Lesson 10 E-MANAGEMENT SYSTEMS

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SESSION OBJECTIVES ROLE OF MIS J.I.T. AND PROCESS RE-ENGINEERING J.I.T. AND SUPPLY CHAIN MANAGEMENT INTERNET AND SUPPLY CHAINS

FIGURE 10:1 AN EXAMPLE MIS MODEL

PRE-INTERNET M.I.S. OPERATIONS IMPACTED BY: – POOR DATABASE COMPATABILITY – BATCH, NOT REAL-TIME, DATA PROCESSING – IRREGULAR DATA ACQUISITION – POOR STORAGE AND ACCESS TO INFORMATION IMPORTANCE OF UPGRADING INFORMATION MANAGEMENT BECAME APPARENT WITH ADVENT OF J.I.T.

EIGHTIES SAW USE OF PROCESS RE- ENGINEERING TO SPEED UP INTERNAL PROCESSES NEED TO CHALLENGE JOB PROCESS CONVENTION ALTHOUGH CLAIMED AS VERY EFFECTIVE, ACTUAL EXAMPLES LESS CONVINCING IN MANY CASES I.T. SYSTEMS NOT CAPABLE OF PROVIDING INSTANT INFORMATION

FROM SINGLE J.I.T. EVOLVED INTEREST IN TOTAL SUPPLY CHAIN INTEGRATION AGAIN ASPIRATIONS OFTEN FRUSTRATED BY I.T. SYSTEMS APPLICATION OF EDI TO IMPROVE DATA EXCHANGE PROVED EFFECTIVE MEANS CAN INTEGRATE AND OPTIMISE PRODUCT MOVEMENTS

STILL DATA EXCHANGE LIMITATIONS ENTERPRISE RESOURCE PLANNING (ERP) SOFTWARE PROMISED SOLUTION EDI SYSTEMS USUALLY BASED ON EXPENSIVE PROPRIETARY SOFTWARE INTERNET OFFERS OPEN DATA EXCHANGE WITHOUT NEED FOR PROPRIETARY SOFTWARE

CONCERNS OVER DATA SECURITY EMERGENCE OF EXTRANETS (= CLOSED INTERNET SITES) MOVE TO INTEGRATE ERP AND INTERNET SYSTEMS RECENT ENTRY OF “INTERNET ORIENTATED” DEVELOPERS WITH IMPROVED ERP SYSTEMS

EARLY ON-LINE SYSTEMS CONCENTRATED ON INTERNAL AND EXTERNAL PROCUREMENT GE SYSTEM HANDLES $1 BILLION TRANSACTIONS / YEAR BOISE CASCADE AS HUB LINKING 1200 SUPPLIERS AND 17,000 CUSTOMERS

MUST BE DESIGNED TO MEET USER DESIRES AND REQUIREMENTS BEHIND WEB-SITE MUST BE A REAL COMMITMENT TO T.Q.M. AND J.I.T. MUST ALREADY HAVE HIGH LEVEL OF I.T. EXPERTISE

FIGURE 10:4 AN INTEGRATED E-COMMERCE MANAGEMENT SYSTEM

NEW DISTRIBUTION MODELS BARBALHO PROPOSES E-COMMERCE MEANS: – REDUCTION IN WAREHOUSE AND PRODUCTION CAPACITY (= DEMATERIALISATION) – REDUCTION OF ELEMENTS IN SUPPLY CHAIN (= DISINTERMEDIATION) – EMERGENCE OF EXTENDED NETWORK ENTERPRISES (= DEVERTICALISATION) – EMERGENCE OF NEW SERVICE CONCEPTS BY SUPPLY CHAIN MEMBERS

EMERGENCE OF APPLICATION SERVICE PROVIDERS (ASPs) TO RENT ACCESS TO COMPLEX SOFTWARE PROCUREMENT MOVING ENTIRELY ON- LINE IN SOME CASES MAJOR FIRM IS CONTROLLING HUB OTHER CASES ON-LINE SYSTEM IS OPERATED BY A “NEUTRAL” HUB

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