1. CIS 429—BUSINESS INFORMATION SYSTEMS Chapter 3: Strategic Initiatives for Implementing Competitive Advantages

2. Strategic Initiatives Trek gained more than 30% of the worldwide market due to IT  Obtaining key management information to drive business decisions  Creating a ________ where dealers could  Enter orders directly  Check stock availability  View accounts receivable and credit summaries

3. Supply Chain Management (1) Supply chain management (SCM)  Management of ____________ flows between and within stages in a supply chain to maximize effectiveness and efficiency Four components of SCM  Supply chain strategy  Strategy for managing resources to meet demand  Supply chain partners  Partners that deliver products and services  Supply chain operation  The schedule for production activities  Supply chain __________  The product delivery processes

4. Supply Chain Management (2) SCM software enables implementation of strategy Wal-Mart and Proctor & Gamble use an SCM system  When P&G product is purchased at any Wal-Mart, a ___________ system alerts P&G to restock  When Wal-Mart warehouses run low on P&G products, real-time alerts are sent to P&G to ship  Invoices are generated and payments made automatically  Reduces cycle time and __________ levels

5. Customer Relationship Management CRM  Managing all aspects of a customer’s relationship with an organization  A CRM system tracks nearly all interactions between the customer and the organization  CRM is a business _________ to optimize profitability, revenue, and ______________ Schwab uses CRM to track information about customers, such as who makes direct deposits. Kaiser Permanente (health care organization) uses CRM to track eye exams among diabetic members.

6. Business Process Reengineering Business process  Standardized set of activities to accomplish a task BPR  Analysis and (________) redesign of workflow within and between enterprises Purpose of BPR is to make processes ___________ IT can enable the analysis required in BPR Progressive Insurance slashed claims settlements from 31 days to 4 hours Risk is focusing too much on BPR and neglecting the rollout of new ________ or __________.

7. Enterprise Resource Planning ERP  Integrating all departments and _________ into a single (or integrated) IT system  Enables employees to make enterprise-wide business decisions ERP software (SAP, PeopleSoft, Oracle, etc.)  Very expensive  Failure rate is about ____ A successful ERP system depends on  Degree of overall fit (off the rack, tailored to fit, ________ made)  Proper business analysis  Solid ________________