Global Business Concepts

Posts Tagged ‘Management’

Why management is essential Internet business?

Some of the reasons I have already alluded to some in the beginning was. However, to further clarify, here are the reasons why management is important for your business.

To be more orderly and planned business. Appropriate means of management science to adjust, meaning by applying business management steps your business can be more organized and planned. Not haphazard or without clear direction.
You need a solid business system. Is there a business that is not built with the system? All big business is built by using the system. From the small business running, business owners think of appropriate business systems for business. Until then the business is getting bigger and bigger.
Build business credibility. All businesses have great credibility and competence are not in doubt. Their names are classy and is mentioned many people because of his skills to manage the business. To manage it, clearly needed a reliable business management.
Seize new opportunities more quickly. With the right business management, you can catch a lot of new business opportunities more quickly. Because your system is already running with a pattern based testing you do, is the best.
As great-great Superman, still more powerful super-team. Yes, you can run an Internet business alone. Maybe you are smart, maybe you can a lot of things, but if you want to do business the best you have to involve other people. Because you could not run it all by himself. There is something much more important is thinking about enlarging your business strategy, you begin to learn how to manage people, how to execute the decision, and many other business fundamentals that you should do.
To start, it does not matter whether you run your own. But when your business has started to walk, do delegate to your business growing.

The scope is very broad business management. Many things must be managed so that the business smoothly. Of strategic management, marketing management, human resources management, production management, financial management, to management of information technology.

But let me not be too dizzy because of the terms that can make a frown, for you can do internet business internet business management as simple as follows.

The decisions which may affect the allocation of funds and resources to a category IT portfolio formed based on top-down approach. By using two approaches, ie top-down and bottom-up as well best practices that can be done. Regardless of the approach used, IT portfolio management is an important element of the IT plan, and usually managed by the CIO. IT portfolio management as in Figure 1 in the appendix provides a framework for analysis and decision making among employees, customers, partners, suppliers, and distributors. This needs to be supported by some key skills, and an aggregation of three sub portfolio that provides perspective the risk-vs.-value fully comprehensive:

1. IT discovery portfolio: comprised of long-term nature of investments
2. IT project portfolio: short-term investments consist of the medium-term
3. IT asset portfolio: consists of existing IT investments.

IT Discovery Portfolio
IT discovery portfolio is a framework that is used in the early part of the IT life cycle. In the discovery phase, the investment is classified as a concept or idea, where this causes the value, cost, benefits, and risks rather difficult to quantify. Discovery align IT portfolio, prioritize and balance the new technologies, which will form a strategic pemampu and strategic transformation. Discovery’s portfolio of IT can only function optimally when IT and business have good functional relationship, where there is research suggesting only occurs in 2% of existing companies.

Many companies now realize that mergers and acquisitions, geographic expansion, increased business development, or cost reduction efforts will not create a consistent and continuous. Along with the increasing scarcity of resources, the discovery and research to be more oriented toward accountability and performance. These two things are closely related to the interest to bring the business elements and elements of strategic objectives, spawn targeted and measurable results that can increase the value and growth, which is consistent with the purposes of existing strategies.

IT PORTFOLIO MANAGEMENT
There are elements of similar IT portfolio management at each company. They all have the same goal: maximizing the value (tangible and intangible) while also managing risk and cost. Most companies use a financial model that is simple and quick to make investment decisions. For a company like this, IT portfolio management framework is not yet complete; no key criteria is missing, do not run in uniform, do not apply to all organizations and to the whole life cycle of an IT investment. This framework contains information about the respective portfolio and investment portfolio was formed as she underscores the positive and negative aspects of the IT investment. Analysis of the IT portfolio will identify areas that need development, the gaps in the requirements and architecture, misalignment with strategic objectives, areas that are too served and poorly served areas, and others. There are three areas of IT portfolio management:

• The process and framework to plan, create, check and communicate the implementation of the IT portfolio. For companies that are well run, these processes have a standard and consistent, and can be seen in the entire scope of enterprise
• Devices that analyze information and data, such as value, costs, risks, benefits, requirements, architecture, and alignment of strategic objectives and business. Information and data derived from strategic objectives, strategic plans, and business and strategic objectives. Information and data are dynamic. Weighting and assessment of data and information to make priorities and investment rating. What-if analysis can be done, as this will impact on the ranking and prioritization of IT investments.
• A taxonomy of governance and general business that communicates well define the principles, policies, directives, criteria, accountability, authority for decision-making authority, and mechanisms kontrol5

There are eight stages in the preparation of the IT portfolio:

1. Develop a game plan of the IT portfolio management
2. IT portfolio planning
3. Making IT portfolio
4. Checking the IT portfolio
5. Balancing the IT portfolio
6. Communicating the IT portfolio
7. Develop and refine the organization’s portfolio of IT and governance
8. Checking the implementation of IT portfolio management process

In the first stage, the stage of the game plan, we set a goal of IT portfolio management and examine the important points to bring those areas of the easiest to identify.

In the second stage, namely planning, will use a strategy that has been noticeable in the first stage. This stage provides a foundation to plan investment strategies and portfolio structure / sub portfolio.

In the third stage, making the portfolio, we make the Inventory of significant IT investments, both existing and those still in the planning. Any potential IT investments are recorded in a standard business case.

In the fourth stage, the portfolio is measured against the targets launched. Supervision of internal and external conditions untukmengetahui stiffened things that can be triggered.

The fifth stage, balancing, we identify options den setting determines the trade-offs in the portfolio. Here the constraints, variables and other parameters of the portfolio is set back so that the allocation of the investments made can be balanced according to need.

Create a consistent approach to bring awareness to the portfolio, objectives, status, and the things that need to be changed. identifies roles, responsibilities, and governance processes in the conduct of the portfolio management process execution of the program and portfolio performance against the objectives defined in the game plan.

An IT portfolio planning will lead the company think about the implications of the company’s overall IT investment setiapa they do. Research shows if the company IT portfolio approach, so their IT spending will drop about 15% to 20%, without any significant negative impacts that accompany. And studies also show that companies implement IT portfolio with well tended is a leader in their industry.

Some Approaches to Portfolio of IT and IT Sub Portfolio
IT Portfolio is defined by using two approaches. Tactical approach in a bottom-up led to IT assets and IT projects in the queue to determine the composition of the portfolio. Strategic approach in a top-down outline of the corporate strategic objectives to the strategic and business objectives of the IT plan, which contained within it a priority, timing, and metrics required to achieve the intended goals of the company.

The decisions which may affect the allocation of funds and resources to a category- category IT portfolio formed based on top-down approach. By using two approaches, ie top-down and bottom-up as well best practices that can be done. Regardless of the approach used, IT portfolio management is an important element of the IT plan, and usually managed by the CIO.

Users throughout the enterprise requires a variety of reports and analysis. Some employees need access to menanalisa production process with cost analysis, others need menanalisa development of consumer demographics and purchasing, and yanglainnya require instant access to the list of products and return the goods. To ensure operational decisions in line with company’s strategic long-term, very important that all employees, dikeseluruhan organization, have access to a couple of reports and analysis tools required.

Plus, the company needs a center for operational reporting and real-time to see the presence status, company status on the overall supply chain – including sales and purchasing, inventory, resource plans, pengririman, and schedule information. Knowing the company’s presence in Real-time will improve the ability of the consumer services, cost control, planning, accurate, and efficient operations. Decisions about the source of production and delivery, increase or decrease order quantity or level of secure supplies, and transfer of critical inventory can be done with more dynamic and effective. Moreover, the operational reporting to provide information to employees to be able to continuously improve performance in every part according to the source and the existing planning process.

The point is how ‘many’ things can be accomplished and done in a certain time. So it is dependent by the speed and skill of the person, mainly because of the time we have all the same. Alexander Kjerulf, one of the world business consultant also said, our paradigm was mostly still stuck in the industrial era, that is like this:

• Spend more time to work, the more that can be achieved.
• Adding a person on your team, then you can finish faster.
• Productivity is actually constant and easy to be scheduled.

In the era of information and knowledge as it is today, that paradigm is not only wrong but also extremely dangerous. How do you define productivity? Steve Pavlina, one of the teachers’ personal development, defining it as follows:

• Based on this, there are 2 (two) factors to increase productivity: (i) increase the value provided and / or (ii) reduce the time required to deliver that value.

Aha! So this time, productivity does not mean how fast and much you do or produce something, but how much VALUE you provide and depend on the skills to provide VALUE by a faster time. The speed can be generated from the practice and habit, but the value?