Thursday, February 11, 2010
Qatar Steel Chooses GE Intelligent Platforms Proficy Software to Increase Efficiency and Decrease Costs
Qatar Steel was named one of the top four steel producers in the Middle East in October 2008, and, according to its website, it has "garnered a reputation for unrivaled quality, flexibility and reliability" [2]. The article claims, "The Middle East is expected to produce over 60 million tons of raw steel by 2010" [3], which is supported by Director and General Manager of Qatar Steel, Sheikh Nasser Bin Hamad Al Thani, on the company website. Even as a forerunner in a growing and very profitable industry, Qatar Steel needs to find ways to stay ahead of the competition. That is why the company signed a contract with GE Intelligent Platforms to use IT in order help it gain a competitive edge in the steel production industry.
According to Malek Hamdieh, Manager of IT for Qatar Steel, the contract with GE was offered after "an exhaustive evaluation process including current and future requirements analysis, return on investment scenarios and implementation methodology" [4]. It is worth $2 million and spans 14 months, which is how long it will take to implement the software solution. The solution will solve the main problem in Qatar Steel's production plant, which is monitoring the input of raw materials into the plant, an essential aspect of maximizing efficiency. I like how the article gives details of the contract and lays out exactly what problem the Proficy Software will be solving.
The article does not stop at "what", however; it goes on to explain how the software will positively affect the production process. Quotes from various company executives and a short explanation of how the software works give insight into the specific ways in which the Proficy Software will increase production efficiency and decrease time spent locating and streamlining information.
At the end of the article, a brief synopsis of the functions of the Intelligent Platforms division of GE is given, which gives the reader a broader sense of the importance of IT, whether used in business or otherwise. For example, the United States Military uses "GE Fanuc vetronics solutions" in "ground combat vehicles" which allows them to be "more maintainable and more inexpensive" [5]. For Qatar Steel, the Information Technology provided by GE helps it keep a competitive edge, but for other clients, including those involved in protecting the environment, GE provides IT that is solving major world problems.
Link to the article:
http://www.forbes.com/feeds/businesswire/2010/02/11/businesswire135283213.html
References:
[1] Holman, Elli. "GE Intelligent Platforms Proficy Software Chosen By Qatar Steel For Plant-Wide Production." Forbes.com. 11 Feb. 2010. Web. 11 Feb. 2010. <http://www.forbes.com/feeds/businesswire/2010/02/11/businesswire135283213.html>.
[2] "Qatar Steel Named in Top Four Steel Producers in Middle East." Qatar Steel. 19 Oct. 2008. Web. 11 Feb. 2010. <http://www.qasco.com/news/detail.php?ID=922>.
[3] Holman, Elli. "GE Intelligent Platforms Proficy Software Chosen By Qatar Steel For Plant-Wide Production." Forbes.com. 11 Feb. 2010. Web. 11 Feb. 2010. <http://www.forbes.com/feeds/businesswire/2010/02/11/businesswire135283213.html>.
[4] Ibid.
[5] Howard, Courtney E. "Warfighters call for innovative, responsive, and reliable vetronics in combat vehicles." Military & Aerospace Electronics Magazine Online. Web. 11 Feb. 2010. <http://mae.pennnet.com/display_article/367892/32/ARTCL/none/EXCON/1/Warfighters-call-for-innovative,-responsive,-and-reliable-vetronics-in-combat-vehicles/>.
IBM Launches Academic Cloud to Speed Delivery of Technology Skills to College Students
Thus far, many analysts of the Academic Skills Cloud find only the inherent advantages associated with implementation of the software. Professors can more easily demonstrate the current technology skills and the application of these skills to decision-making. Additionally, group and long-distance learning programs are much easier to conduct, serving to enhance learning experiences for students. Students now have access to IT curricula and courses from almost any location with the Academic Skills Cloud. The incorporation of the software onto campuses across the nation will undoubtedly free-up existing university technology infrastructure resources. However, I find the most important benefit the program lends students is the ability to stand out from the thousands of graduates across the nation each year when applying for jobs through acquisition of essential IT skills so many now lack as businesses become much more technology oriented in their approaches (1).
IBM seems to assure that the integration of the Academic Skills Cloud will lead, quite directly, to the transformation of the typical and ordinary college graduate of today into the tech-savvy and differentiable global entrepreneur of tomorrow. Such a transformation is extremely important as more businesses and firms are voicing their desire for employees possessing an ability to apply technical skills to any part of their organization. Jim Corgel, the general manager of IBM’s Academic Initiative, professes that, "Businesses today are looking to the technology industry and academia to produce a highly skilled workforce that can help drive transformational projects and solve industry-specific problems (3)." Seemingly, IBM’s Academic Skills Cloud is intended to produce the workforce which Corgel describes through an upper level education which employs technology to such categories as “information management and business analytics, digitized patient records, and clean technologies (1).”
I find it extremely sensible for IBM to not only offer part of its extensive software portfolio to academia to more easily allow the incorporation of technology into curricula, but to do so for no charge. With the goal of the Academic Skills Cloud remaining as the production of a workforce possessing the ability to apply technical skills across a firm, IBM is taking proactive steps to increase their own competitive advantage and to establish a strong foundation in their industry. The implementation of the Academic Skills Cloud will ultimately produce a more knowledgeable workforce, a workforce aware of the extreme importance firms are now placing on the incorporation of technology into everyday operations. The individuals entering into this workforce will be many of the same individuals seeking a job position with IBM in the future. Thus, a program such as the Academic Skills Cloud will limit the amount of time needed for IBM to train incoming employees, as many will already own the skills IBM seeks to establish. Reducing training time cuts overall costs for the firm whilst simultaneously granting more time for research and development.
References
(1) Tetpon, Sean A. "IBM Launches Academic Cloud to Speed Delivery of Technology Skills to College Students." CNNMoney.com. 10 Feb. 2010. Web. 11 Feb. 2010.
(2) "Cloud Computing." IBM Academic Initiative. IBM. Web. 11 Feb. 2010.
(3) Barrett, Larry. "IBM Launches Academic Cloud." InternetNews.com. 10 Feb. 2010. Web. 11 Feb. 2010.
Wednesday, February 10, 2010
IBM Releases Power7 Processor
An article related to IBM's new development discusses how "in data-center computing, the big trend today is to move from building blocks to bundles" (2). The question is whether or not this is going to be beneficial to the consumers. On IBM's website, they neglect to mention the price of this new processor saying only that it will be priced accordingly with the competitor's. However, after more research, I was able to find that the Power7 processor is priced at $190,000. IBM's target industries for this new product are specifically those involved in finance as well as scientific researchers. An example in one article came from the vice president of IT at Rice University who specializes in cancer research claiming that cancer will one day be the lead killer of people. Khan said that after using the new Power7 processor, they are already seeing benefits because they are constantly doing data analysis and the new system is helping to provide the results quick and more efficiently. I was also able to find that IBM is hoping to come out in the future with just as efficicent systems, but ones that will be more afforadable and aimed at email and web applications.
The new process is a smart grid designed to help consumers learn more about their own actions so to avoid expensive costs. "The goal of smart grids, which governements are starting to heavily subsidize, is to give households and businesses timely information so they can change their electricity consumption habits to reduce energy use and pollution, and save money" (2). I think that this is a powerful attribute especially with the world today all involved in the "go green" campaign. After reading several articles, it seemed that a lot of the new technology was trying to be developed in an envirnonmentally friendly order.
I think that IBM's new Power7 processor is going to be a success because organizations and industries are constantly working with data and trying to analyze this data, but are often found overwhelmed with it all. This new processor could potentially change that problem. I found it especially interesting to learn that cancer researchers at Rice University also use the Power7. To know that this new processor is helping speed up cancer research is definitly beneficial not only to the researchers, but the world as a whole. It could even mean that a cure is closer to being found. I think that developing the Power7, it will help IBM to stay on top in the technology industry as well.
References:
1. "IBM Unveils new Power7 Systems to Manage Increasingly Data-Intensive Services" 8 February 2010.http://www-03.ibm.com/press/us/en/pressrelease/29315.wss (Accessed February 10, 2010).
2. Steve Lohr. “Bundling Hardware and Software to do Big Jobs.” The New York Times. 8 February 2010. http://www.nytimes.com/2010/02/08/technology/08blue.html (Accessed February 10, 2010)
3. Darryl K Taft. “IBM Aims New Power7 Systems at the Smarter Planet.” 8 February 2010. http://www.eweek.com/c/a/IT-Infrastructure/IBM-Aims-New-Power7-Systems-at-the-Smarter-Planet-217284/ (Accessed February 10, 2010)
IT Progress in the Healthcare Industry
In "IBM To Acquire Initiate System" the article focuses around how IBM is going to attain Initiate System, a small but important vendor of master data management software (MDM). The importance of MDM software is that it "helps organizations ensure data consistency across dimensions such as customers, products, locations, and employees" (1). This type of technology is extremely important in the healthcare industry, where the quick exchange of information and patient profiles is crucial. Speaking about the aquisition, IBM's general manager of Informational Management, Arvind Krishna, emphasized the important role Initiate System's MDM software has been able to have in the healthcare industry. Krishna claimed "In the U.S. alone, there's $36 billion in government stimulus funds [available] to faciliate the adoption of electronic health records and health information networks, both being places where Initiate's solutions play strongly" (2). This technology helps with the ease and efficiency in which important medical information can be transferred.
Similarly, in the article "PatientKeeper Demos Medical System Interoperability" the author, Antone Gonsalves, discusses the progress that has been made to form a connected medical network. the article declares that there is an "ultimate goal of a unified view of patient health information that would span hospitals, clinics, and doctors' offices" (3). IT usage in the medical field has the potential to be very beneficial and can help with "healthcare standards for audit trail and node authentication, consistent time, patient demographic query, cross-enterprise document sharing, and content consumer" (4). The technology for this interoperability has been developing well. However, according to the article the healthcare industry has been slow in picking it up. Luckily, the government realizes how beneficial this technology could be and "approved more than $20 billion in health IT stimulus programs" (5).
After reading these articles I think it is very important for the healthcare industry to continue to put effort into new IT innovations. The ability to create a database of all the different medical information would be extremely beneficial for everyone involved. This collection of data would give patients the ability to have medical professionals access their information no matter what hospital, clinic, or office they were at. Additionally, it would be a great tool for doctors to use to get up to date information about not only their patients but also different procedures and medical results. I believe that it is extremely important for the industry to continue to put money and time towards creating these database systems. Also, I think it is a good thing that the government has realized the importance of these systems and is willing to contribute funds for their development. The creation of these databases should help to improve the healthcare industry's operations and effectiveness.
References
(1) Doug Henschen, "IBM To Aquire Initiate System," Information Week, February 4, 2010, http://www.informationweek.com/news/healthcare/interoperability/showArticle.html?articleID=222601119 (accessed February 9, 2010)
(2) Doug Henschen, "IBM To Aquire Initiate System," Information Week, February 4, 2010, http://www.informationweek.com/news/healthcare/interoperability/showArticle.html?articleID=222601119 (accessed February 9, 2010)
(3) Antone Gonsalves, "PatientKeeper Demos Medical System Interoperability," Inofrmation Week, February 2, 2010, http://www.informationweek.com/news/healthcare/interoperability/showArticle.html?articleID=222600875 (accessed February 9, 2010)
(4) Antone Gonsalves, "PatientKeeper Demos Medical System Interoperability," Information Week, February 2, 2010, http://www.informationweek.com/news/healthcare/interoperability/showArticle.html?articleID=222600875 (accessed February 9, 2010)
(5) Antone Gonsalves, "PatientKeeper Demos Medical System Interoperability," Information Week, February 2, 2010, http://www.informationweek.com/news/healthcare/interoperability/showArticle.html?articleID=222600875 (accessed February 9, 2010)
CRM: Keeping Airline Fliers Coming Back
Airlines have been experimenting with CRM systems through Frequent Flier Programs (FFP) for years and they are very popular amongst the airline industry. The basic concept being that a flier will earn more points as you travel, which then earns the flier rewards. However, FFPs do not guarantee that your luggage won’t be lost or that an apparent “free” flight is actually 100% free. Those who are a Frequent Flier expect a lot from their airlines, which don’t give back much in return (1). So how do the airlines increase the number of returning customers and guarantee satisfaction for their fliers? Well, implementing CRM systems is not enough; the airlines themselves much focus on the problems of the program, along with increasing their own capital from the use of the program.
The airline industry used to be commodity based, focusing on cost and adding customers (1). However, 9-11 drastically changed the airline industry, as many people were skeptical about flying and simply afraid to. This completely changed the industry to customer-based and CRM systems that have been directed towards cutting costs are no longer relevant. The airlines can now take advantage of the technology given to them from the CRM system they implemented by using the data they collect from the FFP to redirected the focus to loyalty and customer relations. "The advantage of all this data is that you can begin to determine different types of customers and then target your marketing to them”, says Raul Arce, the vice president of travel and transportation at IBM (1).
I completely agree with Mr. Arce when it comes to dissecting the data collected to focus on the customer’s needs. The FFP collects so much data from customers that can be used to remarket their airline. For instance, home addresses and businesses can help target a certain geographical area, along with destination and what kind of traveler you are – business trip, vacation, etc (1). All of this data can be used to increase customer experience and loyalty, which is so important in a service-based industry.
By appropriately using this CRM technology, airlines can enhance customer relations and better focus their market areas to their best customers in order to increase capital. Separating frequent fliers and best customers can even greater enhance capital and customer relations. The IT gathers information on all fliers and their specific needs. If all employees of the airline have access to this data, every customer can be treated specifically to their needs, which enhances customer relations. Better customer relationships increase customer loyalty and the percentage of returning customers, which in turn, increases capital.
I believe the best strategy for the airline industry is to take advantage of the CRM technology provided to them. Redirecting information brought in through the FFP can be utilized to increase customer loyalty by focusing on the frequent fliers and best customers of a specific airline. The use of a CRM system in a service-based industry can help companies focus on customer needs to then increase capital for the companies.
(1) Higgins, John. "Taking Airline CRM Efforts to New, Higher Altitudes." CRM Buyer. CRMBuyer: The Essential Guide for CRM System Purchasers. 1 Feb. 2010. Web. 7 Feb. 2010. .">
Tuesday, February 9, 2010
Air Force Seeks Secure Cloud Computing
Cloud computing has been defined many different ways, and according to InfoWorld, cloud computing is basically just “virtual servers available over the Internet.”[2] What does this mean for the Air Force particularly? With this cloud computing available to the military, possible threats and cyber-scams can be monitored and then prevented. With the availability of the InfoSphere Streams software, this threat prevention will be possible because monitors and sensors will be able to detect the massive amounts of information that pass through the military’s systems and networks daily. These systems can then decide which information serves as potential threats to the military databases and such.
As far as IBM goes, this new cloud computing system they are providing for the Air Force may “help IBM win more contracts in the public sector, which contributes more than 15 percent of the company’s almost $100 billion in sales and was the only unit to increase revenue last year.”[3] If successful, this system could push IBM’s sales to even further heights this year which is crucial in an ever-changing, technological world. As a result, if this system is deemed a success by the Air Force, it is very likely that other branches of the military will contact IBM in order to ensure that their networks are secure and virus-free as well. This, in turn, could send IBM sales sky-rocketing even further.
On the other hand, if the Air Force decides that this system does not lead to a cost-saving situation, they may kick it to the curb in a sense. This could mean that IBM would suffer a loss in sales and potential sales because no other branches of the military would then want to utilize this cloud-computing system. Although this is a possibility, I believe that even if IBM fails to implement this new system successfully, they are better off taking a chance because results if it is successful will be much more rewarding than they would be detrimental if the system failed to work properly.
Personally, I believe that without this new and innovative technology, the system would not be able to adapt to incoming threats and scams on the fly which is extremely necessary for the military, especially during a time of war. Preventing these threats will lead to overall more efficient security for not only the Air Force networks, but for the country as a whole. Therefore, if this computing cloud that is being designed by IBM prevents threats and overall eliminates costs, success would be inevitable for both military network servers, and IBM.
References:
[1] John Foley, “Air Force Seeks Secure Cloud Computing,” InformationWeek, 4 February 2010, http://www.informationweek.com/news/government/cloud-saas/showArticle.jhtml?articleID=222601145, (accessed on 9 February 2010).
[2] Eric Knorr, “What Cloud Computing Really Means,” InfoWorld, http://www.infoworld.com/d/cloud-computing/what-cloud-computing-really-means-031, (accessed on 9 February 2010).
[3] Katie Hoffman, “IBM Develops Cloud-Computing Model For U.S. Air Force,” BusinessWeek, 4 February 2010, http://www.businessweek.com/news/2010-02-04/ibm-develops-cloud-computing-for-u-s-air-force-adds-security.html, (accessed on 9 February 2010).
Tuesday, February 2, 2010
CargoNet: An “ERP” system and $30billion/year solution?
According to the managing director of ISO, "CargoNet will connect multiple data sources, so we'll get away from the fragmentation of having information in multiple databases and e-mails floating around from one task force to another” (2). This statement is crucial, because with the innovation of information technology, CargoNet can serve a purpose similar to an Enterprise Resource Planning (ERP). According to our textbook, an ERP is a collection of integrated software (3). An ERP combines all software and technology from a company, and its purpose is to provide the flow of information throughout a company. CargoNet is similar to this idea of a continuous information flow because all the data will be conveniently in one place instead of scattered in various places (4). Combining the information regarding truck theft and being able to locate it in one source will not only reduce the number of thefts that occur in a year, but also reduce costs that companies experience from loss of stolen goods.
According to the National Database, “CargoNet will collect up to 257 fields of data detailing everything from destination, plate number and carrier, to the time, data and location of the theft, to serial numbers and other identifying detail on the stolen goods” (5). This abundance of information in one location will not only help law enforcement, insurance companies, and the companies whose goods are on the truck, but will also benefit the customers. Customers will feel confident in purchasing goods in a store, rather than feeling the skepticism caused by someone who may be selling the item for a cheaper price on EBay. The number of goods stolen in the United States will decrease and companies will begin to feel control over the risk of loss that they may have previously experienced. Currently, truck and auto theft is the most costly property crime in the United States (6). With the current state of the economy, both customers and consumers cannot afford the cost of theft, therefore the implementation of CargoNet could not have come at a better time.
See Article:
“National Database Tracks Truck Theft” Information Week, January 26, 2010, http://www.informationweek.com/news/storage/systems/showArticle.jhtml?articleID=222500169 (accessed January 30, 2010).
References:
(1) “National Database Tracks Truck Theft” Information Week, January 26, 2010, http://www.informationweek.com/news/storage/systems/showArticle.jhtml?articleID=222500169 (accessed January 30, 2010).
(2) “National Database Tracks Truck Theft” Information Week, January 26, 2010, http://www.informationweek.com/news/storage/systems/showArticle.jhtml?articleID=222500169 (accessed January 30, 2010).
(3) Stephen Haag and Maeve Cummings, Management Information Systems for the Information Age, 7th ed. (New York: McGraw-Hill, 2008), 80.
(4) Stephen Haag and Maeve Cummings, Management Information Systems for the Information Age, 7th ed. (New York: McGraw-Hill, 2008), 82.
(5) “National Database Tracks Truck Theft” Information Week, January 26, 2010, http://www.informationweek.com/news/storage/systems/showArticle.jhtml?articleID=222500169 (accessed January 30, 2010).
(6) “Orange County District Attorney's Office” The Sheriff’s Blogger, August 26, 2009, http://capistranoinsider.typepad.com/the_sheriffs_blogger/2009/08/oc-task-force-nails-trucktheft-ring.html (accessed January 30, 2010).