TOPIC 1: GAINING COMPETITIVE ADVANTAGE WITH IT (CONTINUE)

SUPPLY CHAIN MANAGEMENT &

BUSINESS INTELLIGENCE

SUPPLY CHAIN MANAGEMENT

SCM CRM

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:-

Fulfillment Logistics Production

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 PLANNINGERP 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 engine2. Data definition subsystem3. Data manipulation subsystem4. Application generation subsystem5. 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