TOPIC 1: GAINING COMPETITIVE ADVANTAGE WITH IT (CONTINUE) SUPPLY CHAIN MANAGEMENT & BUSINESS INTELLIGENCE

SUPPLY CHAIN MANAGEMENT SCMCRM ERP SOCIAL MEDIA 4 most important IT implementation support business strategies:-

SUPPLY CHAIN MANAGEMENT Supply chain management (SCM) – tracks inventory and information among business processes and across companies Supply chain management (SCM) system – IT system that supports supply chain management Just-in-time (JIT) – method for producing or delivering a product or service just at the time the customer wants it Most supply chains use inter-modal transportation, multiple transportation channels (railway, truck, etc) to move products from origin destination

Strategic & Competitive Opportunities with SCM Business strategy – overall cost leadership SCMs will helps organization optimizing specific supply chain activities such as:- FulfillmentLogisticsProduction Revenue & Profit Cost & Price

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 better Includes multi-channel service delivery, multiple ways in which customers can interact with a business

CUSTOMER RELATIONSHIP MANAGEMENT The focuses of CRM Analytics is now a huge part of CRM. Analytics use hard data to support decision making.

CUSTOMER RELATIONSHIP MANAGEMENT Sales force automation (SFA) systems – automatically track all the steps in the sales process Sales lead tracking Listing potential customers Market and customer analysis Product configuration Getting repeat customers

Strategic & Competitive Opportunities with CRM Business strategy – differentiation & focus Classic goals Treating customers better Understanding their needs and wants Tailoring offerings Providing “delightful” experiences IT support Front-office systems – primary interface to customers and sales channels Back-office systems – fulfill and support customer orders Both interface to CRM database and analysis and reporting systems

ENTERPRISE RESOURCE PLANNING 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.

ENTERPRISE RESOURCE PLANNING ERP Functionality

SOCIAL MEDIA Social media – Web-based and mobile technologies that create interactivity among users, mostly allowing users to be both creators and consumers of content Web 2.0 – second generation of the Web focusing on online collaboration, users as both creators and modifiers of content, dynamic and customized information feeds, and many more engaging technologies

SOCIAL MEDIA Social networking site – site on which you post information about yourself, create a network of friends, read about other people, share content, and communicate with people Social shopping - See what other people are buying and wearing, trying to find the same, and informing others of where the best deals Social playing - MMORPGs (massively multiplayer online role-playing games) is thousands or millions of people play and interact in a robust virtual world

SOCIAL MEDIA Social “Saving the world” – games that support sustainability & triple-bottom-line efforts Social locationing (location-based services) – use of a mobile device & its location to check into locations, find friends & their locations, received rewards & taking advantage of specials based on location.

BUSINESS INTELLIGENCE Business intelligence (BI) – collective information that gives you the ability to make effective, important, and strategic business decisions Analytics – the science of fact-based decision making Both are huge in today’s business world BI not magically appear but must gather & organize all data and information.

BUSINESS INTELLIGENCE Businesses use many IT tools to manage and organize information Online transaction processing (OLTP) – gathering and processing information and updating existing information to reflect the processed information Online analytical processing (OLAP) – manipulation of information to support decision making

BUSINESS INTELLIGENCE Use IT tools to create BI from information Relational Database Model DBMS Tools Data Warehouse & Data Mining

BUSINESS INTELLIGENCE

RELATIONAL DATABASE MODEL Database – collection of information that you organize and access according to the logical structure of the information Relational database – series of logically related two-dimensional tables or files for storing information – Relation = table = file – Most popular database model Data dictionary – contains the logical structure for the information in a database

DBMS TOOLS Database management system (DBMS) – helps you specify the logical requirements for a database and access and use the information in a database 5 components of DBMS:- 1.DBMS engine 2.Data definition subsystem 3.Data manipulation subsystem 4.Application generation subsystem 5.Data administration subsystem

DATA WAREHOUSE & DATA MINING Data warehouse – collection of information (from many places) that supports business analysis activities and decision making The characteristics:- Multidimensional – Rows, columns, and layers Support decision making, not transaction processing – Contain summaries of information – Not every detail

DATA WAREHOUSE & DATA MINING Data-mining tools – software tools you use in a data warehouse environment – Query-and-reporting tools – Artificial intelligence – Multidimensional analysis tools – Digital dashboards – Statistical tools

DATA WAREHOUSE & DATA MINING Information is a resource you must manage and organize to help the organization meet its goals and objectives You need to consider – Strategic management support – Sharing information with responsibility – Information cleanliness

AMN 2012