Decision Making

Decision Making

            Decision making is a part of everyday life, making good decisions is the key to being successful in life and in business. If I as an individual make a bad decision it most likely will only affect me, however if the leadership of a company make a bad decision the ramifications can affect many people.  The key to making good decisions is to have a process for analyzing the problem or situation at hand.  By going through the process and evaluating all possible solution the best course of action can be identified.  There are six steps in making a decision.  First one must identify the issue. Next all the relevant facts must be considered and understood. Third is to brainstorm possible solutions. Fourth is to compare the pros and cons of the proposed solutions. Fifth is to select the best possible solution to the problem. The final step is evaluate the decision and to ensure proper implementation. At times this process can be completed very quickly for simple decisions possibly in seconds.  For more important decision one must really weigh the options and outcomes of making a particular decision. (1)

            It is important that the correct person makes the decision.  A firm should have people making decision based on their training and experience. For example someone who has no experience in business should not decide that their firm needs to heavily invest in an oversea facility in Thailand.  It is crucial that the correct decision maker or makers be identified.  More so when making business decision emotion should not play a role.  That is why many companies do not allow spouses to report to each other.  “Do not make any serious decisions because you are angry, hurt, depressed, desperate, or frightened.” (2) This could lead do a poor decision that has serious consequences going forward. (2)

1. http://www.businessballs.com/problemsolving.htm

2.http://home.ubalt.edu/ntsbarsh/opre640/partxiii.htm#rhowtoavoidhttp://www.studygs.net/problem/index.htm

Internet Investing and Banking

 The internet has changed the world as we once knew it, and will continue to do so in the future. The World Wide Web has changed the way we shop, communicate and now it is changing the way we invest and even more importantly it is changing the way our financial markets behave. In a time not long ago the only way to buy and sell financial instruments such as stock was to be a stockbroker or be in close communication with one, which is no longer the case. Now, anyone with an internet connection can trade stocks, bonds and other financial instruments twenty four hours a day seven days a week. More-so investors can make transactions at a fraction of the cost of using the traditional stockbroker client format.

 Online trading gives users the ability to learn about trading and the markets. Many of the trading platforms allow users to test investment strategies using a virtual market. These virtual markets do not risk any of the “investors” money, allowing them to hone their trading skill before they invest on their own for real. (1) TD Ameritrade provides this service to its customer using a tool they called paperMoney. “PaperMoney^® is a realistic way to experiment with advanced order types and test new ideas, while thinkOnDemand lets you practice trading in historical markets without risking a penny.” (2)

 TD Ameritrade is just one of the companies that offer customers the ability to trade online. TD goes a step further and allows its client to trade on the go with their mobile trading tools. TD Ameritrade offers mobile trading apps for the iphone, blackberry, android, and windows phone devices. Investors can see real time stock quotes and analysis while they are on the move or simply away from a computer. Investor can use a wide variety of trading tools provided by the service to customize the information that they receive on their online or mobile accounts. (2)

 Another way consumers can manage money is through online banking. Similar to online trading online banking allows users to manage their finances anywhere that there is an internet connection. “Of all the major Internet activities tracked since March 2000, online banking has grown the fastest, according to the Pew Internet and American Life Project. Fully one-quarter of all adults, and nearly half of all Internet users, reported being online banking customers.” (3) In addition to banking over a computer, many banks offer apps that allow users to transfer funds, pay bills and track purchases all from their smartphones. The current trends seem to be constantly increasing the speed in which business is conducted.

1. http://online-stock-trading-review.toptenreviews.com/

2. http://www.tdameritrade.com/tradingtools/

3.  http://www.forbes.com/bow/b2c/category.jhtml?id=3

Research in Motion

There are many types of smartphones on the market today. One line of smartphones is Blackberry. Blackberry is produced a maintained by a company called Research in Motion or RIM. “RIM is a Canadian global telecommunications company headquartered in Waterloo, Ontario, Canada that designs, manufactures and markets wireless solutions for the worldwide mobile communications market. RIM provides platforms and solutions for access to information, including e-mail, voice, instant messaging, short message service (SMS), Internet and intranet-based applications and browsing.” (2)RIM has been in the news a lot recently partially due to their plummeting stock price. Investors are concerned about RIM losing market share due to a number of other companies that produce smartphones, such as Apple and Google.

RIM is fighting to keep customers from switching to other smartphones. With the iphone now available on carriers other than AT&T consumers have yet another choice in the smartphone market, and many are choosing to switch phones. Last week RIM had technical problems that left some users without e-mail and other service for as much as three days. The company has resolved to not go down without a fight. RIM is offering over $100 of premium applications to blackberry users for free until the end of the year. They have made it easier for programmers to summit their own apps. (3) According to RIM the blackberry app store is the second most profitable app store in the market ahead of android. “Since the inception of BlackBerry App World, RIM’S app store, 1 billion apps have been downloaded from the store, with 140 million applications downloaded each month.”(1)

Earlier today RIM CEO, Mike Lazardis, unveiled their next generation operating system, BBX. RIM claims the new system has more advanced features. It claims it will be better for gaming, work better HTML 5 and be more profitable for software designers. RIM may have a difficult time competing as apple users are very loyal. RIM’s initial tablet launch in April did not go very well, while the launch of the new ipad was viewed as an enormous success. RIM is going to have to continue to innovate and improve their products if it is going to be able to compete in the fast paced mobile technology market. (1)

1. http://news.cnet.com/8301-1035_3-20121961-94/rim-unveils-its-next-gen-mobile-os-bbx/

2. http://en.wikipedia.org/wiki/Research_In_Motion

3. http://news.cnet.com/8301-30686_3-20119163-266/blackberry-service-issues-spread-to-u.s-and-canada/

Cloud Computing

 Cloud computing can include a variety of things. One thing included in cloud computing is software as a service or SaaS. Saas is “A service provided by a company, group, community, or government that provides a software solution to the system clients.  The software may be internal to a business, delivered by other means, or most commonly delivered over the Internet.” (1) Saas can allow for the immediate update of features in the software system. This means that as a software company develops new ideas or concepts for their software these new features can be immediately available as opposed to the traditional software method of waiting for the new software release. Software as service also means that the program does not need to be stored on a device this can allow for a reduction in the size of the device that is running the software, this can pave the way to smaller and smaller devices in the near future. (1)

 There are numerous companies that offer cloud computing services, one such company is Sungardas. Sungardus systems offer many features to their clients including; reliability, compliance and security, reduced risk, and deep recovery expertise. There feature give the consumer an advantage over using an internal system by moving the responsibility of managing their system from internally to placing the responsibility in the reliable hands of Sungardas. By shifting this responsibility to Sungaras companies can focus on conducting business rather than the functionality of their systems. This enables firms to increase their efficiency and is likely to reduce costs related to managing systems. (2)

 Many companies use cloud computing, this includes Netflix. In April of 2010 Netflix decided that, “the DVD-by-mail company decided that over the next two years, it would move most of its Web technology — customer movie queues, search tools and the like — over to the computer servers of one of its chief rivals, Amazon.com.” This decision allows Netflix executives to focus on expanding its business rather than expanding its servers. (3)

 RehabCare, founded in 1982 has put cloud computing to use. “It's now running its own custom-built software on the iPod Touch, which it delivers through Apple's App Store. It syncs data using servers and software provided by a third-party vendor, Casamba, with which it co-developed the software.”(4) The software keeps track of treatment and billing information as well as appointments. The software has helped the company stay organized by centralizing its information and allowing remote access. Rehab care also uses a cloud based email system. (4)

Another company utilizing cloud technology is Intercontinental Hotels Group. “InterContinental Hotels Group, with more than 600,000 hotel rooms under seven brands, including Holiday Inn and InterContinental, laid the foundation in 2010 for greater use of software as a service, infrastructure as a service, and, ultimately, hybrid cloud computing that blends an in-house cloud data center with public cloud services from providers such as Amazon.”(4) Although the use of the cloud has not yet save the company money management believes that in the future it will.

1. http://www.cloudave.com/9239/the-confusions-of-iaas-paas-and-saas/

2. http://www.sungardas.com/Solutions/Cloud/Overview/Pages/CloudOverview.aspx

3. http://www.nytimes.com/2010/04/19/technology/19cloud.html

4. http://www.informationweek.com/news/hardware/data_centers/229000706

Extending Information Systems into the Mobile Regime

 Businesses use a wide variety of software and hardware in their everyday operations. Many of this hardware and software can be utilized to expand the business’s ability to perform tasks on the go. Having the ability for employees to perform work related tasks will away from their primary work stations can greatly increase business productivity and efficiency. Using mobile technology employees can perform task while traveling, visiting construction sites, away from their desk, and so on, thus increasing the speed at which the business can operate.

 Touch screen technology can allow employees to manage inventory while walk through a warehouse. Employees can simply hold a tablet computer such as, an iPad, just like a clipboard and make up dates to inventory records in the main system. WahSoft LLC makes an app that allows a business to manage inventory on the go, for only $6.99. (1) Laptop computers allow work to be performed while away from the office. Employees can type document send and check email and almost any other function that would traditionally be performed on their desktop computer in the office. Smart-phones allow employees to send and check emails while on the go therefore they are always in the loop. Additionally the Blackberry 7 comes pre-installed with documents to go. “Documents To Go Premium Edition is an all-in-one solution that provides users with the ability to view, edit and create Microsoft Word, Excel and PowerPoint files and attachments as well as view critical PDF files all on their BlackBerry Smartphone.” (2)

 There are many other types of mobile application software that can be run on a variety of Smartphone platforms. This includes applications that can allow businesses to, track expenses, trade stocks or access other relevant information. E-trade Mobile Pro allows users to make trades on the going using, an iPhone, iPad, Blackberry, or Android device. E-trade claims users can “Securely buy, sell, and place stock and options orders with just a few taps.” (3) Workgroup application software allows users to work on projects as a group. Web-based work group software stores documents on an internet server. This allows access to projects anywhere there is an internet connection. All of these allow for greater productivity in business if used effectively.

1. http://appfinder.lisisoft.com/app/inventory-for-ipad.html

2. http://www.dataviz.com/products/documentstogo/blackberry/

3.https://us.etrade.com/e/t/mobile_pro?SC=S056901&ch_id=P&s_id=GOOG&c_id=MBLPRO&o_id=60DAY+500&gclid=CNyz3MHbrKsCFec65QodmgZV8A

Value Chain

 I have decided to start a company that uses a web-site to allow students to buy and sell CDs. It is important to evaluate the value chain of the new firm. A value chain is a series of activities that include inbound logistics, warehouse and storage, production, finished product storage, outbound logistics, marketing and sales, and customer service. The site will purchase CDs from sellers; the CDs are the raw materials. The items will be shipped in pre-paid envelopes that will be sent to the seller. The item will then arrive at the warehouse where it will be processed. The CD will be cleaned and inspected for defects upon passing inspection it will be cataloged, stored and listed on the site for purchase. After the CD is stored customer service will pay the seller either electronically or via check. If the CD is found to be defective it will be sent back to the seller without payment. This covers warehouse and production. Customers will be able to search through the inventory available by album title, artist name or genre. Customers can make selection and choose to pay with a credit card, debit card or via PayPal. The web-site will be marketed using a variety of internet advertisements as well as ads in school papers. Once a customer makes a purchase it will located in the warehouse and shipped in a flat rate envelope. This business plan outlines all of the steps in the value chain as required for the assignment. If I were to start this sort of business I would use a more streamline process which I have described below The site will be designed so students can directly buy and sell to each other so my business will not need to take possession of any goods. We will charge a listing fee to all the buyers. Students will pay using the web site and the seller will be paid electronically or by check the sale amount minus the listing fee. Sellers will once the buyer receives the CD and confirms it was the CD listed. By not taking possession of any CDs we have can keep costs low and increase the efficiency of the business. The firm will focus on customer service and marketing. The wed-site will use an aggressive advertising campaign involving internet ads, advertisements in student newspapers and coupons for both buyers and sellers. The customer service department will ensure the satisfaction of both the buyers and sellers respectively. Sellers will be rated by the buyers on characteristic such as honesty, mean was the CD advertised the CD received, and timely delivery. The rating systems will help to stop sellers from taking advantage of buyers. The prices will be set by the seller and can be change at any time before the item is purchased. The market will determine that price, if a seller has priced the CD to high no one will purchase it, and the seller will lower the price in order to sell. By using this method the firm need not take possession, store, or ship any goods, it can act as a middle-man while ensuring customer satisfaction.

Analyzing the Value of an Information System

 There are many types of e-commerce information systems. For the purpose of this assignment I chose to analyze the amazon.com system. Amazon is primarily a business to consumer system. It offers a wide variety of products to consumers. The products are organized by category so the consumer can find what he or she is looking for with ease. The system also recommends products that the consumer that may be of interest to the consumer. 

 Customers have the ability to input the products they are looking for, and then the system processes the request and generates a list of related items. Amazon has the ability to streamline the distribution of a product from manufacturer to the final consumer. This is an extremely valuable feature of the system. It reduces cost to the consumer as well as to the manufacturer because it reduces the cost of distribution. 

 The Amazon system also allows the consumers to review the products they have purchased. This is a valuable feature for prospective buyers. A buyer may view a product’s specifications and features and then they are able to see what other people thought of the item after their purchase. While anyone can write a review of any product the system highlights the reviews that were written by people whom have a verified purchase of the item through Amazon. This is valuable because a prospective buyer is assured that the review actually owns or owned the item.

 The system also saves customer information. Users log into their accounts to finalize purchases. This streamlines the checkout process for the consumer. That data is then organized and Amazon may use that information to analyze customer buying patterns to better position itself for the future. The business is based entirely around their information system making it extremely valuable.