I wouldn´t be so sure to say that Tesco enjoys an IT advantage, however I do recognize that is has a solid infrastructure that makes it the top leader in the UK supermarket sector. Tesco has developed an extraordinary database of its clients which provides Tesco on a daily basis habits, preferences and customer needs. But this database was created many years ago when they decided to launch the Green Shields Stamp with the objective of giving back something to the customer and mainly with the objective to gain the customer´s loyalty. After these stamps, it was the turn of the Clubcard that enforced customer loyalty towards TESCO and continue to provide information about needs and habits of the customers. It became one of the most important marketing tools Tesco had and it was a competitive advantage face towards other super markets. In 1996 and thanks that they were constantly informed about their customer needs they decided to launch TESCO.COM with a simple investment, growth came very fast and although online sales represent a small number of Tesco´s total revenues, it growing speed is significant and has also encourage them toward opening new online markets overseas, for example the in US where they got associated with an online supermarket. In my opinion, Tesco´s contribution in this company will be the know how to operate online markets and sales, whereas the US company will have to provide expertise about the US market needs. IT for this company will be developed but it will not be necessarily copied from Tesco´s because I do not find Tesco´s IT can be considered extraordinary, but I consider it a regular software over a market that now a days exists in many supermarkets all over the world.
Considering how fast IT gets to the business world and considering that now a days many supermarket chains have access to this kind of IT, I see Tesco´s strength in their brand awareness, their infrastructure and their strategic database of the UK market. They have a great opportunity to grow sales in the online markets as well as continuing developing market stores but nevertheless this competitive advantage is a result of their long history and development of the stores and not because of an IT advantage
lunes, 21 de junio de 2010
Casadellibro.com
Casadellibro.com
Before taking a decision about sticking with the UNIX platform or switching to the new Microsoft one, it is important to state what the business priority is, whether to find an efficient and easy to implement platform in order to survive and do and effort to succeed as a business, or whether to save money and reduce costs.
If it is a budget matter, we should even consider returning to the original software to see if there is any chance to complementing it or to integrate it with other softwares. Having budget as our priority might lead us to concentrate on finding a way to integrate the current UNIX platform with other softwares, if not all of those we previously bought, a least the most important ones. This option might take more time and still have the risk to be inefficient if the softwares are not able to be integrated with the platform.
Disregarding the failure with AOL, being a .COM business and having as a real possibility to become the leader in the Spanish book market, I would not hesitate to switch to the Microsoft server because although it might be more expensive we would have to concentrate on more important issues about the platform such as adaptability, efficiency, tasks, functionality and maturity of reports, usability and easy installation and exploration. Microsoft platform would be easier to adapt it and easier to implement it. Besides they will not face the risk again of having to integrate additional softwares and probably having to contract a consulting firm to do this job. There would be certainty about the reports information and efficiency.
At the end if the company does not take action it will loose more money failing the total business that what they could spend buying a Microsoft platform which is vital for their operation. As a decision maker it is important to know how to find priorities.
Before taking a decision about sticking with the UNIX platform or switching to the new Microsoft one, it is important to state what the business priority is, whether to find an efficient and easy to implement platform in order to survive and do and effort to succeed as a business, or whether to save money and reduce costs.
If it is a budget matter, we should even consider returning to the original software to see if there is any chance to complementing it or to integrate it with other softwares. Having budget as our priority might lead us to concentrate on finding a way to integrate the current UNIX platform with other softwares, if not all of those we previously bought, a least the most important ones. This option might take more time and still have the risk to be inefficient if the softwares are not able to be integrated with the platform.
Disregarding the failure with AOL, being a .COM business and having as a real possibility to become the leader in the Spanish book market, I would not hesitate to switch to the Microsoft server because although it might be more expensive we would have to concentrate on more important issues about the platform such as adaptability, efficiency, tasks, functionality and maturity of reports, usability and easy installation and exploration. Microsoft platform would be easier to adapt it and easier to implement it. Besides they will not face the risk again of having to integrate additional softwares and probably having to contract a consulting firm to do this job. There would be certainty about the reports information and efficiency.
At the end if the company does not take action it will loose more money failing the total business that what they could spend buying a Microsoft platform which is vital for their operation. As a decision maker it is important to know how to find priorities.
lunes, 14 de junio de 2010
ERP.- ENTERPRISE RESOURCE PLANNING.- SHOULD COMPANIES ADAPT TO ERPS OR THE OTHER WAY ARROUND?
An ERP (ENTERPRISE RESOURCE COMPANY) is a software that consolidates every operation process that takes place inside a company. Based on one single data base, a company may consolidate all its process gaining efficiency and also having communicated all its different areas. There is no doubt about its effectiveness but the question is if an ERP must be developed to one company in particular o can a standard ERP be sold and have the company adjust to it?
In my opinion, it will depend on the nature of each business. For instance if we take as an example the food industry, there are some big companies in the fast food industry that worked with ALOHA, a standard ERP, for a long time and recently have decided to switch for another and new standard ERP. Based on my experience in the fast food industry and after having worked with both, an specific and personalized software is sometimes better because in the fast food industry companies use for a long time the same ingredients and receipes and their menu does not change a lot. Additionally, fast food restaurants operate under the same scheme under a proven efficient method so that implies that administrative and operational process do not change frequently. After worked with Aloha to operate a hamburger chain (Wendys) and after working with a personalized software (Subway), if I could choose among those options I would definitely take the alternative of a personalized software that might provide you more insight, detailed and useful information. Daily operations for fast food is very predictive and schedules, inventories, purchased, labor and receipes are constant.
On the other hand, if we talk about an upscale restaurant where a menu changes every day, and also the operational process are changed every day according to each customer profile, then I would choose a standard ERP, that might contain general information and which will not be to strict. I believed standard ERP are more receptive to gather different information while personalized softwares are less receptive to changes in information.
A disadvantage of having a personalized software developed is that it becomes more expensive in the short term to develop it and in the long term it is more difficult to change to another software in case there is a need. Additionally, in case there is a flaw, few people know how to handle the problems. On the other hand, standard ERP´s have a support team that might provide service at any moment.
In conclusion, I am convinced that a software or an ERP are strategic for every company, and weather they are personalized or not will depend on the nature of each business.
In my opinion, it will depend on the nature of each business. For instance if we take as an example the food industry, there are some big companies in the fast food industry that worked with ALOHA, a standard ERP, for a long time and recently have decided to switch for another and new standard ERP. Based on my experience in the fast food industry and after having worked with both, an specific and personalized software is sometimes better because in the fast food industry companies use for a long time the same ingredients and receipes and their menu does not change a lot. Additionally, fast food restaurants operate under the same scheme under a proven efficient method so that implies that administrative and operational process do not change frequently. After worked with Aloha to operate a hamburger chain (Wendys) and after working with a personalized software (Subway), if I could choose among those options I would definitely take the alternative of a personalized software that might provide you more insight, detailed and useful information. Daily operations for fast food is very predictive and schedules, inventories, purchased, labor and receipes are constant.
On the other hand, if we talk about an upscale restaurant where a menu changes every day, and also the operational process are changed every day according to each customer profile, then I would choose a standard ERP, that might contain general information and which will not be to strict. I believed standard ERP are more receptive to gather different information while personalized softwares are less receptive to changes in information.
A disadvantage of having a personalized software developed is that it becomes more expensive in the short term to develop it and in the long term it is more difficult to change to another software in case there is a need. Additionally, in case there is a flaw, few people know how to handle the problems. On the other hand, standard ERP´s have a support team that might provide service at any moment.
In conclusion, I am convinced that a software or an ERP are strategic for every company, and weather they are personalized or not will depend on the nature of each business.
The Dell Hell Experience
After realizing that a negative opinion on a blog could have such an impact on their sales, Dell started to care and to consider getting a communication strategy to face media and internet crisis. Before this happened, as Michael Dell said, they did not care much about the power of blogs. He recognized they screw up and defined his company as a learning organization that also learns from mistakes. http://www.businessweek.com/bwdaily/dnflash/content/oct2007/db20071017_277576.htm?chan=top+news_top+news+index_top+story
After this incident, Dell launched this policy of being in constant communication with their customer and they are trying to make people aware that they will have all kind of support, they already met with Jeff Jarvis with the objective to have him tell the people how they have been trying to solve their previous mistake. They are starting to launch a campaign called “The end of Dell Hell?”.
It is clear that it took too much time to Dell to take care of this matter, I believe that taking in consideration the speed of communication at this point, companies have to be aware about creating a brand position along with their customers and not only by themselves. A negative opinion can destroy every launch campaign of a company. Another learning we get off this crisis is that every company has to have a crisis strategy towards media communication. It is impossible to control and to decide what opinions are load on the net so it is important to have a fast reaction when this kind of situations arrive.
In my opinion Dell did not know how to react, it would have been important to publicly recognize this mistake and mishandle of the situation and explaining this specific situation, offering in that moment a cash return to all the unhappy customers plus a bonus. Like that they would have prevented this crisis to keep growing. On the contrary they chose to ignore for a while Jeff Jarvis blog and by the moment they tried to face the crisis it had already become a wild media issue, and still there weren´t Dell public statements.
Once there is a complaint in any business, there has to be a direct communication with the customer and if it necessarily it is important to make these communications publics so media knows the company is taking care. We have to be aware that any negative opinion or complaint is a potential threat and have to be addressed by the company, a company cannot afford to distinguished weather it is an important client or not. It is their responsibility to provide a good service to their customer.
The Dell Hell experience is such an important history fact that right now is been used as a precedent and as an argument in legal trials. The New York Prosecutor is using it as an argument to prove and press charges against for dishonesty by offering services they can´t provide. This could be an enormous precedent if Dell looses this lawsuit. http://www.nyagdell.com/
After this incident, Dell launched this policy of being in constant communication with their customer and they are trying to make people aware that they will have all kind of support, they already met with Jeff Jarvis with the objective to have him tell the people how they have been trying to solve their previous mistake. They are starting to launch a campaign called “The end of Dell Hell?”.
It is clear that it took too much time to Dell to take care of this matter, I believe that taking in consideration the speed of communication at this point, companies have to be aware about creating a brand position along with their customers and not only by themselves. A negative opinion can destroy every launch campaign of a company. Another learning we get off this crisis is that every company has to have a crisis strategy towards media communication. It is impossible to control and to decide what opinions are load on the net so it is important to have a fast reaction when this kind of situations arrive.
In my opinion Dell did not know how to react, it would have been important to publicly recognize this mistake and mishandle of the situation and explaining this specific situation, offering in that moment a cash return to all the unhappy customers plus a bonus. Like that they would have prevented this crisis to keep growing. On the contrary they chose to ignore for a while Jeff Jarvis blog and by the moment they tried to face the crisis it had already become a wild media issue, and still there weren´t Dell public statements.
Once there is a complaint in any business, there has to be a direct communication with the customer and if it necessarily it is important to make these communications publics so media knows the company is taking care. We have to be aware that any negative opinion or complaint is a potential threat and have to be addressed by the company, a company cannot afford to distinguished weather it is an important client or not. It is their responsibility to provide a good service to their customer.
The Dell Hell experience is such an important history fact that right now is been used as a precedent and as an argument in legal trials. The New York Prosecutor is using it as an argument to prove and press charges against for dishonesty by offering services they can´t provide. This could be an enormous precedent if Dell looses this lawsuit. http://www.nyagdell.com/
martes, 8 de junio de 2010
What to expect in the short term of Google?
What is next in the short term for facebook? In july, 2009 there were 250 million users, today after only one year, Facebook claims having a 400 million people network. What can we expect for the next two years?
Facebook is considered the second page with more traffic users all over the world and what it began by being a student network it has spread to every type of social group. How fast and how far can it still growing if we consider the current worldwide population and considering they decided to not get in to the China Market. I believe their growth rate might slow but will be still growing according to the growth of internet users in the world. Internet has become a first choice network of every internet user because of its size and because it is becoming a day to day experience to communicate this way with others.
Although their great number of users, Facebook faces the challenge to establish clear rules and conditions about privacy. Recently it has been questioned about the lack of security in the use of our information and legally speaking has been questioned for the copyright policy that it try to change.
From a financial or business point of view, Facebook faces the challenge is this next two years to demonstrate how profitable its business model can be. For the last two years it has been the target of serious doubts and criticism because of its lack of profitabilities. With no doubt, I believe that during this next couple of years Facebook will show its business muscle and that will use every tool and information piece to develop a great platform for advertising and marketing services. Any kind of advertising network would want a 400 million captive consumer client. Facebook beside having a captive client has its profile and a lot of information that it will use in order to sell more efficient marketing services. There had been some previous experiences with I Tunes and in the short term I expect to see and explosion of synergies with all kinds of companies that will use Facebook platform to advertise their products. Honestly I think it will become a great competitor of google in the advertising sector with probably more tools to talk directly to the client. Sidebusiness like games will continue to grow and will also continue to be a source of revenue, although its more important one will definitely be advertisement and a tool like facebook connect will help it to consolidate more external or outside facebook information about the user.
Facebook is considered the second page with more traffic users all over the world and what it began by being a student network it has spread to every type of social group. How fast and how far can it still growing if we consider the current worldwide population and considering they decided to not get in to the China Market. I believe their growth rate might slow but will be still growing according to the growth of internet users in the world. Internet has become a first choice network of every internet user because of its size and because it is becoming a day to day experience to communicate this way with others.
Although their great number of users, Facebook faces the challenge to establish clear rules and conditions about privacy. Recently it has been questioned about the lack of security in the use of our information and legally speaking has been questioned for the copyright policy that it try to change.
From a financial or business point of view, Facebook faces the challenge is this next two years to demonstrate how profitable its business model can be. For the last two years it has been the target of serious doubts and criticism because of its lack of profitabilities. With no doubt, I believe that during this next couple of years Facebook will show its business muscle and that will use every tool and information piece to develop a great platform for advertising and marketing services. Any kind of advertising network would want a 400 million captive consumer client. Facebook beside having a captive client has its profile and a lot of information that it will use in order to sell more efficient marketing services. There had been some previous experiences with I Tunes and in the short term I expect to see and explosion of synergies with all kinds of companies that will use Facebook platform to advertise their products. Honestly I think it will become a great competitor of google in the advertising sector with probably more tools to talk directly to the client. Sidebusiness like games will continue to grow and will also continue to be a source of revenue, although its more important one will definitely be advertisement and a tool like facebook connect will help it to consolidate more external or outside facebook information about the user.
lunes, 31 de mayo de 2010
Google, one of the top 3 media tech companies all over the world might become victim of its own success; At this point federal courts in the U.S. and courts of the EU are studying potential antitrust policies that Google might be applying. Additionally with the new U.S. regulation Google might be forced to be divided into different companies and no matter its great cash liquidity will also be limited to buy new media tech companies. In concrete one of Google´s main concern is that its growth will be under scrutiny and will be slowed down.
Another important concern about Google has just come to the light during its conflict with the China government. Due to Government pressure Google might not be able to operate its search platform and in that case will be left out of the Market because its lack of infrastructure to distribute and sell its other products. On the contrary Microsoft will have less problems dealing with China market thanks to its current infrastructure developed over the last years.
As a response to this last concern some people are wondering about Google´s vulnerability. Google is being questioned about its great dependence on media advertisement. Google´s dependence on their search platform could face many challenges in case there is a new breakthrough in technology or once new advertisement tools like movil phones become more efficient to marketing campaigns.
About Google products, Android, Google Desktop 3 and Google Books will face serial challenges. Android most important disadvantage is that because it is applied on different phone platforms, new tools and updates of Android might be difficult to be installed in all kinds of movil phones. An important disadvantage for Google Desktop 3 is that one important part of the market, specifically Companies have been advice not to load their hole information on Google server because of confidentiality and efficiency risks. Finally, the concern about Google Books is mainly the legal uncertainty about author copyright data that at this point is not clear.
I believe that although its popularity and the size of the company, Google has to face these challenges promptly and be aware of network competitors like facebook which are gaining huge advertising markets and developing tools that might jeopardize Google hegemony in the future.
Another important concern about Google has just come to the light during its conflict with the China government. Due to Government pressure Google might not be able to operate its search platform and in that case will be left out of the Market because its lack of infrastructure to distribute and sell its other products. On the contrary Microsoft will have less problems dealing with China market thanks to its current infrastructure developed over the last years.
As a response to this last concern some people are wondering about Google´s vulnerability. Google is being questioned about its great dependence on media advertisement. Google´s dependence on their search platform could face many challenges in case there is a new breakthrough in technology or once new advertisement tools like movil phones become more efficient to marketing campaigns.
About Google products, Android, Google Desktop 3 and Google Books will face serial challenges. Android most important disadvantage is that because it is applied on different phone platforms, new tools and updates of Android might be difficult to be installed in all kinds of movil phones. An important disadvantage for Google Desktop 3 is that one important part of the market, specifically Companies have been advice not to load their hole information on Google server because of confidentiality and efficiency risks. Finally, the concern about Google Books is mainly the legal uncertainty about author copyright data that at this point is not clear.
I believe that although its popularity and the size of the company, Google has to face these challenges promptly and be aware of network competitors like facebook which are gaining huge advertising markets and developing tools that might jeopardize Google hegemony in the future.
lunes, 24 de mayo de 2010
Microsoft in jeopardy? Don´t think so...
Ten years ago Microsoft was declared to be a Monopoly by a U.S. Court*. Today the most powerful company that provides software, internet and computer services and solutions is being questioned about its future; will it survive or will it disappear? Personally, I do not see how a company like this can go bankruptcy nor lose its predominant influence as a software and media company. I am aware that because of the fast grow of its competitors their challenge is to be able to keep growing or at least to maintain their current dominant market.
According to Forbes (http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=MSFT), Microsoft has been ranked for two years in a row as the 49th biggest company in the world, with sales over $59 Billion, Profits over $17 Billion and a market value of $230 Billion. On the other hand Google, one of its toughest competitors has a market value of $117 Billion and sales of $24.91Billion. Also ranked by Forbes as the 120 biggest company in the world (http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=GOOG).
Based on this facts I just don´t see Microsoft disappearing in the future. Microsoft already started to diversify its business for example with the X-Box that it has been a success. Due to the huge penetration of Microsoft over all this years by far it is the most used software all over the world, almost every computer user learned how to use one computer thru a Microsoft software or a Windows platform and although there are new and very strong competitors like Google, it seems unlikely that Microsoft may lose all of its captive users. Microsoft has a lot of resources to buy small competitors and also has one of the biggest budget for research and design technology, I strongly believe that it is a matter a of time for Microsoft to start regaining field in the market, whether by continue diversifying its investments, whether by buying a new and important technology company or whether developing new services or softwares of its own. Microsoft is a consolidated company that at this point does not depend on intangible assets, it has an infrastructure that will allow it to remain being a dominant player in the market.
*For more information about the 1999 resolution of the Washington District Court where Microsoft was declared a Monopoly please visit http://www.thisnation.com/library/ms-findings.html.
According to Forbes (http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=MSFT), Microsoft has been ranked for two years in a row as the 49th biggest company in the world, with sales over $59 Billion, Profits over $17 Billion and a market value of $230 Billion. On the other hand Google, one of its toughest competitors has a market value of $117 Billion and sales of $24.91Billion. Also ranked by Forbes as the 120 biggest company in the world (http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=GOOG).
Based on this facts I just don´t see Microsoft disappearing in the future. Microsoft already started to diversify its business for example with the X-Box that it has been a success. Due to the huge penetration of Microsoft over all this years by far it is the most used software all over the world, almost every computer user learned how to use one computer thru a Microsoft software or a Windows platform and although there are new and very strong competitors like Google, it seems unlikely that Microsoft may lose all of its captive users. Microsoft has a lot of resources to buy small competitors and also has one of the biggest budget for research and design technology, I strongly believe that it is a matter a of time for Microsoft to start regaining field in the market, whether by continue diversifying its investments, whether by buying a new and important technology company or whether developing new services or softwares of its own. Microsoft is a consolidated company that at this point does not depend on intangible assets, it has an infrastructure that will allow it to remain being a dominant player in the market.
*For more information about the 1999 resolution of the Washington District Court where Microsoft was declared a Monopoly please visit http://www.thisnation.com/library/ms-findings.html.
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