management information systems islamia university of bahawalpur delivered by: tasawar javed lecture...
DESCRIPTION
Connection to the internet will not, of itself, deliver e- business. Suitable hardware, software and business processes have to be in place. Here are some examples of how e-business could affect various business areas. The Role of Information Technology Business AreaWhere e-business could impact Strategic aim R&DInternet used for research purpose Access to research database Access to patent database To be a leader in innovation. To develop unique, differentiated products DesignCADFast production of new designs & products. CAD will make designs cheaper and fasterTRANSCRIPT
Management Information Systems
Islamia University of Bahawalpur
Delivered by:Tasawar Javed
Lecture 9
Overview of ChapterThe Role of Information
Technology
Connection to the internet will not, of itself, deliver e-business. Suitable hardware, software and business processes have to be in place. Here are some examples of how e-business could affect various business areas.
The Role of Information Technology
Business Area Where e-business could impact
Strategic aim
R&D •Internet used for research purpose•Access to research database•Access to patent database
To be a leader in innovation. To develop unique, differentiated products
Design •CAD Fast production of new designs & products. CAD will make designs cheaper and faster
The Role of Information TechnologyBusiness area Where e-business
could impactStrategic aim
Manufacturing/ service provision
CAD manufacturingJIT inventories
Flexible, low cost, but tailored to customers requirement
Communication with customers
Website and email
Inbound logistics Organization of the supply chain
Low cost, low inventory balances, flexible manufacturing
The buy side e-commerce transactions
Automating the purchases cycle
Low cost as less human intervention
Outbound logistics Organization of the distribution chain
Low cost, low inventory balances, fast delivery to customers
The sell side e-commerce transactions
Automating the sales cycle
Low cost as less human intervention, greater accuracy
Making websites interactive Search Online forms Members only section to the site Interactive questionnaires/surveys/polls Animation Subscription email list Links to other sites Downloadable files Contact us Site map Text only version of the site Multilingual requirement Provision for printing and bookmarking
The Role of Information Technology
Many business prosper or fail depending on the success of their relationship with their suppliers and with those who they supply. The use of IT and internet can provide efficiency to supplying the links involve the supply chain and to the consumer.
Raw material and then transformation to the finished goods all activities included between these two are encompasses in SCM
Nodes in the supply chain includes supplier, manufacturer, wholesaler then retailer and to the final consumer
Upstream (transaction between firm and supplier) and Down stream (customers) SCM
Supply Chain Management
The transformation of product from node to node includes activities such as:
Production planning Purchasing Materials management Distribution Customer service Forecastingwhen each firm can be competitive through improvements to its
internal practices, ultimately the ability to do business effectively depends on the efficient functioning of the entire supply chain
SCM
SCMManaging the ChainManaging the chain primarily concentration on managing the
movement of the following three areas: Materials/inventory Information FundsInventory control Amongst other things, this will include a consideration of: Number, location and size of warehouses and distribution centres Production scheduling; new products can be integrated in supply
chain A transportation strategy (routes, timings)
SCM Information Management
Key elements Potential levels of end-user and customer demand Daily production and distribution plans Resource availability and utilization
Fund Management Sufficient funds available Avoid disruption Supply chain sustained Strong relation of trust
Importance of IT Providing, storing, managing, and interrogating the Information
Management part of SCM IT can provide aid for that business areas
SCMFor example; a wholesaler’s inability to adequately maintain inventory control or
respond to sudden changes in demand for stock may mean that a retailer can not meet final consumer demand. Conversely, poor sales data from retailers may result in inadequate forecasting of manufacturing requirements.
Push vs Pull Push = supplier-led. Pull = customer/ market led. Consumers have a direct voice in the
functioning of the supply chain. This is what e-commerce facilitates and this was very rare prior to the
development of e-commerce. Many businesses have developed this further into upstream SCM
SCMIn the pull model, customers use electronic connections to
pull whatever they need out of the systemElectronic supply chain connectivity gives end customers the
opportunity to give direction to suppliers, for example, about the precise specifications of the products they want
Ultimately, customers have a direct voice in the functioning of the supply chain
E-commerce creates a much more efficient supply chain that benefits both customers and manufacturers. Companies can better serve customer needs, carry fewer inventories, and send products to market more quickly
Porter’s value Chain RevisitedThe profit can be generated by adding the such activities in the
business area that customer value and willing to pay for it. It could be skill and knowhow related, organizational or manufacturing
The traditional value chain has been criticised because it Is designed primarily to describe manufacturing business Doesn’t emphasise the importance of the customer enough. It is
product led rather than market led
Porter’s Value Chain Revisited
Market Research
New productsdevelopment
Market products
Purchase materials
Produce products
Manage selling, delivery etc
Porter’s Value Chain RevisitedIn terms of this model, e-business enables companies to: Carry out continues market research as products are ordered and sold Use the results of continuous to order goods, design new products and
design special offers Allow great flexibility and speed of response, provided members of the up-
stream supply chain (suppliers) also embrace e-business
The whole supply chain must be flexible and efficient it any one member of its is to benefit from better market information. There’s no point one company knowing what its customers want if its suppliers and distributors cannot respond adequately
Porter’s Value Chain RevisitedObviously, if e-business capability is present in all members of the
supply chain, management of the chain is becoming more feasible: selling, delivering, ordering, designing, and manufacturing can all be linked electronically permitting:
Cost saving Time savings Faster innovations Better marketing Better quality
Thank you!!! Q&A