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Transcript of Management Information Systems
Management Information SystemsManagement Information Systems
Competitive Advantage with Information Systems across Organizations
Chapter 8
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This Could Happen to You
DSI relies on inbound logistics to obtain components and materials
DSI business processes and supporting information systems cross into other organizations
Is there a way to use cross-organizational information systems to gain labor productivity?
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Study Questions
Q1. How do inter-organizational information systems provide competitive advantages?
Q2. What is the potential conflict concerning information systems between customers and vendors?
Q3. What are the major categories of inter-organizational information systems?
Q4. What technology is required for inter-organizational IS?
Q5. How do inter-organizational information systems benefit small businesses?
Q6. How will the increasing use of inter-organizational information systems change organizational structures?
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Q1. Information Systems that Cross Organizations
Integration of multiple-company operationsSelling
Purchasing
Check-clearing
Credit card processing
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Value Chain Activities across Organizations
Figure 8-1
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Inbound Logistics
ManufacturersAcquisition, inventory, and control of raw materials and
parts
Non-manufacturersAcquisition, inventory, and control of finished products
Operations activities only
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Customer-Centric Activities
Principal flows concern activities with customerSolicitation/order, shipment, query/response
Facilitates organization’s competitive strategy
Information systems must be designed to support different strategiesLowest cost vendor
Dell Computers
Differentiation based on quality Laguna Tools
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Q2. Potential Conflicts
Processes and flows exist between both company and customers and company and vendorsFor DSI to minimize cost of ordering, vendor must minimize cost of
selling
Information systems can be designed to minimize processing costs for both customers and suppliersOff-the-shelf software
DSI uses AutoCad
Custom software can be created to achieve mutual benefit
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跨組織的價值鏈活動事務之替代模型
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顧客∕賣家流程的兩個不同觀點
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Q3. Categories of Inter-Organizational Information Systems
E-commerce
Customer relationship management (CRM)
Supply chain management (SCM)
Inter-organizational transactional processing
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E-Commerce
Buying and selling goods and services over the WebVendors sell from Web-storefronts
Web servers process http protocol
Operate order-entry application software
Customers access through Web browsers
E-commerce clients are thin
Types:B2C, B2B, B2G
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Customer Relationship Management (CRM)
Track interaction with customers
Customer may install portion of vendor’s CRM on their system to facilitate purchasingThick-client software
Adds sufficient value to overcome risks of unknown software
Vendor creates competitive advantage Creates high switching costs
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Supply Chain Management (SCM)
Integrates primary inbound logistics business activity
Systems source, order, settle
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SCM系統的某些功能
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Inter-Organizational Transaction Processing
Systems process routine transactions between organizations
Oldest form of cross-organizational ISAutomated check clearing
Handles repetitive tasks
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MIS in Use: Dun and Bradstreet Sells Reports Using E-Commerce
D&B collects and publishes financial data and analysis
Use Web-based e-commerceSite runs 24/7
Saves data entry and administrative costs
Can change product easily
Mines customer purchase information
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Guide: A Trojan Horse?
Manufacturers install programs on distributor’s computers allowing direct ordering from CRMReduces lead time
Smaller inventory
Bypasses security Manufacturer’s programs will be behind firewall
May have access to entire system
How do you balance security and savings?
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Q4. Inter-Organizational Ordering/Selling Systems
Sellers induce buyers with e-commerce and CRM
Buyers want sellers to use SCM
Organization with system is server; organization utilizing system is client
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Technologies Used in Ordering/Selling Systems (1)
EmailLimited capacity
Attachments may be problematic
Security problems
FTPGreater capacity
Can be secured with password protection
Thin-client e-commerceClient needs only browser to participate
No software installed
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Thick-client e-commerceRequires software be installed on client’s system
Security risks
Can produce administrative problems
Joint custom applicationsBoth organizations meet to establish requirements
System jointly designed
Technologies Used in Ordering/Selling Systems (2)
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顧客在跨組織科技選擇上成本的連續
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Q5. Benefits of Inter-Organizational Systems
Organizations can focus on their core competenciesCan outsource most activities
Avoid time and expense of building infrastructure Reduces capital requirement
Requires fewer employees Lowers payroll and associated costs
Shortens time to market
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跨組織資訊系統讓價值鏈活動事務能外包出去
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Inter-organizational information systems produce virtual organizationsValue chain activities shared among several entities
Organizations look for the opportunity cost of time of employee performing activity to be greater than cost of outsourcing
Employees should work in business activity that is directly in line with organization’s specialty, or may be outsourced
Q6. Resulting Changes in Organizational Structure from Outsourcing
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Ethics Guide: The Ethics of Supply Chain Information Sharing (1)
Distributor has developed information system that reads data up and down supply chainBecause you can read both directions, you know retailers are in
need of product and manufacturer’s inventory is low. Believing you have only supply, you increase price claiming extra transportation costs.
Competitor has large supply as well and does not increase price, so you sell no product. You want to track competitor’s inventories, which can be estimated from information gained from reading supply chain.
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Your agreement with customers permits you to query their inventory levels for orders they have with you. System has a flaw and allows you to query all orders.
Your agreement with customers permits you to query their inventory levels for orders they have with you. Another retailer’s security is flawed. One of your developers writes a program allowing you to exploit the flaw and view all of their information.
Ethics Guide: The Ethics of Supply Chain Information Sharing (2)
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How Does This Knowledge Help You at DSI? (1)
Inter-organizational information systems can be used to improve the in-bound logisticsDSI sends ftp AutoCad files to manufacturers and
fabricators
Each project is color coded, and the parts are color coded for easy identification
DSI does not use JIT system Must move components in inventory
Would require serious procedural changes
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Could use RFID tags for easier locating of partsSave labor
Reduces damage because of less handling
How Does This Knowledge Help You at DSI? (2)