Continuous Improvement Efforts
Telecommunication is a fast growing industry. Today’s hot products and services may be obsolete tomorrow. Hence, technology accelerates the competitive forces. To be an industrial pioneer once does not assure organizational profits always Technological innovation is needed all the time for organizations. In another way, information overload is a key area of technology pressure for all organizations and individuals due to the massive free information availability on the Web.
Turban, Mclean and Wetherbe include issues such as social responsibility, government regulations, deregulation, spending for social programs, and ethics as important societal pressures for organizations. (Turban, Mclean and Wetherbe, 2004 Chapter 1) Detailed discussion in this area will be revealed in the following section – corporate responses.
Environmental factors as mentioned above alter the way organizations do business dramatically. It creates sophistications. As Turban, Mclean and Wetherbe has stated in the prescribed textbook for this subject, strategic systems for competitive advantage, continuous improvement efforts, business process reengineering (BPR), business alliances, and electronic commerce are the new solutions for today’s external environment. NTT DoCoMo as a pioneered company in its industry will be implemented to further show how those external pressures may be overwhelmed.
NTT DoCoMo recognizes those potential risks to its business in corresponds to the market pressures. Although they realize that soon the regional cellular phone market will become saturated, they still focus on expanding offerings, with low fees and charges. Simultaneously, they increase the quality of the service in order to remain the current customers. Currently, NTT DoCoMo is engaged in joint developments with IBM Japan to create a video transmission control system, with Nokia to promote open mobile architecture, with IBM Lotus Software to promote corporate usage of W-CDMA-based 3G FOMA services, and with Oracle to develop advanced mobile business solutions. They believe that 3G services will revolutionize the way people conduct their business and personal lives. Thus by creating joint research effort will keep the company’s technology up to date.
NTT DoCoMo is promoting i-mode, third-generation W-CDMA technology, and multimedia services to the world. They work together with other leading organizations in a manner that allows know-how and experience to be shared for the maximum benefit of all. They make financial contributions to a wide range of organizations, offer their proprietary technologies for licensing, and work in a highly collaborative manner. Strategic Systems for Competitive Advantage NTT DoCoMo has developed a strong competitive advantage by forming application partnerships that extend far beyond the realm of telecommunications. These partnerships add to the appeal of DoCoMo’s products and services; they also add value for all partners, because better i-mode applications attract more customers, and therefore increase revenues and profits.
A recent example of value-adding software developed with a partner is i-appli, enabled by Sun Microsystems’ Java technology. NTT DoCoMo has also been engaged in the joint development of new 3G services with prominent application vendors around the world. Components of E-Commerce According to the definition of electronic commerce by AbsoluteBusiness.com, “Electric commerce: the conducting of business communication and transactions over networks and through computers. Specifically, ecommerce is the buying and selling of goods and services, and the transfer of funds, through digital communications.” (AbsoluteBusiness.com, 1 September 2004)
However, Turban, Mclean and Wetherbe have defined it in a broader way. “not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, conducting e_learning, and conducting electronic transactions within an organization” (Turban, Mclean and Wetherbe 2004, p.177) Turban, Mclean and Wetherbe have also drawn a framework for e-commerce. It shows that the electronic commerce applications are supported by infrastructure and by five support areas. That is to say, there are five components – people, public policy, marketing and advertising, support services, and business partnerships – for an e-commerce application. Also, the supporting infrastructure includes hardware, software, and networks, ranging from browsers to multimedia. (Turban, Mclean and Wetherbe 2004, p.180)
Turban, Mclean and Wetherbe defines people as the “sellers, buyers, intermediaries, information systems specialists and other employees, and any other participants.” (Turban, Mclean and Wetherbe 2004, p.180) Turban, Mclean and Wetherbe defines public policy as the “legal and other policy and regulating issues, such as privacy protection and taxation, that are determined by the government.” (Turban, Mclean and Wetherbe 2004, p.180)
Marketing and Advertising
Turban, Mclean and Wetherbe defines marketing and advertising as “like any other business, EC usually requires the support of marketing and advertising. This is especially important in B2C online transactions where the buyers and sellers usually do not know each other.” (Turban, Mclean and Wetherbe 2004, p.180) Turban, Mclean and Wetherbe defines support services as “many services are needed to support EC. These range from payments to order delivery and content creation.” (Turban, Mclean and Wetherbe 2004, p.180) Turban, Mclean and Wetherbe defines business partnership as the “joint ventures, e-marketplaces, and business partnerships of various sorts are common in EC. These occur frequently throughout the supply chain (i.e., the interactions bet