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Glossary of Computer Terms (5C) ****************************
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*********************** Updated:03/08/2008 Copyright © 1996-2008 Management Systems Consulting, Inc. |
In 1999 we predicted that the then current consolidation of major industries was the ‘last gasp’ of an aging business model. It will be like the final contraction before the ‘Big Bang’ of the new business world economy. This Bang will not be cataclysmic, but from the perspective of history, we believe it will be viewed as explosive. This explosion will represent the coming of age of Global Business, represented by the growth of electronic business to business transaction exchange. Now in 2005, we see the beginning of the end of the old business model. "The age of the conglomerate is over." said Viacom CEO Sumner Redstone1 as he announced the split of Viacom from CBS. Thousands of automotive workers will loose their jobs as the industry contracts from it's bulging state. United Airlines has ceased funding its retirement plans; others are reviewing this obligation. The age of Global Business is upon us! Just
what is Global Business?
Quite simply put, it is the mechanism by which two or more business
enterprises form enhanced trading partner relationships for the purpose of
increasing revenue and reducing costs while in the business of producing a
saleable product. The enhanced trading partner relationship is represented by
the ability to exchange information electronically, without the need for hard
copy or oftentimes, human intervention. It is further represented by the
ability to communicate business intelligence directly to the supply
distribution and manufacturing kernel business to enable quick reaction and
efficient response to the changing business cycles of supply and demand. Communication
has long been the primary driving force and success factor of any business:
communication to employees, peers, management, customers, and suppliers.
Business lives or dies by how effectively its communications infrastructure
works. If a business fails to properly communicate with employees and
management, the business ceases to function effectively. If a business fails
to communicate to its customers and suppliers, it either looses sales or does
not have anything to sell. The best minds in Information
Technology believe they can already see the next great expansion in electronic
Global Business. It's called Real-Time Enterprise Computing or RTEC. It's only a buzz
now, but they expect it should be a full roar in about four years. RTEC is the
culmination of the march that began with management information systems (MIS)
and database management systems 20 years ago, and it will be made possible by
the next generations of the Internet, servers, and personal information devices. Back
to the consolidation issues. With these consolidations, businesses believed
that they could enhance communications by controlling the communicators and
devices. We believe all they have accomplished was to create a massive
conglomeration of business activities that will become so enormous that the
shear weight of the bureaucracy necessary to manage the organization will
eventually cause it to crumble. We
believe that the future of business (small, medium and global) will be a
return to smaller business enterprise structures. [To accomplish this,
companies will either ‘spin off’ enterprise operations or give more
autonomous control to various divisions of the organization.] This does not
necessarily mean cottage industry or small economic share, but small in the
sense of kernel core competency. These kernel businesses will be linked by
high-speed communications infrastructures consisting of intelligent computer
controlled mechanisms with direct linkages to other ‘linked’ trading
partner business enterprises. While small in structure, and more adaptive by
nature, these business partnerships will provide the functionality much like
the current behemoth organizations we see today; yet with the flexibility to
rapidly implement change in the ever faster paced business and world economy. What
we see with the latest television advertisements of e-Business and Internet retail organizations, coupled with the traditional electronic
data interchange (EDI)
systems that have been in existence for many years, is a shift in this
direction. The direction of Electronic
Business Flow Management (EBFM) is the embodiment of traditional business
practices coupled with leading edge technology to enhance the communications
efficiency of trading partner business enterprise relationships. These
relationships will demonstrate an ability to meet the dynamic demand of
suppliers and customers (also trading partners) exhibited in today’s fast
paced economic model. The consumer demand for new and enhanced products has
increased exponentially over the past years. The public has realized and now
expects products to pass through the marketplace and be made obsolete by new
offerings at an ever-faster pace. What
is the answer if we believe that the current business organization model is
doomed? Enhanced e-Business models will enable the move to EBFM
or Electronic Business Flow Management. Enhanced EDI
tools driven by new technologies such as XML-EDI
and the evolving Internet retail spaces will support these new business
models. These models will appear like an octopus with tentacles linking to a
kernel business competency or product matrix. Traditional products will be
produced from the kernel business that will be delivered by enhanced
distribution systems, also supported by enhanced EDI
tools. What
does this mean to you? It means that companies that do not embrace the fast
paced of electronic business models will be left in the proverbial dust! With
the ability of smaller kernel businesses that are linked through the e-Business
communications model to deal with shifting demand and supply, larger
organizations will be struggling to communicate through bureaucratic channels. If
you do not know what EDI
means to your organization, find out. If e-Business exists within your organization, learn to understand and work with this new
model; if it doesn’t, implement one. The world is changing at an
ever-increasing pace. The new Millennium will be one keynoted by
Global
. The new
kernel Global Business model will prosper while the old archaic infrastructures modeled by huge
bureaucratic organizations grind to a halt. Work to enable the move to EBFM
or Electronic Business Flow Management. This will improve efficiencies within
the organization while reducing inefficient manual and paper system interfaces
to the kernel business competencies. We
at Management Systems Consulting, Inc.
are prepared to assist your organization to meet the challenges presented by
the evolving Global e-Business model. Contact us to learn how to implement traditional EDI trading partner
relationships or to grow existing relationships towards EBFM
and the Global e-Business model. 1. Quote from Viacom CEO Sumner Redstone published in the Orlando Sentinel June 15th 2005.
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