Economics of Advanced Information Technology
|
|
- Alexina Elliott
- 6 years ago
- Views:
Transcription
1 Economics of Advanced Information Technology A. Perry Schwartz IN COMPANY AFTER COMPANY, advanced information technology is a hot topic; in many of these same companies, however, there is a tremendous gap between talk and action. The gap exists as a direct result of the failure of too many information systems projects to have immediate, tangible payoffs. In fact, many projects to reduce the costs that were approved by management have actually increased costs. By now, every company has experienced its share of these projects. On the other hand, projects that have reduced tangible increases in revenue or profitability are few and far between. Indeed, expectations of increased revenue or profitability are often so low that many firms fail to keep even the most basic data for determining whether such increases have occurred. Many Internet and Intranet uses are not even conceived with payoff in mind and often leave the impression of a technology in search of a business purpose. Consequently, the typical executive has been preoccupied with the cost of side of the equation, ignoring the benefit side. This means that the executive is essentially ignoring the fact that the fundamental economic purpose of introducing new technology is not really to reduce costs but to increase a firm s growth and profitability potential. Costs savings are the least important part of the equation. ENHANCING GROWTH AND PROFITS For this model, it is useful to distinguish between two types of activities by introducing two new terms; paced and pacing: Paced Activities. Provide support to the firm s operation, but do not drive revenue. Pacing Activities. Improves performance and increases revenue.
2 Exhibit 1. Relationship between revenue and activity level for a paced and a pacing activity. Some examples help to distinguish between paced and pacing activities. In a bank, prospecting for new corporate account is a pacing activity; credit file maintenance is a paced activity. More prospecting generally increases revenues. More credit file maintenance, above the level required for the current amount of business, does not contribute to an increase in revenues. For firms that depend on product innovation to attract customers, research and development is pacing and production is paced. In most firms, the sales activity is pacing while accounting is personnel, maintenance, legal, and staff functions are generally paced. By definition, an asymmetry exists between paced and pacing activities as illustrated in Exhibit 1. For a pacing activity, an increase in activity enhances revenues, whereas a decrease in activity reduces revenues. Restrictions or limits on pacing activities constrain growth. A decrease in a paced activity may also reduce revenue, but this is a result of the paced activity acting as a constraint on a pacing activity. For example, if a bank s computer cannot handle additional accounts, there is no point in making any extra effort to attract new accounts. On the other hand, an increase in the level of a paced activity does not increase revenue or constrain growth. If the sample bank s computer system capacity is increased but no new accounts are opened, the change in computer capacity has only increased costs and reduced profits.
3 Although the difference between pacing and paced activities seems obvious, a distinct tendency is observed among all but the most senior managers to overlook pacing activities and to focus on paced activities when they are asked to consider the prospects of advanced information technology projects. This is understandable, because most of these managers are more concerned with cost control, as measured by their departmental budgets, than growth, and they have a corresponding narrow view of the firm. On the other hand, higher-level executives have a more comprehensive view of the firm and can distinguish between paced and pacing activities. SELECTING TARGET PACING ACTIVITIES Investments in advanced information systems are usually made for the purpose of enhancing economic outcomes. If pacing activities are targeted, increased revenues are likely. Alternately, if paced activities are targeted, decreased coats are usually the only reasonable goal. Ordinarily, the incremental increase in revenues from leveraging pacing activities far exceed the potential cost savings from improvements in paced activities. Therefore, pacing activities represent the greater opportunity for advanced information systems, and as the first step in developing a technology strategy, these activities should be identified. Once the pacing activities have been identified, four criteria can help select the ones that are likely to be successful advanced information technology projects: Will increased emphasis on the activity actually result in more business? This confirms whether the activity is really one that is pacing. If the sales staff believe that the market is saturated, for example, new product development rather than sales may really be the critical pacing activity. Will the additional capacity for quality or quantity of work be directed toward the pacing activity? For example, if freed up time will be soaked up by the administrative work rather than by increased sales efforts, the investment in advanced information technology is not likely to pay off. Will the additional business resulting from enhancing the pacing activity actually yield more profit? This may not be true in cases in which a costly production and manufacturing infrastructure must be created to support a large increase in sales or in which prices must be lowered to induce additional purchases. Does the pacing activity contribute to a line of business that is a high priority? This firm should have a fundamental interest in enlarging the aspect of its business that will be targeted by the advanced technology.
4 The result of this analysis will be a list of one or more pacing activities that represent the firm s best advanced technology investment opportunities. In general, the more positive the answer to these questions, the greater the likelihood for significant payoff. After the key pacing activities have been identified, it is time to determine whether opportunities, problems, or bottlenecks exist that can be resolved by advanced information technology. Those activities that cannot be improved through the use of advanced information technology still may be identified as targets for improvement but are not relevant to the technology strategy of the firm. Those pacing activities amenable to enhancement by technological means should be subjected to thorough systems analysis because technology, in isolation, cannot be expected to overcome organizational, human relations, workflow, or structural problems. In addition to the usual systems analysis concerns, there are three major considerations on the analysis of a target activity. ADDING PEOPLE OR COMPUTERS Insightful executives were asked whether they can get the same increase in output just by adding more staff, rather than more technology. The question reflects a course of action every prudent executive should consider. After all, if increased activity is the goal, it can certainly be generated by additional staff. A three-part answer is offered to the question of people vs. computers: One of the major benefits of advanced information technology is the capability to perform tasks more quickly and thoroughly. An increase in staff size often degrades responsiveness because of the increased need for communication and management control within the organization. The hidden cost of organizational control can seriously drain profits. 1. Nevertheless, if an increase in activity through the addition of staff will increase revenues at a much greater rate than it increases costs, yielding increasing incremental profits, a staff increase is likely to be desirable. 2. On the other hand, if the resource committed to the pacing activity have been set to maximize profit, expanding the resource commitment along conventional lines by adding staff will only decrease profits. Because advanced information technology can change the underlying cost structure of the business, use of technology to increase effective activity without a corresponding increase in staff may provide the basis for increasing profits.
5 Exhibit 2. Profit maximization based on activity level. Exhibit 2 helps explain these last two points. In this figure, the x-axis is the level of activity and the y-axis is dollars. The revenue curve is typical for a pacing activity. The cost curve, showing fixed and variable costs, reflects the general concave upward pattern that the standard economic theory of the firm projects for costs. The profit curve is simply the difference between the revenue curve and the cost curve. The maximum profit occurs at a point A on the x-axis in Exhibit 2. If the level of activity is less than A, it may be appropriate to add staff, thereby increasing profits. This is the circumstance described in term 2 in the preceding list. If the level of activity is greater than A, however, adding staff is a poor strategy. This is the circumstance described in item 3. ACCELERATION OF THE FIRM Effective executives ask the tough questions and demand sound answers. For advocates of the new information technology projects, one of the tougher questions is: How is the new technology going to increase profits? The answer is rooted in the basic economics of the firm. In fact, the economics are much the same as those used as a basis for the introduction of the most industrial automation factories.
6 Exhibit 3. Effect of change in cost structure on profit. The basic economics are illustrated in Exhibit 3. This figure superimposes two new curves in Exhibit 2 (i.e., new cost and new profit) to illustrate one possible effect of the introduction of advanced information technology. In this case, the new technology increases fixed cost while it decreases the variable costs of performing an activity. Thus, the new curve starts above the old cost curve but has a lower slope. The break-even point occurs where the two costs curves intersect. From this point on, the advanced information technology will produce profits that are uniformly higher than those that would have been achieved without it, and the new, higher maximum profit occurs at activity level B rather than level A. In addition to long-run cost saving, advanced information technology holds the promise of increased revenues. For example, technology might be used to create new features or services. The firm may anticipate additional revenue per unit of activity to the extent that the basis of competition is altered. Exhibit 4 illustrates the combined impact of both decreased cost and increased revenues. In this case, the effect of introducing advanced information technology is reflected by two structural curves. The first is the new cost curve. This reflects the increase in fixed costs and decrease in variable costs associated with the new technology and is the same curve shown in Exhibit 3. The second curve reflects new revenue that would result from new or improved products and services. The new profit is then
7 Exhibit 4. Acceleration of the firm. the difference between the new revenue and the new cost; there is an associated new profit-maximizing activity level B, reflecting profit levels substantially higher than those achieved at the previous maximizing level A. the overall result is a change in the cost structure of performing the activity. The alteration of the cost/revenue structure illustrated in Exhibit 4 is referred to as acceleration. The acceleration effect is the most desirable outcome, occurring only when the firm takes advantage of both the costreducing and the profit-enhancing potential of a new technology. Is acceleration real? The evidence is that it exists in company after company that has converted from manual to automated procedures since the introduction of the modern business computer. It is clear that information technology has transformed the cost structure of these companies so profoundly, few if any could survive without this technology. In the modern company, however, the impacts of IT projects that accelerate the firm are difficult to use. Experience suggests that the reason for this is not the absence of acceleration but the inadequacy of systems for measuring the economic contribution of information technology projects. The typical executive is therefore likely to view advanced IT proposals or project outcomes in terms of costs rather than acceleration. Such a view can lead to rejection of IT projects that are fundamental to a company s long-term profitability.
8 CONCLUSION In the face of an explosion in advanced information technologies, many firms are approaching new information system opportunities without a guiding set of principles for leveraging the results. This is evidenced by an epidemic of Intranet implementations that are little more than very fancy or calendar systems. In many of these cases, the information system executives are either choosing to treat these initiatives as outside the normal budgetary concerns, that is as research and development projects, or are willing to accept the costs without concern for enhanced benefits. However, downplaying the costs or ignoring the potential for positive outcomes often results in misguided initiatives, and misguided initiatives usually result only in changes to paced activities. The payoff is far greater if the firm directs the application of advanced information technology toward improvement of pacing activities. This is an essential first step for any firm wishing to prosper from the use of advanced technology. Nevertheless, the choice of pacing activities as targets for advanced information technologies is only the start. Over the long term, a successful strategy for the introduction of technology must be driven by fundamental economic considerations. Obviously, no firm can long continue sacrificing profits to buy advanced information technology. Likewise, the inclination to apply advanced information technology will be strengthened as information technology initiatives clearly and demonstrably result in greater sales or profitability. Advanced information technology has the power not just to reduce cost or increase profits, but to transform the firm. The economics for advanced information technology as discussed here provides a model for understanding just what that transformation means and how that transformation occurs. An understanding of acceleration is fundamental to correctly assessing and using advanced information technology.
Available online at ScienceDirect. Procedia Engineering 138 (2016 )
Available online at www.sciencedirect.com ScienceDirect Procedia Engineering 138 (2016 ) 413 420 SYMPHOS 2015, 3rd International Symposium on Innovation and Technology in the Phosphate Industry The Computerized
More informationATB at a turning point ATB Financial Public Business Plan
ATB at a turning point ATB Financial Public Business Plan 2011-2015 Table of Contents Message from the President and CEO 2 A Unique Alberta Paradox 3 Dream 4 Goals 5 Strategy 7 Creating Value in our Lines
More informationVendor Support Agreements: A Competitive Weapon for Optimizing Organizational Assets
998-2095-07-02-15AR0 Vendor Support Agreements: A Competitive Weapon for Optimizing Organizational Assets by Brian Courchesne Executive summary For manufacturers, sustaining operations performance levels
More informationChapter 6 Relevant Information for Special Decisions Pearson Education. All rights reserved
Chapter 6 Relevant Information for Special Decisions 1 Learning Objectives 1. Describe and identify information relevant to shortterm business decisions 2. Decide whether to accept a special order 3. Describe
More informationFull file at
Chapter 1 There are no Questions in Chapter 1 1 Chapter 2 In-Chapter Questions 2A. Remember that the slope of the line is the coefficient of x. When that coefficient is positive, there is a direct relationship
More informationES. EXECUTIVE SUMMARY FOR NON-RESIDENTIAL LIGHTING PROGRAMS (NR1)
ES. EXECUTIVE SUMMARY FOR NON-RESIDENTIAL LIGHTING PROGRAMS (NR1) ES.1 INTRODUCTION This volume presents results of a comparative analysis of non-residential lighting programs included in the National
More informationSmart Selling: Small Things Can Have a Big Impact on Organizational Profitability
Smart Selling: Small Things Can Have a Big Impact on Organizational Profitability Marc Lacroix Managing Partner marc.lacroix@rtmconsulting.net (703) 400-0390 2 2009. All rights reserved. Overview Every
More informationA TWELVE-STAGE CRM PLANNING STRATEGY
3-02-71 INFORMATION MANAGEMENT: STRATEGY, SYSTEMS, AND TECHNOLOGY A TWELVE-STAGE CRM PLANNING STRATEGY Duane E. Sharp INSIDE A Twelve-Stage CRM Strategy; Applying the CRM Strategy; Maximizing Individual
More informationLesson-8. Equilibrium of Supply and Demand
Introduction to Equilibrium Lesson-8 Equilibrium of Supply and Demand In economic theory, the interaction of supply and demand is understood as equilibrium. We may think of demand as a force tending to
More informationThe need for optimization: Getting the most from Microsoft Dynamics GP
The need for optimization: Getting the most from Microsoft Dynamics GP Prepared by: Hans Wulczyn, Director, RSM US LLP hans.wulczyn@rsmus.com, +1 717 901 8413 July 2017 Microsoft Dynamics GP is a powerful,
More informationEXCEEDS EXPECTATIONS EXAMPLE
EXCEEDS EXPECTATIONS EXAMPLE Name William Worksafe Manager Linda Laboratory Title Manager- Health & Safety Grade 12 Review Period 07/01/2007 to 06/30/2008 School/Department Health & Safety Review period
More informationEcon 303. Weeks 3-4 Consumer Theory
Econ 303 Weeks 3-4 Consumer Theory CHAPTER 3 OUTLINE 3.1 Consumer Preferences 3.2 Budget Constraints 3.3 Consumer Choice 3.4 Revealed Preference 3.5 Marginal Utility and Consumer Choice Consumer Behavior
More informationManagement Information Systems. B13. Information Technology Economics
Management Information Systems Management Information Systems B13. Information Technology Economics Code: 166137-01+02 Course: Management Information Systems Period: Spring 2013 Professor: Sync Sangwon
More informationJUMP INTO EMPLOYEE ADVOCACY
JUMP INTO EMPLOYEE ADVOCACY What is Employee Advocacy? Employees are your most valued asset. Companies need to connect, align and engage their workers in order to inspire them to become advocates for the
More informationCHAPTER 2 INTRODUCTION TO COST BEHAVIOR AND COST-VOLUME RELATIONSHIPS
CHAPTER 2 INTRODUCTION TO COST BEHAVIOR AND COST-VOLUME RELATIONSHIPS LEARNING OBJECTIVES: 1. Explain how cost drivers affect cost behavior. 2. Show how changes in cost-driver activity levels affect variable
More informationFull file at
CHAPTER 2 INTRODUCTION TO COST BEHAVIOR AND COST-VOLUME RELATIONSHIPS LEARNING OBJECTIVES: 1. Explain how cost drivers affect cost behavior. 2. Show how changes in cost-driver activity levels affect variable
More informationDeveloping a Knowledge Creating Organisation
Developing a Knowledge Creating Organisation Ing. Francis Farrugia Many are aware of the importance of implementing effective knowledge management in organizations. However, the challenges are not few!
More informationInformation Systems in Organizations
Information Systems in Organizations Organizations and Information Systems Using Information Systems for Competitive Advantage Performance-Based Information System Justifying Information System Careers
More informationAssessing the tangible and intangible impact of design investment. Why is measuring the impact of design investment such a complex task?
The tangible and intangible impact of design activity on business page 1 Assessing the tangible and intangible impact of design investment When your business makes an investment in design it will be making
More informationResource Management 2.0 The Next Chapter of Just-in-Time Resourcing
Resource Management 2.0 The Next Chapter of Just-in-Time Resourcing Randy Mysliviec President and CEO Jenna Schofield Senior Consultant 2 2008-2017, Inc. All rights reserved. Just-in-Time Resourcing is
More informationEconomics 448W, Notes on the Classical Supply Side Professor Steven Fazzari
Economics 448W, Notes on the Classical Supply Side Professor Steven Fazzari These notes cover the basics of the first part of our classical model discussion. Review them in detail prior to the second class
More informationThe good news is that with some planning and the right partnership, IT leaders and their teams can achieve incredible success.
Executive Summary In today s tech-driven landscape, software change is a critical part of strategy for every enterprise. Yet change management remains a challenge for most IT leaders and their teams. Why
More informationOptimizing Sales Systems: Revenue Management and Sales & Catering Automation
Optimizing Sales Systems: Revenue Management and Sales & Catering Automation John Bradway, The Breakers Palm Beach Ernst Wolfinger, Opus Communications John Eslick, Gaylord Hotels Produced by Hospitality
More information= AFC + AVC = (FC + VC)
Chapter 13-14: Marginal Product, Costs, Revenue, and Profit Production Function The relationship between the quantity of inputs (workers) and quantity of outputs Total product (TP) is the total amount
More informationTriActive Solution Pyramid Lowering the Total Cost of Ownership
White Paper Systems Management Made Simple TriActive Solution Pyramid Lowering the Total Cost of Ownership IT organizations today must not only account for operational costs but must also strive to be
More informationBreaking Through to High Performance - Unleashing the Power of Learning BPO
Breaking Through to High Performance - Unleashing the Power of Learning BPO April 2005 - Harry H. Brakeley Organizations increasingly seek trusted collaborators to help them achieve high performance through
More informationTargeted measurable marketing
Targeted measurable marketing (888) 724-3999 sales@azamba.com www.azamba.com Plan, execute, and measure your campaigns An invaluable tool for marketers, Sage CRM enables your marketing teams to plan, execute,
More informationDifferential Analysis: Relevant Costs the Key to Decision Making
April 30, 2014 Differential Analysis: Relevant Costs the Key to Decision Making Today s Agenda Relevant Costs vs. Irrelevant Costs Differential Approach vs. Total Cost Approach Product Transfer Decision
More informationMicroeconomics, marginal costs, value, and revenue, final exam practice problems
Microeconomics, marginal costs, value, and revenue, final exam practice problems (The attached PDF file has better formatting.) *Question 1.1: Effects on Marginal Cost Which of the following is most likely
More informationMr Sydney Armstrong ECN 1100 Introduction to Microeconomics Lecture Note (6) The costs of Production Economic Costs
Mr Sydney Armstrong ECN 1100 Introduction to Microeconomics Lecture Note (6) The costs of Production Economic Costs Costs exist because resources are scarce, productive and have alternative uses. When
More informationProfessor Christina Romer SUGGESTED ANSWERS TO PROBLEM SET 2
Economics 2 Spring 2016 rofessor Christina Romer rofessor David Romer SUGGESTED ANSWERS TO ROBLEM SET 2 1.a. Recall that the price elasticity of supply is the percentage change in quantity supplied divided
More informationMaking the Business Case for Enterprise Resource Planning (ERP)
Making the Business Case for Enterprise Resource Planning (ERP) Table of Contents Executive Summary... 3 What benefits should be expected from a full ERP conversion?... 4 Some Prerequisites... 5 The Creation
More informationChapter 8. Systems Development. Ralph M. Stair George W. Reynolds
Ralph M. Stair George W. Reynolds Chapter 8 Systems Development An Overview of Systems Development Managers and employees in all functional areas work together and use business information systems Corporations
More informationDigital business models need advanced operating models
Report GENERATING DIGITAL IMPACT Digital business models need advanced operating models Research findings indicate that harnessing the full power of digital technologies requires a reimagination of operations
More informationRequired If the Bath Department is dropped, what will be the effect on the operating income of the company as a whole?
In Class #12.1 Dropping or Retaining a Segment Required If the Bath Department is dropped, what will be the effect on the operating income of the company as a whole? Contribution margin lost if the Bath
More informationA Proven Path for Improving Government Debt Collection
ISSUE PAPER Experience the commitment A Proven Path for Improving Government Debt Collection This issue paper describes a proven path to maximizing revenue collection using modern tools and techniques,
More informationStudy on the Practical Management of Human Resources Cost under the Auxiliary of Financial Accounting Xu Yuan1, a
4th International Education, Economics, Social Science, Arts, Sports and Management Engineering Conference (IEESASM 2016) Study on the Practical Management of Human Resources Cost under the Auxiliary of
More informationINTEGRATING EH&S AND SUSTAINABILITY EFFORTS TO REDUCE RISK AND MAXIMIZE BUSINESS PERFORMANCE
INTEGRATING EH&S AND SUSTAINABILITY EFFORTS TO REDUCE RISK AND MAXIMIZE BUSINESS PERFORMANCE Overview Often complementary and even potentially synergistic in achieving their mutual goals and objectives,
More informationChapter 9 employed human capital theory to explore the demand for education
appendix 9B A Hedonic Model of Earnings and Educational Level Chapter 9 employed human capital theory to explore the demand for education and the relationship between education and pay. This appendix uses
More informationIncreasing Value Add by: Sheila Julien, Senior Associate
Converting non-value adding resources into pure value. Most of us would likely agree that we want our workforce to spend most if not all of their time on value added work, which is often defined as the
More informationThe Innovation of Marketing Model
The Innovation of Marketing Model Li Tian Shanghai University of Engineering Science 333 Longteng Road, Songjiang District, Shanghai City, China. Hailong Ju Shanghai University of Engineering Science 333
More informationInfinium Software e-business
Infinium Software e-business A collaborative approach to success in the 21st century Introduction In business, information is essential. Communication is a catalyst. Knowledge is power. Whoever is able
More informationMake Marketing Matter
whitepaper: Make Marketing Matter How to Build a Rock-Solid Demand Factory in Your Organization EXPAND MEASURE ATTRACT CONVERT ACME High Performance Marketing Marketing has been undergoing a transformation.
More informationEasy-to-Build Workflows & Forms For Dummies WHITEPAPER
Easy-to-Build Workflows & Forms For Dummies WHITEPAPER LuitBiz BPM Business Process Management Software Luit Infotech Private Limited Phone: + 91 80 4206 1217 Email: sales@luitinfotech.com Website:http://www.luitinfotech.com
More informationTelecom Expense Management
White Paper The 7 Most Common Mistakes CFOs and CIOs make in Telecom Expense Management After years of turmoil and a prolonged economic recovery, the climate of cost consciousness in Corporate America
More informationContents. Chapter 1 Introduction to Logistics and Supply Chain. 1. Introduction. Learning Objectives. Dr. Vin Pheakdey
Chapter 1 Introduction to Logistics and Supply Chain Dr. Vin Pheakdey Ph.D. in Economics, France Contents 1. Introduction 2. Definitions 4. Activities of Logistics 5. Aims of Logistics 6. Importance of
More informationThe Business Value of Industrial IoT
The Business Value of Industrial IoT Columbus Tech Talk February 28 th 2018 Michael King President, Data Analytics & IoT LHP Engineering Solutions http://lhpes.com The Business Value of Industrial IoT
More informationebooklet How to improve your CV and interview technique using your Belbin Team Role Report
ebooklet How to improve your CV and interview technique using your Belbin Team Role Report First impressions count and the first impression a prospective employer will normally have of you is when they
More informationKnowledge Management
Knowledge Management A guide to help you consider your current approach to knowledge management with a view to building your organisational capabilities The value of knowledge is difficult to measure and
More informationUnderstanding Value Propositions and Effects Ladders.
Understanding Value Propositions and Effects Ladders. Background A supplier s users are different in how they expect the supplier to respond to their demands. And the supplier s users face the same challenge
More informationCAN A COOPERATIVE BE BOTH A WORKER COOPERATIVE AND A CONSUMER COOPERATIVE
CAN A COOPERATIVE BE BOTH A WORKER COOPERATIVE AND A CONSUMER COOPERATIVE The Ohio Employee Ownership Center ( OEOC ) has commissioned us to consider and describe a cooperative that is both a worker cooperative
More informationWhite Paper. Leveraging Technology for Employee Knowledge and Goodwill: Organizational Agility in the Digital Age
White Paper Leveraging Technology for Employee Knowledge and Goodwill: Organizational Agility in the Digital Age Amy M. Young Stephen M. Ross School of Business University of Michigan Mary D. Hinesly Stephen
More informationWHICH ANALYTICAL METHOD BEST MEETS THE. By Robert Stratton Senior Group Director MarketShare: A Neustar Solution
CHALLENGE? WHICH ANALYTICAL METHOD BEST MEETS THE ATTRIBUTION By Robert Stratton Senior Group Director MarketShare: A Neustar Solution ? ADDRESSING THE ATTRIBUTION QUESTION Advertisers don t always have
More informationEvaluating alternative operating models for government-wide shared services. Taking the back office out of mission-focused agencies
Evaluating alternative operating models for government-wide shared services Taking the back office out of mission-focused agencies Increasing demand to streamline back-office functions across government
More informationI. Introduction to Markets
University of Pacific-Economics 53 Lecture Notes #3 I. Introduction to Markets Recall that microeconomics is the study of the behavior of individual decision making units. We will be primarily focusing
More informationBUILDING A BUSINESS CASE FOR PAPERLESS TREASURY SOLUTIONS
BUILDING A BUSINESS CASE FOR PAPERLESS TREASURY SOLUTIONS Treasury management onboarding is a complex, time- and paper-intensive operation for banks and their customers. Not surprisingly, corporate customers
More informationMANAGERIAL MODELS OF THE FIRM
MANAGERIAL MODELS OF THE FIRM THE NEOCLASSICAL MODEL 1. Many Models of the firm based on different assumptions that could be described as economic models. 2. One particular version forms mainstream orthodox
More informationHOW MANUFACTURING FIRMS CAN USE BPM TO OPTIMIZE OPERATIONAL PERFORMANCE
>> White Paper August 2016 HOW MANUFACTURING FIRMS CAN USE BPM TO OPTIMIZE OPERATIONAL PERFORMANCE Brian Reale In today's competitive manufacturing environment, it takes more than incremental improvement
More informationThe ERP Selection Process Survival Guide
The ERP Selection Process Survival Guide Enterprise Resource Planning WHITE PAPER June 2010 EXECUTIVE SUMMARY This guide provides an overview of the steps for conducting an effective and successful enterprise
More informationSPECIAL REPORT. Top Trends In. Low-Code Development. Insights from IT leaders into the business value of low-code application development
SPECIAL REPORT Top Trends In Low-Code Development Insights from IT leaders into the business value of low-code application development About This Report 2 interviewed 153 IT leaders (with seniority of
More informationIMS IT and Economics. Issues. Information Technology Economics. Information Technology Economics. The Formal/Informal Distinction
IMS 3002 IT and Economics Issues installing strategic information systems infrastructure planning electronic commerce education of users and IT staff supporting end-user computing supporting business reengineering
More informationOptimizing Resources to Improve the Productivity of Your Diesel Repair Shop
Optimizing Resources to Improve the Productivity of Your Diesel Repair Shop A Highway & Heavy Parts White Paper highwayandheavyparts.com (844) 447-5487 Highway & Heavy Parts White Paper 1 Optimizing Resources
More informationAUTOMATION TECHNOLOGY SERIES: PART 2 INTEL LIGENT AUTO MATION DRIVING EFFICIENCY AND GROWTH IN INSURANCE
AUTOMATION TECHNOLOGY SERIES: PART 2 INTEL LIGENT AUTO MATION DRIVING EFFICIENCY AND GROWTH IN INSURANCE 1 SERIES INTRO DUCTION Advances in digital technologies, data & analytics capabilities, and agile
More informationROOT CAUSE ANALYSIS: YOUR UNTAPPED RESOURCE
ROOT CAUSE ANALYSIS: YOUR UNTAPPED RESOURCE CASE STUDY By Martin Wagstaff, Respond Product Director WHITEPAPER ABOUT Professional complaints handling is more than resolving the individual case; it has
More informationP rofit t (1 + i) t. V alue = t=0
These notes correspond to Chapter 2 of the text. 1 Optimization A key concept in economics is that of optimization. It s a tool that can be used for many applications, but for now we will use it for pro
More informationIndividual & Market Demand and Supply
Mr Sydney Armstrong ECN 1100 Introduction to Microeconomic Lecture Note (3) Individual & Market Demand and Supply The tools of demand and supply can take us a far way in understanding both specific economic
More information^^commuwrrv's^^ CENTRA NATIONAL RESOURCE CENTRES 77G,\ (; RC) R SUPPLY AND FOR. gj [RESEARCH, DEVELOPMENT AND TECHNOLOGY TRANSFER
en 5. Or 9S 2 202.2 9 IMA UQHAHV ^^commuwrrv's^^ CENTRA NATIONAL RESOURCE CENTRES 77G,\ (; RC) R SUPPLY AND FOR gj [RESEARCH, DEVELOPMENT AND TECHNOLOGY TRANSFER I IN WATER AND SANITATION O CM I J.M.G.
More informationFAQ: Performance Management and Training
Question 1: How do you know whether a performance appraisal method tests performance correctly? Answer 1: A test is valid if it shows a significant relationship between test performance and job performance.
More informationOptimizing Customer Satisfaction and Maximizing Performance
Optimizing Customer Satisfaction and Maximizing Performance Many organizations, especially those with successful customer satisfaction measurement programs, ultimately ask When is enough really enough?
More informationINDUSTRIAL ACTIVITY AT CERN
EUROPEAN ORGANIZATION FOR NUCLEAR RESEARCH ORGANISATION EUROPÉENE POUR LA RECHERCHE NUCLÉAIRE CERN - ST Division CERN-ST-2000-033 February, 2000 INDUSTRIAL ACTIVITY AT CERN G. Kowalik Abstract The decrease
More information7 Steps for Building an Effective CSR Program
7 Steps for Building an Effective CSR Program In our media saturated world......where every action and reaction is immediately publicized and open to public debate, a company s reputation and public image
More informationGame Theory and Economics Prof. Dr. Debarshi Das Department of Humanities and Social Sciences Indian Institute of Technology, Guwahati
Game Theory and Economics Prof. Dr. Debarshi Das Department of Humanities and Social Sciences Indian Institute of Technology, Guwahati Module No. # 03 Illustrations of Nash Equilibrium Lecture No. # 01
More informationCASE FAIR OSTER PRINCIPLES OF MICROECONOMICS E L E V E N T H E D I T I O N. PEARSON 2014 Pearson Education, Inc. Publishing as Prentice Hall
PRINCIPLES OF MICROECONOMICS E L E V E N T H E D I T I O N CASE FAIR OSTER PEARSON Prepared by: Fernando Quijano w/shelly Tefft 2 of 50 Demand, Supply, and Market Equilibrium 3 CHAPTER OUTLINE Firms and
More informationTHE CASE FOR CONNECTED MANUFACTURING
THE CASE FOR CONNECTED MANUFACTURING TABLE OF CONTENTS 1 Executive overview 2 A state of emerging opportunities 3 The infrastructure as-is and the infrastructure to-be 3 The transformational challenge
More informationChapter 7. Consumer Choice: Utility Theory and Insights from Neuroscience. Microeconomics: Principles, Applications, and Tools NINTH EDITION
Microeconomics: Principles, Applications, and Tools NINTH EDITION Chapter 7 Consumer Choice: Utility Theory and Insights from Neuroscience Consumer choice often involves a battle between instant and delayed
More informationAPPLICATION OF MATHEMATICAL MODELING IN MANAGEMENT ACCOUNTING
ITALIAN JOURNAL OF PURE AND APPLIED MATHEMATICS N. 38 2017 (573 580) 573 APPLICATION OF MATHEMATICAL MODELING IN MANAGEMENT ACCOUNTING Jiaxin Wang Donglin Wang Department of Basic Education Beijing Polytechnic
More informationDocument Management and the Downturn Catherine Murphy
Incorporating ASSET & RISK REVIEW Document Management and the Downturn Catherine Murphy Catherine Murphy is Head of Marketing for document management software company V1, and has over 20 years experience
More informationHow To Improve the Quality and Cost of B2B Leads by Jeff Kostermans
How To Improve the Quality and Cost of B2B Leads by Jeff Kostermans Part 1 I don t care how stretched the marketing budget is or how tough the market is we need more and better quality leads ASAP! Ask
More informationEveryone s business is your business
The Number of Businesses in the U.S. 27,000,000 The Number of Businesses That Are Not Looking To Save Money 0 It is during times like these when new ideas will present themselves and that is exactly what
More informationIntegrators Evolve. Alongside Industry
Systems Tips for Integrators Evolve to Alongside Industry The face of the security industry continues to grow and evolve into one that resembles a service industry. Systems integrators need to be vigilant
More informationTargeted measurable marketing
Targeted measurable marketing Plan, execute, and measure your campaigns An invaluable tool for marketers, Sage CRM enables your marketing teams to plan, execute, and measure the success of every marketing
More informationMARK SCHEME for the May/June 2010 question paper for the guidance of teachers 9772 ECONOMICS. 9772/02 Paper 2 (Essays), maximum raw mark 75
UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS Pre-U Certificate www.xtremepapers.com MARK SCHEME for the May/June 2010 question paper for the guidance of teachers 9772 ECONOMICS 9772/02 Paper 2 (Essays),
More informationTopic 3. Demand and Supply
Econ 103 Topic 3 page 1 Topic 3 Demand and Supply Text reference: Chapter 3 and 4. Assumptions of the competitive model. Demand: -Determinants of demand -Demand curves -Consumer surplus -Divisibility -
More informationChapter 4 Lecture Notes. I. Circular Flow Model Revisited. II. Demand in Product Markets
Chapter 4 Lecture Notes I. Circular Flow Model Revisited Recall that the circular flow model is a simplified representation of how the economy operates. There are two specific individual decision making
More informationALGORITHMIC ATTRIBUTION
HOW TO EXPLAIN THE VALUE OF ALGORITHMIC ATTRIBUTION TO THE REST OF YOUR ORGANIZATION Table of Contents Page 1 Introduction Page 2 What is Algorithmic Marketing Attribution? Page 3 What are Some Limitations
More informationFreight Management for Mid-sized Companies:
WHITE PAPER Freight Management for Mid-sized Companies: Manage Transportation Like a Fortune 500 Company Without Spending Millions Mid-sized companies frequently lack the internal systems and resources
More informationReplacing Risk with Knowledge to Deliver Better Acquisition Outcomes
36 Replacing Risk with Knowledge to Deliver Better Acquisition Outcomes William S. Kaplan The acquisition workforce isn t what it used to be. Challenges in program execution remain and likely always will,
More informationAdministrative Simplification. Administrative Simplification: Insights challenges and opportunities, the experience of France
SIGMA Support for Improvement in Governance and Management A joint initiative of the OECD and the European Union, principally financed by the EU SEMINAR On Administrative Simplification Organised by The
More informationChapter 10 Change management
Chapter 10 Change management Learning objectives Identify the different types of change that need to be managed for e-commerce; Develop an outline plan for implementing e- commerce change; Describe alternative
More informationFile: ch01, Chapter 1: Analyzing Economic Problems. Multiple Choice
File: ch01, Chapter 1: Analyzing Economic Problems Multiple Choice 1. The analytical tools underlying nearly all microeconomic studies are: a) Unconstrained optimization and comparative b) Comparative
More informationECONOMICS 103. Topic 3: Supply, Demand & Equilibrium
ECONOMICS 103 Topic 3: Supply, Demand & Equilibrium Assumptions of the competitive market model: all agents are price takers, homogeneous products. Demand & supply: determinants of demand & supply, demand
More information2017 North American Augmented Reality Technology Innovation Award
2017 North American Augmented Reality Technology Innovation Award Contents Background and Company Performance... 3 Industry Challenges... 3 Technology Attributes and Future Business Value... 3 Conclusion...
More informationTHE ESSENCE OF AGILE
THE ESSENCE OF AGILE How to Make Location- Independent Agile Work Authors K. Subramanian Head, Delivery Excellence, Tata Consultancy Services Mohammed Musthafa Soukath Ali Head, TCS Agile Initiative Network,
More informationTWO CHALLENGES, ONE SOLUTION: API Integrations in Legal Technology Litera Corp. All Rights Reserved. litera.com
TWO CHALLENGES, ONE SOLUTION: 1 It s no secret that law firms are under increasing financial pressure, fighting for market share against alternative legal service providers and tightening their budgets
More informationQuiz #3 Week 03/22/2009 to 03/28/2009
Quiz #3 Week 03/22/2009 to 03/28/2009 You have 30 minutes to answer the following 15 multiple choice questions. Record your answers in the bubble sheet. Your grade in this quiz will count for 1% of your
More informationViewpoint Adopt a service orientation
Adopt a service orientation Leverage this service-driven approach in the transportation sector Table of contents Make the change 1 transform Review technology issues 2 Understand the 2 architectural elements
More informationThe Ultimate Guide to B2B Customer Support
TeamSupport The Ultimate Guide to B2B Customer Support Hint: It's not the same as B2C! Table of Contents 1. How is B2B Customer Support Different from B2C? 2. The B2B Customer Service Evolution: From Money
More informationA Freshwater Partners White Paper
C r e a t i n g B u s i n e s s C a p a b i l i t y w i t h a P M O A Freshwater Partners White Paper Whether you view the coordinated management of multiple projects as program management, or portfolio
More information3 CHAPTER OUTLINE CASE FAIR OSTER PEARSON. Demand, Supply, and Market Equilibrium. Input Markets and Output Markets: The Circular Flow
CASE FAIR OSTER PEARSON PRINCIPLES OF MICROECONOMICS E L E V E N T H E D I T I O N Prepared by: Fernando Quijano w/shelly Tefft 2of 68 Demand, Supply, and Market Equilibrium 3 CHAPTER OUTLINE Firms and
More informationwhite paper Towards the modern mainframe How Enterprise Developer can meet the future challenges of mainframe application development
white paper Towards the modern mainframe How Enterprise Developer can meet the future challenges of mainframe application development To thrive and survive in an increasingly difficult economic climate,
More information