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A PLS Path Modeling Approach on the Cause-and-Effect Relationships among BSC Critical Success Factors for IT Organizations (PLS 경로모형을 이용한 IT 조직의 BSC 성공요인간의 인과관계 분석)

  • Lee, Jung-Hoon;Shin, Taek-Soo;Lim, Jong-Ho
    • Asia pacific journal of information systems
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    • v.17 no.4
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    • pp.207-228
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    • 2007
  • Measuring Information Technology(IT) organizations' activities have been limited to mainly measure financial indicators for a long time. However, according to the multifarious functions of Information System, a number of researches have been done for the new trends on measurement methodologies that come with financial measurement as well as new measurement methods. Especially, the researches on IT Balanced Scorecard(BSC), concept from BSC measuring IT activities have been done as well in recent years. BSC provides more advantages than only integration of non-financial measures in a performance measurement system. The core of BSC rests on the cause-and-effect relationships between measures to allow prediction of value chain performance measures to allow prediction of value chain performance measures, communication, and realization of the corporate strategy and incentive controlled actions. More recently, BSC proponents have focused on the need to tie measures together into a causal chain of performance, and to test the validity of these hypothesized effects to guide the development of strategy. Kaplan and Norton[2001] argue that one of the primary benefits of the balanced scorecard is its use in gauging the success of strategy. Norreklit[2000] insist that the cause-and-effect chain is central to the balanced scorecard. The cause-and-effect chain is also central to the IT BSC. However, prior researches on relationship between information system and enterprise strategies as well as connection between various IT performance measurement indicators are not so much studied. Ittner et al.[2003] report that 77% of all surveyed companies with an implemented BSC place no or only little interest on soundly modeled cause-and-effect relationships despite of the importance of cause-and-effect chains as an integral part of BSC. This shortcoming can be explained with one theoretical and one practical reason[Blumenberg and Hinz, 2006]. From a theoretical point of view, causalities within the BSC method and their application are only vaguely described by Kaplan and Norton. From a practical consideration, modeling corporate causalities is a complex task due to tedious data acquisition and following reliability maintenance. However, cause-and effect relationships are an essential part of BSCs because they differentiate performance measurement systems like BSCs from simple key performance indicator(KPI) lists. KPI lists present an ad-hoc collection of measures to managers but do not allow for a comprehensive view on corporate performance. Instead, performance measurement system like BSCs tries to model the relationships of the underlying value chain in cause-and-effect relationships. Therefore, to overcome the deficiencies of causal modeling in IT BSC, sound and robust causal modeling approaches are required in theory as well as in practice for offering a solution. The propose of this study is to suggest critical success factors(CSFs) and KPIs for measuring performance for IT organizations and empirically validate the casual relationships between those CSFs. For this purpose, we define four perspectives of BSC for IT organizations according to Van Grembergen's study[2000] as follows. The Future Orientation perspective represents the human and technology resources needed by IT to deliver its services. The Operational Excellence perspective represents the IT processes employed to develop and deliver the applications. The User Orientation perspective represents the user evaluation of IT. The Business Contribution perspective captures the business value of the IT investments. Each of these perspectives has to be translated into corresponding metrics and measures that assess the current situations. This study suggests 12 CSFs for IT BSC based on the previous IT BSC's studies and COBIT 4.1. These CSFs consist of 51 KPIs. We defines the cause-and-effect relationships among BSC CSFs for IT Organizations as follows. The Future Orientation perspective will have positive effects on the Operational Excellence perspective. Then the Operational Excellence perspective will have positive effects on the User Orientation perspective. Finally, the User Orientation perspective will have positive effects on the Business Contribution perspective. This research tests the validity of these hypothesized casual effects and the sub-hypothesized causal relationships. For the purpose, we used the Partial Least Squares approach to Structural Equation Modeling(or PLS Path Modeling) for analyzing multiple IT BSC CSFs. The PLS path modeling has special abilities that make it more appropriate than other techniques, such as multiple regression and LISREL, when analyzing small sample sizes. Recently the use of PLS path modeling has been gaining interests and use among IS researchers in recent years because of its ability to model latent constructs under conditions of nonormality and with small to medium sample sizes(Chin et al., 2003). The empirical results of our study using PLS path modeling show that the casual effects in IT BSC significantly exist partially in our hypotheses.

Development and Research for the Professional Brand of TV Broadcasting Program -By focusing the actually proved study for news program brand- (TV 방송 프로그램의 전문 브랜드 개발 연구 -뉴스 프로그램 브랜드의 실증연구를 중심으로-)

  • Jeong, Bong-Keum;Chang, Dong-Ryun
    • Archives of design research
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    • v.18 no.1 s.59
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    • pp.39-48
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    • 2005
  • In the age of digital culture, TV broadcasting is exercising more influence as a information and communication medium compared to past. With the appearance of satellite broadcasting service in 2002, the broadcasting environment became a diversified field of local TV, cable TV, satellite, internet, etc. and created the time of multi-media and multi-channel. This ongoing change of broadcasting environment made the passive audience of the past, active image makers and new accepters, participants and users of communications, who know how to choose and use media as the active centerpiece, The active acceptor as the centerpiece of channel selections has become the center of the broadcasting, whereby they pick up and enjoy their favorite TV programs and came to remember the list of their favorite channels and zap them finally. In this point of spotting their favorite channels and improving the degree of recognition for the channels, the development of the noticeable brand for a particular program has made a great contribution. The aim of this study, therefore, is to recognize the factors, which are important in the habits of watching TV and to develop professional brands for TV broadcasting programs. The range of the survey for this study was home news programs and broadcasting stations abroad, which were on air from March to May in 2004. The focus of the survey was universal and professional news programs. Through this study, it was ascertained that, in the case of news, developing a brand for an anchor as well as for a professional brand of TV program could be an important element.

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Cloning and Transcription Analysis of Sporulation Gene (spo5) in Schizosaccharomyces pombe (Schizosaccharomyces bombe 포자형성 유전자(spo5)의 Cloning 및 전사조절)

  • 김동주
    • The Korean Journal of Food And Nutrition
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    • v.15 no.2
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    • pp.112-118
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    • 2002
  • Sporulation in the fission yeast Schizosaccharomyces pombe has been regarded as an important model of cellular development and differentiation. S. pombe cells proliferate by mitosis and binary fission on growth medium. Deprivation of nutrients especially nitrogen sources, causes the cessation of mitosis and initiates sexual reproduction by matting between two sexually compatible cell types. Meiosis is then followed in a diploid cell in the absence of nitrogen source. DNA fragment complemented with the mutations of sporulation gene was isolated from the S. pombe gene library constructed in the vector, pDB 248' and designated as pDB(spo5)1. We futher analyzed six recombinant plasmids, pDB(spo5)2, pDB(spo5)3, pDB(spo5)4, pDB(spo5)5, pDB (spo5)6, pDB(spo5)7 and found each of these plasmids is able to rescue the spo5-2, spo5-3, spo5-4, spo5-5, spo5-6, spo5-7 mutations, respectively. Mapping of the integrated plasmid into the homologous site of the S. pombe chromosomes demonstrated that pDB(spo5)1, and pDB(spu5)Rl contained the spo5 gene. Transcripts of spo5 gene were analyzed by Northern hybridization. Two transcripts of 3.2 kb and 2.5kb were detected with 5kb Hind Ⅲ fragment containing a part of the spo5 gene as a probe. The small mRNA(2.5kb) appeared only when a wild-type strain was cultured in the absence of nitrogen source in which condition the large mRNA (3.2kb) was produced constitutively. Appearance of a 2.5kb spo5-mRNA depends upon the function of the meil, mei2 and mei3 genes.

A Study on the Stereotype of ICT SMEs' R&D: Empirical Evidence from Korea (ICT 중소기업 R&D의 스테레오타입에 대한 연구 : 한국의 사례를 중심으로)

  • Jun, Seung-pyo;Choi, San;Jung, JaeOong
    • Journal of Korea Technology Innovation Society
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    • v.20 no.2
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    • pp.334-367
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    • 2017
  • The ICT industry has been the main driver of Korea's economy with international competitiveness and is expected to be the growth engine that will revitalize the currently depressed economy. A broad range of different perspectives and opinions on the industry exist in Korea and overseas. Some of these are stereotypes, not all of which are based on objective evidence. Stereotypes refer to widely-held fixed opinions on a specific group and do not necessarily have negative connotations. However, they should not be viewed lightly because they can substantially affect decision-making process. In this regard, this study sought to review the stereotypes of ICT industry and identify objective and relative stereotypes. In the study, a decision-tree analysis was conducted on a survey result of 3,300 small and medium-sized enterprises (SMEs) in order to identify Korean ICT companies' characteristics that distinguish them from other technology companies. The decision-tree analysis, a data mining process based on machine learning, took a total of 291 variables into account in 10 subjects such as: corporate business in general, technology development activities as well as organization and people in technology development. Identifying the variables that distinguish ICT companies from other technology companies with the decision-tree analysis, the study then came up with a list of objective stereotypes of ICT companies. The findings from the stereotypes of Korean ICT companies are as follows. First, the companies are in need of technology policies that help R&D planning and market penetration. Second, policies must better support the companies working to sell new products or explore new business. Third, the companies need policies that support secure protection of development outcomes and proper management of IP rights. Fourth, the administrative procedures related to governmental support for ICT companies' R&D projects must be simplified. It is hoped that the outcome of this study will provide meaningful guidance in establishment, implementation and evaluation of technology policies for ICT SMEs, particularly to policymakers or researchers in relevant government agencies who determine R&D policies for ICT SMEs.

Status of Agrometeorological Information and Dissemination Networks (농업기상 정보 및 배분 네트워크 현황)

  • Jagtap, Shrikant;Li, Chunqiang
    • Korean Journal of Agricultural and Forest Meteorology
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    • v.6 no.2
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    • pp.71-84
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    • 2004
  • There is a growing demand for agrometeorological information that end-users can use and not just interesting information. lo achieve this, each region/community needs to develop and provide localized climate and weather information for growers. Additionally, provide tools to help local users interpret climate forecasts issued by the National Weather Service in the country. Real time information should be provided for farmers, including some basic data. An ideal agrometeorological information system includes several components: an efficient data measuring and collection system; a modern telecommunication system; a standard data management processing and analysis system; and an advanced technological information dissemination system. While it is conventional wisdom that, Internet is and will play a major role in the delivery and dissemination of agrometeorological information, there are large gaps between the "information rich" and the "information poor" countries. Rural communities represent the "last mile of connectivity". For some time to come, TV broadcast, radio, phone, newspaper and fax will be used in many countries for communication. The differences in achieving this among countries arise from the human and financial resources available to implement this information and the methods of information dissemination. These differences must be considered in designing any information dissemination system. Experience shows that easy across to information more tailored to user needs would substantially increase use of climate information. Opportunities remain unexplored for applications of geographical information systems and remote sensing in agro meteorology.e sensing in agro meteorology.

Toward a Social Sciences Methodology for Electronic Survey Research on the Internet or Personal Computer check (사회과학 연구에 있어 인터넷 및 상업용 통신망을 이용한 전자설문 조사방법의 활용)

  • Hong Yong-Gee;Lee Hong-Gee;Chae Su-Kyung
    • Management & Information Systems Review
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    • v.3
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    • pp.287-316
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    • 1999
  • Cyberspace permits us to more beyond traditional face-to-face, mail and telephone surveys, yet still to examine basic issues regarding the quality of data collection: sampling, questionnaire design, survey distribution, means of response, and database creation. This article address each of these issues by contrasting and comparing traditional survey methods(Paper-and-Pencil) with Internet or Personal Computer networks-mediated (Screen-and-Keyboard) survey methods also introduces researchers to this revolutionary and innovative tool and outlines a variety of practical methods for using the Internet or Personal Computer Networks. The revolution in telecommunications technology has fostered the rapid growth of the Internet all over the world. The Internet is a massive global network and comprising many national and international networks of interconnected computers. The Internet or Personal Computer Networks could be the comprehensive interactive tool that will facilitate the development of the skills. The Internet or Personal Computer Networks provides a virtual frontier to expand our access to information and to increase our knowledge and understanding of public opinion, political behavior, social trends and lifestyles through survey research. Comparable to other technological advancements, the Internet or Personal Computer Networks presents opportunities that will impact significantly on the process and quality of survey research now and in the twenty-first century. There are trade-offs between traditional and the Internet or Personal Computer Networks survey. The Internet or Personal Computer Networks is an important channel for obtaining information for target participants. The cost savings in time, efforts, and material were substantial. The use of the Internet or Personal Computer Networks survey tool will increase the quality of research environment. There are several limitations to the Internet or Personal Computer Network survey approach. It requires the researcher to be familiar with Internet navigation and E-mail, it is essential for this process. The use of Listserv and Newsgroup result in a biased sample of the population of corporate trainers. However, it is this group that participates in technology and is in the fore front of shaping the new organizations of interest, and therefore it consists of appropriate participants. If this survey method becomes popular and is too frequently used, potential respondents may become as annoyed with E-mail as the sometimes are with mail survey and junk mail. Being a member of the Listserv of Newsgroup may moderate that reaction. There is a need to determine efficient, effective ways for the researcher to strip identifiers from E-mail, so that respondents remain anonymous, while simultaneously blocking a respondent from responding to a particular survey instrument more than once. The optimum process would be on that is initiated by the researcher : simple, fast and inexpensive to administer and has credibility with respondents. This would protect the legitimacy of the sample and anonymity. Creating attractive Internet or Personal Computer Networks survey formats that build on the strengths of standardized structures but also capitalize on the dynamic and interactive capability of the medium. Without such innovations in survey design, it is difficult to imagine why potential survey respondents would use their time to answer questions. More must be done to create diverse and exciting ways of building an credibility between respondents and researchers on the Internet or Personal Computer Networks. We believe that the future of much exciting research is based in the Electronic survey research. The ability to communicate across distance, time, and national boundaries offers great possibilities for studying the ways in which technology and technological discourse are shaped. used, and disseminated ; the many recent doctoral dissertations that treat some aspect of electronic survey research testify to the increase focus on the Internet or Personal Computer Networks. Thus, scholars should begin a serious conversation about the methodological issues of conducting research In cyberspace. Of all the disciplines, Internet or Personal Computer Networks, emphasis on the relationship between technology and human communication, should take the lead in considering research in the cyberspace.

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A Need Assessment on Establishment of Oriental Health Promotion Center (한방건강증진센터 설립에 대한 인식 및 요구조사)

  • Lee, Hyang-Yeon;Kim, Kwuy-Bun;Cho, Kyoul-Ja;Shin, Hye-Sook;Kim, Kwang-Joo;Moon, Heui-Ja;Park, Shin-Ae;Kim, Yoon-Hee;Kang, Hyun-Sook
    • Journal of East-West Nursing Research
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    • v.5 no.1
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    • pp.90-101
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    • 2000
  • The study attempts to examine the degree of cognition and demand on health promotion center of oriental nursing. It puts unique nursing intervention using traditional health promotion connected with oriental medicine to practical use for residents' health promotion and prevention of disease. With the study design of cross-sectional descriptive study, 516 residents who live in 26 Dongs, Dongdaemoon-gu were selected. The tool of study consists of 30 questions which the study team made for the degree of cognition and demand on health promotion center of oriental nursing. Cronbach's $\alpha$ in the degree of cognition was .8028. Collection of research data had been done from October 1 to October 30, 1999 with help of Dongdaemoon-gu office after pretest from 20 residents. Collected data were analyzed into the number and percentage in the characteristic of a subject and connected with demand on the establishment of center, the mean and the standard deviation in the degree of cognition and F-tests in the difference of the degree of cognition by characteristics. The results were as follow; 1) The characteristic of subject of this study was male 50.6%, and average age was 38.5 years old and 30-39 years old occupied the highest percentage with 31.6%. The married were 71.8%, over high school graduates was 85.6%, monthly income from 500 thousand won to 2 million won was 86.1%. 50.8% was the type living with parents, children and sibling. 2) When they were sick, the institution which residents used at first was a pharmacy(69.2%) and hospital(27.5%), but oriental medicine hospital was just 1.4%. As for subjective health condition, 82.5% answered over average, and 28.7% answered that they had chronic illness such as arthritis, chronic digestion problem, hypertension and so on. As for information collection on health, mass communication(34.9%) and medically concerned people(28.1%) occupied relatively high rate. Free health diagnosis system(36.8%) and establishment of health promotion center(31.5%) among welfare programs that residents want to enjoy were high ranked. The rate using a special institution for health was 17.8%, and among these institutions, the rate using aerobic exercises, health center(7.0%) and steamed room(5.4%) was high. Besides, other institutions such as breathing at the abdomen, finger-pressure therapy, meridian massage, foot massage, and so on were being used. 3) As the average of the degree of cognition on health promotion center of oriental medicine was 2.92, the degree of cognition was medium. The description, "health promotion center of oriental medicine is necessary for health keeping of healthy people, including people who have a problem in health" showed the highest degree of cognition(3.04, ${\pm}0.64$). 4) As for the intention on using health promotion center of oriental nursing, 61.4% said "yes", "no" was just 1.4%. The services that people relatively high wanted to be served from the center were measures reducing stress(68.0%) (relaxation therapy, meditation, breathing at the abdomen and so on), acupuncture(66.5%), finger-pressure(61.6%), moxibustion(57.6%), meridian massage(44.2%), postpartum care(40.3%) and so on. 5) As for the degree of cognition on the establishment of health promotion center of oriental nursing by characteristics of subject, there was significant difference(F=4.03, p=.046) between male(3.01) and female(2.91). But there was no significant difference by age, marital status, level of educational achievement and monthly income. As the above result, cognition on the establishment of health promotion center of oriental nursing was relatively low because people were not familiar with about the health promotion center of oriental nursing yet. However once the center will be established, the degree of demand on the center will be relatively high. So positive advertisement will be necessary, and the management of useful programs will be also required in order to make people recognize the advantage when they actually will use the center. On the other hand, as the subject of the study consists of many young people of below 30, the health problem came to be low. And in the case of sampling, the study using random sampling that can represent population will be required.

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The Effects of Virtual Reality Advertisement on Consumer's Intention to Purchase: Focused on Rational and Emotional Responses (가상현실(Virtual Reality) 광고가 소비자 구매의도에 미치는 영향: 이성적인 반응과 감성적인 반응의 통합)

  • Cha, Jae-Yol;Im, Kun-Shin
    • Asia pacific journal of information systems
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    • v.19 no.4
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    • pp.101-124
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    • 2009
  • According to Wikipedia, virtual reality (VR) is defined as a technology that allows a user to interact with a computer-simulated environment. Due to a rapid growth in information technology (IT), the cost of virtual reality has been decreasing while the utility of virtual reality advertisements has dramatically increased. Nevertheless, only a few studies have investigated the effects of virtual reality advertisement on consumer behaviors. Therefore, the objective of this study is to empirically examine the effects of virtual reality advertisement. Compared to traditional online advertisements, virtual reality advertisement enables consumers to experience products realistically over the Internet by providing high media richness, interactivity, and telepresence (Suh and Lee, 2005). Advertisements with high media richness facilitate consumers' understanding of advertised products by providing them with a large amount and a high variety of information on the products. Interactivity also provides consumers with a high level of control over the computer-simulated environment in terms of their abilities to adjust the information according to their individual interests and concerns and to be active rather than passive in their engagement with the information (Pimentel and Teixera, 1994). Through high media richness and interactivity, virtual reality advertisements can generate compelling feelings of "telepresence" (Suh and Lee, 2005). Telepresence is a sense of being there in an environment by means of a communication medium (Steuer, 1992). Virtual reality advertisements enable consumers to create a perceptual illusion of being present and highly engaged in a simulated environment, while they are in reality physically present in another place (Biocca, 1997). Based on the characteristics of virtual reality advertisements, a research model has been proposed to explain consumer responses to the virtual reality advertisements. The proposed model includes two dimensions of consumer responses. One dimension is consumers' rational response, which is based on the Information Processing Theory. Based on the Information Processing Theory, product knowledge and perceived risk are selected as antecedents of intention to purchase. The other dimension is emotional response of consumers, which is based on the Attitude-Structure Theory. Based on the Attitude-Structure Theory, arousal, flow, and positive affect are selected as antecedents of intention to purchase. Because it has been criticized to have investigated only one of the two dimensions of consumer response in prior studies, our research model has been built so as to incorporate both dimensions. Based on the Attitude-Structure Theory, we hypothesized the path of consumers' emotional responses to a virtual reality advertisement: (H1) Arousal by the virtual reality advertisement increases flow; (H2) Flow increases positive affect; and (H3) Positive affect increases intension to purchase. In addition, we hypothesized the path of consumers' rational responses to the virtual reality advertisement based on the Information Processing Theory: (H4) Increased product knowledge through the virtual reality advertisement decreases perceived risk; and (H5) Perceived risk decreases intension to purchase. Based on literature of flow, we additionally hypothesized the relationship between flow and product knowledge: (H6) Flow increases product knowledge. To test the hypotheses, we conducted a free simulation experiment [Fromkin and Streufert, 1976] with 300 people. Subjects were asked to use the virtual reality advertisement of a cellular phone on the Internet and then answer questions about the variables. To check whether subjects fully experienced the virtual reality advertisement, they were asked to answer a quiz about the virtual reality advertisement itself. Responses of 26 subjects were dropped because of their incomplete answers. Responses of 274 subjects were used to test the hypotheses. It was found that all of six hypotheses are accepted. In addition, we found that consumers' emotional response has stronger impact on their intention to purchase than their rational response does. This study sheds much light into practical implications for both IS researchers and managers. First of all, while most of previous research has analyzed only one of the customers' rational and emotional responses, we theoretically incorporated and empirically examined both of the two sides. Second, we empirically showed that mediators such as arousal, flow, positive affect, product knowledge, and perceived risk play an important role between virtual reality advertisement and customer's intention to purchase. In addition, the findings of this study can provide a basis of practical strategies for managers. It was found that consumers' emotional response is stronger than their rational response. This result indicates that advertisements using virtual reality should focus on the emotional side, and that virtual reality can be served as an appropriate advertisement tool for fancy products that require their online advertisements to give an impetus to customers' emotion. Finally, even if this study examined the effects of virtual reality advertisement of cellular phone, its findings could be applied to other products that are suited for virtual experience. However, this research has some limitations. We were unable to control different kinds of consumers and different attributes of products on consumers' intention to purchase. It is, therefore, deemed important for future research to control the consumer and product types for more reliable results. In addition to the consumer and product attributes, other variables could affect consumers' intention to purchase. Thus, the future research needs to find ways t control other variables.

A study of SCM strategic plan: Focusing on the case of LG electronics (공급사슬 관리 구축전략에 관한 연구: LG전자 사례 중심으로)

  • Lee, Gi-Wan;Lee, Sang-Youn
    • Journal of Distribution Science
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    • v.9 no.3
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    • pp.83-94
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    • 2011
  • Most domestic companies, with the exclusion of major firms, are reluctant to implement a supply chain management (SCM) network into their operations. Most small- and medium-sized enterprises are not even aware of SCM. Due to the inherent total-systems efficiency of SCM, it coordinates domestic manufacturers, subcontractors, distributors, and physical distributors and cuts down on cost of inventory control, as well as demand management. Furthermore, a lack of SCM causes a decrease in competitiveness for domestic companies. The reason lies in the fundamentality of SCM, which is the characteristic of information sharing, process innovation throughout SCM, and the vast range of problems the SCM management tool is able to address. This study suggests the contemplation and reformation of the current SCM situation by analyzing the SCM strategic plan, discourses and logical discussions on the topic, and a successful case for adapting SCM; hence, the study plans to productively "process" SCM. First, it is necessary to contemplate the theoretical background of SCM before discussing how to successfully process SCM. I will describe the concept and background of SCM in Chapter 2, with a definition of SCM, types of SCM promotional activities, fields of SCM, necessity of applying SCM, and the effects of SCM. All of the defects in currently processing SCM will be introduced in Chapter 3. Discussion items include the following: the Bullwhip Effect; the breakdown in supply chain and sales networks due to e-business; the issue that even though the key to a successful SCM is cooperation between the production and distribution company, during the process of SCM, the companies, many times, put their profits first, resulting in a possible defect in demands estimation. Furthermore, the problems of processing SCM in a domestic distribution-production company concern Information Technology; for example, the new system introduced to the company is not compatible with the pre-existing document architecture. Second, for effective management, distribution and production companies should cooperate and enhance their partnership in the aspect of the corporation; however, in reality, this seldom occurs. Third, in the aspect of the work process, introducing SCM could provoke corporations during the integration of the distribution-production process. Fourth, to increase the achievement of the SCM strategy process, they need to set up a cross-functional team; however, many times, business partners lack the cooperation and business-information sharing tools necessary to effect the transition to SCM. Chapter 4 will address an SCM strategic plan and a case study of LG Electronics. The purpose of the strategic plan, strategic plans for types of business, adopting SCM in a distribution company, and the global supply chain process of LG Electronics will be introduced. The conclusion of the study is located in Chapter 5, which addresses the issue of the fierce competition that companies currently face in the global market environment and their increased investment in SCM, in order to better cope with short product life cycle and high customer expectations. The SCM management system has evolved through the adaptation of improved information, communication, and transportation technologies; now, it demands the utilization of various strategic resources. The introduction of SCM provides benefits to the management of a network of interconnected businesses by securing customer loyalty with cost and time savings, derived through the consolidation of many distribution systems; additionally, SCM helps enterprises form a wide range of marketing strategies. Thus, we could conclude that not only the distributors but all types of businesses should adopt the systems approach to supply chain strategies. SCM deals with the basic stream of distribution and increases the value of a company by replacing physical distribution with information. By the company obtaining and sharing ready information, it is able to create customer satisfaction at the end point of delivery to the consumer.

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Channel Innovation through Online Transaction processing System in Floral Wholesale Distribution: FLOMARKET Case (화훼도매 온라인 거래처리 시스템을 통한 유통경로 개선방안 연구: (주)플로마켓 사례)

  • Lee, Seungchang;Ahn, Sunghyuck
    • Journal of Distribution Science
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    • v.8 no.1
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    • pp.21-33
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    • 2010
  • The ICT(information & communication technology) led to a dramatic change of floral distribution service, a phase of competition between wholesales and retail stores, and distribution channels in floral industry. It was expected that a role of the intermediaries in this industry would have reduced due to the improvement of transaction process by ICT. However, the ICT made to overcome a regional limit of the floral retail distribution service leading to an increase in sales and enlargement of the stores. And even it made possible to bring out another type of intermediaries such as private associations. This case study focuses on what kinds of efforts the floral wholesale distributors have made to enable a distribution process more smoothly between the wholesale distributors and retail stores through the information system, and what the failure factors in adopting the information system have been. This paper is also to examine how the wholesale distributors have changed themselves to gain dominant positions in distribution channels. As a result of the study, it was found that the intermediaries mostly failed in successfully achieving the distribution channel innovation through the information system because of several main reasons. FLOMARKET Inc. tried to innovate a distribution channel to obtain high quality goods through consolidating a wholesale distribution market in that segregated both floral joint market from free markets. after implementing the information system with consideration of the failure factors, FLOMARKET Inc. was able to minimize goods in stock and make a major purchase of various goods. In addition, it made a possible pre-ordering process and an exact calculation of purchasing goods so they could provide their products with market price in real time, which helped for the company to gain credits from their customers. Also, FLOMARKET Inc. established the information system which well suited to its business stage in order to deal with a rapidly changing distribution environment. It's so obvious that the transaction processing system of FLOMARKET Inc. definitely helped to share information among traders more seamlessly and smoothly in realtime, standardize goods, and make a transaction process clearer. Besides, the transaction information helped the wholesale distributors and retail stores to make more strategic decisions in their business because through the system they enabled to gather the marketing intelligence information more easily and convenient. If we understand that the floral distribution market is characterized by the low IT- based industry, it's worth to examine a case study proving that the information system actually increases the productivity of the transaction process in the floral industry.

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