and IT Outsourcing
As the U.S. economy struggles through recession, most companies
find themselves operating in "survival mode," focusing
on cost reduction while attempting to retain customers. More so
than at any other time, this mind-set places pressure on employees
at all levels to extract greater value from existing IT investments,
especially those in business intelligence (BI) tools and analytic
once BI was heralded as a means for competitive differentiation,
it now can make the difference between survival and business failure.
Based on the information-rich transactions generated by enterprise
resource planning (ERP), customer relationship management (CRM),
e-commerce systems, and document management systems. BI solutions
empower managers to closely monitor costs and minimize customer
churn while reducing production costs.
just 20 percent of the useful information generated by the average
enterprise stems from these types of transactions - what of the
other 80 percent?
to Gartner Inc., the vast majority of information generated is of
the unstructured variety and stored within documents, e-mail messages,
presentations, spreadsheets, and other formats. Content created
by employees - not the artifacts of operational systems - comprise
the majority of a company's information assets. Yet, despite this
significant investment, managers have no way of knowing whether
it supports a healthy bottom line or impedes corporate performance.
creation and maintenance of unstructured information is typically
viewed as a cost center, due to the simple fact that it is difficult
to tie content to revenue-producing activities. Therefore, many
companies employ content management systems to automate content
workflow, catalog and index content and offer portal-based content
access - all of which help rein in the costs of managing and providing
access to escalating volumes of unstructured information.
a means to reduce costs and improve employee productivity, content
management systems combined with document management models are
necessary. Yet, most corporate information assets are not considered
within the context of traditional business industry tools and applications.
Thus, management has little choice but to view content investments
as a cost of doing business - albeit one that presumably contributes
to revenue attainment.
outsourcing is a new breed of BI solution designed to help companies
quantify the value of information assets within the context of business
processes. Blending concepts from existing BI solutions and academia,
document/content score carding can transform content investments
from a cost center into a profit-generating member of the corporate
the outsourcing ASP model:
companies are strategically outsourcing their non-core functionality
issues without costing jobs, by utilizing an ASP model in an outsourcing
a recent study by Phillips Group (January 2002) the findings were
significant to support the cause, concluding that both large enterprises
and small to midsize businesses say 65% percent of large enterprises
(500-100,000 employees) will use ASP services for internal applications
by 2004, and 72% will use ASP model's for e-commerce. Among small
to midsize companies (those with 40-499 employees), 44% are projected
to use ASP's for internal applications and 53% for e-commerce by
the same year.
does this mean to your company? Cost savings, by reducing your production
costs by as little as 25% will increase your bottom line, reduce
staff overload and clearly offer new methods of doing business.