. After a rehearsal many of the devices failed, froze, and failed to map put coordinates. Some devices had identical id numbers that could turn into overwritten data. The article stated this, “After the rehearsal, a representative of Mitre Corp., which advises the bureau on IT matters, brought notes to a meeting with the bureau’s representative that read, “It is not clear that the system will meet Census’ operational needs and quality goals. The final cost is unpredictable. Immediate, significant changes are required to rescue the program. However, the risks are so large considering the available time that we recommend immediate development of contingency plans to revert to paper operations.’ ” After all the money being spent it would be better to just use paper and pencil. That is an impressive way to spend taxpayer money. The article noted that many of the failures seem to be from governments but that is not the case. Only because they are public figures and regulations require them to publicize their results, do we know of them. Private corporations can disguise failed projects better than the government. \
Widman, Jake, October 9, 2008, IT’s biggest project failures — and what we can learn from them, accessed on November 10, 2009 from computer world web site: http://www.computerworld.com/s/article/9116470/IT_s_biggest_project_failures_and_what_we_can_learn_from_them?taxonomyId=73&pageNumber=4
“My week of recording a ‘digital memory’” is a recap of the writer’s experience recording his life with various media. A month ago or so I first heard about this man that has been doing this for a long time and apparently it has picked up popularity. It involves recording your daily activities with a camera or voice recorder. The writer seems to not have enjoyed his experience and cites several difficulties like having people stare at you weirdly and friends acting out of norm. For example, one of his friends during a car ride decided to name all the landmarks and historical sites. Most of the writer’s complaints come off as whiny. However, the idea of trying to capture your knowledge is there. This got me thinking of the chapter and how companies try to capture their employees’ knowledge. Could they implement these digital memory techniques like using voice recordings to capture thoughts or videos to show day to day operations. In some ways they do. Some companies have training videos where they show trainees how an experienced worker does his job. Doing this by an employee in the way of the article may be practical to show first hand to a novice what day to day operations are like. This whole knowledge capturing may come across as an invasion of privacy. It also feels that companies are treating employees as inhumane and just as simple assets. However, if it wasn’t for the company that maintains and pays these employees, they would not have gotten that experience in the first place.
Sutter, D John, November 3, 2009, My week of recording a ‘digital memory’ ,accessed on November 5, 2009 on CNN website: http://www.cnn.com/2009/TECH/11/03/life.recording.sutter/index.html
“Microsoft to extend warranty against red rings of death to 3 years” is an article about a critical move that Microsoft did to address concerns about its failing Xbox 360. The Xbox 360 was having consistent problems with over-heating that caused many systems to fail. Three red lights would flash on the console and it was quickly named by the community the red ring of death. It was rumored that in a cost-cutting move during the development process, alternative hardware was used that leads to this over-heating. Microsoft quickly recognized this and extended their warranty several times. It eventually led to the 3 year warranty on the red light problem. ” ‘The majority of Xbox 360 owners are having a great experience with their console and have from day one. But, this problem has caused frustration for some of our customers and for that, we sincerely apologize,’ said Robbie Bach, president of Microsoft’s Entertainment & Devices Division. ‘We value our community tremendously and look at this as an investment in our customer base. We look forward to great things to come.’ ” Microsoft fixes or replaces any console that has undergone this failure. I think this is a great example of CRM. Microsoft made a huge mistake that could have cost their reputation and huge losses in sales. They will of course incur a loss with this move, but customer satisfaction and loyalty will increase. I was interested in this subject because I am an owner of a Xbox 360 and have gotten the red lights. I was extremely alleviated to find I was still under warranty since a new system is hundreds of dollars. I called Microsoft and a box was sent to my house. I sent in the system and in several weeks it was returned with no problem. The whole process was about 1 month which was frustrating but they also sent a 2 month xbox live card. So far I was satisfied by the process but several days ago I got the lights again. Luckily I am in the last 2 months of my warranty but this raises concerns of what kind of repair job they are doing. Are they making the same mistake again and trying to cut corners to save money?
Kuchera, Ben, Microsoft to extend warranty against red rings of death to 3 years, July 5, 2007, accessed on October 27, 2007 on Arstechnica web site: http://arstechnica.com/gaming/news/2007/07/microsoft-to-extend-warranty-against-red-rings-of-death-for-3-years.ars
“Report: The Top Five Supply Chain Management Vendors” is an article I found on CIO.com. It reports on how well the top five SCM software vendors did in 2007. SCM software vendors are doing very well with revenues up from 5.1 billion to 6 billion from 2006 to 2007. Thats an increase of 17.6 percent. This does not include hardware or professional services. SCM software help create better visibility and planning the article claims. “Demand for SCM vendor services from companies such as SAP, Oracle, JDA Software, Ariba and Manhattan Associates is also on the increase.” Companies are trying to find new ways to better compete and deal with demand. I wonder how well they are currently doing. I would assume the demand for this software should stay steady since companies now need to find better ways to efficiently cut costs and reduce their inventories while keeping up demand. Keeping inventories low will save cost but there is danger in not having enough. In times like these demand may be varied highly so having a good SCM will help when demand spikes come out of nowhere. Thay way those sales will not be lost. The top five SCM software vendors for 2007 were SAP, Oracle, JDA software, Ariba, and Manhattan Associates. Their respective revenues were 1.3 billion, 955 million, 230 million, 160 million, and 152 million. Their respective market share was 22.4 percent, 16 percent, 3.9 percent, 2.7 percent, and 2.6 percent. Clearly the top 2 SAPand Oracle are the strongest by far. I thought this article was interesting since these are the companies you will likely seek out in purchasing a software to implement SCM.
REFERENCE: Wailgum, Thomas, June 11,2008, Report: The Top Five Supply Chain Management Vendors Accessed on October 15, 2009 from CIO web site: http://www.cio.com/article/391613/Report_The_Top_Five_Supply_Chain_Management_Vendors
“The Google Android party has begun” is an article I found on CNN. Android, Google’s operating system for mobile phones is starting to pick up. There have been over nine phones announced to carry the OS. Also in the next coming weeks different carriers will begin to offer Android phones. Previously, only T-mobile carried them. In the next couple of weeks Sprint will begin to offer several phones and weeks after that Verizon wireless is expected to release several as well. Even ATT has been rumored to release one . Phone makers see this opportunity to be able to compete against Apple’s I-phone and the Blackberry. Microsoft is seen as another potential with its Windows Mobile 6.5 but has been criticized and many device makers are gearing their efforts with the Android system. The competition in the wireless phone market is growing. Android phones will also have apps that are open to third party developers. There is even a Google Android Market that is like the Appstore. This benefits us as consumers since we will be getting more choices as opposed to the Iphone which stands alone at the top of the smart phone market. This will lead to lower prices and can be a segment of our economy that is seeing expansion and investment in these projects. Wireless smart phones are being pushed into our lives. They allow business to be done from outside a set building and on the go. They are impacting and will continue to impact our business life.
REFERENCE: Reardon, Marguerite, October 08, 2009. The Google Android party has begun Accesed on October 8,2009 from CNN web site: http://www.cnn.com/2009/TECH/10/08/cnet.google.android/index.html
Kirk, Jeremy September 18, 2009. UK Politicians Question the Safety of Mega Databases Accessed on October 1, 2009 from CIO website : http://www.cio.com/article/502475/UK_Politicians_Question_the_Safety_of_Mega_Databases
“Enterprise Architect :Why you need an enterprise architect and what to look for in one.” is an article I found on CIO.com a website geared towards CIOs. After reading the chapter I wasn’t sure what exactly a EA was. It sounded to me almost like a CIO. I thought reviewing an article about EAs would clear my doubt, which it did. Basically, a EA is a person who makes the business’ strategies and goals fit into their IT systems or enterprise architectures. They don’t necessarily program all the applications but they oversee them and make sure they are built with quality, in the most timely manner and with re usability in mind. They have to understand the business and be able to translate it into IT. Also, communication skills are very important. They will need to talk to technical developers and various other personnel. A minimum degree would be a B.S. but a MS or a PhD are welcome. A MBA would be great for a EA, the article stated. Their salary was said to be for a junior EA around 130,ooo and about 150,000 for a senior EA which is right in line with the book’s stated 150,000 plus salary. This position is relatively new but since the growing amount of failures in IT projects EA are necessary to oversee the completion of these projects and to help make plans for new ones. The article suggested in picking a EA to not go for the one that says that they have achieved 100% of their projects but for the one that admits to their failures and has learned from them. The article made it more clear as to what an EA is and his job description. A CIO ultimately has the authority in the IT world but EAs help manage different projects and pay attention to the details to make sure all the technical work is being done with the right quality. REFERENCE Martens, China Augaust 03, 2007. Enterprise Architect :Why you need an enterprise architect and what to look for in one. Retrieved September 22, 2009 from CIO web site: http://www.cio.com/article/127751/Enterprise_Architect?page=1
“Cybercrime: A secret underground economy” is an article I found on the CNN website. It deals with cybercriminals and how they sell the information they steal. Cybercrime is an ever increasing illegal business. Since the payoffs can be very rewarding the number of new internet security threats rose by threefold last year to 1.7 million. Estimates of cybercrime make it a billion dollar business and Symantec (maker of Norton anti-virus) reports that if every stolen credit card and bank account would have been wiped clean criminals would have netted around 8 billion dollars.
The article talked about where these criminals exchange stolen information. Cybercriminals will set up hacker channels on invitation-only Internet Relay Chats for a couple of days. They will then take them down to avoid being caught. These chats can support up to 90,000 cybercriminals. These chats serve as a black market where information is traded in various amounts. One of the cheapest commodities can be credit cards. The article says that when bought in bulk they can average as low as 98 cents each. Full identities can go for as low as 10 dollars. There are even third parties that validate information. For example, a seller and buyer will contact this party. For a fee they will test out the information and assure that is is valid. Once money is stolen it is given to “mules” who most of the time are unaware and are payed to wire money over seas.
Law enforcement has been cracking down on cyber crime and mules are usually the first to be paid a visit. Many will be intimidated into helping law enforcement by being offered to have their sentence reduced. Also many agents are posing undercover and are part of these black market chats. The article gave an example of an informant who worked the FBI but ended up double crossing them and helping fellow hackers avoid detection and carry out the TJ Maxx theft where 45 million credit card numbers and information of around 450,000 customers was stolen in 2007.
Cyber crime is a serious threat. Customers will be scared of doing business online if they don’t trust a company’s security. This article exposed some of the dangers and potential threats that will face online business now and in the future. I expect these crimes to only get worse as new technology comes out every day.
Goldman, David (September 17, 2009). Cybercrime: A secret underground economy. Retrieved on Septmeber 17, 2009 on CNN web site: http://money.cnn.com/2009/09/16/technology/cybercrime/index.htm?postversion=2009091613
“Going to Extremes to Build App Store Buzz”, is an article about how app sellers at the App Store for the I-phone can go to great lengths to get a positive review of their app. Traditionally buyers of the app would review it and post whether they had a positive or negative experience. Unfortunately the trend has been to have app seller’s contract with people to give positive reviews to their app and even negative ones to the competition.
Reviews can be very important for the bottom line. A good review is the second most important factor to get a customer to pay for an app. The first being a free demo. App sellers are hiring public relations agencies that get the word out on the app. The article claims that a PR campaign can be anywhere from 5,000 to 50,000 dollars. While the app market is increasingly becoming more and more saturated, there is still a lot of money there. “Pangea generated $100,000 from 10 App Store games in July, compared with $750,000 from only two games available in July 2008, just after the store opened.”
Some of these PR agencies resort to questionable tactics by having employees posting positive reviews. Reviews on apps at the Apple store are permanent so whether for good or bad they can really shape the future of sales for all the apps.
The article touched on a certain kind of e-business. A nice feature of online purchasing is getting to know what other consumers feel through reviews. Also you can research all the competitors’ prices and make sure you are getting the best deal available. E-business has given a lot of consumer purchasing power.
REFERENCE: Going to Extremes to Build App Store Buzz, retrieved September 9, 2009 from Business Week web site: http://www.businessweek.com/technology/content/sep2009/tc2009097_254213.htm
Robots and other forms of A.I. have come a long way in the past 50 years. Its use in business can be seen from Decision Support Systems to robots cleaning carpets. Also, A.I. is used heavily in the investment in stocks. A.I. supported software can trade faster than any human and spot trends in huge amounts of data that no human compares. “Scientists Worry Machines May Outsmart Man”, is an article that explains some of the capabilities of A.I. The main point is that some see a point in time where machines will surpass man and create social disruptions and may even have dangerous consequences.
The fear of some is not so extreme and they worry about its social implications. These machines will take the jobs of many people and may hurt the overall economy. Examples were, self-driving cars, software-based assistants, and service robots. Other fears include criminals using A.I. to pass of as humans to commit crimes.
Others are more fearful and believe in a point in time where machines will make even smarter machines and go out of our control. They term this point “Singularity.” Many view these beliefs as nonsense and fiction.
A.I. is an interesting subject. Business can benefit greatly from it. I liked how the article pointed out that it might hurt the economy by getting rid of these jobs. In the stock market world the demand for human bidders will go down because software will outsmart and outbid them. A.I. in DSS maybe even get to a point where executive positions and managerial positions may not be needed. It would be interesting to work and have your boss or the CEO be a machine.
REFERENCE: Scientists Worry Machines May Outsmart Man, retrieved September 02, 2009 from NY Times web site :http://www.nytimes.com/2009/07/26/science/26robot.html
“CIOs: Let’s Make A Deal!”, talks about how important it is for CIO’s to make deals with software providers right now. Makers of servers and software, that MIS use, are hurting because of the economic downturn. Companies are not ready to upgrade their systems so investment in this sector has gone down. Cost cutting has gained the number one priority over performance.
The article talks about how the technology sector has not been one of the bailed out sectors, like finance and the new vehicle market. It attributes this to corporate profit reports that indicate they are relatively healthy. However, this profitability has been achieved through layoffs, eliminating pay increases, and forcing employees to take days off without pay (furlough days). According to the article, this will eventually ruin a company because good workers will be forced to leave elsewhere. Not only that, morale among workers may go down and in turn productivity will follow. Its only a temporary fix that may end up harming the company in the long run.
The article then goes on to point that CIO’s time to do deals is now. They are in the bargaining position and can set their companies with updated equipment in time for the recovery. I thought it was interesting since it let me know what a common function a CIO has to do. Not only that the article touched on the Five Forces Model. In this case CIOs have the buyer power since the suppliers are desperate to generate sales.
REFERENCE: CIOs: Let’s Make A Deal, Retrieved September 1, 2009 from Forbes Web site: http://www.forbes.com/2009/08/08/economy-bargaining-vendors-technology-cio-network-bargaining.html
