Free Essay

It in Business

In: Computers and Technology

Submitted By AMKT
Words 2115
Pages 9
Case study 1

IT – Indistinguishable from Magic

University of Illinois

Abstract

The objective of this paper is to study how Business strategy, Green computing, Ecommerce and Web 2.0 helps organization to sustain in competitive advantage. First part of this paper consists of how differentiation strategy assists company to stand uniquely in the market. The business strategy of Lego Company has been studied to understand Focused differentiation and Broad Differentiation strategies. Green Computing stands as the second part of this paper which contains the ‘Go Green’ activities of Cognizant technology Solutions, how Cognizant successfully saved tremendous amount of energy by implementing these activities. Later, Ecommerce has been discussed. Ecommerce involves commercial transactions through internet without any obstacle of place and time. The online website of delicious Papa John’s Pizza represents a good example for B2C type of ecommerce. Last part of paper contains the advent of web 2.0. Zara is one of the leading fashion companies which gained a remarkable amount of profit by implementing web 2.0. In this way Green computing and Information system plays an important role in the competitive world.

Organizational strategy:

To maintain the market position in the competitive world, company has to choose and enable the organizational strategy with the help of information technology. One of the ways to compete successfully is to make the unique product where the company can provide the better product or services than its rivals. This strategy is known as Differentiation strategy. It can be implemented by two ways: 'Focused Differentiation Strategy' and 'Broad Differentiation Strategy'. Focused Differentiation Strategy concentrates on the single product and try to make it unique whereas Broad Differentiation Strategy focuses on the range of products. Since 1932 Lego delivered successful products in the field of Children toys. At the end of 2004 Lego started losing the market. The new CEO Knudstorp changed the business strategy which helped Lego to regain their market position. Initially Lego followed 'Focused Differentiation Strategy'. Lego was leader in children's toys with its simple and unique building block style products. Lego was famous for their traditional blocks and components that would allow children to build just about anything their imagination could create. But by 2004, company started facing adverse situation. The new CEO Knudstorp stepped in and changed the business strategy. He widened the scope of products. Lego started creating new toys and video games based on popular Hollywood movies. They also created a product strategy for adults and engaged the communities who had already set up thousands of Web sites and blogs featuring Lego creations. And they designed a line of products aimed at girls, since the majority of their products had primarily targeted boys. As the new CEO broadens the product scope, the new strategy he followed can be distinguished as 'Broad Differentiation Strategy'. After applying this strategy, Lego successfully revamped its market position. When an organization decides to follow a focused differentiation strategy, it attempts to supply better products or services than its competitors. A company might aim that differentiation broadly at many different types of consumers, or it might concentrate on a specific sector of clients.

Pixar has its distinct potential in storytelling and animation to produce proprietary animated movies which can’t be pirated. For watching these movies customers are ready to pay by their own. Using these unique qualities, Pixar targets the bunch of customers and maintains the market position.

Green Computing:

Green computing refers to the environmentally responsible use of technology. Green computing includes activities like use of shredder for waste papers, proper disposal of e-waste, the use of computer devices which will consume less energy and which in turn helps organization in saving money.

Organizations need to follow some rules to save the power and e-waste. Employees should power down the computers while leaving the office. Devices like Laser printers, scanners and projectors consumes large amount of energy, hence one should connect these peripherals as and when required. Wherever possible companies should use LCD monitors rather than CRT monitors.

Nowadays many organizations follow green computing to reduce the environmental impact of their technical activities. Governmental agencies also started to implement rules and regulations for encouraging the green computing. One of the good initiative is ‘Energy star’ program which promoted the power efficiency in technical devices.

Cognizant Technology Solutions is the leading organization which follows green computing. I was fortunate to work there and participate in ‘Go Green’ activities. ‘Go Green’ is a program that is being led by Cognizant’s largest delivery center in Chennai, India. We had a separate team of Go Green in Pune city. On weekends, we used to organize tree plantation on hilly areas. The Go Green program includes following activities:

• Establishing a Greenhouse Gas (GHG) emissions policy.

• Recognizing and implementing mitigation programs to reduce GHG.

• Educating employees on how they can reduce GHG emissions.

• Setting GHG reduction targets.

Cognizant has made remarkable progress in minimizing the carbon footprint. They have implemented the program to decrease the use of air conditioning and power consumption. Cognizant has reduced the number of personal vehicles going to the campuses by facilitating the bus services to around 80% employees. Also they have reduced 20% of the buses by optimizing travel routes to lessen the pollution and traffic blockage. Cognizant started a PC power management program to put PC desktops in hibernation mode which saves around 18.75 million kWhs of electricity per year.

Nowadays Cognizant is using video conferencing and telepresence collaborative tools to minimize the travel which helps in reducing the carbon emissions. Cognizant implemented server virtualization which assisted in reducing the number of servers consuming energy. They helped a prime PC peripheral manufacturer by reducing the use of servers through server virtualization, resulting in vast energy saving and decrease in carbon emissions.

We can minimize the power cost, conservation of energy and assist in mitigating the impact of global warming by working together.

Ecommerce:

Electronic commerce refers to the commercial transaction which involves the transfer of information across the Internet. It covers a range of businesses, from consumer based retail sites, through auction or music sites, to business exchanges trading goods and many more. Currently Ecommerce is one of the most significant features of the Internet to emerge. Using Ecommerce, customers can exchange products electronically without any hindrance of distance and time. It is one of the most powerful ways of doing business. Business to customer-B2C is one of the techniques of implementing ecommerce. B2C allows customers to go through the products available and buy them online. This process involves three steps: 1. E-information – It allows customers to see the information of products and services available. 2. E-Integration – After looking at the products details, customers can customize the products with respect to their needs. 3. E-transaction – This is the last step which allows customers to place the final order and make the payment safely. E-transaction has two classes - e-tailing which is for online sales of products and e-banking which is for financial transaction. Nowadays we order for home delivery of Papa John’s pizza, which can be categorized as e-tailing. They have their own website from where we can order pizza; we don’t even have to call them. We can make our account in their website so that every time we don’t have to type our address and other details. Also they email the customers regarding their special offers.

[pic]

We can customize the pizza by choosing our own toppings. They have provided topping options for half and full part of pizza base. It also gives 3D view of our pizza to get the total idea of it. After placing our order, we can track it. In this way, the use of ecommerce has helped Papa John’s to maintain their market position.

The biggest advantage of it is customer does not have to wait in queue for order. Also it’s easy to compare the prices online. The evolution of online business has led to low prices. This is the advantage for buyer.

But as every coin has two sides, ecommerce also have some adverse effects. There are many products that consumers want to feel, hear, taste and smell before they buy. Ecommerce takes away that comfort. Lack of security is the disadvantage of ecommerce. Also there is a risk involved for the site for getting hacked. Sometimes it’s very difficult to tackle the user resistance. User may not trust the site being unknown faceless seller. Such doubt leads customers not to switch from physical to online shops.

Web 2.0:

Web 2.0 is the phenomenon which converted passive websites to active ones. Initially the information was uploaded to the website and user could only view or download the information. As days went by users started sharing their inputs too and became real time contributors. Web 2.0 provides the platform to collaborate and interact with each other by providing more user friendly interface. Web 2.0 facilitates user created websites, bogging, tagging, social networking sites, social bookmarking, and many more.

Web 2.0 furnishes all users with the equal amount of freedom for sharing inputs. These inputs are available to the world for use and reuse. Social networking resulted into the significant shift in way of communication with people where they share their experiences, thoughts and opinions. Web 2.0 made remarkable changes in marketing by improving collaboration with consumers. It also helped in education by providing new and interesting ways to keep the students learning.

While learning about Web 2.0, I came across with the ‘McKinsey Global Survey’. According to their findings, “web 2.0 helps organization in three significant areas: Within the organization, Relationship with customers and Dealings with suppliers and partners”. Web 2.0 furnishes organizations with 24*7connectivity with their employees at lower cost. This survey concluded that “web 2.0 assisted organizations for achieving significant benefits and improved customer satisfaction”. Around half of the information technology decision makers implemented web 2.0

Web 2.0 was the turning point for business. Zara is one of the companies which have achieved the great success by implementing web 2.0 technology. Zara is a famous international fashion company. It has around 1800 stores all over the world. Zara predicted that in 21st century, they will be having ‘Creative Customers’. These consumers contribute the new ideas about product through social forums. They can also share the real time feedbacks. For instance, users can contribute videos for fashion modeling competition. Zara also has an online store which furnishes customers with free delivery and free return. Also the website provides current and up-to-date information.

In this way by communicating and collaborating organization can add major value to the business activities. Web 2.0 gives organization a distinct opportunity to become more creative and significant part of business.

References:

Lego Business Strategy, Roar Rude Trangbæk (12 February 2013),

Retrieved from https://aboutus.lego.com/en-us/news-room/2013/february/annual-result-2012/

Lego revamped its marketing strategy, Jonathan Lee (05 August 2013),

Retrieved from http://www.retailtouchpoints.com/retail-crm/2754-lego-boosts-sales-and- brand-loyalty-with-revamped-marketing-strategy

Porter’s generic strategies

Retrieved from http://en.wikipedia.org/wiki/Porter's_generic_strategies

Lego Case Study, Carlous Cordon, Ralf Seifert and Edwin Wellian (24 November 2010)

Retrieved from www.ft.com/cms/s/0/05806aa4-f819-11df-8875-00144feab49a.html#axzz2i9V3zn1r

Green Computing, Margaret Rouse (May 2010)

http://searchdatacenter.techtarget.com/definition/green-computing

Green Computing

http://en.wikipedia.org/wiki/Green_computing

Cognizant Reports: Green IT (January 2011)

http://www.cognizant.com/RecentHighlights/Green-IT-Making-the-Business-Case.pdf

What is Ecommerce?

Retrieved from http://www.networksolutions.com/education/what-is-ecommerce/

Ecommerce

http://en.wikipedia.org/wiki/E-commerce

Advantages and Disadvantages of Ecommerce, Ajeet Khurana

Retrieved from http://ecommerce.about.com/od/eCommerce-Basics/tp/Advantages-And-Disadvantages-Of-Ecommerce.htm

E-Commerce Disadvantages

Retrieved from http://www.tutorialspoint.com/e_commerce/e_commerce_disadvantages.htm

Web 2.0

http://en.wikipedia.org/wiki/Web_2.0

Web 2.0, Margaret Rouse (March 2011)

http://whatis.techtarget.com/definition/Web-20-or-Web-2

Zara Synopsis, Xue Wang, Tianhua Tan and Yiting Tao

http://www.sfu.ca/~sheppard/478/syn/Synopsis6.pdf

How companies are benefiting from Web 2.0: McKinsey Global Survey results, Jacques Bughin, Michael Chui and Andy Miller (September 2009)

http://www.mckinsey.com/insights/business_technology/how_companies_are_benefiting_from_web_20_mckinsey_global_survey_results

How is Web 2.0 impacting your business, The InSource Group

http://www.insourcegroup.com/duplicate-of-taking-stock-of-your-it-resource-model

Web 2.0 in business, Pete Swabey (08 October 2008)

http://www.information-age.com/technology/information-management/650221/web-20-in-business

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