Question:
Discuss about the different value Chain Structures and design of two Organisations in Australia.
Value chain analysis signifies the internal activities performed by the firms to create the value for the products and the services. According to (Bhamu and Singh Sangwan 2014), the value chain analysis helps the firm to identify the primary and support activities that are fruitful in adding value to the final products. In addition to this, such process is also much helpful in increasing differentiation and reducing costs. It is necessary for the firms to structure the internal activities prior to provide the final products or services to the ultimate customers (Okongwu, Morimoto and Lauras 2013). It is even essential to design the distribution process in a structured way to participate in a competitive environment.
The study would discuss the different value chain structures and design of two organisations in Australia. The first one is TechnologyOne, the Australian telecom company, provides the software products to the enterprises. The second one is TPG Telecom, the renowned internet service provider in Australia. The report would evaluate the description, comparison, and contrast of the primary customer benefit package of these firms. Furthermore, the different value chain framework of two organisations will also be presented in this study. Additionally, the information related to the advantages and disadvantages of value chain structure will be analyzed. The study would also specify the discussion regarding the operational management of these two firms.
TechnologyOne is the largest Enterprise Software Service provider in Australia. The company has even captured the leading position in the competitive digital market by signing the acquisition agreement with Digital Mapping Solutions for the estimated amount of $12 million. After this acquisition process, TechnologyOne started restructuring the strategic focus for providing more innovative software solutions (Battistella 2014). The primary customers of the company are the asset intensive organisations and local government. After acquiring DMS (Digital Mapping Solutions), the company has strengthened the position in providing the leading web-based mapping as well as the spatial data solution (Technologyonecorp.com 2017). This software product is quite helpful for delivering the spatial data software to manage the asset or property of the enterprise. In order to add the customer benefit value, `the company has acquired the advanced technological tools that are suitable for the cloud systems. It has been observed that the vendors from other enterprises undertake the irrelevant and unsuitable hosting approach with the software (Zhong et al. 2016). This software is unable to work with the spatial data if it is not complex and of high cost integration. TechnologyOne is utilizing the Software as a Service (SaaS) for supporting the cloud customer benefit packages. The company is generally focusing in seven key markets. These seven key markets are:
In order to provide the customer benefits package, the company is developing, marketing, selling, implementing, and supporting the pre-configured software solutions (Oelze et al. 2016). This software product is quite beneficial in reducing the risks, time, and costs for the potential customers.
The competition in the Australian Telecom industry is quite significant (Monczka et al. 2015). Each of the .telecom companies is strengthening their competitive positions by increasing the customer benefits packages. In order to accomplish such mission, TPG Telecom, the renowned internet service provider in Australia has acquired the other telecom company. The company has declared that it will acquire the Perth-based Telco for the share of $8.60 to become the second largest telecommunication company after Telstra. The friendly transaction values iiNet at $1.4 billion would be taken into consideration for this deal. This transaction will be beneficial for the company to determine almost 1.7 million retail fixed-line internet subscribers in the Australian market. The target market of TPG Telecom is the Australian citizens that have been using the mobile network throughout the country. The company has ensured to utilize the advanced technologies for comprising almost $600 million network rollout capital expenditure. The company has undertaken the following initiatives to increase the customer benefits package in this competitive environment.
It is necessary for the company to keep attention towards the investors’ preferences. In order to comply with the global internet services, it is essential to promote the advanced technological tools. Investments of the adequate capital resources would be beneficial in such cases to accomplish the pre-determined goals (Stadtler 2015). Eventually, the company would be able to enhance the primary customer benefit packages for the upcoming years.
In managing the supply chain management structure, TechnologyOne takes the full control of the stock management system. It is quite flexible and easy to tackle system with the fully integrated process of the supply chain modules (Christopher 2016). The supply chain method undertaken by technologyOne helps in improving transparency with the proper details of the stocks. This stock management is quite easily manageable, especially during the trading hours. This supply chain management process is supporting the multi-location tracker. The supply chain stocktake processing of TechnologyOne is as follows:
Figure 1: Supply Chain Process of TechnologyOne
(Source: Technologyonecorp.com 2017)
Inventory management is the significant part of the supply chain management. This inventory management is associated with the comprehensive form of the stock management systems (Peppard and Ward 2016). The financials of TechnologyOne is aligned with the integrity management of this stock system. In this process, the orders are created by reviewing the stock line. It has the capability of tracking the commitments of the orders (Hill, Jones and Schilling 2014). This system is increasing stock levels and receipt orders by considering the stock aware procurement system.
The integrated inventory system is associated with the catalogues that are separated for the suppliers. The supplier catalogues include the detailed information related to the product and import facilities. Furthermore, the product is stored independently in the inventory system.
The multi-location information signifies that the information related to the single product is stored in different location (Peppard and Ward 2016). Based on the proper level of the location, the product details and the values will be stored accordingly.
The necessary information including codes, barcodes, descriptions, units, and suppliers are to be gathered for the supply chain process. The maintenance of the batched and serialized stocks is necessary for restoring the batch and serial tracking extension.
The stocktakes need to be performed after the warehouse is closed. Otherwise, it enables the management and audit inventory process would not create the proper impact on the operational business (Battistella 2014). By allowing the handheld devices, the stocktake information can be imported and exported.
The business intelligence tools and the extensive reporting of TechnologyOne provide the proper transparency across the statistical and the sales inventory information for the different locations. Within the scheduled time, this task needs to be performed.
The value chain analysis of the internet service providers is involved with the end-to-end services. This service depends on the sharing experience of end users who are using the internet for the different purposes (Ghezzi, Cortimiglia and Frank 2015). The value chain analysis of TPG Telecom is provided further:
Figure 2: Supply Chain Management of TPG Telecom Service
(Source: Asx.com.au 2017)
The content rights are one of the most significant steps of the value chain analysis. The content rights determine the different types of the rights that are used for the distribution process in the internet. The content rights are often involved with two major specifications, such as premium rights and digital rights. The premium rights include the audio, video, gaming content, and the print services. TPG telecom is quite concerned about these basic internet services while providing the extensive internet network to the people. It is important to mention that these services can even be provided via non-internet channels (Pagani 2013). On the other hand, the digital rights are quite similar concept like premium rights. However, this particular segment determines the distribution of the necessary services through the internet sources. The value of the overall amount of the content rights is approximately $64 billion.
The online service is the next segment of the value chain process. It is considered as the diverse segment that is covering up the business and consumer service provided through the browser or the application platforms (Stadtler 2015). This segment sometimes includes e-travel, e-retail, gaming, video, publishing, or music. In many of the cases, it has been noted that the online service sometimes is served as the information and the reference services.
In organizing the value chain process as per the modern technicalities, the contribution of the cloud services is essential to be mentioned. The cloud service is one of the most significant and helpful storage locations to keep the huge data secure (Zhong et al. 2016). While providing the internet-based services to the customers, the service providers need to keep the detailed information of the customers or the service users. The secure storage for restoring the data is conceptualized as the cloud based device that is mostly used in the value chain process of the internet service providing firms.
The utilization of the modern or advanced technologies is beneficial for structuring the value chain process of the firm. While providing the effective internet services to the people in Australia, TPG Telecom has been using the most developed and advanced technologies to promote the network security. The major motto of the company is to capture the leading position in the telecommunication industry in Australia. Therefore, it is necessary for the company to cope with the effective technological evaluation for both the customer services and the promotional aspects. Enabling platforms like design and hosting, payment platforms and machine-to-machine platforms are driving the internet service companies to increase the revenue. The maintenance of the end-user relationships through maintaining the advertising process is necessary for TPG Telecom.
The major comparison seen in the value chain process of these two organisations is the differences in products and services. TechnologyOne provides the software solutions that will prevent the risks that may emerge within the enterprise. Moreover, this software solution deals with the spatial data, which requires the complex devices to perform well (Bhamu and Singh Sangwan 2014). On the contrary, TPG Telecom is providing the internet services for connecting people throughout the country. This service is easily accessible. In fact, in majority of the cases, the value chain of TechnologyOne depends on the larger infrastructure and the huge amount of capital investments. On the other hand, TPC Telecom has the significant opportunities to grow the revenues through establishing the effective relationships with the end-users. The supply chain method undertaken by technologyOne helps in improving transparency with the proper details of the stocks. TPG telecom is quite concerned about these basic internet services while providing the extensive internet network to the people.
There are numerous advantages and disadvantages foreseen in the value chain analysis process undertaken by the firms. If considering the advantages, it can be implied that the value chain is one of the flexible strategic tools that helps the firms to grow in a competitive scenario. the effective value chain process creates the competitive advantage by ensuring cost differentiation process (Stadtler 2015). The organisations can easily recognize the issues of the potential customers through establishing the structured value chain process. The analytical system provides the customer value commitments that usually contribute to the formulation of the brand awareness.
On the contrary, the major disadvantage of the value chain analysis is the less acceptability of the organisational situation. The intimidating form of the value chain process can be troublesome for some of the firms if it is not structured in a sequential way. Even though people are familiar with the process, there are lesser numbers of people who can actually create this process in a remarkable way (Pagani 2013). The failure to achieve any specific segment may lead to huge loss. Hence, the structured planning of the value chain is essential for the firms to create the commendable customer benefits through such method.
TechnologyOne is the largest enterprise software company based in Brisbane, Australia. The operational process of the company is undertaken in six more countries. The company provides the spatial data solutions to the local government and the asset investor companies. The mission of the company is to build the most innovative data solution by having a vision of working with the business stakeholders and market leaders (Technologyonecorp.com 2017). The critical challenging business scenario is the major motivation for the company to introduce more innovative value chain process to secure the competitive edge.
TPG Telecom is the second largest internet service provider in Australia after Telstra. The operational business of the company has changed the world through becoming the business advisory and strategy implementation consultant. The mission of the company is to help the venture partners and the clients to achieve the expectation level (Asx.com.au 2017). The innovative strength of the company is the significant contributor to the entrepreneurship for delivering the powerful software solutions. Maintaining the fair working environment and creating the excellence and values are the core values of the company. The business operations of the company are widely focusing on the improvement of the integrated knowledge and lessons learned.
Conclusion
TechnologyOne started restructuring the strategic focus for providing more innovative software solutions. The primary customers of the company are the asset intensive organisations and local government. TPG Telecom, the renowned internet service provider in Australia has acquired the other telecom company. The company has declared that it will acquire the Perth-based Telco for the share of $8.60 to become the second largest telecommunication company after Telstra. The value chain of TechnologyOne depends on the larger infrastructure and the huge amount of capital investments. TPC Telecom has the significant opportunities to grow the revenues through establishing the effective relationships with the end-users. The failure to achieve any specific segment may lead to huge loss. Such process is also much helpful in increasing differentiation and reducing costs.
References
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