Enterprise Software Competition - Innovation on Private Sector at Computer World

By Raul Bernardino

Introduction:

Autoridade Nacional do Petroleo is a government of Tmor-Leste independent institution based on decree law 20/2008 whereas to administer all mineral resources within Timor-Leste territory and Joint Development area with Australia.

As an independent institution, the IT team is focusing on manual business administration processes and turns it into the digital processes.

We are able to build employee database application which has integrated with workflow, asset allocation, leave forms, document registrations, document integrity and so forth.

This application has capabilities of a cross platforms, a workflow, a social networking, single sign on, and open standard.

We use IBM notes as a platform of the application. The applications are integrated with email, calendar, contacts, website, and other databases.

We progressively turn papers works into the electronic modes. The main objectives of having digital processing are to support office in the green environment and availability of data whereas easy to access from any-where and at time without decreasing the integrity and confidentiality of the information as whole.

What are the project’s aims?
The resulting project outcomes will produce a methodology which may be utilized by any organization or institution or become a role model of system integration and cost effective. The purpose of this methodology is to analyze the existing IT systems and plan for the implementation or upgrade to a new system based on a modern integrated social framework. The qualifications of the system will be assessed using the following guidelines:

• Cost effectiveness; the resulting system should produce a significant Return On Investment (ROI) based on: The business requirements and needs, reduced workload, reduced duplication of data entry, reduced infrastructural investment for the additional data storage and processing data which includes easily manageable data.
• Ability to integrate with other systems; the existing system should be tested on whether or not it is based on open standards. Additionally, their ability to exchange data with other applications within the existing systems and with newly adopted application systems will also be assessed. Therefore, I recommend the cross platform system and open standard which will easily adapt to any additional requirements of an application within the existing systems without having to build a new green field IT system.
• Workflow capabilities; the ability for existing systems to identify the roles, routes, and business rules applicable to objects moving through the system.
• Level of Single Sign On (SSO) integration; where there are multiple systems in place, what is the level of SSO capability between those systems? i.e.: how many user names and passwords is each user required to remember?
• User interface standards have been developed and are being followed; standard user interface guidelines result in intuitive systems that require less user training and lower implementation costs.
•  Where data duplication exists across the system; a single data on the system will reduce the cost of storage, maintenance and staff.
• Social capabilities; to test whether the existing systems are based on social capability. The social capability has become an integrated part of technological development and is used to enable connections with team members virtually (meetings, conferences, etc) in order to speed up the decision making processes(e.g. easily identify the professional or person to be consulted or connected, with establish professional and private networks, and improve the communications and work life balance). The focus is sharing information and knowledge in the hopes of having information integrated into the system; the aim is to have team members able to connect, communicate, coordinate and collaborate.
• Meet regulatory requirements; the system should be tested to establish whether the existing systems are based on official or governmental regulation. Regulations such as to set a document or information as confidential, private, or public, and to establish ownership through secure internal or public networks.   

What is the proposed solution?
The proposed solution is based on open standard and cross platform application. It is a secure and integrated system. The proposed system capabilities are as follows:

-      A database application,

-      A powerful workflow,

-      User interface standards,

-      Single sign On (SSO),

-      A single directory,

-      Cross platform capability,

-      Open standard,

-      A scalable system and applications,

-      Document management (Document audit: stages, versions, security, and document histories or logs),

-      Domino Attachment and Object Service (DAOS) in order to save storage space,

-      Social framework,

-      Decrease existing licenses; e.g. Microsoft office, Windows OS and server licenses,

-      And most importantly, it must meet internal regulations which have to maintain a secure communication between internal and external parties and ne able to coordinate and collaborate with the existing knowledge.

Conclusion: Any planting system should has ROI, secure, integrity and available for those who need to use. 

"These concept was short listed in the computerwekly.com on June 6,2014"  please click the link http://www.computerweekly.com/news/2240221770/Computer-Weekly-European-User-Awards-for-Enterprise-Software-Shortlist-2014

Ethics in Information and Technology

By Raul Bernardino

Introduction:

The Internet global communication has brought countries without any boarder. In this case country law and enforcement has to be overridden with the international law. For instance, the crimes happened over the internet. “Normally physical location of the crimes will be determined the jurisdiction and sets of law to be applied,” Hall, P. A.V. & Fernandez-Ramil, J. (2007, P. 95). However, a person from Africa, sites the information on the Asia internet web sites whereas insulting or offence a person in Europe or USA, which law will be applied. Will it apply USA Law? Will it apply European Law? Will it apply African Law or Asia Law? In this complexity case, it will be analysis it sets of the laws and applied the international law.

The CIO is using utilitarian approach on the Schrage scenarios. According to the Benthem is that ‘the greatest happiness to the greatest number’. This means that any decision to be taken it has to base on the benefits to the majority numbers of the employees and for the sake of the business operations. The CIO sees that outsourcing is the best practice to help company operation and minimized the operation cost than using internal IT then it has to be outsource. The internal IT team has to learn from the outsourcing team in order to perform next term. According to Dewey “doing in a right thing is good for the business”. Further Dewey explains that to disclose the information to the boss has to be done in the right moment or in the right time and in the right place. However, the CIOs have to think ahead and look the for the long-term business operation before it comes to the conclusion or decision.

With the normative approach, the CIOs have to use the internal policies, procedures, agreements, code of conducts, and organization culture or behaviors and values as a base for judging the employees, given the rewords and recognitions to the best performing of the employees. Therefore, in the Schrage scenarios, the CIO will be taking decisions base on the normative that has been taken place in the organization. This will be very clear for the CIOs to make a decision on the outsourcing in case the internal IT team cannot perform the task in timely manner. It can be outsourced the activities such as the CRM system development. The internal IT team can be learned from outsourcing best practices for the future implementation. In term of disclosing the information to the boss, in my case, as an employee had a confidential agreement with the organization whereas I can’t disclose any institutional memories to the public. It has to be approved by organization before it goes to public. In other end as employee that embedded in to the organization has a responsibility to make right thing in the organization. Also inform unethical issues to the management to solve in the proper manner.

In the short term run, the organization or company may loss the employees because not well rewarded to their efforts. In the Schrage scenario for the CRM system development, it can be forced to lose staff because the company willing to have outsource to meet the dead-line. In the long run it can be benefit to the organization or company because the CRM system in place and each to track customers information for the future businesses. The CRM system will make organization or company business more effective. According to Gupta and other stated that “the CIO has to consider the long term runs of the company rather than just current needs.” New ideas and constructive critics coming from employees in which that are for the improvement of the organizations and companies, they have to be considered by CIO.

In my own opinion, the businesses have to be run in the good ethics rather than the businesses are focusing on the financial benefit. My argument is that with the good ethics the business can be survived and it is can be running for the long term of the period. While business that is focusing on the financial benefit may gain lot of benefit in the short term of period however it may not be in the long term. The simple reason is that because it is focusing on financial benefit and it might use unethical manner to reach their objectives. For instance: new product innovation. The company may reproduce coca cola to the market and have not paid the royalty to the originator coca cola company. At the end coco cola company may bring this company to the court and this company has to pay millions of dollar because use of coca cola brand name. Normally, this company has to get a license from the coca cola company before it reproduces. In the software application, we can’t just bought one application reproduce or copy them into thousand CDs and sell them in the market in order to gain financial benefit. It is unethical and it will cost for the long term running. It has to be started with the reseller license and doing the business.

In conclusion:

“Systematic innovation consists in the purposeful and organized search for changes and in the systematic analysis of the opportunities such changes might offer for economic and social innovation,” Drucker (2002). The normative approach is better base for CIOs to make a decision because it is cover almost all aspects or ruling the organization or company. In any ethical analysis situation the moral philosophy will be taken in first place.

References:

Hall, P. A.V. & Fernandez-Ramil, J. (2007) Managing the Software Enterprise:

Software Engineering and Information Systems in Context. London: Thomson Learning.

 Armstrong, G. and Kotler, P. (2010) Principles of marketing,13th edition, Global

edition:  Prentice Hall

Build the new System Application or purchasing the equivalent System Application

By Raul Bernardino

Introduction:

In this fourth week assignment, it has very tricky question. With the simple mathematics calculation and a little bit has an economic knowledge, it will be allowing us to make very quick decision for purchasing equivalent or similar system rather than have to build a new system. It stated that, to build the new system, it will cost us about $800,000; while in the market, there is an equivalent system that will cost us about $125,000. This means that, if we going to acquiring the system, it will be saving about $675,000.

In the software development, we cannot guarantee that lower price of purchasing the system is a good investment for the company. For instance, we only bought the license of the application in order to use them; however we did not have the source code. Therefore to do an adjustment of the requirements needs, we have to upgrade the license and doing the maintenance. This will be having additional fees on the top of the original license fee ($125,000). In other end, it is also requiring to have training to the end users and support team. It is also including the annually maintenance fees. In the long run, the cost this software application will be ending up with the millions of dollars.  For instance the maintenance cost or licensing cost $20,000 per year. In this scenario the cost will be ending up $720,000 in the next three years. In the software environment, “often we bought the service, the product, or both of them”, Hall, P. A.V. & Fernandez-Ramil, J. (2007, P. 131).

There are some advantages and disadvantages of deciding to purchase any software application system. The advantages of getting or buying the software applications from application service providers (ASPs) are: “Lower cost or cost saving, market is ready and it has a quick of the implementation (no time delay), and it has clear support line and maintenance. This software has a quality because many companies are using the same product or services.  Some disadvantages of purchasing from ASPs are: The features may not fit with the business requirement needs, totally depends on external services, and more cost for long term business”, Hall, P. A.V. & Fernandez-Ramil, J. (2007, P. 137). “It is also having the trade-off. If we are going to build the software application inside the company; the advantages are: We will be having the source code, we can easily adjust and adapt at any time as it is business required. The disadvantages are: Time consuming to develop the application, more cost in the initial investment,” Martin (2005).

It is important to have concrete planning towards to the acquisition of the any software application; whereas it is starting from business requirement needs, establishes a consensus of the needs among the stakeholders, and makes a listing of the essential features and functions of the system; it is also including the relative features and functions and the integration of the relationship. The business requirement needs can be elicited from interviewing the stakeholders, uses case modeling or simulation to the current situation, brainstorming the ideas with all parties that are involving the project either they are direct or indirect,  and makes some observation in normal working environment. The facilitation has to elicit those requirements and documented. If there are conflicts and disagreement between the stakeholders, the facilitator has to facilitate all parties in order to reach a consensus or at least to reconcile the ideas or needs.

In some software package that is not fit with the business requirements needs, then first of all, we have to think how the technical integration to the current application system especially to the operation system and hardware of the target computers. In other hand we have to think of customizing and modifying the features and functions in order to fit the business needs. Another step is re-engineering the business process of the application whereas to imitate the real world of the working environment.

There are several strategic to implement new package of software as follows:

a)     Strategic Parallel: In this strategic the production mode using the old system while in the testing mode uses the new software. Whenever, the stakeholders are confident with the new system, then they can move to new software application.

b)    Strategic Piloting: In this strategic, the organization or company are selecting several end users to test the new application and do a correction of the problem and updates the codes in necessary.

c)     Strategic of phasing: In this scenarios organization can benefit from achievement from phasing strategic.

d)    Strategic of cutover: in this scenarios ask the organization to adopt new operating system.

The software implementation phase has several sections as follows:

a)     Installation: this is a first phase of the implementation. In this phase it has several processes such as: Plan for the installation, training plan, data backup, data clean up, and conversion.

b)    Operation: In this phase the operation is important, because it will be seeing as it is operable or useable. How is it integrated with other current application? It integrated to other system and system operation.

c)     Maintenance: It is important to have a support from the vendor and it has to base on the service level agreement.

In conclusion: In any software application development, it has to base on business requirement needs and how the stakeholders are for seeing the needs, and decides the features and functions. If the software application is intending to buy from the available in the market, it has to be able to do a technical integration to the other system, customization, and in line with business process. If it is intending to build the system internally, first of all, it has to start with the requirements such as feasibility study/ elicitation, analysis and specification. Second, on the designing such as high level design and details of the design asks more concentration on the block level. The third construction: in this phase it is doing a coding, testing and integration, and the last part is the implementation such as installation, support and maintenance, including operations

References:

Hall, P. A.V. & Fernandez-Ramil, J. (2007) Managing the Software Enterprise:

Software Engineering and Information Systems in Context. London: Thomson Learning.

ISMS 27001 Audit Report Template

Audit Report

For

Lake Dale Contact Center (LDCC)

By Bernardino, Raul

Audit Objective:

LDCC intent to get ISO 27001:2013 certification

Audit Scope:

Information Security Management System (ISMS) applies to the provision of Telephony services, the management of information and business support services at our only site in Mumbai (India), in accordance with the ISMS Statement of Applicability (SoA) revision 03, dated 21/Sept/2014. The scope of this ISMS excluded all IS outsources process (as there is not controlled by LDCC)

Audit Criteria:

ISO/IEC 27001:2013

Conclusion:

The audit team found that there are several NCs during the auditing process. The audit team decided to not process the ISO 27001:2013 certification to LDCC yet until those NCs are corrected in the LDCC.

We encourage the Management Review to have a closed monitoring with the relevant risks owners in order to do a corrective and correction action and continual improve.

Recommendations:

The Audit team recommend to the Management Representative (MR) to take more serious on the Major Non-Conformities (NCs) and liaise with Risk Owner to take a 

Corrective Action and Correction Action of the findings.

The MR shall ensure all Risk Owner approvals are approved and accepted the risks.

The MR shall liaise with internal auditor to do internal audit periodically or as per internal auditing plan.

The MR should produce effectiveness report towards to the implementation the correctives of the NCs.

The external auditor will perform the follow up auditing process in next 60 days.

Description of Audit Process:

The Audit team consists of Mr. Dino, the Lead Auditor, Mr. Toha, the Auditor team member, and Ms. Qory, the Auditor team member. The audit team has held with Mr. Sanchez, as a Management Representative and the meeting happened as per agreed schedule.

The lead auditor greeted the Management Representative, Mr. Sanches and introduced auditor team members. The lead auditor explained the objective of the meeting and Mr. Sanchez was most welcoming the auditor team members. The situation was friendly or conducive for both auditors and auditee.

The lead auditor started with brief interviews the MR and followed with questions that were focusing on clause 6. For instant, how do you prevent or reduce your effects? MR replied that they had a risks assessment, risk evaluation, risk analysis, and risk evaluation toward to the external and internal issue. They had seriously tackling the issues which are compliance the ISMS standards.  Why in some risks, the RO did not sign or approved the risks? MR replied that because that staffs were on leave once the return the will signed.

The auditor team member was questioning how LDCC set the Risk criteria? MR replied to the team that they just use Low, Medium, High us their parameter’s. Ms. Qory has follow up question how if the risk owner change and the person does know the situation and adjusting with wrong judgment? MR replied they will know that.

Other auditor team member was questioning the SoA document which based on assets and not on the control. MR replied that they have a procedure for that.

The lead auditor was question about lot of loss on documents and unorganized file? MR replied that just lock the door when they out of office; the follow up question was how about Janitor has the key and access the room and looking the confidentiality files or documents? MR persistent that once they locked the door no one can access it;    

During this interviewed, auditor team members found several NCs and they are in the following section.

Non Conformity (NC):

1.     Risk Owner (RO) – [Minor-NC]:

Based on the Risk Assessment template ISO 27001 - D13 – issue 1, we found that some of “Risk Owner” did not approved, especially in the section A1 and A18.

During the audit process, the Management Representative (MR) stated that the Risk Owner did not approved because they were on leave

This is against requirement of standard of ISO 27001:2013 in clause 6.1.3 (f), which is to ‘obtain Risk Owner approval of the information security Risk Treatment Plan (RTP) and acceptance of residual information security risks’.

2.     The Statement of Applicability (SoA) document is not effective [Major-NC]

In the SoA document number SoA - D14 - issue 1, which is based on the asset and it is not based control.

This is against the requirement standard of ISO 27001:2013 clause 6.1.3 (d) which is to ‘produce a Statement of Applicability that contains the necessary controls (see also 6.1.3 (b) and (c) and justification for inclusions, whether they are implemented or not, and the justification for exclusions of the control from Annex A’.

3.     Risk Criteria was not effective [Major-NC]

The LDCC did not defined the information security criteria properly based on the document Information Security Risk Procedure - D11- issue 2, there are no brief definition about the scoring level for consequences, likelihood, and occurrence in the procedure. It can be triggered a different assumption from the risk owners.

It is against requirement of the ISO 27001:2013 in clause 6.1.2 (b) which is to ‘ensure that repeated information security risk assessment produce a consistent, valid, and comparable results’.

Observation:

The interviewers and auditee were have more relaxing time and it is created a conducive situation while the flows of questions and answers were no proper implementation was enjoyable.

Schedule for Next external audit:

July 10, 2014

Dated: May 9, 2014

Prepare by,                                                                    Approved by,

Mr. Dino, Lead Auditor                                   Mr. Sanches, MR

Product Concept Testing

By Raul Bernardino

Abstract:

Concept of the testing is the attempt predicting the success of a new product idea before putting it on the market. It usually involves getting people’s reactions to a statement describing the basic idea of the product. It is usually conducted as a pass/fail, go/no go test. As I will explain later, this is usually an effective way to kill good ideas. It is disliked by creative people everywhere, with good reason.

Introduction:

The concepts of the testing are one of the processes whereas to use a qualitative and quantitative method in order evaluating costumer’s responses about new product ideas before it is entering to the market. In other word, it is challenging in predicting the successful of the new products ideas prior putting in the market.

The important is to make a distinction between products ideas, products concepts, and products images, Armstrong, G. and Kotler, P., (2010). The products ideas are ideas intended for possible products that industries can offer to the market. The products concepts are the details version of the ideas that are meaningful to the customers. The products images are the way customer perceive a potential products.

Concept development: Formulating new ideas gradually in to the forms are more likely to be accepted in the market. For instance battery powered all electrical cars. Initially the electrical car design was costly; the battery sells for about $100,000; later all electrical cars are can be recharge 120 volt in the normal electrical outlet and the cost is penny per miles to power. The markers have to develop new product into alternatives products concepts whereas those concepts are attractive to the customers.

The important of having the concept testing is to get an acceptance of the new product ideas from costumers and it is also to minimize the research and development cost. The testing method is different from one model to the other models. There are 4 (four) types of testing models. They are as follows:

•      The Exploratory;
•      The Assessment;
•      The Validation;
•      The Comparison;

Below is the diagram of concept testing model:

The Exploratory Test: The objective of this test is examine and exploring potential customers with preliminary design concept, including giving the questionnaires to the customers. This concept analysis is the most essential part of any concept test such as new product prototypes and new product evaluation.

The Assessment Test: The objective of the assessment test is digging more details with alternative solutions for the product to be developed including test the concept or assumption is still relevant.

The Validation Test: The objective is to validate all products developments are met the product standard. This validation test contains the usability, the performance, the reliability, the maintainability, the assembly methods, and the robustness. In other word the validation test aim to test the current functionality and performance of the product, including quality and friendly environment products are met the expectation. The validation test is also doing a formal test including giving a product certification, sign off the safety document, and or other legislative documents. The validation test is much greater than assessment test.

The Comparison Test: the objective of this comparison test is to test every single designs of the new product concept in which to ensure each solution is captured such as performance and preference data. The comparison test is also to determine the advantages and disadvantages of each alternative of the product design solutions.

Reference list:

·        Armstrong, G. and Kotler, P. (2010) Principles of marketing,13th edition, Global edtition: Prentice Hall, Ch. 9

·        Concept Testing, [on-line]. Available from: http://www.betterproductdesign.net/tools/concept/testing.html   (Accessed: 30, 2014)

·        Concept Testing, [on-line]. Available from: http://en.wikipedia.org/wiki/Concept_testing (Accessed: 30 April 2014)

·        The purpose of the concept testing, [on-line]. Available from: http://www.visitask.com/Concept-Testing.asp (Accessed: 30 April 2014)

·        Silverman, G., Concept testing: How to test a concept without killing it, [on-line]. Available from: http://mnav.com/focus-group-center/concept-testing/ (Accessed: 30 April  2014)

New Product Ideas within a Time Compression

By Raul Bernardino

Abstract:

Today’s organizations or business companies will looks different in next 5 or 10 years’ time. The technological disruptions become a biggest part of today business strategy component and planning in order to be an updated organization.

Today’s organization is facing a time compression. The organizations are not similar to 20-30 years back. The organizations employees are also facing a past education; therefore, all organizations or institutions need to strategize the available resources within an updated knowledge, information, and use of the technology to deliver products and services on time with high quality standard.

Whether, we are talking about businesses, organizations, and politics, we live in a time compression or fast-paced world of instant information and 24-hour news cycles. A 30-second story on the evening news, new legislation on Capitol Hill or on new UN approaches, or a competitor or business partner could shift the playing field on any major issues or the business landscape. There are too many complicate things.  We are in the age of the acronym or new slang or completely adopt other’s words and insert them to their own languages – nearly a completely different language to abbreviate lengthy titles of projects, legislation or departments. Moreover, let’s not forget how quickly text messages travel within technology such as in Twitter, Mobiles, and Facebook across the country and a cross border to another countries. This to be a serious contender or candidate in this world, your organization must be nimble or agile, strategic and prepared for anything.

One of the single most important aspects to being proactive or reacting quickly is effective internal communications. If the right hand of your team doesn’t know what the left hand is doing, if your strategies as the leader of the organization are not clearly communicated to your employees, you could be left treading water in very stormy seas.

By utilizing proactive and real-time internal communication strategies, your organization will succeed in all aspects – internally and externally. So, I have incorporated the following concepts into my work style and found to have positive effects on internal communications and ultimately accomplishing organizational goals. 

Introduction:

Products are something that companies or industries can offer to the market in which to be consumed and had by customers and also to fulfill and satisfying customer needs and wants. For instance: car, chocolate, tooth-paste, pizza, trend cloths, electronic devices, and etc.  Products also define as “services, events, persons, place, ideas, organizations, and mix of these”, Armstrong, G. and Kotler, P., (2010). Services are intangible products that can be defined as activities and benefits to offer to the customers. For instance, the advisors in legal, marketing, finance, and etc. Those advisors or consultants are advising or serving the customers on the specific issues that they (customers) are faced in order to get a clear ideas on how to implement or face the cases and customer are satisfied with the advisory services and fixed the issues in the scope of works. 

Drucker (2002) defines that: “Systematic innovation consists in the purposeful and organised search for changes and in the systematic analysis of the opportunities such changes might offer for economic and social innovation.” There were 7 (seven) sources of the innovation proposed by Drucker. They are as follows:

1.  Unexpected occurrences in which is coming from internal site: According to Drucker, most of the business player are ignore the unexpected failure and success for the future innovation
2. Incongruities: This is an internal factor in which disconnection between expectation and result often provides opportunity of the innovation
3. Process needs: This is an internal factor in which the industry of the newspaper or magazine is today advertising their products of newspaper or magazine and allowable to distribute in very low cost and in other hand it is increasing the readership
4. Changes in the Industry and Market: This is also part of internal factors whereas deregulation of the telecommunication industries have created confusion however it is also given opportunities for the innovations
5. Change of Demographic: this is an external factor whereas the increasing and decreasing of the population may cause the product sales
6. Perception Change: This is  an external factor whereas the perception of the people healthier compare to people health before it is also trigger to have an new innovation 
7. New Knowledge: This is an external factor whereas base on the original idea or design the industries try to make some innovation to the version of the products. For instance, incremental innovation such as the evolution of the Pentium I chip to Pentium II, Pentium III, and then Pentium IV. The disruption innovation brings totally new product from the existing one. It may have longer time to have impacts. For example, computing machine in which available since 1900 however, it only use in the 60 years later in the business.

These principles are to analysis the opportunities and preparing the invention based on conceptual and perceptual.

The innovations approaches that Drucker explained above were quite comprehensive. However, Palmberg (2004) has a different approach of the innovation. Palmberg approach says that, the innovation is depending on the industry and it is operating. It is also including the market environment. Palmberg has proposed 6 (six) categories of the innovation as follows:

1.     Generic,

2.     Science-based,

3.     Competitive,

4.     Customer oriented,

5.     Regulatory,

6.     Technology oriented

These two approaches above are totally different however, the essence is that the innovations have to be based on something, either the innovations are based internal or external and based on generics, competitive, customer oriented, and etc.

These ideas that generate by companies or businesses are positive in which to select the best one among thousands of ideas whereas to fit in the market needs. For example, recently IBM did innovation on ‘Jam’ in which IBM invites customers to submitted ideas for new product and service.

According to Professor Gary Hamel, London Business School on ‘Creating the Future’ presentation to the senior executive course at Stanford University (December, 1997) stated that:  “Ninety per cent of what you need to learn, you will learn from outside your own business sector.” Therefore, we do need a coping from other organizations and adapt them into our own business environments. 

Moreover, the changes are more rapidly now comparing to last 20 years ago. Let’s view structural changes in the world economy. We can also analyze by monitoring regional contributions to world value added over time.

Please have look following world economic growth in last five to ten years:

-         Asia and China economy is growth

-         Europe and Grace economy slow down

-         Changes are more rapidly now compare to last 20 years ago

Why is that?

Technology disruption in the industries and economic development; technology helps to do risk analysis on time and delivery of the service on time; technology helps deploying recourses around the globe without have to own the resources.  Technology helps to reduce environmental impacts so on so for.

One concrete example how Mike Dell success:

-         Learn from Toyota Car distribution model

-         Use internet as distribution technology

-         Customer can decide and customize and has quick delivery to the destination

Other example is Steve John: he uses what is the next model: such as Ipad, Iphone, etc.; where he has very good sensing of the Wal-Mart.

Cohesive entity:  for example, purchase department will to put more assets while operation department will to reduce the assets. In any organization department has to have a cohesive or synchronize the strategies. However, these will need good internal communication established.

The strategy should be focus on: Product, Innovation, and Operation; in early 1990 many industries focuses on redesigns and re-engineering, (It is good to have last 20% of the products finishing has varieties)

For instance, the advertising company will use brainstorming model to have new ideas of the products while bank has to have a mathematician to delivery economic model for the banks products and services. Then these all will be creating new organization out of today organization.

For example Silicon Valley company history it is just all about innovative:

-         Capital market innovations

-         Idea Market

-         Innovative market

Other group of world economy contribution is BRICs (Brazil, Rusia, India, and China). However, the real world economic powers are:

-         Power of the World Trade Organization

-         Information Technology

These two factor are contributing to the world economy (increase integration of world economy)

Convergence: For example, Nike product industry give training branches that focusing on standard and quality has to be same.

Why Africa become a focus for economy investment? That is because it has major scale low and growth differentials are high.

Conclusion: 

The customers oriented focus are more relevant for today’s marketing innovation; because within the customer oriented approach, we can focus on the customer needs and wants in certain location (geographic), it is including the customer demographic, customer perception (psychographic), and etc. Within these approaches, we can then able to design and produce a new products lines for the specific customers.

Today’s time compression has forced all institutions or organizations around the globe to adopt and adapt new technologies in their businesses environment whereas strategize their business and deliver new innovation products and services on time and within high quality standard.

The organization need to strategize all resources including its employees for instant employee knowledge updates and motivating employees with incentives and rewords. These will motivate all employees to contribute in the innovation and produce organization products and services, whereas organization goals and objectives are reached.

References list:

• Armstrong, G. and Kotler, P. (2010) Principles of marketing,13th edition, Global edtition: Prentice Hall, Ch. 8 and Ch. 9
• (N:N), New product Innovation, [on-line]. Available from:   http://www.hypeinnovation.com/business-solutions/business-innovation/new-product-innovation/   (Accessed:  30 July 2011)
• (N:N), Product Innovation and Renovation, [on-line]. Available from:  http://www.nielsen.com/us/en/practices/product-innovation-renovation.html  (Accessed Date: 30 July 2011)
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