Presentation on theme: "STUDENT LEARNING OUTCOMES"— Presentation transcript:
1 Chapter 2 MAJOR BUSINESS INITIATIVES Gaining Competitive Advantage with IT
2 STUDENT LEARNING OUTCOMES Define supply chain management (SCM) systems and describe their strategic and competitive opportunitiesDefine customer relationship management (CRM) systems and describe their strategic and competitive opportunitiesDefine e-collaboration and describe its strategic and competitive opportunities
3 STUDENT LEARNING OUTCOMES 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.
4 SMACK – GROUP OF JELLYFISH OR SHOPPING? A smack is bothSmack shopping occurs atThat site uses a reverse auction formatSellers post items at a decreasing priceBuyers jump in and buy when the price is acceptable
5 Social Commerce Shopping Buyers talk on chat boardsThey encourage each other not to buy too earlyThis is called social commerce shoppingJellyfish.com has over 100,000 people participating
6 QuestionsDo you use a live auction site like eBay? How does it differ from Jellyfish?Visit Jellyfish.com. What is the process of becoming a participant?What sort of products would be best suited for a reverse auction format?
8 SUPPLY CHAIN MANAGEMENT Supply chain management (SCM) – tracks inventory and information among business processes and across companiesSupply chain management (SCM) system – IT system that supports supply chain management activities by automating the tracking of inventory and information among business processes and across companies.Just-in-time (JIT) – method for producing or delivering a product or service just at the time the customer wants itKey feature of effective SCMDell uses JIT to deliver custom computers
10 Supply Chain Management Most supply chains use inter-modal transportation, multiple transportation channels (railway, truck, etc) to move products from origin destinationThis creates supply chain complexities
11 Opportunities of SCM Business strategy Overall cost leadershipBottom-line initiativeRunning the organization (RGT) frameworkGoal is to squeeze out every penny of cost possible in the supply chainThis will optimize fulfillment, logistics, production, revenue and profit, and cost and price
12 IT Support for SCM SCM systems pioneered by specialist companies SCM is now part of ERP software (discussed later)Learn moreSupply Chain Knowledge BaseSupply Chain Management Reviewi2 TechnologiesCIO MagazineAbout Inc.Oracle/PeopleSoft Supply Chain
13 CUSTOMER RELATIONSHIP MANAGEMENT Customer relationship management (CRM) system – uses information about customers to gain insight into their needs, wants, and behaviors in order to serve them betterIncludes multi-channel service delivery, multiple ways in which customers can interact with a businessFocuses onSales force automationCustomer service and supportMarketing campaign management and analysis
15 Customer Relationship Management Sales force automation (SFA) systems – automatically track all the steps in the sales processSales lead trackingListing potential customersContact managementMarket and customer analysisProduct configurationGetting repeat customers
17 Opportunities of CRM Business strategy, the primary focus of CRM: Differentiation and focusTop-line initiativeGrowing the organizationClassic goalsTreating customers betterUnderstanding their needs and wantsTailoring offeringsProviding “delightful” experiences
18 IT Support for CRMFront-office systems – primary interface to customers and sales channelsBack-office systems – fulfill and support customer ordersBoth interface to CRM database and analysis and reporting systems
20 IT Support for CRMLike, SCM systems, CRM was pioneered by specialist companiesLike SCM, CRM is now part of ERP software (discussed later)Learn moreSiebel SystemsSalesforce.comCIO MagazineCRM TodaydestinationCRM.com
21 E-COLLABORATION E-collaboration is the use of technology to support Work activities with integrated collaboration environmentsKnowledge management with knowledge management systemsSocial networking with social networking systemsLearning with e-learning toolsInformal collaboration to support open-source information
22 Work Activities with Integrated Collaboration Environments Integrated collaboration environment (ICE) – environment in which virtual teams do their workVirtual team – team whose members are located in varied geographical locationsAn ICE can be as basic as or more sophisticated as inWorkflow system – facilitate the automation and management of business processes (processing a loan in a bank, processing a sales order, etc)Document management system – manages a document through all stages of processing
23 Knowledge Management Systems Knowledge management (KM) system – IT system that supports the capturing, organizing, and dissemination of knowledge throughout the organizationKnowledge of factsSources of informationSolutions, patents, and trademarksBest-practice processesAvailable to all employees whenever needed
24 Social Networking Sites & Systems Social networking site – site on which you post information about yourself, create a network of friends, read about other people, share content such as photos and videos, and communicate with other people (e.g., Myspace, Facebook, etc)Social networking system – IT system that links you to people you know and, from there, to people your contacts knowMore business focused
25 E-Learning Tools Facilitate learning on IT-enabled platforms WebCT, Blackboard, and e-CollegeUsed in education environments and also in business environments
26 Informal Collaboration to Support Open-Source Information Previous e-collaboration tools have “organizational” focusInformation collaboration tools focus on “informal” groups of people getting togetherWiki – allows you – as a visitor – to create, edit, change, and often eliminate contentSuch content is called open-source information, content that is publicly available, free of charge, and most often updateable by anyone
27 Opportunities of E-Collaboration Good for just about every type of business strategyFocus, differentiation, and overall cost leadershipTop line and bottom lineRun, grow, and transform
28 IT Support for E-Collaboration Just a few of the literally hundreds of e-collaboration tools
29 IT CULTURE IT culture – refers to How the IT function is placed structurally within an organizationThe organization’s philosophical approach to the development, deployment, and use of IT
30 IT CULTURE- Structuring the IT Function The most common ways for placing IT functions in an organization:Top-down siloMatrixFully integrated throughout the organization
31 IT Function Structural Placement Top-down silo – create a department or IT function to handle all IT needs; strong “command and control” structure
32 IT Function Structural Placement Matrix – Separate IT department but decision making is “matrixed” across the organization
33 IT Function Structural Placement Fully integrated– separate IT function but IT personnel are placed within functional areas; tremendous empowerment
34 IT Culture Philosophical Approach Horizontal axis ranging from:“Wait and see” Whether emerging technologies prove themselves before adopting themToEarly adopters of technologyVertical axis ranging from:“Greatly decentralized” Fully integrated through the organization“Greatly centralized” Top-down silo
35 IT Culture Philosophical Approach Top-right quadrant : Decentralized, early adopters of technologySupport technology innovation failure, a reward system for trying new technologies even if they prove to be unsuccessfulBottom-left quadrant : Centralized, wait and seeRequire ROI (Return On Investment) before adopting new technologies
37 ENTERPRISE RESOURCE PLANNING How do you bring together SCM, CRM, and e-collaboration systems? With an ERP system.Enterprise resource planning (ERP) system – collection of integrated software for business management, accounting, finance, supply chain management, inventory management, customer relationship management, e-collaboration, etc.
40 ERP Attempts to integrate everything Think about your school CRM drives what SCM will produceEveryone works together in e-collaborationThe entire organization knows the entire organizationThink about your schoolCan you register for class with a bill outstanding?Can you register for a class for which you haven’t completed the prerequisite?