1. Management Information Systems
Islamia University of Bahawalpur
Delivered by:
Tasawar Javed
Lecture 10

2. The Role of Information Technology
Overview of Chapter

3. The Role of Information Technology
Connection to the internet will not, of itself, deliver e-business. Suitable hardware, software and business processes have to be in place. Here are some examples of how e-business could affect various business areas.
Business Area
Where e-business could impact
Strategic aim
R&D
Internet used for research purpose
Access to research database
Access to patent database
To be a leader in innovation. To develop unique, differentiated products
Design
CAD
Fast production of new designs & products. CAD will make designs cheaper and faster

4. The Role of Information Technology
Business area
Where e-business could impact
Strategic aim
Manufacturing/ service provision
CAD manufacturing
JIT inventories
Flexible, low cost, but tailored to customers requirement
Communication with customers
Website and
Inbound logistics
Organization of the supply chain
Low cost, low inventory balances, flexible manufacturing
The buy side e-commerce transactions
Automating the purchases cycle
Low cost as less human intervention
Outbound logistics
Organization of the distribution chain
Low cost, low inventory balances, fast delivery to customers
The sell side e-commerce transactions
Automating the sales cycle
Low cost as less human intervention, greater accuracy

5. The Role of Information Technology
Making websites interactive
Search
Online forms
Members only section to the site
Interactive questionnaires/surveys/polls
Animation
Subscription list
Links to other sites
Downloadable files
Contact us
Site map
Text only version of the site
Multilingual requirement
Provision for printing and bookmarking

6. Supply Chain Management
Many business prosper or fail depending on the success of their relationship with their suppliers and with those who they supply. The use of IT and internet can provide efficiency to supplying the links involve the supply chain and to the consumer.
Raw material and then transformation to the finished goods all activities included between these two are encompasses in SCM
Nodes in the supply chain includes supplier, manufacturer, wholesaler then retailer and to the final consumer
Upstream (transaction between firm and supplier) and Down stream (customers) SCM

7. SCM
The transformation of product from node to node includes activities such as:
Production planning
Purchasing
Materials management
Distribution
Customer service
Forecasting
when each firm can be competitive through improvements to its internal practices, ultimately the ability to do business effectively depends on the efficient functioning of the entire supply chain

8. SCM
Managing the Chain
Managing the chain primarily concentration on managing the movement of the following three areas:
Materials/inventory
Information
Funds
Inventory control
Amongst other things, this will include a consideration of:
Number, location and size of warehouses and distribution centres
Production scheduling; new products can be integrated in supply chain
A transportation strategy (routes, timings)

9. SCM Information Management Fund Management Importance of IT
Key elements
Potential levels of end-user and customer demand
Daily production and distribution plans
Resource availability and utilization
Fund Management
Sufficient funds available
Avoid disruption
Supply chain sustained
Strong relation of trust
Importance of IT
Providing, storing, managing, and interrogating the Information Management part of SCM
IT can provide aid for that business areas

10. SCM
For example; a wholesaler’s inability to adequately maintain inventory control or respond to sudden changes in demand for stock may mean that a retailer can not meet final consumer demand. Conversely, poor sales data from retailers may result in inadequate forecasting of manufacturing requirements.
Push vs Pull
Push = supplier-led.
Pull = customer/ market led. Consumers have a direct voice in the functioning of the supply chain.
This is what e-commerce facilitates and this was very rare prior to the development of e-commerce. Many businesses have developed this further into upstream SCM

11. SCM
In the pull model, customers use electronic connections to pull whatever they need out of the system
Electronic supply chain connectivity gives end customers the opportunity to give direction to suppliers, for example, about the precise specifications of the products they want
Ultimately, customers have a direct voice in the functioning of the supply chain
E-commerce creates a much more efficient supply chain that benefits both customers and manufacturers. Companies can better serve customer needs, carry fewer inventories, and send products to market more quickly

12. Porter’s value Chain Revisited
The profit can be generated by adding the such activities in the business area that customer value and willing to pay for it. It could be skill and knowhow related, organizational or manufacturing
The traditional value chain has been criticised because it
Is designed primarily to describe manufacturing business
Doesn’t emphasise the importance of the customer enough. It is product led rather than market led

13. Porter’s Value Chain Revisited
Manage selling, delivery etc
Market Research
New products
development
Market products
Purchase materials
Produce products

14. Porter’s Value Chain Revisited
In terms of this model, e-business enables companies to:
Carry out continues market research as products are ordered and sold
Use the results of continuous to order goods, design new products and design special offers
Allow great flexibility and speed of response, provided members of the up-stream supply chain (suppliers) also embrace e-business
The whole supply chain must be flexible and efficient it any one member of its is to benefit from better market information. There’s no point one company knowing what its customers want if its suppliers and distributors cannot respond adequately

15. Porter’s Value Chain Revisited
Obviously, if e-business capability is present in all members of the supply chain, management of the chain is becoming more feasible: selling, delivering, ordering, designing, and manufacturing can all be linked electronically permitting:
Cost saving
Time savings
Faster innovations
Better marketing
Better quality

16. Thank you!!!
Q&A