Week Nine - Operations Management and Supply Chain

1. Define the term operations management


Operations manaegement in a firm is based accross all departments and consists of converting resources from inputs to outputs. For example, an online travel agent creating holiday packages for customers. The input is all the airfares, hotels, and tours. The output is the itinerary with the final price for the package.



2. Explain operations management’s role in business

Operation managers control the flow of inputs and outputs in an organisation. Their role consists of:
Forecasting: knowing when particular services need to be done during the year. 
Capacity planning: how much inputs are needed to make outputs.
Schedualling: need to have a system in place stating who does what and by when
Managing inventory: the more inventory held, more money is spent which could go towards other things.
Assuring quality: ensuring the quality of the input matches the output product
Training and motivating employees: ensuring all employees are properly trained and are motivated will create better output by them.
Locating facilities: delegating the right inputs to the right departments will increase better chances of output.


3. Describe the correlation between operations management (OM) and information technology (IT)

Modern OM relies heavily on IT that OM can not do their jobs without IT. OM allows managers to:
- Find out what resources and how much of it is needed.
- Know when the work needs to be done
- Know where the work will be carried out
- Know how the work will be performed
- Who will take part in doing the work




4. Explain supply chain management and its role in a business

Supply chain management consists of managing the flow of information between and among stages in a supply chain to increase the profitability and effectiveness in the total supply chain. Its role is important in a business as it allows more efficiency in its productions of good and services- being more effecting and efficent in turning inputs into outputs.


5. List and describe the five components of a typical supply chain


•Supplier: supplies the raw materials (also known as inputs) to the manufacturer.

•Manufacturer: produces raw materials into products (also known as outputs) for distribution.

•Distributor: recieves the products form the manufacturer in bulk and sells to retailers.

•Retailer: sells the products to customers (known as target market).

•Customer: known as the end party consume the product purchased.

Dis-intermediation is caused from the use of eCommerce. This is known as the removal of stages in the supply chain (e.g: customer directly dealing with the manufacturer, instead of through the retailer).

Below: an example of travel and tourism supply chain

http://tourismtechnology.rezgo.com/2010/06/marketing-vs-distribution-a-place-for-both-strategies.html

6. Define the relationship between information technology and the supply chain.
 
In the supply chain, IT plays an important role. It is relied on to make accurate decisions reflecting each step in the supply chain. Without IT, businesses would be either
- Creating too much stock which is not selling
- Creating too little stock which is in high demand
With the help of IT, businesses are able to keep record on how much stock is available at present, how much needs to be orded in the future and also make decisions to whether profits are being generated from the goods sold and whether they should contine to produce them or not.

Below: video shows examples of ways to control stock

http://www.youtube.com/watch?v=AN4dibCMD7M

Week 6 - Chapter 5 Architectures

1. What is information architecture and what is information infrastructure and how do they differ and how do they relate to each other?

Information architecture: Consists of how to store files and where.
Information infrastructure: Consists of how the architecture works. How reliable and flexible it is, is important.
Differ-
Architecture: Is how the system will be used in the organisation. It includes all the systems and file paths involved in storing files.
Infrastructure: The way in which the files are stored and ensures that is runs well.
Relate-
Architecture relies on infrastructure as infrastructure ensures works behind the scenes to ensure that the files are stored properly and that the system is working well and is up to date with minimum error.

Below shows a link of how different infromation architecture looks like
http://www.prescientdigital.com/articles/strategic-design/design-ii-structure-comes-before-design

Below is an image showing how an information infrastucture on a national scale looks like

http://www.ibiblio.org/nii/

2. Describe how an organisation can implement solid information architecture
List and describe the five requirement characteristics of infrastructure architecture.

Implement solid information architecture-
By creating a blog site which enables employees and employers to create and distribute information within and amongst different sections of the organisation. This will be an easy and less time effective way to send messages and updates around the organisation.
Five requirement characteristics-
1. Flexibility – must meet all types of business changes. It is designed to include the ability to handle multiple currencies and languages, even if the company is not yet operating overseas.
2. Scalability – is how well a system can adjust to increased demands. Capacity planning determines the future IT infrastructure necessities for new equipment and additional network capacity.
3. Reliability – ensures all systems are functioning correctly and providing accurate information.
4. Availability – addresses when systems can be accessed by employees and customers. High availability refers to a system or component that is continuously operational for a desirably long length of time.
5. Performance – measures how quickly a system performs a certain process or transaction in terms of efficiency IT metrics of both speed and throughput.


3. Describe the business value in deploying service oriented architecture

A SOA will allow organisations to become integrated with other businesses which makes working together easier. It also ensures that IT systems can adapt quickly and rapidly to support business needs. Using Meta data, they can re use systems many times which makes development cheaper and flexible.


4. What is an event?

It is an event example which the flow of program is determined by events such as sensor outputs, the amounts of clicks per page or messages etc.


5. What is a service?

A service cab be a business task, such as checking a potential customer's credit rating. They are similar to software products.


6. What emerging technologies can companies use to increase performance and utilise their infrastructure more effectively?
-Virtualisation- enables division of recourses of a computer into different environments.
-Loose Coupling- services joined together on demand to create complex services.
-Grid computing- collection of dispersed computing, storage and network resources, used to improve quality of service.

Below is an example of a virtualisation desktop using Mac

http://mac.sillydog.org/archives/001212.php

Below is an image of how grid computing works

http://communication.howstuffworks.com/grid-computing.htm/printable

Week 5 - Ethics and Security

1. Explain the ethical issues surrounding information technology.


- Privacy Issues: Consists of the interest of the business for keeping valuable information away from the public. This relates to confidentiality. This is kept in mind when a company has valuable infromation which is wanted to be kept private. The risk of being released in the public could result to the company 'sinking'.

- Data Accuracy: It is important that data is keep up to date and is as accurate as possible. Constant checks must be made to ensure that no 'suspicious' activity has occured. Data must also be limited to who can access it to decrease amounts of malicious activity.

- Property Issues: Issues with who owns information in companies is a problem. It is shown that most companies are montioring employees' emails as they are misusing them with the information which is being issued out to peole outside of the company.


2. Describe a situation involving technology that is ethical but illegal

Employees search organisational database for sensitive and personal information. This is an example of bank employees who have access to customers' bank details and use it against their will to trace their bank details, which could lead to fraudulent activity such as taking money out of their accounts.


3. Describe and explain one of the computer use policies that a company might employee

Internet use policy- Consists of generalpriciples which guide the correct use of the internet in the workplace. The policy:
- Describes available internet services.
- Defines the purpose and restriction of internet access.
- Describes user responsibilities.
- Shows the consiquential result for violations.


4. What are the 5 main technology security risks

1)Human Error
2)Natural Disasters
3)Technical Failures
4)Deliberate Acts
5)Management Failure


5. Outline one way to reduce each risk

1) Human error: Strong passwords which consists of some letters and numbers make it harder to guess the password and prevent people guessing passwords.
2) Natural disaster: Retaining offsite backups which are kept outside of the premises and are kept in the exact same order as on premises.
3)Techinical Failures: Network rights and permissions correctly assigned reduce the risk of employees accessing parts of the system which could result to failures.
4)Deliberate Acts- Passwords: Changing passwords on a regular basis with a secure password reset,will decrease the prevention of external parties hacking into systems.
5) Management Failure: Training employees on the job helps employees to develop the correct skills needed to perform their tasts with minimal risks involved.

http://www.youtube.com/watch?v=Uyq-Q9HEnFg&feature=related

The link above describes how security online has changed in today's world.

6. What is a disaster recovery plan, what strategies might a firm employee?

The process of regaining information and data after a disaster has taken place. It is a form of Off Site Backups- This involves saving information and data outside of the workplace, so there will be a copy available if something goes wrong in the workplace.

http://www.mustakes.com/2010/05/cloud-computing-disaster-recovery-planning/

The link above desribes ways which disaster recovery plans could be implemented

Week Two Questions

1. Explain information technology’s role in business and describe how you measure success?

Information Technology's role in business helps to transform the company from its old ways of operating, into a more user friendly workplace. IT helps to reduce costs in a business as it costs more to keep record of hard copy information. For example, for an Accounting firm to keep hard copies of client's records will take  up lots of space over time. With the help of excel spreadsheets, accountants could now save a copy of the files on a CD which saves space and paper.
Success is measured through observing the business' efficiency and effectiveness.
Efficiency- Measures the actual IT system. For example: How much files can the system hold? Or How fast is our network working?
Effectiveness- Measures how effective the IT system is. For example: How often are we repairing errors? Or What is the percentage of IT errors which are repaired correctly the first time?

2. List and describe each of the forces in Porter’s Five Forces Model?
1. Buyer Power- Is high when buyers have many sellers to choose from and is low when their choices are few. Therefore the buyers ability directly impacts the price they are willing to pay for an item.

2. Supplier Power- Is high when a supplier has dominant power over an industry. If the power is high, the supplier can: Increase price and limit quality or service. This is because there is small amount of competitors on the market offering similar products.

3. Threat of substitute products or services: Is high when there are many competitors and low when there is a minimal amount. Ideally, companies like to be in a market where there are minimal substitutes on offer by competitors.
4. Threat of new Entrants: Is high when it is easy for new competitors to enter a market and is low when there are entry barriers. For e.g. If a new bank has entered the market, they must compete with the current banks on the market and offer the same (or better) IT services and options in order to survive.

5. Rivalry amongst existing competitors: Is high when competition is fierce in a market and low when competition is more satisfied. For example, as grocery stores have strong competition with each other, they create loyalty programs for repetitive customers offering discounts to use in the store.


The link below explains the five forces

http://www.youtube.com/watch?v=5JjNUxxsDP0

3. Describe the relationship between business processes and value chains?

A value chain is used to determine the success or failure of a previously chosen strategy. To evaluate the effectiveness of its business processes, an organisation can use Michael Porter's value chain approach. The value chain approach views an organisation as a series of processes which add value to the product and/or services offered to customers.

4. Compare Porter’s three generic strategies?

An organisation can follow one of Porter's three generic strategies when entering a new market.

1) Broad cost leadership

2)Broad differentiation

3) Focus strategy

Broad strategies reach a broad market segment, while focused strategies target a niche market. A focused strategy focuses on either cost cost leadership or differentiation.

Below the link explains the three generic strategies

http://www.youtube.com/watch?v=ndARJzmKras