Why is selecting computer hardware and software for the organization an important management decision?

Management, organization and technology factors should be considered when selecting computer hardware and software in terms of when the company is large smaller firms can manage with a simple spreadsheet, most will need more specific software to manage their company.

Management

Computer hardware technology is to profound impact on business performance. Thus, it represents an important organizational asset that must be properly managed. Then, the alternative computer hardware topologies are available to processing and storing data while they are using this technology for their business. Computer system have many modern and can be categorized into six major components such as a central processing unit (CPU), primary storage, input devices, output devices, secondary storage, and communications devices (in figure 1).

CPU is the part of computer where the manipulation of symbol, letter occurs and numbers. CPU has two types of components such as an arithmetic-logic unit and a control unit. CPU is a closely tied primary memory, or primary storage, which are stores data and program instructions temporarily before or after processing. However, more than a few difference kinds of semiconductor memory chips is RAM ( random access memory) is use for short term storage of data and program instruction, then ROM (read only memory) eternally stores important program instructions. Computer processing power depends in part of speed in microprocessors, which is computer`s logic and control on a single chip. The input devices have included keyboards, computer mice, magnetic link and optical character recognition devices audio input devices and radio frequency identification devices. Maintenance of computer hardware is one of a series of cost components that mangers must consider when selecting and managing hardware technology assets. Total cost of ownership (TCO) is designates the total cost of owning technology resources including cost of hardware, maintenance, and training. Anywhere, to improve firm of management and information systems specialists, so they must pay more attention to hardware capacity planning and scalability. For this system of capacity planning, is the process of predicting when the computer hardware system become saturated. For issue of capacity planning, most of the users that using the system can accommodate at one time. Second issue is the impact of existing and the future software application. Then, is a performance measure like minimum to response time for the processing business transaction. Currently, capacity planning is ensures for the firm has enough computing power and upcoming needs. Salability is refers for the ability of a computer, product, or system to expand to provide a large number of users without breaking down.

Organization

Computer hardware technology can either improve or delay organizational performance. Computer hardware selection should consider how well the technology meshes with the organization`s culture and structure with its information processing requirements.

Technology

Information technology today is not incomplete to computers but must be viewed as an array of digital devices networked together. Thus, type of computer and arrangement of processing that should be used by business in the nature organization. Computers type as well as mainframes, PCs, midrange computers, workstation, or supercomputer. While, computers also can be networked together to distribute processing among different machines. Network computer can help organization to maintain the central control over computing, linking PCs, workstations, peer-to-peer, or other computers through the internet or sharing data by private network, and disk space. Different ways of configuring hardware components in management side.

Management, organization and technology factors should be considered when selecting computer hardware and software in terms of when the company is large smaller firms can manage with a simple spreadsheet, most will need more specific software to manage their company. They should consider their business strategy and the market’s demand for the services –how they will be approaching their goals, and how necessary it is that they invest in information systems. They should also consider which departments will be needing what kind of software, and if the cost will be reasonable. They should also consider competing companies –if customers prefer another company because of the certain software service that the company uses. For example, some people might prefer a certain product over another because of the availability of an application they can use online or even offline –like those that can be seen in the Android Market. Here are some answers and questions to prove this what business and social problems does data center power consumption cause?

Excessive power consumption uses vast amount of electricity that must be generated through hydroelectric plants or coal-fired power plants. While hydroelectric generation plants are less stressful on the environment than coal-fired, nevertheless, they do pull resources from more useful purposes. Coal-fired power plants generate huge amounts of carbon dioxide into the atmosphere which some scientists and politicians claim is a major cause of global warming. Social implications of increased power consumption point to global warming.

 Dell Purchasing & Procurement – Supply Chain Management Assignment Answers

Dell relies on a unique supply chain strategy that gathers large volumes of customer information through its direct sales model and share it with internal procurement and sales department as well as external suppliers. These close relationships allows dell to know what to supply on real time and also very quickly and precisely meet the demand, while maintaining low inventory. These relationships able forecast accurately without filling a pipeline of finished goods.

To successfully forecast, Dell maintains a constant flow of data in two information loops .One between customers and the Dell sales team, and the other among sales,procurement and suppliers. This helps dell to know how well suppliers can support these forecast and also on other end, how dell sales team can effectively promote .Dell’s communication system provides a rich mix of current and historical information about supplier performance In order to compete globally, Dell should look at efficiency and cost containment. Unlike certain companies who strictly focus on revenue increases; Dell has made use of emerging concept of outsourcing even at early stage while adding value to it through the advanced ICT. As companies seek to enhance their competitive positions in an increasingly global marketplace, they are discovering that they can cut costs and maintain quality by relying more on outside service providers for activities viewed as supplementary to their core business. Firms usually derive two main advantages by outsourcing; strategic flexibility and lower costs. Dell outsources because it enables Dell’s business model to be successful.

Dell believed that their comparative advantage is in pricing, customization and rapid order fulfillment. They also realized that they can explore more advantages through supply chain management and logistics than focusing on manufacturing of components. It may be true that Dell does little more than final assembly of components into PC under such concept but the fact remains that it facilitated Dell to focus on the most critical factors in customer satisfaction and retention. Dell very correctly focused on core areas where they are good at while allowing their suppliers to do the rest in other areas of the process.

Outsourcing, in general has become one of the most important and popular strategies in an increasingly competitive marketplace. This concept has proven results for Dell considering their global success which is a prime result of development of and re commitment to the core competencies of the company. Dell was able to do this by delegating most of work to their suppliers who independently contributed their share in completing “Dell total product” for mutual benefits. Because Outsourcing allows companies to focus only on their most successful work and enjoy the benefits of allowing their outsourcing partners to do the same in whatever their core areas.

Dells, outsourcing relationships have been focused from cost savings to multidimensional partnerships that support the core business of client corporations. This type of outsourcing relationships have delivered lucrative results for Dell to engage in more and more outsourcing activities as partnerships. Therefore Dells component providers are taking increasing responsibility in improving service standards. Dell is so big that the suppliers want to be associated with them badly thus they revisit their corporate strategy, information management,business investment, and internal quality initiatives to be on par with Dells needs.

Accordingly, in consideration of several advantages that Dell gains through purchasing most of the components from independent suppliers, it can be concluded that outsourcing allows Dell to focus on what it does best and leave their component suppliers to do the rest at their best for Dell.

ANSWER ALL THE QUESTIONS( 4 x 15=60 marks)

a. Explain what role procurement and sales plays in Dell unique Supply chain strategy?

b. Comment how effectively different drivers of supply chain and internal procurement utilized by dell?

c. Why does Dell purchase most of the components that go into its PC from independent suppliers, as opposed to making more itself? (Dell does little more than final assembly of components into PC)

d. How Dell can eliminate redundancies and maximize the value of the procurement process today?

Also Read: SBS MBA Specialization — Supply Chain Strategies Management Assessment Answers

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