Transformation & Value-Chain

In tranforming any organization in the digital economy, it is important to understand the components in a Value-Chain, the parties involved in the process of transformation. this helps in ensuring the tranformation will be implemented effectively because everyone in the chain plays important role in making the tranformation a success.

The emergence of the Virtual Organization

Organization finds a new way to compete with end in mind to sustain competitive advantage through IT.  The development of virtual organization connecting the end to end process in a value chain, includes customers, research centres, suppliers and distributors has help a lot in ensuring profitability and high return on investments.  The challenge of organization in ensuring effective implementation of MIS is a Challenge itself.

One of the most shared success story was Amazon.com.  Based in Seattle, USA, the company has grown from a book seller to a virtual Wall Mart of the Web selling products as diverse as music CDs, software, office products, electronics, toys, games, cookware, hardware, food, and health products. The company has also grown at a tremendous rate with revenue rising from about US$150 million in 1997 to US$5.2 billion in 2003.

What was the secret?  The answer is Jeff Bezos, the founder of the company, broke the rules of the book business by using the Internet rather than conventional distribution channels.



Organization and IT Strategy

Organization must set a clear direction prior to initiate the IT strategic planning process.  company must determine the use, value and impact of IT to identify opportunities and create value that support the organization's strategicvision. IT can add value to organization by boosting the company's revenue and cost reduction.  The accouting term PATAMI (Profit After Tax and Minority Interest) is about increasing profit by increasing revenue and reduce cost.