• First Quiz 1 Tuesday February 7th
• Will cover chapters 1 (except pages 16-29), 2
and appendix A
Chapter 2
MAJOR BUSINESS
INITIATIVE
Gaining competitive
advantage with IT
SUPPLY CHAIN MANAGEMENT
• Distribution
chain – the
path followed
from the
originator of a
product/servic
e to the end
consumer
What are Supply Chain Management
Systems?
• Supply chain management (SCM) - tracks
inventory and information among business
processes and across companies
• Supply chain management (SCM) system an IT system that supports supply chain
management activities by automating the
tracking of inventory and information among
business processes and across companies
What are Supply Chain Management
Systems?
Strategic and Competitive
Opportunities with SCM
• A well-designed supply chain management
system helps by optimizing:
–
–
–
–
–
Fulfillment
Logistics
Production
Revenue and profit
Spend
Challenges to Success with Supply
Chain Management
• Executives must recognize its importance
• Work closely with customers and suppliers
• Your IT systems and the IT systems of your
customers and suppliers must be integrated
• Your SCM systems must continuously adapt
to changing conditions
CUSTOMER RELATIONSHIP
MANAGEMENT
• Two success stories with customer
relationship management
– Wells Fargo Bank sells four additional banking
products to customers compared with an industry
average of 2.2
– The American Cancer Society is better able to
target large donors
What are Customer Relationship
Management Systems?
• Customer relationship management
(CRM) system - uses information about
customers to gain insights into needs, wants,
and behaviors in order to serve them better
Strategic and Competitive
Opportunities with CRM
• More effective marketing campaigns based
on customer needs and wants
• Assuring the sales force is efficiently
managed
• Providing superior after-sale service and
support
What are Business Intelligence
Systems?
• Business intelligence (BI) – knowledge
about your customers, your competitors, your
business partners, your competitive
environment, and your own internal
operations – that gives you the ability to
make effective, important, and often strategic
business decisions.
What are Business Intelligence
Systems?
What are Business Intelligence
Systems?
• The objective of BI is to help knowledge
workers understand
– Capabilities available in the firm
– State of the art, trends, and future directions in
the market
– Technological, demographic, economic, political,
social, and regulatory trends
– Actions of competitors
Strategic and Competitive
Opportunities with BI
• BI systems provide managers with
–
–
–
–
Actionable information and knowledge
At the right time
At the right location
In the right form
IT Support for Business Intelligence
• There are many software companies in the BI
field
• Digital dashboard - displays key information
gathered from several sources on a computer
screen in a format tailored to the needs and
wants of an individual knowledge worker
What are Integrated Collaboration
Environments?
• Social network system - an IT system that
links you to people you know and, from there,
to people your contacts know
– Build your network
– Find the people you need
– Make a trusted contact
E-Collaboration
Use of IT to support
• Work activities
• Knowledge management
• Social networking with social networking
systems
• Learning with e-Learning tools
IT Culture-organizational perspective
How IT structure is placed within an
organization (see figure 50)
• Top-down
• Matrix
• Fully integrated throughout the organization
ERP
• Putting it all together
• see figure 2.9
• How do you think a company like Wal-Mart
uses SCM & ERP systems to gain
competitive advantage?
Case Coca _cola p 56
• Q2
• Q6