More is achieved through simplification

Simplifying work procedures are among critical tasks inherent in the function of chief information officers (CIO). As specific tasks, duties and responsibilities are mapped out, select functions can be defined not only to foster accountability in all facets of the decision-making procedure, but hasten approval structures, too. This begins by identifying present process flows and organizing a scheme to help simplify the communication element within an organization.

Typically, hierarchy structures are first plotted and mapped out to corresponding authority related to a division’s overall function. For example, relatively same mid-level managers might be delegated authority to accredit suppliers concerned (e.g., the engineering team evaluating project contractors, human resources checking on potential health supervisors and security services, and finance and/or compliance head evaluating auditor services) before the negotiation route is linked to an enterprise’s purchasing team. The same goes with marketing that usually rates suppliers on the merits of proposed catalogue structure, among others, while others decide on the suppliers’ ability to respond fast relative to the unit’s idea. At the end of the day, negotiations need to adhere to a purchasing unit’s prescribed policy to avoid “frictions” or “miscommunication,” especially during the main implementation process.

If an enterprise has enough cash resources to buy a system of its own, technical consultants are readily available to make their respective recommendations. Usually, companies adopt a “phased” approach, where investments are made in buying systems that would help address immediate backlogs tied to the overall upkeep of operations. There are ready off-the-shelf applications that can be tapped to handle this, while others invest time and resources in customizing an application that is most fitting to address a firm’s concerns.

Below are some of e-Marketplace 101 basics that I usually encounter with CIOs:

What if budget concerns set in?

Then, accessing an e-Marketplace through the Web would be the best approach. For one, no major investment is required to embrace this procedure. Second, several benefits from “multipliers,” as personnel are “indirectly expanded” with the aid of an e-Marketplace’s buyers and technical team.

Is it possible to integrate disparate systems to an e-Marketplace?

If you have already invested in the past for an Enterprise Resource Planning (ERP) solution and present cash resources are tight as a result of the global economic situation, it is possible to integrate your present system to an e-Marketplace. Since not all suppliers run on the same platform, e-Marketplaces are essential conduits to link a company with several suppliers concerned. 

Is my budget scalable if and when I do decide to invest in “middleware”?

Middleware, as the term connotes, refers to an “interface” application that could connect different system platforms to effect a seamless end-to-end transaction. Apart from having to decide on costs, setting up a “middleware” exchange that could link an enterprise’s internal system to that of external suppliers can be cumbersome. This is especially true, if part of the objective would cover systems that are required to adhere to tight security features (e.g., payment facilities for banks, other globally interconnected systems). Unless you’re similarly prepared to deploy a dedicated technical team that can undertake intensive training for external customers concerned, investing in a middleware would work.

All said, more CIOs have taken on a proactive approach by tying their internal systems to an e-Marketplace. These days, budget planning need not be a hindrance in adopting an e-commerce approach since Web-based e-Marketplaces go beyond specific concerns as outlined above. Immediate solutions are readily available when technological challenges exist. Most, however, opt for strategies that would allow their organizations to improve organically and be scalable in terms of expectations.

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The author is the senior technical applications associate of SourcePilipinas.com. For queries, reach him at [email protected].