Strategic Information System For Competitive Advance


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Strategic Information System For Competitive Advance

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Strategic Information System For Competitive Advance

  1. 1. Group 3 Strategic Information System For Competitive Advance Nguyen Thanh Tung Le Huu Vu Pham Luong Khanh
  2. 2. Case Study <ul><li>Seven Eleven </li></ul>
  3. 3. Overview Seven eleven <ul><li>Seven eleven is once of </li></ul><ul><li>biggest convenience company </li></ul><ul><li>with 24.000 stores. </li></ul><ul><li>1974 Ito-Yokado bought the franchise right so 7-11 opened in Japan in may, 1997. </li></ul><ul><li>7-11 parent company (southland) have bankruptcy. So they must be sell assets. In1990, Ito-Yokado purchased 70% of southland </li></ul>
  4. 4. Seven eleven <ul><li>Why 7-11 (southland) </li></ul><ul><li>was filling the bankruptcy </li></ul><ul><li>while 7-11(Japan) made </li></ul><ul><li>over 40% profit ? </li></ul><ul><li>The answer is: </li></ul><ul><li>Consumer – focused orientation based on information system </li></ul>
  5. 5. Problems <ul><li>What is competitive </li></ul><ul><li>advance when Seven eleven applying information system ? </li></ul><ul><li>1990 7-11 Japan created a $200 million to build their information system </li></ul>
  6. 6. Challenges <ul><li>How to meets the </li></ul><ul><li>customer’s need effetely and fast? </li></ul><ul><li>How to Monitor inventories </li></ul><ul><li>How to transmit electronically orders between distribution center and manufacture </li></ul>
  7. 7. <ul><li>As you know the quantity </li></ul><ul><li>is very importance with </li></ul><ul><li>Japanese. So how to manage </li></ul><ul><li>quantity products effetely?. </li></ul><ul><li>How changes to display product mix in stores at least twice a day? </li></ul><ul><li>All of request about ordered 7-eleven had to built the information system which supported for their work </li></ul>
  8. 8. Solution <ul><li>7-Eleven Japan know the importance of information system. So they built their information system with $200 million </li></ul>
  9. 9. 7-Eleven Information system’s objective <ul><li>Discovering to know who </li></ul><ul><li>are their customers and </li></ul><ul><li>what is their customer’s need </li></ul><ul><li>Create a sophisticated product-tracking system </li></ul><ul><li>Transmitting the electronically orders between distribution center and vendors </li></ul>
  10. 10. <ul><li>Determine which </li></ul><ul><li>products to keep in each </li></ul><ul><li>store </li></ul><ul><li>Determine how much shelf space to allocate to each product </li></ul><ul><li>Track employee performance (for rewarding high performance) </li></ul>
  11. 11. <ul><li>Moreover, quality of </li></ul><ul><li>product is very importance. </li></ul><ul><li>The quality products must </li></ul><ul><li>be collect and analysis by computerized </li></ul><ul><li>decision support system. After that, the </li></ul><ul><li>brand is not meets strict quality are </li></ul><ul><li>intermediate discontinued Especially with </li></ul><ul><li>fresh hot meals are sold at convenience stores. </li></ul>
  12. 12. Many results <ul><li>7-Elevent has extensive </li></ul><ul><li>Knowledge of its market. </li></ul><ul><li>Maximizes sales in </li></ul><ul><li>limited space and optimizes its inventory level. </li></ul><ul><li>Also knowing exactly the customers want helps the company to negotiate good prices and quality with its vendors </li></ul>
  13. 13. <ul><li>7-Eleven Japan has also </li></ul><ul><li>created a time-distribution </li></ul><ul><li>system that changes the </li></ul><ul><li>product mix on display in its stores at least twice a day, based on careful and continual tracking of customers’ needs. The company knows that consumers’ needs in the morning are completely different from those in the evening. So the system allows them to display the most appropriate items at different hours of the day </li></ul>
  14. 14. <ul><li>In late 1997, 7-Eleven was the </li></ul><ul><li>first convenience store chain to </li></ul><ul><li>introduce Internet access terminals </li></ul><ul><li>in their Seattle area stores. These </li></ul><ul><li>terminals allow customers who do not have computers to access the Internet by paying a user fee to 7-Eleven. In 1998 it introduced a computerized system to track inventory and forecast sales in the United States. In 1999 it introduced multimedia-based Internet kiosks in its Japanese stores for ordering from the stores’ site, with capabilities to pay for the goods in the stores. The stores are also used as a receiving station for the merchandise ordered. </li></ul>
  15. 15. <ul><li>Thank for your attention </li></ul>