changing environment and its impact on business presentation - unitedworld school of business

7/28/2019 Changing Environment and Its Impact on Business Presentation - Unitedworld School of Business

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Management Information

Systems

Unit 1: Organization & Information Systems


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Chapter 1

Changing Environment and its

impact on Business

Can we say

Technology Transforms the

Organization ?!!


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Whats my return on investmenton e-commerce?

Are you crazy? This is the

Columbus of the New World.

What was his ROI?

- Andrew Grove, Intel Chairman


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Some Numbers 1/2

The online retail industry isexpected to touch INR 7000 crore by

2015 (from current INR 2000 crore)

The annual growth of onlinetransactions is 50% every year

Over 65% of Mumbai population

and 45% of Delhi Population shoponline

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Some Numbers 2/2

By June 2010, More than 99 millionbusinesses worldwide had dotcom

Internet sites registered

The Singles Day (November 11, 2011)created a history for Chinas 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


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Value Chain - Primary

In-bound

Operations

Outbound

Marketing/Service

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Value Chain Secondary

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HR

Purchase

Finance

Legal


10/21Prepared and Presented by Prashant P Jani

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Web and CompetitivenessThe Internet has affected the five

forces by Lowering entry barriers for new firms

Creating substitutes for traditionalbusinesses (Stock trading and music)

Creating new markets that change theway buyers and supplies interact

Amazon.com has no physical stores andhence a smaller infrastructure which iseasier to manage

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Business Today

Manufacturing

and production

Accounting and

financeEngineering

and

research

Supply chain management:

procurement, distribution, and

logistics

Customer relationship

management: Marketing,

Sales, Customer Service

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The Challenges of Change

Within organizations

Organizational structure

Interorganizational relations

The economy

Education

National development

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Metrics for Business Impact

Market share

Number of markets in which a

firm participates

Number of new markets

Sales growth

Size of the average sale

Sales per employee

Prepared and Presented by Prashant P Jani1 -14


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Lean and Agile Manufacturing,

Mass CustomizationThe Dell Model

Phone and Internet orders

Little or no in-process inventory

No finished goods inventory

Purchasing agreements with

companies, universities, andgovernment agencies

Customized Web ordering pages



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Dells Inventory Turnover

DataYear Inventory Turnover Week's Inventory

1992 4.79 10.8561993 5.16 10.078

1994 9.4 5.5321995 9.8 5.3061996 24.2 2.1491997 41.7 1.2471998 52.40 0.992

1999 52.40 0.9922000 51.4 1.0122001 63.50 .819

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The Impact

Will increase the size of themanageable span of control for

managers by decreasing the costs

and difficulties of informationhandling (and thus reducing the

costs of coordination)

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The Impact

The more efficient automated systems willeliminate 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 managers 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 hecan best structure his company to its environment

and thus improve its competitive posture

competitive posture

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Campus Overview

907/A Uvarshad,

Gandhinagar

Highway, 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.


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changing environment and its impact on business presentation - unitedworld school of business

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