Well, if you ask me regards 'Casa del Libro' case..
firstly, whether I would stick to the previously developed UNIX platform, or switch to the new Microsoft one.. Then I can say that I will switch to the new Microsoft platform due to below reasons.
1) Design :
New Microsoft platform which is simple & more focus on its origin function than previously developed UNIX platform which is more complex & redundant.
2) Cost for maintenance & development :
New platform costs lower (within a reasonable cost control) vs. huge cost in mantenance & development for UNIX platform. (+ already invested in licenses and integration as well)
3) Others :
Previosuly developed UNIX platform was recommended by analyst due to robust enough to sustain a huge number of transactions. However, risk is associated with potential need to rescale & redesign. Also, I believe that it is important for system to reflect new CEO’s vision/strategy so that company can move forward with coherent policy.
Secondlly, the most relevant criteria that I considered to make my decision to switch to the new Microsoft platforms are as following.
- Long-term maintenance cost :
Platform is not disposable, so we need to maintain continuously – which definitely cost for maintenance. From long-term perspective, total cost would be increased if we stick with UNIX platform even excluding initially invested cost for license and integration for UNIX platform.
- User-friendly platform :
If there is redundancy and complex to use, users will be inefficient in a way for cost and time. This will result in the loss of company growth.
In a nut-shell, considering opportunity cost for my decision, I will strongly recommend to switch to the new Microsoft platform from long-term perspective.
lunes, 21 de junio de 2010
Does Tesco enjoy an IT-generated competitive advantage?
My answer is ‘yes, Tesco has enough competitive advantages generated by IT’, because of 1) its solid database about customers driven by ‘Clubcard’ strategy, and 2) centralized platform with common business process (e.g software for Finance, Purchasing, HR, IS, etc.) across the world.
Tesco, about ninety-year-old successful retail chain, started from England with motto ‘Pile it high, sell it cheap’. At first stage, Tesco sought for high profitability focusing on mass production and low price (at the same time, considering RPM (Resale Price Maintenance) to protect suppliers as well). Later on, Tesco started to invest on computerized checkout system to reduce customers waiting times and provide more convenience to them.
1) Solid database about customers driven by ‘Clubcard’
In 1995, Tesco launched ‘ClubCard’, first supermarket loyalty program in London. This launch strategy, initially, was considered a reward to frequently purchasing customers. In addition to this, more important achievement from this is , actually, let Tesco enable to gather information regards customers (what kind of products/how much/how often customers purchase depend on their gender, ages, income, etc.), to analyze these information for its strategy development . Well, at first, it seemed like there was more negative impact (such as cost increase by call center, update of POS technology & supporting computer system). However, after a few months, it proved that ‘ClubCard’ strategy worked well by increased Tesco’s market share. Since Tesco knew the pattern of customers purchasing behavior, Tesco was able to segment its customers and to target them with proactive strategy on price/promotion/distribution. Beyond sales increase, ‘Clubcard’ brought Tesco to move from off-line retail shopping to on-line (web based) with its Tesco Direct service . In 2001, Tesco proved again their success on e-grocery shopping, whereas its competitors went to bankrupt.
2) Centralized platform with common business process across the world
Besides its growth in England, Tesco has started to expand its business toward overseas. And Tesco’s centralized IT infrastructure (the network from Cable & Wireless, which connects more than 14 countries) made this international expansion happen by linking Financial software (eg. invoicing), HR software, Purchasing system and Management Information System globally.
Tesco is challenging to figure out how they will continue the growth in the matured market, and how they will differentiate themselves to the customers in various markets from England to Asia or USA. I believe above competitiveness of Tesco will strengthen Tesco’s IT capability so that they can keep their position on ‘on-line grocery shopping’ as a first-mover with advantages.
Tesco, about ninety-year-old successful retail chain, started from England with motto ‘Pile it high, sell it cheap’. At first stage, Tesco sought for high profitability focusing on mass production and low price (at the same time, considering RPM (Resale Price Maintenance) to protect suppliers as well). Later on, Tesco started to invest on computerized checkout system to reduce customers waiting times and provide more convenience to them.
1) Solid database about customers driven by ‘Clubcard’
In 1995, Tesco launched ‘ClubCard’, first supermarket loyalty program in London. This launch strategy, initially, was considered a reward to frequently purchasing customers. In addition to this, more important achievement from this is , actually, let Tesco enable to gather information regards customers (what kind of products/how much/how often customers purchase depend on their gender, ages, income, etc.), to analyze these information for its strategy development . Well, at first, it seemed like there was more negative impact (such as cost increase by call center, update of POS technology & supporting computer system). However, after a few months, it proved that ‘ClubCard’ strategy worked well by increased Tesco’s market share. Since Tesco knew the pattern of customers purchasing behavior, Tesco was able to segment its customers and to target them with proactive strategy on price/promotion/distribution. Beyond sales increase, ‘Clubcard’ brought Tesco to move from off-line retail shopping to on-line (web based) with its Tesco Direct service . In 2001, Tesco proved again their success on e-grocery shopping, whereas its competitors went to bankrupt.
2) Centralized platform with common business process across the world
Besides its growth in England, Tesco has started to expand its business toward overseas. And Tesco’s centralized IT infrastructure (the network from Cable & Wireless, which connects more than 14 countries) made this international expansion happen by linking Financial software (eg. invoicing), HR software, Purchasing system and Management Information System globally.
Tesco is challenging to figure out how they will continue the growth in the matured market, and how they will differentiate themselves to the customers in various markets from England to Asia or USA. I believe above competitiveness of Tesco will strengthen Tesco’s IT capability so that they can keep their position on ‘on-line grocery shopping’ as a first-mover with advantages.
lunes, 14 de junio de 2010
Should companies adapt to ERP or not?
Let’s start from what is ERP! According to Wikipedia, Enterprise resource planning (ERP) is an integrated computer-based system used to manage internal and external resources including tangible assets, financial resources, materials, and human resources. It is a software architecture whose purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. ERP is used in various departments – Purchasing, Human Resource, Manufacturing, Finance and etc. In my previous company, we also used SAP for accounting and inventory control purpose.
Having said that, ERP is designed to cut cost of company, reduce unnecessary data maintenance and help quick decision-making of management. (Can find more pros from this website.) Sounds like it is good for all, isn’t it? Therefore, is ERP is sine qua non to adapt for all companies?
My answer is NO! ERP is the system to support business process around the world, but it needs to be customized to each company. Each company has unique demand and not all functions of ERP are required to every company, which means that some level of modification should be accompanied. Therefore, if the company doesn’t have enough scale to start this system and maintain regularly (Software upgrade cost is quite costly.) and doesn’t have qualified manpower to work on this, then better to reconsider of usage of ERP. If only becuase other companies have using this and this is the global trend so that companies decide to adapt this, it won't work as it is supposed to.
It doesn’t sound clear, but surely whether adapt or not is totally up to the circumstance of company. Also, even if companies decide to adapt, they should tailor ERP to their company's own system.
Ciao
E
Having said that, ERP is designed to cut cost of company, reduce unnecessary data maintenance and help quick decision-making of management. (Can find more pros from this website.) Sounds like it is good for all, isn’t it? Therefore, is ERP is sine qua non to adapt for all companies?
My answer is NO! ERP is the system to support business process around the world, but it needs to be customized to each company. Each company has unique demand and not all functions of ERP are required to every company, which means that some level of modification should be accompanied. Therefore, if the company doesn’t have enough scale to start this system and maintain regularly (Software upgrade cost is quite costly.) and doesn’t have qualified manpower to work on this, then better to reconsider of usage of ERP. If only becuase other companies have using this and this is the global trend so that companies decide to adapt this, it won't work as it is supposed to.
It doesn’t sound clear, but surely whether adapt or not is totally up to the circumstance of company. Also, even if companies decide to adapt, they should tailor ERP to their company's own system.
Ciao
E
domingo, 13 de junio de 2010
Your comapny can be on the same place of Dell Hell...
How many of you have ever complained to the company through a call or e-mail after you found something wrong from the product that you bought or the service that you received?
In my case, I am a very nice customer (superficially or at least from the perspective of companies) because I don’t face with them to complain about my unpleasurable experiences due to their products/service. On the other hand, there are dozens of people who speak up – either directly or indirectly to the company to improve. Well, if these companies listen customers’ complain and fix their issues right away, the story like ‘Dell Hell’ won’t happen. Dell didn’t have to lose their customers and didn’t have to try rebuilding their brand image for a long time.
Problem:
The problem was so obvious and simple. One user of Dell company, Jeff Jarvis, blogged about his experience of Dell Service center. (* other related article)
Cause :
Personally, I believe that was not really the matter of technical problem itself. Every product can have an error regardless of its quality or price. The thing was that 1) Dell neglected the importance of direct & accurate communication with customers. If callers were not capable of being fluent in communication, Dell should prepare training program for them or hire applicable people to handle. This issue is related with the importance of A/S (after sales). Companies sometimes more consider selling products/services than taking care of customers after their purchasing. From my experience in automotive company, after sales is much crucial factor for companies’ success to build long-term relationship with their customers. Once companies lose their credibility on their products due to above reasons, customers won’t be back no matter how loyal they are. 2) Dell missed timing to react to the dissatisfied customers with their product. If Dell had a sense of urgency on this issue, and put an effort to make its customers happy with its product, it would have kept its loyal customers continuously. 3) Surprisingly, Dell wasn’t aware of the power of blog (internet users). Dell didn’t know how much people (or customers) are exposed to the word of mouth. Dell should’ve recognized that bad news is spread much faster than good news.
Recommendation :
It’s easy to say, but difficult to implement. Still many companies put less priority on customers’ satisfaction, and care more of cost reduction, better quality and higher profit. However, I would like to recommend to companies, saying that “Put yourself (Dell) into customers’ shoes”. 1) Listen what customers want. They want to be cared immediately, and want to listen feedback from companies what’s going on their products/service. 2) Develop direct links to customers community (e.g company blog), and let the complain circle inside of the company. 3) Don’t be afraid to admit its mistake/error, do apologize to customer and make improvement.
I believe that customers will be attracted to 2nd quality product with 1st customer service than 1st quality product with 2nd customer service.
In my case, I am a very nice customer (superficially or at least from the perspective of companies) because I don’t face with them to complain about my unpleasurable experiences due to their products/service. On the other hand, there are dozens of people who speak up – either directly or indirectly to the company to improve. Well, if these companies listen customers’ complain and fix their issues right away, the story like ‘Dell Hell’ won’t happen. Dell didn’t have to lose their customers and didn’t have to try rebuilding their brand image for a long time.
Problem:
The problem was so obvious and simple. One user of Dell company, Jeff Jarvis, blogged about his experience of Dell Service center. (* other related article)
Cause :
Personally, I believe that was not really the matter of technical problem itself. Every product can have an error regardless of its quality or price. The thing was that 1) Dell neglected the importance of direct & accurate communication with customers. If callers were not capable of being fluent in communication, Dell should prepare training program for them or hire applicable people to handle. This issue is related with the importance of A/S (after sales). Companies sometimes more consider selling products/services than taking care of customers after their purchasing. From my experience in automotive company, after sales is much crucial factor for companies’ success to build long-term relationship with their customers. Once companies lose their credibility on their products due to above reasons, customers won’t be back no matter how loyal they are. 2) Dell missed timing to react to the dissatisfied customers with their product. If Dell had a sense of urgency on this issue, and put an effort to make its customers happy with its product, it would have kept its loyal customers continuously. 3) Surprisingly, Dell wasn’t aware of the power of blog (internet users). Dell didn’t know how much people (or customers) are exposed to the word of mouth. Dell should’ve recognized that bad news is spread much faster than good news.
Recommendation :
It’s easy to say, but difficult to implement. Still many companies put less priority on customers’ satisfaction, and care more of cost reduction, better quality and higher profit. However, I would like to recommend to companies, saying that “Put yourself (Dell) into customers’ shoes”. 1) Listen what customers want. They want to be cared immediately, and want to listen feedback from companies what’s going on their products/service. 2) Develop direct links to customers community (e.g company blog), and let the complain circle inside of the company. 3) Don’t be afraid to admit its mistake/error, do apologize to customer and make improvement.
I believe that customers will be attracted to 2nd quality product with 1st customer service than 1st quality product with 2nd customer service.
domingo, 6 de junio de 2010
Facebook is going to where?
Before I come to Madrid, I was aware of Facebook, which is one of the biggest web-based SNS(social network service), but didn’t use this. Frankly speaking, I didn’t feel the necessity of usage since there is ‘Cyworld’ in Korea, which is similar with Facebook, but more user-friendly system (at least from my point of view at that time...) – e.g : function to edit pictures, to show my pictures only to designated groups, to play my selected music on-line, and to purchase on-line money (called ‘Dotori’) so that I can buy music, decorate my webpage with skins and accessories. However, now I am spending a huge amount of time on Facebook and actually only visiting my Cyworld webpage periodically. Guess why I suddenly change my mind? I think my responses to this question are related with ‘where Facebook will be in near future’.
To think of ‘where Facebook will be in near future’, I would like to touch upon strengths of Facebook.
First, Facebook unites individuals. Each individual is able to communicate with great efficiency. It's nothing new but put Facebook in prominent position. Users can create events and invite people without any cost and check this in real time. Just think of ourselves in IE. It’s amazing that a lot of students gather upon the invitation through Facebook. This is a great interaction tool. Also, I strongly believe that people will not change their networking tool easily since they already have all contact there, which means that Facebook won’t lose its customers easily. Moreover, since users want to connect with their friends who haven’t started to use Facebook, they will recommend to use this. We can’t ignore the effect of attracting new customers by word-of-mouth.
Secondly, Facebook is a innovative marketing tool for companies or schools cause they can reach to their target customers with non-traditional way so that it enables companies or schools to lead a great ripple effect into their markets.
I was thinking to suggest to adapt some of ‘Cyworld’ model since it contains various factors in its business and has been shown as profitable model – such as providing digital goods (background music & skin for individual’s mini homepage, personalized avatars, gifts for friends and casual games). On-line currency (buying Dotori) is supported by a variety of payment systems (mobile, credit, bank transfer, etc.) and it has helped lower the payment and monetization barriers dramatically. However, I found out the information though one website that Facebook earns revenue through advertising business, virtual goods & gift shop, and Facebook credits as well. Here, we confirmed that Facebook is on the right track.
Considering above two issues (can call them as strengths -unite individual users and provide marketing tool to business) of Facebook in addition with its profitable business model, Facebook will continue its business. On the other hand, Facebook should continuously watch out its privacy issue, and competitors who are chasing with similar platform. Other than that, I have a positive forecast for the sustainable growth of Facebook in near future.
To think of ‘where Facebook will be in near future’, I would like to touch upon strengths of Facebook.
First, Facebook unites individuals. Each individual is able to communicate with great efficiency. It's nothing new but put Facebook in prominent position. Users can create events and invite people without any cost and check this in real time. Just think of ourselves in IE. It’s amazing that a lot of students gather upon the invitation through Facebook. This is a great interaction tool. Also, I strongly believe that people will not change their networking tool easily since they already have all contact there, which means that Facebook won’t lose its customers easily. Moreover, since users want to connect with their friends who haven’t started to use Facebook, they will recommend to use this. We can’t ignore the effect of attracting new customers by word-of-mouth.
Secondly, Facebook is a innovative marketing tool for companies or schools cause they can reach to their target customers with non-traditional way so that it enables companies or schools to lead a great ripple effect into their markets.
I was thinking to suggest to adapt some of ‘Cyworld’ model since it contains various factors in its business and has been shown as profitable model – such as providing digital goods (background music & skin for individual’s mini homepage, personalized avatars, gifts for friends and casual games). On-line currency (buying Dotori) is supported by a variety of payment systems (mobile, credit, bank transfer, etc.) and it has helped lower the payment and monetization barriers dramatically. However, I found out the information though one website that Facebook earns revenue through advertising business, virtual goods & gift shop, and Facebook credits as well. Here, we confirmed that Facebook is on the right track.
Considering above two issues (can call them as strengths -unite individual users and provide marketing tool to business) of Facebook in addition with its profitable business model, Facebook will continue its business. On the other hand, Facebook should continuously watch out its privacy issue, and competitors who are chasing with similar platform. Other than that, I have a positive forecast for the sustainable growth of Facebook in near future.
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