© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 1 Chapter 8 Competitive Advantage with Information Systems across Organizations

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 2 Agenda 1.How do inter-organizational information systems provide competitive advantages? 2.What are the major categories of inter- organizational information systems? 3.How do inter-organizational information systems benefit small businesses?

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 3 Information Systems That Cross Organizations Integration of multiple-company operations Selling Purchasing Check-clearing Credit card processing

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 4 Value Chain Activities across Organizations Figure 8-1

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 5 Inbound Logistics Manufacturers Acquisition, inventory, and control of raw materials and parts Non-manufacturers Acquisition, inventory, and control of finished products ( retail) Operations activities only

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 6 Customer-Centric Activities Principal flows concern activities with customer Solicitation/order, shipment, query/response Facilitates organization’s competitive strategy Information systems must be designed to support different strategies Lowest cost vendor Dell Computers (Comp. Strategy = low cost ) Differentiation based on quality Laguna Tools ( Comp. Strategy = high end tools)

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 7 Categories of Inter-Organizational Information Systems E-commerce Customer relationship management (CRM) Supply chain management (SCM) Inter-organizational transactional processing

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 8 E-Commerce Buying and selling goods and services over the Web Vendors sell from Web-storefronts Web servers process http protocol Operate order-entry application software Customers access through Web browsers - Thin Client Types: B2C, B2B, B2G

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 9 Examples B2C: Amazon.com B2B:experian.com B2G:govcommerce.net

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 10 Customer Relationship Management (CRM) Track interaction with customers Discussed extensively in previous chapters

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 11 Supply Chain A network of activities, such as manufacturing plants, suppliers, distribution centers, retail outlets, people, and information, which are linked together into processes supplying goods/services from source through consumption.

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 12 Supply Chain Management (SCM) The integration of suppliers, distributors, and customer logistics requirements into one cohesive process. Close linkage and coordination of activities involved in buying, making, and moving a product Reduces time, redundant effort, and inventory costs

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 13 Supply Chain Management (SCM) Helps in distribution of the finished products to customers Includes reverse logistics : returned items flow in the reverse direction from the buyer back to the seller

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 14 SCM Specific Functions

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 15 Supply Chain Management and Collaborative Commerce

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 16 How Information Systems Facilitate Supply Chain Management Decide when, what to produce, store, move Rapidly communicate orders Track the status of orders Check inventory availability, monitor levels Track shipment Reduce paperwork Plan production based on actual customer demand Rapidly communicate product design change Share information about defect rates, returns Provide product specifications

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 17 E-Commerce E-Commerce Video Supply Chain Video Supply Chain Case Study Xbox supply chain

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 18 Inter-Organizational Transaction Processing Systems process routine transactions between organizations Oldest form of cross-organizational is Automated check clearing Handles repetitive tasks Examples: automatic payroll deposits, automatics payroll-deduction, credit-card processing

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 19 Technology required for inter- organizational IS

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 20 Benefits of Inter-Organizational Systems for small businesses Small businesses can outsource most activities ( e- bay) Small businesses avoid time and expense of building infrastructure Reduces capital requirement Requires fewer employees Lowers payroll and associated costs Shortens time to market

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 21 Make money on ebay

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 22 Interorginizational Enable Outsourcing

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 23 Future Store RFID Video store.org/servlet/PB/menu/ _l2/index.h tml store.org/servlet/PB/menu/ _l2/index.h tml

© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke Slide 24 SAP SOLUTIONS FOR RFID: RFID-Enabled Supply Chain Management Understand how SAP SCM supports exception management and fulfillment tracking, RFID-enabled warehouse operations, and proof of delivery and alert notification. Watch the demo. – Log-in required.Watch the demo