RESEARCH AND CRITIQUE Essay Example | Topics and Well Written Essays - 1750 words

RESEARCH AND CRITIQUE - Essay Example In managing a system such as this, the primary side of the IT infrastructure is through the use of the barcode system as it is used to create orders. Fortunately, the technology is readily available, so easily gained that any person can go out on the internet and create a bar code for this type of use. In using a virtual store environment to increase sales and diversify locations without the investment of stock, the management of such a system is minimally necessary and highly dependent on the available external systems of bar code creation and reading. IT Management The good news with creating a bar code system for a virtual outlet concept is that the costs are low and the management of the system is primarily concerned with the calculation of orders and the distribution of product. The application that is used for the system is a free download from a variety of resources for the consumer and the creation of bar codes can be done by anyone who has accessed to the internet and to a s ystem that allows for the complete functionality required. Horizontal service level agreements are created when a company uses an external resource for creating an integral part of their IT business model infrastructure. The problem that can come from a horizontal service agreement is that the service will be limited by the terms of the agreement and collaborative structures may not always be part of the agreed upon items that an external resource is willing to address (Beulan, Ribbers, and Roos. 2011). A company like Tesco uses internal resources in order to handle this side of the process. In creating a system in which sales and order calculations are integrated with inventory and distribution, the company is able to control their system and devote full attention to the issues that arise. On the other hand, a vertical agreement is made for application management. The service is offered on a per application basis is concerned with the whole process and is a much more amenable type of agreement (Beulan, Ribbers, and Roos. 2011). The nature of the agreements are made through this type of encompassing responsibility because an application will not work if the whole process is not attended, thus in this way, the external resources are using the same sort of theory that Tesco has designed, which is an internally controlled system that will work or will be worked on until it does work. This is good business as an application has no value if it does not work. In managing the IT infrastructure for a e-business model concept, a great number of pitfalls can occur. According to Sparrow (2003) the smartest way to manage IT infrastructure is to outsource the management of IT elements selectively. The management of specific parts of an IT system can be sold to different providers. Academic research has shown that the most successful businesses will have selective outsourcing strategies. Tactical outsourcing occurs when specific problems are beyond the capacity of internal resources to manage. Strategic sourcing occurs when a company looks for a designed package of resources from which to outsource their needs, creating the highest level of product for the lowest possible cost by using different sources for different aspects of the structure (Sparrow 2003). In sourcing is, however, almost universal as most businesses will retain some of their IT management in house. It is not always the most reasonable