Management Information Systems

1. Management Information Systems Islamia University of Bahawalpur Delivered by: Tasawar Javed Lecture 10

2. The Role of Information Technology Overview of Chapter

3. The Role of Information Technology Connection to the internet will not, of itself, deliver e-business. Suitable hardware, software and business processes have to be in place. Here are some examples of how e-business could affect various business areas.

4. The Role of Information Technology

5. The Role of Information Technology Making websites interactive • Search • Online forms • Members only section to the site • Interactive questionnaires/surveys/polls • Animation • Subscription email list • Links to other sites • Downloadable files • Contact us • Site map • Text only version of the site • Multilingual requirement • Provision for printing and bookmarking

6. Supply Chain Management Many business prosper or fail depending on the success of their relationship with their suppliers and with those who they supply. The use of IT and internet can provide efficiency to supplying the links involve the supply chain and to the consumer. Raw material and then transformation to the finished goods all activities included between these two are encompasses in SCM Nodes in the supply chain includes supplier, manufacturer, wholesaler then retailer and to the final consumer Upstream (transaction between firm and supplier) and Down stream (customers) SCM

7. SCM The transformation of product from node to node includes activities such as: • Production planning • Purchasing • Materials management • Distribution • Customer service • Forecasting when each firm can be competitive through improvements to its internal practices, ultimately the ability to do business effectively depends on the efficient functioning of the entire supply chain

8. SCM Managing the Chain Managing the chain primarily concentration on managing the movement of the following three areas: • Materials/inventory • Information • Funds Inventory control • Amongst other things, this will include a consideration of: • Number, location and size of warehouses and distribution centres • Production scheduling; new products can be integrated in supply chain • A transportation strategy (routes, timings)

9. SCM • Information Management • Key elements • Potential levels of end-user and customer demand • Daily production and distribution plans • Resource availability and utilization • Fund Management • Sufficient funds available • Avoid disruption • Supply chain sustained • Strong relation of trust • Importance of IT • Providing, storing, managing, and interrogating the Information Management part of SCM • IT can provide aid for that business areas

10. SCM For example; a wholesaler’s inability to adequately maintain inventory control or respond to sudden changes in demand for stock may mean that a retailer can not meet final consumer demand. Conversely, poor sales data from retailers may result in inadequate forecasting of manufacturing requirements. Push vs Pull • Push = supplier-led. • Pull = customer/ market led. Consumers have a direct voice in the functioning of the supply chain. • This is what e-commerce facilitates and this was very rare prior to the development of e-commerce. Many businesses have developed this further into upstream SCM

11. SCM In the pull model, customers use electronic connections to pull whatever they need out of the system Electronic supply chain connectivity gives end customers the opportunity to give direction to suppliers, for example, about the precise specifications of the products they want Ultimately, customers have a direct voice in the functioning of the supply chain E-commerce creates a much more efficient supply chain that benefits both customers and manufacturers. Companies can better serve customer needs, carry fewer inventories, and send products to market more quickly

12. Porter’s value Chain Revisited The profit can be generated by adding the such activities in the business area that customer value and willing to pay for it. It could be skill and knowhow related, organizational or manufacturing The traditional value chain has been criticised because it • Is designed primarily to describe manufacturing business • Doesn’t emphasise the importance of the customer enough. It is product led rather than market led

13. Porter’s Value Chain Revisited Manage selling, delivery etc New products development Market Research Market products Purchase materials Produce products

14. Porter’s Value Chain Revisited In terms of this model, e-business enables companies to: • Carry out continues market research as products are ordered and sold • Use the results of continuous to order goods, design new products and design special offers • Allow great flexibility and speed of response, provided members of the up-stream supply chain (suppliers) also embrace e-business The whole supply chain must be flexible and efficient it any one member of its is to benefit from better market information. There’s no point one company knowing what its customers want if its suppliers and distributors cannot respond adequately

15. Porter’s Value Chain Revisited Obviously, if e-business capability is present in all members of the supply chain, management of the chain is becoming more feasible: selling, delivering, ordering, designing, and manufacturing can all be linked electronically permitting: • Cost saving • Time savings • Faster innovations • Better marketing • Better quality

16. Thank you!!! • Q&A