Monday, November 25, 2013

CHAPTER 6: Apple, Google, and Microsoft Battle for Your Internet Experience

STUDY CASE
Apple, Google, and Microsoft Battle for Your Internet Experience

1.      Compare the business models and areas of strength of Apple, Google, and Microsoft.
      Although they have different business models and strength, Apple, Google, and Microsoft are three major companies who seek to dominate the internet user’s experience. They come with their own proprietary strengths.

      In looking at business models Apple business model focuses on the consumer bringing them a personalized web experience through their hardware (Ipod, Iphone, Ipad and  imacs), their own major OS system: Mac OSX and TOS, and through the internet. Although their model limits what type of software customers can access, they offer over 250,000 apps through their IOS app store.

      Next, with their browser and search engine, Google Centers on advertaising and democratizing information where they gain most of their profits. Through the companies Android platform they are increasing their market shares into the mobile market. Google seek a market of open nonproprietory  plat forms where consumer can freely surf the web and openly enjoy the innovation of apps across services.

    Finally, Microsoft business model concentrates on creating user friendly operating systems, which 95% of all computers use. They have worked to make technology accessible to everyone. However, they are moving towards services and breaking into the search advertising market. Likewise, in the struggle to dominate new technology, the three internet titans come with their own strengths backing them. In addition, they manufacture their hardware, run devices with their own software, and retail their own products. These devices have become very popular with Iphone bringing in 30% of the company’s revenue.

    Google’s main areas of strength it’s on search and advertising services. It has the most efficient search engine and good capability in supplier-buyer integration. Microsoft is still the leader in pc operating system and desktop productivity software, but has failed miserably with smart phone hardware and software, mobile computing, cloud-based software apps, its internet, portal, and even its game machines and software. But this contribute only 5% its revenue, and network software. Windows is still operating system on 95% of the world 2 billion Pcs.

    Microsoft strength are operates through regional subsidiaries. Microsoft is the world’s largest software company with global name recognition and strong. Their company and it product are staples for businesses and consumer looking to improve their productivity with computer-based tasks. While it is trying to expand its presence on the internet, it still must try to keep customers bound to the desktop computer.

    The strength for Apple are mobile devices, such as iphone and tablets. These devices combine and contribute 52% of apples business. They already have a head straits on the mobile phone industry where they have over 250,000 applications. Apple controls 27% of the mobile market and the iphone is the highest grossing cellphone ever. Apples has a very loyal user base that has steadily grown and most likely will stay with Apple products in the future.

2.      Why is mobile computing so important to these three firms? Evaluate the mobile platform offerings of each firm.
    Apple’s and Google’s Android are both the key dominant players in the mobile computing market, and Microsoft fails in the mobile computing market. When the internet exploded in size and popularity, it made increase in Apple’s revenue. Apple’s has loyal user base that has steadily grown and it’s very likely to buy future products offerings.

    Google is as strong as the size of its advertising network. When Google acquired Android, it was adding features to Android that Apple’s offering lacked such as the ability to run multiple apps at once. IOS 5 is the latest version of the world’s most advanced mobile operating systems, includes over 200 new user features, and update software development kit with over 1,500 new application programming interface and powerful new development tools.

     Apple IOS Android 4.0 (ice cream sandwich) is the latest version of the android platform for phones. It builds on the things people love mostly about Android easy multitasking, rich notifications, customizable home screens, resizable widgets, and deep interactivity and adds powerful new ways of communicating and sharing.

      Google android windows phone 7 is the latest version and where Microsoft offers a new user interface. This features its design langue called Metro, integrates the operating system with third party service and other Microsoft services, and sets minimum requirements for the hardware, on which it runs. Window phone is primarily aimed at the customer market rather than the enterprise market.

3.      What is the significance of mobile applications, app stores, and closed versus open app standards to the success or failure of mobile computing.
      Apps greatly enrich the experience of using a mobile device, and without them, the predictions for the future of mobile internet would not be nearly as bright. Whoever creates the most appealing set of devices and application will derive a significant competitive advantage over rival companies.

      Apple make money on each app sold through its app store. That’s worth billions of dollars to the company. Even if an app is free, apple still has an advantage because users must visit Apple’s App store and the company is betting consumers will buy something else. Other apps or entertainment service while visiting the store. However, app developers have complained that making money is too difficult. Apple has blocked some apps from its mobile devices, namely Google’s voice mail management program, Google voice. Apple claimed it violated user privacy.

      Apps for the Android system used on non-Apple devices are available from many different sources. Google has worked very hard to increase the number off apps available for Droid-based mobile devices by encouraging developers to increase the number of apps. Google also makes money by embedding advertising in some of the apps used on Droid-based devices.

4.      Which company and business model do you think will prevail in this epic struggle? Explain your answer.
     The company and business model will prevail in this epic struggle is Apple because it would struggle to remain competitive in this environment. Apple has kept the garden closed for a simple reason, you need Apple device to play there. Apple has the edge in the selection and quality of apps, but while sales have been risk, developers have complained that making money is too difficult. Roughly a quarter of the apps available in the app store are free, which makes no money for developers or for Apple, but it does bring consumers to the Apple marketplace where they can be sold other apps or entertainment service. The type of Apple such as Imac, Ipod, Iphone have all contributed to the company’s enormous success in the internet era, and the Ipad has followed the trend of probability set by these previous products. Apple has a loyal user base that has steadily grown and is very likely to buy future products offerings.

5.      What difference would it make to a business or to an individual consumer if Apple, Google, and Microsoft dominated the Internet experience? Explain your answer.
  In the current struggle, three firms are trying to make to dominate the customer experience on the internet. Each firm brings certain strength and weakness to fairy. It’s too early to tell if a single firm will “win” or it all three can survive the contest for the customer internet experience, and in early contest it was typically a single firm that rode the crest of new technology to become the dominant player and also can make domain of the internet router market. Example, include IBM’s dominance of the main frame market.


Information Security Threats and Policies in Europe.
1.     Botnet is a network of autonomous malicious software agents that are under the control of a bot commander. The network is created by installing malware that exploits the vulnerabilities of web servers, operating systems, or applications to take control of the infected computer. Once the computer is infected it becomes part of a network of thousands of “zombies” machines that are commanded to carry out the attack.

2.     There are four main points of Digital Agenda for Europe. Firstly, they want to define the key role that information and communication technologies will play in 2020. Secondly, they took initiative calls for a single, open European digital market. Besides that, Digital Agenda for Europe has goal which is that broadband speeds of 30 Mbps be available to all European citizens by 2020. Lastly, they initiatives is considering the implementation of measures to protect privacy and the establishment of a well-functioning network of CERT to prevent cyber crime and respond effectively to cyber-attacks.

3.     Initially the cyber- attacks can be carried by remotely or proximately. For example, some viruses such as Conficker, spread through a network of computers by exploiting holes in the network security or by attaching an infected USB drive to computer. Secondly, the denial of service attacks. This cyber-attack occurs when an attacker attempts to prevent legitimate users from accessing information or services. This is typically accomplished when the attacker overloads a system with requests to view information. Next is the Spearphising is another simple method by which an attack may gain access to a computer system or network.  Once the some information about the target is acquired, an e-mail is sent purporting to be forma legitimate company asking for information such as usernames and passwords to banking websites or network login. Lastly, tampering with basic electronics is a simple type of cyber-attack. It is also possible that such software or even hardware could be installed into electronics by the original manufacturer.


4.     The weakness is lack of security, vulnerable points through which a system's security may be compromised.

CHAPTER 5 LEGO: Combining Business Intelligence with a Flexible Information System

STUDY CASE
LEGO: Combining Business Intelligence with a Flexible Information System
1.      Explain the role of the database in SAP’s three-tier-system
·         First tier – client interface (client appreciation): It’s a browser type graphical user interface (GUI) running on laptop, desktop, or mobile device that submit user’s request to the appreciation server.
·         Second tier – appreciations server – appreciations server: Receive and process client requests. Send the processed requests to the database system.
·         Third tier – one or more relations database (data sources): SAP’s business suite supports database from different vendor, including those offered by oracle, Microsoft, My SQL, and others. The relational databases contain the tables that store data on LEGO’s products, daily operations, the supply chain, and thousands of employees.

2.      Explain why distributed architecture are flexible.
·         Distributed architecture are flexible because it does not require any technical skill to obtain reports from the databases. It also enables authorized personnel to have direct access to the database system from the company’s various locations, including those in Europe, North America, and Asia.

3.      Identify some of the business intelligence features included in SAP’s business software suite.
·         Business intelligence: tools for consolidating, analyzing, and providing access to large amounts of data to improve decision making.
·         The business intelligence features included in SAP’s business software suite a SAP’s supply chain management (SCM), product life cycle (PLC), and Enterprise Resources Planning (ERP) modules.
-          SCM modules includes essential features such as supply chain monitoring and analysis as well as forecasting, planning, and inventory optimization.
-          PLM modules enables managers to optimize development processes and system.
-          ERP modules includes The Human Capital Management (HCM) applications for personal administration and development.

4.      What are the main advantages and disadvantages of having multiple database in a distributed architecture? Explain.
Advantages:
·         Reflect organizational structure.
-          Many organizations are naturally distributed over several location. For example, Flextronics has plants in Mexico, Hungary, and Czech Republic. It is natural for database used in such an application to be distributed over these locations. The service company may keep database of each brand office containing details such things as the staff that work at that location, the account information of customer etc. The staff  at branch office will make local  inquires of the database. The company headquarters may wish to make global inquires involving the access of data at all or a number of branches.

·         Improved share ability and local autonomy
-          The geographical distribution of an organization can be reflected in the distribution of the data; users at one site can access data stored at other sites. Data can be placed at the site close to the users who normally use that data. In this way, users have local control of the data, and they can consequently establish and enforce local policies regarding the use of this data. A global database administrator (DBA) is responsible for the entire system. Generally, part of this responsibility is assigned the local level, so that the local DBA can manage the local DBMS.

·         Improved availability
-          In a centralized DBMS, a computer failure terminates the applications of the DBMS. However, a failure at one site of a DDBMS, or a failure of a communication link making\ some sites inaccessible, does not make the entire system in opera bite. Distributed DBMSs are designed to continue to function despite such failures. If a single node fails, the system may be able to reroute the failed node's requests to another site.

·         Improved reliability
-          As data may be replicated so that it exists at more than one site, the failure of a node or a communication link does not necessarily make the data inaccessible.
Improved Performance
As the data is located near the site of 'greatest demand', and given the inherent parallelism of distributed DBMSs, speed of database access may be better than that achievable from a remote centralized database. Furthermore, since each site handles only a part of the entire database, there may not be the same contention for CPU and I/O services as characterized by a centralized DBMS.

·         Economics
-          It is now generally accepted that it costs much less to create a system of smaller computers with the equivalent power of a single large computer. This makes it more cost effective for corporate divisions and departments to obtain separate computers. It is also much more cost-effective to add workstations· to a network than to update a mainframe system.
The second potential cost saving occurs where database are geographically remote and the applications require access to distributed data. In such cases, owing to the relative expense of data being transmitted across the network as opposed to the cost of local access, it may be much more economical to partition the application and perform the processing locally at each site.

·         Modular growth
-          In a distributed environment, it is much easier to handle expansion. New sites can be added to the network without affecting the operations of other sites. This flexibility allows an organization to expand relatively easily. Adding processing and storage power to the network can usually handle the increase in database size. In a centralized DBMS, growth may entail changes to both hardware (the procurement of a more powerful system) and software (the procurement of a more powerful or more configurable DBMS).

Disadvantages of DDBMS
There are following disadvantages of DDBMSs:
·         Complexity
-          A distributed DBMS that hides the distributed nature from the user and provides an acceptable level of performance, reliability, availability is inherently more complex then a centralized DBMS. The fact that data can be replicated also adds an extra level of complexity to the distributed DBMS. If the software does not handle data replication adequately, there wi1l be degradation in availability, reliability and performance compared with the centralized system, and the advantages we cites above will become disadvantages.

·         Cost
-          Increased complexity means that we can expect the procurement and maintenance costs for a DDBMS to be higher than those for a centralized DBMS. Furthermore, a distributed
DBMS requires additional hardware to establish a network between sites. There are ongoing communication costs incurred with the use of this network. There are also additional labor costs to manage and maintain the local DBMSs and the underlying network.

·         Security
-          In a centralized system, access to the data can be easily controlled. However, in a distributed DBMS not only does access to replicated data have to be controlled in multiple locations but also the network itself has to be made secure. In the past, networks were regarded as an insecure communication medium. Although this is still partially true, significant developments have been made to make networks more secure.
Integrity control more difficult
Database integrity refers to the validity and consistency of stored data. Integrity is usually expressed in terms of constraints, which are consistency rules that the database is not permitted to violate. Enforcing integrity constraints generally requires access to a large amount of data that defines the constraints. In a distributed DBMS, the communication and processing costs that are required to enforce integrity constraints are high as compared to centralized system.

·         Lack of Standards
-          Although distributed DBMSs depend on effective communication, we are only now starting to see the appearance of standard communication and data access protocols. This lack of standards has significantly limited the potential of distributed DBMSs. There are also no tools or methodologies to help users convert a centralized DBMS into a distributed DBMS.

·         Lack of experience
-          General-purpose distributed DBMSs have not been widely accepted, although many of the protocols and problems are well understood. Consequently, we do not yet have the same level of experience in industry as we have with centralized DBMSs. For a prospective adopter of this technology, this may be a significant deterrent.

·         Database design more complex
-          Besides the normal difficulties of designing a centralized database, the design of a distributed database has to take account of fragmentation of data, allocation of fragmentation to specific sites, and data replication.


CHAPTER 4: INTERACTIVE SESSION : ORGANIZATION


Burton Snowboards Speed Ahead with Nimble Business Process
11.    Analyse Burton using the value chain and competitive forces models.
                                
Traditional customers
-          At its peak, burton controlled over 40% of the U.S snowboarding market and its            remains the market leader despite growing competition.
-          One way Burtons has stayed market leaders is being adaptable anddynamic which is        competitive necessity.
-          Burton take feedback from its customers very seriously and will move quickly to meet    their needs. An example, of this is if a rider test a jacket and recommends repositioning  a zipper. Burtons production line mustr be able to make this adjustment quickly and  easily.

·         New market entrants
-          Burtons design manufactures and markets snowboarding equipment, one way they have  taken steps to ensure that they don’t lose customers to new market entrants is by  strengthening customers and supplier intimacy.
-          The available to promise process was taking hours to complete. (Available to promise,    in response to customer order to enquires, reports on available quantities of a requested product and delivery due dates). Burtons wanted to speed up this process so that its dealers and retail customers would have more precise information about the availability of items not in stock. Strengthening customers and supplier intimacy in this way from strong ties with them, which reduces the likely hood of new market entrants taking customers from them.

·         Substitute products and services
-          Burtons decided that it would explore basic functionalities of SAP enterprise resources planning (ERP) software and adding new layers of complexity to its IT infrastructure and maintenance costs of their equipment. This is because Burtons want attracts more customers and strengthen the loyalth of customer.

·         Customers
-          Burtons always takes feedback from its customers and always measures the customers needs. For example, Burton found that the process of reporting inventory was inefficient and both suppliers and customers could not easily determine up-to-date information on which items were in stock at which warehouse. SAP AND Burton worked together to improve communication between warehouse and supply chain efficiency.
·         Suppliers
-          Burton has different suppliers to provide different equipment. For example, Burton has implemented and currently maintains SAP enterprise software an oracle database, a SUSE LINUX enterprise server and commodity hardware.


CHAPTER 3: STARBUCKS

1.       VALUE CHAIN :
     Value chain analysis allows the firms to understand the parts of its operations that create value and those that do not. Understanding these issues is important because the firm earns above-average returns only when the value it creates is greater than the costs incurred to create the value.
   

    As it is seen from the figure above in value-chain analysis the business activities are divided into two categories: primary activities and support activities. The primary activities directly deal with the creation of products or services, whereas, support activities can be used to obtain or increase competitive edge in the marketplace.


COMPETTTIVE FORCE :
      The nature of the relationships among these forces is best presented in the following figure.




      Source: Downturn Strategist (online)

     Rivalry among existing competitors is high within the industry Starbucks operates in with major competitors like Costa, McDonald’s, Caribou Coffee, and Dunkin Donuts and thousands of small local coffee shops and cafes.
     Starbucks customers possess large amount of bargaining power because there is no and minimal switching cost for customers, and there is an abundance of offers available for them.
    The threat of substitute products and services for Starbucks is substantial. Specifically, substitutes for Starbucks Coffee include tea, juices, soft drinks, water and energy drinks, whereas pubs and bars can be highlighted as substitute places for customers to meet someone and spend their times outside of home and work environments.
      Starbucks suppliers have high bargaining power due to the fact that the demand for coffee is high in global level and coffee beans can be produced only in certain geographical areas. Moreover, the issues associated with African coffee producers being treated unfairly by multinational companies are being resolved with the efforts of various non-government organisations, and this is contributing to the increasing bargaining power of suppliers.
However, the threat of new entrants to the industry to compete with Starbucks is low, because the market is highly saturated and substantial amount of financial resources associated with buildings and properties are required in order to enter into the industry.



2.      What is starbucks business strategy? Assess the role played by technology in this business strategy.

Starbucks business strategy was to revamped its in store technology and sought to integrate its business processes with wireless technology ang the mobile digital platform such as implementing a technology that allows customers to pay using a smartphone app which is integrated with the starbucks card system which allows regular customers to pay with a pre-paid and rechargeable card at any starbucks branch. Next, rather than copying the practices of competitors, starbucks continue serving high end specialty coffee and improve the customer service, so that consumers didn’t feel like they were visiting a local fast food chain. Other than that, starbucks also focused on becoming “lean”, like many of its competitors, eliminating inefficiency wherever possible. Starbucks also launched its “starbucks digital network”, a portal designed specifically for mobile devices as opposed to traditional web browser.