Establishing a continuing business model innovation process Essay

Establishing a continuing business model innovation process - Essay Example Nevertheless, before the hurricanes hit, the trends were rather positive and some economists argue that the economy will smooth into the recovery phase with growth of demand and overall production. The GDP growth is attributable mainly to the structural productivity growth though the employment rates were revealing job losses over the country. The main target of the national banks in different countries is to precisely monitor the affect of inflationary pressure and low interest rates on the employment and GDP development. Another point of concern in the longer term is the growing rate of federal expenditure on health and retirement programs and in case of larger debt service to GDP the economy will be hit tremendously. To summarize, the outlooks are positive in the short term for production companies not heavily dependant on oil and gas prices, and is more favorable in the long term with certain risks being in place nevertheless. Company managers should strive their best to implement energy saving strategies in order to cut down the value of this cost variable within their overall cost structure and should rush to invest as much as possible into new products which could be de livered to the market very soon. Alan Greesley decided not to give any precise outlook for the economy development in the long term due to increasing baby boomers retiring factor, huge oil and gas prices and no precise way to estimate the path through mechanism of higher interest rates and inflation. The policy makers should invest as much as possible now to implement technology innovations to provide cost reduction methodologies. Keeping the US quality, this will guarantee it competitive position in the markets. The economy must go through reformation which is happening now. The gross domestic product growth depends on the demand and the ability of consumers within the economy to realize their demand for specific products. The demand for the product depends on the utility function of this product and how much utility the product can provide to the customer. The utility of the product is the tradeoff of the qualities of the specific product in return of the quality and ability of this good to satisfy specific consumer needs. The demand of the product is the price sensitive and the good is considered normal if the demand for this product rises if the price falls. On the other hand, demand falls with rising price when the utility function is at its' break point and the utility provided to the customer from purchasing this product is less than the price to be paid for it. Price sensitivity of the product depends on the amount of substitutes available to the customers. In case of few substitutes available and the product being a normal product, the demand will grow with the falling price and visa versa. On the other hand, if the product is normal but there are several substitutes to this product, or the products different in some qualities but providing the same function to the customer, up to certain specific preference point, the customer will be choosing this product and then will switch to another one. For example, with the expectations of growing demand in the short term and falling in the long

JP Morgan Chase Shifts IT Outsourcing into Reverse Case Study

JP Morgan Chase Shifts IT Outsourcing into Reverse - Case Study Example The major motive of the deal for JP Morgan Chase was to lower its IT costs and come up with better quality services to the customers. IBM, specializing in IT, could definitely help JP Morgan Chase in its motive and as part for IBM; it was getting the honor of outsourcing for a huge organization and increase its repute in the global customers it retains. This was the reason why the deal was beneficial and took place between the two companies. The deal was although a 7-year duration but ended up in just 21 months. JP Morgan Chase moved back from outsourcing to backsourcing due to a number of factors that proved that the decision of outsourcing was not a right one for JP Morgan Chase. These factors included: The entirely different work environments of both the organizations which influenced the employees of JP Morgan Chase who were also outsourced. Their ' morale and job security were highly influenced as in IBM they were not given the control and authority as they were given at JP Morgan Chase The information technology and information systems strategy of any organization needs to be matched with the business processes and requirements of the business. All the business processes need to be inline with the IT infrastructure and the IS which is being run in the organization. This is the reason why at present most of the companies go for customized information systems for their organizations rather than implementing off-the-shelf systems. With the customized approach, there is no need to change the business processes and the system that is being implemented is built with integration to the business processes. However, when off-the-shelf system is implemented, there is a need for BPR (Business Process Reengineering) in which the business processes are changed. JP Morgan Chase's information technology and information systems were in relation to their providence of the financial services on a global level. IBM is very famous for the quality it provides and the world wide customers it has to which it outsources systems and makes customers. Therefore the IT and IS Strategy of the organization was decided to be fully outsourced by IBM. The full dependency of JP Morgan Chase on IBM and the providence of its all data to IBM for building its IT was not a good decision. This is because the firms should not outsource their operational activities that stand crucial to them by any perspective. Through the operational activities, the firm interacts with its customers. Customer satisfaction is crucial to every business and when this job is handed to any other firm, the job cannot be performed as efficiently as the original firm does. For JP Morgan Chase, cost cutting and quality were the major issues due to which the decision of outsourcing seemed necessary to take; as through outsourcing, the IT budgets can be lowered. IBM, which is the outsourcing member in this case, has IT as its