Chapter 1
The Problem and Its Background
Introduction
It is now a widely held view that the world economy has entered a much more complex phase where individual national economies have become inextricably linked. In this new world economy, resources and markets have ceased to have the indelible national identity of the past. Restricted resources and markets that were once legally isolated have become much more accessible to enterprises that have acquired a global strategic vision. To the more visionary global enterprises, the world is but a borderless environment with homogeneous consumers who have developed an unforgiving taste for the most sophisticated and high-quality products. In response to the needs of these global consumers, the enterprises have developed global products. How such homogenised consumers are served, however, is a question of the strategic orientation of the enterprises and their ability to exploit the ever-evolving global economic environment.
With the global changes in businesses today, information technology (IT) plays a vital role in business survival. Information has become one of the main assets in information era. The efficient use of information is significant in determining the success of a certain organisation. Making awareness of information value and the ability to manage information organisation-wide will have great impact on organisation progress results. Since information is used in every feature of business and generated in every process, a centralised supervision function is needed to structure, combine and distribute it effectively and efficiently. Where the finance department monitors and manages the financial aspects of organisation and the legal department handles all legal affairs, the Information Organisation should manage this important business asset.
Actually, there are no businesses or a government agency that does not involve elements of risks. Also, there is no business venture or government that can function without management. Basically, this dissertation attempts to discuss the issues related to management in the information age particularly to enterprise management system (EMS) for managing IT assets in cross-border companies. Moreover, this paper presents the issues about management information system, risks, and crisis in the information age. Actually, due to the fast changing and growth of technology in Hong Kong and Shenzhen, China, as well as the improvement of trading relationship between the said two places, the company decided to implement the use of Enterprise Management System (EMS) or Information Technology (IT) assets of a business such as desktop computers or application software. However the first attempt failed due to mismanagement of the system due to cultural differences, communication problems, training and maintenance. The said failure resulted to low productivity, loss of the IT inventory as well as loss of important and confidential data. In spite of these drawbacks, most of cross-boarder companies are still planning to implement again the said technology but there are now some considerations to the lesson learned from the past.
From the previous attempt, the overall performance of the company has been affected. A negative impact to the behaviour of the staffs becomes apparent. It also causes confusion to the staffs and affects the trade relationship of the different offices of the company from the cross boarder’s offices. The difference between the culture and customs of the staffs in Hong Kong and Shenzhen has deterred the implementation of EMS. This is because, the company did not focused on different approach that they should apply in training and informing the staffs. It also affects the communication of the two offices. The cause of the problem is due to the improper management, poor implementation, lack of communication as well as maintenance of their IT resources and EMS (e.g. IT assets, Inventory Control, Data sharing and administration, Knowledge transfer, helpdesk enquiries, remote desktop support). Due to the fact that the reason for the failure of the first attempt to implement the company’s EMS is due to the cultural differences of the staffs as well as mismanagement of the IT resources, it is better to use the perspective of the staffs or the employees of the company. The improper management, implementation and maintenance of the EMS lead to more serious problems than not having it at all. The said mismanagement has lead to loss of important and significant data and information for the company, improper management and imbalance inventory, loss of IT resources. All of the said reasons or dilemma affected the performance of each and every individual staff that led to slow productivity that later affect the performance of the company as a whole.
Similar to the previous attempt, this project also deploy and implement EMS but this time the company focuses on areas that they find lacking during the first attempt. Focusing on communications, trainings and maintenance as well as team building helps the company to manage their resources in a more centralise manner. Application of innovative technology to the business functions and other service delivery as well as establishments of data standards for sharing and administration of cross boarder offices helps to support departmental strategic plan and performance goals, ensures efficient IT investments and cost effective and properly managed IT-based system based from the corporate perspective.
This project produces a correction and re-launch plan of the first used and implement EMS in the businesses in the cross-border offices in Hong Kong and Shenzhen, China. This includes the actions and activities that should be done to improve the use of EMS. The plan includes recommendations on areas that EMS should re-defined, such as policies in managing desktop computers, policies in application software, schedule of re-launching the solution and managing the security of the EMS. This also focuses to the centralisation of network architecture and software architecture.
With regards to the outcome of the study, the study focuses on the problem of data losses that is due to the non-effective and mismanagement of the IT business systems and strategies. It produces a user guide to data criticality or user guide for the access level of a given data. By doing this, it is easy to set some rules with regards to the level of importance of data as well as who should and when it should be access. It can help to maintain the confidentiality of the different information or data.
Background of the Study
As Hong Kong is a fast developing country in these years and has a very unique business environment, there are many points that need to pay attention when deciding on IT investment. Moreover, Shenzhen, China IT implementation is also crucial to become successful. This research is aiming to investigate what is the best way to create the core competence with minimal risk and capital expenditure for cross-border companies in managing IT assets. In view of the different perspective between of staff, this paper will prove that investment on IT is a critical successful factor (CSF), disregard the size of the company. Follow by this hypothesis will lead into the argument on the feasibility (advantage and disadvantage) of outsourcing IT for businesses.
During the early days of computer systems, software development consisted of a programmer writing code to solve a problem or automate a procedure (Kay 2002). This type of system development is said to be poorly planned, leading to inadequately designed systems, which are not user-friendly and not meeting the requirements of the organisation. Due to this problem, a myriad of changes have already taken place to accommodate the transformations being experienced by business organisations. Nowadays, systems are so big and complex that teams of architects, analysts, programmers, testers, and users must work together to create the millions of lines of custom-written code that drive our enterprises, and to manage these changes, a number of system development life cycle (SDLC) models have been created. These models include the waterfall, fountain, spiral, build and fix, rapid prototyping, incremental, and synchronise and stabilise (Kay 2002).
The most popular model is the waterfall model, which is a sequence of stages, where the output of each stage becomes the input for the next, and can be characterised and divided in different ways (Kay 2002). These division or stages include project planning or feasibility study, which establishes a high level view of the intended project and determines its goals; systems analysis or requirements definition, which refines project goals into defined functions and operation of the intended application; systems design, which describes desired features and operations in detail; implementation, where the real code is written; integration and testing, which brings all the pieces together into a special testing environment; acceptance, installation and deployment, where the software is put into production and runs actual business; and maintenance, which sustains the life, the changes, corrections and additions in the software (Kay 2002). By following these stages, the changes in the organisation can be accommodated properly, including its desire to implement and develop a new information system.
The advances in technology and the fast modernisation of the world, in general, opened new and very promising avenues of business opportunities not just in an individual’s locale but also abroad. A lot of business-minded individuals from different countries with different nationalities and cultural orientation have and continuously defied the geographic boundaries that exist between continents. This is evident in the growing number of internationally-operating business firms all over the world run by entrepreneurs of varying race and culture. The information man has successfully rebelled against intercontinental borders and the challenge that confronts him the most, deals with how to fit and blend in the new cultural environment in which their businesses are situated.
As discussed in the introduction, this research paper discusses the issues related to the development of IT to companies engaged in cross border transaction. With the growth of technology in Hong Kong and Shenzhen, China, the company have decided to implement the use of Enterprise Management System (EMS) or Information Technology (IT) assets of a business such as desktop computers or application software. In accordance to the cultural differences, communication problems, training and maintenance, the first attempt of the company to implement the system was a failure. Actually, from the said failure the company is now planning to implement again the said technology by applying the lesson learned from the past.
Evaluation of Encountered Previous Problems
In implementing the EMS for the companies in Hong Kong and Shenzhen, several problems are encountered. However, despite the presence of these problems, the research believed that these can be solved by effective communication. One of the problems encountered is dealing with the impetus for change, for all organisations are resistant to change. An organisation only undertake change when it can no longer meet the demands placed on it in the current mode of operation, and these demands come from customers, the problems the organisation is attempting to solve, and by the threat of competition from other companies (Ward 2006). Through effective speaking and listening, both the employees and the management can focus on informing each other of their beliefs and perceptions regarding the new implemented system. With this, the employees can speak to the management of their fears and lack of knowledge regarding the system. Moreover, the management or the leader can ask the project manager to make some adjustments regarding the problem, such as providing training for the staff and making the software program more user-friendly.
Several difficulties are also encountered during the previous attempt of EMS to the companies in Hong Kong and Shenzhen, China such as the management may lack understanding of other ways of managing the information systems function, and dealing with the invisibility of their own culture. From these difficulties, carefully planning the project and continuously communicating with the company’s suppliers and management to monitor their actions can be done. Maintaining constant internal and external communication is essential to make good relationships with the persons working in and for the company.
Moreover, errors are encountered and are sources of problems. There are only two reasons for errors that result in poor quality, namely, lack of knowledge and lack of attention. Lack of proper tools is a lack of knowledge or attention to someone’s part, and failure to provide adequate training and direction is one of the most common signs of lack of management commitment to “Total Quality” (Ward 2006). With effective communication, the management can provide their staffs or employees with adequate training to supply them with information regarding IS development. Lack of attention leads to lack of knowledge, and in turn, leads to a decrease in productivity and sales. This is why effective leadership, good speaking, writing and listening abilities are important to solve this problem.
Lastly, the implementation of EMS has a single and only major impediment to quality, and that is the top Information Systems executive. The hindrance lies on the fact that some of these executives simply lack understanding and commitment at this level, so Information Systems executives must change their attitudes about standards. However, when they convert, they become the greatest force behind quality. With this, it is best for the company to make sure that their Information Systems executive has the best knowledge regarding the system. They must allocate adequate resources for the dissemination of knowledge and for obtaining information regarding the system. For with the lack of management understanding, commitment and involvement, the entire system and its implementation will only lead to failure.
Research Questions and Null Hypothesis
For the completion of this study, necessary problems and questions must be posited in order to make a clear objective for the study. As such, the following question will be the main focus of the study, and will also aid in providing proper conclusions for the study. Thus the study will prove this hypothesis “Enterprise Management System for Managing IT assets has significant impact in cross-border Companies.” These questions will also help the researcher narrow down the necessary information to be gathered for the study.
Aims and Objectives
As was iterated in the previous section of this chapter, this study has several aims which focus on several aspects of enterprise management system for managing IT assets in cross-border Companies. In particular this study will focus on the significant effects of information technology in the businesses in Hong Kong and Shenzhen, China.
This study’s main objectives are:
Theoretical Framework
The study will utilise Roger’s diffusion of innovation theory, which formulated that the factors that predict the level of information technology adoption are the following (Bass 1969):
Ø Characteristics of innovation
Ø Training
Ø Organisational support
Ø Prior experience
Ø User’s age
According to Chew (2005) integrating information technology are more likely to perceive the following:
Ø Benefits from its use
Ø Compatibility of the technology with current practice
Ø The technology is not overly Complex
Ø The technology is Testable
Ø The process and results are Observable
Moreover, advanced in new information technology use are more likely to have had some information technology training and to have organisational support for its application (Rogers, 1995). The applicants would also tend to be younger age and have prior related experience in using technology to perform basic functions that are now transferred and applied to the new information technology.
When assessing the attractiveness of a technology investment, either as an external investor or when building a business case for internal funding, a key element of the analysis is the rate at which customers will take-up or adopt the technology (Rogers, 1995). Often, the entire business case is premised on a gross level assumption such as, “assume that the new technology will be used by 5% of the population of final users in less than four years time.” This approach is based on the “large market fallacy” that argues, the market is big, therefore only a fraction of that market is needed to adopt the technology in order to reach break even or return the investment, and therefore the potential upside is massive. This is hardly a realistic or satisfactory approach and the underlying market assumptions typically have no validity if this approach or some variant on it is used (Wing, 2001).
Significance of the Study
Although this study primarily has a purpose of providing academic knowledge concerning EMS in the businesses in Hong Kong and Shenzhen, China, especially with those that reach out to other areas all over the world through information technology, there are also several practical purpose for this study. Researches must be able to validate their information and also be helpful to the other researchers through provision of these data that may be used. As such, academic knowledge is important for analysing the possible outcome of a situation and the circumstances in which the variables may affect social standings.
This study will then be advantageous in advancing knowledge concerning the effect of EMS in the businesses in Hong Kong and Shenzhen, China. Moreover, it will also give the readers an idea on the effects of information technology to cross border business ventures. It may be possible through other studies for this to be measurable and precisely analysed, thus yielding more informative into consideration alp influence their decisions and may also help with the improvement and development of their own structures around the findings of the study concerning the topic.
Scope and Limitations of the Study
The study will determine the various challenges that the implementation of EMS in the businesses in Hong Kong and Shenzhen, China. Program implementations directed toward these challenges will be discussed and analysed. This study will gather pertinent data.
Meanwhile, one hundred fifty (150) respondents from businesses in Hong Kong and Shenzhen, China were surveyed and interviewed as respondents in this study. The primary strength of this study is that it evaluated individual’s perceptions and actual behaviours. However, the limitation is that this study’s findings will be based on participants’ stated judgments and intentions. The problem with such data is that perceptions of the respondents is sometimes subjective and can be sometimes inaccurate. Nevertheless, perceptions are meaningful in the sense that life is in part based on peoples’ interpretations, thus, although the present study is limited by its focus on the perceptions and opinions of the selected respondents, those opinions and perceptions are nonetheless important parts of the respondents’ everyday lives.
Moreover, the outcome of this study will be limited only to the data gathered from the books, journals and related articles and the primary data gathered from the result of the questionnaire survey that will be conducted by the researcher. Conclusions and recommendations will only apply on the proposed topic, and will stay limited to that topic. Other results that would arise outside the topic will not be considered, but will be stored for future use on other research.
Chapter 2
Literature Review
In part of the study, the sources will be based on the information gathered from other studies, journal articles, and books which is related to enterprise management system for managing IT assets in cross-border companies. The information that they give will help the researcher in assessing the information gathered from primary sources and therefore will be correlated to each other regarding their conclusions. At the same time, such information from the literatures can also serve as guides for the discussions and the formulation of the conclusions.
Overview
The world is moving towards the Information Age. Commodities and transactions may be transmitted through data. There is a degeneration of the real things to give way to what is abstract and digital. The information and digital for that matter are equally decisive and influential the modern world. Basically, information technology or information systems have become one of the main assets in information era. The efficient use of information is significant in determining the success of a certain organisation as justified by Jackson, Harris & Eckerseley (2003). According to them, any business in today’s world cannot survive without technology and online services involved. Basically, cross-border companies understands this need, thus most of them created a system that allows to manage IT assets and this is known as Enterprise Management System (EMS). As stated in the goal of this study, this part of the paper will be discussing the related studies concerning IT and system management.
Actually, services that they provide for customers have always been a priority of any business organisation; thus, the business industries tried to implement various means on how to ensure the reliability and quality of their products and services. For this purpose, the internet, information technology, information systems, e-commerce, and other e-based transactions played a significant role in most business industries. Cross-border companies recognise the capability of the IT not only in handling customer services but also in replacing or supplementing actual personnel. Through IT services, different businesses can provide efficient services to the customers while reducing the number of personnel who are sent to the customers’ individual location; in addition, business no longer needs to install call centres and assign several personnel to operate them. Different business industries made use of internet and computer technology in delivering quality customer service through specially designed software. This system enables the company to scan over the needs of their customers through digital reading. For example in an internet service companies, the digital scanning procedure can easily detect the problem in the system and send repairs through the internet in the absence of human intervention (Thompson & Strickland, 2003). In collaboration to the goal of this paper, this chapter shall be discussing the findings of related researches to this study i.e. related to enterprise management system (EMS) for managing IT assets in cross-border companies. It shall provide a discussion on the significance of this study to the existing literature in collaboration to the findings in Analysis Chapter. The contents of this portion of the study is gathered and collated from its secondary data.
Definition of Information Technology
With respect to the implementation of enterprise management system for managing IT, there is the need to describe information technology and how it is to be used in this study. While the first chapter has already given an impression on the subject, it is nevertheless important for the researcher to point out the different descriptions in an effort to make an assessment of the different ideas and be able to construct a pliable description on its uses, purposes, its aims, and its implementations. In accordance to the development of EMS for managing IT assets in cross-border companies, this part of the chapter will define the information technology as studied by some experts e.g. Chan, 2000; Sichel, 1997; Ji, 1999; Yuen et al. 2003; Feldman & March, 1981; Bikson, Gutek, & Mankin, 1987; March & Sproull, 1990; and Mutsaers et al 1998. The journals and papers of these authors are known in the field of Information Technology particularly its application in business and communication. In terms of credibility and reliability, these authors are credible enough to give reliable information pertaining to IT.
Actually, the use of information technology is a broad term that wraps all forms of technology used to store, create, interpret, transmit and manipulate information in its various formats. At the same time, Sichel, (1997) argued that it can also refer to the use of hardware, software, and communication methods that has developed over the years. As such, Chan, (2000) stated that information technology may refer to the exchange of data with the use of tools; in this era, such method highly focuses on the exchange of information with the use of digital devices that have further been studied over the years for the implementation of their uses. According to Sichel, 1997, information technology has helped with the development of several sectors all over the world, not to mention the argument of Ji, (1999) in which he stated that IT has become the primary driving force to the improvement of a country’s welfare through its economic influence as well as has been one of the primary helpers of gathering military intelligence for many countries. The importance of information technology can be seen through its vast uses over the years and how it has considerably affected not only the great departments in both the private and the public sectors of businesses, as well as government bureaus, but also has affected the lives of the simple people and the consumers. It can truly be seen that information technology has become an intricate part of many societies’ lives, and that it has also become the method of measurement for the development of the country.
For this study, the definition of information technology will be used in term to an almost limited sense that includes the use of networking and the most modern methods for establishing communication and gathering of information. It also entitles that the users be able to utilise several specific things, such as the use of digital method of exchange, computers, and the modern methods that have been used to operate the information-gathering of the users. Networking is one of the primary methods that indicate information technology. While it may have been emphasised that information technology may only refer to digital communication, it nevertheless may also include other previous methods such as the use of cable or even obscure methods – however, discussion of these uses are severely limited and will be mentioned specifically to ensure that the readers will be able to relate.
In an era of advanced technology, the importance of integrating Information Technology (IT) into almost all activities can hardly be denied. In fact, during the past decade, Yuen et al. 2003 in their paper argued that IT use had consistently and relatively grew that it has made ubiquitous impacts on society and our daily lives. IT has created such an impact that for most sectors, it has become a necessity instead of an option because of the intense competition dictated by it. Aside form this Chan (2000) pointed out that the radical impact of IT is directed on IT users, their work, and their working environments. With the local and global business world is rapidly changing, more and more companies use IT as a tool for competitive advantage. In the earlier years, research had already shown the importance of IT tools, such as the computer. Mutsaers et al. (1998) found that managers and professionals associated having a computer in one’s office with being more status conscious, career oriented, dynamic, logical, open-minded, younger, and less conservative. Similarly, the use of computers has been found to signal competence and rationality (Feldman & March, 1981 and March, 1987). Several researchers also stated that computers symbolise modernity and competitiveness among organisations (Bikson, Gutek, & Mankin, 1987; March & Sproull, 1990).
The emergence of Information Technology is without a doubt an important stage in the business world or every industry. Mutsaers et al (1998) stated that “Organisations are transforming or are rapidly becoming obsolete and replaced by swifter competitors or new entrants”. To advance this business transformation process, leaders are continually developing new organisational models and adopting new change approaches (Mutsaers et al, 1998).
IT in Action
In accordance to the development of information technology and with respect to the goal of this study i.e. to evaluate the current stance of Enterprise Management System for Managing IT assets in cross-border Companies, the review of researches conducted by Chu, Y 2003; Edwards, 2002; Light 2002; McCue, S 2006; Reynolds, J, 2004; Evans et al 1995; Tesone, D, 2005; Johnston & Mark 2000; McCall & Stone 2004; Czerniawska & Potter 1998; Bielski, L 2004; Slack, N, Chambers, S & Johnston, R 2004; Townsend, DeMarie & Hendrickson 1996; Leonard 1998; and Moore & Thorson 1996 will be discussed. In addition, the study concerning the development of IT in application to business e.g. World Economic Outlook, 2001 will also be assed in this chapter. Actually, some of this authors stated that information is certainly one of the most important factors for the development of our society, it is through the rate of information stage that countries are able to see their growth over the years. On the other hand, technology is certainly not anything new; since time immemorial, humans have been making use of everything that can be found in the environment to adapt in their surroundings. Although now highly evolved, technology has continued to be one of the greatest factors for the development of society today. The use of technology for the distribution of information has also become one of the most important factors for the development of societies as well as the expansion of businesses, not to mention the connection of different societies around the world.
From the study of World Economic Outlook (2001), it shows that the revolution of information technology reached extraordinary heights with the availability of the Internet to the public as it helped with the connection of the different countries together as well as helped facilitate business despite problems with geographical hindrances between them, thus contributing to the evolution of information technology around the world. At the same time, globalisation has also helped with its improvement as more corporations around the world began to eye regions in other parts of the world to cater to their expanding businesses; this demanded that there be easier method of running business despite the imposed geographical hindrances. Developing countries have realised that information technology may be the key to their economic revolution, and letting it be accessed by the public has increased the possibility of the people to improve their skills and knowledge in the method of using the technology over the years and be able to apply it in their work (Chu, Y 2003). Application of this knowledge will certainly increase the ability of the country to improve their services. Indeed, the advantages that information technology can offer to the development of the country through faster and quality service – therefore improving their service – is almost limitless. Its effects to economic (Edwards, 2002) and social (Light 2002) have become one of the basis for the great changes being implemented in the global regulations and worldwide exchange of views, perspectives, and ideas. It certainly has a great impact on the methods being used by the people around the world, in different aspects of their lives, in their work, and in other ways that are usually taken for granted.
Information technology (IT), according to McCue, S (2006) may also commonly refer to information and communication technology (ICT) which has been applied in various forms within different business industries. In the manufacturing sector for example, IT has played a significant role in enhancing management systems. As revealed in the paper of Reynolds, J, (2004) a number of information technologies had been made available to owners of business organisations for this purpose, from less-sophisticated to more advanced systems). The business operations of most businesses have been enhanced through information technology mainly when the concepts of business and consumers (B2C) and business partners (B2B) were introduced.
Internet technology also led to the development of EMS among companies. Through this innovation, product customisation, information searches and online deliveries are some common services that are now available to the customers. Manufacturers, suppliers and distributors on the other hand, benefit from internet utilisation through well-coordinated information sharing. Online auctions are even made possible with this technological development (Emiliani 2000).
In addition to internet technology, Evans et al 1995 and Tesone, D, 2005 argued that specific programs and systems such as Enterprise Resource Planning (ERP) also became one of the most well-known strategies for applying IT within manufacturing enterprises, which helps in facilitating information exchange. In addition to this, ERP also helps the business sector by improving various activities such as the monitoring of orders, materials, schedules and inventories as well as business process engineering. The Electronic Data Interchange (EDI) is yet another IT strategy that is applied by business organisations, particularly in improving their SCM operations. Private wide-area networks or value-added networks (VAN) were conventionally used to implement EDI. This however made EDI too costly for small and medium sized companies. With the introduction of the internet-based EDI, these enterprises are now able to acquire the benefits of EDI application (Johnston & Mark 2000).
Apparently, the study of McCall & Stone (2004) revealed that the retailing industry is also one of the business sectors that utilise various information technology strategies so as to enhance its operations. One of these strategies was the application of Electronic Point of Sale (EPOS), which was first introduced during the late 1980s. With this strategy, retail companies are able to acquire virtual online information about their respective customers, particularly their demands. These data are derived from the scanned purchases at the checkout counters of retail stores.
As retailers operate for several years, especially the food retailers, they were able to acquire a large customer database that can more or less give a good representation of their total demand. Customer data basically include information such as consumer sales in terms of brand, product, outlet and region. Information about the customers such as names, frequency of their visit to a particular outlet and payment method can also be obtained and stored in the database. With these data, retail companies are able to develop and make successful television campaigns based on the product sales obtained from a specific region (McCall & Stone 2004).
Moreover, the information that is stored on the database according to Czerniawska & Potter (1998) is mainly derived from the bar code reader. With this system, the reader, which is an electronic data input device, collects information and transmit it to the central computer. Aside from stock control, this data-gathering technique is also used to conduct market basket analysis, which is mainly used for developing profiles of individual shoppers.
With this respect, the introduction of information technology to business application even made the development of a customer database even easier and more effective. The incorporation of IT to customer data then led to the construction of the EPOS strategy. With this added feature, businesses now can make the most of the data derived from their customers. In addition, the development of results from analysing these data is now easier and faster than before. Data storage and classification are no longer a problem either.
In organisations that observe regular office settings as seen by Bielski, L 2004, IT application strategies had also been used. One of which is the use of information technologies in developing virtual teams. Business organisations have long been searching for mechanisms or systems that will make their operations work more efficiently. In the past, industries had recognised the efficacy of creating teams from their workforce in achieving this objective (Bielski, L 2004). Based on corporate experience, organisations have witnessed that team-based working environment is capable of drawing productivity and creativity out of their employees. Moreover, a dynamic business environment exemplified by work teams enables the member to overcome challenges better (Bielski, L 2004).
However, as teams are integrated into an organisation’s work operation, management had started to encounter several problems and dilemmas. For instance, some work assignments require frequent relocations. This then would call for expensive travel expenses to transfer a particular work team. Due to this, organisations are not able to maximise the use of team-based workforce as work teams tend to be constricted on small projects only. Furthermore, travelling causes much delay on work actions and decisions. Without the full and complete presence of the teams’ members in a common work site or location, no work progress is achieved. This has been the case until information technology was introduced.
With new software programs, Slack, N, Chambers, S & Johnston, R 2004 also believed that faster communication systems and more efficient processors, business sectors now have access to a useful technology known as virtual connectivity. The access to these new technologies and innovations has allowed people all over the world to communicate even at great distances. This transition has given organisations the idea of creating virtual teams. Virtual teams are made up of organisational members whose main form of interaction is made via electronic communication means. Through the use of the telephone, fax machines, the internet or other computer-based media according to Townsend, DeMarie & Hendrickson (1996), team members are able to communicate without actually seeing one another and even without being in one work location.
By means of these virtual communication systems, team members can easily decide or select which information system is appropriate for particular work tasks. For instance, in a work assignment that needs the exchange of information, lean technologies, such as electronic mailing or instant messaging, are used. Complicated work duties on the other hand, like conflict resolution or brainstorming, require more advance technologies such as video conferencing. Leonard (1998) noted that as the members of the virtual team are aware of the resources available to them for specific tasks, they are able to develop a refined sense of efficiency in communicating and conducting business operations as a team.
The application of information technology has also been used as a strategy for improving the businesses’ marketing efforts. For instance, internet technology may be integrated to other marketing tools in order to develop a strategy known as Integrated Marketing Communications (IMC). IMC is the strategic coordination of multiple communication voices. Its aim is to optimise the impact of persuasive communication on both consumer and non-consumer such as trade and professional audiences by coordinating such elements of the marketing mix as advertising, public relations, promotions, direct marketing, and package design (Moore & Thorson 1996). From these examples, it is clear that various strategies in applying information technology have been developed to address the different needs of business companies.
Hong Kong Information Technology
Since the main goal of this study is to evaluate cross border companies that is related to Hong Kong, it is vital to evaluate its current status with respect to the development of IT infrastructure. With regards the reviews of study conducted by Hagelin, Lee and Chu will be shown. These authors are prominent when issues of technology in Hong Kong were discussed. Basically, Hagelin, 1997 stated that Hong Kong is undoubtedly one of the quickest developing regions all over the world, especially with its regard for technology. While this country was under the British colonies, it managed to continue with its development and at the same time retain its culture; economics continued to thrive despite its recent handover to China at the end of the term of contract. It has continued to cater to foreign businesses and has expanded especially with the onset of globalisation and the expansion of many corporations from the Western region of the world and into Asia, while other Asian businesses also expanded towards the Western region, and with its great development, economy has certainly progressed (Hagelin, 1997).
Moreover, the ready acceptance of information technology in the government implementation and the public sectors in Hong Kong is certainly an indication on the agreement of the officials in realising the importance of its role in the changing times and thus were able to keep up with the needs of the businesses that are being conducted in their region. Moreover, the citizens of the province have also managed to maintain their confidence in the government over the years as the government has, in turn, used information technology not only to help the businesses within the region but has also used it to offer better services to their workers and their citizens through reaching out to other parts of their province (Lee, 2001).
Moreover, with the acceptance of information technology in government as well as the uses it has continued to give to the businesses, Hong Kong has now moulded its intricate connections to both in an effort to produce a better outcome of their products and their managerial abilities, and thus also contribute to the economy of the province. Chu (2003) has pointed out that with the importance of interconnectivity can be seen through the close workings of the government and the private sectors in an effort to protect the rights of both the businesses and the locals of Hong Kong. Moreover, with the fast-paced requirements of the corporations in that area, government departments must be able to keep up with their needs and as such must also be able to continue with the use of information technology. It was assessed that networking was one of the primary methods used for connecting the government and the businesses in their effort to ensure quick and exact exchange of information. The importance of information technology to the region and its focus on keeping up with the various methods of gathering these data was also echoed in this study, especially with the importance of information exchange between both sectors, and the need for continued development for both sectors to cater to the needs of the consumers and the citizens of the area as well as others who are depending on that region itself.
Information Evaluation: The Importance of Enterprise Management System for Managing IT assets in cross-border Companies
As mentioned, and from the previous reviews concerning IT and Hong business, it revealed that information technology has been one of the most influential factors for the expansion of the corporations as well as the living conditions of the workers due to their involvement with these corporations that have use of this technology particularly to those engaged in cross border transactions. Because of this, the influence of information technology can now be seen in several areas, which includes the living conditions that the workers have chosen. In accordance to this development of progress of IT, Enterprise Management System (EMS) tends to become vital in managing IT assets in cross-border Companies. With the productivity of a person as well as the importance that a company can give to their own information technology, it may be deduced that a person who is in charge of that area must also be able to access those information. If a company has a great need for the data that can be obtained through information technology, then a person may be judged based on his or her productivity and the contributions that s/he is able to give to the company, thus the need of EMS should be considered. In connection to this, Nordhaus, (2002) stated that business service may be either the result of these changes while also may be a contributing factor, as it can also affect the productivity of the company, which may require the information that can be gathered around the clock and from all areas around the world.
However, it must also be remembered that when discussing business service and the role that EMS in computers and information technology plays to heighten their advantage, other issues must also be taken into consideration, which includes the spatial relations that these may have to the locals, the domestic needs that must also be considered alongside with the need for information obtainment, the characters and backgrounds of the people who are to obtain these, as well as the influence that these may have to the residents. In a study that focused on the effects of information technology to the distribution of the residential area, Gordon and Richardson (1997) have pointed out that communication has become a great factor for the living area. It was also discussed that with the greater focus on the communication-building and the improvement of the time with regards to communication-exchange, then it has come to affect the way people have managed to observe their actions as well as the consideration for other people. Moreover, it was also pointed out that with the time for communication being cut, there is also the possibility that people may demand that transportation itself become quicker, mostly because of the acceptance for the quicker communication time, and therefore may also be concentrated on transporting. It is stated that dispersion of the people may be the result of the growing population within the area, and with information technology there is the lessening need for the people who are communicating to be within geographical areas, thus freeing them to interact with others. Dispersion of the nature of the citizens is thus shown through the differences in their background, characteristics, and focus.
In addition, information technology has a great effect on the chosen area especially with the social implications of the people is echoed in the study by Hewings, Kim and Sohn (2002) that focused on the effects of information technology in a particular area, namely Chicago. The finding of their study, however, was contrary to the suggestions of the previous study that stated information may yield to dispersion; instead, it pointed out through evidence that it may yield centralisation, especially for the users. This is because, as it was discussed, that in order to be able to provide the needed technology for information-exchange, there is also the need to centralise the space and be able to ensure that the people within the living quarters are able to receive the necessary resources that are needed from them to be able to gather the information that they need. Infrastructure plays a very important part in the needs that must be considered especially for the people who are to use these methods. It was also pointed out, however, that the finding may not simply regard geographical implications, rather with regards to the groups that are being formed and the knowledge spillage that comes from one group and into the other. Interaction and knowledge requires that the people at least have some connection with those whose information are being shared, and thus there is also the possibility of hierarchy being formed with the knowledge being passed on to those who may be of need. Moreover, it was found that it is the lower-ranked area of the city (e.g. those who belonged to a lower social class) may be more dependent in the intellectual spillover from those who have the knowledge and does not rely on the geographical proximity of the information; meanwhile, those who are in the high-ranked area of the city are the opposite, as they give high regard for the geographical proximity of those from which the information is being given to. It is interesting – and a little disconcerting – that social class continues to play a significant part in the decision of the people with regards to the exchange of information, and thus means that such division continues to exist.
Interestingly enough, the findings are also relevant to the study that has been conducted on the public demands that information technology has yielded in Hong Kong; the study that was conducted is highly significant to this study as they have almost the same theme the focuses on effects of information technology to services in residences with the factor of outbound performances. In this study, Chan and Chan (2002) have also realised that computers have had a great impact in the decision of the people with regards to their living condition; digital communication is not anymore limited to the confines of business dealings but also includes the simple information that families may wish to retrieve in the comfort of their homes. It was acknowledged that members of teams that conduct their business may be required to work on their projects despite the time limitation in order to keep up with the continued demands that are being required of them not only by their company itself but also with the fast-paced world market. Efficiency and improvement are some of the emphasised needs of the job, thus it also requires that the workers be able gather and provide their information despite geographical boundaries. In order to give them their needs, Hong Kong, one of the busiest regions in the world when it comes to world market, has catered to the needs of the workers for them to continue to keep up to date with the findings and also be able to give their needed findings. The findings of the study shows that housing types in Hong Kong has also catered to the need for speed decision-making among contracting parties. There is the acknowledged necessity for clients, consultants, and contractors to exchange data at the fastest rate possible, and as such must also be given. Engineering then has come up with several changes over the years in order to provide the needs of the workers and their clients. Strategies with regard to the designs of the housing structure have also been improved to simultaneously cater the physical, social, economical, and technological need of the people. Standardisation, however, has become a popular notion for the building owners in an effort to produce cheaper housing units that may continue to provide the people with their needs while at the same time cost less and have less time to be configured. Finally, it was concluded that with the continued development of Hong Kong and the surrounding areas that offer their technological innovation, as well as the continued need for information-exchange, then there will also be the continued modernisation of the building units to be offered to the workers. With the persistent need for innovation, information exchange, and space, then these buildings will also continue to change to keep up with the needs of the people, the corporations, and the economy.
Interpretation
With regards to the development of information technology and its progress, outsourcing issues must be carefully reviewed. According to Hormozi, Hostetler & Middleton (2003), outsourcing is the technique of utilising the resources of other areas in order to conduct places in another area; it is widely understood that this method uses modern information technology to their fullest advantage in order to take credit of the uses of the resources that may only be found in certain areas, as well as take advantage of the costs of cheap labouring. Hormozi, Hostetler and Middleton (2003) pointed out that outsourcing requires fast and innovative information technology to cater to the needs of the workers as well as the companies, especially if they are needed for the exchange of the information with other companies in their partnership. Strategy of the company must be taken into deep consideration as they ensure that both the workers are given relatively better employment while also ensuring that the necessary information technology is employed in order to offer better services to their clients and their partner companies. Because of the importance of information technology, however, it has been suggested that the corporations’ information technology departments must be able to retain their control over many of the actions that must be done in order to keep some centralised control and be able to pinpoint the possible source of problems in case they crop up, or be able to initialise immediate changes that may be required of them (Siemers, 1995).
Other factors must also be considered when attempting to use outsourcing for the business, such as the ability of the staff and the budget of the company, but all things considered, it must also be deliberated if the information technology costs will be less or at least equal the demanded services of the people (Yarbrough, 2001). Moreover, outsourcing is subject to the problems of international laws and social incompatibilities and therefore may give more problems to the workers that may not work out, not to mention that it may affect the company’s relationship with their contractors and partners. Great assessment must be considered for the need of the outsourcing companies as well as the ability of the workers to provide for the needed requirements.
In engaging with outsourcing and the use of information technology, John (2003) has cautioned against the possible problems that may be met by the corporations, and that with the direction of businesses in the field in this era, total reliance on information technology may prove to be a weakness in these areas; centralisation of the abilities and the departments of the providers may prove to be problematic and may provide countless of predicaments especially in a possible event of a breakdown of these methods. Such an event may render the company into a catatonic state and provide problems to the companies, halting their businesses. Other problems such as this dependence must be addressed by the user in the occasion that these problems might occur; addressing these problems may also ensure the safety of their future.
The recent flow of information would definitely make business transactions easy for every individual who desires to do so. In addition, it sustains the need for systems capable of storing and handling this information. The growing impact of information and communications technology fits in with the larger transformation towards a knowledge-based society. Most professional environments are already being adapted to EMS. Being able to handle e-mail and databases is necessary in the professional world. Apparently, the new vision of business as well as the developments mentioned cannot be isolated from the organisation as a whole. Basically, the source of an appropriate model of IT systems must lie with the potential to foster skills that are transferable to new situations and thereby relevant to us all in the society in which people live.
Chapter 3
Methodology
Overview
As discussed in previous chapters, this study aimed to determine the status of Enterprise Management System (EMS) for managing IT assets in cross-border companies. For this research, the research applied the descriptive qualitative approach due to the method’s usability and appropriateness. Secondary data obtained from books, journal and periodicals as discussed in the previous chapter served as the main source of information in this study. Specifically, literatures containing relevant case studies and statistical findings were used in the investigation. Particularly, the researcher of this study aims to identify the relation of using EMS as part of managing IT assets in cross-border companies. In this study, the descriptive method of research is utilised using a total of randomly selected 80 management employees from major companies and firms in music industries.
Research Design
Similar to the research method conducted by McCall & Stone (2004), the researcher will be using both qualitative and quantitative approach giving greater options in selecting the instrument for data-gathering. Two types of data were used: the primary and the secondary data. The primary data will be derived from the answers of respondents in the questionnaire to be prepared by the researcher. In addition, the information to be obtained from the interview will also provide primary data that will support the study. The secondary data on the other hand, will be derived from the findings to be stated in published documents and literatures related to the research problem. These will be based from the recent literatures related to EMS, IT asset management, business development and the effects of this business strategy cited by the respondents. Moreover, desk research will also be conducted to supply further information about the topic.
Actually, the quantitative approach focused on obtaining numerical findings will be used with the survey method. The interview on the other hand, made up the qualitative approach of the study as this focused on personal accounts, observations, description and individual insights of the interviewees. This study employed the combined approach so as to overcome the limitations of both approaches.
Research Method
The study will use survey as its research style and will use two types of tools or method under the said style which are the survey interviews and survey questionnaires. This style will show different analysis of different categories and levels of users and their situations. It will focus mainly on the percentage of the perspective of the staffs of the company and shows different tables regarding the accumulative percentage of the answers of the staffs regarding the different questions in the survey. Aside from survey, it will also use some historical data and information about the past performance of the company with regards or connection to the performance of the company as a whole during the first implementation of the EMS. It will also focus on the different business rules and policies that can help to balance the result of the study.
Respondents of the Study
The primary data of the study will focus on the reaction or response of the involved staffs of the company. It will give emphasise on the different categories, positions and levels of the company’s staffs and their needs and demands for a particular data or information. The different historical information about the company will also be included, together with the current business rules of the company. The study will determine the various challenges that the implementation of EMS in the businesses in Hong Kong and Shenzhen, China. Program implementations directed toward these challenges will be discussed and analysed. This study will gather pertinent data.
Meanwhile, one hundred fifty (150) respondents from businesses in Hong Kong and Shenzhen, China will be surveyed and interviewed as respondents in this study. The primary strength of this study is that it evaluated individual’s perceptions and actual behaviours. However, the limitation is that this study’s findings will be based on participants’ stated judgments and intentions. The problem with such data is that perceptions of the respondents is sometimes subjective and can be sometimes inaccurate. Nevertheless, perceptions are meaningful in the sense that life is in part based on peoples’ interpretations, thus, although the present study is limited by its focus on the perceptions and opinions of the selected respondents, those opinions and perceptions are nonetheless important parts of the respondents’ everyday lives.
Research Instrument
For this study, two research instruments were used to describe and assess EMS for managing IT assets in cross-border companies. These research instruments included the survey and interview methods. A structured questionnaire was distributed to the selected company employees (See Appendix A). The questionnaire given to the participants aimed to evaluate the status of EMS for managing IT assets in cross-border companies. The evaluation factors are developed in terms of the benefits and difficulties encountered from implementing EMS for managing IT assets. The questionnaire was structured in such a way that respondents will be able to answer it easily. Thus, the survey was structured using the Likert format with a five-point response scale. A Likert Scale is a rating scale that requires the subject to indicate his or her degree of agreement or disagreement to a statement. In this type of questionnaire, the respondents were given five response choices. These options served as the quantification of the participants’ agreement or disagreement on each question item (see data analysis procedures).
The Likert survey was the selected questionnaire type as this enabled the respondents to answer the survey easily. In addition, this research instrument allowed the researcher to carry out the quantitative approach effectively with the use of statistics for data interpretation. Once all the answers of the respondents have bee gathered, the researcher computed the weighted mean value for each survey item. The mean was then compared to the Likert scale to interpret the results. The weighted mean was used in order to obtain the average values that represented the sample’s response to each question in the survey. This helped the researcher identify the general response of the participants to the question given.
Data Analysis Procedures
To analyse the quantitative data, percentage and weighted mean were most suitable statistical method to be used. Percentage could be representing the whole population and it is descriptive statistics. It indicates personal behaviour in the some of the respondent. Weighted mean would perform the general opinion within the respondent of the survey samples, whether they agree to a given statement or not.
This research instrument was selected as it allows the acquisition of insights from selected respondents; with semi-structured interview, interviewees are able to express their feelings, concerns and opinions. This data-gathering tool is useful for both the study and the researcher since it helped in gathering relevant information from specific respondents.
After gathering all the completed questionnaires from the respondents, total responses for each item were obtained and tabulated. In order to use the Likert-scale for interpretation, weighted mean to represent each question was computed. Weighted mean is the average wherein every quantity to be averaged has a corresponding weight. These weights represent the significance of each quantity to the average. To compute for the weighted mean, each value must be multiplied by its weight. Products should then be added to obtain the total value. The total weight should also be computed by adding all the weights. The total value is then divided by the total weight. Statistically, the weighted mean is calculated using the following formula:
or
Once the computed mean for each survey item has been computed, the values are then compared to the liker scale:
Range
Interpretation
4.50 – 5.00
Strongly Agree
3.50 – 4.49
Agree
2.50 – 3.49
Uncertain
1.50 – 2.49
Disagree
0.00 – 1.49
Strongly Disagree
The study will use different software or applications that can help to store, maintain and analyse the result of the data gathering activities. MS Word will be used in order to create different letters and memos as well as to create the sets of questionnaires. MS Excel and SPSS (Statistical Packages for Social Sciences) can also help to analyse the quantitative data that have been gathered from the interviews and questionnaires. The study will also use the Internet for some reliable electronic resources as well as other electronic libraries and journal database.
The use of interpersonal skill is also necessary in gathering data from the different entity that are related to the problems as well as gathering information and data that will be important in the study. The knowledge in business research is also a must, because this will be useful in analysing and documentation of data. The data that have been gathered using the personal interviews will be tally and analyse in order to convert the data into information. Primary data that are collected will be presented using graphs, tables and figures. The secondary data that will be gathered will be written in a formal writing style. This documentation will serve as a diary of the project. It will show the different task that have done and not have done yet.
Summary
In order to attain the purpose of this study in determining the impact EMS for managing IT assets in cross-border companies, a research design is necessary. As its sample, 130 employees will be surveyed and 20 individuals will participate in the interview. As stated, the survey and interview methods of research are to be utilised. These instruments are subjected to approval and validation. After the data collecting procedures, the researcher gathered and summarised all the information acquired from the survey and interview. After analysing all data gathered, the researcher will then use these results to formulate conclusions and recommendations that will be provided in the next chapters.
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APPENDIX A: Questionnaire
Dear respondent,
Good day! I am conducting a research report regarding Enterprise Management System (EMS) for Managing IT assets in cross-border Companies. In line with that, I am requesting your much needed cooperation in order to gain insight on the current status of company’s Enterprise Management System (EMS) for Managing IT assets. This survey would not take more than ten minutes of your valuable time. Your clear and honest answers will be highly valued and deeply appreciated. Rest assured that the results of this survey will be used for purely professional reasons and answers will be treated as confidential. Thank you very much for you assistance in my research report!
Respectfully yours,
Andy Tang
Profile of the Respondent
Direction: Kindly fill up the following with the correct details about yourself. Please don’t leave any item unanswered.
Age _______
Gender
Male ( ) Female ( )
Civil Status
Single ( ) Married ( ) Separated ( ) Widow/Widower ( )
Name of Company (Optional):
_____________________________________
Benefits of Enterprise Management System for Managing IT assets in cross-border Companies
5 4 3 2 1
Strongly Agree Uncertain Disagree Strongly Disagree
5 4 3 2 1
Strongly Agree Agree Uncertain Disagree Strongly Disagree
5 4 3 2 1
Strongly Agree Agree Uncertain Disagree Strongly Disagree
5 4 3 2 1
Strongly Agree Agree Uncertain Disagree Strongly Disagree
5 4 3 2 1
Strongly Agree Agree Uncertain Disagree Strongly Disagree
5 4 3 2 1
Strongly Agree Agree Uncertain Disagree Strongly Disagree
5 4 3 2 1
Strongly Agree Agree Uncertain Disagree Strongly Disagree
5 4 3 2 1
Strongly Agree Agree Uncertain Disagree Strongly Disagree
5 4 3 2 1
Strongly Agree Agree Uncertain Disagree Strongly Disagree
Consequences of using E-commerce in SCM of music industry
5 4 3 2 1
Strongly Agree Agree Uncertain Disagree Strongly Disagree
5 4 3 2 1
Strongly Agree Agree Uncertain Disagree Strongly Disagree
5 4 3 2 1
Strongly Agree Agree Uncertain Disagree Strongly Disagree
5 4 3 2 1
Strongly Agree Agree Uncertain Disagree Strongly Disagree
5 4 3 2 1
Strongly Agree Agree Uncertain Disagree Strongly Disagree
APPENDIX B: Interview Schedule
Credit:ivythesis.typepad.com
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