As a student, you were invited by the Dean of the Institute of Computing to attend a seminar-workshop on information systems planning with some of the faculty members. In one of the sessions, a discussion of outsourcing came up. You have been asked to present your evaluation about outsourcing the information systems functions of the school.
Required:
You are to take a position- outsource or in-source and justify your position. (3000words)
Before anything else let me differentiate Outsourcing to Insourcing. And I will site advantages and disadvantages of both type of sourcing.
First, according to Wikipedia.org the definition of outsourcing is defined below.
Outsourcing is subcontracting a process, such as product design or manufacturing, to a third-party company. The decision to outsource is often made in the interest of lowering cost or making better use of time and energy costs, redirecting or conserving energy directed at the competencies of a particular business, or to make more efficient use of land, labor, capital, (information) technology and resources. Outsourcing became part of the business lexicon during the 1980s. It is essentially a division of labor. Out sourcing in the information technology field has two meanings. One is to commission the development of an application to another organization, usually a company that specializes in the development of this type of application. The other is to hire the services of another company to manage all or parts of the services that otherwise would be rendered by an IT unit of the organization. The latter concept might not include development of new applications.
There are many reasons that companies outsource various jobs, but the most prominent advantage seems to be the fact that it often saves money. Many of the companies that provide outsourcing services are able to do the work for considerably less money, as they don't have to provide benefits to their workers and have fewer overhead expenses to worry about.
Outsourcing also allows companies to focus on other business issues while having the details taken care of by outside experts. This means that a large amount of resources and attention, which might fall on the shoulders of management professionals, can be used for more important, broader issues within the company. The specialized company that handles the outsourced work is often streamlined, and often has world-class capabilities and access to new technology that a company couldn't afford to buy on their own. Plus, if a company is looking to expand, outsourcing is a cost-effective way to start building foundations in other countries.
There are some disadvantages to outsourcing as well. One of these is that outsourcing often eliminates direct communication between a company and its clients. This prevents a company from building solid relationships with their customers, and often leads to dissatisfaction on one or both sides. There is also the danger of not being able to control some aspects of the company, as outsourcing may lead to delayed communications and project implementation. Any sensitive information is more vulnerable, and a company may become very dependent upon its outsource providers, which could lead to problems should the outsource provider back out on their contract suddenly.
While outsourcing may prove highly beneficial for many companies, it also has many drawbacks. It is important that each individual company accurately assess their needs to determine if outsourcing is a viable option.
Advantages of Outsourcing
1. Focus on Core Activities
In rapid growth periods, the back-office operations of a company will expand also. This expansion may start to consume resources (human and financial) at the expense of the core activities that have made your company successful. Outsourcing those activities will allow refocusing on those business activities that are important without sacrificing quality or service in the back-office.
Example: A company lands a large contract that will significantly increase the volume of purchasing in a very short period of time; Outsource purchasing.
2. Cost And Efficiency Savings
Back-office functions that are complicated in nature, but the size of your company is preventing you from performing it at a consistent and reasonable cost, is another advantage of outsourcing.
Example: A small doctor’s office that wants to accept a variety of insurance plans. One part-time person could not keep up with all the different providers and rules. Outsource to a firm specializing in medical billing.
Economies of scale save money when unit costs go down as volumes increase. External service providers can achieve economies of scale unavailable to individual firms when they combine the volumes of multiple companies.
In manufacturing, for example, an external vendor may have a shop that specializes in a certain type of machining. The machinery represents a significant capital investment. If larger machines are more efficient, and if they can be used to produce any sort of parts for any customer, then this vendor may very well produce parts at a lower cost than a firm could by setting up such a shop internally.
Economies of scale are not limited to physical processes. Other precious assets -- including money, relationships, and people -- may be shared.
The pharmaceuticals industry can be used to illustrate economies of scale in relationships. Clinical trials of experimental drugs require just the right patients -- healthy in most all respects but the one indication being treated, and willing to submit themselves to experimentation. It takes a significant investment of time and money to develop relationships with the hospitals and clinicians (and the triage nurses in their emergency rooms) that supply patients for the trials.
Clinical trials also require just the right medical investigators -- doctors and medical researchers who are well respected in their industries. Again, it takes size to attract the best investigators. The most sought-after investigators look for organizations that can supply them with interesting and publishable research projects and with support services (such as data collection and well-managed processes) that make their jobs easier and their results more reliable.
To be specific, there are three conditions that must be met before outsourcing saves money:
1. Economies of scale must exist. That is, there must be some economic advantage to larger size or greater numbers before outsourcing can pay off; for example, unit costs must drop as volumes increase.
2. The economies must be accessible across corporate boundaries. That is, savings only occur if outsourcers can combine the volumes of multiple clients.
For example, it's easy for many companies to share the huge fixed costs of a telecommunications infrastructure owned by long-distance carriers. Laying one's own fiber or leasing a private satellite channel is unlikely to be economic, so outsourcing is an obvious choice.
However, outsourcing an IT computer center may not work as well, since hardware may not offer significant economies of scale and many software licenses are corporation-specific.
There are many cases where inter-organizational sharing is possible, but each case must be examined carefully.
3. The savings must be sufficient to outweigh the additional cost of paying other shareholders a profit. Some executives have said that at least a 20% savings (after vendor profit margins) is necessary to compensate the firm for the legal costs and the risks of long-term dependence on people you can’t control.
3. Reduced Overhead
Overhead costs of performing a particular back-office function are extremely high. Consider outsourcing those functions which can be moved easily.
Example: Growth has resulted in an increased need for office space. The current location is very expensive and there is no room to expand. Outsource some simple operations in order to reduce the need for office space for example, outbound telemarketing or data entry.
4. Operational Control
Operations whose costs are running out of control must be considered for outsourcing. Departments that may have evolved over time into uncontrolled and poorly managed areas are prime motivators for outsourcing. In addition, an outsourcing company can bring better management skills to your company than what would otherwise be available.
Example: An information technology department that has too many projects, not enough people and a budget that far exceeds their contribution to the organization. A contracted outsourcing agreement will force management to prioritize their requests and bring control back to that area.
5. Staffing Flexibility
Outsourcing will allow operations that have seasonal or cyclical demands to bring in additional resources when you need them and release them when you’re done.
Example: An accounting department that is short-handed during tax season and auditing periods. Outsourcing these functions can provide the additional resources for a fixed period of time at a consistent cost.
6. Continuity & Risk Management
Periods of high employee turnover will add uncertainty and inconsistency to the operations. Outsourcing will provided a level of continuity to the company while reducing the risk that a substandard level of operation would bring to the company.
Example: The human resource manager is on an extended medical leave and the two administrative assistants leave for new jobs in a very short period of time. Outsourcing the human resource function would reduce the risk and allow the company to keep operating.
Another type of synergy that can cross corporate boundaries is the sharing of risk. In financial circles, this is called the "portfolio effect."
In investing, it's best to diversify your portfolio rather than put all your money in one stock. By spreading your risk, you reduce your total risk.
Why does diversification reduce risk? If the whole market goes down, you'll lose, no matter what you do. But if the market goes up while one company makes some serious mistakes, the rest of your portfolio may still do well, and you are not as vulnerable as you would have been had you put all your money into a single stock.
In business investments, the same is generally true. Outsourcing may permit multiple companies to share risk.
To continue with manufacturing as an example, if all your work is done in one plant, an outage or a labor dispute could put you out of business. If you spread your workload across a number of plants, a labor dispute in one country may not affect the operations of other plants. Thus, you reduce your risk.
In a very large operation, it may be that the company can afford multiple plants. But in smaller companies or in the production of small-run specialty parts -- it may be cheaper to spread the work across a number of existing vendor plants via outsourcing than it is to build a number of small plants yourself.
The biotechnology industry demonstrates the concept of risk-sharing. Investors are reluctant to fund small biotechnology companies to build manufacturing plants for drugs which haven’t yet been approved. But manufacturing is required to produce experimental drugs for clinical trials in order to gain approval.
Bio-tech firms often outsource manufacturing during the clinical-trials phase of development. This demonstrates both economies of scale and risk sharing: The vendor's large plant, shared across a dozen firms at a time, is more efficient than a dozen small plants. Secondly, the risk of building infrastructure that may not be used is shared across many small pharmaceutical firms.
7. Develop Internal Staff
A large project needs to be undertaken that requires skills that your staff does not possess. On-site outsourcing of the project will bring people with the skills you need into your company. Your people can work alongside of them to acquire the new skill set.
Example: A company needs to embark on a replacement/upgrade project on a variety of custom built equipment. Your engineers do not have the skills required to design new and upgraded equipment. Outsourcing this project and requiring the outsourced engineers to work on-site will allow your engineers to acquire a new skill set.
Well-managed outsourcing can enhance the development of employees. Two strategies can accomplish this:
1. Contractors can be used to off-load less interesting "commodity" or end-of-life work, or to handle peak loads. This leaves staff free to pursue new, developmental opportunities. On the other hand, contractors should never be used to perform new, growth-oriented activities while internal staff is left with obsolescent work. This would deny staff learning opportunities, while building dependence on the vendor. Perhaps worse, it sends a message to staff that the company is not willing to invest in their professional growth.
2. Consultants and vendors can be used to bring in new ideas and to train internal staff. It might be useful to distinguish two terms: External "consultants" transfer their skills and methods to improve employees' effectiveness; they teach staff, often while working together on real projects. Consultants may be used by anyone whenever justifiable, since the benefits are lasting.
By contrast, "contractors" simply do work in place of employees. This is sometimes called “staff augmentation.” They should be limited to the commodity work described in point 1.
There are many cases that meet these four criteria where outsourcing pays off. But each case must be examined carefully to make sure the fundamentals are there. Remember: Paying other shareholders a profit margin makes outsourcing inherently more expensive. It's only worthwhile if these other benefits compensate the firm for its added costs
Disadvantages of Outsourcing
• At times, it is more cost-effective to conduct a particular business process, rather than outsourcing it
• While outsourcing services such as payroll processing services and tax preparation services, your outsourcing provider will be able to see your company’s confidential information and hence there is a threat to security and confidentiality in outsourcing
• When you begin to outsource your business processes, you might find it difficult to manage the offshore provider when compared to managing processes within your organization
• outsourcing can create potential redundancies for your organization
• In case, your offshore service provider becomes bankrupt or goes out of business, your organization will have to immediately move your business processes in-house or find another outsourcing provider
• The employees in your organization might not like the idea of you outsourcing your processes and they might express lack of interest or lack of quality at work
• Your outsourcing provider might not be only providing services for your organization. Since your provider might be catering to the needs of several companies, there might be not be complete devotion to you and your company
• By outsourcing, you might forget to cater to the needs of your valuable customers as your focus will be on the business process that is outsourced
• In outsourcing, you may lose your control over the process that is outsourced
• Outsourcing, though cost-effective, might have hidden costs, such as the legal costs incurred while signing a contract between companies. You might also have to spend a lot of time and effort in getting the contract signed
• With outsourcing, your organization might suffer from a lack of customer focus
• There can be several disadvantages in outsourcing, such as, renewing contracts, misunderstanding of the contract, lack of communication, poor quality and delayed services amongst others.
The disadvantages of outsourcing give organizations an opportunity to think about what they are stepping into. However the disadvantages of outsourcing are less than the advantages of offshore outsourcing. When outsourcing, you might not experience any of these disadvantages of outsourcing, if you find a reliable outsourcing partner. Before outsourcing take the interests of your customers and employees into consideration and then make an informed decision. If your organization is genuinely interested in outsourcing, let not the disadvantages of outsourcing stop you.
1. Loss of Managerial Control. Whether you sign a contract to have another company perform the function of an entire department or single task, you are turning the management and control of that function over to another company. True, you will have a contract, but the managerial control will belong to another company. Your outsourcing company will not be driven by the same standards and mission that drives your company. They will be driven to make a profit from the services that they are providing to you and other businesses like yours.
2. Hidden Costs
You will sign a contract with the outsourcing company that will cover the details of the service that they will be providing. Any thing not covered in the contract will be the basis for you to pay additional charges. Additionally, you will experience legal fees to retain a lawyer to review the contacts you will sign. Remember, this is the outsourcing company's business. They have done this before and they are the ones that write the contract. Therefore, you will be at a disadvantage when negotiations start.
3. Threat to Security and Confidentiality
The life-blood of any business is the information that keeps it running. If you have payroll, medical records or any other confidential information that will be transmitted to the outsourcing company, there is a risk that the confidentiality may be compromised. If the outsourced function involves sharing proprietary company data or knowledge (e.g. product drawings, formulas, etc.), this must be taken into account. Evaluate the outsourcing company carefully to make sure your data is protected and the contract has a penalty clause if an incident occurs.
4. Quality Problems
The outsourcing company will be motivated by profit. Since the contract will fix the price, the only way for them to increase profit will be to decrease expenses. As long as they meet the conditions of the contract, you will pay. In addition, you will lose the ability to rapidly respond to changes in the business environment. The contract will be very specific and you will pay extra for changes.
5. Tied to the financial well-Being of another Company
Since you will be turning over part of the operations of your business to another company, you will now be tied to the financial well-being of that company. It wouldn't be the first time that an outsourcing company could go bankrupt and leave you holding-the-bag.
6. Bad Publicity and Ill-Will
The word "outsourcing" brings to mind different things to different people. If you live in a community that has an outsourcing company and they employ your friends and neighbors, outsourcing is good. If your friends and neighbors lost their jobs because they were shipped across the state, across the country or across the world, outsourcing will bring bad publicity. If you outsource part of your operations, morale may suffer in the remaining work force.
The next is Insourcing,
Insourcing is the opposite of outsourcing; that is insourcing (or contracting in) is often defined as the delegation of operations or jobs from production within a business to an internal (but 'stand-alone') entity that specializes in that operation. Insourcing is a business decision that is often made to maintain control of critical production or competencies. An alternate use of the term implies transferring jobs to within the country where the term is used, either by hiring local subcontractors or building a facility.
Insourcing is widely used in an area such as production to reduce costs of taxes, labor (e.g., American labor is often cheaper than European labor), transportation, etc.
Insourcing is a business practice in which work that would otherwise have been contracted out is performed in house.
Insourcing often involves bringing in specialists to fill temporary needs or training existing personnel to perform tasks that would otherwise have been outsourced. An example is the use of in-house engineers to write technical manuals for equipment they have designed, rather than sending the work to an outside technical writing firm. In this example, the engineers might have to take technical writing courses at a local college, university, or trade school before being able to complete the task successfully. Other challenges of insourcing include the possible purchase of additional hardware and/or software that is scalable and energy-efficient enough to deliver an adequate return on investment (ROI).
Insourcing can be viewed as outsourcing as seen from the opposite side. For example, a company based in Japan might open a plant in the United States for the purpose of employing American workers to manufacture Japanese products. From the Japanese perspective this is outsourcing, but from the American perspective it is insourcing. Nissan, a Japanese automobile manufacturer, has in fact done this.
Advantages
• High degree of control.
• Ability to oversee the entire process.
• Economies of scale and/or scope.
Disadvantages
• Reduces strategic flexibility.
• Requires high investment.
• Potential suppliers may offer superior products and services.
The Verdict
For me it’s hard to say if we go for outsourcing or insourcing. But there are factors involve, what does the university really wanted in the issue. Do they want cheaper cost? Or do they want a high degree of control over its operations? These are only some questions that need to be considered. If the university wants cheaper cost then maybe they will go for outsourcing. Or if the university wants control over there operations then they will go for insourcing. But, regarding to the last issue when the last system that was used by the university was outsourced, the university protested because of the cost of the outsourced product. Now, the university changed to insourcing which is a good move on the part of the university. So maybe for me if we talked about insourcing or outsourcing the system of the university maybe for me I’ll stand with insourcing.
References:
wisegeek.com
en.wikipedia.org
sourcingmag.com
operationstech.about.com
Tuesday, September 1, 2009
Thursday, August 27, 2009
SONA
On the assumption that you heard/read the SONA of the President last month, (July 2000), identify at least 3 areas related to ICT and identify how these areas can improve our quality of life.
These are some issues that President Gloria Arroyo once said in her last State of the Nation Address in relation with ICT.
First one is:
“Sa telecommunications naman, inatasan ko ang Telecommunications Commission na kumilos na tungkol sa mga sumbong na dropped calls at mga nawawalang load sa cellphone. We need to amend the Commonwealth-era Public Service Law. And we need to do it now.”
This statement talks about vanishing cellphone loads in telecommunication companies. We all know that cellphone now a days are very essential in our daily needs especially the way we communicate. Using cellphones is the best and faster way in communicating. Me as a cellphone user it is essential for me to have a load in order for me to have contact with my family, friends, and etc., so having these issues such as vanishing of loads and dropped calls is a problem that needs to be solved.
The second one is:
“Kung noong nakaraan, lumakas ang electronics, today we are creating wealth by developing the BPO and tourism sectors as additional engines of growth. Electronics and other manufactured exports rise and fall in accordance with the state of the world economy. But BPO remains resilient. With earnings of $6 billion and employment of 600,000, the BPO phenomenon speaks eloquently of our competitiveness and productivity. Let us have a Department of ICT.”
Having a Department of ICT is a great move in the part of our economy, because it can help us in boosting our economic growth using all the technology in hand despite being a third-world country. And also Business Process Outsourcing (BPO) which help our fellow Filipino workers in having jobs abroad aiding the unemployed ones.
The third one is:
“In technical education and skills training, we have invested three times that of three previous administrations combined. Narito si Jennifer Silbor, isa sa sampung milyong trainee. Natuto siya ng medical transcription. Now, as an independent contractor and lecturer for transcriptions in Davao, kumikita siya ng P18,000 bawat buwan. Good job.”
Also free training for our fellow Filipinos in order to have jobs for sustaining there own family. One example is technical education such as medical transcription which is using technology in converting voice-recorded reports as dictated by a healthcare professional, into text format. If more people are trained it can also help unemployed one plus gaining enough money for there needs.
And lastly,
“As the process of fundamental political reform begins, let us address the highest exercise of democracy…voting!
In 2001, I said we would finance fully automated elections. We got it, thanks to Congress.”
Having an automated election is a good way of preventing if not maybe lessens cheats in elections. As we all know cheating is part of Philippine politics so this is a good way of preventing at least. It can also make election process fast and easy having results faster. So let me give this one two-thumb up.
Reference:
pinayads.com/2009/07/transcript-of-gloria-macapagal-arroyo-last-sona-2009/
These are some issues that President Gloria Arroyo once said in her last State of the Nation Address in relation with ICT.
First one is:
“Sa telecommunications naman, inatasan ko ang Telecommunications Commission na kumilos na tungkol sa mga sumbong na dropped calls at mga nawawalang load sa cellphone. We need to amend the Commonwealth-era Public Service Law. And we need to do it now.”
This statement talks about vanishing cellphone loads in telecommunication companies. We all know that cellphone now a days are very essential in our daily needs especially the way we communicate. Using cellphones is the best and faster way in communicating. Me as a cellphone user it is essential for me to have a load in order for me to have contact with my family, friends, and etc., so having these issues such as vanishing of loads and dropped calls is a problem that needs to be solved.
The second one is:
“Kung noong nakaraan, lumakas ang electronics, today we are creating wealth by developing the BPO and tourism sectors as additional engines of growth. Electronics and other manufactured exports rise and fall in accordance with the state of the world economy. But BPO remains resilient. With earnings of $6 billion and employment of 600,000, the BPO phenomenon speaks eloquently of our competitiveness and productivity. Let us have a Department of ICT.”
Having a Department of ICT is a great move in the part of our economy, because it can help us in boosting our economic growth using all the technology in hand despite being a third-world country. And also Business Process Outsourcing (BPO) which help our fellow Filipino workers in having jobs abroad aiding the unemployed ones.
The third one is:
“In technical education and skills training, we have invested three times that of three previous administrations combined. Narito si Jennifer Silbor, isa sa sampung milyong trainee. Natuto siya ng medical transcription. Now, as an independent contractor and lecturer for transcriptions in Davao, kumikita siya ng P18,000 bawat buwan. Good job.”
Also free training for our fellow Filipinos in order to have jobs for sustaining there own family. One example is technical education such as medical transcription which is using technology in converting voice-recorded reports as dictated by a healthcare professional, into text format. If more people are trained it can also help unemployed one plus gaining enough money for there needs.
And lastly,
“As the process of fundamental political reform begins, let us address the highest exercise of democracy…voting!
In 2001, I said we would finance fully automated elections. We got it, thanks to Congress.”
Having an automated election is a good way of preventing if not maybe lessens cheats in elections. As we all know cheating is part of Philippine politics so this is a good way of preventing at least. It can also make election process fast and easy having results faster. So let me give this one two-thumb up.
Reference:
pinayads.com/2009/07/transcript-of-gloria-macapagal-arroyo-last-sona-2009/
Friday, August 21, 2009
Assignment 6
If you were hired by the university president as an IT consultant, what would you suggest (technology, infrastructure, innovations, steps, processes, etc) in order for the internet connectivity be improved? (3000words)
If the University of Southeastern Philippines president would hire me as an IT consultant, I would suggest technology, infrastructure, and innovations. But for me I will be focusing more on infrastructure.
TECHNOLOGY
First I will define each of the following. What is technology? According to Wikipedia.com, technology is a broad concept that deals with human as well as other animal species usage and knowledge of tools and crafts, and how it affects a species ability to control and adapt to its environment. However, a strict definition is elusive; "technology" can refer to material objects of use to humanity, such as machines, hardware or utensils, but can also encompass broader themes, including systems, methods of organization, and techniques. The term can either be applied generally or to specific areas: examples include "construction technology", "medical technology", or "state-of-the-art technology". Technically speaking, technology is the process by which humans modify nature to meet their needs and wants. Most people, however, think of technology in terms of its artifacts: computers and software, aircraft, pesticides, water-treatment plants, birth-control pills, and microwave ovens, to name a few. But technology is more than these tangible products. Technology includes the entire infrastructure necessary for the design, manufacture, operation, and repair of technological artifacts, from corporate headquarters and engineering schools to manufacturing plants and maintenance facilities. The knowledge and processes used to create and to operate technological artifacts -- engineering know-how, manufacturing expertise, and various technical skills -- are equally important part of technology.
Technology is essential to improve the connectivity of internet in our university. Without a proper and good technology we can’t boost the use of the internet connectivity. Without good computers even if you have a good internet connection still you can’t use it to its maximum usage. Internet connection is dependable on your computer capability. You have a good connectivity but you have a slow computer still your loading time is slow making it slow. So a good computer unit can have a give an edge on your internet connectivity.
INFRASTRUCTURE
Second what is an infrastructure? According to Wikipedia.com, infrastructure can be defined as the basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function. The term typically refers to the technical structures that support a society, such as roads, water supply, sewers, power grids, telecommunications, and so forth. In information technology and on the Internet, infrastructure is the physical hardware used to interconnect computers and users. Infrastructure includes the transmission media, including telephone lines, cable television lines, and satellites and antennas, and also the routers, aggregators, repeaters, and other devices that control transmission paths. Infrastructure also includes the software used to send, receive, and manage the signals that is transmitted. In some usages, infrastructure refers to interconnecting hardware and software and not to computers and other devices that are interconnected. However, to some information technology users, infrastructure is viewed as everything that supports the flow and processing of information.
Infrastructure companies play a significant part in evolving the Internet, both in terms of where the interconnections are placed and made accessible and in terms of how much information can be carried how quickly.
In the present world, which is dynamic and knowledge based, universities have a much wider role to play in creating, preserving, organizing, transmitting and applying knowledge. Modern educational technologies developed from information technology will certainly change in terms of access, interaction, curriculum and instruction etc. The physical locations and facilities will be less important in defining a college or a university due to the easy on-line access of the educational resources of a higher educational institution to the urban as well as rural public. This will provide opportunities to our high school graduated youths from rural areas as well as urban youths to access higher education without a need to forgo their working and earning opportunities to physically attend a college or a university. So universities need to adopt modern education technologies to provide increase access to knowledge resources.
Online technologies are going to make traditional class room teaching less important in many subjects except where it is absolutely necessary. Therefore interaction between teachers and students will have to play a vital role in imparting higher quality education. This means that more frequent and effective internal mechanism of interaction between university faculty and students need to be developed. This, in turn, causes an external relationship between universities and non-university communities. Such external relationship will necessitate universities to respond quickly to the changes in the outside world. Therefore a mechanism to increase both the internal and external interaction efficiencies has to be developed.
The curriculum and instruction are going to be changed greatly. Because the new technologies make the learning and teaching easier, the contents of some courses will be expanded, a considerable number of new courses will be generated, interdisciplinary courses and studies will be more possible. Students and faculties will contribute together to the development of curriculum.
Modern higher education technologies will also change present instructional methods to a more effective one. The faculties will have to adopt an instructional method best suited to the class of students whom they target or to develop new methods best suited for them based on their feedback. Video conferencing techniques, simulators and on-line access too many practical training kits will revolutionize instructional methods.
So in order to have good internet connectivity, we should have if not the best at least a good and efficient network infrastructure. In order to attain good infrastructure there should be a proper planning to it, analyze the plan with all the necessary data collection in order to attain the best infrastructure that we need to have better internet connectivity. From hardware, software, server, topology, and let’s include the people managing. All these points are essential in a creating a very good infrastructure.
INNOVATION
And lastly, what is innovation? According to Wikipedia.com, innovation refers to a new way of doing something. It may refer to incremental and emergent or radical and revolutionary changes in thinking, products, processes, or organizations. A distinction is typically made between invention, an idea made manifest, and innovation, ideas applied successfully. (Mckeown 2008) In many fields, something new must be substantially different to be innovative, not an insignificant change, e.g., in the arts, economics, business and government policy. In economics the change must increase value, customer value, or producer value. The goal of innovation is positive change, to make someone or something better. Innovation leading to increased productivity is the fundamental source of increasing wealth in an economy.
Innovation is an important topic in the study of economics, business, design, technology, sociology, and engineering. Colloquially, the word "innovation" is often synonymous with the output of the process. However, economists tend to focus on the process itself, from the origination of an idea to its transformation into something useful, to its implementation; and on the system within which the process of innovation unfolds. Since innovation is also considered a major driver of the economy, especially when it leads to increasing productivity, the factors that lead to innovation are also considered to be critical to policy makers. In particular, followers of innovation economics stress using public policy to spur innovation and growth.
Those who are directly responsible for application of the innovation are often called pioneers in their field, whether they are individuals or organizations.
What is innovation in an organization? A convenient definition of innovation from an organizational perspective is given by Luecke and Katz (2003), who wrote:
"Innovation . . . is generally understood as the successful introduction of a new thing or method . . . Innovation is the embodiment, combination, or synthesis of knowledge in original, relevant, valued new products, processes, or services.
Innovation typically involves creativity, but is not identical to it: innovation involves acting on the creative ideas to make some specific and tangible difference in the domain in which the innovation occurs. For example, Amabile et al. (1996) propose:
"All innovation begins with creative ideas . . . We define innovation as the successful implementation of creative ideas within an organization. In this view, creativity by individuals and teams is a starting point for innovation; the first is necessary but not sufficient condition for the second".
For innovation to occur, something more than the generation of a creative idea or insight is required: the insight must be put into action to make a genuine difference, resulting for example in new or altered business processes within the organization, or changes in the products and services provided. A further characterization of innovation is as an organizational or management process. For example, Davila et al. (2006), write:
"Innovation, like many business functions, is a management process that requires specific tools, rules, and discipline."
From this point of view the emphasis is moved from the introduction of specific novel and useful ideas to the general organizational processes and procedures for generating, considering, and acting on such insights leading to significant organizational improvements in terms of improved or new business products, services, or internal processes.
Through these varieties of viewpoints, creativity is typically seen as the basis for innovation, and innovation as the successful implementation of creative ideas within an organization (c.f. Amabile et al. 1996 p.1155). From this point of view, creativity may be displayed by individuals, but innovation occurs in the organizational context only.
It should be noted, however, that the term 'innovation' is used by many authors rather interchangeably with the term 'creativity' when discussing individual and organizational creative activity. As Davila et al. (2006) comment,
"Often, in common parlance, the words creativity and innovation are used interchangeably. They shouldn't be, because while creativity implies coming up with ideas, it's the "bringing ideas to life" . . . that makes innovation the distinct undertaking it is."
The distinctions between creativity and innovation discussed above are by no means fixed or universal in the innovation literature. They are however observed by a considerable number of scholars in innovation studies.
So y I also recommend innovations? For me it is really important to include innovations, looking for new ways to solve current problems and issues, finding new ways/new techniques for better internet connectivity. As technology is on arising, we should also be innovative in order to be progressive. Having a good technology, plus a stable infrastructure with innovative mind can lead to a very good change for the better. So as an IT consultant these are my suggestions for better internet connectivity.
References:
mlsu.org/cc/itinf.htm
nae.edu/nae/techlithome.nsf/weblinks/KGRG-55A3ER
searchdatacenter.techtarget.com/sDefinition/0,,sid80_gci212346,00.html
wikipedia.org
If the University of Southeastern Philippines president would hire me as an IT consultant, I would suggest technology, infrastructure, and innovations. But for me I will be focusing more on infrastructure.
TECHNOLOGY
First I will define each of the following. What is technology? According to Wikipedia.com, technology is a broad concept that deals with human as well as other animal species usage and knowledge of tools and crafts, and how it affects a species ability to control and adapt to its environment. However, a strict definition is elusive; "technology" can refer to material objects of use to humanity, such as machines, hardware or utensils, but can also encompass broader themes, including systems, methods of organization, and techniques. The term can either be applied generally or to specific areas: examples include "construction technology", "medical technology", or "state-of-the-art technology". Technically speaking, technology is the process by which humans modify nature to meet their needs and wants. Most people, however, think of technology in terms of its artifacts: computers and software, aircraft, pesticides, water-treatment plants, birth-control pills, and microwave ovens, to name a few. But technology is more than these tangible products. Technology includes the entire infrastructure necessary for the design, manufacture, operation, and repair of technological artifacts, from corporate headquarters and engineering schools to manufacturing plants and maintenance facilities. The knowledge and processes used to create and to operate technological artifacts -- engineering know-how, manufacturing expertise, and various technical skills -- are equally important part of technology.
Technology is essential to improve the connectivity of internet in our university. Without a proper and good technology we can’t boost the use of the internet connectivity. Without good computers even if you have a good internet connection still you can’t use it to its maximum usage. Internet connection is dependable on your computer capability. You have a good connectivity but you have a slow computer still your loading time is slow making it slow. So a good computer unit can have a give an edge on your internet connectivity.
INFRASTRUCTURE
Second what is an infrastructure? According to Wikipedia.com, infrastructure can be defined as the basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function. The term typically refers to the technical structures that support a society, such as roads, water supply, sewers, power grids, telecommunications, and so forth. In information technology and on the Internet, infrastructure is the physical hardware used to interconnect computers and users. Infrastructure includes the transmission media, including telephone lines, cable television lines, and satellites and antennas, and also the routers, aggregators, repeaters, and other devices that control transmission paths. Infrastructure also includes the software used to send, receive, and manage the signals that is transmitted. In some usages, infrastructure refers to interconnecting hardware and software and not to computers and other devices that are interconnected. However, to some information technology users, infrastructure is viewed as everything that supports the flow and processing of information.
Infrastructure companies play a significant part in evolving the Internet, both in terms of where the interconnections are placed and made accessible and in terms of how much information can be carried how quickly.
In the present world, which is dynamic and knowledge based, universities have a much wider role to play in creating, preserving, organizing, transmitting and applying knowledge. Modern educational technologies developed from information technology will certainly change in terms of access, interaction, curriculum and instruction etc. The physical locations and facilities will be less important in defining a college or a university due to the easy on-line access of the educational resources of a higher educational institution to the urban as well as rural public. This will provide opportunities to our high school graduated youths from rural areas as well as urban youths to access higher education without a need to forgo their working and earning opportunities to physically attend a college or a university. So universities need to adopt modern education technologies to provide increase access to knowledge resources.
Online technologies are going to make traditional class room teaching less important in many subjects except where it is absolutely necessary. Therefore interaction between teachers and students will have to play a vital role in imparting higher quality education. This means that more frequent and effective internal mechanism of interaction between university faculty and students need to be developed. This, in turn, causes an external relationship between universities and non-university communities. Such external relationship will necessitate universities to respond quickly to the changes in the outside world. Therefore a mechanism to increase both the internal and external interaction efficiencies has to be developed.
The curriculum and instruction are going to be changed greatly. Because the new technologies make the learning and teaching easier, the contents of some courses will be expanded, a considerable number of new courses will be generated, interdisciplinary courses and studies will be more possible. Students and faculties will contribute together to the development of curriculum.
Modern higher education technologies will also change present instructional methods to a more effective one. The faculties will have to adopt an instructional method best suited to the class of students whom they target or to develop new methods best suited for them based on their feedback. Video conferencing techniques, simulators and on-line access too many practical training kits will revolutionize instructional methods.
So in order to have good internet connectivity, we should have if not the best at least a good and efficient network infrastructure. In order to attain good infrastructure there should be a proper planning to it, analyze the plan with all the necessary data collection in order to attain the best infrastructure that we need to have better internet connectivity. From hardware, software, server, topology, and let’s include the people managing. All these points are essential in a creating a very good infrastructure.
INNOVATION
And lastly, what is innovation? According to Wikipedia.com, innovation refers to a new way of doing something. It may refer to incremental and emergent or radical and revolutionary changes in thinking, products, processes, or organizations. A distinction is typically made between invention, an idea made manifest, and innovation, ideas applied successfully. (Mckeown 2008) In many fields, something new must be substantially different to be innovative, not an insignificant change, e.g., in the arts, economics, business and government policy. In economics the change must increase value, customer value, or producer value. The goal of innovation is positive change, to make someone or something better. Innovation leading to increased productivity is the fundamental source of increasing wealth in an economy.
Innovation is an important topic in the study of economics, business, design, technology, sociology, and engineering. Colloquially, the word "innovation" is often synonymous with the output of the process. However, economists tend to focus on the process itself, from the origination of an idea to its transformation into something useful, to its implementation; and on the system within which the process of innovation unfolds. Since innovation is also considered a major driver of the economy, especially when it leads to increasing productivity, the factors that lead to innovation are also considered to be critical to policy makers. In particular, followers of innovation economics stress using public policy to spur innovation and growth.
Those who are directly responsible for application of the innovation are often called pioneers in their field, whether they are individuals or organizations.
What is innovation in an organization? A convenient definition of innovation from an organizational perspective is given by Luecke and Katz (2003), who wrote:
"Innovation . . . is generally understood as the successful introduction of a new thing or method . . . Innovation is the embodiment, combination, or synthesis of knowledge in original, relevant, valued new products, processes, or services.
Innovation typically involves creativity, but is not identical to it: innovation involves acting on the creative ideas to make some specific and tangible difference in the domain in which the innovation occurs. For example, Amabile et al. (1996) propose:
"All innovation begins with creative ideas . . . We define innovation as the successful implementation of creative ideas within an organization. In this view, creativity by individuals and teams is a starting point for innovation; the first is necessary but not sufficient condition for the second".
For innovation to occur, something more than the generation of a creative idea or insight is required: the insight must be put into action to make a genuine difference, resulting for example in new or altered business processes within the organization, or changes in the products and services provided. A further characterization of innovation is as an organizational or management process. For example, Davila et al. (2006), write:
"Innovation, like many business functions, is a management process that requires specific tools, rules, and discipline."
From this point of view the emphasis is moved from the introduction of specific novel and useful ideas to the general organizational processes and procedures for generating, considering, and acting on such insights leading to significant organizational improvements in terms of improved or new business products, services, or internal processes.
Through these varieties of viewpoints, creativity is typically seen as the basis for innovation, and innovation as the successful implementation of creative ideas within an organization (c.f. Amabile et al. 1996 p.1155). From this point of view, creativity may be displayed by individuals, but innovation occurs in the organizational context only.
It should be noted, however, that the term 'innovation' is used by many authors rather interchangeably with the term 'creativity' when discussing individual and organizational creative activity. As Davila et al. (2006) comment,
"Often, in common parlance, the words creativity and innovation are used interchangeably. They shouldn't be, because while creativity implies coming up with ideas, it's the "bringing ideas to life" . . . that makes innovation the distinct undertaking it is."
The distinctions between creativity and innovation discussed above are by no means fixed or universal in the innovation literature. They are however observed by a considerable number of scholars in innovation studies.
So y I also recommend innovations? For me it is really important to include innovations, looking for new ways to solve current problems and issues, finding new ways/new techniques for better internet connectivity. As technology is on arising, we should also be innovative in order to be progressive. Having a good technology, plus a stable infrastructure with innovative mind can lead to a very good change for the better. So as an IT consultant these are my suggestions for better internet connectivity.
References:
mlsu.org/cc/itinf.htm
nae.edu/nae/techlithome.nsf/weblinks/KGRG-55A3ER
searchdatacenter.techtarget.com/sDefinition/0,,sid80_gci212346,00.html
wikipedia.org
Thursday, August 20, 2009
Assignment 5
Based on your adopted organization(s), identify and discuss barriers in their IS/IT implementation ..(2000words)
First, I will just make an introduction in order for me to reach the 2000 words that our instructor required us to make. I only have few resources about the topic but I will do some research in order to attain my goal. And I am finding it hard to search some resources/article regarding barriers in IS/IT implementations. But I will try all my best in giving you all the information you need regarding with the topic.
To start, I will discuss what company we adopted and the company that we adopted is the Davao Light and Power Company (DLPC) located at Ponciano Reyes Street, Davao City. But before that let me discuss to you what a barrier is.
What is a barrier? Let me define first what is a barrier, a barrier is a natural formation or structure that prevents or hinders movement or action. If we relate it to the question, in connection to IS/IT implementations, it is simply to prevent or preventing a new program/system in implementing or to apply in the organization. In relation to my adopted company, I will identify and discuss these barriers in IS/IT implementations. But I will just discuss first about my adopted company which is the Davao Light and Power Company (DLPC).
As we all know Davao Light and Power Company (DLPC) is the main source of electrical power all over Davao City. It supplies electrical power to residence, companies, and all other infrastructures here in Davao City. And as the leading power corporation here in Davao City, we can say that there are barriers in IS/IT implementations. As an organization it is part in there daily company activities. Each company must find ways to make solutions to daily problems.
As what I have gathered during our interview, Davao Light and Company (DLPC) are also experiencing barriers during IS/IT implementations. And we can’t deny the fact that every new program that is being implemented in an organization there are factors that involves in every step they make; such as, adaptation/adjustment in the new program. Employees will be having a hard time trying to adjust or adopt the new system. There is lot of factors that involves in implementing new system/program within the organization. I will identity and discuss what are those barriers that prevents Davao Light and Power Company (DLPC) in implementing those new systems.
These are the following barriers:
1. Resources
2. Security
3. Workforce
4. Time
RESOURCES
So I will discuss each of these barriers. The first barrier in IS/IT implementation is the resources. Does the company have the resources to support the new system? Does the company knew about the risks associated in IS/IT implementations. Is the company ready in all the process in implementing a new system? Implementing would mean installation, maintenance and repair, and etcetera. So these are some of the question that needs to be answer if we talk about resources in an organization. Money is the most important factor in implementing an information system. Without this factor they could not run the new system. So it is very important in a company that you have the enough resources to support the new system. In relation to our company the Davao Light and Power Company (DLPC), in my opinion they have all the enough resources at hand to support the new system that is being implemented. Davao Light and Power Company (DLPC) also told us during our interview that if they really need to support the new system they spend enough money in order to support it, because they knew that they will still benefit from it. But why spend too much money in a new system if they really don’t need a new one, also stated by the IT personnel we interviewed.
SECURITY
Second is security. The main thing that focuses Davao Light and Power Company is their increasing number of data that is in stored. As the number of data being stored it also increases the chances of unwanted attacks, or being prone to viruses. The data is the most essential and important thing in a company. Without it, I don’t know what will happen to the company. Data collection for developing systems is the hardest and most complex part in the whole data collection process. It’s the most tiresome yet important part because it tells us what the system should be, and what is its range and limitations. Normally, databases are protected from external attacks by the use of firewalls and etcetera. But if it is networked already it is prone to malicious attacks. So traditional firewalling is not enough to protect the database from external attacks. But in connection to Davao Light and Power Company (DLPC) they are a big company, and when you are a big company you also have big data’s in stored. So it is in a networked connection thus it is prone to unwanted attacks from external connections. So they must find ways in order to have a very stable database. We can never have a perfect database or a system, all we can do is to minimize all the possible errors in the database. In the part of Davao Light and Power Company (DLPC) they still manage to maintain their system in good shape. From Clipper they changed to Oracle. I think in my opinion in the business world when we talk about databases of a company first thing that mostly IT professionals would take importance is SECURITY, why? For the reason it keep it from external attacks, for we all know they can benefit from doing such things as cracking systems. So security is one of the barriers of IT/IS implementations.
WORKFORCE
Third is workforce. This is the people that are working 8 hours a day for them to sustain their daily needs. We all know without the people working we cannot implement things. So also this is one of the barriers in IS/IT implementations. Why can we say that it is a barrier in IS/IT implementations? The reason is simple as stated a while ago that without the people who are working we cannot implement things. So without proper training within the employees in an organization they will find it hard to implement things. It also includes workstations, if you are a big company with a small workstation; it will take years before you can accomplish enough jobs to do. So this is also a barrier in IS/IT implementations to it delay works that needs to be accomplish in order to implement things. No proper training, not enough workforce, limited workstations. These are also some of the barriers in IS/IT implementations.
TIME
And lastly, time can also be considered as a barrier since it gives us limitations that we must follow. Such limitations can affect the developing process and the output. In a saying that is stated “Time is Gold”.
So to summarized things, there are many factors that affect in IS/IT implementations. I just stated some of it in relation to my adopted company. So in order to have a good profit every company should analyze and think what those barriers are and how to overcome these barriers. Every company know what are the risks involving those barriers. As we all know in every advantage there are also disadvantages. In relation to the topic every time you implement something in the company is ready with the risks that you will be sacrificing in order to achieve what you want.
First, I will just make an introduction in order for me to reach the 2000 words that our instructor required us to make. I only have few resources about the topic but I will do some research in order to attain my goal. And I am finding it hard to search some resources/article regarding barriers in IS/IT implementations. But I will try all my best in giving you all the information you need regarding with the topic.
To start, I will discuss what company we adopted and the company that we adopted is the Davao Light and Power Company (DLPC) located at Ponciano Reyes Street, Davao City. But before that let me discuss to you what a barrier is.
What is a barrier? Let me define first what is a barrier, a barrier is a natural formation or structure that prevents or hinders movement or action. If we relate it to the question, in connection to IS/IT implementations, it is simply to prevent or preventing a new program/system in implementing or to apply in the organization. In relation to my adopted company, I will identify and discuss these barriers in IS/IT implementations. But I will just discuss first about my adopted company which is the Davao Light and Power Company (DLPC).
As we all know Davao Light and Power Company (DLPC) is the main source of electrical power all over Davao City. It supplies electrical power to residence, companies, and all other infrastructures here in Davao City. And as the leading power corporation here in Davao City, we can say that there are barriers in IS/IT implementations. As an organization it is part in there daily company activities. Each company must find ways to make solutions to daily problems.
As what I have gathered during our interview, Davao Light and Company (DLPC) are also experiencing barriers during IS/IT implementations. And we can’t deny the fact that every new program that is being implemented in an organization there are factors that involves in every step they make; such as, adaptation/adjustment in the new program. Employees will be having a hard time trying to adjust or adopt the new system. There is lot of factors that involves in implementing new system/program within the organization. I will identity and discuss what are those barriers that prevents Davao Light and Power Company (DLPC) in implementing those new systems.
These are the following barriers:
1. Resources
2. Security
3. Workforce
4. Time
RESOURCES
So I will discuss each of these barriers. The first barrier in IS/IT implementation is the resources. Does the company have the resources to support the new system? Does the company knew about the risks associated in IS/IT implementations. Is the company ready in all the process in implementing a new system? Implementing would mean installation, maintenance and repair, and etcetera. So these are some of the question that needs to be answer if we talk about resources in an organization. Money is the most important factor in implementing an information system. Without this factor they could not run the new system. So it is very important in a company that you have the enough resources to support the new system. In relation to our company the Davao Light and Power Company (DLPC), in my opinion they have all the enough resources at hand to support the new system that is being implemented. Davao Light and Power Company (DLPC) also told us during our interview that if they really need to support the new system they spend enough money in order to support it, because they knew that they will still benefit from it. But why spend too much money in a new system if they really don’t need a new one, also stated by the IT personnel we interviewed.
SECURITY
Second is security. The main thing that focuses Davao Light and Power Company is their increasing number of data that is in stored. As the number of data being stored it also increases the chances of unwanted attacks, or being prone to viruses. The data is the most essential and important thing in a company. Without it, I don’t know what will happen to the company. Data collection for developing systems is the hardest and most complex part in the whole data collection process. It’s the most tiresome yet important part because it tells us what the system should be, and what is its range and limitations. Normally, databases are protected from external attacks by the use of firewalls and etcetera. But if it is networked already it is prone to malicious attacks. So traditional firewalling is not enough to protect the database from external attacks. But in connection to Davao Light and Power Company (DLPC) they are a big company, and when you are a big company you also have big data’s in stored. So it is in a networked connection thus it is prone to unwanted attacks from external connections. So they must find ways in order to have a very stable database. We can never have a perfect database or a system, all we can do is to minimize all the possible errors in the database. In the part of Davao Light and Power Company (DLPC) they still manage to maintain their system in good shape. From Clipper they changed to Oracle. I think in my opinion in the business world when we talk about databases of a company first thing that mostly IT professionals would take importance is SECURITY, why? For the reason it keep it from external attacks, for we all know they can benefit from doing such things as cracking systems. So security is one of the barriers of IT/IS implementations.
WORKFORCE
Third is workforce. This is the people that are working 8 hours a day for them to sustain their daily needs. We all know without the people working we cannot implement things. So also this is one of the barriers in IS/IT implementations. Why can we say that it is a barrier in IS/IT implementations? The reason is simple as stated a while ago that without the people who are working we cannot implement things. So without proper training within the employees in an organization they will find it hard to implement things. It also includes workstations, if you are a big company with a small workstation; it will take years before you can accomplish enough jobs to do. So this is also a barrier in IS/IT implementations to it delay works that needs to be accomplish in order to implement things. No proper training, not enough workforce, limited workstations. These are also some of the barriers in IS/IT implementations.
TIME
And lastly, time can also be considered as a barrier since it gives us limitations that we must follow. Such limitations can affect the developing process and the output. In a saying that is stated “Time is Gold”.
So to summarized things, there are many factors that affect in IS/IT implementations. I just stated some of it in relation to my adopted company. So in order to have a good profit every company should analyze and think what those barriers are and how to overcome these barriers. Every company know what are the risks involving those barriers. As we all know in every advantage there are also disadvantages. In relation to the topic every time you implement something in the company is ready with the risks that you will be sacrificing in order to achieve what you want.
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