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Chapter 3

Chapter 3. by David G. Messerschmitt. Taxonomy of organizational applications. Commerce: Inter-enterprise Consumer Inter-consumer. Enterprise. Department. Economy. Buzzwords. Business process reengineering (BPR) Enterprise resource planning (ERP)

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Chapter 3

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  1. Chapter 3 by David G. Messerschmitt

  2. Taxonomy of organizational applications • Commerce: • Inter-enterprise • Consumer • Inter-consumer Enterprise Department Economy

  3. Buzzwords • Business process reengineering (BPR) • Enterprise resource planning (ERP) • Outgrowth of manufacturing resource planning (MRP) • Supply chain management

  4. Some types of applications • Worker collaboration • Operations and logistics • Decision support • Information and knowledge management • Customer/supplier commerce • Consumer commerce

  5. Some ERP categories • Sales force management • Document management • Customer service and support • Manufacturing logistics • Accounting • Human resources • Supply-chain management

  6. Questions • Do you have experience with any of these options? • In terms of: • Effectiveness • Pain • Time/budget

  7. Fundamental options • Custom application molded to existing organization • Custom application molded to re-engineered organization • Mold organization to off-the-shelf application • Common off-the-shelf (COTS) technology • Highly configurable

  8. Questions • How standardized are organizational processes? • Customer service • Finance • Manufacturing • Is software a good way to propagate best practices?

  9. Productivity quandary • Economists have difficulty identifying major productivity improvements due to investment in information technology • Questions: • How does one separate quality from productivity? • In what ways can computing harm productivity?

  10. Electronic commerce • Two varieties: • Supply chain management: extension of ongoing business processes to suppliers and customers • Marketplace: dynamic, opportunistic transactions conducted over the network • Question: • What are some characteristics of these options, in terms similar to social applications?

  11. Electronic marketplace • Matching buyers and sellers • Deferred-publication style • Recommender systems • Negotiating terms • Task or work group • Electronic auctions • Consummation • Electronic payments and fullfillment • Customer service

  12. Questions • For both buyer and seller: • How does an auction differ from standard pricing/discounting? • What impact might recommender systems have? • Electronic payments? Bank account transfer authorizations?

  13. Opportunities in consumer electronic commerce • Equivalent of sales by direct-mail catalog • How is it different different? • More ways to match buyer and seller • More payment options • Recommender systems • What uses? • Mass customization • Superstore: consolidation of suppliers

  14. Advantages over direct-mail catalog • Customers find you • But gaining attention remains an issue • Multimedia • Fewer human agents -- labor savings • Escalation to remote conferencing

  15. Matching buyer and seller • Fixed price • Price based on buyer characteristics • History • Demographics • Behavior • Sequential versioning • Auctions

  16. Intermediation • What intermediaries will be eliminated? • What are legitimate roles for intermediaries in the networked age? • What are some innovative roles for intermediaries?

  17. Payment options • (Topic of Chapter 14) • Account transfer authorization • Credit/debit card • Digital cash • Privacy • Micropayments • Low transaction costs • Consolidation

  18. Recommender systems • Extend and systematize the “reference” • Suggest coupled sales • Customer service: • discussion forums • knowledge bases

  19. Mass customization • Requires supply chain management • Just-in-time production • Supplier component integration (e.g. Dell)

  20. Superstore • Dynamic consolidation of multiple suppliers • Major application of XML (discussed in Chapter 15) • Consistent presentation

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