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Integrated Marketing Management (IMC)

Integrated Marketing Management (IMC)

INTEGRATED MARKETING COMMUNICATION (IMC)

Integrated Marketing Communications is a term used to describe a holistic approach to marketing communication. It aims to ensure consistency of message and the complementary use of media. The concept includes online and offline marketing channels. Online marketing channels include any e-marketing campaigns or programs, from search engine optimization (SEO), pay-per-click, and affiliate, and email, banner to latest web related channels for webinar, blog, micro-blogging, RSS, podcast, and Internet TV. Offline marketing channels are traditional print (newspaper, magazine), mail order, public relations, industry relations, billboard, radio, and television. A company develops its integrated marketing communication programme using all the elements of the marketing mix (product, price, place, and promotion).

Integrated marketing communication is integration of all marketing tools, approaches, and resources within a company which maximizes impact on consumer mind and which results into maximum profit at minimum cost. Generally marketing starts from “Marketing Mix”. Promotion is one element of Marketing Mix. Promotional activities include Advertising (by using different medium), sales promotion (sales and trades promotion), and personal selling activities. It also includes internet marketing, sponsorship marketing, direct marketing, database marketing and public relations. And integration of all these promotional tools along with other components of marketing mix to gain edge over competitor is called Integrated Marketing Communication. Although closely linked to Integrated Marketing Communications (IMC), it should not be confused with it. This is enhanced when integration goes beyond just the basic communications tools. There are other levels of integration such as Horizontal, Vertical, Internal, External and Data integration. Here is how they help to strengthen Integrated Communications.

Horizontal Integration occurs across the marketing mix and across business functions – for example, production, finance, distribution and communications should work together and be conscious that their decisions and actions send messages to customers.

Vertical Integration means marketing and communications objectives must support the higher level corporate objectives and corporate missions. Check out the Hall Of Fame later for more about missions.

Internal Integration requires internal marketing – keeping all staff informed and motivated about any new developments from new advertisements, to new corporate identities, new service standards, new strategic partners and so on.

External Integration, on the other hand, requires external partners such as advertising and PR agencies to work closely together to deliver a single seamless solution – a cohesive message – an integrated message.

Meaning

“It is the coordination and integration of all marketing communications tools, avenues, and sources within a company into a seamless program that maximizes the impact on consumer and other end users at a minimal cost.”

Integrated marketing communication represents a holistic view of marketing. Marketing communications is a subset of the overall subject area known as marketing. Marketing has a marketing mix that is made of price, place, promotion, product (known as the four P’s), that includes people, processes and physical evidence, when marketing services (known as the seven P’s).

Is part of the marketing mix, includes all the means by which a company communicates directly with present & potential customers. The process of presenting an integrated set of stimuli to a target with the intent of evoking a desired set of responses within the target market & setting a channel to receive, interpret & act upon messages & identifying new communication opportunities.

Importance of Marketing Communications not only informs, but is also used to differentiate the seller’s products/services may also be effective in affecting the price elasticity of demand (non price competition) Prerequisite of Marketing Communication the marketing communications strategy of a firm must be coordinated and linked with concepts such as target segments, positioning, differentiation, and image.

 

Marketing communication mix is also called as promotional mix. Integrated means combine of two or more elements, which may includes advertising, personal selling, public relation & sales promotion. These 4 elements are very much the traditional components of the promotional mix. In addition to these, other techniques are now increasingly added to the overall promotional mix.

Promotion is one of the Ps in the marketing mix. Promotions has its own mix of communications tools. All of these communications tools work better if they work together in harmony rather than in isolation. Their sum is greater than their parts – providing they speak consistently with one voice all the time, every time.

Definition

According to the American Marketing Association, integrated marketing communications is “a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time.” This topic will cover integrated marketing, including the best practices and tools of tradition and Web 2.0 to design and implement great and highly effective communication and branding strategies.

A concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines and combines these disciplines to provide clarity, consistency and maximum communications impact.

Defining Integrated marketing:

Integrated Marketing (IM) is a management strategy and meta-discipline focused on the organization-wide optimization of unique value for stakeholders. Integrated marketing is the planning an execution of all your company’s marketing activities, online and offline, in a way that is consistent across all of your customer contacts and creates more value than when those activities are performed separately.

Defining Communication:

Communication is the process of sharing information between people through a continuous activity of speaking, listening & understanding. Communication is the process of delivering a message from one person or group to another.

History

The History of Marketing in the 20th century and earlier is a complex and still not fully explored subject, mixed up as it is with a history of trade and economics. The concept of integrated marketing is focused on the creation of value, arguing that the organization needs to be united in the creation of distinctive or differentiated value in order to achieve productive synergy.

Similarly, Peter Drucker argued that, “Every organization, whether business or not, has a theory of the business. Indeed, a valid theory that is clear, consistent and focused is extraordinarily powerful.”

According to Drucker, the Theory of the Business consists of assumptions about the environment of the organization, the specific mission of the organization and assumptions about the core competencies needed to accomplish the organization’s mission.

The concept of integration also arises as a result of recognition of disintegration, especially in the field of communication. Integrated marketing communications (IMC) developed during the 1990s as an Endeavour to achieve consistency across marketing communications disciplines and media that had become fragmented over time through the cultivation of individual disciplines, competition and the development of independent communication objectives. By 2000, it was recognized that there was a logical and practical need in what was called stage for IMC for this to be extrapolated across all organizational contact with customers and therefore across the entire organizational business processes.

The Tools for Integrated Marketing Communication

Each communication tools has its own unique characteristics & costs. The tools that marketers commonly use to achieve their communication objectives are:

 

 

 

 

1. Advertising:

Advertising can be used to build up a long term image for a product or trigger quick sales. Advertising can efficiently reach geographically dispersed buyers. Certain forms of advertising (TV) can require a large budget, whereas other forms (newspaper) do not. Just the presence of advertising might have an effect on sales; consumers might believe that a heavily advertised brand must offer good value. Because of the many forms & uses of advertising it is difficult to make generalization. Yet the following qualities can be noted:

a.       Pervasiveness: Advertising permits the seller to repeat a message many times. It allows the buyer to receive & compare the messages of various competitors. Large scale advertising says something positive about the seller’s size, power & success.

b.      Amplified Expressiveness: Advertising provides opportunities for dramatizing the company & its product through the artful use of print, sound & color.

c.       Impersonality: The audience does not feel obligated to pay attention or respond to advertising. Advertising is a monologue in front of, not a dialogue with, the audience.

2. Personal Selling:

Personal selling is the most effective tool at later stage of the buying process, particularly in building up buyer preference, conviction & action. Personal selling has three distinctive qualities:

Personal Interaction: Personal selling involves an immediate & interactive relationship between two or more persons. Each party is able to observe the others reactions.
Cultivation: Personal selling permits all kinds of relationship to spring up, ranging from a matter-of-fact selling relationship to a deep personal friendship.
Response: Personal selling makes the buyers feel under some obligation for having listened to the sales talk.

3. Sales Promotion:

Companies use sales promotion tools – coupons, contests, premiums, & the like – to draw a stronger & quicker buyer response. Sales promotion can be used for short run effects such as to highlight product offers & boost sagging sales. Sales promotion tools offer three distinctive benefits:

a. Communication: They gain attention & may lead the consumer to the product.

b. Incentive: They incorporate some concession, inducement or contribution that gives value to the consumer.

c. Invitation: They include a distinct invitation to engage in the transaction now.

4. Public Relations:

Marketers tend to underuse public relations, yet a well-thought-out program co-ordinate with the other communication mix elements can be extremely effective. The appeal for public relations & publicity is based on three distinctive qualities:

a.       High Credibility: News stories & features are more authentic & credible to readers than ads.

b.      Ability to catch buyers off guard: Public relations can reach prospects that prefer to avoid salespeople & advertisements.

c.       Dramatization: Public relations have potential for dramatizing a company or product.

5. Direct Marketing:

The many forms of direct marketing – direct mail, telemarketing, internet marketing – share three distinctive characteristics. Direct marketing is:

a. Customized: The message can prepare to appeal to the addressed individual.

b. Up-to-date: A message can be prepared very quickly.

c. Interactive: The message can be changed depending on the person’s response.

Nature of Each Promotion Tool:

 

Steps Involved in Developing Effective Communication

In order to develop an effective integrated communication & promotion programme, the marketing communicator must do the following 6 steps as shown in figure:

 

 

 

 

 

 

Step 1- Identify the Target Audience:

The process must start with a clear target audience in mind: potential buyers of the company’s product, current users, deciders or influencers, individuals, groups, particular publics, or the general public. The target audience is a critical influence on the communicators decision o what to say, when to say, where to say & whom to say it.

The target audience can potentially be profiled in terms of any of the market segments. It is often useful to define target audience in terms of usage & loyalty. Is the target new to the category or a current user? Is the target loyal to the brand, loyal to a competitor, or someone who switches between brands? If the target is a brand user, is he or she a heavy or light user? Communication strategy will differ depending on the answer. Image analysis can be conducted to profile the target audience in terms of brand knowledge to provide further insight.

Images are “sticky”: they persist long after the organization has changed. Image persistence is explained by the fact that once people have a certain image, they perceive what consistent with that image. It will take highly disconfirming information to raise doubts & open their minds, especially when people do not have continuous or new first hand experiences with the changed object.

Step 2- Determine the Communication Objective:

As showed with the example of a new brand to remove the problem of cracked heels, marketers can set communication objectives. Rossiter & Percy identify four possible objectives, as follows:

a.       Category need: Establishing a product or service category as necessary to remove or satisfy a perceived discrepancy between a current motivational state & desired emotional state. A new-to-the-world product such as electric cars would always begin with a communications objective of establishing category need.

b.      Brand Awareness: Ability to identify (recognize or recall) the brand within the category, in sufficient detail to make a purchase. Recognition is easier to achieve than recall-consumers are more likely to recognize the distinctive red-and-white packages of Colgate Dental Cream than recall the brand if asked to think of a brand of toothpaste. Brand recall is important outside the store, brand reorganization is important inside the store. Brand awareness provides a foundation for brand equity.

c.       Brand Attitude: Evaluation of the brand with respect to its perceived ability to meet a currently relevant need. Relevant brand needs may be negatively oriented (problem removal, problem avoidance, incomplete satisfaction, normal depletion) or positively oriented (sensory gratification, intellectual stimulation, or social approval). Household cleaning product often use problem solution: food products, on the other hand, often use sensory-oriented ads emphasizing appetite appeal.

d.      Brand Purchase Intention: Self instruction to purchase the brand or to take purchase related action. Promotional offers in the form of coupons or two-for-one deals encourage consumers to make a mental commitment to buy a product. But many consumers do not have an expressed category need & may not be in the market when exposed to an ad, making intentions less likely to be formed.

Step 3- Designing a Message:

An effective message should get attention, hold interest, arouse desire, & obtain action (AIDA model). In practice, few messages take the consumer all the way from awareness to purchase, but the AIDA framework suggests the desirable qualities of a good message. In putting the message together, the marketing communicator must decide what to say & how to say it.

 

According to ‘AIDA’ model, A marketer should begin by winning attention or gaining awareness, creating interest, inspiring desire and precipitating the action for purchase, in the prospects in order to enable its product to be adopted by the target public.

(a) Message Content: The communicator has to figure out an appeal or a theme that will produce the desired response. There are three types of appeals:

i.      Rational Appeals: It relate to the audiences’ self interest. Be sure that the product will produce the desired benefits, for an example message showing a product quality, economy, value or performance.

ii.      Emotional Appeals: It attempt to stir up either negative or positive emotions that can motivate purchase. Communicators may use positive emotional appeals such as love, pride, joy & humor. Humorous messages claim that they attract more attention and create more linking and belief in the sponsor.

iii.      Moral Appeals: It is directed to the audience’s sense of what is right & proper. They are often used to urge people to support social causes such as cleaner environment, better race, relations, and equal rights for women, and aid to the disadvantaged.

(b) Message structure:

The effectiveness depending upon the structure as well as the content of the message. The first is whether to draw a conclusion oriented to the audience. Research showed that drawing a conclusion was usually more effective. The second message structure issue is whether to present a one sided argument r two sided argument. The third message structure is issue is whether to present the strongest argument first or last. Presenting them first may get strong attention.

(c) Message format:

The communicator must develop a strong message format. In the print ad, the communicator has to decide on headline, copy, illustrations & color. If the message to be carried over the radio, the communicator has to choose words, voice qualities & vocalizations. The sound often announcer promoting banking services should be different from one promoting quality furniture. If the message is carried on the product or its package the communicator has to watch texture, scent, color, size & shape.

Step 4- Choose the Media through which to Send the Message:

There are two broad types of communication channels – Personal and Non personal.

a.       Personal Communication Channels: In personal Communication channels, two or more people communicate directly with each other. They might communicate face-to-face, over the telephone, through the mail or even through an internet chat. Personal Communication channels are effective because they are allowed for personal addressing the feedback.  Personal influence carries great weight for expensive, risky or highly visible products. For example, buyers of automobiles often go beyond mass media sources to seek the opinions of knowledgeable people.

b.      Non Personal Communication Channels: Non personal communication channels include media at most yearend events. Media consists of:

 

1.       Print media –newspapers, magazines, direct mail etc.

2.       Broadcast media-radio, television etc.

3.       Electronic media-audiotapes, videotapes, CD-ROM, web page etc.

4.     Display media-billboards, signs, posters, banners, hoardings etc.

Most of the non personal messages come through paid media.

Atmospheres are package environments that create or reinforce the buyer’s leanings towards buying a product. E.g.: A luxury hotel will use elegant chandeliers, and other tangible signs of luxury to communicate audience.

Step 5- Selecting the message source:

In personal or non personal communication, the messages impact on the target audience is also affected by how the audience views the communicator.

Messages if delivered by highly creditable sources are more persuasive. Thus, marketers hire celebrity endorsers-well known athletes, actors, and even cartoon characters- to deliver their messages. Many food companies hire doctors, dentists and other health care providers to motivate and recommend their products to the patients. For E.g. Boost is being endorsed by sport personalities like Sachin Tendulkar and Sehwag, Lux by Priyanka chopra, Vivel by kareena kapoor etc.

Internationally, Avon concentrates its promotional fund on personal selling, whereas Revlon spends heavily on advertising. Electrolux spends heavily on door-to-door sales forces, whereas Hoover relies more on advertising.

Step 6- Collecting feedback:

After sending the message, the communicator must find its effect on the target audience with the help of Dagmar (Defining advertising goals for measuring advertising results) which was given by Russell Colley in the year 1961. This involves asking the target audience members whether they remember the message, how many times they saw it, what points they recall, how they felt about the message, and the past and the present attitudes towards the product and the company. The communicator would also like to measure the behavior resulting from the message how many people bought a product, talk to others about it or visited the store.

Feedback on marketing communications may suggest changes in the promotion programme or in the product offer itself. For E.g. Indian Airlines uses television and newspaper advertising to inform area consumers about the airline, its routes and fares.

Factors In Setting The Marketing Communication Mix:

Companies must consider several factors in developing their communication mix. They are as follows:

1.    Type of Product Market: Communications mix allocations vary between consumers & markets. Consumer marketers tend to spend comparatively more on sales promotion & advertising; business marketers tend to spend comparatively more on personal selling. In general, personal selling is used more with complex, expensive & risky goods in markets with fewer & larger sellers (hence, business markets). Although advertising is used less than sales calls in business markets, it still plays a significant role. Advertising can perform the following functions in business market:

i.      Advertising can prove an introduction to the company & its products.

ii.      If the product has new features, advertising can explain them.

iii.      Reminder advertising is more economical than sales calls.

iv.      Advertisements offering brochures & carrying the company’s phone number are an effective way to generate leads for sales representatives.

v.      Sales representatives can use tear sheets of the company’s ads to legitimize their company & products.

vi.      Advertising can remind customers of how to use the product & reassure them about their purchase.

 

1. Push or Pull Strategy:

The promotional mix is heavily influenced by whether the company chooses the push or pulls strategy to create sales. Push strategy involves the manufacturer using sales force & trade promotion to induce intermediaries to carry, promote & sell the product to end users. Push strategy is especially appropriate where there is no brand loyalty in the category, brand choices made in the stores, the product is an impulse item, & the product benefits are well understood.

 

A pull strategy involves the manufacturer using advertising in consumer promotion in order to induce consumers who asks the intermediaries to order it. A pull strategy is appropriate when there is high brand loyalty & high involvement in the category, people pursue differences between brands & people choose the brand before they go to the shop. Companies in the same industry may differ in their emphasis on push or pull.

For instance: Procter & Gamble relies more on pull strategy whereas the Lever Brothers rely more on push strategy. Top marketing companies such as coca-cola, Intel and Nike skillfully employ both push and pull strategy.

PUSH vs. PULL

a) PUSH: Producer marketing activities to Retailers and Wholesalers who resell to Consumers. Personal selling, trade promotion by producer and personal selling, advertising and sales promotion by wholesaler/retailer.

b) PULL: Producer marketing activities directed at consumer to create demand from retailers and wholesalers that then creates demand from producer. Consumer advertising, sales promotion.

 

2. Buyer Readiness Stage:

Communication tools vary in cost effectiveness at different stages of buyer readiness. Advertising & publicity play the most important roles in the awareness building stage. Customer comprehension is primarily affected by advertising & personal selling. Customer conviction is influenced mostly by personal selling. Closing the sale is influenced mostly by personal selling & sales promotion. Reordering is also affected mostly by personal selling & sales promotion, & somewhat by reminder advertising.

3. Product Life Cycle Stage:

The promotional tools also vary in cost effectiveness at different stages of the product life cycle.

 

i.            In introduction stage, advertising and publicity have the highest cost effectiveness followed by personal selling in order to gain distribution coverage and sales promotion to induce trial.

ii.            At the growth stage all the tools can be toned down because demand has its own momentum through word of mouth.

iii.            In the maturity stage, sales promotion, advertising & personal selling all grow more important in that order.

iv.            In the decline stage, sales promotion continues strong, advertising & publicity are reduced & sales people give the product only minimal attention.

4. The Company’s Market Rank:

After implementing the promotional plan, the communicator must measure its impact on the target audience. Members of the target audience are asked whether they recognize or recall the message, how many times they saw it, what points they recall, how they felt about the message, & the previous & current attitudes towards the product & company. The communicator should also collect behavioral measures of audience response, such as how many people bought the product, liked it & talk to other about it.

Characteristics Integrated Marketing Communication

1.       Customers feel that all their brand experiences come from one identity.

2.       Customers trust the brand’s promises (and pass them on through word of mouth).

3.       The brand treats different kinds of customers in ways appropriate to them.

4.       Whenever appropriate, the brand recognizes individual customers wherever they interact or do business.

5.       Customers are happy with the brand experience.

6.       There is a service-oriented ideal that encourages aligned commitment across the organization.

7.       Everyone nurtures what the brand means to committed customers

8.       Future vision is consistent with core truths of the brand

9.       The values we experience in our company culture support the values we express in the Brand .

10.   The brand organisation is excellent at realizing high value propositions from idea to Implementation.

11.   Quality is understood as that which is good for the customer, employee(s) and company.

12.    (All business) Objectives are coherent with our [brand/company's] competence.

13.   There are no silos (across the organisation).

14.   Practices ensure shared learning across the organization.

15.   The organisation works in effective partnership with the members of its value stream.

16.   The culture encourages people to release their creative potential.

17.   Business processes are actively aligned to the brand value position.

18.   Quality customer information is available in a timely way at every point of need.

19.   Leaders promote what they practice.

20.   The Marketing function is organized primarily around customer groups with their different needs and opportunities, not marketing disciplines.

21.   Senior marketing people are skilled in multiple communication disciplines.

22.   Customer management focuses on the value of customers over their lifetime.

23.   All communication to all constituencies at all touch points uses the same planning and evaluation framework.

24.   The company and agencies all work together in partnership.

25.   Communication is creatively aligned through “big media neutral ideas”

26.   Evaluation is managed as a learning discipline across the participants.

27.   The key evaluation processes are primarily designed to increase knowledge about what most efficiently creates value for customers.

28.   Local and international marketing management collaborate effectively.

4P’s vs. 4C’s

i. Not PRODUCT, but CONSUMER: Understand what the consumer wants and needs. Times have changed and you can no longer sell whatever you can make. The product characteristics must now match what someone specifically wants to buy. And part of what the consumer is buying is the personal “buying experience.”

ii. Not PRICE, but COST: Understand the consumer’s cost to satisfy the want or need. The product price may be only one part of the consumer’s cost structure. Often it’s the cost of time to drive somewhere, the cost of conscience of what you eat, and the cost of guilt for not treating the kids.

iii. Not PLACE, but CONVENIENCE: As above, turn the standard logic around. Think convenience of the buying experience and then relate that to a delivery mechanism. Consider all possible definitions of “convenience” as it relates to satisfying the consumer’s wants and needs. Convenience may include aspects of the physical or virtual location, transaction service time and hours of availability.

iv. Not PROMOTION, but COMMUNICATION: Communicate, communicate, communicate. Many mediums working together to present a unified message with a feedback mechanism to make the communication two-way. And be sure to include an understanding of non-traditional mediums, such as word of mouth and how it can influence your position in the consumer’s mind.

Needs For Integrated Marketing Communications

Integrated marketing communication is the company carefully integrates and coordinates its many communication channels to deliver a clear, consistent, and compelling message about the organization and its brands. IMC builds a strong brand identity in the marketplace by tying together and reinforcing all your images and messages.

 

a.       Conflicting messages from different sources or promotional approaches can confuse company or brand images.

b.      The problem is particularly prevalent when functional specialists handle individual forms of marketing communications.

c.       The Web alone cannot be used to build brands; brand awareness potential is limited.

d.      Best bet is to wed traditional branding efforts with the interactivity and service capabilities of online communications.

Benefits of Integrated Marketing Communication

Research by the Centre for Integrated Marketing determined that the typical scale of benefit for marketers adopting Integrated Marketing was a 10 – 25% enhancement in business performance. This gain is achieved from a number of inter-related factors:

1.       Improvements in customer attitudes and behaviors arising from improved and more consistent experiences of brand value.

2.       Synergy and multiplier effects on profitability from improvements in customer attitudes and behaviors.

3.       More efficient (and effective) media choices and mixes as well as better deployment of communication disciplines.

4.       More flowing, efficient (and effective) business processes, creating higher added value.

5.       Substantially enhanced evaluation and improved applied learning across the brand organization.

6.       Improvements in staff morale, work rate, cohesion, stress and creativity.

7.       Reduced employee replacement costs, employee cost/benefit synergies and an enhanced employee cost/customer value ratio.

8.       Reduction in internal fragmentation and cost holes.

9.       More cost effective use of agencies and business partners with better team results.

10.   Cost effective synergies.

Although Integrated Marketing Communications requires a lot of effort it delivers many benefits. It can create competitive advantage, boost sales and profits, while saving money, time and stress.

IMC also increases profits through increased effectiveness. At its most basic level, a unified message has more impact than a disjointed myriad of messages. In a busy world, a consistent, consolidated and crystal clear message has a better chance of cutting through the ‘noise’ of over five hundred commercial messages which bombard customers each and every day.

Finally, IMC saves money as it eliminates duplication in areas such as graphics and photography since they can be shared and used in say, advertising, exhibitions and sales literature. Agency fees are reduced by using a single agency for all communications and even if there are several agencies, time is saved when meetings bring all the agencies together – for briefings, creative sessions, tactical or strategic planning. This reduces workload and subsequent stress levels – one of the many benefits of IMC.

Participants in the Integrated Marketing Communication Process

 

The different categories of participants are:

1. Advertiser or Client: They have the product, service or causes to be marketed and they provide the funds that pay for the advertising and promotions.

2. Advertising Agency: This is an outside firm that specializes in the creation, production, and/or placement of the communication message and that may provide other services to facilitate the marketing and promotions process. Many large advertisers retain the services of a number of agencies when they market a number of products.

3. Media Organizations: The primary function of media organizations is to provide information or entertainment to their subscribers, viewers or readers but from the point of view of the promotion planner, the purpose of the media is to provide an environment for the firm’s marketing communication programs.

4. Specialist Marketing Communication Specialist organizations are of different categories:

i.            Direct-response agencies.

ii.            Sales Promotion agencies.

iii.            Interactive Agencies.

iv.            Public Relation firms.

 

Importance of Integrated Marketing Communication

In today’s world when there is a trend towards old wine in a new bottle thinking many a people don’t take integrated marketing seriously. They simply consider it to bet yet another fad, here today gone tomorrow.
However, this is not the case. In fact, integrated marketing is an amalgamation of all the marketing roles, resources and responsibilities catering to all kinds of customers. These customers could be present or future, internal or external. The function of integrated marketing is to attract the customers through marketing, promotional and customer service activities. It is due to the far-reaching approach of integrated marketing that many companies consider it to be the smart option.
There are various models of marketing followed by different companies. Some companies have separate departments for advertising, public relations, marketing and sales, this is a very old model, where energies of different departments work at separate levels and may not be using all the resources to their optimum.

Integrated marketing helps the company to project a unified message and image of the company, and help to keep a strong brand image. Different divisions handling there own marketing activities will lead to sales people giving out a different a marketing message and the corporate department giving out another message. If this kind of situation is there in your company then you need to take corrective steps now – integrate the marketing activities of your company as soon as possible.

Reasons for the Growing Importance of Integrated Marketing Communication

Several shifts in the advertising and media industry have caused IMC to develop into a primary strategy for marketers:

1.       From media advertising to multiple forms of communication.

2.       From mass media to more specialized (niche) media, which are centered around specific target audiences.

3.       From a manufacturer-dominated market to a retailer-dominated, consumer-controlled market.

4.       From general-focus advertising and marketing to data-based marketing.

5.       From low agency accountability to greater agency accountability, particularly in advertising.

6.       From traditional compensation to performance-based compensation.

7.       From limited Internet access to 24/7 Internet availability and access to goods and services.

8.       Shift from media advertising to other forms of marketing communication

9.       Movement away from advertising focused- approaches that emphasize mass media.

10.    Shift in power from manufacturers to retailers.

11.    Rapid growth of database marketing and Internet.

12.    Demands for greater ad agency accountability.

13.    Changes in agency compensation.

Relationship to Integrated Marketing Communications

As a marketing strategy, Integrated Marketing is closely related to and inter-dependent with Integrated Marketing Communications (IMC). Indeed, many observers use the term integrated marketing when they probably mean integrated marketing communications. Whereas IMC aims to ensure consistency of message and the complementary use of media, integrated marketing is concerned with the alignment and focus of the whole organization.

Schultz and Kitchen (2000) identified four stages of IMC concluding with an integrated value-based model. According to this interpretation, as the organization becomes more committed to achieving consistency and differentiation across all customer contact points the business management challenge moves from marketing and marketing communication to the whole organization, requiring a cultural and systemic infrastructure for integration. This in turn calls on new practices and higher-order levels of organization management. For example, at this point IMC and CRM are effectively merged.

In some organizations such as FMCG/packaged goods brands (e.g. chocolate, baked beans), IMC needs little more than marketing communications integration. In others, such as organizations with a high level of service content (e.g. banks, automobile firms and their dealerships, and hotel chains), the challenge becomes much more difficult. It is in this latter case that integrated marketing is most important, providing the contextual platform for stage 4 IMC, implementation of which is also one of its goals.

Selecting The Most Effective Communication Elements

The goal of selecting the elements of proposed integrated marketing communications is to create a campaign that is effective and consistent across media platforms. Some marketers may want only ads with the greatest breadth of appeal: the executions that, when combined, provide the greatest number of attention-getting, branded, and motivational moments. Others may only want ads with the greatest depth of appeal: the ads with the greatest number of attention-getting, branded, and motivational points within each.

Although integrated marketing communications is more than just an advertising campaign, the bulk of marketing dollars is spent on the creation and distribution of advertisements. Hence, the bulk of the research budget is also spent on these elements of the campaign. Once the key marketing pieces have been tested, the researched elements can then be applied to other contact points: letterhead, packaging, logistics, customer service training, and more, to complete the IMC cycle.

Model for Integrated Marketing Communication

Integrated Marketing Communication is more than the coordination of a company’s outgoing message between different media and the consistency of the message throughout. It is an aggressive marketing plan that captures and uses an extensive amount of customer information in setting and tracking marketing strategy. Steps in an Integrated Marketing system are:

Customer Database: An essential element to implementing Integrated Marketing that helps to segment and analyze customer buying habits.
Strategies: Insight from analysis of customer data is used to shape marketing, sales, and communications strategies.
Tactics: Once the basic strategy is determined the appropriate marketing tactics can be specified which best targets the specific markets.
Evaluate Results: Customer responses and new information about buying habits are collected and analyzed to determine the effectiveness of the strategy and tactics.

The best marketing strategy in the world will ultimately fail if you are unable to get the right message to your potential customers at the right place and the right time. An integrated marketing communications plan matches your available budget of time and money to the most effective means for distributing your message. No matter how great your product or service, if your potential customers don’t know it exists, there will never be a sale.

Implementation of IMC

According to Jenkinson, Sain and Bishop, successful integrated marketing requires management of three business drivers:

1.      Identity, which is seen as the core strategic element of differentiated value.

2.      Development and alignment of organizational culture and mobilization all employees behind authentic identity and unique value, with lean, value-focused business processes and good resources. Shared learning is an important element of success.

3.      Integrated contact management (integrated communications, creating valuable experiences for customers).

 

Barriers to Integrated Marketing Communication

Despite its many benefits, Integrated Marketing Communications, or IMC, has many barriers. In addition to the usual resistance to change and the special problems of communicating with a wide variety of target audiences, there are many other obstacles which restrict IMC. These include: Functional Silos; Stifled Creativity; Time Scale Conflicts and a lack of Management know-how.

Take functional silos. Rigid organizational structures are infested with managers who protect both their budgets and their power base. But this kind of planning is not common. A survey in 1995 revealed that most managers lack expertise in IMC. But its not just managers, but also agencies. There is a proliferation of single discipline agencies. There appear to be very few people who have real experience of all the marketing communications disciplines. This lack of know how is then compounded by a lack of commitment.

Ideas Involved In IMC Approach

Despite the increasing use of the term IMC approach by both practitioners and academics in recent years, there is little agreement on what the term actually means. According to one recent review, at least two related ideas are involved:

The different elements of the communications mix have to be used in a way that the strengths of one are used to offset the weakness of another.

I.      One-voice Marketing Communications: As consumers increasingly being to be addressed by the same marketer in a variety of different ways (i.e. through 5 tools of promotion) – there is a need to ensure a consistency of positioning, message, and tone across these different media. These different communications must reach consumers with one voice.

II.      Integrated Communications: A marketer’s consumer communications need to not only raise brand awareness, or create or change brand preference and image, or to get sales trial or repurchase, but to do all of the above at the same time. Increasing image without getting a sales result is not good enough and getting short-term sales (e.g. via sales promotion) at the expense of a brand’s long-term image is also courting disaster. Thus, all marketing communications should attempt to simultaneously achieve targeted communication goals (e.g. raising attitudes or building image) and lead to some behavioral action (e.g. trial or repurchase).

 

Objective of the IMC approach

The objective of the IMC approach is to co-ordinate the company’s marketing and promotional activities to project a consistent and unified image to the marketplace. IMC is a way of looking at the whole marketing Process From the viewpoint of the receiver.

Integrated Marketing Communications is a simple concept. It ensures that all forms of communications and messages are carefully linked together. At its most basic level, Integrated Marketing Communications, or IMC, as we’ll call it, means integrating all the promotional tools, so that they work together in harmony.

 

Commitment Integrated Marketing Communication

 

Finally, in the most successful organizations, individuals bring their whole commitment. This comes from the sense of coherence and meaningfulness that binds people together in common purpose and in creative, learning engagement. At the extreme, it amounts to the difference between the alignment and productivity of the chain gang versus the alignment and productivity of an Olympic rowing team. In contrast to the all too common toxic organization, our research companies showed that coherence leads to the energetic qualities of a fit and healthy organism.

Evolution Of Integrated Marketing Communication

Integrated marketing communication (IMC) is a strategic-business process used to plan, develop, execute, and evaluate coordinated and measurable persuasive brand communication programs over time with consumers, customers, prospects, and other targeted, relevant external and internal audiences.

IMC grew out of the need for marketing organizations to move beyond functionally driven, internally focused approaches to marketing and communication. It attempts to shift focus from an “inside-out,” internal orientation to one that is “outside- in”. It employs a variety of traditional and nontraditional communication tools and methods to deliver messages to customers, prospects, and other important audiences, coordinating all activities to achieve consistency and synergy. However, IMC, as it has been practiced by leading organizations, does not end with coordinated message delivery. The ultimate goals of IMC are to institute customer-oriented sensibilities and business processes in all aspects of the organization and its operations to add value for customers, provide a framework for resource allocation, and achieve sustainable competitive advantages.

Integrated Marketing Campaigns 

Integrated Marketing Communication (IMC) is a concept of marketing that recognizes the added value of a comprehensive plan of a number of communication disciplines (for example, general advertising, direct response, sales promotion, and public relations) and combines these disciplines to provide clarity, consistency and maximum communication impact.

Current scenario: isolated marketing communication

Customers are bombarded with multiple advertisements through multiple mediums with multiple propositions. Since most companies resort to using more than one channel of communication, the customer is left confused due to lack of consistency in marketing messages.

Ideal scenario: integrated marketing communication

By practicing an integrated marketing approach, companies like yours can get across single proposition across multiple media and benefit from customers’ consistent brand experience. An integrated marketing approach can rejuvenate your organization’s marketing communication initiatives, which will experience a positive impact.

Mission of the Integrated Marketing Communication

From time to time, every community needs to take a look at the ideas that drive its enterprise. In our research so far, we have found that most senior marketers are looking for new ideas, particularly in the field of integration.

That is therefore the mission of the Centre for Integrated Marketing. Our brief is to produce rigorously researched, practical tools and insights for senior practitioner on both the agency and client side, and in particular the 500 leading UK brands and their agencies. It is fitting, therefore, that the Centre is part of Luton University, whose motto is Education that works. The effectiveness of the university’s own alignment and integration with this ideal is demonstrated by the fact that it is the most successful of all British universities in transforming students into people with jobs.

Integrated Marketing Communications (IMC): It Is Not Just Marketing Services Anymore.

There was a time when companies had secreted away in their annexes marketing services organizations that essentially acted as a go-between with the creative brain trusts at “The Advertising Agency.” The agency was a ones top shop for just about everything—especially advertising and media buying. Of course, time changes everything and so does the Internet.

The majority of consumer packaged goods (CPG) companies have traditionally focused solely on their customers. Now, traditional companies are also collaborating with online giants, such as Google and Yahoo!, as well as

Other media and direct marketing agencies to increase their market share.

Features:

i.                    Relevant case material covering a wide range of sectors & marketing scenario.

ii.                  Applied, real world example, including viewpoints from leading practitioners and academies.

iii.                Robust pedagogy in each chapter, including viewpoints, objectives, summaries, self review and discussion question, & end of book glossaries.

iv.                 Unprecedented all coverage of all elements of the marketing communications mix with covering internet marketing, international marketing communications, direct and database marketing, image and brand management and measuring integrated marketing communications.

Golden Rules for integrated marketing communication

Despite the many benefits of Integrated Marketing Communications (or IMC); there are also many barriers. Here’s how you can ensure you become integrated and stay integrated – 10 Golden Rules of Integration.

(1)     Get Senior Management Support for the initiative by ensuring they understand the benefits of IMC.

(2)     Integrate At Different Levels of management. Put ‘integration’ on the agenda for various types of management meetings – whether annual reviews or creative sessions. Horizontally – ensure that all managers, not just marketing managers understand the importance of a consistent message – whether on delivery trucks or product quality. Also ensure that Advertising, PR, Sales Promotions staff are integrating their messages. To do this you must have carefully planned internal communications, that is, good internal marketing.

(3)     Ensure the Design Manual or even a Brand Book is used to maintain common visual standards for the use of logos, typefaces, colors and so on.

(4)     Focus on a clear marketing communications strategy. Have crystal clear communications objectives; clear positioning statements. Link core values into every communication. Ensure all communications add value to (instead of dilute) the brand or organization. Exploit areas of sustainable competitive advantage.

(5)     Start with a Zero Budget. Start from scratch. Build a new communications plan. Specify what you need to do in order to achieve your objectives. In reality, the budget you get is often less than you ideally need, so you may have to priorities communications activities accordingly.

(6)     Think Customers First. Wrap communications around the customer’s buying process. Identify the stages they go through before, during and after a purchase. Select communication tools which are right for each stage. Develop a sequence of communications activities which help the customer to move easily through each stage.

(7)     Build Relationships and Brand Values. All communications should help to develop stronger and stronger relationships with customers. Ask how each communication tool helps to do this. Remember: customer retention is as important as customer acquisition.

(8)     Develop a Good Marketing Information System which defines who needs what information when. A customer database for example, can help the telesales, direct marketing and sales force. IMC can help to define, collect and share vital information.

(9)     Share Artwork and Other Media. Consider how, say, advertising imagery can be used in mail shots, exhibition stands, Christmas cards, news releases and web sites.

Integrated Marketing Communication In Global Arena

The concept of integrated marketing communications to international communications and develops a modified concept, globally integrated marketing communications. To define globally integrated marketing communications, three definitions of integrated marketing communications are considered and modifications are offered. The major extension provided by the new definition is a focus on the horizontal (across countries) dimension of marketing communications.

This merges the integrated marketing communications approach with the international marketing strategy and communications perspectives. Based on the derived definition and analysis of the standardized adaption issue in global communications, a contingency approach to globally integrated marketing communications is provided which incorporates both horizontal (across countries) and vertical (across promotion disciplines) factors that impact on global communications strategy decisions. Applications are developed and implications are drawn for managerially implementing globally integrated marketing communications and conducting further research and theory development.

CONCLUSION

Integrated Marketing is here to stay and to develop. The name might change, but the concept will not. It is a way of thinking and operating that enhances value for customers, employees and the organization and leads to the resolution of many of the current frustrations within the marketing industry. We aim to make a significant contribution and value the opportunity to work with you and others committed to developing best practice in this. Thank you for attending and I hope that you have been inspired to act on at least one idea, for everything comes from our ideas and what we do with them.

 

Communication is an act of involving transmission of information, ideas, and emotions by the use of verbal and non-verbal means of communication. A concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines and combines these disciplines to provide clarity, consistency and maximum communications impact.

 

 

Integrated Marketing is a comprehensive approach to internal and external organizational communication. In IMC general advertising, sales promotion, direct response provide clarity, consistency and maximum communication impact.

IMC is a concerned with the strategic coordination of all the messages and media used by an organization to influence the prospectus. In the IMC approach the different communication are in the form of arcs making up a 360- degree circle, at the center of which lies the customer.

IMC is concerned with the 4c’s and 4p’s i.e,.

1.       Not PROUCT But CONSUMER

2.       Not PRICE But COST

3.       Not PLACE But CONVENIENCE

4.       Not PROMOTION But COMMUNICATION

The heart of IMC lies in the FIVE POWER CONCEPTS that makes the communication efficient and effective i.e.,

1.       Consumer focus

2.       Customer empowerment

3.       Immersive marketing

4.       Brand resonance

5.       Emotional bonding

Lastly, “Integrated Marketing Communication” are like a band. The different communication instruments. Advertising, public relations, data base, marketing, media specialist, sponsorship, interactive, even marketing and the rest are just like the different musical instruments: piano, trumped, trombone, violin, clarinet, percussion and the rest. This analogy is neither as silly nor as simple as it sounds.

The corporate focus of integrated marketing must be on relationship marketing must be on relationships and on more audiences than just customers. Only in this way can an organization have a unified brand image and eliminate the fragmentation that can destroy its brand corporate reputation.

For companies that currently embrace IMC, the new economy mega trends translate into opportunities. Placing the customer and other key stakeholders at the center of your business strategy has never been more important. The highly competitive market place has made relationship building paramount in the quest for success. For companies who do not see IMC as vital, it is time to reconsider.

Responsive Supply Chain Management in Manufacturing Industry from HelpWithAssignment.com

Responsive Supply Chain Management in Manufacturing Industry from HelpWithAssignment.com

Responsive Supply Chain management in manufacturing industry is one of the aspects of emphasis.

In Supply Chain Management, we can see that supply chain managers are overwhelmed with a range of leading-edge supply chain strategies and new business initiatives. However, not all these initiatives and strategies are appropriate for all businesses. Supply chain managers need to understand the constraints of the supply of their products and the uncertainties with the right supply chain strategies.

In designing supply chain in an e-biz environment, companies have to integrate various aspects of competitive priority, the nature of the product and the complexity of the manufacturing process in order to be successful. When designing a supply chain, some fundamental principals of value chain should be exploited to respond quickly to the dynamic business environment. As such, supply chain design needs to be fine-tuned constantly to match the evolving industry paradigm.

When new product introductions are frequent and product variety is high, the responsive supply chain option is more attractive as it reacts quickly to market demand. When product life cycle is long, demand is relatively stable and demand volume is high, efficient supply chain is more appropriate. Both responsive supply chain and efficient supply chain can be applied to fast, medium and slow clock speed products.

A product clock speed can be fast, medium or slow. A product life cycle and its manufacturing process life cycle is associated wit the product clock speed.

Responsive supply chain in manufacturing industry

Responsive supply chain and fast clock speed product – personal computer

The PC industry is a fast clock speed industry. Here the industry faces short product life cycles. The product is generally made in a make-to-order production environment. Facing this business environment, PC producers adopt the responsive supply chain strategy to reduce order cycle, production cycle and procurement cycle. Let us consider Dell Computer as example.
Dell Computer designs, manufactures and markets a wide range of systems that include desktops, notebooks, workstations and network servers. Dell also markets software and peripherals as well as service and support programs.
It is centered on two key elements: a direct business model and intense customer focus, Dell strives to eliminate retailers and other resellers so as to reduce product delivery cycle time and cost. Dell sells computer systems and related services directly to customers in the global market through internet and call centers.
To reduce order cycle, Dell uses the internet and call centers to promote its direct order model. The traditional PC supply chain has distribution network as an additional link in the supply chain. Customers can order PCs directly from Dell and configure computers to meet their needs.
The orders are directly routed to the manufacturing floor. From there the PCs are built, tested and sent to the customers all within 5-7 business days after the customers placed the orders. Dell’s direct model allows for better understanding of customer needs.
To reduce its procurement cycle time, Dell shifts from a traditionally fashioned assembly line to cellular manufacturing techniques and established strategic alliances with its key suppliers.
It forges partnerships with reputable suppliers rather than integrating backward into parts and components manufacturing. Since new parts and components are introduced so fast that inventory is obsolete in a matter of months or even quicker. Dell only holds its inventory for not more than 10 days.
Meanwhile Dell supplies its inventory data and production needs to its suppliers at least once a day. Collaboration with suppliers is close enough to allow Dell to operate with only a few hours of inventory for some parts and a few days of inventory for other components. Dell’s direct model capitalizes the benefits of e-commerce.

The Top 10 Time Management Mistakes Costing Time and Productivity

As a leading time management expert, I’m often asked what are the top mistakes I see people make, so they can get an idea of where to start and how much these issues impact their own lives. Readers, clients and editors alike are often astounded by how quickly they can regain control and, too, just how far-reaching and damaging the effects of poor time and organizational management skills are. Companies lose billions in inflated overhead and lost sales annually, not to mention the astounding cost in medical care due to stress. Here are my top ten:

 

Being a slave to your mobile email system or cell phone: You know you have become a slave to your mobile email or cell phone when, almost every time it rings or buzzes, you jump and answer it. Cell phones and mobile email systems can be wonderful tools, but when YOU consciously control them (i.e. you decide when and how you will pick up and answer). Otherwise, they become a phenomenal time waster eating up to several hours each day! Daily Mastery clients, just by learning how to manage these tools, often reclaim a full hour of productive time every day.

 

Working by emergencies: Many clients finally call me for help because they feel overwhelmed by the constant “emergencies” they face in their work and home life. In other words, they have to take care of the things that scream at them the most, leaving less urgent tasks until finally they simply have to be addressed. they, in turn, become the new, pressing emergency. When taken care of before they become emergencies, most things require less time, energy and resources and turn out better, are more creative and even more profitable than they do as full-fledged emergencies.

 

Not sleeping enough: We often make the mistake of sleeping less so we can get more done. This is a crucial mistake because the fact is that sleep is critical to making the most of your time. When sleep-deprived, we think and do things more slowly, and are much more likely to make mistakes. Studies confirm that sleep deprivation affects us similarly to alcohol. We wouldn’t think of dirnking excessively right before our biggest client presentation, yet we don’t think twice about staying up until two or three in the morning to finish the presentation handouts.  The result the next morning is not much different, except that recovery from the hangover of lost sales, failed projects and the life can be much more difficult.

 

Not using an effective task list: In my years as time management expert, I’ve seen everything from no task list at all (“it’s all in my head”) to daunting lists 10 pages long. The sad reality is that most task lists don’t work because they are simply ineffective, and often what serves as a task list created more problems than it solves. On the other hand, an effective task list, adapted to your needs and style, is an extraordinarily powerful tool to save time and increase your productivity. Quick example: A client was faithfully creating a prioritized task list every day, only to set it aside within a couple of hours of the start of their work day. Unsurprisingly, crucial tasks were left undone until they became emergencies. After a simple re-tooling, their to-do list suddenly became their favorite tool to organize their day, made their productivity sky-rocket and even took less time than it did before.

 

Not looking at the big picture: No matter your occupation, it is very easy to get caught up in the “doing” of things, and consider “thinking time” a waste. Yet taking a step back on a regular basis to assess the big picture of your life, career, or current project, and then taking some time to plan your next steps accordingly, before diving back in the daily grind makes all the difference between being busy (i.e. doing a lot of things) and applying Daily Mastery, being effective (i.e doing the things that matter), even on a day-to-day basis.

 

Not taking time to relax: Sufficient sleep is necessary, but it’s not the same as relaxation or down time, which is just as essential to making the most of your time. Providing your mind with rest is just as important to effective time management. By not giving your brain breaks from work on a regular basis to do completely different things – engaging in fun activities that have nothing to do with work or obligations – you slowly lower your performance level, resulting in much lower productivity (hence more hours at work to achieve the same results) and sometimes ending in mental burn-out. 

 

Ignoring your personal time management style: Just as there is no one solution to weight loss and fitness management, there is no such thing as one-size-fits all in time management. The challenge is, most often a cookie-cutter system is all that’s available;  the different styles and the corresponding techniques are not widely taught. So you most likely learned your time management skills from books or programs that teach generic concepts. If the program works well for your personal style, you learned and improved your skills. But if the program didn’t take into account your flare for creativity, or the fact that you learn best when you hear the information rather than seeing it, no matter how much you tried, you never were able to effectively apply even the simplest techniques, and probably blamed yourself for it. Don’t. All you did was try to use for yourself a solutions that is not adapted to who you are. Learning your personal style will allow you to develop tools and strategies that actually work for you. One of the best tools to support success in any endeavor is personalized training. World-class athletes and business masters don’t waste their time generalizing. Getting the specific answers that you need to address your specific issues is one of the most effective time savers of all!

 

Reinventing the wheel: Ask any successful person; while they bring their own creativity to the table, they don’t waste time recreating something that’s already been done effectively. And once they have the effective skills, plans and techniques identified, they use them repeatedly rather than re-inventing the wheel each and every time. If you are like most people, you don’t take the time to sit down, think through a procedure for activities and tasks that you perform on a regular basis. As a result, every time you need to re-create the whole process, again and again. Taking a few extra minutes to think it through and create a written procedure or checklist can save you untold amounts of time: a client of mine, whose profession requires her to prepare events several times a month, reduced her event preparation time from an hour and a half to 20 minutes each time just by taking my advice and creating a checklist of everything she needed.

 

 

Not delegating enough: This is one of the most common, and most time-consuming time management mistakes I see – even in stay-at-home moms who think they have no one to delegate to. You have built your business on your own; or you have built a career based on your ability to get things done. You now have resources to delegate, but you still perform many tasks that would be more profitably and/or effectively done by others – or you feel that you just have no one to delegate to. As a result, you waste time on tasks such as filing, or packing, or drafting letters. You’re also wasting money in the process: if your hourly rate is 0/hour, it is the same whether you are in front of a client or filing your papers. By delegating tasks that can easily be done by others, you are freeing time for you to do more of the things that only you can do, and using your resources much more effectively.

 

No emergency planning: According to the National Fire Protection Association, in 2006 a building caught fire every 60 seconds or every day in America. In other words, none of us are immune to experiencing some kind of traumatic emergency sometime in our lives… Unfortunately most people don’t have a plan to deal with such an event, and will waste enormous amounts of time, money, stress and effort in trying to recover from it when they could have prepared in advance. When life’s smaller emergencies strike, it’s often the same: there is no set plan B, or even plan C, if their child falls sick the evening before an important meeting, or if they themselves fall sick right before a critical deadline at work. Having a backup plan, if possible in writing, allows you to immediately spring into action and deal with the emergency effectively and quickly, and then be able to move on without stress or unnecessary expenditures of time, money and energy.

 

So what’s your score? 10 out of 10 isn’t a winner in this case. It is, however, a terrific indication that you have the makings of a peacefully productive life… if you take the time to engage in Daily Mastery.

 

Ready to become a perfectly productive 10? Call or email me now to find out how you can employ your own Daily Mastery to end your own time management mistakes. 

E-Commerce Operational Risk Management Plan

E-Commerce Operational Risk Management Plan

E-Commerce Operational Risk Management Plan

 

OPERATIONAL RISK MANAGEMENT PLAN

Your Company recognizes that it faces a number of risks as it progresses through the various stages of its growth and implementation phases – in North America and other countries. These risks have been identified, quantified and anticipated.

 

6.1 Acquire Copyrights & Trademarks:

Copyrights and trademarks have to be filed with appropriate North American and Canadian authorities. The company’s principals will apply for copyrights and trademarks — trademark and copyright protection may already exist for various OEM products and services. This is coupled with proprietary codes that will be in place for all programs designed by your Company under license, to ensure authenticity, minimize trademark infringements and piracy.

The information technology and content management services, along with the proposed e-commerce solutions have quality control challenges. This is relative to the quality control of the proposed services, solutions and their integration in corresponding countries. Past experience of management, diversified range of consultants, strength of OEMs and corresponding technology team will support the success of maintaining the appropriate trademark and copyright protection.

 

6.2 Managed Growth:

Your Company’s senior management has a well established track record in effectively managing sales and production facilities to budget. Your Company may achieve its targets using a quarterly budget review process. This budget revision process may be used to address growth issues, when sales outperform plan. During the revision process, the latest ratio of sales order intake to content production capacity, will be compared to the previous quarter’s.

Despite the forecasted demand in your Company’s electronic catalogue products and e-commerce services, the company should continue to be managed to conservative performance goals, to ensure that growth does not exceed the company’s fiscal and human resources.

The company may continue to grow on certain areas being maintained adequately, namely:

• Your Company’ customized content management production and order processing system should be used and needs to be capable of processing multiple orders at any given time

• Production capacity has to be flexible enough to accommodate a significant increase in volume — using multiple distribution channels

• Expansion can be handled via licensing agreements and strategic partnerships

• Existing and proposed production facilities can be upgraded to accommodate part of the volume increase

• Multiple distribution channels can be set-up and running in a 6 month – 1 year time frame

• Local markets will constantly be monitored to assess potential volume fluctuations

 

6.3 Achieving Sales Targets:

Achieving certain minimum monthly sales goals is critical to the profitability and viability of the global operations. Your Company has to therefore, build a profitable business plan around a goal of defined sales within twelve months, while at the same time having a global organizational structure capable of supporting incremental volume in sales with ease. The Vice President, Sales traditionally monitors tracking of sales results. Plans should be in place to establish and upgrade your automated system to track sales and expenditures, to ensure they are within budget. Budget tracking system will also have to be developed.

Following the initial set-up and subsequent production phase, project revenue may be used to support the company’s growth. Lack of revenue may not allow operations to expand. Management may have to ensure that account executives have a compensation program in place. This will encourage all existing clients to be up sold on all of your Company’s core services. Budget failure therefore, could result if proper sales and marketing strategies are not implemented.

In the event of budget failure, your Company’s senior management traditionally should immediately get involved to drive the sales development. Budget losses may be carried forward and expenditures revised accordingly. Performance reports should be monitored regularly by sales management, and at least weekly by the principals. Sales tracking should be instantaneous — using your Company’s sales force automation’s software. Risk of sales target failure is minimized as a result of on-going sales training of the IT specialists, project consultants and account executives.

Your Company’s critical momentum may incorporate aggressive sales and marketing within core markets. Sales and marketing techniques will constantly have to be evaluated to ensure your Company is strategically positioned, relative to individual market needs and the competitive forces:

• Structure has to be versatile having multiple applications

• You have the flexibility to apply your information technology services and e-commerce solutions to different markets or industries

• Indirect sales channels, via licensing agreements will ensure the product sales cycle is extended, to rollout into different markets within select countries

• If a specific market fails to meet set expectations, your Company’s production capacity has to be flexible enough to allow your seals and marketing departments to pursue alternate client volume expectations

• Market exposure may be realized, as a result of the international exposure afforded by your Company’s strategic partners and the regional operation’s corporate customer base – i.e. industrial plants, manufacturers, etc.

 

6.4 Maintaining Competitive Advantage:

Your Company’s technology enhancement of proprietary licensed software and network solutions will ensure your proprietary information technology services, and e-commerce solutions maintain their competitive edge, throughout the products’ life cycle. In fact, the products’ life cycle may be extended using enhancements in technology.

Furthermore, licensing agreements will allow for prices to be reduced — maintaining relative gross margins — after a condensed amortization period. Revenue from the applications can be used to support those market sectors where competition is greater.

 

6.5 Maintaining Project Schedules:

As noted in subsections 6.2 and 6.3, management, employee and consultant compensation as well as bonuses may be tied directly to project schedules and completions. Performance criteria will have to be detailed within each employee and/or consulting contract. All service agreements will also have to be time sensitive and include penalties for failure to complete assigned tasks, within designated time frames.

A mechanism will also have to be in place to identify any project tasks and content production that are falling behind schedule. Management will have the ability to intervene and re-assign the project tasks and responsibilities, to other key personnel, to ensure delays are kept to a minimum.

 

6.6 Cost Control Measures:

In order to manage your global operations effectively, your Company will operate to a controlled budget prepared annually and revised quarterly. Cash flow should be managed monthly against previously authorized expenses. Main expenditures may be incurred only when funds are made available (e.g. from the holding company). The principals of the company naturally have a well-established track record in effectively managing major operations to budget. The will also ensure overall costs are controlled.

 

6.7 Customer Disputes:

Your Company should provide extensive on-line support to its clients. Customers should be able to have access to all customer service programs, via the Internet. The customer service department – traditionally consisting of customer service representatives well versed in various source languages – may be situated in your head offices. They should also be available to provide telephone assistance to existing clients. Specific customer service policies will have to be in place to ensure maximum customer satisfaction and in-house staff productivity. This will be coupled with clearly defined customer service policies, which will state specific warranties, terms and conditions – applicable by law within target countries.

Proper procedures will also have to be in place — as a corporate client and subsequently the end-user approves their information technology and e-commerce requirements prior to installation — thus minimizing production risks. Customer service procedures should constantly monitor strategic partner and individual client expectations, to ensure they are always satisfied and met. Your Company’s professional IT specialists, project consultants and account management team must be able to communicate any quality, or performance expectations not being fulfilled for the customer. Client as well as end-user feedback is meant to ensure that quality improvement and performance is constantly maintained.

Management should strive to solidify content management and product warranty terms, to extend the life of their customer relationship, on a case-by-case basis. Your Company’ software programmers and IT Specialists should also be responsible to oversee quality.

 

6.8 Using Leading-Edge & Interchangeable Technology:

Management has to be able to always ensure that the technology you are using is interchangeable. This will minimize the risk of any software, application, platform or component becoming obsolete. This would minimize affects.

Void of any licensing infringements, your Company’s policy should permit the use of multiple vendors simultaneously, and thus prevent your Company from becoming vendor dependent. Wherever possible, your Company’s hardware, software and electronic catalogues should also be designed with interchangeable components and technology! The technology may be interchangeable with the company’s hardware, software and content management specifications. Hardware, software and network architecture should also require that all technology components are interchangeable. The ability to substitute components will always be tested for suitability, and as a fail-safe measure.

 

6.9 Financial and Legal:

Your Company will maintain an insurance policy both as the holding company as well as the country-based operations, and subsequent regional-based subsidiaries. The objective is to protect the entire organization from lawsuits arising from its work in the electronic catalogue, content management, network solutions, software, hardware, computer component sales s well as its software development.

Quality assurance minimizes the risk of litigation, for your Company’s product lines. Your Company retains several firms, to handle your corporate as well as operational offices’ commercial, legal and financial matters.

Nonetheless, the following policies may protect the company from spurious litigation as well as legitimate errors:

1. Your Company should adopt a solid customer agreement and use specific product licensing, to minimize its potential exposure to serious disputes.

2. Your Company’s lawyers will have to ensure all supply agreements are fair and reasonable.

3. Contract terms and conditions will have to clearly outline the duration, limitations, conditions and disclaimers.

4. Payment terms will have to be clearly identified.

5. The Executive Vice President may personally oversee major negotiations with strategic partners and corporate accounts, including potential end-user disputes.

6. A detailed proposal and Request for Quotations (RFQ) submission process will also have to be in place.

7. Pricing policies, terms and conditions should also be established for all warranty and repair related services.

8. Your Company may offer its clients — on a fee basis — optional warranty plans that can cover equipment purchased.

 

6.10 OEM Equipment Quality:

Acting both as a licensee and as a reseller, your Company may have to adopt a quality control process to ensure all licensed software and resold OEM equipment is properly tested, and meets client specifications.

Faulty software programming and equipment should immediately be replaced or repaired, depending on the licensing agreements and the original equipment manufacturers’ (OEM) warranties. In addition, a database of software errors and faulty equipment should be maintained, to minimize the recurrence of installing improper software or using faulty computer equipment.

Your Company’s “Return to Manufacturer” form should always have to be filled out for all faulty equipment. The equipment should then be sent to the OEM and either replaced or fixed – depending on OEM warranties. IT specialists should also test all computer systems to diagnose any potential software failures and client initiated software errors. Client electronic catalogue-based errors may result in billing charges passed onto the client.

Your Company should also adopt a warranty program to cover the diagnosis of a client’s equipment. Nonwarranty clients may be charged an upfront fee, to discourage abuse of the Company’s customer support.

 

6.11 Standards Acceptance:

Your Company is an innovator that is constantly developing new standards for e-commerce applications for North America and other countries. You may be adopting and applying e-commerce technologies – currently used by government agencies and multinational corporations – and making them accessible to other enterprises in specific markets. In doing so, you will be applying leading standards in international e-commerce related transactions, electronic cataloguing and network applications.

Market research should be conducted on an on-going basis, to clearly define and validate that a customer base exists for your Company’s range of products and services. Various major research databases across continents should be accessed for their findings and research results. Collectively, they will substantiate your Company’s positioning and market opportunities.

 

© Dean Bouridis April, 2010

 

 

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INDUSTRIAL SAFETY AND QUALITY OF WORK LIFE

INDUSTRIAL SAFETY AND QUALITY OF WORK LIFE

*DR.SHANMUKHA RAO PADALA ** DR.N.V.S.SURYANARAYANA

 

Quality of work life (QWL) has its roots in scientific management advocated by F.W. Taylor way back in 1940′s. The mechanical approach or quantitative approach that scientific management assured gave way to the frustration of workers which led to human relations movement and later socio-technical movement which is the basis for today’s Quality of Work Life. Thus, the evaluation of the concept QWL was mainly in three phases- Scientific management, human relations movement and finally socio-technical movement. The socio-technical system advocates such an organizational design which ensures high quality of work life. Most of the organizations are interested in enhancing employee’s QWL and generally try to instill the feeling of security, equality, pride and prestige, among its employees. For this purpose procedures and policies are framed to make the work less routine and more rewarding for the employees. These procedures or policies provide autonomy, recognition, good working condition and conferring awards in appreciation of work done etc.

 

QWL dimensions are broadly divided into: Classical dimensions and   Contemporary dimensions. Classical dimensions include physical working conditions, employees’ welfare, employee assistance, job factors and financial factors whereas, Contemporary dimensions include collective bargaining, industrial safety and health, grievance redressal procedure, quality circles, work-life balance, workers’ participation in management etc. Industrial Safety is one of the contemporary factors, which influence the QWL of the employees.

 

          Industrial accidents cause disastrous damage to the life and property of the people.  The dawn of 20th Century ushered a new era in Industrial Safety.  The modern industrial safety movement was started in 1912 with the help of Co-operative Safety Congress.The National Safety Council was set up on 4th March 1966 in Mumbai at the initiative of the Union Ministry of Labour and Rehabilitation, Government of India to promote safety consciousness to prevent accidents and to conduct safety programmes.

 

          The Government of India extended top priority to industrial safety, particularly after the Bhopal Gas tragedy in Union Carbide Factory in 1985, where thousands of people lost their lives and lakhs of people turned disabled.  This situation compelled the Government to implement mandatory safety measures in every industrial undertaking.  The Workmen’s Compensation Act imposed a financial burden on Management for the workforce to be insured against injuries, disablements, deaths and diseases.  More sophisticated organizations, discovered that safety programmes were cost effective. The hidden costs of accidents are typically four times the direct and obvious costs. Federal Legislation and accompanying court decisions have added a “police and punish” approach in the form of surprise inspections and fines.

 

          Safety is defined as “Protection of physical health of people in the organisation and prevention of work related injuries and accidents.” The safety awareness programmes are very important to industrial employees. The safety rules need to be laid down and be enforced by every organization. Safety is primarily the responsibility of the management. This responsibility should rest on the shoulders of all cadres of management; such as plant managers, maintenance engineers, supervisors, foremen and safety managers.

 

          The accident represents a social loss of great magnitude in the form of pain, loss of earning capacity and disturbance to economic efficiency. Getting men to work safely is primary concern of employer to ensure safe performance. Prevention of accidents is an objective of every organization which requires no explanation. This is one area in which there is complete identity of employer-employee interests, the employee does not want to be injured and the employer does not want to incur the cost of injury.

 

          Safety measures prevent accidents and ensure regular flow of work. In turn, it helps, to increase not only the workers morale but also productivity of the organisation without fear unless otherwise safe working conditions are provided. The employer has primary responsibility to provide or arrange such type of environment. The main causes of accidents may be Human causes like: age, education, health condition, experience, psychological factors, social factors etc., or Technical Causes like, hazardous arrangement, defective equipment, poor house keeping etc., or Environment causes like, poor lighting and ventilation, congestion and over-crowding, humidity, long hours of work and high speed working machines.

 

      Two types of ratios are used to measure industrial safety i.e., Frequency rate and Severity rate. The frequency rate can be expressed as the lost-time due to accidents per million man-hours worked; the severity rate is the number of days lost due to accident per million man-hours worked. According to National Safety Council USA, prevention of accidents depends upon 3E’s –Engineering, Education and Enforcement. The job should be engineered for safety, employees should be educated in safety procedures and safety rules should be properly enforced.

 

OBJECTIVES OF THE STUDY:-
 
 The objectives of the study are:

 

1.      To know the contribution of safety measures for the improvement of employees’ quality in work life of Hindustan Zinc Limited.

 

2.      To examine the number of accidents in HZL, Visakhapatnam during the period under study.

 

3.      To study the employees’ opinion on working conditions, preventive suggestions given by safety officers and safety education programmes of the organization.

 

4.      To know the effectiveness of the present accident communication reporting system and suggest appropriate system.

 

METHODOLOGY:

 

          The study is based on both primary and secondary data. The secondary data is collected from organisation records, management reports and special project reports to understand the present state of industrial safety. Primary data is collected from the workers of the organisation with the help of questionnaire. There are 807 employees in HZL, Visakhapatnam, out of which 80 are in management cadre. The remaining 727 employees are grouped into nine categories based on the nature of work from which 115 employees are selected randomly.

 

SAFETY MEASURES IN HZL, VISAKHAPATNAM:

 

         Hindustan Zinc Limited (HZL) was established on 10th January 1966 as a public sector unit. Initially, the Sterilite Opportunities and Venture Limited (SOVL) running under the Vendanta Group of Company have only 26 percent of paid up capital; further 20 percent is brought from market through open offer and 18.92 percent from Government of India (GOI) under call option in 2003-04 according to disinvest policy system implemented by GOI in 2002. Now 64.92 percent of stake is going under the private control of SOVL. At initial stage the annual turnover was only Rs. 2 crores, whereas 2004-05 the annual turnover of the company around Rs 1841.5 crores. HZL, Visakhapatnam unit started its production in 1977. The total cost of the project was around Rs. 48.5 Crores. The Lead plant was expensed in 1984 with a cost of Rs.9 Crores. The products and installed capacity of the company are Zinc Ingots: 33,000 TPA, Cadmium Pencils: 115 TPA, Sulphuric Acid: 75,000 TPA and silver: 30 TPA.

 

          The company has recognized Human resource as the best asset, without developing human resources; the company cannot face the challenge in the changing global environment. An innovative employee learning concept, “Continuous Learning Environment” has been developed and implemented in HZL, Visakhapatnam. Vizag Zinc-Lead Smelter won National Award for Best HRD Practices for 2002-03 from Society for Training and Development. Depending upon the categories and department requirements, different training programs have been conducted by HZL.

 

          A separate corporate level safety department is set up at New Delhi to maintain safe working conditions at all units of the HZL by appointing a Senior Manager (Safety & Environment) to look after the safety environment at the corporate level. At the same time a separate safety department is set up to ensure the safety measures in HZL, Visakhapatnam. Unit heads and officers working under them are responsible for implementation and monitoring the safety policy at unit level. The safety objectives of HZL are:

 

·     To develop a culture conduct to safe working in the mines and smelters.
·     To improve working conditions and environment.
·     To propagate safety measures and create safety consciousness among the women, supervisors and officers.
·     To train workmen as well as supervisors in their respective field of operations.
·     To reduce the scope of accidents and to aim at accident free performance.
·     To adopt measures for improvement in Health Standards.
·     To ensure that there is no long-term effects on health due to smelters and industrial environment.
·     To ensure that all statutory provisions relating to the safety are followed.

 

To achieve the above objectives the organisation spends Rs.30 lakhs, annually, by following seven golden safety rules along with 5E’s for ensuring safety. The Seven Golden safety rules are:

1.      If a worker has seen any unsafe situation, which is likely to cause an accident, then it may be intimated to the supervisor, plant in-charge or manager (safety). The accident even of small nature may be intimated immediately.

 

2.      Keep once’s premises neat and clean. There are possibilities for accidents due to bad management of the house.

 

3.      Do not act hurriedly or in a careless way, which may cause accident for any other person.

 

4.      Observe prescribed rules inside the factory and keep it always clean and hurdleless.

 

5.      Wear the appropriate uniform and safety devices given to the employee at the work spot while he is working.

 

6.      Comply the instructions of concerned supervisor and plant in-charge while working at the work-spot and ask them for clarification if any doubt arises.

 

7.      Do not worry during emergency and act immediately carefully and on understanding the situation.

 

As regards the 5E’s, the job should be Engineered for safety, employees should be Educated in safe procedures, the seven golden rules should properly be Enforced, the accident prevention should be achieved only by Enthusiasm and the supervisors and foremen should be an Example to others in the implementing the safety rules.

 

Safe working conditions play a key role for prevention of accidents and maintaining safety environment. The employees’ opinion on the working conditions of HZL, Visakhapatnam is shown in Table.1. Majority of the respondents felt happy with regard to Illumination (84.35per cent), Ventilation and temperature (75.66 per cent), Sanitation (73.04 per cent), Machine Fencing (71.30 per cent) and Drinking Water (100 per cent). Thus it can be concluded that the overall working environment of HZL is praise-worthy.

 

The safety department provides necessary safety appliances to every employee. The employees’ opinion on quality of safety appliances provided by safety department is shown in Table.2. More than 90 respondents out of 115 accounting for 78.26 per cent stated that the quality of safety appliances except safety shoes is either good or satisfactory.

 

          The HZL, Visakhapatnam has conducted many Safety Education-Training Programmes in the organization to educate the employees and minimize the occurrence of accidents. The study revealed that the employees’ participation and their opinion on safety education training programmes. 83 respondents out of 115 (72.17 per cent) have participated in Safety Education Training Programmes. Out of 83 respondents, 66 employees (75 per cent) are of the view that the training programs are good and 67.47 per cent of employees are opinioned that these programmes are very much helpful to reduce the number of accidents.

 

          The essential condition for the efficient maintenance of safety in the organisation is frequent inspection by safety manager who is staffed with experience engineers. By adopting the constructive attitude, making plant visits and valuable suggestions, accidents can be reduced and improve the safe working conditions. Along with safety manager the HZL, management also assists in the fulfillment of its obligation concerning prevention of personal injuries and maintaining a safe working environment. The safety manager prepares a schedule for visit to each and every plant/department atleast twice in a week and gives utmost importance to large department/plant like Zinc Electrolysis & Melting plant, Mechanical Department etc., and to hazards nature plants like Roaster Acid plant, Leaching Purification plant, Electrical department, Laboratory etc.

 

The study highlighted that out of 115 employees 49.56 per cent have mentioned that the safety manager visits once in a week; 22.60 per cent of respondents said that he visits twice in a week; but 23.48 per cent are mentioned that he visits rarely. The main reason for dissatisfaction of respondents on safety manager visit is that more importance is given to large and hazardous nature of plants/departments than others and he visits between   8 A.M. and 5 P.M i.e., General shift time; it does not cover the all other three shifts. As and when he visits, the safety manager gives suggestions to plant/department managers, supervisors and workers safety measures. 66.95 per cent of respondents’ opinion that the safety manager suggestions are very much useful to prevent/reduce of accidents if they are implemented.

 

          In spite of the precautions taken by the safety department, still accidents have been occurring in HZL, Visakhapatnam. The HZL, Visakhapatnam has taken more time to achieve ‘Zero Accident’. The number of accidents occurred in HZL, Visakhapatnam over a period of last nine years is shown in Table.3. The occurrence of accidents is erratic and varied between 15 and 90 during the period under study. Even though there is a change the management from Public Sector to Private Sector the number of accident has not reduced appreciably. On the contrary, the number of accidents has increased gradually from 31 in 2006 to 34 in 2007.

 

Accident Communication Reporting System:

 

                             The primary purpose of an accident report is to reveal facts and figures pertaining to occurrence of an accident and not fix up or blame with any person. A report form may be considered effective only when it achieves objectives by furnishing information and promoting action. Due consideration should be given in the designing of the accident report form to achieve the following purpose.

1.  Report should contain necessary injury data to help safety engineer or the investigator to find out the causes of accident.

 

2.  Report should permit to classify the accident by type, agency, sub agency etc. and helps in assessing safety performance of the company.

 

3.  Report should carry necessary information for insurance company carrying the compensation risk.

 

4.  Report should furnish injury data to the Industrial Commissioner or the Labour Department for statistical purpose.

 

5.  Report should provide for information about the accident to factory inspector.

 

          Accident report form is essentially interrogative in character and with question ‘what had been going wrong?’ Covetously something is wrong otherwise no accident would have occurred. Report form very widely depending on the type of industry, nature of plant operations and usual environmental factors. The form should furnish facts and opinions all pertaining to conditions or activities leading to an accident. Irrespective of the type of accident or nature of operation, the form should provide adequate information regarding causes of accident as well as some clues for corrective action to be taken.

 

                      At the time of accident all of them must be concentrating to provide timely better treatment to the injured person. Time is most important factor; every one minute is also helpful to save the life of the injured person. For this purpose a good accident communicated reporting system is necessary. The Hindustan Zinc Limited designed an Accident Communication Reporting System is displacing in Chart No.1. But it has so many defectives and unnecessarily wastage of valuable time. According to the existing accident reporting system any accident occurred three employees are help to the injured person as well as communicate the information to other departments. First person inform to the department as well as hospital, then he care to the injured person. Second person communicate the information to their department and hospital along with the time office. Third person communicate to the concerned department and hospital at the time of accident, then after communicate to the concern department form the hospital from time to time. The department informs to the safety department; and the safety department in turn inform to the time office.

 

          The present accident communication reporting system is not given more importance to the safety rather than other departments. The following are the main defectives of the existing accident communication reporting system.

1.      This system not concentrates on first aid treatment. It is most important for save the life of the injured person.

 

2.      The existing system not properly communicate the information to the important departments, due to this reason unnecessarily wastage of valuable time.

 

3.      First aid report is most important for further immediate treatment in the hospital; but in this system first aid is not at all mentioned.

 

4.      For carryout the injured person to hospital/dispensary then must be required ambulance or vehicle; but it is not described in the reporting system.

 

5.      Next most important thing is to inform to the family members for morale support to the injured person; but there is no scope to inform to the family members according to this system.

 

6.      According to the existing system they are not inform to the HR department or GM office or the Top Management of the factory.

 

          In the above reasons the existing accident communication reporting system have many defectives, so it must be replaced immediately, unless other wise the injured persons either loose their life or disability or damage per cent is increased. Thus, a new accident communication reporting system is suggested to the organization (Chart No.2).

 

Accidents are usually the result of unsafe equipment and unsafe conditions. Due to a small reportable accident the organization incurs huge amount of loss directly or indirectly. It may be damage of machinery, temporary interruption to the production process; loss of labour working hours etc. An attempt is made in this study to find out the amount of loss the organization is incurring due to an accident and the information is presented in Table.4. As can be seen from the table the total loss to the organization on account of a single reportable accident varies from Rs. 23,968/- to Rs. 28,028/-.

 

CONCLUSION:

 

          To sum up the study revealed that the quality standards of safety appliances used in Hindustan Zinc Limited as perceived by the workers are satisfactory. As regard the number of accidents it is revealed that there is no perceptible reduction in the number of accidents through there is change in the management from Public Sector management to Private Sector management. The total loss to the organization due to occurrences of a small reportable accident is between Rs. 24, 000/- and Rs. 28, 000/- depending upon category of the workers. Finally a new model of accident communication reporting system is suggested in the study by which the total loss to organization as well as the victim can be minimized. Due to implementation of safety measures in Hindustan Zinc Limited, the QWL of the employees in terms of improvement in the working conditions, safety, social security, increasing the individual status will increase.

 

 

 

Reference:

1.   C.K. Podder, (1997) “Quality of work life- Key to vibrant organization”, Personal Today,   October-December, p.22-24.

 

2.  Ediwin B. Flippo (1984), “Personnel Management”, Sixth Edition; McGraw-Hill Book Company; p.515.

 

3.  Tripathi (1996), “Personnel Management & Industrial Relations”,  12th edition, Sulthan Chand & Sons; p.346.

 

4.  Gokakar (2001), “Safety, Accident and Working Conditions”   Kolhapur; p.129.

 

5.  H.W. Heinrich (1959), “Accident Prevention”, McGraw Hill Publishing House; p.66.

 

6.  C.B. Mamoria, (1989), “Personnel Management”; Seventh Edition; Himalaya Publishing House; p. 881.

 

7. Mirza S. Saiyadain (2004), “Human Resources Management”, Third Edition; Tata McGraw Hill Publishing Company; p.410.

 

8.  C.S. Venkata Ratnam and B. K. Srivastava (2004), “Personnel Management and Human Resources”; Tata McGraw Hill Publishind Company; p.214.

 

9.   Dr. C.B. Gupta (1999); ” Human Resource Management”, Fourth Edition; Sulthan Chand & Sons p.6.13.

 

10. Shanmukha Rao. P (2006), “Collective Bargaining System impact on Quality of Work Life: a Case study of Hindustan Zinc Limited”, Personnel Focus, July-September, p.1-7.

 

11. Gary Dessler (2004), “Human Resaource Management”, Ninth Edition, Pearson Education, p. 427-463.

 

12. Shanmukha Rao. P (2007), “Quality Circles for Quality of Work Life: A Case study on Visakhapatnam Steel Plant”, Raj Journal of Commerce, February, 2007, p. 25-28.

 

13. Manga M. L. and Maggu, (1981) “QWL: A Study of Public Sector in India ” ASCI, Journal of Management, Vol. 19, No. 2.

 

14. Devashish pujari, (1992) “Managing quality of work life: The key of success”, The Indian Journal of Commerce, Vol. XLV, Part-III, No.172, September 1992, P.93-102.

 

15. M.Ekramul Hoque and Alinoor Rahman, (1999) “Quality of working life and job behaviour of workers in Bangladesh – A comparative study of private and public sectors”; Indian Journal of Industrial Relation, vol.35; No.2, October 1999 P.175-183.

 

16. DR. J.Venkatachalam and DR. A.Velayudhan, (1999) “Impact of Advanced Technology on Quality of work life”; “Management & Labour Studies”, vol.24; No.4; October 1999.

 

 

 

 

 

 

 

TABLE No. 1

EMPLOYEES’ FEELING ON THE WORKING CONDITIONS

 

PARTICULARS

LEVEL OF SATISFACTION

 

TOTAL

Very Good

Good

Satisfactory

Unsatisfactory

Can’t Say

1. Illumination

10 (8.70)

19 (16.52)

68 (59.13)

13 (11.30)

5 (04.35)

115 (100)

2. Ventilation &     Temperature

6 (05.22)

27 (23.48)

54 (46.96)

18 (15.65)

10 (08.69)

115 (100)

3. Dust Fumes & Cleanliness

8 (06.96)

5 (04.34)

51 (44.35)

33 (28.70)

18 (15.65)

115 (100)

4. House Keeping

13 (11.30)

18 (15.66)

34 (29.56)

42 (36.52)

8 (06.96)

115 (100)

5. Sanitation

9 (07.83)

22 (19.13)

53 (46.08)

31 (26.96)

-

115 (100)

6. Machine Finishing Guard

7 (06.09)

18 (15.65)

57 (49.56)

28 (24.35)

5 (04.35)

115 (100)

7. Drinking Water

47 (40.87)

59 (51.30)

9 (07.83)

-

-

115 (100)

 

 

 

 

 

TABLE No. 2

QUALITY OF SAFETY APPLIANCES PROVIDED BY SAFETY SEPARTMENT

 

PARTICULARS

LEVEL OF SATISFACTION

 

TOTAL

Very Good

Good

Satisfactory

Unsatisfactory

Can’t Say

1. Safety Shoe

5 (4.35)

10(8.70)

34 (29.56)

46 (40.00)

20 (17.39)

115 (100)

2. Goggles

29 (25.22)

27 (23.48)

41 (35.65)

12 (10.43)

6 (5.22)

115 (100)

3. Helmets

11  (9.56)

29 (25.22)

57 (49.57)

7 (6.09)

11 (9.56)

115 (100)

4. Gloves

47 (40.87)

32 (27.83)

8 (6.96)

18 (15.65)

10 (8.69)

115 (100)

5. Safety Belt

10 (10.10)

47 (47.48)

23 (23.23)

4 (4.04)

15 (15.15)

99 (100)

6. Other Safety Equipment

27 (23.48)

33 (28.70)

34 (29.56)

21 (18.26)

-

115 (100)

 

 

 

 

 

TABLE No. 3

NUMBER OF ACCIDENTS IN HZL, VISAKHAPATNAM

YEAR

Fatal

Serious

Reportable

TOTAL

1999

1

-

48

49

2000

-

-

48

48

2001

-

-

76

76

2002

-

2

88

90

2003

-

1

47

48

2004

1

-

14

15

2005

3

2

19

24

2006

-

7

24

31

2007

-

5

29

34

 

 

 

 

 

 

 

 

 

 

 

 TABLE NO.4

TOTAL LOSS  DUE TO A SMALL REPORTABLE ACCIDENT- CATEGORY-WISE  (Amount in Rupees)

SL.NO

 

CATEGORY OF EMPLOYEES

I

II

III

IV

V

VI

VII

VIII

IX

1.

Half day work loss due to accident

144

149

155

160

165

169

177

200

214

2.

Ambulance charges for 15 K.M. @Rs.10/- per K.M.

150

150

150

150

150

150

150

150

150

3.

Loss of work due to Two workers assisting the person involved in accident*.

330

330

330

330

330

330

330

330

330

4.

Loss of man-hours due to discussion about Accident in the same dept.      2 Hrs X 20 workers*

1,645

1,645

1,645

1,645

1,645

1,645

1,645

1,645

1,645

5.

Workers discussion on accident on that day by other than the concerned department. 15 Min X 707=177 Hrs*

7,269

7,269

7,269

7,269

7,269

7,269

7,269

7,269

7,269

6.

Expenses on investigation for causes of accident

200

200

200

200

200

200

200

200

200

7.

One week work loss of person involved in accident.

2,009

2,086

2,163

2,240

2,303

2,359

2,478

2,793

2,989

8.

Loss of 7 days O.T.due to accident

4,018

4,172

4,326

4,480

4,606

4,718

4,956

5,586

5,978

9.

Expenses of Telephone, Telegram due to accident

50

50

50

50

50

50

50

50

50

10.

Loss of work due to answering the Government Officers on accident

500

500

500

500

500

500

500

500

500

11.

Safety manager and other managers expenses due to visit to the Hospital

500

500

500

500

500

500

500

500

500

12.

Hospitality and Medical charges

5,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

13.

Attending the duty but not fully recovered for 15days(1/2 of work loss)

2,153

2,235

2,318

2400

2,468

2,528

2,655

2,993

3,203

 

TOTAL

23,968

24,286

24,606

24,924

25,186

25,418

25,910

27,216

28,028

* Based on category V employees salary.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Perception of Master Data Management

The Perception of Master Data Management

The Perception of Master Data Management

Abstract

Master data management (MDM) is a comprehensive method of enabling an enterprise to link all of its critical data to one file, called a master file, which provides a common point of reference. When properly done, MDM streamlines data sharing among personnel and departments. In addition, MDM can facilitate computing in multiple system architectures, platforms and applications. The benefits of the MDM paradigm increase as the number and diversity of organizational departments, worker roles and computing applications expand. For this reason, MDM is more likely to be of value to large or complex enterprises than to small, medium-sized or simple ones. When companies merge, the implementation of MDM can minimize confusion and optimize the efficiency of the new, larger organization. For MDM to function at its best, all personnel and departments must be taught how data is to be formatted, stored and accessed. Frequent, coordinated updates to the master data file are also essential.

 

Introduction

Master data management (MDM) is meant to deliver a near real-time, hub-based and synchronized master record of information to any seat or point of view in the organization. Master records are created with data that is defined, integrated and reconciled from multiple systems (customer relationship management, financial, supply chain, marketing etc.) and classified by type (e.g. product master, customer master, location master etc.). MDM is often pursued by data type through programs that address Customer data integration (CDI) or product information management (PIM), though many observers believe true MDM requires reconciliation of all data types. Critical to MDM are the notions of data quality and matching, which technology tools can help to automate.

 

Master Data

 

Most software systems have lists of data that are shared and used by several of the applications that make up the system. For example, a typical ERP system as a minimum will have a Customer Master, an Item Master, and an Account Master. This master data is often one of the key assets of a company. It’s not unusual for a company to be acquired primarily for access to its Customer Master data.

 

Essential data types

There are essentially five types of data in corporations:

 

Unstructured—This is data found in e-mail, white papers like this, magazine articles, corporate intranet portals, product specifications, marketing collateral, and PDF files.
Transactional—This is data related to sales, deliveries, invoices, trouble tickets, claims, and other monetary and non-monetary interactions.
Metadata—This is data about other data and may reside in a formal repository or in various other forms such as XML documents, report definitions, column descriptions in a database, log files, connections, and configuration files.
Hierarchical—Hierarchical data stores the relationships between other data. It may be stored as part of an accounting system or separately as descriptions of real-world relationships, such as company organizational structures or product lines. Hierarchical data is sometimes considered a super MDM domain, because it is critical to understanding and sometimes discovering the relationships between master data.
Master—Master data are the critical nouns of a business and fall generally into four groupings: people, things, places, and concepts. Further categorizations within those groupings are called subject areas, domain areas, or entity types. For example, within people, there are customer, employee, and salesperson. Within things, there are product, part, store, and asset. Within concepts, there are things like contract, warrantee, and licenses. Finally, within places, there are office locations and geographic divisions. Some of these domain areas may be further divided. Customer may be further segmented, based on incentives and history. A company may have normal customers, as well as premiere and executive customers. Product may be further segmented by sector and industry. The requirements, life cycle, and CRUD cycle for a product in the Consumer Packaged Goods (CPG) sector is likely very different from those of the clothing industry. The granularity of domains is essentially determined by the magnitude of differences between the attributes of the entities within them

 

 

Life Cycle- CRUD cycle

Master data can be described by the way that it is created, read, updated, deleted, and searched. This life cycle is called the CRUD cycle.

Customer

Product

Asset

Employee

Create

Customer visit such as to Web site or facility; account

Product purchased or manufactured; SCM involvement

Unit acquired by opening a PO; approval process necessary

HR hires, numerous forms, orientation, benefits selection, asset allocations, office assignments

Read

Contextualized views based on credentials of viewer

Periodic inventory catalogues

Periodic reporting purposes, figuring depreciation, verification

Office access, reviews, insurance-claims, immigration

Update

Address, discounts, phone number, preferences, credit accounts

Packaging changes, raw materials changes

Packaging changes, raw materials changes

Immigration status, marriage status, level increase, raises, transfers

Destroy

Death, bankruptcy, liquidation, do-not-call.

Canceled, replaced, no longer available

Obsolete, sold, destroyed, stolen, scrapped

Termination, death

Search

CRM system, call-center system, contact-management system

ERP system, orders-processing system

GL tracking, asset DB management

HR LOB system

Data to be Managed
o       Behavior
o       Life Cycle
o       Cardinality
o       Lifetime
o       Complexity
o       Value
o       Volatility

 

MDM project plan

An MDM project plan will be influenced by requirements, priorities, resource availability, time frame, and the size of the problem. Most MDM projects include at least these phases,

 

· Identify sources of master data.
· Identify the producers and consumers of the master data
Collect and analyze metadata about for your master data
· Appoint data stewards
· Implement a data-governance program and data-governance council.
· Develop the master-data model
· Choose a toolset
· Design the infrastructure
· Generate and test the master data
· Modify the producing and consuming systems
· Implement the maintenance processes.

MDM is a complex process that can go on for a long time. Like most things in software, the key to success is to implement MDM incrementally, so that the business realizes a series of short-term benefits while the complete project is a long-term process. No MDM project can be successful without the support and participation of the business users. IT professionals do not have the domain knowledge to create and maintain high-quality master data. Any MDM project that does not include changes to the processes that create, maintain, and validate master data is likely to fail. The rest of this paper will cover the details of the technology and processes for creating and maintaining master data.

 

Creating a Master List

Whether you buy a tool or decide to roll your own, there are two basic steps to creating master data: clean and standardize the data, and match data from all the sources to consolidate duplicates. Before you can start cleaning and normalizing your data, you must understand the data model for the master data. As part of the modeling process, the contents of each attribute were defined, and a mapping was defined from each source system to the master-data model. This information is used to define the transformations necessary to clean your source data.

Cleaning the data and transforming it into the master data model is very similar to the Extract, Transform, and Load (ETL) processes used to populate a data warehouse. If you already have ETL tools and transformation defined, it might be easier just to modify these as required for the master data, instead of learning a new tool. Here are some typical data-cleansing functions:

Normalize data formats. Make all the phone numbers look the same, transform addresses (and so on) to a common format.
Replace missing values. Insert defaults, look up ZIP codes from the address, look up the Dun & Bradstreet number.
Standardize values. Convert all measurements to metric, convert prices to a common currency, change part numbers to an industry standard.
Map attributes. Parse the first name and last name out of a contact-name field, move Part# and partno to the PartNumber field.

 

Most tools will cleanse the data that they can, and put the rest into an error table for hand processing. Depending on how the matching tool works, the cleansed data will be put into a master table or a series of staging tables. As each source is cleansed, the output should be examined to ensure the cleansing process is working correctly.

 

Matching master-data records to eliminate duplicates is both the hardest and most important step in creating master data. False matches can actually lose data (two Acme Corporations become one, for example) and missed matches reduce the value of maintaining a common list. The matching accuracy of MDM tools is one of the most important purchase criteria. Some matches are pretty trivial to do. If you have Social Security numbers for all your customers, or if all your products use a common numbering scheme, a database JOIN will find most of the matches. This hardly ever happens in the real world, however, so matching algorithms are normally very complex and sophisticated. Customers can be matched on name, maiden name, nickname, address, phone number, credit-card number, and so on, while products are matched on name, description, part number, specifications, and price. The more attribute matches and the closer the match, the higher degree of confidence the MDM system has in the match. This confidence factor is computed for each match, and if it surpasses a threshold, the records match. The threshold is normally adjusted depending on the consequences of a false match. For example, you might specify that if the confidence level is over 95 percent, the records are merged automatically, and if the confidence is between 80 percent and 95 percent, a data steward should approve the match before they are merged.

 

Most merge tools merge one set of input into the master list, so the best procedure is to start the list with the data in which you have the most confidence, and then merge the other sources in one at a time. If you have a lot of data and a lot of problems with it, this process can take a long time. You might want to start with the data from which you expect to get the most benefit having consolidated; run a pilot project with that data, to ensure your processes work and you are seeing the business benefits you expect; and then start adding other sources, as time and resources permit. This approach means your project will take longer and possibly cost more, but the risk is lower. This approach also lets you start with a few organizations and add more as the project demonstrates success, instead of trying to get everybody on board from the start.

 

Another factor to consider when merging your source data into the master list is privacy. When customers become part of the customer master, their information might be visible to any of the applications that have access to the customer master. If the customer data was obtained under a privacy policy that limited its use to a particular application, you might not be able to merge it into the customer master. You might want to add a lawyer to your MDM planning team.

 

At this point, if your goal was to produce a list of master data, you are done. Print it out or burn it to a CD, and move on. If you want your master data to stay current as data is added and changed, you will have to develop infrastructure and processes to manage the master data over time. The next section provides some options on how to do just that.

 

Master data management best practices

When considering a new discipline like master data management (MDM), it’s only natural to seek out people who have been there and done that.

 

But MDM best practices are still emerging and it’s not easy to get organizations to talk about their MDM experiences. Kalido Inc., a Burlington, Mass.-based MDM technology vendor, admits that it has a hard time getting customers to talk to the press.

 

All this secrecy around successful MDM programs doesn’t help companies looking for best practices, which is partly why Kalido sponsored a customer audit and MDM best practices study by San Mateo, Calif.-based analyst firm Ventana Research. Its researchers examined the best practices of five anonymous Kalido customers to reach their conclusions. The Ventana study, an experienced consultant, and a European telecom maker finally shed some light on the best (and worst) practices for MDM success.

 

1. Get business involved — or in charge.

 

“MDM has to be driven by business needs, otherwise it may turn out to be just another database that must be synchronized with all the other ones,” said David Loshin, president of Knowledge Integrity Inc., a Silver Spring, Md.-based consultancy that provides an MDM strategy development service and has worked on enterprise-scale initiatives.

 

Similarly, the Ventana study found that businesspeople, rather than IT, should drive the process. Support ranging from C-level executives to senior managers to business end users was critical for success, Ventana found. It’s often hard to motivate an organization to get behind the dry prospect of MDM, but early enterprise-wide support is important in the long run, users said. If key corporate goals are tied to the project through a solid business case, it should be a straightforward task to demonstrate benefits and generate excitement.

 

2. Allow ample time for evaluation and planning.

 

Plan at least three months for evaluation, talk to reference customers, and do a proof-of-value project with samples of real company data, Kalido users told Ventana researchers. Don’t underestimate the time and expertise needed to develop foundational data models, users said.

 

“It’s more complex than people realize — and that requires starting early and using real data for planning,” said David Waddington, a Ventana vice president and research director who worked on the study.

 

IT’s cooperation was an area of concern, as some companies have experienced delays in projects waiting for permission and access rights, Ventana found.

 

3. Have a big vision, but take small steps.

 

Consider the ultimate goal, but limit the scope of the initial deployment, users told Ventana. Once MDM is working in one place, extend it step by step, they advised. Business processes, rather than technology, are often the mitigating factor, they said, so it’s important to get end-user input early in the process.

 

“If you’re just interested in getting consistent customer data, it’s very important to do that against the bigger background of ‘how am I going to manage all of my master data longer term?’” Waddington explained. “Then you don’t end up in the situation [of] having to link together a whole lot of different solutions.”

 

4. Consider potential performance problems.

 

Performance is the 800-pound gorilla quietly lurking in the MDM discussion, Loshin cautioned.

 

Different architectures can mean different performance penalties. For example, if a company uses the master hub style of MDM, record creation flows through a single point, which can become a bottleneck. Also, with many applications relying on MDM, the workflow, system priorities and order of operations become critical issues to consider up front. How companies solve this potential performance problem varies, Loshin said, because it’s inherently related to their unique architectures.

 

5. Institute data governance policies and processes.

 

Allow time and money for people and process change management, and don’t underestimate the size of the job, experts agreed. Swedish telecom equipment maker Ericsson learned that the politics of data governance can be quite difficult, according to Roderick Hall, senior project manager. Long before deploying SAP MDM, the Stockholm-based company instituted a master data group to manage critical data assets. It’s a “shared services” group that provides services to both IT and business. The group started as part of the finance department, but the function changed with the realization that master data management was a company-wide concern, Hall said. Their job isn’t always easy.

 

Although some departments, such as finance, saw the value of centralizing master data management, Hall said, other groups were reluctant to give up data ownership.

 

“To get acceptance of the fact that people have got to give up the freedom to correct their own master data to some faceless group in Stockholm [where the master data group is located] has been a pretty hard battle,” Hall said.

 

6. Carefully plan deployment.

 

MDM is still relatively new, so training of business and technical people is more important than ever, Ventana found. Using untrained or semi-trained systems integrators and outsourcing attempts caused major problems and project delays for MDM users, Waddington said.

 

Then, there’s the prospect of rolling out a program that has an impact on many critical processes and systems — no trivial concern. Loshin recommended that companies should plan an MDM transition strategy that allows for static and dynamic data synchronization.

 

“Trying to adjust the underlying infrastructure without affecting day-to-day operations can be as challenging as fixing potholes in the highway without disrupting traffic,” Loshin said.

MDM Architecture

There are three basic styles of architecture used for MDM hubs: the registry, the repository, and the hybrid approach. The hybrid approach is really a continuum of approaches between the two extremes of registry and repository.

 

While master data management solutions may take many forms, most of them share similar architecture. This architecture is what allows for the accurate, consistent management of data and data processes by maintaining a structured environment under which MDM tools can operate. At the core of these systems is the MDM hub, a database in which master data is cleaned, collected and stored. MDM solutions may use multiple hubs to govern different sets of data, such as product information, customer data and site data, and each hub generally utilizes one of three common models: transaction/repository, registry, or hybrid.

 

In a transaction/repository-style hub, all relevant data is stored and accessed from a single database, and the database must contain all of the information needed by the different applications which access it. All data is consolidated and centralized, and published to the individual data sources after it has been linked and matched. This style of hub allows for a single source of data to be created, minimizing duplication by making it easier to detect as data is collected and cleaned. However, the transaction/repository style has drawbacks as well. Existing applications may have to be modified to use the master data, and in some cases this is not possible. Different applications and services which serve as an interim interface between the MDM software and the data-dependent applications may be needed and this can add to costs. Also, data models need to be complex enough to include all relevant information for the applications that utilize them, but not so large that they become overly large.

 

Registry style hubs, in contrast, do not store master data in the hub, but rather master data is maintained within native application databases. The hub instead stores lists of keys with which to access all relevant attributes for a specific master data entity, linking these attributes between application databases. The registry style hub allows for applications to remain fairly intact as all data is managed within native databases. However, when requests are made to access master data, data must be located, a query must be distributed between numerous databases, then a list of the requested data must be formed all in real time, and as the number of source databases grows, this can become increasingly inefficient. In addition, duplicate data entities can reside on different databases, or even within the same database, and while consolidation and cleaning of individual databases would be ideal, it is not always practical. Another disadvantage is that when new databases are to be included in the hub registry, new keys must be added to the existing tables, which may also require altering how queries are generated.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 1. MDM hub architecture

 

Hybrid style hubs utilize methods from both transaction/repository and registry style hubs, and try to address some of the issues present in each. Since it may not be practical to update existing applications or to send inefficient, massive queries across several databases, the hybrid system combines some of the advantages present in the other models by leaving master data on the native databases, generating keys and IDs to access this data, but replicating some of its important attributes to the hub. When queries are made, the hub can service the more common requests, and queries only need to be distributed for the less-used attributes, which results in a more efficient process. While the hybrid style combines advantages of both of its parent models, it has its own disadvantages. Since it stores replicated data from outlying databases, it may run into updating issues, and, like the transaction/repository style, deciding which attributes to store, naming to be used and format to store them in can create problems.

 

Conclusion

The heterogeneous (and proprietory) nature of MDM’s components and modules makes training and prototyping the first priority for an IT shop that has just embarked on a MDM implementation. DBAs, System Administrators and Basis professionals should look very closely at MDM for opportunities to implement best practices learned on other application suites. Solution Architects, Developers and Data Modelers should attempt to apply and scale their existing SDLC discipline for design, development, documentation and production-support, to MDM.

 

References:

 

[1]   http://searchsap.techtarget.com

[2]   msdn.microsoft.com

[3]   masterdatamanagementblog.com/mdm-architecture

[4]   Master Data Management, By Loshin, 16 Sep 2008,Elsevier

[5]   Master Data Management and Customer Data Integration for a Global Enterprise by Alex Berson-The MK/OMG Press

[6]   Data Quality Articles Journal

default The Perception of Master Data Management

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PLM behind the scenes: must product life-cycle management (PLM) systems be up front and center? No. But by being there it can add assistance for collaboration … article from: Automotive Design & Production

 PLM behind the scenes: must product life cycle management (PLM) systems be up front and center? No. But by being there it can add assistance for collaboration ... article from: Automotive Design & Production

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What Agile processes can do to develop better products

What Agile processes can do to develop better products

Agile processes highlight real time communication

By their nature, Agile processes are collaborative- they work well only when there is high degree of involvement between users and developers. The process assumes time boxes that result in frequent intermediary deliverables that users review and provide feedback on.

The advantage of this approach is that all users are almost fully informed of what they will get at the end of the exercise, and there are no surprises. At the same

time, they also need to commit time and effort to join in the reviews and give relevant feedback.

Agile processes speed up time

Given that Agile methods allow requirements to change all through the process, it is natural to assume that Agile methods lead to longer life cycles. However, statistics show that agile product life cycle management result in quickened product development. As users are involved through the life cycle, the chances of a late discovery of the outcome not matching expectations are low. Also, it gives a chance for users to review and change the overall scope at every intermediary step. Besides, users buy in to the product and feel that they “co-own” the product – which is important for a successful outcome. Second, given the method of prioritizing needs and agile’s focus on “working code”, users get a feel of the software far earlier than they would with a traditional sequential method. In fact, what may even happen at times is that users prune the requirements and shave off features that look superfluous and unnecessary as they go along. This is something they can do if and only if they begin to use the product – it is almost impossible to envisage up-front. Besides, as traditional methods do not allow for frequent changes, users may load the requirements with features and functionality which may be mostly “nice to have”. Therefore, the product that is an outcome of an Agile methodology would be more relevant and produced faster as the development method paves the way for a feedback process that sharpens the product definition along the way.

Agile methods are cost-effective

We are always led to believe that good planning and execution always leads to more efficient outcomes. True in many real life scenarios, but not with software.

The challenge with Medical device software development is that users may come up with requests all the time. In a process that does not cater to this behavior, the cost of

effecting changes becomes high. As discussed earlier, traditional methods sometimes

lead to large-scale rework, costs, as well as time escalation leading to the common refrain that X % of software projects do not adhere to their original budgets. In contrast, Agile methods underscore frequent deliverables, and give an opportunity not just for requirement changes, but even for paring down requirements based on real need, rather than “expected need”.

 

 

 

www.lcsplm.com How do you go about implementing a Product Lifecycle Management (PLM) System. Mark J. Silvestri, CEO, Principal Consultant of Life Cycle Solutions, Inc. explains.

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