Competitive strength of Tesco

Tesco enjoy an IT generated the competitive advantage? & Where does it come from?

Tesco has been implementing information technologies in many fields such as royalty program and online market etc. Among these implementations, royalty program is the wisest. Tesco started to use clubcard not only in order to increase their revenue but also as a marking tool almost 30 years ago. This marketing strategy, which gets customer information without requesting customer's additional efforts and uses this information to make target marketing, is nowadays very popular. In this point, TESCO HAS ENJOYED AN IT GENERATED THE COMPETITIVE ADVANTAGE. 30 years ago, they can just use their club card as a tool to increase the sale. However, they made database with information from customers and used theses database to create different marketing strategy depending on customer segmentation. At that time, TESCO ONLY IMPLEMENTED THAT KIND OF STRATEGY. They might definiely enjoyed the competitive advantage as a pioneer.

What shoud Casadellibro choose?

Developing UNIX platform or Buying Microsoft server?

In order to choose one, I have to consider both technology and business. Of course, my purpose is to choose the best technology which can tackle the current business challenge.

At first, let's compare two server systems, UNIX and Microsoft server(NT). What are the strengths and weaknesses?

Next, what is the current business situation? They are experiending two kinds of difficulties. One is the internal problem that they found severe errors in developing UNIX platform. The other is the external problem that the macro business environment suddenly turned into recession.

Third, what is the original purpose of the new system? That is to automatically operate casadellibro.com which has huge database.

In these circumstance, what should I choose? Right now, I will change our system to Microsoft NT and simultaneousely start to develop LINUX server, which is free and open source software. In order to reduce the cost in economic crisis, I believe Microsoft NT could be the best choice. However, cosidering the expansion of customer, we need much more capable and secure server system. LINUX could be a solution which increases the capacity and security as well as reduce the cost.

My criteria in that choice

(1) Cost

(2) Potential capability

(3) Ability to customize

(4) Security

Is ERP a solution for all fuctions and sectors?

Definition
Enterprise Resouce Planning (ERP) is an integrated computer-based system used to manage internal and external resources including tangible assets, financial resources, materials, and human resources. It is a software architecture whose purpose is to facilitate the flow of information between all business fuctions inside the boundaries of the organization and manage the connections to outside stakeholders*

Is ERP beneficial to all companies?
Korea's companies have been falling in love with ERP system. The size of company doesn't matter. Big companies already went to the stable stage in using ERP system. Middle or even small size companies are trying to implement this system. Many ERP experts are saying all companies should be orchestra. I read a post about ERP written by a executive director of KT, which is the No.1 telecommunication company in Korea. He explained strengths and weakness of BIG ORCHESTRA and SMALL JAZZ BAND in order to empersize what he wants to say. His point is exactly same as mine.

Our point is that COMPANIES SHOULD DECIDE WHETHER THEY IMPLEMENT ERP SYSTEM OR WHICH THEY CHOOSE AFTER KNOWING WHO THEY ARE. Companies should move forward consolidating respective strengths. Big orchestra plays efficiently and effectively by conductor's guide. This point is similar to efficiency of companies with ERP. Jazz band can play no matter wherever they are and individuals in the band can play with freedom. This character is like of companies which don't use ERP. If efficiency is a main factor for a company to success, that company should implement ERP system. Otherwise, If a company is too small or creativity is a main factor, should that company also be operated by ERP? I strongly believe they have to know theirself before buy ERP system with huge money instead of following the trend.

And... aren't ERP companies able to develop A SMART ERP, which has both strengths of BIG ORCHESTRA and SMALL JAZZ BAND?


* http://en.wikipedia.org/wiki/Enterprise_resource_planning

Have we experienced this difficulty?

Today is August 17, 2005.

This morning, Michael who is our dell's vice president and my old friend came to my office with bad news. As soon as coming to my office, he reached my computer without any words. He made me show a public letter posted in some blog. Recipient of that letter was me. A writer of the letter is Jeff Jarvis, who is active journalist and blogger. When I recognized who is the writer before reading the letter, I thought this letter could be a powerful ally or adverse depending on the content. I know the power of word of mouths. This is why I had these too different possibilities.

Unlike my hope that this letter came from our enthusiast fan, Jeff noticed he threw our computer, complaining our product and service. As well, he gave me some advises to overcome this terrible situation. I was shocked. I even didn't know where we are before reading this letter. Our vision is to make all people who want to have a computer available to have a high-quality computer with less money. I have thougth we've been achieving our vision. But in reality, we are moving away from our vision.

Right now, I realized where we are. So, now is the time to find solutions to problems. I don't have any time to be just sad and angry. I have to change the situation as soon as possible because I know very well the power of word of mouses.

I have to tackle two problems.

The first thing is why we experience this terrible sistuation and why our customers are leaving our company? It is about our product quality. I think if our product satisfies our customers, complaints about after-service would not happen. I've always believed that investment in after-service is dead money which is not necessary if the product is perfect. So, I don't want to spend huge moeny on improving our customer service. Instead, I will improve the quality of our computer. And I will make a new effective and efficient procedure for customer service.

The second problem is We have customers who have complaints in the terminal stage. Even though the number of this letter's followers is too small compared to our customers, I should've known, in the web, there are our customers unsatisfied with our product and service. These people could be huge adversary to our company as they're using one of the most powerful tools to make and to transfer information, blog. We sell computers which is an essential tool for accessing the internet. So, our customers could reach to adverse complanints someday. I have to do something in order to stop spreading these complaints. What should I do? I have two options. To contact Jeff and to persuade him to stop his post. Or to acknowledage our faults in public and to try to fix those. Both options have risk and benefit. The first one could prevent adverse customers from increasing in short-term. However, I'll choose the other. Although we can experience more difficulties through this choice, I believe this choice can raise the speed to improve our product.

I make a decision where I should go. Now is a time to consider how I can go there.

IS Assignment] What are ISSUES TO GOOGLE

In 2003 when I studied in the graduate school, I met GOOGLE at first. I liked GOOGLE as it teaches where I can get information I want, no matter it is old paper or recent research result. What kinds of issues is GOOGLE I've liked meeting?



1. Censorship
Censorship by Google refers to Google Inc.'s removal or omission of information from its services or subsidiary companies such as YouTube, in ordert o comply with its company policies, legal demands, or various government censorship laws*. This censorship by Google have two controversal points. One is this censorship can violate the right to be informed. The other is Google can lose their market when the agreement on information cersorship doesn't reach between Google and some governments such as China.

2. The future of PPC Advertising
AdWords is Google's flagship advertising product and main source of revenue**. AdWords offers Pay-Per-Click(PPC) advertisment. In other words, Google's main revenue is generated through PPC. Nowadays, it is rising the question on advertisement effect of PPC. The main question is about the conversion ratio, visitor-buyer conversion ratio. In fact, there is nothing to prove that it is even average***. In order to increase the advertisement effect, internet advertising system will evolve from PPC to Paying CPA(cost per action) or Pay-Per-Call. Google's revenue might go down in these new system.

3. The success of Foursquare
In 2005, Google acquired Dodgeball, precursor of Foursquare. However, Dennis and Alex, Dodgeball confounder, left Google in 2009, saying Google wasn't supporting dodgeball the way we expected and Google didn't believe dodgeball was worth engineering resources. Foursquare is growing exponentially in 2010. What does Google in this process show? Google always needs a new business model in order not to become Microsoft of today. Brokeup with Dedgeball makes me have a doubt about Google's future.


*http://en.wikipedia.org/wiki/Censorship_by_Google
**http://en.wikipedia.org/wiki/AdWords
***http://www.clickearns.com/clickearns-articles/ppc-search-engine-advertising.php

IS Assignment] Microsoft

Microsoft becomes THE MARKET FOLLOWER

Microsoft was a market leader in the world when the window was introduced in the world. No one had a doubt that this company was the leader as we were able to access the computer without the fear owing to the window.
After the birth of GOOGLE and the growth of APPLE, their glory started to fade out. Due to the power of market share, they have been able to keep their position as a leader, especially in Asia. However, many people don't think Microsoft is the leader anymore, even in Asia. My two experiences show their position in Asia has been changing for the last few years.

Experience1
In 2007, I met my new boss who had lived in the US for almost 10 years. He strongly complained that my company used Micro-office as a basic tool, not Mac-office. At that time, my colleagues and I couldn't understand him. We thought the Micro-office was one of the best programs in the world and we even didn't know what is the Mac-office.
Experience2
In 2009, my company upgraded the Micro-office version from 2003 to 2007. Micro-office 2007 is totally different from the previous version. They become more graphical and functional. My colleagues and I knew the Micro-office 2007 followed the Mac-office.

Now, Microsoft is not the market leader anymore. They become a follower of Apple regardless that they acknowledge this fact. However, I don't think Macrosoft will disappear as they still have the huge power of capital and experience.

Diary] Life

Dictionary Definition
Life: The quality whcih people have when they are not dead

Diary
Today last year, he, I like and respect, threw away his life. That choice was his solution to settle problems he conflicted and to keep his dignity. It took one year after his death. Too many things seem to be changing. In the other hand, anything doesn't change at all. News in my country is saying "WAR" unlike under his administration. There are a lot of people who try to defeat him who has already gone like when he left.

I don't know what is the best and the right answer in life. What I only want is that all people have their own dignity regardless what they have. I liked him and I'm still missing him as he always tried to improve human dignity.

IS Assignment] Foursquare

The Present of Foursquare

Foursquare makes a money by gathering data from their users, recreating information from these data, and finally selling the information to customers.

Gathering Data and Recreation Information from Users
1. Who are users?
Main users of Foursquare are people who have smartphone such as iphone, android, blackberry, and palm. In short, people who have a cell-phone with a web browser. Also people who have a normal cell-phone can be users in US because they developed the technology called SMS shortcode.

2. What value do they provide to users?
Foursquare tries to be friend-finder and social city guide for users. They provide information necessary users to explore user's neighborhoods such as Friend's whereabouts, good places to meet, and restaurant reviews.

3. How can they provide this value to users?
Foursquare provides this value through a mobile phone application. Users provide their data about their whereabouts and are given information such as where their friends are and recommended places to go through this application.
Their service for users largely consists of four parts. The first is "CHECK-IN TO PLACES". If I tell them my whereabouts, they tell where my friends are, recommend good places to go and things to do nearby, and tell my friend's favorite places. This service is a back-bone of Foursqure service for users as they gather user's data and recreate information from these data through this service. The second is "SHARE YOUR EXPERIENCE WITH FRIENDS". They encourage users to create and share to do list nearby. This service also gather user's data and recreate information. The third and final service is "EARN POINTS AND UNLOCK BADGES" and "BECOME THE MAJOR". Users earn points whenever they check-in and are provided discount tickets. These benefits are other tool to attract users.
How many users use their service is vital to Foursquare as users provide the raw data changed to valuable information.


Selling the Information to Customers
1. Who are Customers?
Foursquare's customers largely consist of three parts; small, privately owned stores and restaurants; brands with retail chains, such as Tasti D-Lite; and huge multinational marketers such as Pepsi***.

2. What values do they provide to customers and How do they do it?
Foursquare provides bar or restaurant's owners new ways to advertise their shops and to connect with their customers. To brands with retail chains or huge multinational company, Foursquare provides information on people's spend patterns, which is vital in marketing. In order to do so, Foursquare analyses huge data obtained from their users and finds out valuable information.



The Future of Foursquare
1. Can users increase?
I think the probability of increase in users is high as the smartphone market is fast growing and information and benefits Foursquare provides is enough to attract new users.

2. Can customers increase?
I think big customers such as Pepsi will increase rapidly as the information Foursquare provides is essential and valuable to them. Marketing is very important in 21 century market. Marketers should know their customer behavior and consideration when they purchase something. This is the first step all marketers should do and the most important step. Foursquare can information necessary in this step.

Foursquare is rapidly growting and this growth rate will be countinued becouse of two basic reasons I mentioned above.

* User: Someone who use Foursquare's service for free
** Customer: Someone who pay money to Foursquare
*** http://www.businessinsider.com/foursquare-plots-its-business-model-2010-2#ixzz0oLuJDMLD. 2#ixzz0oLu9h4Ht

Diary] Process & Result

Dictionary definition
Process: a series of actions which are carried out in order to achieve a particular result
Result: something that happens or exists because of something else that has happened

Diary
Which one is more important between process and result? It is the difficult question. This choice is getting more difficult as I'm getting older. I'm not innocent anymore enough to believe the only right process can promise the right result. As well, I'm not reckless to consider the only result. In this grey life, the only thing I want is to enjoy the process. Are you enjoying the process you're doing now?

Diary] Sign lanuage

Wikipedia Definition
A language which, instead of acoustically conveyed sound patterns, uses visually transmitted sign patterns to convey meaning-simultaneously combining hand shapes, orientation and movement of the hands, arms or body, and facial expressions to fluidly express a speaker's thoughts

Diary
I learned sign language when I was a university student. At that time, I thought I understood people, who cannot help using sign language, and their difficulties. Now I'm not able to say I know their difficuties. I'm experiencing just less than 1% of their difficuties caused by a lack to communication tool. After even this experience, I'm learning my thought that I can understand their difficuties is arrogant.

Diary] Colleaque and Friend

Dictionary definition
Colleaque: People you work with, especially in a professional job
Friend: Someone who you know well and like, but who is not related to you

Diary
I thought I could meet new friends, not just colleaque or peer in this school. Thank him who enables me to have hope.