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Management Information System 6


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Management Information System 6

  1. 1. Amity School of Business Module 6Key System Applications For The Digital Age 1
  2. 2. Amity School of Business Module 61. Enterprise Systems2. E-Commerce: Digital Market & Digital Goods3. M-Commerce: Services & Applications 2
  3. 3. Amity School of Business1. Enterprise Systems – • Supply Chain Management • Customer Relationship Management Systems 3
  4. 4. Amity School of Business WHAT IS SUPPLY CHAIN MANAGEMENT" Is the strategic management of activities involved inthe acquisition and conversion of materials to finishedproducts delivered to the customer" Supplier Material Flow Customer Management Management Information Flow Schedule / Stock Conversion Delivery Resources Deployment Leads to Business Process Integration 4
  5. 5. Amity School of Business SUPPLY CHAIN MANAGEMENT• Supply chain is the system by which organizations source, make and deliver their products or services according to market demand.• Supply chain management operations and decisions are ultimately triggered by demand signals at the ultimate consumer level.• Supply chain as defined by experienced practitioners extends from suppliers’ suppliers to customers’ customers. 5
  6. 6. Amity School of Business Supply Chain StructureSUPPLIER FACTORY DC RDC RETAILERRaw Materials Finished Goods Information Flow 6
  7. 7. Amity School of Business SUPPLY CHAIN ELEMENTS • SupplyChain DesignStrategic • Resource Acquisition • Long TermP lanning (1 Year ++) • P uction/Distribution P rod lanningTactical • Resource Allocation • MediumTermP lanning (Qtrly,Monthly) • Shipm ent SchedulingOperational • Resource Scheduling • Short TermP lanning (Weekly,Daily) 7
  9. 9. Amity School of Business Customer Relationship Management (CRM) Term applied to processes implemented by a company to handle its contact with its customers. Characteristics of CRM• CRM is a software-based approach to handle customer relationships.• Store information on current and prospective customers.• From the outside, customers interacting with a company perceive the business as a single entity, despite often interacting with a variety of employees in different roles and departments.• CRM is a combination of policies, processes, and strategies implemented by a company that unify its customer interaction and provides mechanism for tracking customer information 9
  10. 10. Amity School of Business Why CRM? More companies are beginning toview customers as their primaryasset. 10
  11. 11. Amity School of Business Applications of CRM• Information in the system can be accessed and entered by employees in different departments: Sales Marketing Customer service Training Professional development Performance management Human resource development• Details on any customer contacts can also be stored in the system  The rationale behind this approach is to improve services provided directly to customers.  To use the information in the system for targeted marketing and sales purposes. 11
  12. 12. Amity School of Business Customer Requirements• Control over buying process – Information, comparison, selection, easy to find• Best possible price – Delivery (free), quality• All payment options – Secure• Communication designed to suit needs – Computerized, complex, caring 12
  13. 13. Amity School of BusinessAspects of CRM 13
  14. 14. Amity School of Business Aspects of CRM• Many inter-related aspects: Aspect 1 : Front Office Aspect 2: Back Office Operations that ultimately affect the activities of Direct interaction with customers the front office Face to face meetings Billing Maintenance Phone calls Planning E-mail Marketing Online services etc Advertising Finance Manufacturing Aspect 4 Aspect 3: Business Relationships Aspect 4: Analysis Interaction with other companies and partners Key CRM data can be analyzed in order to plan Suppliers/vendors Target-marketing campaigns Retail outlets/distributors Conceive business strategies Industry networks (lobbying groups, trade assn’) Judge the success of CRM activities (e.g., market This external network supports front and back share, number and types of customers, revenue, office activities profitability) 14
  15. 15. Amity School of Business Limitations of CRMCRM initiatives often fail• Implementation was limited to software installation.• Inadequate motivations for employees to learn, provide input, and take full advantage of the information systems. 15
  16. 16. Amity School of Business2. E-Commerce: – Digital Market – Digital Goods 16
  17. 17. Amity School of Business E-Commerce• The use of the Internet and the Web to transact business – Digitally enabled commercial transactions – Exchange of values• E-commerce is more than just buying and selling products online.• Instead, it encompasses the entire online processes of developing, marketing, selling, delivering, and paying for products and services purchased by internet worked, global market places of customers, with support of worldwide network of business partners.• In using the web as links between the buyers and sellers, they can use internet, extranet and intranets. 17
  18. 18. Amity School of Business Classification of e-commerce• Business-to-Business • Business –to-Employee (B2B) e commerce • E-Government• Business-to-Consumer • E-Learning (B2C) e commerce • None-Business e-• Consumer-to-Business commerce (C2B) e commerce • Business-to-Business-to-• Consumer-to- Customer Consumer (C2C) e • Intra-business e commerce commerce • Exchange-to-Exchange• Peer-to-Peer (P2P) e commerce • Collaborative commerce• M-commerce 18
  19. 19. Amity School of Business The Growth of E-CommerceRetail e-commerce revenues have grown exponentially since 1995 and have only recently “slowed” to a very rapid 25 percent annual increase,which is projected to remain the same until 2008.Source: Based on data from eMarketer, 2006; and Forrester Research, 2005; and authors. 19
  20. 20. Amity School of Business Digital Market• Internet provides a digital environment where buyers and sellers can meet, search for products, display products, and establish prices for those products.• Net marketplaces are online marketplaces where multiple buyers can purchase from multiple sellers. 20
  21. 21. Amity School of BusinessNet Marketplace 21
  22. 22. Amity School of Business Digital Market– Digital markets reduce • Information asymmetry • Search costs • Transaction costs • Menu costs– Digital markets enable • Price discrimination/distinction • Dynamic pricing • Disintermediation 22
  23. 23. Amity School of Business Digital Market The Benefits of Disintermediation to the Consumer: Removal of organizations and business process layer.The typical distribution channel has several intermediary layers, each ofwhich adds to the final cost of a product, such as a sweater. Removing layerslowers the final cost to the consumer. 23
  24. 24. Amity School of Business Types of digital marketplace– Direct goods– Indirect goods– Vertical markets • Steel– Horizontal market • Office furniture– Industry-owned net marketplace • Exostar – Aerospace and defense industry » Boeing » Lockheed Martin » Raytheon …– Independently owned third-party net marketplaces • 24
  25. 25. Amity School of Business DIGITAL COMMODITIESLike other commodities, digital commoditiescan be durable (in which case we call themgoods) or perishable (in which case we callthem services). • Digital goods typically exist in code (software) • Digital services typically involve processing information without the process itself having any permanent existence. 25
  26. 26. Amity School of Business DIGITAL GOODS• Definition: – Goods that can be delivered over a digital network – Intangible goods that are sold through the internet. Digital goods may also be called electronic goods or e-goods.• Examples: e-books, music files, software, digital images, Web site templates, manuals in electronic format, and any item which can be electronically stored in a file or multiple files. 26
  27. 27. Amity School of Business Characteristics of Digital Goods• In electronic commerce, digital goods is a general term that is used to describe any goods that are stored, delivered and used in its electronic format.• Digital goods are shipped electronically to the consumer through e- mail or download from the Internet.• Costs of delivery over the Internet very low• Marketing costs remain the same; pricing highly variable• Industries with digital goods are undergoing revolutionary changes (publishers, record labels, etc.)• Usually when you purchase digital goods online, after payment has been received the merchant will provide you with your digital item as an e-mail attachment or they may provide you with a secure link where you can download the item. 27
  28. 28. Amity School of Business Strategic Issues in Markets for Digital Goods• Indestructibility – Innovation or Standardization? • “If you don’t cannibalize your own market, someone else will.” – Related issues of pricing and market organization • Cost structure • Market segmentation• Reproducibility – Can you even make a market? • Excluding non-payers • Copy protection versus customer annoyance • Pricing in the face of easy reproducibility – Copyright and Intellectual Property • How to keep rivals from mimicking your success • How to ensure that added value gets compensated 28
  29. 29. Amity School of Business3. M-Commerce: – Services – Applications 29
  30. 30. Amity School of Business Mobile CommerceMobile commerce is a natural result of combining two strongly emergingtrends: electronic commerce and pervasive computing. Internet + Wireless + E-Business = M-Business Going online anywhere at anytime and using multiple devices New business opportunitiesM-Commerce represents another wave of the e-commerce invasion that ischanging the nature of business in the 21st century. Exponential growth (keeps growing) 30
  31. 31. Amity School of Business Global M-commerce Revenue 2000-2012M-commerce sales represent a small fraction of total e-commerce sales,but that percentage is steadily growing. 31
  32. 32. Amity School of BusinessFixed Vs Mobile Commerce Check Check Purchase Bank Stock Stock Balance Price WAP Server Web Server WAP Server Web Server Multilingual Customer Product Content Database Database Database 32
  33. 33. Amity School of Business Characteristics of M-CommerceUbiquitous computing Anywhere, anytime Convenient, instant connectivityVery personal Device owner has an exclusive access to the contents/services Service providers know who the owner is Varied users, usage contexts Elementary school students, grandpas, grandmas Location & context-sensitive applications and services Ambidextrous Work & Play: Business purpose + Personal fun People seem willing to pay for mobile services 33
  34. 34. Amity School of Business Requirements for M-CommerceHardware technologies for ubiquitous computingSoftware infrastructure for ubiquitous computingSensing and interaction with the physical worldGraceful integration of human usersSystems considerations, including scalability, security, andprivacy. 34
  35. 35. Amity School of Business Technological Challenges of M-Commerce Security ( Peace of Mind) Personalized Services Usability ( Consistent andReliable Interface) Intelligent Services ( Smart about you, Pervasive & your location ) Flexible Payment ( Pay for any service Using Mobile) Consultation Capabilities ( Phone a Friend ) 35
  36. 36. Amity School of BusinessTechnological Challenges of M-Commerce (cont’d)UsabilityIntelligent and Personalized Services It is useful to determine what the mobile industry considers a service (a set of functions offered to a user by an organization) Personalized services have access to important user information that enables them to tailor their operation to the needs of the served user. Examples include speed dialing using personal contact lists or address bookPervasive and Flexible Payment Mechanisms It may be possible to replace credit-cards and paper money by making mobile phones act as electronic wallets. User’s credit-card details may be stored on the phone or on the user’s Subscriber Identity Module (SIM) card. “Access Tokens” are assigned when subscribing to a service or requesting to buy an item. 36
  37. 37. Amity School of BusinessTechnological Challenges of M-Commerce (cont’d) Security Authentication “is a property by which the correct identity of an entity or party is established with a required assurance.” Consultation Capabilities The Session Initiation Protocol (SIP) should be the biggest enabler of these kinds of services. These features should enable consultation sessions to be established where a potential customer is taken through the features of a product by an expert using a multimedia presentation and/or a website. Computing Environment Infantile: The area is in its infancy and needs lot of coordination between the industries and institutions to bring out a common standard for resolving the issues of pervasive computing . 37
  38. 38. note Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore IND Amity School of Business Technological Challenges of M-Commerce (cont’d) User input (voice, text, gestures) ; Human computer interaction technology should be developed for voice recognition, gesture recognition and natural language processing of the text. Context aware systems: The smart devices software and hardware architectures should be scalable, and secured to handle context aware operations, whichmay involve communication between diverse users and components. IPv4: A bridging support should be developed for embedded devices to communicate through Internet. Anonymity: The devices should allow others devices to track its operation and communicate among a group of components and users in a secured manner. Ubiquity: The devices should be capable of ubiquitous computing. 38
  39. 39. note Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore IND Amity School of Business M-Commerce benefits can be seen in : Banking Financial services Security services Shopping Advertising Entertainment Customer care Information provision Adhoc auction, where a particular user advertises the availability of a particular commodity, and invites bids. 39
  40. 40. note Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore IND Amity School of Business Applications of M-Commerce Mobile Financial Banking, brokerage, and payments for Applications (B2C, B2B) mobile users Sending user specific and location Mobile Advertising (B2C) sensitive advertisements Mobile Inventory Location tracking of goods, boxes, Management (B2C, B2B) People Transmission of information Proactive Service related to aging components to Management (B2C, B2B) Vendors Product Locating and Locating/ordering certain items Shopping (B2C, B2B) from a mobile device Services for customers to buy/sell Mobile Auction (B2C, B2B) certain items 40
  41. 41. note Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore IND Amity School of Business Applications of M-Commerce (Cont’d) Mobile Booking and Ticketing Services allowing customers to book, (B2C, B2B) tickets for travel, hotel and events Obtaining instant feedback from Mobile Marketing Research (B2C) customers Mobile CRM, Customer Support Customer acquisition and retention by (B2C, B2B) providing truly personalized content Mobile Entertainment Service VOD, MOD, gambling, interactive games (B2C) and other services Mobile Distance Education Taking classes, training courses using (B2C, B2B) streaming video and audio Information up/downloading by mobile Wireless Business Re-engineering users (e.g. adjusters in an insurance (B2C, B2B) company. 41
  42. 42. note Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore IND Amity School of Business Pros and Cons of Mobile Commerce Desktop / PC Mobile Phone / PDA  Greater Processing, multimedia  Online product browsing  Location based advertising and display capabilities of PCs  Personalized Advertising  Greater Convenience  Greater presentation facilities  Convenience for a  Capture of buying impulses makes the PC more applicable technologically aware user.  Alternative payment mechanism to larger purchases  Choice of many online stores e.g. Phone Bill for a wide range of items  Supports new mobile services discount Notifications. E-Commerce M-Commerce E-Commerce M-Commerce  Dialup hassles  Distrust of technology, resistance  Smaller screen size can degrade  Less possibility of impulse to change user experience spending  Fears about security online  Small or immature input technologies transactions  Market may be less open than  Bad design of many user interfaces e-commerce market  Slow connections if broadband  Tariffs are relatively high access not available 42