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BCIS 401 Information Systems for Management

BCIS 401 Information Systems for Management. Electronic Commerce. BCIS 401 Information Systems for Management. Value Chain Models. Physical Value Chain Model. A series of value adding activities connecting a company’s supply side to its demand side

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BCIS 401 Information Systems for Management

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  1. BCIS 401 Information Systems for Management Electronic Commerce

  2. BCIS 401Information Systems for Management Value Chain Models

  3. Physical Value Chain Model • A series of value adding activities connecting a company’s supply side to its demand side • Analysis of the PVC has allowed managers to redesign internal & external Processes to improve efficiency and effectiveness • VCM treats information as a supporting element of the value adding process, not as a source of value itself BCIS 401

  4. Virtual Value Chain Model • VVC exists in the market space • Value-adding process unique to the information world are required to turn raw information into new market space services and products • Creating value in any stage of a VVC involves a sequence of five activities • Gathering, organizing, selecting, synthesizing and distributing information BCIS 401

  5. Mixing the Physical & Virtual • Companies that do business in both the market place and the market space exploit both the PVC and VVC • To be successful these chains must be managed distinctly but in concert • Companies that adopt value-adding information processes generally do so in three stages BCIS 401

  6. Stages of Adoption of Value-Adding Information Process • Visibility • Mirroring Capability • Value matrix BCIS 401

  7. Visibility • Companies acquire an ability to “see” physical operations more effectively through information • Large scale IS used by managers to coordinate activities in their PVC • Foundation laid for a VVC BCIS 401

  8. Mirroring Capability • Companies substitute virtual activities for physical ones • Companies begin to create a parallel value chain in the market space • Establishing space-based relationships allows companies to extract value from the space BCIS 401

  9. Value Matrix • Manager’s draw on information in their VVC to deliver value to customers in new ways • This is accomplished by applying the generic value adding activities to their VVC and thereby exploit the value matrix BCIS 401

  10. Physical Value Chain Gather Organize Value Select Matrix Synthesize Distribute New markets Virtual Value Chain

  11. Marshall Industries Junction Box Model BCIS 401

  12. Level 1 Junction Box Clean conduit for transactions

  13. Level 1 • Streamlining for cost, efficiency, and basic reliability • Quality Order Booking, Resell App. (QOBRA) • Automated Shipping and Receiving System (AS/RS) • Aimed at supporting basic operational capabilities. BCIS 401

  14. Level 2 Junction Box Internal Integration Intelligently connecting the Insides to better connect the Outside.

  15. Level 2 • Marshall Net - The Intranet • Automates Routine Processing • Frees up employees to provide value to customers • Supports approximately 400 field sales employees BCIS 401

  16. Level 3 Junction Box Empowering the Outsides to more intelligently connect to the Insides through multiple modes of service.

  17. Level 3 • Redesigning Business Processes to provide 24x7 customer service • Marshall on the Internet • Dynamic Web site • Order tracking via UPS, on Marshall’s site • EDI • Connect to Marshall’s engineers on-line BCIS 401

  18. Level 4 Junction Box Customizing the connections to the Outside for added value.

  19. Level 4 • Establish Extranet • PartnerNet - Draws visits from ~1,300 customers & suppliers daily • Integrated with QOBRA, DRP, sales force applications • Enables integration of complete purchasing cycle • Market Intelligence System • MAP - Marshall Account Profile Planner BCIS 401

  20. Level 5 Junction Box Leveraging knowledge in the Insides and Outsides for value innovation

  21. Level 5 • DRP • MAP • Electronic Design Centers • Provides design information & simulation ability to customers BCIS 401

  22. Level 6 Junction Box Prototyping future opportunities for value innovation

  23. Level 6 • Be Proactive in planning its future in the face of the accelerating rate of new ITs • Build IT platforms that serve to prototype the future. Marshall’s Strategic R&D • Net Seminar - Brings together Suppliers & Customers to design new products • Education news and entertainment network BCIS 401

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