Ch 11 Information Technology

Week Twelve Ch 11- Weekly Questions

1. Explain the triple constraint and its importance in project management.

The triple constraint involves making changes between the three factors; scope, time and cost for a project. Changes are always going to be made to a project at some point and that will involve the changes to the scope, time or cost of the project. It is important to project management as when a business is making plans for the project it can keep in mind a reasonable timeframe, budget and the requirements that are involved, however, not hold these in concrete. It allows for flexibility and change. It provides a guideline for the project.

The image below shows the triple constraint. http://brianherman.files.wordpress.com/2008/10/triple-constraint.png














2. Describe the two primary diagrams most frequently used in project planning

Pert Chart (Program Evaluation and Review Technique) is a graphically network model that depicts a project’s tasks and the relationship between them. Pert charts show dependency between project tasks.

Here is an example of one below:
http://cobweb.ecn.purdue.edu/~epics/docs/docs/project_plan_example/PERT.gif

















A Gantt chart is a bar chart and a tool that allows the user to model the planning of tasks necessary to the performance of a project against a calendar. It allows for the graphic representation of the progress of the project, but it is also a good means of communication amongst the various persons involved in a project.

http://www.total-quality-management-software.com/images/project_gantt_chart.gif provides an example of one below:













3. Identify the three primary areas a project manager must focus on managing to ensure success.

1. Managing people (e.g. resolving any conflicts).
2. Managing communications (e.g. through a developed communications plan/receiving feedback).
3. Managing change (anticipate and react appropriately to change).

4. Outline 2 reasons why projects fail and two reasons why projects succeed.

Fail:
1. Unrealistic expectations: E.g. The management team may predict for the project to take a shorter duration then would be anticipated usually as they may receive a bonus if they do so, however, the rest of the team forecasts that the project will be ineffective if rushed. The following article- http://www.coleyconsulting.co.uk/failure.htm provides a recommendation to this problem which says that: “The recommendation here is to review all project plans to see if they are realistic, and to challenge the participants to express any reservations they may have with it”.

2. Poor scope- This is a management issue closely related to change control. Management must be realistic about what is it they want to achieve and when, and stick by it.

Succeed:
1. The right mix of team players: Having a team on board that is diverse and dedicated can bring many positive aspects to a projects as everyone has the same common goal, however, can all bring different ideas to to the table.

2. Effective communication: Through delivering effective streams of communication team members can know exactly what is expected of them. They can feel comfortable in asking questions and inputting their ideas to management which can enable the project to run smoothly and efficiently.

Ch 9 Information Technology

Week Ten Ch 9 Weekly Questions

1. What is your understanding of CRM?

Customer Relationship Management is the focus of the relationship between the customer and the business. It aims to meet the needs and wants of the customer and in return the business receives customer retention, loyalty and, therefore, guaranteed productivity.
Includes a one-to-one relationship between a customer and a seller.
One simple idea “Treat different customers differently.” Helps keep profitable customers and maximizes lifetime revenue from them.

The following article http://searchcrm.techtarget.com/definition/CRM defines a CRM as:

“CRM is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organised way. For example, an enterprise might build a database about its customers that described relationships in sufficient detail so that management, salespeople, people providing service, and perhaps the customer directly could access information, match customer needs with product plans and offerings, remind customers of service requirements, know what other products a customer had purchased, and so forth.”

2. Compare operational and analytical customer relationship management.

Operational CRM

Is involved with traditional transactional processing for day-to-day front of house operations (sales, marketing and service) that deal directly with the customers. Each interaction with a customer is generally added to a customer's history, and staff can retrieve information on customers from the database as necessary. It simplifies and orderly creates databases of customer information.

Analytical CRM

Is involved with back of house operations and strategic analysis which does not deal directly with the customers. Data gathered is analysed to segment customers or to identify cross- and up-selling potential. This system uses data mining to gather strategic information/data on customers. This can assist in making forecasts and predictions e.g. retaining customers.

http://www.fidis.net/typo3temp/tx_rlmpofficelib_a219f6551f.jpg -shows the relationship between the two.














3. Describe and differentiate the CRM technologies used by marketing departments and sales departments.

MARKETING
1. List generator – gathers customer information from an array of sources and uses the information in the relevant sectors. E.g. for website questionnaires, customer lists, website visits. This information provides the organisation with the tools it needs to target its customer base.

2. Campaign management system – guides users through marketing campaigns e.g. in planning and scheduling. These systems can calculate results for return on investment for each marketing campaign.

3. Cross-selling and up-selling
Cross-selling: selling additional products or services.
Up-selling: increasing the value of the sale.

SALES
1. Sales Management- which tracks each stage of the sales process, which assists sales representatives in maintaining all of their customer records (including accounts). E.g calendars for events, alarms for meetings.

2. Contact Management- holds customer contact details (which is beneficial for future sales as you can send emails of upcoming sales). It contains features including; customer notes and telephone number and name display.

3. Opportunity Management- Aims to create sale opportunities by finding and attracting new customers or companies for future sales. These systems determine potential customers and competitors and detail selling information including budgets.

4. How could a sales department use operational CRM technologies?

The department could use the technologies to maintain its customers records on purchases, how frequently they shop, etc. It could use the sales force automation, (SFA) a system that automatically tracks all of the steps in the sales process to ensure that the process runs smoothly, efficiently and effectively.

5. Describe business intelligence and its value to businesses

http://searchdatamanagement.techtarget.com/definition/business-intelligence describes business intelligence (BI) as:

“A broad category of applications and technologies for gathering, storing, analysing, and providing access to data to help enterprise users make better business decisions. BI applications include the activities of decision support systems, query and reporting, online analytical processing (OLAP), statistical analysis, forecasting, and data mining.”

Its valuable to business as the market is forever changing and advancing and BI enables businesses to identify, address and meet the needs of their customers which helps them maintain a competitive edge. It allows business users to receive data for analysis. For example BI provides valuable information in:

- Determining who their customer base is, enabling the business to correctly market their product.
- Identifying exceptional sales people through their high productivity figures and continual cross-selling sales.
- Determining whether or not campaigns have been successful through customer retention figures.
- Determining whether the business is profitable.

It also provides a single point of access to information for all users, it can be used in every step of the value chain and gives up-to-the-minute information for users.

6. Explain the problem associated with business intelligence. Describe the solution to this business problem.

'Data rich, information poor'
Technology is on constantly advancing and, therefore, so is the amount of information and data that is being provided in organisational systems and databases. It can take hours, days or sometimes weeks to gather and retrieve different sources of information needed in organisations when compiling things like business reports. Business Intelligence systems can solve this problem as they can provide all the information needed in databases where relationships can be linked, providing data involving aspects like customer sales and contact details, more freely to the sales reps.

7. What are two possible outcomes a company could get from using data mining?

Association Detection- which will reveal the degree to which variables are related and the nature and frequency of these relationships in the information. E.g. buying behaviour. Organisations can use this to make predictions of further purchases as well as opportunities for cross selling.

Statistical analysis- which performs functions such as information correlations, distributions, calculations, and variance analysis. The organisation can use this tool to make forecasts and predictions made on the basis of time-series information.

Ch 8 Information Technology

Wk 9 Ch 8 Weekly Questions

1. Define the term operations management

Operations management can be defined as managing the processes to produce and distribute products and services.


The following supporting article: ‘Operations Management’ by Carter McNamara, MBA, PhD http://managementhelp.org/ops_mgnt/ops_mgnt.htm explains that:

“Overall activities often include product creation, development, production and distribution. Operations management is in regard to all operations within the organisation. Related activities include managing purchases, inventory control, quality control, storage, logistics and evaluations. A great deal of focus is on efficiency and effectiveness of processes. Therefore, operations management often includes substantial measurement and analysis of internal processes.”

2. Explain operations management’s role in business

Managing the processes to produce and distribute products and services. To report, plan and control functions involved within the business operations.

The following article: ‘Role of the Operations Manager’ http://publib.boulder.ibm.com/tividd/td/TWS/SC32-1256-00/en_US/HTML/eqqg1mst35.htm states that these roles will produce positive effects including;

- Improving the efficiency of the operation.
- Improving control of service levels and quality.
- Setting service level agreements for end-user applications and for services provided.
- Improving relationships with end-user departments.
- Increasing the return on your IT investment.
- Developing staff potential.

3. Describe the correlation between operations management and information technology


Information Technology influences the way in which operations management runs as well as having a significant impact on the decisions that are made in the field. This is because IT has effective and efficient up-to-date information made readily available as well as systems in place that help with areas including forecasting through systems such as excel and access. IT assists in productivity, the reduction of costs, quality, customer satisfaction. It provides flexibility and a comparison of other operations. They assist managers in making well-informed business decisions including :

- What: What resources will be needed and in what amounts?
- When: When should the work be scheduled?
- Where: Where will the work be performed?
- How: How will the work be done?
- Who: Who will perform the work?

4. Explain supply chain management and its role in a business

Supply chain management is the stream of communication between the different stages involved in the supply chain process. Its aim is to maximise total supply chain effectiveness and profitability.

Supply chain management (SCM) is defined by http://www.wisegeek.com/what-is-supply-chain-management.htm as: “a process used by companies to ensure that their supply chain is efficient and cost-effective.” It’s role in business is to plan, source, make, deliver and return.

Below is an example of a supply chain management mind-map attained from: http://www.axtin.com/solutions/images/supply_chain_diagram.jpg














5. List and describe the five components of a typical supply chain


plan- for the resources that will be used, and for the details of the development process. It must be developed to address how a given good or service will meet the needs of the customers e.g. planning a profitable supply chain.

source- choosing reliable suppliers through extensive research and recommendation. Companies must also develop shipping, delivery, pricing and payment processes with the suppliers.

make- manufacturing, testing, packaging and scheduling the products and/or services for delivery.

deliver- the logistics step that plans for the effective and efficient transportation and storage of supplies from suppliers to customers.

return- creating a network for receiving defective and excess products as well as providing support to customers who have problems or questions regarding the delivered products.

6. Define the relationship between information technology and the supply chain.

Creating the integrations and information linkages between functions within in an organisation e.g. marketing, sales, finance, manufacturing and distribution and between organisations which allow the flow of both information and product between customers, suppliers and transportation providers across the supply chain.

IT ensures that planning, decision making processes, business operating processes and information sharing can be efficient and effective. Examples of changes resulting from advances in information technology involving the supply chain include: visibility, consumer behaviour, competition and speed.

Ch 7 Information Technology

Week 8 Chapter Seven - Weekly Questions

1. Explain the business benefits of using wireless technology.

Some sources of wireless offer connectivity over an area as large as your desktop whilst others can cover a medium-sized office space. Wireless technology can offer businesses more flexible and inexpensive ways to send and receive data. Some benefits include:

- Less hardware.
- Improved infrastructure.
- Increases mobility.
- Easy Access to the Web.
- Enables Access to ‘live’ information.
- Removes Cabling & Wiring.
- Reduces the requirements for hubs/switches.

This supporting article “Wireless Communications- The Benefits of Wireless Communication” says that the four key benefits of wireless technology are:

1. Increased efficiency - improved communications leads to faster transfer of information within businesses and between partners/customers.

2. You are rarely out of touch - you don't need to carry cables or adaptors in order to access office networks.

3. Greater flexibility and mobility for users - office-based wireless workers can be networked without sitting at dedicated PCs.

4. Reduced costs - relative to 'wired', wireless networks are, in most cases, cheaper to install and maintain.

http://www.is4profit.com/business-advice/it-telecoms/wireless-communications/the-benefits-of-wireless-communication.html

2. Describe the business benefits associated with VoIP

As VOIP allows the internet to carry voice in digital format, call costs have dramatically decreased as the international calls are now internet connections.It enables phone calls, faxes, voice mail, e-mail and Web conferences over digital networks. Easy navigation, dial-by-name capability, three-way-calling, comprehensive information about each caller, mobility.

It saves money in three ways;

1. VOIP runs over the existing computer network
2. Calls over the internet do not attract Telecommunications charges.
3. Customers can port their numbers between carriers.

Further benefits are provided through this supporting article: http://www.alltel.com.au/voipbenefits.html ‘Business Benefits of VoIP / IP Telephony’ which states that:

“Business VoIP / IP Telephony will benefit your business in a number of ways...

* cheaper telephony and lower operating costs
* many features at low cost
* easier to make changes
* easier to relocate
* can enable collaboration tools for an increasingly decentralised work force
* convergence provides lower cost WAN connectivity.”

3. Compare LANs and WANs

http://freesoft.org/CIE/Topics/13.htm explains that:

“Local Area Networks (LANs) and Wide Area Networks(WANs) are generic terms referring to two important basic types of networks. Let me try to summarize the characteristics of each, and then discuss their importance to the network engineer.”

Local area networks (LANs) connect computers that reside in a single geographic location on the premises of the company that operates the LAN.

Wide area networks (WANs) – connect computers at different geographic sites.

LAN/WAN Comparison

Local Area Networks (LANs)

- Most commonly: Ethernet, Token Ring, FDDI
- Advantage: speed
- Cost Center: dense installation (about one interface per room)
- Current Speed: 10-100 Mbps (mostly 10 Mbps)
- Common Users: File sharing
- Common Problems: Cable disruption by users
- Conceptually: A bunch of lines hooking users together

Wide Area Networks (WANs)

- Most commonly: Leased lines, serial links, ISDN, X.25
- Advantage: distance
- Cost Center: length of long-haul lines (about one interface per 100 miles)
- Current Speed: 0.01 to 45 Mbps (mostly clustered around 1 Mbps)
- Common Users: Email and file transfer (including Web)
- Common Problems: Cable disruption by backhoes
- Conceptually: A bunch of lines hooking cities together

A good networking design must answer both the LAN and WAN needs of its users.

4. Describe RFID and how it can be used to help make a supply chain more effective.

The following article: ‘How RFID can help optimise supply chain management’ http://www.ameinfo.com/66090.html describes an RFID as:

“A system of small electronic tags (comprising a tiny chip plus an antenna) that transmit data via a radio signal to RFID readers and related hardware and software infrastructure. The transmitters can be placed anywhere that tracking the movement of goods adds value to the commercial process: on containers, pallets, materials handling equipment, cases or even on individual products.”

It can be used to help a supply chain more effective as by adding RFID tags to every product, tool, resource and item of materials handling equipment, manufacturers will be able to get better demand signals from customers and the market. It has the potential of helping retailers provide the right product at the right place at the right time, thus maximising sales and profits.

RFID provides the technology to identify uniquely each item being manufactured, shipped and sold, therefore, provides the stepping stones for increased visibility throughout the supply chain. Organisations are able to link the physical world to the digital world without any human interaction which reduces costs and time, increases efficiency and business intelligence. It has the potential to deliver better asset utilisation, produce higher quality goods, reduce shrinkage and counterfeiting, and increase sales by reducing out-of-stocks. It can even help improve the safety of the food and pharmaceuticals we buy.

The following diagram shows the process involved with RFID: http://www.satoasiapacific.com/img/RFID-Logistics_290.gif













5. Identify the advantages and disadvantages of deploying mobile technology:

Advantages-

* Mobile workforce.
* Real time processing.
* Vast delivery.

Disadvantages-

* Wireless technology can at times be insecure.
* Issues involved with safety.
* Privacy issues with mobile phones.
* Viruses on unsecured devices.

Ch 6 Information Technology

Weekly Questions- Wk 7 Ch 6

1. List, describe, and provide an example of each of the five characteristics of high quality information.

Accuracy- Are all the values correct? E.g. named spelled correctly? Dollar amount recorded properly?

Completeness- Are any of the values missing? E.g. is address complete including state, street, city state and postcode?

Consistency- Is aggregate or summary information in agreement with detailed information? E.g. Do all total fields equal the true total of individual fields?

Uniqueness- Is each transaction, entity and event represented only once in the information? E.g. are there any duplicate customers?

Timeliness- Is the information current with respect to the business requirements? E.g. is information updated weekly, daily or hourly?

2. Define the relationship between a database and a database management system.

Whatis.com defines a database as: "a collection of information that is organised so that it can easily be accessed, managed, and updated. In one view, databases can be classified according to types of content: bibliographic, full-text, numeric, and images." (http://searchsqlserver.techtarget.com/definition/database).

A database is the heart of an organisation. It is a structured collection of related data e.g. a filing cabinet, an address book, a telephone directory, a timetable, etc. It stores key business information like;

* Sales Data – customers, sales, contacts.
* Inventory Data – orders, stock, delivery.
* Student Data – names, addresses, grades.

All businesses use a database of some type. Effective managers know the value of extracting of important data.

A Database Management System (DBMS)- provides all users with access to all the data. It’s software through which users and application programs interact with a database. For examples they can produce reports, run queries through programs such as access (a collection of related tables).

Wisegeek.com explains that a dbms is a computer software program that is designed as the means of managing all databases that are currently installed on a system hard drive or network. Different types of database management systems exist, with some of them designed for the oversight and proper control of databases that are configured for specific purposes. (http://www.wisegeek.com/what-is-dbms.htm)

3. Describe the advantages an organisation can gain by using a database.

DBMSs provide many advantages for an organisation as they minimise the following problems:

- Data redundancy: The same data is stored in many places.
- Data isolation: Applications cannot access data associated with other applications.
- Data inconsistency: Various copies of the data do not agree.

Databases also ensure that:

* Data security is maintained: Through keeping the organisation’s data safe from theft, modification, and/or destruction.
* There is a high level of data integrity: Data must meet constraints (e.g. student grade point averages cannot be negative).
* Data independence exists: Applications and data are independent of one another. Applications and data are not linked to each other, meaning that applications are able to access the same data.

High quality information can significantly improve the chances of making a good decision and directly increase an organisation’s bottom line.

INCREASED FLEXIBILITY- A good database can handle changes quickly and easily. Each user can access information in own way. Physical view> physical storage of information e.g. hard disk. Logical view> focuses on how users seek information to best suit their needs.

INCREASED SCALABILITY & PERFORMANCE- Databases scales to handle masses of information. How well a system can adapt to the increase in demands.

REDUCED INFORMATION REDUNDANCY- the duplication of information, or storing the same information in multiple places. It occurs because organisations frequently capture and store the same information in multiple locations. The problem is that it can often be inconsistent. Eliminating information redundancy saves space, makes performing information updates easier and improves information quality.

INCREASED INFORMATION INTEGRITY (QUALITY)- Measure of the quality of information. Integrity constraints are rules that help ensure the quality of information. They can be defined and built into the database design.
2 types of integrity constraints: relational (rules that enforce basic and fundamental information-based constraints) and business-critical (enforce business rules vital to an organisation’s success and often require more insight and knowledge then relational integrity constraints).

INCREASED INFORMATION SECURITY- Organisation must protect its information from unauthorised users or misuse. Therefore, databases offer passwords, access levels and controls.

4. Define the fundamental concepts of the relational database model.

* A relational database is a collection of tables from which data can be accessed in many different ways without having to reorganise the database tables. It stores information in logical 2D tables that relate to each other.

* Once these relationships are created, we can create links that relate the tables to find:

- Which students are attending all tutorials.
- Which students have high distinctions.
- Which subject has the highest failure rate.
- An example of the model can be seen below:
















http://www.blurtit.com/var/question/q/q1/q19/q192/q1922/q192204_414325_673px-er_diagram_mmorpg.png

5. Describe the benefits of a data-driven website.

* Development- allows website owner to make changes any time. All without having to rely on a developer knowing HTML programing.

* Content management- a static website requires a programmer to make updates. This adds an unnecessary layer between the business and its web content which can lead to misunderstandings.

* Future expandability- having a data-driven website enables the site to grow faster than would be possible with a static site. Changing the layout, displays and functionality of the site is easier with a data-driven solution.

* Minimising human error- a well designed, data-driven website will have ‘error-trapping’ mechanisms to ensure that required information is filled out correctly and that content is entered and displayed in its correct format.

* Cutting production and update costs- Can be updated and published by any competent data-entry or administrative person. It is convenient and affordable and changes and updates take a fraction of the time of static sites. Training a data-entry person can be done in up to an hour.

* More efficient- The system keeps track of the templates so users do not have to. Layouts and structures only have to be programmed once. It improves the reliability and stability of a website, while reducing the chance of ‘breaking’ some part of the site when adding new areas.

* Improved stability- There is a peace of mind knowing the content is never lost- even if your programmer is.

6. Describe the roles and purposes of data warehouses and data marts in an organisation.

The role of a data warehouse is to logically collect information, gathered from many different operational databases, that will support business analysis activities and decision-making tasks.

The primary purpose of a data warehouse is to aggregate information throughout an organisation into a single repository for decision-making purposes.

A data mart contains a subset of data warehouse information. Its role involves allowing organisations to run transactional data and visibility upon the whole organisational whilst showing the relationship between the sectors.

Tech target defines a data mart’s role as being “designed to serve a particular community of knowledge workers. In scope, the data may derive from an enterprise-wide database or data warehouse or be more specialized. The emphasis of a data mart is on meeting the specific demands of a particular group of knowledge users in terms of analysis, content, presentation, and ease-of-use. Users of a data mart can expect to have data presented in terms that are familiar.” http://searchsqlserver.techtarget.com/definition/data-mart

In a data warehouse and data mart, information is multi-dimensional; a cube, it contains layers of columns and rows. Data warehouses have a more organisational focus whereas data marts have focused information subsets (a part of a larger group of related things) particular to the needs of a given business unit e.g. finance.

Ch 5 Information Technology

Week Six Ch 5- Enterprise Architectures: Weekly Questions

1. What is information architecture and what is information infrastructure and how do they differ and how do they relate to each other?

Information architecture identifies where and how important information, such as customer records, is maintained and secured. The three primary areas/components of it are;

- back-up and recovery
- disaster recovery
- information security

Information infrastructure includes the physical pieces of hardware, software and telecommunications equipment that, when combined, provides the underlying foundation to support the organisation’s goals. The system needs to be adaptable to changes as the organisation faces change.

These information systems differ as the information architecture refers to the overall plan of how a business goes about configuring its resources whereas the information infrastructure refers to the actual implementation of the plan through the use of physical pieces of hardware and people’s skills.

They relate to each other as the architecture establishes the plan for the infrastructure implementation. This is supported through the following diagram.
















https://fedoraproject.org/w/uploads/8/87/Infrastructure_Architecture_frontend.png

2. Describe how an organisation can implement a solid information architecture.

An organisation can implement a solid information architecture by implementing the three components areas of information architecture which are;

* back-up and recovery (provides exact copies of system’s information and the recovery component allows the system to run after a crash or failure and includes restoring the information backup).

* disaster recovery (businesses can establish disaster recovery plans to prepare for the occurrence of natural disasters. This usually involves having back-up information stored in another location).

* information security (manages user access and runs up-to-date anti-virus software and patches).

3. List and describe the five requirement characteristics of infrastructure architecture.

The following are the five primary characteristics of a solid infrastructure architecture:

1. flexibility: systems must be flexible enough to meet all types of business changes and demands (this may involve multinational changes).

2. scalability: how well a system can adapt to increased demands of growth requirements. Many factors create organisational growth including; market, industry and economy factors. It also involves capacity planning.

3. reliability: (accuracy) ensures all systems are functioning correctly and providing accurate information. Low accuracy puts the company at risk.

4. availability: when systems can be accessed by users. ‘High availability’ is preferable as its continually operational for a lengthy period of time. It measures relative to 100% operational or ‘never failing.’ Businesses should aim for the 5/9s (99.999 % availability). This ensures business continuity.

5. performance: measures how quickly a system performs a certain process/task or transaction. (E.g. in terms of efficiency IT metrics of both speed and throughput-the amount of items or materials passing through a a system or process). There is a growing pressure on systems to be faster.

4. Describe the business value in deploying a service oriented architecture.

SOA: An approach that supports integrating a business as linked, repeatable tasks or services. SOA helps businesses be innovative by ensuring that IT systems can adapt quickly, easily and economically to support rapidly changing business needs. Helps businesses increase their flexibility of processes, strengthen their IT architecture and reuse their existing IT investments by creating connections among different applications and information sources.

An SOA is a style/concept/representation. A way of thinking. It’s not a framework that can be purchased. It allows enterprises to plugin new services or upgrade existing services, respond more quickly and is cost effective to changing market conditions. Its about using different sources to meet different criteria.

5. What is an event?

An electronic message indicating that something has happened, it detects threats and opportunities and alerts those who can act on the information. E.g a new employee has entered the system.

6. What is a service?

Contains a set of related commands that can be reused, it is more like a software product than a coding project. Needs to be reusable if they are going to have an impact of productivity.

7. What emerging technologies can companies use to increase performance and utilise their infrastructure more effectively?

Virtualisation: a framework that divides the resources of a computer into sectors that allow a user to utilise the functions available. It’s effective as it provides a way of increasing physical resources to maximise the investment in hardware. Its benefits include:

-Rapid application deployment.
-Dynamic load balancing.
-Streamlined disaster recovery.
-Reduces hardware infrastructure and increases utilisation of software.
-Consolidates (and often reduces) power and cooling requirements.

This is supported through the following website: http://www.vmware.com/virtualization/what-is-virtualization.html which states that:

“Today’s x86 computer hardware was designed to run a single operating system and a single application, leaving most machines vastly underutilised. Virtualisation lets you run multiple virtual machines on a single physical machine, with each virtual machine sharing the resources of that one physical computer across multiple environments. Different virtual machines can run different operating systems and multiple applications on the same physical computer. While others are leaping aboard the virtualisation bandwagon now, VMware is the market leader in virtualisation.”

Grid Computing: is an aggregation of geographically dispersed computing, storage, and network resources, coordinated to deliver improved performance, higher quality of service, better utilisation, and easier access to data. Used by scientific, e-Commerce, technical or engineering projects that require many processing cycles to complete a job. People can offer their free-processing time on home computers to companies. Grid computing provides the opportunity to researchers in an area to use the idle computers across the Internet for better use and better cause which is beneficial to human kind and technology.

It benefits include:

-Improving productivity and collaboration of virtual organisations and respective computing and data resources.
-Allowing widely dispersed departments and businesses to create virtual organisations.
-Building robust and infinitely flexible and resilient operational architectures
-Providing instantaneous access to massive computing and data resources.
-Leveraging existing capital investments, which in turn help to ensure optimal utilisation and costs of computing capabilities.

This is supported through the following diagram found at: http://www.csa.com/discoveryguides/grid/images/gridcomp.gif