Role of IT in Business Organisations

Motivation of IT in business

In 2005, more wireless phone accounts were opened than telephone land lines installed

More than 35 million people receive their news online; 32 million read blogs worldwide.

Internet advertising continues to grow at more than 30 percent per year

New laws require businesses to store more data for longer periods

Changes in business result in changes in jobs and careers

Where does IT stand is an organisation

ORGANISATION

CAPITAL PRODUCTS

BEHAVIORAL VIEW TECHNICAL VIEW

USE OF IT IN BUSINESS

LABOUR

RAW MATERIAL

SERVICES

q VALUESq GROUP RELATIONSq STRUCTURE

What are benefits of IT ?

Organizations benefits IT to be successful cost savings

product/service quality improvement

customer satisfaction

market share

bottom line profitability or accomplishing social goals

IT has a diverse role it is applicable in each and every field.

IT PERFORMANCE MODEL

Even after having for implementing IT-PEFORMANCE MODEL There are some success stories for this and some failure....

Success story.....

ERP INTRODUCTION

Its a multi module application software that support broad set of business activities, thatmay include a combination any of these

Product developmentPre and post costingMerchandisingPlanningPurchaseInventory managementProduction ExportFinance andPayroll

Features and BenefitsEffective monitoring operation of the companyHighly FlexibilityAll users and organizational components integratedGreater efficiency and perfomance

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Competition

TAT to customer response

Consumer specific requirements

Margins &Efficiency

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To meet the regulatory standards

Retailer require an enterprise Wide process visibility

Data access and near-instance pefomancevisiting

Efficiency

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Need for ERP

Retail ERP @ Pantaloon

Aim : The basic need was to have a robust transaction management system and an enterprise Wide platform to run the operations

Solution : SAP retail solution

Implemented by : SAP team with the help of Novasoft, Singapore

No. of users : Around 1200

Time taken : around six months

Cost of implementation : about $10 million

The system runs on HP super dome server on HP UNIX11i and database is from oracle

Implemented in three phases : First Phase : Analyzing and drafting the current process Second Phase : Development of SAP platform with Novasoft templates Third Phase : Unorganised datas new SAP application

Pantaloons ERP in Retail :

Expectations from the ERP system :

Support Product developmentIdeationTrend AnalysisCollaborations with the partner in supply chainSupport sourcing and procurementOptimizing cost, quality and speed variables

Managing Supply chainHandling the logistics of moving finished goods from the source into store

Selling goods across a variety of channels to customerMarketingBrand Management

Managing markdowns and capturing customer reactions

Data Analysis

WHY SAP

Pantaloons successfully track record with SAP software

The software scalability and ease of integrationThe software ability to meet company need ( a perfect fit for an enterprise wide implementation )Complete data integrity and real time updatesExpert support during migration effort, including support for document splittingLow total cost of ownershipSignificantly reduce infrastructureExpected timely completion of the project

BENEFITS OF SAP

Greater business insights through more accurate and timely financial informationLower costs via convergence of financial accounting and controllingEnhanced data qualityEasier compliance with regulatory requirements via the SAP parellel accounting feature

Increased business transparency via drilldown reporting capabilitiesReal time, continuous reconciliation of cost elements and expenses accountsAbility to close books 15 to 20% faster5 to 10% reduction in accounts receivable

Uniform organizational structureUnified single platform and information architectureIntegrated work environment provided an enterprise wide view of the workflowImproved management reporting and decision makingAllowed integration with system of associates and business partnerHelped in routine decision makingAllowed streamlining of business processes

FINANCIAL AND STRATEGIC BENEFITS : Operational Benefits

Organizational benefits

2ND SUCCESS STORY.....

What Is Square?

Management

Jack DorseyCEO, FounderTwitter & Square

Product Offering

Square WalletSquare RegisterMobile Payments Eliminate the need

for cash Improve credit card

processing

Business Side Consumer Side

Users4m

Valuation$3.25b

VolumeDay: $41mYear: $15b

Key Numbers

Why Do People Use Square?

Making Commerce Easy for Everyone

Value Proposition

Competitive AdvantageMobile Payment Space Design-First Mentality Superior User Experience Strategic Partnerships

What Is Squares Situation?

Powerful alignment with worldwide aesthetics

Strong existing partnership

Positive response on Square product design

Cash-rich society leads to significant amount of low hanging fruit

Lack of customer service capabilities

Higher fee structure by 1 basis point compared to next competitor

Significantly fragmented market leads to high level of competition from PayPal and Rakuten

Strengths Opportunities

Weaknesses Threats

Although life without IT is not possible but at times it even lead to threat.....

Failures of IT

Security breach Complexity Implementation Expenses Job elimination

One such case of failure of IT is the Greek tragedy of HP and Autonomy

Its A Good IdeaRight?

HP getting into the software game high margins

IDOL and SAS is an asset of autonomy Hardware falling out

ODMs in China Low margins

The Failure The Failure

Software IDOL was too complex for HP to understand it

Oh, So Those Were Red Flags

Unusually high margins Low deferred income and high accounts

receivable

Takeaways.....

Information technology is the hardware and software a business uses to achieve its objectives

An information system consists of components that support decision making and control, and help with analysis, visualization, and product creation

Information refers to data shaped into a meaningful and useful form

Data are streams of raw facts representing events and occurrences