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INFORMATION SYSTEM DEVELOPMENT STRATEGY FOR JAT UP TO 2020

Paris Graduate School of Management

Thai Nguyen University

INTERNATIONAL EXECUTIVE
MASTER OF BUSINESS ADMINISTRATION PROGRAM

THESIS TITLE:

INFORMATION SYSTEM DEVELOPMENT STRATEGY
FOR JAT UP TO 2020

Student’s name:

MAI ANH HONG

Intake I

2012



TABLE OF CONTENTS
Table of Contents

3

List of Tables

5

List of Figures

6

INTRODUCTION

7

Chapter 1: The Rationale

11

1.1. Strategy Management

11

1.1.1. Corporate strategy

11

1.1.2. Competitive Strategy

18

1.1.3. Functional strategy

19

1.2. Information management and information technology

19


1.2.1. Theory

19

1.2.2. The roles of Information management and Information

23

1.2.3. Strategic options for information technology applications

25

Chapter 2: Analyze the Business Invironment and IT Status of JAT

27

2.1. Overview of JAT

27

2.2. Analysis of the external factors affecting to JAT

34

2.2.1. Macroscopic environment

34

2.2.2. Analysis on the industry premise

39

2.2.3. Analysis of competition, matrix model CPM

43

2.2.4. Matrix model EFE

44

2.3. IT Status

46

2.3.1. Management information systems

46

2.3.2. Implementation of IT applications of JAT

48

2.3.3. SWOT analysis

50

Chapter 3: Conclusions and Recommendations
3.1. Vision and Mission

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53

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3.2. Strategic recommendations for JAT

53

3.3. Implementation (solution)

55

3.3.1. ERP Solutions

55

3.3.2. Action plan

69

3.3.3. IT strategic implementation

73

CONCLUSION

77

REFERENCE DOCUMENTS

78

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List of Tables
Table 2.1: Growth speed of revenue and profit 2008-2012

27

Table 2.2: Structure of chartered capital

31

Table 2.3: Structure of employees in the company JAT

32

Table 2.4: Summary of machine and equipment at JAT

32

Table 2.5- Analysis of competition, matrix model CPM

43

Table 2.6: Matrix model EFE

44

Table 2.7: SWOT Analysis

50

Table 3.1: IT strategic implementation

73

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List of Figures
Figure 1.1: Types of Information systems

20

Figure 2.1: Organization chart

29

Figure 2.2: JAT website

47

Figure 3.1: The ERP

54

Figure 3.2: ERP in production process management

68

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INTRODUCTION
1. The Urgency of the subject:
Internet has created a whole new atmosphere in the business world, with the
advantages and challenges. In Vietnam, the business environment is increasingly
competitive, the enterprise early in the management process improvement through
the application of IT shall be deemed to have grasped in the hands of an effective
competitive tool.
An ICD recent survey showed that, as of quarter 1/2012, Vietnamese
enterprises are ranked top 3 in the growth area of the laptop (31.8%), followed by
Indonesia and Singapore. This shows that this is a good environment for the
application of IT in the enterprise management to increase performance. While
many SMEs use computers to perform simple office tasks, a significant number
quickly apply business management software to help businesses reduce the time and
labor savings. This business agility in setting up the website to marketing and sales
tools, operating via internal network, perform electronic transactions, online data
sharing.
The obvious advantages of IT that helps product development through
automation technologies that help improve the services and products; through IT
can develop new markets, the sale of new low cost efficiency. Many SMEs over
time "digitized" admitted: by applying IT in management, company resources are
used effectively. There are now operating an online store is very smooth, the
invoice, tax reporting and payment of orders is done online, so the company's
human resources "micro" - only in the number of 7 - but promote strength twice the
normal operating.
IT applications in management also help to create a more professional style,
better confirm the brand in the eyes of customers. IT not only contribute to the
expansion, but also support its brands in creating and promoting the professional
image of the brand to consumers.

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IT applications for small and medium businesses to consider the following
aspects:
- Internal business systems including customer relationship management, is a
set of management, care and building relationships between customers and
businesses, help businesses access method and communicate with customers in a
systematic and efficient management of customer information such as account
information, demand, communication and other issues in order to better serve
customers. The overall goal is to find, attract and win new clients confidence,
maintaining the partnership has, entice former clients back, reduce marketing costs
and to expand customer services. The measurement and evaluation of the
relationship with customers is very important goals implemented war luoc.He the
internal business management system document management, finance and
accounting; human resource management force.
- Communication and collaboration through VoIP; Content Management
System; E-mail; Voice Mail; Workshop Web; business process management.
- Implementing E-Commerce - Business to Business (B2B) or Business to
Customer (B2C) through Internet shop; supply chain management; Online
Marketing; Marketing offline.
JAT is the name of the joint stock company manufacturing automobile parts
and industrial equipment began to take shape in 2000. At first a group of engineers
working in the joint venture company producing motorcycle parts separated
established factory specializing in the manufacture of mechanical equipment,
fixtures, test fixtures offer for companies satellite companies. In 2003, the
mechanical workshop to expand the manufacturing sector a number of motorcycle
spare parts (lever, hand held, tripod after, need brakes) for cheap motorcycle
company private in writing male. Production of JSC Industrial Parts and Equipment
JAT (JAT Company) is established on the basis of the above mechanical workshop,
in order to catch the trend of localization of motorcycle companies Japan's Honda,

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Yamaha. The company operates primarily in the areas of manufacturing parts,
motorcycle parts, automotive, industrial equipment and other mechanical products.
Since its inception, the company has determined to survival and development
company to build yourself the most advanced management model based on the
selective integration model management companies Venture , 100% foreign owned
company so streamlined and more efficient, with the strategy: high stable quality Delivery time hourly meet - Leading market peers on the lowest cost.
However, in the process of understanding, developing research strategies of JAT,
researchers found that JAT is very weak in the application of IT in business
operations, from production management system deployment production, customer
care to participate in the process of e-commerce, marketing management ... not been
implemented well. Therefore, the deployment of construction a JAT and
information system towards e-commerce activities is extremely imperative in the
development strategy of the company in the current period.
2. The purposes of research:
Research status of IT applications in the process of production and business
activities of the Company, from strategy development through the construction
company, promoting the development and management of information systems
JAT.
3. The object and scope of the study:
Learn about stock companies manufacturing auto parts and JAT industry
equipment including history and development, enterprise resource elements of the
current operational status; external factors affect the business; internal business
analysis; SWOT analysis.
4. The rationale and methodological practices:
Combination of theoretical knowledge of the course management
information system; actual deployment of information systems for small and

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medium enterprises; situation applicability of the enterprise; policies to e-commerce
development for small and medium enterprises in Vietnam today.
5. The contributions of the thesis:
Offer applicable solution set, construction and management of information
systems applied to the company JAT.
6. Structure of the thesis:
The thesis consists of 03 chapters:
Chapter 1: The rationale.
Chapter 2: Analyze the Business Invironment and IT Status of JAT.
Chapter 3: Conclusions and Recommendations.

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Chapter 1: The Rationale
1.1. Strategy Management:
Strategies can be formulated on three different levels: Corporate level;
Business level and funtional or departmental level.
1.1.1. Corporate strategy:
The art of building a long-term objectives and policies implemented to guide
and generate competitive advantage of enterprises.
Characteristics of corparate strategy of an enterprise:
- Long-term orientation: corparate strategy set objectives and determines the
development direction of the enterprise in long-term period (3 years, 5 years, 10
years in order to orient operation for the enterprise in a business environment.
- Objective: Strategy often determines clearly the basic objectives. The
business orientation of each enterprise in each period and policies in order to
implement correctly the objectives set out.
- Relevance: this requires enterprises when building strategy need to evaluate
correctly the factual situation of their business activities. At the same time they
must regularly review and adjust to be suitable for environmental changes.
- Continuity: strategy must be reflected during process continuously from the
elaboration, implementation, inspection and evaluation to strategic adjustment.
- Strategy in current conditions cannot be separated from the competition
because corparate strategy ensures competitiveness of the enterprise in the market.
In the current globalization process, the business operations are connected all over
the world creating the influence and interdependence. Since then it creates fierce
competition among enterprises in the industry as well as the industry in the
economy.
Corparate strategy plays an important role for the existence and development
of each enterprise. The right strategy will create a good direction for the enterprise,

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business strategy can be considered as the Lodestar leading the enterprise in the
right direction. Business strategy provides many benefits to the enterprise, the
importance of it shown in the following aspects:
- Corparate strategy helps the enterprise orient its activities in the future
through analysis and prediction of business environment. Business is an activity that
is always under the influence of the external and internal factors. Strategy helps the
enterprise has both flexibility and initiative to adapt to the market changes, at the
same time ensure that the enterprise operates and develops in the right direction. It
can help the enterprise strive to implement objective of improving its position in the
market.
- Trategy helps the enterprise seizes opportunities as well as fulfilled risks
for the resource development of the enterprise. It helps the enterprise exploits and
use reasonably the resources, promote the strength of the enterprise.
- The strategy creates an orbit operation for the enterprise, helps the
enterprise to link individuals with the other benefits together towards a common
purpose, develop the enterprise. It creates a closed link among employees and
between managers with employees. Thereby to strengthen and enhance furthermore
the internal force of the enterprise.
- Corparate strategy is the effective competitive tool of the enterprise. In the
current conditions of globalization and economic integration, create the influence
and mutually dependent among enterprises. The process has created fierce
competition among enterprises in the market. In addition to competitive factors such
as: price, quality, advertising, marketing, enterprises also use strategy as an
effective competitive tool.
Factors affect the strategy:
a. Analysis of macro environment:
Macro environment is the overall factors outside the enterprise, has influence
on the demands of the industry and affects directly benefits of the enterprise.

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It includes factors: growth rate of the economy, interest rate, inflation,
exchange rate, unemployment rate and policy of finance-monetary, etc.
The factors of economic environment can provide opportunities or
challenges to the operation of an enterprise.
If the economy grows at a high speed, it will impact the income increase of
the segments of the population leading to increase payment ability for the demands.
This leads to the diversification of demands and aggregate demand of the economy
tend to increase. In addition, the growth rate of the high economy, the enterprise has
ability to increase productivity and business efficiency items, has ability to scale up
and increase accumulate capital. This increases demands of the large enterprise to
make the business environment more attractive.
The factors of the law and the state management:
The factors of the law and the state management also affect the conveniences
and difficulties of the environment. The creation of a healthy business environment
or not isn’t entirely dependent on the factors of the law and the state management of
economy.
The promulgation of legal system put into life and the good operation quality
of state management agencies in economy is the condition to ensure the fair
business environment, facilitate the enterprise to have healthy competitive
opportunities and vice versa.
In addition to understand and comply with the policies and laws of the state,
the enterprise has healthy competitive opportunities and vice versa.
The factors of technique-technology:
In the current trend of economic globalization, the rapid development of all
fields of technique-technology, especially information technology affects directly
business activities of all relevant enterprises. The development of techniquetechnology makes the product life cycle tends to increasingly shorter. Thus, the
good research, understand and application of technology are the prerequisite to

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enhance the competitiveness and business efficiency of the enterprise. The new
technique-technology promotes business operation of the enterprise to develop by
increasing the speed, ensure the sustainable stability in business operation and
environmental protection. However, when researching to apply science and
technology, the enterprise needs to pay attention to the trend of its impacts on the
industries and enterprises are different so should analyze carefully its direct impacts
on the business operation of the enterprise.
The factors of culture-society: Culture-society affects slowly but also
profoundly to the business operation of every enterprise. These factors strong
impact on the demand in the market.
In addition, culture-society also affects directly the formation of cultural
enterprise environment. Thus, the enterprise needs to understand clearly about the
socio-cultural environment that they are operating.
Natural factors:
The natural factors include: natural resources, geographical conditions, ect
affecting the input resources for the production and output product consumption
issues of the enterprise.
The natural conditions affect in different level, different intensity with each
enterprise in different locations and it affects the enterprise in both trends: positive
and negative. Therefore, the research and understand of the characteristics of natural
factors will help the enterprise to be more proactive in making their production and
business plans.
b. Analysis of industry environment:
The industry environment includes factors in the industry or external factors.
These factors determine the nature and the extent of competition in the industry.
According to Michael E. Porter, the core problem when analyzing the industry
environment including:
- The extent of competition among the enterprises operating in the industry.

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- Competitiveness of the potential competitors.
- The extent of competition of alternative products.
- The pressure of customers.
- The pressure of suppliers.
The impact intensity of these five factors often changes over time and in
different extent. Each impact of one of these above factors also affects directly the
survival and development of the enterprise. Analysis, monitoring and fully grasp
these above factors help the enterprises identify the opportunities and challenges in
order to offer the appropriate strategy.
c. Evaluation of internal enterprise:
The evaluation of internal enterprise is the analysis of the current factual
situation of the enterprise resources in order to see clearly strengths, weaknesses of
the enterprise. Since then, the enterprise can use up and promote the strengths and
seek to overcome the weaknesses of the enterprise. When analyzing the factual
situation of the enterprise, we go into the analysis: financial operation, production
situation, human resource, marketing, research and development, organizational
structure, etc.
Analyzing the enterprise model based on the model 4Ps (marketing mix):
Product: Manage factors of products/ services (brand, functions, qualities,
forms, packaging, enclosed services, warranty, etc.) and making development plans
of products/ services to the market.
Price: Determine price of the products except the cost of production,
management also to other factors (the current price of competing products,
promotion prices, prices for the dealers, applied prices for other payment forms,
etc.) to determine the list price for the products.
Place: Select and manage the commercial channels to the products occupy
the target market at the right time and develop the logistics systems (logistics), and
ship products.

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Promotion: Introduce and convince the potential market to use the products
of the enterprise through various types of business promotion (advertising, personal
selling, public relations, journalism or Internet, etc.)
* The reason why 4Ps still exist in nearly half of a century because it covers
all the factors of a marketing strategy the most simply but is still relatively fullfil.
Of course 4Ps now is defined more broadly than the beginning to more suitable for
the times.
A marketing strategy built on 4Ps frame will start from product policies. This
is a reasonable thing because the most essential of an enterprise is to have a product
or service to put in the market. After having the product, the managers will begin
calculating the price policies. The price policies may affect the distribution system
of the product.
Finally, after determining the product distribution policy, the managers will
determine the types of advertisement to promote the sale of products. All the above
policies are built aiming at the target market (refer to 4Ps combination chart in
marketing strategy).
In theory, if the enterprise can perform any of a P element in 4Ps better than
competitors, the enterprise will have competitive advantages – the sign of a
successful marketing strategy – preferred by customers and becomes more
successful.
Enterprise-oriented analysis according to SWOT model:
Strengths

Weaknesses

- Control and sales orientation

- No test the list of consumer objects yet

- Right product, quality and reliability

- Have holes in several market areas.

-Produce products more superior to - The company is a small enterprise
competitors

- Having no direct marketing

- The reliability of product is better

experiences

- Experiences of employees

- Unable to provide for foreigner

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- Have list of consumers

customers

- Have ability to communicate directly

- Need more sales staffs

- Conducting the product innovation

- Funds limited

- Can to serve in places

- No implementation of pilot projects

- The products have been recognized

- Have no blueprint

- Trust in this new activity

- Delivery staffs need to be trained more
- No estimation of probable situations

Opportunities

Risks

- Can develop the new products

- The impact of the law

- Quality of competitors are poor

- The impacts from the environment can

- Profit margins will be high

create advantages for competitors

- Can expand abroad

- Create the risks to business operations

- Use the new experts

- Seasonal market demands

- Can cause surprise to the competitors

- Need to maintain the key employees

- Support the major business operations

- Can be distracted from the main

- Can find the more profitable contracts

business
- Can meet the negative reactions from
the public
- Vulnerable by big competitors

SWOT analysis model is applied in the evaluation of a business unit, a
proposal or an idea. It is a subjective evaluation of the data organized in a logical
sequence to help us understand the problem, since then we can discuss and make
decision the most reasonable and accurate.
Based on the specific context, a SWOT analysis model can provide one or a
few items in list of 6 action steps:
+ Products (What are we going to sell?)
+ Processes (How do we sell?)
+ Customers (Who do we sell to?)

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+ Distribution (How can we approach the customers?)
+ Finance (How much are price, cost, and investment?)
+ Management (How do we manage all those activities?)
In any case, SWOT basically tells us what is “good” and “bad” in the current
business or for a new proposal for the future. If the analysis object of SWOT is
business, the analysis objective is to improve the enterprise so SWOT will be
interpreted as the following:
“Strengths” (Maintenance, development and being a lever) “Opportunities”
(The positive evaluation) “Weaknesses” (The remedy to repair or to get rid of
weaknesses) “Risks” (Challenges).
1.1.2. Competitive Strategy (Business level strategy):
As the business unit level strategy focuses on improving the competitive
position of the products and services of enterprises in the business or product is a
combination of the Enterprise market participants business.
In the small and medium enterprises, business unit level strategic industry
may just be enough enterprises but for a large enterprise especially multidisciplinary
enterprise business market in many different parts and the itself consists of many
different parts can be independent of each other, the analysis of business and
strategic planning is not enough. If businesses want to correctly identify the target
as well as strategic solutions in the period, the formation of strategic business unit
level strategy is needed. Basis to build strategic business unit is the group of
customers for products (services) of different specific groups of customers,
production technology, research and development, provision of inputs as well as the
consumption of finished products, etc.
Each business unit strategy Strategy is a business division to serve groups
with their specific needs in terms of products (services) in the period of the strategy,
technology products, organizations and research activities development as well as
providing resources.

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1.1.3. Functional strategies:
The strategies identified for each specific field of activity of the enterprise. In
systems that build business strategies, functional strategies serve as the strategic
solution to implement the overall strategic objectives of the business. Therefore the
strategy function is formed on the basis of the overall strategy, business unit
strategy and the specific results of the environmental analysis and forecasting,
especially the market. Each functional strategy is both relatively independent, solve
strategic relatively complete in a specific functional areas of activity; otherwise,
parts moderate strategy function have closely together. Only on the basis of the best
combination of strategic business functions together can exploit its full potential at
the right time appeared the opportunity or need to reduce or eliminate threats
appear. Ensure the best coordination of field activities is always the most difficult
problems and hence also requires plan administrators to focus on strategic and
process from the planning stage. In each period of the strategy, to ensure the
conditions of the target system implementation strategies, business plans and
strategy for many different functions such as: Marketing Strategy; production
strategy; development strategy information systems; human resource management
strategy; financial strategy ...
1.2. Information management and information technology:
1.2.1. Theory of information management system and information
technology:
As defined at Encyclopedia “The information management system is the
system provides information to the management of the organization. It includes
human, equipments and processes to collect, analyze, evaluate and distribute the
necessary information timely, accurately for the editors of decisions in the
organization. According to Master Nguyen Anh Hao’s aggregate from the
researches in the book Management Information Systems. Kenneth C.Laudon, Jane
P.Laudon, Prentice Hall, 2002, then, “The information management system is a

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machine that transforms data (and information) collected into useful information for
the manager perform their roles (organizational management)”
Information system may include specific information and especially about a
person, different locations, events inside a organization or in an environment around
that.
Classification of information management system
The information management system can be classified according to the
application-level, the service purposes of output information. Because of the
relevance of the subject, this assignment will only classify according to the
application-level.
According to application-level, the enterprise is divided into 4 levels:
strategy, tactics, expert and operation

Figure 1.1: Types of Information systems

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Operation-level information system: support the low management levels
such as leaders, divisional director, etc. in monitoring the activities and basic
transactions of the enterprise such as sale, invoice, cash, salary, approval, loan,
material flow in the factory. The main purpose of this system is to answer common
questions and monitor the transaction capacity in the enterprise.
Expert-level information system: provide knowledge and data for the
researchers in an organization. The purpose of this system is to help enterprises
develop the new knowledge, design products, distribute information and handle the
daily work in the enterprise.
Tactics-level information system: designed to support, control, make
decisions and implement the activities of the intermediate-level managers. The
importance is the system needs to help the managers to evaluate the work status
whether in good condition or not. At this level, the information provided through
monthly, annual and quarterly reports, etc.
Strategy-level information system: helps the senior managers to process
and propose the strategic direction as well as long-term development trends. The
objective of information system is to help the enterprise has the best adaptability to
changes in the environment. The questions are similar: How many workers does
the enterprise need to recruit in the next 5 years? What will the trends of raw
material price be in long-term and what cost can the company bear? What products
should produce in the next 5 years?
The development process of Information Technology:
The development of Information Technology has made many fields converge
to each other. The capabilities of computers are increasingly strong, the utilities are
increasingly more, the size is increasingly small, the use is increasingly simpler,
computers are applied more and more widely in all fields, all times and all places.
The development process of Information Technology can be divided into 4 stages:

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The first stage (manual): the collection of information and information
processing is performed mainly by the manual methods.
The second stage (mechanization): Use computers to participate in some
stages in the process of collecting and processing information such as calculation,
analysis, statistic, collecting information.
The third stage (automation): the entire process of collecting information and
processing information is automated on the basis of using the powerful computer
systems. Thanks to automation, large amount of information is analyzed, processed
much faster. Before, in the laboratory the experiments must have person to monitor,
record and carry out many times to get many data sequences, then calculate, analyze
to find out the relationships, and since then have the scientific conclusion.
Nowadays, those works are mostly automated. The experimental data is measured,
recorded, store automatically by machines and then put in the computer to
automatically process and the result is due to the general collecting information,
relationships, viable solutions, etc. can lead to the new discoveries, new knowledge.
Similarly in scientific research, in daily life, the massive volumes of commercial
information, information of economy, culture and society, etc. also processed on a
computer to give people a lot of new knowledge, suggest new methods, new
thinking
The forth stage (intelligent information): The computer system has
accumulates a very large volume of information and knowledge, very larger
abilities to process, helps people to analyze situations, pick out the solution,
efficiently help people to enhance knowledge, develop the creativeness abilities and
the intelligence of human. For example, Deep Blue computer manufactured by IBM
firm, thanks to accumulation of information and experiences of experts in the field
of chess can win the world chess champion Casparop. If the mechanical technology
helps people improve physical labor capacity, increase enforcement, the

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Information Technology helps people enhance intellectual capacity, increase the
mental power.
1.2.2. The roles of Information management and Information:
Technology for the company management activities: In recent years, the role
of information system in the enterprise is increasingly stronger, from just being used
to support some activities in the office information system have became a strategic
role in the enterprise. Especially the achievement in Information Technology and
their application in many businesses made the enterprise increasingly interested in
the application of IT in the business and production processes. Although an
information management system doesn’t necessarily have to use IT, but IT
(hardware and software) are increasing cheap and contribute to make the capacity of
processing, storage, information distribution is increasingly high, so the modern
information management system often positively use information technology.
This writing will summarize some of the basic roles of information
management and IT in the company management activities.
Unlike the period of the 1950s, when the enterprise mainly use the
information system to reduce the costs for regular work, nowadays, the information
system can play a strategic role in the organization. The enterprise uses information
system in all management levels in the enterprise. Not only play a role as the
providers report continuously and accurately, information system have really
become a strategic tool, weapon for enterprises get the competitive advantage in the
market and maintain the existing strengths.
Information Technology helps the management process become more
effective. Through that the enterprise has the ability to cut costs, increase the quality
of products, and complete the distribution process of products and services of it.
Nowadays, many factories manufacture automobiles have used the production
technology with the support of computers to control the production process and
check the product quality. The distribution of automobiles and spare parts, as well

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as the payment of customers and the sales information or the financial situations
among the different areas also use telecommunication network. Thanks that method,
the enterprise has operated much more effectively and at the same time reduce the
cost in the possible maximum. In general, the method of using information system
in management is suitable for the enterprise has strategy to reduce costs.
To help the enterprise have the competitive advantage by building closed
relationships with the buyers, and the material supplier. Almost telecom companies
are very focused on this activity. They encourage customers through the sales and
provision of information as fast as possible.
Encourage creative activities in the enterprise: That is the process of
developing new products, new services and new production process or activity in
the enterprise. This can create the business opportunities or new market for the
enterprise.
Create conversion costs in the relationship between the enterprise with
customers or suppliers. This means that customers or suppliers are closely tied to
the technological changes inside the enterprise, and they will have to bear
significant costs in term of time, money, and inconvenience if they switch over to
use or supply products for another enterprise. The airlines invest in building their
information system perfectly to help their automatic ticket booking system and it is
a manifestation of investment in information system has brought competitive
advantages for these firms.
Investing in Information Technology also has ability to create some new
activity types of the enterprise.
- Virtual Organization: These organizations of this type don’t actually
exist in the physical form. They are formed based on the agreement among the
different partners. A group of individuals will use the bulletin board on the
computer to communicate and exchange ideas with each other. This type of activity

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usually exists in the scientific organizations. The members can organize the periodic
conferences with the agreement exchanged through e-mail system.
- Organization of agreement: There are some organizations formed through
agreements and the electronic media. In there, organizations use the information
system to create virtual warehouses for the storage of goods. Thus, an enterprise
provides fresh flowers such as delivery service of post office can deliver fresh
flowers to customer anywhere and anytime.
- The traditional organization with electronic components: This form of
organization is familiar with the enterprise. It only replaces some departments of the
enterprise by electronic communication structures.

The use of the electronic

communication equipments to support the traditional organization requires the
managers always pose the questions of whether information technology has the
ability to replace completely the components of the organization or not?
- Organizational links: This is a form of organization established between
the customers and suppliers. The big customers often send orders as in their
business schedule and require the small suppliers have to provide them as if it were
a member of a parent organization. The enterprises producing automobiles and
motorcycles often establish such relationships.
1.2.3. Strategic options for information technology applications:
Enterprises can select the suitable information technology strategies’
application for business depending on their goals. General, it divides to four levels:
Enterprises bound to apply IT in their business
Virtually, specific businesses whose need the security sectors (bank finance)
or legal provisions or specific industries need (software companies, online
purchases)
Indispensable
Application of information technology will grow businesses’ profitability
and competitiveness or international economic integration. In short term, it is

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essential factor for companies who are planning to develop business outside the
national boundaries.
Wish to do
This strategy applies to enterprises having long-term goals. If the enterprises
apply information technology to the management as well as production, business
will have potential growth and growth profitability in the future due to increasing
brand reputation.
It would be better if the enterprise apply information technology for their
business
The urgency of the application of information technology is ambiguousness
in this strategy. Despite we cannot deny the technological potentiality, but it is not
a pressing need. However the business can go ahead to welcome the application of
information technology if they powerful enough.
Thus, the development of IT needs to put in the general strategic planning to
develop of the business to fit the environment sector as well as the development
trend of the future.
General, in addition to analyse the impact of industry or business
environments, we can see that the effectiveness of strategies is important factor to
evaluate the development of business in the near future when we build the strategies
to information technology development. This is a difficult question for all business
when they have to decide which is the best strategy?

Mai Anh Hong – B01

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