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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


CAPITAL

PRODUCTS
ORGANISATION

LABOUR

SERVICES
RAW
MATERIAL

BEHAVIORAL VIEW

q
q
q

VALUES
GROUP RELATIONS
STRUCTURE

TECHNICAL VIEW

USE OF IT IN BUSINESS

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 ITPEFORMANCE 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, that
may include a combination any of these
Product development
Pre and post costing
Merchandising
Planning
Purchase
Inventory management
Production
Export
Finance and
Payroll
Features and Benefits
Effective monitoring operation of the company
Highly Flexibility
All users and organizational components integrated
Greater efficiency and perfomance

Need for ERP

Margins &
Efficiency

Competition

pro

ces

TAT to customer response


cc

tor
y

Consumer specific
requirements

Reg
ula

Ma

rke
t Co

mp

etit

ion

Efficiency

Data access and near


-instance pefomance
visiting

Retailer require an enterprise


Wide processccvisibility

To meet the regulatory standards

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

Pantaloons ERP in Retail :


Expectations from the ERP system :
Support Product development
Ideation
Trend Analysis
Collaborations with the partner in supply chain
Support sourcing and procurement
Optimizing cost, quality and speed variables
Managing Supply chain
Handling the logistics of moving finished goods from the source into store
Selling goods across a variety of channels to customer
Marketing
Brand Management
Managing markdowns and capturing customer reactions
Data Analysis

WHY SAP

Pantaloons successfully track record with SAP software


The software scalability and ease of integration
The software ability to meet company need ( a perfect fit for an enterprise wide
implementation )
Complete data integrity and real time updates
Expert support during migration effort, including support for document splitting
Low total cost of ownership
Significantly reduce infrastructure
Expected timely completion of the project

BENEFITS OF SAP
FINANCIAL AND STRATEGIC BENEFITS :
Greater business insights through more
accurate and timely financial information
Lower costs via convergence of financial
accounting and controlling
Enhanced data quality
Easier compliance with regulatory
requirements via the SAP parellel accounting

feature

Operational Benefits
Increased business transparency via drilldown
reporting capabilities
Real time, continuous reconciliation of cost
elements and expenses accounts
Ability to close books 15 to 20% faster
5 to 10% reduction in accounts receivable

Organizational benefits
Uniform organizational structure
Unified single platform and information
architecture
Integrated work environment provided an
enterprise wide view of the workflow
Improved management reporting and decision
making
Allowed integration with system of associates
and business partner
Helped in routine decision making
Allowed streamlining of business processes

2ND SUCCESS STORY.....

What Is Square?
Product Offering
Mobile Payments
Eliminate the need
for cash
Improve credit card
processing

Square Register

Square Wallet

Business Side

Consumer Side

Management
Jack Dorsey
CEO, Founder
Twitter & Square

Key Numbers

Users
4m

Volume
Day: $41m
Year: $15b

Valuation
$3.25b

Why Do People Use Square?


Value Proposition

Making Commerce Easy for Everyone

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

What Is Squares Situation?


Strengths
Powerful alignment with
worldwide aesthetics
Strong existing partnership

Weaknesses
Lack of customer service
capabilities
Higher fee structure by 1
basis point compared to next
competitor

Opportunities
Positive response on Square
product design
Cash-rich society leads to
significant amount of low
hanging fruit
Threats
Significantly fragmented market
leads to high level of competition
from PayPal and Rakuten

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