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Cis 301 Technology

Cis 301 Technology. Lecture, Week 3. Introduction. Technology Issues, Changes, Trends. Topics of Discussion. According to a recent Boston Consulting Group study published in Inc. Magazine, “One quarter of all business-to-business purchases will be made online by 2003.”

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Cis 301 Technology

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  1. Cis 301 Technology Lecture, Week 3

  2. Introduction • Technology Issues, Changes, Trends

  3. Topics of Discussion • According to a recent Boston Consulting Group study published in Inc. Magazine, “One quarter of all business-to-business purchases will be made online by 2003.” • The transactions will be worth an approximate $2.8 trillion

  4. Small business software • To buy or rent? • Software now available for small business owners that allows similar automation to big companies • Application service providers, Internet business services, online outsourcers to the rescue

  5. Application Service Providers (ASPs) • Many services are free or offer free samples • Applications run off remote servers and accessed through a web browser • Businesses don’t need to install or manage any new software • ASPs act as a virtual tech department

  6. ASPs--Small business answer • Saves time and money • Reaps benefits of complex applications without investing heavily or committing too deeply • Great concept

  7. Real Life--The Other side of the story • By nature, small business owners are control freaks • Owners are reluctant to give up control over certain core business functions • And if they are financial in nature, prepare for a struggle

  8. What This Means • On the tech side, entreprenuers are still on somewhat shaky ground when it comes to tech talk • On the truth side, the entreprenuer is not losing control because: • information often resides on a shared server • information can be accessed 24 hours a day, 7 days a week

  9. Next Steps • Find the right ASP, do some research • Examples: • NetLedger Inc.--an online accounting platform • Salesforce.com--collaborates and shares vital data with entire sales force • Stamps.com--print postage from a PC • Agillion--Manage interactions among co-workers, business partners, and customers

  10. Technology--Changing Face of the workplace • Your office can be anywhere--boat, car, bar, beach • With a cell phone, a pager, an answering service, and a laptop or a combination of any of these, work is anywhere, anytime, anyplace • Working from home surged 24 percent between 1998 and 1999 to 20.1 million

  11. Imported Labor • Improved telecommunications and the need for around-the-clock service are driving companies to look overseas for labor.

  12. And where do they look? • Eastern Europe has a surplus of skilled mathematicians and engineers but there is lack of legal protection there for US businesses • Israel is known for sophisticated programmers and product developers but labor costs are no cheaper than in the US • Phillipines offers a cheap, English fluent labor force, but workers lack the skills of Indian programmers

  13. And why India? • In India, a company can hire managers who are ex-military, ex-brigadier generals, people with good leadership skills, good at following rules and directions. • And beginning computer programmers earn $600-$1000 a month in India, compared to $4000 to $5000 in the US

  14. But there are other costs, beyond wages • In India, overhead is about twice as high per engineer as in the US • Companies there pay a premium for international satellite or telephone transmissions • The cost of air conditioners to keep computers at room temperature can be exorbitant • Transportation to and from work is a fringe benefit because many Indian workers don’t own cars • Free tea service comes to every desk four times a day

  15. Communications • More than the cost of workers communication is what makes or breaks companies that hire workers overseas • It’s very important to understand how to communicate a sense of urgency. • Example: Be explicit. Is this a quick and dirty job or do you want it to be bulletproof from Day One?

  16. Other issues • Backup is critical • Customer service must be stressed • Indian partners tend to work according to personal relationships, not contracts

  17. Time differences • India is 12 1/2 hours ahead of California--the half hour addes so that the nation can be on one time zone. • Corporate officials on the different continents schedule weekly teleconferences before or after regular working hours so they can communicate.

  18. Biggest Challenge • Convincing technologically savvy Indian workers to tailor their products to foreign consumers • In a foreign country, they don’t see the user and so they don’t have to worry over user-friendliness

  19. Survey reveals traits of firms using the Web • Internet users are more likely to be: • based in large metropolitan areas • have at least 5 employees • anticipate faster sales growth

  20. Case study • Establish groups and complete the Sears case study on pages 69-70

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