Cloudy Spine Meta-System Proposed Model in Small Businesses Process Management

International Journal of Management, Accounting and Economics Vol. 2, No. 7, July, 2015 ISSN 2383-2126 (Online) © IJMAE, All Rights Reserved www.ijmae.com 766 Cloudy Spine Meta-System Proposed Model in Small Businesses Process Management Safoora Agha Davoud Jolfaie 1 M.A of Information Technology Management, Research and Science University, Tehran, Iran Ali Rajab Zadeh Faculty Member, Assistant Professor of Research and Science University, Tehran, Iran Maryam Rashki PhD Student of Behavioral Management, University of Sistan and Baluchestan, Zahedan, Iran Zahra Hemmat M.A of Entrepreneurship, University of Sistan & Baluchestan, Zahedan, Iran Abstract Cloudy computing by offering the scalable infrastructure and available capabilities as a service for small and medium-sized businesses has changed the game. It is a paradigm that computing resources are available anywhere and anytime and businesses can take advantage of it in the same way as they consume utilities like water and electricity. Due to the important role of small and medium-sized businesses in Iran economy, the aim of this study is to design a cloudy Spine for small businesses. According to the views of experts in the field of IT and cloudy computing, information and data in this field are collected by observing, preliminary and systematically interviews. Studies show that this business model provides a win-win solutions for small and medium-sized businesses provider and cloud service consumer. At the end, it is presented for the cloudy Spine model. Keywords: Cloudy Computing, Meta-System, Cloudy Spine model, Small Businesses Organization Cite this article: Jolfaie, S. A., Rajab Zadeh, A., Rashki, M., & Hemmat, Z. (2015). Cloudy Spine Meta-System Proposed Model in Small Businesses Process Management. International Journal of Management, Accounting and Economics, 2(7), 766-779. 1 Corresponding author’s email: [email protected] International Journal of Management, Accounting and Economics Vol. 2, No. 7, July, 2015 ISSN 2383-2126 (Online) © IJMAE, All Rights Reserved www.ijmae.com 767 Introduction In 2001 there were only 60 million transistors for every man and in 2010 there were a thousand million transistors for every man. One thousand billion mobiles with camera were sold in 2007 that this amount is 450 million more than in 2006. In 2011, two thousand millions individuals meet their needs in web and internet world, and in these years thousands of millions of objects, such as cars, cameras, highways and etc. was connected to the Internet. Accordingly, the world around us is getting more intelligent, smarter and smarter time to time. Small and medium-sized businesses have the utmost importance in the economic growth of a country. These kind of businesses typically have small portions of ICT, therefore, so they more likely don’t have access to skilled personnel, information technology and its sophisticated infrastructure and management tools. In addition, small and medium-sized businesses typically don’t have research and development units in order to support from the research market functioning. This underlying condition, makes cloudy computing a potential and high cost tool in order to reduce costs and also by providing a valuable tool with well-defined services and provides other services and side information such as response times, peak business periods, failure rate, and error, automatic events logging which is provided by cloud, these all can improve decisions for businesses, these deficiencies are including of limited financial resources and human resources. These limitations, are weaken the small and medium sized-businesses toward large companies in the financial, planning, monitoring, education and information technology. The Concept of Cloudy Computing Cloudy computing can be defined as a new computing paradigm which can temporarily let users enjoy their computing infrastructure on network. Cloudy computing is offered by the cloud provider as a service in one or more levels of abstraction (Youseff, 2008). Buyya and colleagues suggest that "distributed and parallel computing cloud systems, which includes a series of interconnected and virtual computers, which dynamically provides resources and services and as one or more integrated computing sources according to an agreement of level-services, is offered through negotiation between service providers and consumers” (Buyya,2011). Convergence cloudy computing offers two major approaches in information technology: 1. Performance of IT in which modern computer technology gets much more efficient, which is used through the scalable hardware and software resources. 2. Business Agility, in which information technology can be used as a competitive tool through rapid deployment, parallel batch processing, using business analysis in a focused computing way and mobile practical-interactive programming that in real time response to customers’ needs (Kim, 2009). International Journal of Management, Accounting and Economics Vol. 2, No. 7, July, 2015 ISSN 2383-2126 (Online) © IJMAE, All Rights Reserved www.ijmae.com 768 According to the definition of the International Institute of Standards and Technology, cloudy computing is an accessibility to a set of computing resources in terms of demands, an encompassing solution that offers all computing resources quickly (hardware, software, networking, storage, etc.) based on users’ demands. Cloudy computing services by providing available computing services through methods similar to utilities such as electricity and gas over the Internet, offers and promises major changes in business and information technology (Mell, Grance,2011). This is a definition that is expressed in standard and formally way and can be considered as reference in this study. Types of Cloudy Computing Services Cloud-based services based on the abstraction level of the provided functionality services are divided into three groups: 1 - Infrastructure as a service - IaaS 2-Platform as a service - PaaS 3Software as a serviceSaaS (Mell, Grance, 2011). Figure (1) shows cloud layers from physical infrastructure to applications and programs. These levels of abstraction can be seen as a layered architecture where the upper-layer services can be composed of a lower layer (Youseff, 2008). Buyya and his colleagues’ reference model, shows the role of each layer in an integrated architecture (Buyya, 2011). Figure 1. Cloudy Computing layers (Hogan, 2013) Following properties described from the cloud economic perspective. International Journal of Management, Accounting and Economics Vol. 2, No. 7, July, 2015 ISSN 2383-2126 (Online) © IJMAE, All Rights Reserved www.ijmae.com 769  Elasticity capability of cloud will lead to an automatically scalability of computing resources that will lead to a reduction or increase in the services based on demand that is counted as a type of forward planning.  Rapid deployment resulted by the more efficient development of life cycle, because the production systems easily can be implemented.  Infrastructure Abstraction and easiness in accessing to applications will lead to an independency of provided services from the location and devices. This benefit enables faster procurement and integration services through a web interface with the lower risk.  Multi-tenancy provides a situation in which one sample of application runs simultaneously for multiple users. A full or partial Multi-tenancy means that the cost of storing, editing and enhancing customer service is divided.  Quality of cloud services ensures providing a timely delivery at any time through effective use of the resources. Service availability and scalability obtained through replication, distribution and load balancing data. These features significantly improve the technical performance through more efficient utilization of resources and cost-efficiency, by lowering the impact of costs in edition and lowering the entering and procurement costs and reducing the consumed time to make value. Of course all this depends on the scale cloud deployment model (Dubey, 2007). Cloudy Computing Accountable Agility Organizations Weiner (1948) released Cybernetics as feedback and control in biological and mechanical systems. In the cybernetic model, the focus is on the control and command feature in the organization. The key feature which is commonly called management (Beer, 1979). Beer (1975) argued that the organization which is likely to be active in their environment probably have the complexity, probabilism and homeostasis, in which the organization used suitable cybernetic methods for the analysis (Beer, 1979). Is there any winning business model that other companies can use it? What kind of architecture system of information technology can have the best support for this business model? The Business model which accountable companies are used, gives their business units a high degree of autonomy in the way of how to access the business objectives and they are constantly working to explore the market and encourage them for new opportunities. Business units in these kind of organization rather than hierarchies are organized into networks. This process, released business units to deal with those tasks so that they can be focused on activities that generate revenue for them. It also enables the company to take advantages and benefit from the scale economies in providing the support services. And these networks that run the structures are supported through a combination of communicative and computing technology that provides and deliveries services at any time and any place on the Internet. This combination of technology and International Journal of Management, Accounting and Economics Vol. 2, No. 7, July, 2015 ISSN 2383-2126 (Online) © IJMAE, All Rights Reserved www.ijmae.com 770 services are the same cloudy computing. The agility and responsive organizational structure is shown in Figure 1 (Hoffman, 2013). Figure 2: Growth of agility organizations (Hoffman, 2013). Characteristics of the Cloudy and SMEs Small and medium-sized businesses increasingly rely on effective partnership with its supplier partners. Business services should be delivered in a reliable and predictable method, and this is a flow of information that is passed back and forth between small and medium-sized businesses through the cloud (Dababneh, 2007). Figure 3. Small and medium-sized businesses and their relationships (Dababneh, 2007) Enterprise Coordinator Business unit Business unit Business unit Business unit New Coordinator Business unit SME SubActivity Main Activity Main Activity SubActivity Customer Custome r Supplier companies Supplier companies International Journal of Management, Accounting and Economics Vol. 2, No. 7, July, 2015 ISSN 2383-2126 (Online) © IJMAE, All Rights Reserved www.ijmae.com 771 Small and medium businesses as usual in the case of the presence of the IT departments have small Information and communications, so they are likely to have not access to skilled personnel and to information technology and complex infrastructure and management tools. In addition, small and medium-sized businesses usually have not development and research units to support the functioning of the common research market. This underlying condition, makes cloudy computing a potential and a valuable tool to reduce costs and provides with well-defined services and provides other services like side information such as response time, peak business periods, failure rate, and error, automatic events logging, which cloud offers, all can improve business decisions. The information technology unit is formed of many small and medium businesses as a simple personal computer, software, and sometimes local network. Opportunities of cloudy computing is integrated with Internet access. With the Internet, small and medium businesses, they can have more communication such as e-mail, web and e-commerce services with each other. Mail services with a custom domain name, for example, may be followed by a business at home by offering cloud services to be provided. Provided customized e-mail in business, however, need access to email’s expensive servers. On the other hand, by reducing the cost of cloudy services, cloudy customized business email hosting providers like Google are already very low cost or even free items are available. Other factors that increase the competitiveness of cloudy services is including of increasing the needs of storage and issues of workforce management requirements. In general computing needs of small and medium businesses depend largely on the nature of its business. From the three main services of, cloudy computing, business computing needs of SMEs in developing countries, the more focus is on infrastructure cloudy services options as a service and software as a service, toward platform as a service. The businesses that are involved in software development in developing countries are lower. Many alternative cloud-based software such as Office 365 are from Microsoft office Microsoft and Google Docs Google. Now the major theme of information technology is cloudy computing. Because all data and applications on a computer when they can be stored in the cloud, so you can access them from any computer. Applications and cloud computing benefits for companies associated with the development of information technology in organizations, universities and industries. Despite the potential advantages offered by cloud computing, organizations are reluctant to accept it (Mathew, 2012). The following are the factors affecting the agility and responsiveness of small and medium-sized businesses. - Reduction of Fixed Costs: In order for overcoming the uncertainty of the environment, small and medium-sized businesses should reduce their fixed costs. To survive, small and medium sized businesses need to achieve breakeven down to focus their operations. - Information Technology: Exactly like industrial technology of the last century that created the assembly line which is offered the benefit from the economies of scale, agility and responsive organization of information technology in this century, causing the continuous respond which offers profits from the market and the customers' needs alternatives. Cloudy communications of data communications and Internet-based voice International Journal of Management, Accounting and Economics Vol. 2, No. 7, July, 2015 ISSN 2383-2126 (Online) © IJMAE, All Rights Reserved www.ijmae.com 772 communications applications that are hosted by a third party outside the organization, and makes them available to the public cloud (beer, 1979). A simple classification of business systems in the business model are as follows: 1. Connecting systems 2. Adaptive Systems 3. Systems Customers Figure 4. System of Small and Medium size Business (Beer.1979). Meta system tasks of Stafford Beer (1975) are very similar to the performed duties which were done by the organizational coordinating in an accountable organization model. If we combine these two models and Meta system and coordinating tasks in the cloud technology, we will have cloud-based business model. We put Meta System and coordination tasks in the cloud, because they work collaboratively together and a there is a very effective cloud platform for cooperation between small and medium sized businesses around the world. Business intelligence and simulation systems in the cloud Small and Medium-sized businesses Provider or supplier Provider or supplier Provider or supplier Customer Customer Customer 2 .- System for Customers: •Product design •Career Planning •Customer Relationship •Support sales •Customer Service 3. Adaptive Systems: • Business Process Management • Business Intelligence • Modeling and Simulation • Marketing • Accounting, Enterprise Resource Planning • Human Resources 1. System connection: • Internet, EDI, Wireless • Social Networks • Collaborative Applications Customer service International Journal of Management, Accounting and Economics Vol. 2, No. 7, July, 2015 ISSN 2383-2126 (Online) © IJMAE, All Rights Reserved www.ijmae.com 773 can make all small and medium-sized businesses in network more visible and brighter so that they see the status of network operations in real time. Cloud business model for small organizations provides require systems for small and medium businesses in this structural study of agility and responsive for this type of organization and has two main components, cloudy Meta system which is the cloud of small businesses and it is the Spine of the cloud. The duties of a meta-system is planning and coordination of the business network and provides the use of business intelligence systems and simulation for small and medium enterprises. - Cooperation: What makes a bunch of birds move as a single entity? There's more of a leader bird gets others to do something. This rapid and coordinated behavior of large groups of people, called the bunch-like move. What we learn about dynamics group movement is related to the way we do business in the real economy and governance structure. The cloudy Spine Model of Small Businesses Process Management Modeling and simulation are new category of software which is used by large organizations to make better decisions, and these decisions have significant results in organizational operations and their profitability. Large organizations were used from simulation systems in order to make decisions about how the organization's operations should be done in circumstances which have never been faced with. Simulation systems provide a method to rapidly address the crisis. Modeling and simulation systems which are offered through the cloud of small businesses, supports small and medium-sized businesses in the areas of production. The cloud-based simulation systems focused on technologies and innovative manufacturing processes which the need to simulation for them is based on clients requirements in order to strengthen the supply of the application and demand. Simulation services provides an achievement in scientific and technical excellence so that to have better products and systems with improved performance, quality and better durability makes it possible for small and medium businesses to have a faster and more efficient access in production for the design of the engineering services, prototyping, training and knowledge transferring. This task of the cloud, productivity, adaptability and sustainability of small and medium sized businesses improve the production and through the delivery of simulation services systems in order to help the development of products and services to compete in the global industrial context. Cloudy business model for small organizations provides require systems for small and medium-sized businesses in this agility and responsive structural study for this type of organizations and has two main components, cloudy Meta system which is the same cloud of the small industrial businesses and the cloudy Spine, which will be described in detail in the following cases. International Journal of Management, Accounting and Economics Vol. 2, No. 7, July, 2015 ISSN 2383-2126 (Online) © IJMAE, All Rights Reserved www.ijmae.com 774 Figure 5. Cloudy Spine model of small businesses process management Small and Medium-sized businesses Cloudy Meta-System Interconnecting Systems - Internet, EDI, Wireless - Social Media - Collaboration Applications 3. Adaptive Systems: Business Process Management (BPM) - Business Intelligence - Simulation Modeling - Marketing - Accounting/ERP - Purchasing - HR, Payroll - Financial Reporting Specialization Systems: - Customer Contact - Product Design - Job Scheduling - Sales Support - Customer Service • Customer Service Sme1 Sme2 Sme3 Sme4 Sme5 Getting things done Getting Things done Getting Things done Getting Things done Getting Things done SME SubActivity Main Activity Main Activity SubActivity Customer Customer Supplier companies Supplier companies Cloud-based networks composed of a metasystem for coordination and a “cloud backbone” to which companies that join the network can connect. As industry-specific networks attract more and more companies they become “industry operating systems” that offer a field-tested set of application systems and industry best practices.