MIS 200: CHAPTER 2

Supply chain management (SCM)
tracks inventory and information among business processes and across companies
Supply chain management (SCM) system
IT system that supports supply chain management
Just-in-time (JIT)
method for producing or delivering a product or service just at he tme the customer wants it
Inter-modal transportation
multiple transportation channels (railway, truck, etc…) to move products from origin destination
– creates supply chain complexities
Opportunities of SCM
1. business strategy: overall cost leadership, running the organization (RGT) framework
2. goal is to squeeze out every penny of cost possible in the supply chain
3. optimizing fulfillment, logistics, production, revenue, and profit and cost and price
Customer relationship management (CRM) system
uses information about customers to gain insight into their needs, wants, and behaviors in order to serve them better
Multi-channel service delivery
multiple ways in which customers can interact with a business
Sales force automation (SFA) systems
automatically track all the steps in the sales process
1. sales lead tracking
2. listing potential customers
3. market and customer analysis
4. product configuration
5. getting repeat customers
Opportunities for CRM
1. business strategy
2. classic goals
Business strategy
– differentiation and focus
– growing the organization
Classic goals
– treating customers better
– understanding their needs and wants
– tailoring offerings
– providing “delightful” experiences
IT support for CRM
1. front office systems
2. back office systems
Front office systems
primary interface to customers and sales channels
Back office systems
fulfill and support customer orders
Software-as-a-service (SaaS)
software model in which you pay for software on a pay-per-use basis instead of buying the software
Enterprise resource planning (ERP) system
collection of integrated software for business management, accounting, finance, supply chain management, inventory management, customer relationship management, e-collaboration, etc…
– brings together CRM and SCM
– CRM drives what SCM will produce
– everyone works together in e-collaboration
– the entire organization knows the entire organization
ERP Evolution: MRP
1970s; focus on production planning, calculating time and requirements, procurement; basic automated manufacturing focus
ERP Evolution: MRP II
1980s; closed the loop to include financial and accounting systems and serve as a decision support tool for manageers
ERP Evolution: ERP
late 1980s/early 1990s; focus on critical “time to market”
– shorter lead times
– customers want it now
ERP Evolution: ERP II
today; focus on complete ERP integration with CRM, business intelligence, and a host of other
Small business
less than 100 seats
Medium size business
100-500 seats
Large business
more than 500 seats
Social media
web-based and mobile technologies that create interactivity among users, mostly allowing users to be both creators and consumers of content
Web 2.0
second generation of the Web focusing on online collaboration, users as both creators and modifiers of content, dynamic and customized information feeds, and many more engaging technologies
Some aspects of social media
1. social networking
2. social shopping
3. social playing
4. social “saving the world”
5. social locationing
Social networking site
site on which you post information about yourself, create a network of friends, read about other people, share content, and communicate with people
for example: Facebook, LinkedIn
Social shopping
see what other people are buying and wearing, trying to find the same and informing others of where the best deals are
– for example: Groupon, Bartab, Pepsi
Social playing – Massively Multiplayer Online Role-Playing Games (MMORPGs)
thousands or millions of people play and interact in a robust virtual world
for example: World of Warcraft, Second Life (Virtual world, Avatar), Zynga (Farmville)
Social “saving the world”
games that support sustainability and triple-bottom-line efforts
for example: TOMS One-for-One
Social locationing (location-based services)
user of a mobile device and its location to:
– check into locations
– find friends and their locations
– receive rewards
– take advantage of specials based on location
for example: Foursquare