Optional components can include: Product Lifecycle Management (PLM) Financial management Human Capital Management An alternative view
Supply Chain Management Some key ideas: The supply chain Upstream & downstream Inbound or inward logistics Outbound or outward logistics Materials management 5 Rights: right product, right quantity, right time, right place, right price Supply Chain Integration What is it? Connecting company systems with suppliers to synchronise activities
Market Relationship Strategic Partnerships & Alliances Virtual Organisation Vertical Integration Degree Of Integration Why? “Bullwhip effect” – small change in sales disrupts upstream supply How? Example - EPOS systems Customer Relationship Management What is it? Collecting together all of the information the company has about its customers Why? Provide better customer service Build better relationships with customers Target advertising & products How? Implement a single database for storing all customer information CRM Activities include… Customer data collection Collect personal information, including details of purchases e.g. for call centre use Customer data analysis Target advertising Data mining Salesforce Automation Improve the entire sales process Supplier Relationship Management What is it? All activities related to obtaining goods from a supplier, including procurement (buying), transportation, warehousing, etc. Why?
Support modern production planning methods e.g. JIT Get better value e.g. cost savings through faster cycle times How? Linking systems with suppliers (where possible) Integrating/optimising processes Lecture 5 – Internet & eBusiness How businesses use networks? Other network concepts
Client/Server architecture LAN - local WAN – across region or multiple locations VAN – value added services How the internet changes businesses? By restructuring business relationships e.g. reaching customers & suppliers directly through disintermediation By improving operational efficiency… o Communications become faster, cheaper and more efficient e.g. e-mail vs “snail mail” o Processes become simpler & more reliable (less susceptible to error) e.g. automated inventory control o Ultimately, transaction costs can be reduced (or even avoided) Naturally leads to the value chain being restructured… into a virtual value chain Activities eventually become mediated or carried out via technology
This leads us to the e-business concept… where organisations eventually transform from bricks-and-mortar to clicks-only This is done in stages (Visibility, Mirroring, New Customer Relationships) Different aspects can be seen clearly by looking at how traditional business activities have changed & how business models are evolving Example : eCRM The CRM process is based around some basic stages
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