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“Global Value Chains”: Introduction

“Global Value Chains”: Introduction. Dr. Ray Sommer. Overview. Note: You don’t have to understand all of today’s material. Our goal for this semester is to acquaint ourselves with these concepts and assess their influences in modern organizational supply chains This is an introduction only!.

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“Global Value Chains”: Introduction

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  1. “Global Value Chains”: Introduction Dr. Ray Sommer

  2. Overview • Note: You don’t have to understand all of today’s material. • Our goal for this semester is to acquaint ourselves with these concepts and assess their influences in modern organizational supply chains • This is an introduction only!

  3. What’s going on in Business? • Are companies still doing business in the same manner as they were 5-10 years ago? • What has happened to the traditional Supply Chain model that functioned in the early 20th century and through 1970’s, and 80’s?

  4. Supply Chain Integration? • What is it? • How does it work? • Is there a difference between Business data and Technical data?

  5. Since 2005 change has come at a very fast pace? • Integrated Systems (World-wide) • 2010 - National/International Supply chains will mostly integrate at the business system level. • 2015 – Procurement and Technical Data Transfer will be stable and secure across heterogeneous business systems. • This is called the “Value Chain”

  6. What does a Value Chain include? • Warehousing • Distribution • Fleet management • Warranty repairs • Product returns • Customer call centers • Supply-chain management • Service Parts Logistics • Other Functions

  7. How was the Value Chain implemented only two decades ago

  8. Technology Provides the “Key” Middleware Advanced APIs OLE/DDE RemoteSQL SQL CORBA ODBC CPI-C Basic System Software Provided by other Vendors DBMS Operating System (Unix, NT, etc.)

  9. Internet Simple Integrated Direct Access “Old Model –1990’s” Company Environment Secure TCP/IP Data Stream (S-HTTP, SSL) CGI* Call Business Environment CGI Processor App. WWW Server Solution • DBMS • SQL Receive • Process • SQL Response SQL Call * or JAVA, JAVAscript C/C++, VB, etc.

  10. Environment • Applications • Financial Accounting • Controlling • Asset Management • Etc. Communications Module Middleware Technical Sub-System …….. Chan-1 Chan-2 Chan-n Linking Software Module Integrated EC with OLTP Company Environment SQL Call can initiate business Applications CGI Processor App. SQL Call “true” OLTP Transaction Monitor • DBMS • SQL Receive • Process • SQL Response

  11. How is the Value Chain implemented now?

  12. A Basic Global Model Primary contractors US Specialized Suppliers Taiwan/Japan China USA R&D Final Assembly and Distribution Mexico/Saipan Sub-contractors China Vietnam Fulfillment Contractors/Shippers Malaysia India Malaysia Singapore Honk Kong

  13. Dis-Intermediation vs. Re-Intermediation • Dis-Intermediation was “THE” value chain model of the late 20th century among Domestic supply chains • What does this term mean? • Re-Intermediation is “THE” standard for Global supply chains in the 21st century

  14. “New Model – 2013” Environment Integrated Business Applications Business Intelligence Customer Relationship Management (CRM) EDI Translator Message Handling Call Center EDI Processor Flat File A P I Catalog Management Systems Web Server Supplier Relationship Management (SRM) Transaction Monitor “BIG DATA” Exchange Application Server

  15. Our Primary Goals for the Next Six-Seven Weeks! • Understand the “drivers” of the “global value chain model” • Study logistics/transportation history in the context of manufacturing, production, demand, and social change since the early 20th century

  16. Course Material • http://bambam.gmu.edu/PUBP716

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