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IT Solutions for Supply Chain Management and Customer Relationship Management

This chapter covers the concepts of supply chain management, customer relationship management, business intelligence systems, and integrated collaboration environments, and their strategic and competitive opportunities in organizations.

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IT Solutions for Supply Chain Management and Customer Relationship Management

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

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

  3. SUPPLY CHAIN MANAGEMENT • Distribution chain – the path followed from the originator of a product/service to the end consumer

  4. 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

  5. What are Supply Chain Management Systems?

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

  7. 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

  8. 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

  9. 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

  10. 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

  11. 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.

  12. What are Business Intelligence Systems?

  13. 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

  14. 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

  15. 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

  16. 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

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

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

  19. ERP • Putting it all together • see figure 2.9

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

  21. Case Coca _cola p 56 • Q2 • Q6

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