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Week 3

Week 3. Major Business Initiatives: Gaining Competitive Advantage with IT. STUDENT LEARNING OUTCOMES. Define supply chain management (SCM) systems and describe their strategic and competitive opportunities.

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Week 3

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  1. Week 3 Major Business Initiatives: Gaining Competitive Advantage with IT

  2. STUDENT LEARNING OUTCOMES • Define supply chain management (SCM) systems and describe their strategic and competitive opportunities. • Define customer relationship management (CRM) systems and describe their strategic and competitive opportunities.

  3. STUDENT LEARNING OUTCOMES • Explain the significance of enterprise resource planning (ERP) software as the integration of functional software systems. • Define social media and describe a few of its many dimensions that make it important in the business world.

  4. Outrageous Industry Transformation: Death of a Travel Agent • Mid-1990’s • Airline directly • Visit travel agency

  5. And then…

  6. DEATH OF A TRAVEL AGENT

  7. DEATH OF A TRAVEL AGENT Today many, but not most, people book their travel needs online. • 57%-car rentals • 43%- airline reservations • 28%-hotel reservations • 8%-cruises

  8. Technology the Game Changer • Some businesses will win • Some will lose • Winners will work diligently to survive and will focus its initiatives around the use of technology— That’s what we will focus on—Business initiatives and gaining the competitive advantage with IT

  9. IT Implementations • Supply Chain Management • Customer Relationship Management • Enterprise Resource Planning • Social Media

  10. SUPPLY CHAIN MANAGEMENT buy hold sell • Traditional computer manufacturers use a distribution chain • A lot of inventory • Rental space costs • Antiquated supply

  11. SUPPLY CHAIN MANAGEMENT sell source ship • A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves. Customer Web site-takes orders Dell’s suppliers Assembly plant

  12. SUPPLY CHAIN MANAGEMENT • Dell’s example illustrates that the customer is an integral part of the supply chain. The primary purpose from the existence of any supply chain is to satisfy customer needs, in the process generating profits for itself.

  13. SUPPLY CHAIN MANAGEMENT • A typical supply chain may involve a variety of stages. These supply chain stages include: • Customers • Retailers • Wholesalers/Distributors • Manufacturers • Component/Raw material supplier

  14. SUPPLY CHAIN MANAGEMENT • Supply chain management (SCM) – • tracks inventory and information among business processes and across companies • It is an IT system that supports supply chain management activities • Just-in-time (JIT) – method for producing or delivering a product or service just at the time the customer wants it

  15. Dell’s Effective SCM Through JIT

  16. Supply Chain Management • Most supply chains use inter-modal transportation, multiple transportation channels (railway, truck, etc.) to move products from origin destination • This creates supply chain complexities

  17. Opportunities of SCM • Business strategy • Overall cost leadership • Running the organization (RGT) framework • Goal is to squeeze out every penny of cost possible in the supply chain

  18. Opportunities of SCM • This will optimize • fulfillment, • logistics, • production, • revenue and profit, • and cost and price

  19. IT Support for SCM • SCM systems pioneered by specialist companies • SCM is now part of ERP software (discussed later) • Learn more • Supply Chain Knowledge Base • Supply Chain Management Review • i2 Technologies • CIO Magazine

  20. CUSTOMER RELATIONSHIP MANAGEMENT • Customer relationship management (CRM) is a model for managing a company’s interactions with current and future customers. It involves using technology to organize, automate, and synchronize sales, marketing, customer service, and technical support.

  21. CUSTOMER RELATIONSHIP MANAGEMENT

  22. CUSTOMER RELATIONSHIP MANAGEMENT • Customer relationship management (CRM) system – uses information about customers to gain insight into their needs, wants, and behaviors in order to serve them better • Includes multi-channel service delivery, multiple ways in which customers can interact with a business

  23. The Focuses of Customer Relationship Management Analytics is now a huge part of CRM. Analytics use hard data to support decision making.

  24. Customer Relationship Management • Sales force automation (SFA) systems – automatically track all the steps in the sales process • Sales lead tracking • Listing potential customers • Market and customer analysis • Product configuration • Getting repeat customers

  25. GM’s Sales Force Automation (Purchase Funnel)

  26. Opportunities of CRM • Business strategy • Differentiation and focus • Growing the organization • Classic goals • Treating customers better • Understanding their needs and wants • Tailoring offerings • Providing “delightful” experiences

  27. IT Support for CRM

  28. IT Support for CRM • Software-as-a-service (SaaS) – software model in which you pay for software on a pay-per-use basis instead of buying the software • Learn more • Salesforce.com • CIO Magazine • CRM Today • destinationCRM.com

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