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  • Page 6 Laudon 12th Edition
  • Page 6 Laudon 12th Edition

Transcript

  • 1. Prepared and Presented by Prashant P Jani1 -1
  • 2. Management InformationSystemsPrepared and Presented by : Prashant P JaniUnit 1: Organization & Information Systems
  • 3. Chapter 1Changing Environment and itsimpact on BusinessCan we sayTechnology Transforms theOrganization ?!!
  • 4. Prepared and Presented by Prashant P Jani1 -4What’s my return on investmenton e-commerce?Are you crazy? This is theColumbus of the New World.What was his ROI?- Andrew Grove, Intel Chairman
  • 5. Some Numbers 1/2 The online retail industry isexpected to touch INR 7000 crore by2015 (from current INR 2000 crore) The annual growth of onlinetransactions is 50% every year Over 65% of Mumbai populationand 45% of Delhi Population shoponlinePrepared and Presented by Prashant P Jani1 -5
  • 6. Some Numbers 2/2 By June 2010, More than 99 millionbusinesses worldwide had dotcomInternet sites registered The Single’s Day (November 11, 2011)created a history for China’s onlinebusinesses with 10 million orders Thailand online shopping trends showa rise of nearly 60% Many Fortune 500 companies nowhave Facebook pagesPrepared and Presented by Prashant P Jani 1 - 6
  • 7. Value Chain - PrimaryIn-boundOperationsOutboundMarketing/ServicePrepared and Presented by Prashant P Jani1 -7
  • 8. Value Chain – SecondaryPrepared and Presented by Prashant P Jani1 -8HRPurchaseFinanceLegal
  • 9. Prepared and Presented by Prashant P Jani1 -9
  • 10. Web and Competitiveness The Internet has affected the fiveforces by◦ Lowering entry barriers for new firms◦ Creating substitutes for traditionalbusinesses (Stock trading and music)◦ Creating new markets that change theway buyers and supplies interact Amazon.com has no physical stores andhence a smaller infrastructure which iseasier to managePrepared and Presented by Prashant P Jani1 -10
  • 11. Business TodayManufacturingand productionAccounting andfinanceEngineeringandresearchSupply chain management:procurement, distribution, andlogisticsCustomer relationshipmanagement: Marketing,Sales, Customer Service1 -11Prepared and Presented by Prashant P Jani
  • 12. The Challenges of Change Within organizations Organizational structure Interorganizational relations The economy Education National developmentPrepared and Presented by Prashant P Jani1 -12
  • 13. Metrics for Business Impact Market share Number of markets in which afirm participates Number of new markets Sales growth Size of the average sale Sales per employeePrepared and Presented by Prashant P Jani1 -13
  • 14. Lean and Agile Manufacturing,Mass Customization The Dell Model◦ Phone and Internet orders◦ Little or no in-process inventory◦ No finished goods inventory◦ Purchasing agreements withcompanies, universities, andgovernment agencies Customized Web ordering pagesPrepared and Presented by Prashant P Jani1 -14
  • 15. Prepared and Presented by Prashant P Jani1 -15
  • 16. Dell’s Inventory TurnoverDataYear Inventory Turnover Weeks Inventory1992 4.79 10.8561993 5.16 10.0781994 9.4 5.5321995 9.8 5.3061996 24.2 2.1491997 41.7 1.2471998 52.40 0.9921999 52.40 0.9922000 51.4 1.0122001 63.50 .819Prepared and Presented by Prashant P Jani1 -16
  • 17. The Impact Will increase the size of the‘manageable’ span of control formanagers by decreasing the costsand difficulties of informationhandling (and thus reducing thecosts of coordination)Prepared and Presented by Prashant P Jani1 -17
  • 18. The Impact The more efficient automated systems willeliminate the need for many decision makers But it will also generate the need for managerswho will be more nearly of the system designerthan the system operator In this new role, the manager’s capabilities will begreatly extended both by quality of informationavailable to him and by the versatility of the newtools for decision making. He will be more concerned with studying how hecan best structure his company to its environmentand thus improve its competitive posturecompetitive posturePrepared and Presented by Prashant P Jani1 -18
  • 19. Prepared and Presented by Prashant P Jani1 -19