Companies that are highly dependent on information and systems should renovate constantly. There is more and more information to be processed because companies and their environments get more complex. Products are enhanced with more features because of constant innovation. Also the internet society adds an interesting element in this complexity which is the chaining of activities. We depend more than ever on others and the exchange of information is key to keep up with this contest.
Systems take care of this stream of information, but only if they are designed well. Over the years this has resulted in various types of solutions. Companies, especially the larger ones have applied there own resources in building a system. Then other companies took over this specialization and they designed and developed specific packages that were sold to other companies. Outsourcing followed on the trend that companies should focus on their core business. Off-shoring is somewhere in between all these developments. Off-shoring is a process where a demanding company designs it own system, but will use the human resources of others – low cost countries – when building them.
The advantage of such an initiative is that the system is still build tailored to the specific needs of the company, but at a lower cost. The advantage above buying a standard system is that the competitive advantage can be increased. If all companies use the same kind of system, how can they differentiate from each other?
Disadvantages are that the interactions with a third party are very hard to manage. First of all there is a significant learning curve. Normal communication within a company is challenging, communication with an unknown party, with another cultural background is a challenge of an other dimension. This communication problem can be solved by investing in documentation (specification of the requirements) but this is just one of these things that are boring and tiring and… expensive. So the effect of using low cost resources is relative. So you should never do this for a one-time occasion only. Therefore the learning costs are too high.
If you want to go this direction, it should be a strategic choice and not something you want to try for only once. You are best served with a strategic partnership.
© 2006 Hans Bool
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Suning issued three joint initiatives to stimulate the end of the year on six markets – Suning Appli – Business
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br 12 23 as businessmen br Suning br Electric co transport investment construction people 39 s livelihood Industrial China Everbright China eight in Shanghai Pudong Development Bank etc as well as Siemens Haier br SHARP br br Samsung br Panasonic LG Skyworth Hisense Hitachi Fujitsu beauty boss and other 12 famous br Home Appliances br Corporate brand representatives at the headquarters of Suning in Shanghai jointly issued management measures in the six form a strong end of the year an unprecedented marketing alliance took out 500 million of resources to help the powerful resources together to promote consumption stimulating domestic demand br Suning br industry leaders gather to issue stronger consumer voice br br By the global financial crisis the current trend of domestic economic slowdown GDP growth continued to decline PPI and CPI both down consumer confidence appears sufficient but China 39 s economic fundamentals remain good Strongly expanding domestic demand and other economic policies should be a timely boost br br The domestic appliance industry with nearly 1 trillion of market size on an important role in stimulating economic growth although the consumer electronics market this year is still growing but overall consumer confidence in the face of the shortage how to maintain this growth particularly As an industry leader the need to introduce active policies as a guide The face of Christmas New Year 39 s Day Spring Festival peak of the three major consumer and stimulate consumer demand to play the strongest voice the unilateral promotion certainly can not meet the requirements to enhance market confidence Suning in Shanghai Shanghai management headquarters the Joint eight banks dozens of well known home appliance brand for consumers in Shanghai issued a series of measures to stimulate consumption of home appliances br br Suning Appliance management headquarters in Shanghai said Ling Guosheng president quot The Power consumption is to stimulate the use of external force to allow consumers to pick up the consumer confidence This three industry giants across brands so many resources invested is Over the years the largest one is expected to boost consumer confidence largely become the end of the year a major force in home appliances market growth quot br br Suning early in 2008 on a three goal lead the industry in the form of the current economy industry many uncertainties arise and consistent style of steady development so that Suning 39 s ability to greatly enhance the warm clear rigid demand for household appliances in addition This winter is not too cold for Suning Suning even given the opportunity to advance the industry leader br br Everbright Bank Shanghai Branch Retail Business Division Vice President Tong Jie that Suning as the leading guide the healthy development of the industry the Chinese appliance market and a leader Relying on a strong channel platform healthy robust business model has the responsibility and ability to respond to national call to expand domestic demand appliances integrating all resources industry and to respond positively Suning three industry giants meet not only on the optimistic end of the year appliance market but the trust is Suning Suning 39 s platform and leading position can play these resources to maximum effect br Tripartite 500 million pool of resources br Suning br According to multiple data br Shanghai about 20 billion consumer electronics market with the scale and room to grow larger while more than 80 share of the chain from the home appliance industry home appliance chain on the local home appliance market to have a significant impact Ling Guosheng introduction the first three quarters Suning Appliance revenue growth 39 94 the main business revenue grew 41 67 far higher than the target growth of the industry average Level in the current economic downturn the economy Suning will still be in the country in 2009 to open 200 more stores and plans to recruit 36 000 employees See all the data Suning solid growth period in the development and continuation of the previous trend The dozens of companies to join forces to integrate their resources concentrated Suning Suning major giants demonstrate the favor and Suning also has ability to integrate these resources br br It is learned that the lead from the Suning Appliance bank and business resource for the tripartite alliance of consumer assistance and Christmas parties for hire New Year 39 s Day Spring Festival peak of the three major consumer integrated marketing resources to achieve a 5 billion Three were on the fees prices gift subsidies subsidies on bank charges alone reached 10 million yuan
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