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Internet economy not only permits companies of
all sizes to compete to compete on a more equal footing, but also
accelerates the need for business to adapt, to keep up with rapid changes in
the marketplace.
IT-enabled Enterprise Resources Planning (ERP)
and Customer Relationship Management (CRM) systems establish direct customer
and business-to-business (B2B) relationships and create the opportunity to
serve existing and new markets faster and more efficiently.
ERP systems:
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offer a single repository for
information on all business functions - human resources, manufacturing,
inventory, marketing, sales, accounting and tax
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allow all levels of a business to obtain
real-time management information for their area of responsibility.
Tips for Successful Integration of Technology into Business Operations:
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Clearly articulate the benefits
you expect from your system
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Conduct an independent risk assessment of the
new system's implementation
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Designate and maintain control over inherently
strategic or "core competence" functions and identify opportunities to
outsource other non-value adding functions
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Keep monitoring the performance of the
outsourcer - you may relinquish some controls but not your
responsibilities
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Make the necessary changes in the company's
control structure when you implement an e-business or a
business-to-business initiative
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Designate a manager to be responsible for
ensuring the project's strategic objectives are met on time and on budget
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Break the project into manageable components
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Plan and implement a new system quickly enough
to keep up with today's fast-paced business environment
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Ensure that you have appropriate human and
financial resources, and backup plans for both
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Install the new system that allows you to
interface directly with your key business partners when needed
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Pay particular attention to the interfaces
between legacy systems or third parties that connect to your company's new
system
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Install only the functionality you need, rather
than everything that comes with a package
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Monitor and track all system problems and events
Why Outsourcing:
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Need to concentrate more on
core competence functions
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Increase in the number and capabilities of
external suppliers
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Difficulty in keeping up with the latest
advances in technology and other innovations
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Making the investments necessary to continually
be on the cutting edge is off-putting
Benefits of Outsourcing :
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A way to speed up time to
market by working with a partner with the expertise and capacity to bring
new products and services to market quicker
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Opportunity for firms entering new markets to
execute quickly with an experienced partner
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Reduction of investments in non-critical assets
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Ability to focus on core competencies and build
those focused world-class skills that directly add value to customers
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