First Quiz 1 Tuesday February 7 th Will cover chapters 1 (except pages 16-29), 2 and appendix A

Chapter 2 MAJOR BUSINESS INITIATIVE Gaining competitive advantage with IT MAJOR BUSINESS INITIATIVE Gaining competitive advantage with IT

SUPPLY CHAIN MANAGEMENT Distribution chain – the path followed from the originator of a product/servic e to the end consumer

What are Supply Chain Management Systems? Supply chain management (SCM) - tracks inventory and information among business processes and across companies Supply chain management (SCM) system - an IT system that supports supply chain management activities by automating the tracking of inventory and information among business processes and across companies

What are Supply Chain Management Systems?

Strategic and Competitive Opportunities with SCM A well-designed supply chain management system helps by optimizing: –Fulfillment –Logistics –Production –Revenue and profit –Spend

Challenges to Success with Supply Chain Management Executives must recognize its importance Work closely with customers and suppliers Your IT systems and the IT systems of your customers and suppliers must be integrated Your SCM systems must continuously adapt to changing conditions

CUSTOMER RELATIONSHIP MANAGEMENT Two success stories with customer relationship management –Wells Fargo Bank sells four additional banking products to customers compared with an industry average of 2.2 –The American Cancer Society is better able to target large donors

What are Customer Relationship Management Systems? Customer relationship management (CRM) system - uses information about customers to gain insights into needs, wants, and behaviors in order to serve them better

Strategic and Competitive Opportunities with CRM More effective marketing campaigns based on customer needs and wants Assuring the sales force is efficiently managed Providing superior after-sale service and support

What are Business Intelligence Systems? Business intelligence (BI) – knowledge about your customers, your competitors, your business partners, your competitive environment, and your own internal operations – that gives you the ability to make effective, important, and often strategic business decisions.

What are Business Intelligence Systems?

The objective of BI is to help knowledge workers understand –Capabilities available in the firm –State of the art, trends, and future directions in the market –Technological, demographic, economic, political, social, and regulatory trends –Actions of competitors

Strategic and Competitive Opportunities with BI BI systems provide managers with –Actionable information and knowledge –At the right time –At the right location –In the right form

IT Support for Business Intelligence There are many software companies in the BI field Digital dashboard - displays key information gathered from several sources on a computer screen in a format tailored to the needs and wants of an individual knowledge worker

What are Integrated Collaboration Environments? Social network system - an IT system that links you to people you know and, from there, to people your contacts know –Build your network –Find the people you need –Make a trusted contact

E-Collaboration Use of IT to support Work activities Knowledge management Social networking with social networking systems Learning with e-Learning tools

IT Culture-organizational perspective How IT structure is placed within an organization (see figure 50) Top-down Matrix Fully integrated throughout the organization

ERP Putting it all together see figure 2.9

How do you think a company like Wal-Mart uses SCM & ERP systems to gain competitive advantage?

Case Coca _cola p 56 Q2 Q6