changing environment and its impact on business

1 - 2

Management Information Systems

Unit 1: Organization & Information Systems

Chapter 1

Changing Environment and its impact on Business

Can we sayTechnology Transforms the Organization ?!!

1 - 5

What’s my return on investment on e-commerce?

Are you crazy? This is the Columbus of the New World. What was his ROI?

- Andrew Grove, Intel Chairman

Some Numbers 1/2

The online retail industry is expected to touch INR 7000 crore by 2015 (from current INR 2000 crore)

The annual growth of online transactions is 50% every year

Over 65% of Mumbai population and 45% of Delhi Population shop online

1 - 6

Some Numbers 2/2

By June 2010, More than 99 million businesses worldwide had dotcom Internet sites registered

The Single’s Day (November 11, 2011) created a history for China’s online businesses with 10 million orders

Thailand online shopping trends show a rise of nearly 60%

Many Fortune 500 companies now have Facebook pages

Prepared and Presented by Prashant P Jani 1 - 7

Value Chain - Primary

In-bound

Operations

Outbound

Marketing/Service

1 - 8

Value Chain – Secondary

1 - 9

HR

Purchase

Finance

Legal

Prepared and Presented by Prashant P Jani1 - 10

Web and Competitiveness The Internet has affected the five

forces by ◦Lowering entry barriers for new firms◦Creating substitutes for traditional

businesses (Stock trading and music) ◦Creating new markets that change the

way buyers and supplies interact Amazon.com has no physical stores and

hence a smaller infrastructure which is easier to manage

1 - 11

Business Today

Manufacturing and production

Accounting and finance

Engineering and

research

Supply chain management: procurement, distribution, and

logistics

Customer relationship management: Marketing, Sales, Customer Service

Intern

et

Intern

et

1 - 12

The Challenges of Change Within organizationsOrganizational structureInterorganizational relationsThe economyEducationNational development

1 - 13

Metrics for Business Impact

Market shareNumber of markets in which a

firm participatesNumber of new marketsSales growthSize of the average saleSales per employee

Prepared and Presented by Prashant P Jani1 - 14

Lean and Agile Manufacturing, Mass Customization

The Dell Model◦Phone and Internet orders◦Little or no in-process inventory◦No finished goods inventory◦Purchasing agreements with

companies, universities, and government agencies Customized Web ordering pages

Prepared and Presented by Prashant P Jani1 - 15

Prepared and Presented by Prashant P Jani1 - 16

Dell’s Inventory Turnover Data  Year      Inventory Turnover     Week's

Inventory

1992       4.79                         10.8561993       5.16                         10.0781994       9.4                            5.5321995       9.8                            5.3061996       24.2                             2.1491997       41.7                             1.2471998       52.40                          0.9921999       52.40                         0.9922000       51.4                          1.0122001       63.50                           .819 

1 - 17

The Impact

Will increase the size of the ‘manageable’ span of control for managers by decreasing the costs and difficulties of information handling (and thus reducing the costs of coordination)

1 - 18

The Impact

The more efficient automated systems will eliminate the need for many decision makers

But it will also generate the need for managers who will be more nearly of the system designer than the system operator

In this new role, the manager’s capabilities will be greatly extended both by quality of information available to him and by the versatility of the new tools for decision making.

He will be more concerned with studying how he can best structure his company to its environment and thus improve its competitive posture competitive posture

1 - 19

Campus Overview

907/A Uvarshad, GandhinagarHighway, Ahmedabad – 382422.

Ahmedabad Kolkata

Infinity Benchmark, 10th Floor, Plot G1,Block EP & GP, Sector V, Salt-Lake, Kolkata – 700091.

Mumbai

Goldline Business Centre Linkway Estate, Next to Chincholi Fire Brigade, Malad (West), Mumbai – 400 064.

1 - 21

Thank You