Tesco - a retail and general merchandising store chain from the UK succeeded to become the third largest retailer based on revenue after Wal-Mart and Carrefour. The company has a long history behind it, which did not compromise its constant development and reorganization. Some of the elements that helped Tesco to differentiate itself from the competitors include:
- Moving stores to the outskirts of the cities, allowing larger spaces and cheaper prices.
- Self-service model. Savings on human resources. Plus customers usually tend to buy more products when self-served.
- Introduction of the club card, increasing customer loyalty.
- Different types of stores in the store portfolio that may target different types of customers. For example, families may predominantly prefer to shop on the weekend, buying a lot of products at once, at cheaper prices. Whereas occasional buyers may go to Tesco Metro or One Stop, which are closer located but do not have the same variety of products.
Wednesday, June 23, 2010
Monday, June 14, 2010
Should companies adapt to ERP or the other way around?
There are factors which suggest that we probably should not pose a question either...or.
First, the organizational adaptation to the package is important. The companies should assess their fit to ERP system and create a plan for the change management. The organizational fit to ERP rests on three main pillars: data, process and user fit. System implementation is successful when these variables are controlled by the change management. The combination of different data samples, processes and users is enormous; it is just impossible to create a perfect match for every combination.
Second, ERP packages should fit at least most common scenarios plus be easily adaptable to the rest. That's where the world is going - creating products that are flexible and adjustable in meeting clients' needs. The success factor of a product relates to its ability to interact with the users and evolve over time.
For example, ERP was adapted for the automotive industry to match sector-specific behaviors: customer orders, dispatch notes, pricing, invoicing, capacity estimates, etc. How many industries are out there that may benefit from a pre-adjusted platform? Probably too many and this practice is worth to pursue.
First, the organizational adaptation to the package is important. The companies should assess their fit to ERP system and create a plan for the change management. The organizational fit to ERP rests on three main pillars: data, process and user fit. System implementation is successful when these variables are controlled by the change management. The combination of different data samples, processes and users is enormous; it is just impossible to create a perfect match for every combination.
Second, ERP packages should fit at least most common scenarios plus be easily adaptable to the rest. That's where the world is going - creating products that are flexible and adjustable in meeting clients' needs. The success factor of a product relates to its ability to interact with the users and evolve over time.
For example, ERP was adapted for the automotive industry to match sector-specific behaviors: customer orders, dispatch notes, pricing, invoicing, capacity estimates, etc. How many industries are out there that may benefit from a pre-adjusted platform? Probably too many and this practice is worth to pursue.
Monday, June 7, 2010
Facebook's nearest future
Before jumping into the future of Facebook (FB), let's analyze the history and the current positioning.
Recently, FB was valuated at $14 billion dollars, an impressive amount for a social platform. Its common stock increased from $25 per share to $32 on the second market, an independent marketplace for illiquid assets, in a matter of months or even days. The historical valuation on the left, courtesy Fast Company, gives an appreciation of FB growth rates.
While some information sources suggest that FB may become an Initial Public Offering (IPO), the company is highly attractive for the private investors. The biggest ones are Microsoft Corp and Digital Sky Technologies, investing $240 million and $200 million respectively into FB. In this light, Reuters points out that FB most likely holds a strategy of selling the shares in private placements instead of going public.
From my perspective, the business model of FB includes, but most likely not limited to:
- Self-service ads
- Brand ads
- Virtual products
In a two-year time, I expect the number of users to stabilize, indicating market's saturation. We all sign up for FB, admire it at some point, become really active users, get bored with it, eventually check from time to time. However, it still stays as a great communication tool. Maybe virtual products are not that relevant and innovative, but the ads are definitely flourishing (competing with Google, btw).
FB itself aims at transferring the internet into more user-friendly environment by informing the sites on user preferences taken from the users' FB profiles. Not very private, but probably efficient:) In lines with our last IS class and the future.
Sunday, May 30, 2010
This place is not camera-friendly at the moment... please, stay away
One of the innovations that differentiated Google Maps location search platform from the conventional online maps is the Street View technology, which features panoramic views of the search targets. The map goes beyond displaying a dot, it shows the user the actual appearance of the place and often the target of search itself.
The Street View tool was developed exclusively by Google. Specially adapted cars with mounted cameras, tricycles, snowmobiles were making pictures of places. Additional technologies, like face blurring, helped to decrease the resolution and incorporate the pictures into Google Maps. A lot of work, but it was worth it. The product is helpful not only to individuals, but also to businesses. For example, real estate brokers now have the images of the properties at a mouse click.
Despite the utility of Street View technology, there are several issues with the product which may block its penetration to some areas:
1) Privacy. Probably the biggest and the most disturbing issue for Google. It may seem funny, but some of the images were found "to show men leaving strip clubs, protesters at an abortion clinic, sunbathers in bikinis, cottagers at public parks, people picking up prostitutes and people engaging in activities visible from public property in which they do not wish to be seen publicly".
2) Appearance. People complain that some places are just not photogenic at the time of filming :) Early spring is not the best time to make photos of Saskatoon in Canada. The unfavorable image of the city may have a wrong impression on people who have never been there. "For Google to record its images of the city at this most visually unappealing time of year is like photographing a beautiful woman who has just awakened from a six-month coma", MacPherson, Les (28 March 2009), Saskatoon Star-Phoenix. Many pictures had to be re-taken by Google just for that reason.
3) Security. Apparently some pictures were taken to display security-sensitive areas, like military bases and police stations. Those had to be removed immediately upon request.
To address the above, Google is already using certain techniques, like face-blurring technology and lower camera height. However, some countries, like Denmark, are not yet ready to display their lives online with no apparent consent. Unreasonable to me, how would Google image differ from a random photo taken by a photographer??? Would a photographer have to pay Mr. Peck 7,000 quid???
"On an evening in August 1995, a 42-year-old called Geoffrey Peck attempted suicide by cutting his wrists with a kitchen knife while on Brentwood High Street in Essex, England. CCTV cameras caught the action, the council's CCTV operator alerted the police and the police intervened. Peck lived. But still images from the CCTV footage were sold by the local council to the media. Peck took his complaint as far as the European Court of Human Rights and won. Peck won damages of £7,000."
The Street View tool was developed exclusively by Google. Specially adapted cars with mounted cameras, tricycles, snowmobiles were making pictures of places. Additional technologies, like face blurring, helped to decrease the resolution and incorporate the pictures into Google Maps. A lot of work, but it was worth it. The product is helpful not only to individuals, but also to businesses. For example, real estate brokers now have the images of the properties at a mouse click.
Despite the utility of Street View technology, there are several issues with the product which may block its penetration to some areas:
1) Privacy. Probably the biggest and the most disturbing issue for Google. It may seem funny, but some of the images were found "to show men leaving strip clubs, protesters at an abortion clinic, sunbathers in bikinis, cottagers at public parks, people picking up prostitutes and people engaging in activities visible from public property in which they do not wish to be seen publicly".
2) Appearance. People complain that some places are just not photogenic at the time of filming :) Early spring is not the best time to make photos of Saskatoon in Canada. The unfavorable image of the city may have a wrong impression on people who have never been there. "For Google to record its images of the city at this most visually unappealing time of year is like photographing a beautiful woman who has just awakened from a six-month coma", MacPherson, Les (28 March 2009), Saskatoon Star-Phoenix. Many pictures had to be re-taken by Google just for that reason.
3) Security. Apparently some pictures were taken to display security-sensitive areas, like military bases and police stations. Those had to be removed immediately upon request.
To address the above, Google is already using certain techniques, like face-blurring technology and lower camera height. However, some countries, like Denmark, are not yet ready to display their lives online with no apparent consent. Unreasonable to me, how would Google image differ from a random photo taken by a photographer??? Would a photographer have to pay Mr. Peck 7,000 quid???
"On an evening in August 1995, a 42-year-old called Geoffrey Peck attempted suicide by cutting his wrists with a kitchen knife while on Brentwood High Street in Essex, England. CCTV cameras caught the action, the council's CCTV operator alerted the police and the police intervened. Peck lived. But still images from the CCTV footage were sold by the local council to the media. Peck took his complaint as far as the European Court of Human Rights and won. Peck won damages of £7,000."
Monday, May 24, 2010
My perception on Microsoft standing nowadays
First of all, it is quite difficult for me to impartially judge the current standing of Microsoft because I am biased. And not in Microsoft's favor. The experience of using Win Vista rendered me from a satisfied loyal customer into Not a Big Fan.
Nevertheless, Microsoft is a software veteran. It is obvious that such small failures like Vista cannot undermine the space it occupies on the market. Microsoft holds over thirty different products, with some of them being extremely popular and used worldwide both by the individuals and businesses. The company tried itself in different spheres like hardware, search engine, internet portal, but it mostly associates with the operating system in consumer minds.
I did not count, but probably 99% of users had a PC until very very recently. Now it's a little bit less. The amazing breakthroughs by Apple do play a role, despite the fact that in general people are very resistant to change. Especially if it is a cardinal change. I believe that switching to a different operating system fits the profile. Of course, businesses do not switch to Apple overnight, unless it is an architecture firm, but the tendency is evident. Apple becomes more appealing to the individuals because of its high quality products coupled with innovative design.
The history of successful regular launches is definitely on the Microsoft's side. As we were taught on a Financial Accounting class, perpetuity cannot be correctly predicted. Yet, I do believe nothing would substantially change for Microsoft in 5-8 years from now, would it preserve its rate of product launches.
Nevertheless, Microsoft is a software veteran. It is obvious that such small failures like Vista cannot undermine the space it occupies on the market. Microsoft holds over thirty different products, with some of them being extremely popular and used worldwide both by the individuals and businesses. The company tried itself in different spheres like hardware, search engine, internet portal, but it mostly associates with the operating system in consumer minds.
I did not count, but probably 99% of users had a PC until very very recently. Now it's a little bit less. The amazing breakthroughs by Apple do play a role, despite the fact that in general people are very resistant to change. Especially if it is a cardinal change. I believe that switching to a different operating system fits the profile. Of course, businesses do not switch to Apple overnight, unless it is an architecture firm, but the tendency is evident. Apple becomes more appealing to the individuals because of its high quality products coupled with innovative design.
The history of successful regular launches is definitely on the Microsoft's side. As we were taught on a Financial Accounting class, perpetuity cannot be correctly predicted. Yet, I do believe nothing would substantially change for Microsoft in 5-8 years from now, would it preserve its rate of product launches.
Please Rob Me dot com
Just came across an interesting site that may be relevant to our last class.
The authors of Please Rob Me dot com try to raise awareness on potential drawbacks of over-sharing personal information. Indeed, when people inform the whole world that they are in a restaurant/cinema/club/went on vacation/etc. via Foursquare, most likely they are at those places and not at home. Guess who can take advantage of this!?
I do believe that high profile thieves would be okay without the location hints. They do their homework well and, most likely, know the schedule of the victim better than the victim himself. However, for a young thief, someone who is just at the begging of his career, Foursquare can be a priceless source of information.
One way to avoid unexpected guests when you are not at home, just put something like this... Went on vacation to Mallorca BUT left my angry super dangerous pitbull at home.
The authors of Please Rob Me dot com try to raise awareness on potential drawbacks of over-sharing personal information. Indeed, when people inform the whole world that they are in a restaurant/cinema/club/went on vacation/etc. via Foursquare, most likely they are at those places and not at home. Guess who can take advantage of this!?
I do believe that high profile thieves would be okay without the location hints. They do their homework well and, most likely, know the schedule of the victim better than the victim himself. However, for a young thief, someone who is just at the begging of his career, Foursquare can be a priceless source of information.
One way to avoid unexpected guests when you are not at home, just put something like this... Went on vacation to Mallorca BUT left my angry super dangerous pitbull at home.
Tuesday, May 11, 2010
Competition is not sleeping
There is a real and direct threat to FourSquare coming from social networking website giant - Facebook.
Facebook is launching location-based status feature and already signed-up a partnership with McDonalds. Refer to the AdAge for more information here.
Is the Facebook monster going to swallow our little poor Foursquare? Personally, I am not sure. From one side, Facebook is much more popular at this time. It already has a huge clientele. No need to convince people to sign in. Yet, FourSquare does have an element of uniqueness with its game around checking-ins. However, it is quite obvious that Facebook's motion will at some point touch FourSquare, reducing its rates of growth.
Facebook is launching location-based status feature and already signed-up a partnership with McDonalds. Refer to the AdAge for more information here.
Is the Facebook monster going to swallow our little poor Foursquare? Personally, I am not sure. From one side, Facebook is much more popular at this time. It already has a huge clientele. No need to convince people to sign in. Yet, FourSquare does have an element of uniqueness with its game around checking-ins. However, it is quite obvious that Facebook's motion will at some point touch FourSquare, reducing its rates of growth.
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