1. BCIS 401 Information Systems for Management Electronic Commerce

2. BCIS 401 Information Systems for Management Value Chain Models

3. BCIS 4013 Physical Value Chain Model A series of value adding activities connecting a company’s supply side to its demand side Analysis of the PVC has allowed managers to redesign internal & external Processes to improve efficiency and effectiveness VCM treats information as a supporting element of the value adding process, not as a source of value itself

4. BCIS 4014 Virtual Value Chain Model VVC exists in the market space Value-adding process unique to the information world are required to turn raw information into new market space services and products Creating value in any stage of a VVC involves a sequence of five activities –Gathering, organizing, selecting, synthesizing and distributing information

5. BCIS 4015 Mixing the Physical & Virtual Companies that do business in both the market place and the market space exploit both the PVC and VVC To be successful these chains must be managed distinctly but in concert Companies that adopt value-adding information processes generally do so in three stages

6. BCIS 4016 Stages of Adoption of Value- Adding Information Process Visibility Mirroring Capability Value matrix

7. BCIS 4017 Visibility Companies acquire an ability to “see” physical operations more effectively through information Large scale IS used by managers to coordinate activities in their PVC Foundation laid for a VVC

8. BCIS 4018 Mirroring Capability Companies substitute virtual activities for physical ones Companies begin to create a parallel value chain in the market space Establishing space-based relationships allows companies to extract value from the space

9. BCIS 4019 Value Matrix Manager’s draw on information in their VVC to deliver value to customers in new ways This is accomplished by applying the generic value adding activities to their VVC and thereby exploit the value matrix

10. Physical Value Chain Virtual Value Chain Gather Organize Select Synthesize Distribute New markets ValueValue MatrixMatrix

11. BCIS 40111 Marshall Industries Junction Box Model

12. Level 1 Junction Box Clean conduit for transactions

13. BCIS 40113 Level 1 Streamlining for cost, efficiency, and basic reliability Quality Order Booking, Resell App. (QOBRA) Automated Shipping and Receiving System (AS/RS) Aimed at supporting basic operational capabilities.

14. Level 2 Junction Box Internal Integration Intelligently connecting the Insides to better connect the Outside.

15. BCIS 40115 Level 2 Marshall Net - The Intranet –Automates Routine Processing –Frees up employees to provide value to customers –Supports approximately 400 field sales employees

16. Level 3 Junction Box Empowering the Outsides to more intelligently connect to the Insides through multiple modes of service.

17. BCIS 40117 Level 3 Redesigning Business Processes to provide 24x7 customer service Marshall on the Internet –Dynamic Web site –Order tracking via UPS, on Marshall’s site EDI Connect to Marshall’s engineers on-line

18. Level 4 Junction Box Customizing the connections to the Outside for added value.

19. BCIS 40119 Level 4 Establish Extranet –PartnerNet - Draws visits from ~1,300 customers & suppliers daily –Integrated with QOBRA, DRP, sales force applications –Enables integration of complete purchasing cycle Market Intelligence System –MAP - Marshall Account Profile Planner

20. Level 5 Junction Box Leveraging knowledge in the Insides and Outsides for value innovation

21. BCIS 40121 Level 5 DRP MAP Electronic Design Centers –Provides design information & simulation ability to customers

22. Level 6 Junction Box Prototyping future opportunities for value innovation

23. BCIS 40123 Level 6 Be Proactive in planning its future in the face of the accelerating rate of new ITs Build IT platforms that serve to prototype the future. Marshall’s Strategic R&D –Net Seminar - Brings together Suppliers & Customers to design new products –Education news and entertainment network