Use of neo technologies for new enterprises - II

Business Modeling ToolsStrategy Model: allows strategic components such as Plans, Projects, Goals, Problems, Opportunities, Rules and Environmental Influences to be related in the same model to display the strategic influence each has on the others.

Eg: the influence of Problems inhibiting the attainment of Goals; the influence of Opportunities to solve Problems; the influence of Environmental Influences restricting the realization of Opportunities, etc..

A Strategy model can be used for a variety of purposes, such as supporting the Balanced Scorecard approach for setting goals and measuring performance, or Cause and Effect analysis

Business Interaction Model (BIM): profiles all or a portion of the business showing the organizational boundaries within the business and the interactions between these internal and external organizations

• BIM does not concentrate on the definition of the organizational units, but rather on the communication and passing of goods and information between political boundaries

Business Modeling Tools

Organization Model : defines the various organizational entities that exist within an enterprise and the relationships between these entities


The model helps:•Understand how work currently gets done (how the organization behaves as a system)•Identify “disconnects in the organization wiring” (missing, unneeded, confusing, or misdirected inputs and outputs)•Develop functional relationships that eliminate disconnects•Evaluate alternative ways to group people and establish reporting hierarchies

To be effective, organizations need to structure themselves through models that are appropriate for dealing with the external challenges being faced

Process Model : a functional hierarchy that structures processes and activities within the context of a business area

The goals of a process model are to be:• Descriptive: Track what actually happens during a process and determine the improvements

that must be made to make it perform more effectively or efficiently.• Prescriptive: establish rules, guidelines, and behaviour patterns which, if followed, would

lead to the desired process performance. • Explanatory: explore and evaluate the several possible courses of action based on rational

arguments; establish an explicit link between processes and the requirements that the model needs to fulfil


Workflow model: a representation of a Business Process in terms of its component Activities, and the flow of work among these Activities.

A Workflow model concentrates on the flow of work through the business for a single output (i.e. product or service), or a single input (e.g. handling of an order). Once created, a Workflow model can be simulated to analyze process performance in terms of cost, timing and resource constraints.


Technology Model : defines the technology services that are available to solve the application's requirements.

It is used to identify, acquire or create the necessary technical resources that support the application requirements.

Technology: a technical capability that is provided by hardware and/or software components .


Suppliers <-> Enterprise <-> CustomersSupply chain management - designs and manages the processes, assets, andflows of material and information required to satisfy customers’ demands

SCM software:Planning applications - use advanced algorithms to determine the best way to fill an orderExecution applications - track the physical status of goods, the management of materials, and financial information involving all parties

Tools used in the Business Value Chain

Fig. 1: Supply Chain Mgmt vs. Logistic Chain Mgmt - marketingplanbook.com


Materials flow: the movement of goods from a supplier to a customer, as well as any customer returns or service needsInformation flow: transmitting orders and updating the status of deliveryFinancial flow: credit terms, payment schedules, and consignment and title ownership arrangements

Fig. 2: SCM flows – Clermiston Consulting (www.clermiston.com.au)

E-procurement : purchase and sale of supplies and services over the Internet (business-to-business / business-to-consumer / business-to-government)

• Includes: eInforming - E-procurement Web sites allow qualified and registered users to look for buyers or

sellers of goods and services eTendering - drafting, issuing, responding to and scoring tenders through a website eAuctioning - online auctions allow businesses to compete in real time to bid for a contract Vendor Management Catalogue Management

• Benefits: Rationalize and manage supplier relationships , reduce inventory costs, shorten Order cycles

Fig. 3: eProcurement Overview - Solomons International [bessence.com]


Demand-driven manufacturing - production is customer-driven, based on actual orders rather than forecasts

Demand signal repository (DSR): data warehouse that stores large volumes of external and internal data that has been harmonized to provide visibility up and down the supply network. A DSR stores retailer data, third-party data, and internal data in order to drive demand-driven business insights across the value chain of stakeholders

Demand flow scheduling system: a software product designed to optimize demand-based manufacturing practices


Fig. 4: DDM process – AspenTech

Lean manufacturing: operational strategy oriented toward achieving the shortest possible cycle time by eliminating waste (derived from the Toyota Production System )


Fig. 5: Lean Production - JMA Consultants

•Designed to radically improve profitability, customer satisfaction, throughput time, and employee morale•Reduced cash tied up in inventory•Reduced space required•Reduced requirements for transportation and associated people and equipment•Reduced lead times.•Reduced planning complexity

Manufacturing resource planning – manages your production planning, inventory control and manufacturing processes, helping you to automate and maximize your resources, as well as improve client service

Modules:• Master production schedule (MPS)

Inputs: Forecast Demand / Production Costs / Inventory Costs / Customer Orders / Inventory Levels / Supply / Lot Size / Production Lead Time / Capacity (from ERP system)

Outputs: Amounts to be Produced / Staffing Levels / Quantity Available to Promise / Projected Available Balance

• Bill of materials (BOM) (technical data)• Production resources data (manufacturing technical data)• Inventories and orders (inventory control)• Material requirements planning (MRP)• Shop floor control (SFC)• Capacity planning or capacity requirements planning

(CRP)• Cost reporting / management (cost control)


Fig. 6: Manufacturing resource planning– bizxc.com

Warehouse Management Systems - support the day-to-day warehouse operations (physical inventory, shipping, receiving, and picking)

Functionalities: Wave Picking/Batch Picking/Zone Picking / Slotting Integration with Automated Data Collection (ADC) equipment Integration with Automated Material Handling Equipment Use of Advanced Shipment Notifications (ASN) - provides information

about when an order will be shipped, which items are being shipped, how many of each item is being shipped and physical characteristics about the shipment such as the shipment’s weight, the number of boxes and a description of how the shipment units are packaged.

Labor Tracking/Capacity Planning


Customer Relationship Management (CRM) – a business strategy designed to reduce costs and increase profitability by solidifying customer loyalty

•identify and target the best customers, manage marketing campaigns and generate quality leads for the sales team•improve telesales, account, and sales management •allow the formation of individualized relationships with customers, with the aim of improving customer satisfaction and maximizing profits;

Key elements to a successful CRM initiative: people, process, technology


CRM - Campaign management - create, execute and manage multichannel campaigns


Fig. 7 - Magic Quadrant for CRM Multichannel Campaign Management – Gartner 2010

•Plan & Execute Marketing Campaigns•Execute Email Marketing•Manage Marketing Contacts•Advanced analytic functionality

•Predictive analytics •Campaign optimization

•Advanced execution functionality

•Event triggering •Real-time recommendations

CRM - Sales force automation - automates business tasks such as inventory control, sales processing, and tracking of customer interactions, as well as analyzing sales forecasts and performance


Fig. 8 - Magic Quadrant for Sales Force Automation – Gartner 2010

•Account, contact and opportunity management•Sales configuration•Sales coaching•Guided selling•Proposal generation•Content management •Sales performance management support: incentive compensation, quota and territory management

Fig. 9 - Cloud CRM Sales Dashboard – acrowire.com

SaaS CRMSoftware as a Service (SaaS) is a software distribution model in which applications are hosted by a vendor or service provider and made available to customers over a network, typically the Internet.


Benefits :easier administrationautomatic updates and patch managementCompatibility (all users will have the same version of software)easier collaboration, for the same reasonglobal accessibility

Cloud computing – a set of pooled computing resources and services delivered over the web •an efficient way to store and maintain databases•streamlines data and procedures into one central location•an easy way to organize information in different departments while still allowing for company-wide collaboration


Fig. 10 - The seven elements of Cloud computing's value – MWD Advisors

Cloud services also integrate with most commonly used software applications, and even other Web-based services and social networking sites, to help connect your employees and customers in one location.

Social media:

•Social Bookmarking (Del.icio.us, Blinklist, Simpy) - Interact by tagging websites and searching through websites bookmarked by other people•Social News (Digg, Propeller, Reddit) - Interact by voting for articles and commenting on them

Networking by Social Media

Fig. 11 - Social Return On Investment - Shane Gibson

•Social Networking (Facebook, Hi5, Last.FM) - Interact by adding friends, commenting on profiles, joining groups and having discussions•Social Photo and Video Sharing (YouTube, Flickr) - Interact by sharing photos or videos and commenting on user submissions•Wikis (Wikipedia, Wikia) - Interact by adding articles and editing existing articles


Web 2.0 : user-generated content•Rich Internet application (RIA) — the experience brought from desktop to browser whether it is from a graphical point of view or usability point of view.

•Service-oriented architecture (SOA) — defines how Web 2.0 applications expose their functionality so that other applications can leverage and integrate the functionality providing a set of much richer applications (feeds, RSS, Web Services, Mash-ups)• Social Web — defines how Web 2.0 tends to interact much more with the end user and make the end-user an integral part.

Fig. 12 – Rich Internet Applications – vebdesigns.com

Networking : groups of like-minded entrepreneurs recognize, create, or act upon business opportunities

Social Networking:

•Profile - contains basic user information (location, age, personal interests)•Friends / Connections - trusted members of the site that are allowed to post comments on your profile or send you private messages. •Groups / Networks - Most social networks use groups to help you find people with similar interests or engage in discussions on certain topics. •Discussions: A primary focus of groups is to create interaction between users in the form of discussions. Most social networking websites support discussion boards for the groups, and many also allow members of the group to post pictures, music, video clips, and other tidbits related to the group.•Blogs•Widgets


Be social – new media is a place for sharing and conversation, not just a display window for your products


Fig. 13 – Online Adults using Social Media – United States - Experian Marketing Services

•Produce relevant content for your customers•Offer your knowledge and expertise, become a brand that’s more informative than promotional

•The share of social networkers accessing their account from a mobile phone is growing at a rapid rate (up to 20% in 2011)=> Make sure your company’s website is optimized for mobile web browsers •Give your customers ways to interact with your business via social channels like Foursquare or Facebook Places

•Leverage your email list to drive your social campaign.

New Social Media for Trade Union Confederations: SmarTU

• Uses the most advanced technologies to communicate with its members in real time

• Integrates services for the members with online services

• Works as liaison center between organizations and members, ensuring the exchange of information and integrating specific services offered by unions, federations and subsidiaries

• Mediates between service providers in the market and the consumers’ target group, consisting of affiliates



SmarTU platform applications

Further Reading• Barlow, Mike. 2011. The Executive's Guide to Enterprise Social Media Strategy:

How Social Networks Are Radically Transforming Your Business. Wiley.• Chopra, S., P. Meindl (C&M). 2006. Supply Chain Management (3rd edition).

Pearson Prentice Hall, New York.• Conrad Levinson, Jay.2007. Guerilla Marketing (4th revised edition). Piatkus Books.• Coyle, J.J., E.J. Bardi, C.J. 2002. Langley: The Management of Business Logistics (7th

Edition). South-Western College Publications, Mason.• Ino, Satoshi. 2005. Inside the Mind of Toyota: Management Principles for Enduring

Growth. Productivity Press.• Poirier, C.C. 2003. Using Models to Improve the Supply Chain. CRC Press, London,

UK.• Wight. O. 1981. Manufacturing Resource Planning - Unlocking America's

Productivity Potential. Oliver Wight Ltd. Publication Inc.

Use of neo technologies for new enterprises - II

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