Management Information Systems Islamia University of Bahawalpur Delivered by: Tasawar Javed

Learning objectives  Managing physical resources---SCM  Competitive Advantage  Porter’s Value Chains Information System For Competitive Advantage

As we know environment is very important in the firm’s success Firm exist for the purpose of providing products and services that meet environment needs Environment varies firm to firm School is different than sports ground and so on The environmental elements are organizations & individuals that exist outside the firm These elements exist in a larger system called a society The Firm in its environment

society The Firm in its environment The Firm Financial community Government Stake holder or owners suppliers Labor union Global community customers Competitors

Managing the physical resource Flow - SCM Manage resources from supplier to firms and then to customers It should be timely and efficient It includes following activities:  Forecasting customer demand  Scheduling production  Establishing transportation networks  Ordering replenishment stock from supplier  Receiving stock from suppliers  Managing inventory- RM, work in process, finished goods  Executing production  Transporting resources to customers  Tracking the flow of resources from supplier, through the firm & customers

Supply Chain Management & ERP system  SCM is only one aspect of ERP systems,  It play a crucial role in operations.  The use of the same ERP system vendor SAP, Oracle by members in the supply chain helps to facilitate the flow of supply chain information  Cost of ERP system can be high, and not every member in a supply chain may wish to purchase ERP SW  Powerful member can put pressure on suppliers, to use ERP system such as Wal-Mart

Firm strive to obtain competitive advantage over others By  Providing low prices  High quality  Meet special needs Firm can also achieve competitive advantage through the use of its virtual resources Managers use virtual as well as physical resources in meeting the strategic objectives of the firm Competitive Advantage

Micheal porter identified with the topic of CA He provides guidelines and strategies for firms attempting to gain an advantage over the competitors It includes:  Primary activities  Secondary activities Porter’s Value Chain

Primary Activities  Inbound logistics  Operations  Outbound logistics  Marketing and sales  Services Secondary Activities  Firm infrastructure  HRM  Technology development  Procurement Porter’s Value Chain

CA can be realized in terms of achieving  Strategic  Tactical  Operational advantages Dimensions of CA Supplier Value Chain Supplier Value Chain Firm’s Value Chain Firm’s Value Chain Customer Value Chain Customer Value Chain

Dimensions of CA Strategic advantage  Fundamental effects in shaping the firm’s operations  IS can be used to create a strategic advantage  Eg A firm may decide to convert all of its existing data into database with standard interfaces for possible sharing with business partners and customers. Standardized database accessible via web browsers would reflect a strategic shift in corporate position It can affect in number of ways Existing access may be via proprietary computer software and change would cause the firm to consider purchasing standard reporting software from an outside vendor or hiring an outside firm to design and develop the new reporting systems. Direct access to firm’s computer resources Supplier and customer anywhere in the world would be able to access firm’s raw material & finished goods inventory level, speeding the firm’s buying and selling transactions.

Tactical Advantage  A firm achieve when it implements a strategy in a better way than its competitor  For example Customer service may be enhanced by offering customers direct access to information Customer satisfaction results in repeat purchases A customer wishes to purchase 150$ worth of computer paper from your firm These purchases are routine IS notes that the customer has made purchases totaling 800$ during month and discount is offered if it goes over 1000$ during month So this example says that customer is just 50$ behind discount It can help firm to achieve CA How let see…………… Dimensions of CA

It can help firm in these ways  Customer sees the 5% discount as a reason to continue purchasing products from the firm  IS may suggest which products the customer may wish to purchase  The firm is not only encouraging customer loyalty but also its sale and profit Include example of  hostel world  Car hire  Other offers from airlines Dimensions of CA

Operational advantage  It deals with everyday transactions & processes  That is where IS interacts directly with the process  A website that remembers customers and their preferences through past transactions would reflect an operational advantage  It stores account number, phone number, address, passwords, and other information  It directly benefits the firms  Examples include Online applications or purchasing Airline, mobile phone sites and many more Dimensions of CA

Thank you!!! Q&A