As supply chain efforts mature, and a few companies do move to the most
advanced levels of performance, one distinction becomes apparent. Firms that
embrace the inherent concepts, as part of a total extended enterprise optimization
effort, have gained the high ground. The leaders have used advanced
techniques to focus first on operational excellence and then on customer satisfaction,
to open a serious gap between less able competitors, with several
companies beginning to dominate their industries. Positions achieved by such
leaders as Wal-Mart, Procter & Gamble, Toyota, Intel, Nike, and Dell bear
witness to the values being added through a concerted enterprise-wide improvement
effort. These leaders have discovered the advantages offered by moving
their supply chains into a position of having superior capabilities, gained through
greater access to knowledge across what becomes an enterprise-wide intelligent
value chain network.
When that knowledge is combined with an effort to develop greater customer
intimacy and satisfaction, especially with the most important customers,
the advantage becomes an ultimate distinction in most industries and markets.
To complete this chapter, we want to explore the advantages to be gained by
applying all of the premises presented earlier in this text to a business system
that operates in an intelligent network environment � a true level 5 operation.
To establish the goal of such a network, we would cite a statement made by
Debra Hofman of AMR Research: �Companies need to optimize the demand
and supply side of the network so there is a transparent flow of information that
brings the components together into a finely tuned network that is synchronized,
high performing, agile and responsive to changes in the signal� (Hofman, July
2003). We could not agree more, and when these conditions are attained, a
market advantage is the reward
Monday, May 3, 2010
CO-MANAGING VALUE:THE ESSENTIAL LEVEL 5 DIFFERENTIATOR
Moving from level 4 to level 5 in the extended enterprise is analogous to
moving from level 1 to level 2 in the stand-alone company.
The authors recall a conversation with the logistics manager of one of the
U.K.�s major retailers. The retailer had just announced that its distribution
centers were about to go stockless. When questioned about how this had been
achieved, the manager said that suppliers would deliver more frequently, in
smaller lots, closely matched to the most recent store demand data. Later in the
conversation, the question of value arose. Had the value in the chain overall
gone up or down? Not only did the manager not know, but the question had
not occurred to him. If the value had been reduced, at the suppliers� expense
of the extra less efficient deliveries, then this would eventually find its way back
into the value chain�s economics. The suppliers would gang up on the retailer
to force more profitable dealings, they would fail as their profits were reduced,
So how should a level 5 extended enterprise manage value? We suggest one
approach, based on an example of the value chain to deliver a bottle of carbonated
soft drink to the end customer. The supply chain for this simple product
is surprisingly complex, from plastic at the upstream end through the bottling
and packaging processes to the supermarket shelf. Even two or three years ago,
we would not have contemplated treating this as a single entity. For one thing,
we did not have the necessary tools. Now, the Internet and effective process
management mean we can move information to where we need it, and fast
schedulers give us the power to synchronize the flow of materials through the
whole network.
The challenge we face is bringing it to life, winning the extra value and
sharing it equitably between the partners. And that requires doing no more than
we have done many times before at level 1 � except that now the �functions�
are the businesses in the extended supply chain
Given that we can map the extended enterprise, we can also create an
economic model for it, a pseudo-profit-and-loss statement and balance sheet. By
combining these, we can build an economic value added (EVA) model, similar
to and with the same role as the level 1 return on net assets model, with the
exception that, for the extended enterprise, we must factor in the cost of capital
for each of the partners
We do this so we can see where value is gained and lost across the chain, so
as to manage it fairly. This is analogous to the investment in the active ingredient
plant in the Zeneca example in Chapter 3, where the value was �gained�
elsewhere in the chain.
A little research into most value chains will uncover many value-creating
opportunities. The interesting thing is that an understanding of the value chain
and its value models will show that EVA is not equally spread. In the case of
our soft drink bottle, it is heavily skewed to the downstream, as shown in Figure
7.7. No proposition will succeed if it relies on persuading one player to give
up part of its value. But it just might succeed if, by collaborating, we raise the
whole EVA curve and generate more value for everyone!
Ultimately, the level 5 extended enterprise will outstrip its lower level
competitors in cost, quality, and time to market. The entry ticket is a willingness
to engage, and the prize is a share in the increased value in the entire extended
enterprise.
moving from level 1 to level 2 in the stand-alone company.
The authors recall a conversation with the logistics manager of one of the
U.K.�s major retailers. The retailer had just announced that its distribution
centers were about to go stockless. When questioned about how this had been
achieved, the manager said that suppliers would deliver more frequently, in
smaller lots, closely matched to the most recent store demand data. Later in the
conversation, the question of value arose. Had the value in the chain overall
gone up or down? Not only did the manager not know, but the question had
not occurred to him. If the value had been reduced, at the suppliers� expense
of the extra less efficient deliveries, then this would eventually find its way back
into the value chain�s economics. The suppliers would gang up on the retailer
to force more profitable dealings, they would fail as their profits were reduced,
So how should a level 5 extended enterprise manage value? We suggest one
approach, based on an example of the value chain to deliver a bottle of carbonated
soft drink to the end customer. The supply chain for this simple product
is surprisingly complex, from plastic at the upstream end through the bottling
and packaging processes to the supermarket shelf. Even two or three years ago,
we would not have contemplated treating this as a single entity. For one thing,
we did not have the necessary tools. Now, the Internet and effective process
management mean we can move information to where we need it, and fast
schedulers give us the power to synchronize the flow of materials through the
whole network.
The challenge we face is bringing it to life, winning the extra value and
sharing it equitably between the partners. And that requires doing no more than
we have done many times before at level 1 � except that now the �functions�
are the businesses in the extended supply chain
Given that we can map the extended enterprise, we can also create an
economic model for it, a pseudo-profit-and-loss statement and balance sheet. By
combining these, we can build an economic value added (EVA) model, similar
to and with the same role as the level 1 return on net assets model, with the
exception that, for the extended enterprise, we must factor in the cost of capital
for each of the partners
We do this so we can see where value is gained and lost across the chain, so
as to manage it fairly. This is analogous to the investment in the active ingredient
plant in the Zeneca example in Chapter 3, where the value was �gained�
elsewhere in the chain.
A little research into most value chains will uncover many value-creating
opportunities. The interesting thing is that an understanding of the value chain
and its value models will show that EVA is not equally spread. In the case of
our soft drink bottle, it is heavily skewed to the downstream, as shown in Figure
7.7. No proposition will succeed if it relies on persuading one player to give
up part of its value. But it just might succeed if, by collaborating, we raise the
whole EVA curve and generate more value for everyone!
Ultimately, the level 5 extended enterprise will outstrip its lower level
competitors in cost, quality, and time to market. The entry ticket is a willingness
to engage, and the prize is a share in the increased value in the entire extended
enterprise.
The Elements of Credible Web Hosting
When you are looking for the best web hosting service provider to host your site, you may want to short-cut the process by going over reviews of web hosting companies. In this case, you should know the elements of credible reviews so you will not be misguided when deciding on a web host.
One of the first things you should be watching out for is the tone of the review. How is it written? Does it have a professional tone? Is it specific? Is it detailed? If you answer yes to these questions, then most likely the review site is written by someone who has done extensive research on the subject.
On the other hand, if the review has an advertising tone to it, chances are it is written by someone who is an affiliate of the web hosting service provider. By affiliate, it means that the person is looking to earn a commission when he is able to get customers to try the services of the web hosting service provider he is affiliated with. Thus, you can expect the review to be more like an advertising campaign, citing only the positive features of the web host.
Professional raters know the most important features of a web hosting company, which include the uptime guarantee, bandwidth, disk space, speed, technical support, and cost, and these should be explained in great detail in the review. It is quintessential for a potential client to know the uptime percentage guaranteed by the web host, and the reviewer should be very specific when it comes to this. An uptime guarantee of below 99.00% is not good enough as it means frequent downtimes. A customer who is seriously pursuing the success of his online business would certainly want to see this being covered in the review.
At the same time, the bandwidth, disk space, and speed, should not be ignored and should also occupy considerable space on the review. If you want to operate a big business website with e-Commerce capabilities, one of the first things you would wish to find out is if the web host offers unlimited bandwidth and disk space to accommodate the needs of your website.
A good web host review would not miss out evaluating the technical support of the company either, knowing how valuable the information is to website owners. Potential clients would certainly want to know if technical support is rendered 24/7 and if phone support and live chat support are available, too. Why this is important is because there could be technical problems along the way and clients would expect their web hosts to immediately attend to these problems.
The last element that should be covered in every review is the cost of the service. The price is always one of the deciding factors when choosing a particular product or service. If you are looking for a good web host, it is only natural that you would want to find out first if you'll be able to afford the monthly fee that comes with the service.
One of the first things you should be watching out for is the tone of the review. How is it written? Does it have a professional tone? Is it specific? Is it detailed? If you answer yes to these questions, then most likely the review site is written by someone who has done extensive research on the subject.
On the other hand, if the review has an advertising tone to it, chances are it is written by someone who is an affiliate of the web hosting service provider. By affiliate, it means that the person is looking to earn a commission when he is able to get customers to try the services of the web hosting service provider he is affiliated with. Thus, you can expect the review to be more like an advertising campaign, citing only the positive features of the web host.
Professional raters know the most important features of a web hosting company, which include the uptime guarantee, bandwidth, disk space, speed, technical support, and cost, and these should be explained in great detail in the review. It is quintessential for a potential client to know the uptime percentage guaranteed by the web host, and the reviewer should be very specific when it comes to this. An uptime guarantee of below 99.00% is not good enough as it means frequent downtimes. A customer who is seriously pursuing the success of his online business would certainly want to see this being covered in the review.
At the same time, the bandwidth, disk space, and speed, should not be ignored and should also occupy considerable space on the review. If you want to operate a big business website with e-Commerce capabilities, one of the first things you would wish to find out is if the web host offers unlimited bandwidth and disk space to accommodate the needs of your website.
A good web host review would not miss out evaluating the technical support of the company either, knowing how valuable the information is to website owners. Potential clients would certainly want to know if technical support is rendered 24/7 and if phone support and live chat support are available, too. Why this is important is because there could be technical problems along the way and clients would expect their web hosts to immediately attend to these problems.
The last element that should be covered in every review is the cost of the service. The price is always one of the deciding factors when choosing a particular product or service. If you are looking for a good web host, it is only natural that you would want to find out first if you'll be able to afford the monthly fee that comes with the service.
Features of a Cheap Web Host
When you have a business that has not gone online yet, that only means one thing - you are way behind of your competitors. It's really high time that you get your business on the World Wide Web. The virtual environment is where almost everybody hangs out in, and unless you want to be out of the rat race, that's exactly where you ought to be, too.
You may be concerned however that you have no idea on how to go about it. You don't have the technical skills, to begin with, but don't worry because going about the process of getting your business on the World Wide Web is no longer as overwhelming as it used to be - not when you have a wealth of information practically at your fingertips. The very first thing you would want to do is to choose a web hosting service provider. It's a basic requirement, but one that is by and large the most important step because once this has been taken care of you can be almost certain that things are going to run smoothly.
There are thousands upon thousands of web hosting providers out there, and they all come with a wide range of plans for every budget size. Apparently, there is cheap web hosting, too, for those who are on a really tight budget but who recognize the importance of partnering with a web host. If you are thinking of operating a business website, some people may criticize you for going for cheap web hosting when you can engage in professional services instead and save yourself all the trouble. They are on the contention that cheap is tantamount to saying substandard or poor quality which is just totally wrong. There are numerous cases when you are able to find great deals at a price you can very well afford - you only have to explore all your options as much as possible.
As it is, your choice of web host is very significant in the success of your online business. Some people give more attention to the design and content of the website, not realizing that without a good web host, everything else has no meaning, no value, and no significance at all. A web host, you see, is the very thing that will put your business on the internet and ensure that it gets all the exposure it needs.
You may be concerned however that you have no idea on how to go about it. You don't have the technical skills, to begin with, but don't worry because going about the process of getting your business on the World Wide Web is no longer as overwhelming as it used to be - not when you have a wealth of information practically at your fingertips. The very first thing you would want to do is to choose a web hosting service provider. It's a basic requirement, but one that is by and large the most important step because once this has been taken care of you can be almost certain that things are going to run smoothly.
There are thousands upon thousands of web hosting providers out there, and they all come with a wide range of plans for every budget size. Apparently, there is cheap web hosting, too, for those who are on a really tight budget but who recognize the importance of partnering with a web host. If you are thinking of operating a business website, some people may criticize you for going for cheap web hosting when you can engage in professional services instead and save yourself all the trouble. They are on the contention that cheap is tantamount to saying substandard or poor quality which is just totally wrong. There are numerous cases when you are able to find great deals at a price you can very well afford - you only have to explore all your options as much as possible.
As it is, your choice of web host is very significant in the success of your online business. Some people give more attention to the design and content of the website, not realizing that without a good web host, everything else has no meaning, no value, and no significance at all. A web host, you see, is the very thing that will put your business on the internet and ensure that it gets all the exposure it needs.
A Primer on Web Hosting
Web hosting is a vital element in Internet business. Hosting your website allows you to put up your presence on the Internet. The webpage you host acts as your profile page that contains information about you and your company.
If you have your personal webpage, you can consider hosting it. Hosting a personal webpage has many benefits. It is the simplest way by which you can establish connections with your friends through the Internet. It can also come in handy for applying job, as the prospective employer can know about you by just going through your personal webpage.
You can also create a website to do business and earn money. You can use the website to promote your business and the products or services that you are offering. You must host your website with a professional service provider.
You can choose a website hosting service as per the need and the purpose of your website. There is plethora of services available in the market, like dedicated hosting, file hosting and paid hosting.
Majority of hosting companies basically provide a server that will guide your business website activities. Web providers provide server space plus Internet connectivity to their clients. In case if the clients own the server, the web hosts provide only technical support as well as the space.
Factors to look for while choosing a web hosting service provider:
Price:
The foremost thing to consider while choosing a web hosting service provider is the price they are charging for their services. Every body wishes the money they invest is completely worth it. It is therefore essential that you carefully compare the features of the web hosting companies and choose a company that best suits your needs.
Category of disk space they offer:
You should choose a web hosting company that provides your disk space as your needs. Choose a company that allows you to use as much space as you want without any additional charges.
The past service records of the company:
Before choosing a web hosting service provider it is essential that your check their past records. You can check with their other clients if the suffer from frequent downtime or not. This is essential because if the visitor to your website constantly comes across this page is currently unavailable message it would put them off and this could mean you are loosing out on a customer.
Apart from the above mentioned factors look for a web hosting service providers who offer domain name registration and its renewal in their package.
If you have your personal webpage, you can consider hosting it. Hosting a personal webpage has many benefits. It is the simplest way by which you can establish connections with your friends through the Internet. It can also come in handy for applying job, as the prospective employer can know about you by just going through your personal webpage.
You can also create a website to do business and earn money. You can use the website to promote your business and the products or services that you are offering. You must host your website with a professional service provider.
You can choose a website hosting service as per the need and the purpose of your website. There is plethora of services available in the market, like dedicated hosting, file hosting and paid hosting.
Majority of hosting companies basically provide a server that will guide your business website activities. Web providers provide server space plus Internet connectivity to their clients. In case if the clients own the server, the web hosts provide only technical support as well as the space.
Factors to look for while choosing a web hosting service provider:
Price:
The foremost thing to consider while choosing a web hosting service provider is the price they are charging for their services. Every body wishes the money they invest is completely worth it. It is therefore essential that you carefully compare the features of the web hosting companies and choose a company that best suits your needs.
Category of disk space they offer:
You should choose a web hosting company that provides your disk space as your needs. Choose a company that allows you to use as much space as you want without any additional charges.
The past service records of the company:
Before choosing a web hosting service provider it is essential that your check their past records. You can check with their other clients if the suffer from frequent downtime or not. This is essential because if the visitor to your website constantly comes across this page is currently unavailable message it would put them off and this could mean you are loosing out on a customer.
Apart from the above mentioned factors look for a web hosting service providers who offer domain name registration and its renewal in their package.
Cloud Hosting
To fully comprehend the true meaning of cloud hosting, you first need to define it and understand what cloud computing is. Cloud hosting has been recently broken down and clarifies as Public, Private and Enterprise.
Public cloud is similar to shared hosting in that it is more affordable. However, when you buy a shared hosting plan, you are stuck with the limitations of the plan that you selected. On the other hand, public cloud is scalable so you can start with a little and then expand your resources as you need more.
Cloud computing, in layman's terms, separates the software from the hardware requirements.
All the information that you create and/or use within these programs are stored online across multiple servers. You may also get into this data from anywhere around the world that you have internet. It's services may vary from a small application on a public cloud to entire virtual networks running inside a private cloud. The specific characteristics of cloud computing is that the applications and all of the data are spread across multiple servers. In reality, it's a cluster of computers that act as a whole, yet instead of a RAID array of drives, you actually have what I would call RAIDed servers.
With a private cloud, any downtime or failing moments on any server won't affect your applications. Not to mention, you're only benefiting from the bandwidth levels and power of processing. This translates into an unlimited amount of bandwidth, storage, or processing power as a result of a system of hosting with a wide spread amount of space capacity.
Given, cloud hosting might sound a little bit like shared hosting, but don't get them confused, for the are completely different, leaving cloud hosting the best way to go. Shared hosting deals with your applications and it's related data on a single big server with tens and maybe even hundreds of separate websites. You are at risk of security and share among many other sites.
But with cloud hosting, all of the sites, applications, and data are uploaded and spread across the entire infrastructure. The hosting provider then makes a decision on what websites need what processor power and bandwidth by identifying how much traffic they are receiving. This type of setup guarantees plenty of space in the system. If your site instantly needs more power and/or bandwidth, the provider adapts by adding what resources are needed.
While this sounds great and amazing, you still need to make the big decision of what company to host with. CariNet is a leader in the cloud hosting field with a wide variety of cloud services to supplement our traditional servers and server clusters. We've hosted the world for over a decade, and are fluent in all things Internet related. We build own and operate all of our datacenters and facilities in the United States and are capable of handling customers and demands of any size. We give you the best dedicated server, managed server, or cloud server you'll find today. We'll take good care of you. That's a promise
Public cloud is similar to shared hosting in that it is more affordable. However, when you buy a shared hosting plan, you are stuck with the limitations of the plan that you selected. On the other hand, public cloud is scalable so you can start with a little and then expand your resources as you need more.
Cloud computing, in layman's terms, separates the software from the hardware requirements.
All the information that you create and/or use within these programs are stored online across multiple servers. You may also get into this data from anywhere around the world that you have internet. It's services may vary from a small application on a public cloud to entire virtual networks running inside a private cloud. The specific characteristics of cloud computing is that the applications and all of the data are spread across multiple servers. In reality, it's a cluster of computers that act as a whole, yet instead of a RAID array of drives, you actually have what I would call RAIDed servers.
With a private cloud, any downtime or failing moments on any server won't affect your applications. Not to mention, you're only benefiting from the bandwidth levels and power of processing. This translates into an unlimited amount of bandwidth, storage, or processing power as a result of a system of hosting with a wide spread amount of space capacity.
Given, cloud hosting might sound a little bit like shared hosting, but don't get them confused, for the are completely different, leaving cloud hosting the best way to go. Shared hosting deals with your applications and it's related data on a single big server with tens and maybe even hundreds of separate websites. You are at risk of security and share among many other sites.
But with cloud hosting, all of the sites, applications, and data are uploaded and spread across the entire infrastructure. The hosting provider then makes a decision on what websites need what processor power and bandwidth by identifying how much traffic they are receiving. This type of setup guarantees plenty of space in the system. If your site instantly needs more power and/or bandwidth, the provider adapts by adding what resources are needed.
While this sounds great and amazing, you still need to make the big decision of what company to host with. CariNet is a leader in the cloud hosting field with a wide variety of cloud services to supplement our traditional servers and server clusters. We've hosted the world for over a decade, and are fluent in all things Internet related. We build own and operate all of our datacenters and facilities in the United States and are capable of handling customers and demands of any size. We give you the best dedicated server, managed server, or cloud server you'll find today. We'll take good care of you. That's a promise
Choosing Web Hosting Plan
If you want to have your own website after buying a domain, you are going to need a hosting account. When you look for hosting, you might notice that there are different types that you can purchase. Two of the most common types of hosting plans are shared hosting and dedicated hosting. If you are new to all this, you probably need some understanding on what all this means so that you can make the best decision for your site.
What is shared hosting?
To understand what this is, you need a basic knowledge of what a host actually is. In reality when you have a site online, it is sitting on a computer otherwise known as a server somewhere. This computer holds the data for the website and delivers the content to those connecting to the site. A shared hosting plan means that you and other people with other sites are all using that same computer to store and host your websites. This means that they tend to be cheaper since more are using the same machine.
What is dedicated hosting?
Dedicated hosting on the other hand means that you are just using that one machine alone. Since you are not sharing the computer's resources, you can get much better performance just like having one program open on your machine at a time can get you better performance. Since you are essentially renting the entire machine alone, it is going to cost more.
Which one should you get?
If you are just starting your site, there is no need to get dedicated hosting. Shared hosting is much cheaper and provides everything you need.
As your site gets more visitors or as you start adding scripts to the site to perform certain function, you will start to have a need for a dedicated plan. Typically most hosting companies will inform you when you are starting to dominate the shared resources and ask you to move to a dedicated plan.
What is shared hosting?
To understand what this is, you need a basic knowledge of what a host actually is. In reality when you have a site online, it is sitting on a computer otherwise known as a server somewhere. This computer holds the data for the website and delivers the content to those connecting to the site. A shared hosting plan means that you and other people with other sites are all using that same computer to store and host your websites. This means that they tend to be cheaper since more are using the same machine.
What is dedicated hosting?
Dedicated hosting on the other hand means that you are just using that one machine alone. Since you are not sharing the computer's resources, you can get much better performance just like having one program open on your machine at a time can get you better performance. Since you are essentially renting the entire machine alone, it is going to cost more.
Which one should you get?
If you are just starting your site, there is no need to get dedicated hosting. Shared hosting is much cheaper and provides everything you need.
As your site gets more visitors or as you start adding scripts to the site to perform certain function, you will start to have a need for a dedicated plan. Typically most hosting companies will inform you when you are starting to dominate the shared resources and ask you to move to a dedicated plan.
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