Chapter 2
Major Business Initiatives: Gaining
Competitive Advantage with IT
McGraw-Hill/Irwin
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
STUDENT LEARNING OUTCOMES
1.
2.
3.
Define supply chain management (SCM)
systems and describe their strategic and
competitive opportunities
Define customer relationship management
(CRM) systems and describe their strategic
and competitive opportunities
Define e-collaboration and describe its
strategic and competitive opportunities
2-2
STUDENT LEARNING OUTCOMES
4.
5.
Discuss the impact IT culture has on
technology choices and their
implementations within an organization.
Explain the significance of enterprise
resource planning (ERP) software as the
integration of functional software systems.
2-3
NONPAID, NONEMPLOYEE
COLLABORATION: A NEW KIND OF
BUSINESS MODEL




IT-enabled collaboration can be powerful
Extends empowerment beyond employees
to include customers (and others)
This is called crowdsourcing
Goldcorp did it and made over $3 billion on
a $500,000 investment
2-4
NONPAID, NONEMPLOYEE
COLLABORATION: A NEW KIND OF
BUSINESS MODEL



Goldcorp published on the Web all its
information regarding a 55,000-acre
property
It invited anyone to submit ideas of where
gold might be and how to extract it
Goldcorp received thousands of ideas, some
of which yielded $3 billion in gold
2-5
Questions
1.
2.
3.
How many Web sites can you think of that
use crowdsourcing, that is, have
nonemployees provide value?
What other industries traditionally believe
that you shouldn’t share sensitive and
strategic information?
How have you participated in the concept of
crowdsourcing as a “nonpaid
nonemployee?”
2-6
CHAPTER ORGANIZATION
1.
Supply Chain Management

2.
Customer Relationship Management

3.
Learning Outcome #3
IT Culture

5.
Learning Outcome #2
E-Collaboration

4.
Learning Outcome #1
Learning Outcome #4
Enterprise Resource Planning

Learning Outcome #5
2-7
SUPPLY CHAIN MANAGEMENT

Supply chain management (SCM)

Supply chain management (SCM) system

Just-in-time (JIT)
2-8
Dell’s Effective SCM Through JIT
2-9
Supply Chain Management

Most supply chains use inter-modal
transportation

This creates supply chain complexities
2-10
Opportunities of SCM

Business strategy
2-11
IT Support for SCM


SCM systems pioneered by specialist
companies
SCM is now part of ERP software
(discussed later)
2-12
CUSTOMER RELATIONSHIP
MANAGEMENT

Customer relationship management (CRM)
system
2-13
Customer Relationship Management
2-14
Customer Relationship Management

Sales force automation (SFA) systems
2-15
GM’s Sales Force Automation (Purchase
Funnel)
2-16
Opportunities of CRM

Business strategy

Classic goals
2-17
IT Support for CRM

Front-office systems

Back-office systems
2-18
IT Support for CRM
2-19
IT Support for CRM
2-20
E-COLLABORATION
2-21
Integrated Collaboration Environments

Integrated collaboration environment (ICE)

Virtual team

An ICE can be as basic as e-mail or more
sophisticated as in
2-22
Knowledge Management Systems

Knowledge management (KM) system
2-23
Social Networking Sites & Systems

Social networking site

Social networking system
2-24
E-Learning Tools
2-25
Informal Collaboration
2-26
Opportunities of E-Collaboration
2-27
IT Support for E-Collaboration
Just a few of the literally hundreds of ecollaboration tools
2-28
IT CULTURE

IT culture – refers to
2-29
IT Function Structural Placement

Top-down
silo
2-30
IT Function Structural Placement

Matrix
2-31
IT Function Structural Placement

Fully
integrated
2-32
IT Culture Philosophical Approach
2-33
IT Culture Philosophical Approach
2-34
ENTERPRISE RESOURCE PLANNING


How do you bring together SCM, CRM, and
e-collaboration systems? With an ERP
system.
Enterprise resource planning (ERP)
system
2-35
ENTERPRISE RESOURCE PLANNING
2-36
Major ERP Vendors
2-37
ERP
2-38
ERP Integrates Everything
2-39