Chapter 2 Major Business Initiatives: Gaining Competitive Advantage with IT Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
STUDENT LEARNING OUTCOMES 1. Define supply chain management (SCM) systems and describe their strategic and competitive opportunities 2. Define customer relationship management (CRM) systems and describe their strategic and competitive opportunities 3. Define e-collaboration and describe its strategic and competitive opportunities 2-2
STUDENT LEARNING OUTCOMES 4. Discuss the impact IT culture has on technology choices and their implementations within an organization. 5. 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. How many Web sites can you think of that use crowdsourcing, that is, have nonemployees provide value? 2. What other industries traditionally believe that you shouldn’t share sensitive and strategic information? 3. How have you participated in the concept of crowdsourcing as a “nonpaid nonemployee?” 2-6
CHAPTER ORGANIZATION 1. Supply Chain Management Learning Outcome #1 2. Customer Relationship Management Learning Outcome #2 3. E-Collaboration Learning Outcome #3 4. IT Culture Learning Outcome #4 5. 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 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 e- collaboration 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