COMP4116 Information Systems Management PDF

COMP4116 Information Systems Management Week 4, Part 1 Achieving Competitive Advantages by Value Chain Reference: Andrew Greasley. Absolute Essentials of Operations Management. Routledge, 2020. Linda L. Brennan. Operations Management. McGraw-Hill, 2011. Kenneth C. Laudon and Jane P. Laudon. Managem...

COMP4116 Information Systems Management Week 4, Part 1 Achieving Competitive Advantages by Value Chain Reference: Andrew Greasley. Absolute Essentials of Operations Management. Routledge, 2020. Linda L. Brennan. Operations Management. McGraw-Hill, 2011. Kenneth C. Laudon and Jane P. Laudon. Management Information Systems: Managing the Digital Firm, 17th Edition. Pearson, 2022. Outline Value Chain The Role of IS in Value Chain Value Web 3 Value Chain A chain of activities that add a margin of value to its products and services Interdependent May create competitive advantage 4 Value Chain Primary activities ▪ Directly contribute to the value of goods and services provided by the company’s operations Secondary activities ▪ Support the primary activities 5 Activities in Value Chain Infrastructure M - Accounting, finance, planning, general administration Human Resources - Recruiting, training, promotion, holiday scheduling, compensation, benefit program design Technologies Development A -Intranet networking, extranet networking, system planning, system development Procurement -Supplier relationship, price negotiation, purchasing planning, contracting R Inbound Operations Outbound Marketing & Services Logistics Logistics Sales G - Product design, - Delivery - Market analysis, - Customer - Incoming shipment scheduling, raw quality assurance, assembling, Scheduling, backorders promotion management, instruction, complain I product tracking, fleet price setting, sale handling, materials packaging management forecasting maintenance, maintain, product return materials inspection, N materials unloading 6 The Role of IS in Value Chain Improve operational efficiency Enterprise Resources Planning system Value-adding activities Decision Support system Improve customer and supplier intimacy Improved business processes Supply Chain Management system Customer Relationship Management system 7 Possible IS for each activity type of Value Chain 8 The Role of IS in Value Chain Compare your value chain (business processes) against competitors Benchmarking - compare the efficiency and effectiveness of your business processes against standards - measure performance against standards Come up with candidate applications for each activity type of value chain Decide which to develop first Improve own value chain process that competitors might miss Achieve competitive advantage 9 Industry Value Chain Customer Sourcing and Relationship Procurement Management Systems Systems Suppliers’ Suppliers Suppliers Firm Distributors Customers Industry Value Chain 10 Value Web Collection of independent firms that use IS to coordinate their value chains to produce or service for a market collectively For For Build Coordinate For supplier to customers systems for shipment to customer to display to pay for ….. customers? track goods? goods? shipment? 11 Value Web The value web can synchronize the value chains of business partners within an industry to respond rapidly to changes in supply and demand. 12