Changing environment and its impact on business uwsb
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This document is a presentation on management information systems and how technology transforms organizations. It discusses how e-commerce and online retail is growing significantly in countries like India and China. It also summarizes how technology lowers barriers to entry and creates new markets. Additionally, it provides examples of how companies like Dell use lean manufacturing and mass customization through build-to-order and just-in-time inventory systems. Finally, it discusses the impact of technology in increasing managerial span of control and enabling more strategic decision making through improved information and tools.
Changing environment and its impact on business uwsb
- 1. Prepared and Presented by Prashant P Jani 1 - 1
- 2. Management Information Systems Prepared and Presented by : Prashant P Jani Unit 1: Organization & Information Systems
- 3. Chapter 1 Changing Environment and its impact on Business Can we say Technology Transforms the Organization ?!!
- 4. Prepared and Presented by Prashant P Jani 1 - 4 What’s my return on investment on e-commerce? Are you crazy? This is the Columbus of the New World. What was his ROI? - Andrew Grove, Intel Chairman
- 5. Some Numbers 1/2 The online retail industry is expected to touch INR 7000 crore by 2015 (from current INR 2000 crore) The annual growth of online transactions is 50% every year Over 65% of Mumbai population and 45% of Delhi Population shop online Prepared and Presented by Prashant P Jani 1 - 5
- 6. Some Numbers 2/2 By June 2010, More than 99 million businesses worldwide had dotcom Internet sites registered The Single’s Day (November 11, 2011) created a history for China’s online businesses with 10 million orders Thailand online shopping trends show a rise of nearly 60% Many Fortune 500 companies now have Facebook pages Prepared and Presented by Prashant P Jani 1 - 6
- 7. Value Chain - Primary In-bound Operations Outbound Marketing/Service Prepared and Presented by Prashant P Jani 1 - 7
- 8. Value Chain – Secondary Prepared and Presented by Prashant P Jani 1 - 8 HR Purchase Finance Legal
- 9. Prepared and Presented by Prashant P Jani 1 - 9
- 10. Web and Competitiveness The Internet has affected the five forces by ◦ Lowering entry barriers for new firms ◦ Creating substitutes for traditional businesses (Stock trading and music) ◦ Creating new markets that change the way buyers and supplies interact Amazon.com has no physical stores and hence a smaller infrastructure which is easier to manage Prepared and Presented by Prashant P Jani 1 - 10
- 11. Business Today Manufacturing and production Accounting and finance Engineering and research Supply chain management: procurement, distribution, and logistics Customer relationship management: Marketing, Sales, Customer Service 1 - 11Prepared and Presented by Prashant P Jani
- 12. The Challenges of Change Within organizations Organizational structure Interorganizational relations The economy Education National development Prepared and Presented by Prashant P Jani 1 - 12
- 13. Metrics for Business Impact Market share Number of markets in which a firm participates Number of new markets Sales growth Size of the average sale Sales per employee Prepared and Presented by Prashant P Jani 1 - 13
- 14. Lean and Agile Manufacturing, Mass Customization The Dell Model ◦ Phone and Internet orders ◦ Little or no in-process inventory ◦ No finished goods inventory ◦ Purchasing agreements with companies, universities, and government agencies Customized Web ordering pages Prepared and Presented by Prashant P Jani 1 - 14
- 15. Prepared and Presented by Prashant P Jani 1 - 15
- 16. Dell’s Inventory Turnover Data Year Inventory Turnover Week's Inventory 1992 4.79 10.856 1993 5.16 10.078 1994 9.4 5.532 1995 9.8 5.306 1996 24.2 2.149 1997 41.7 1.247 1998 52.40 0.992 1999 52.40 0.992 2000 51.4 1.012 2001 63.50 .819 Prepared and Presented by Prashant P Jani 1 - 16
- 17. The Impact Will increase the size of the ‘manageable’ span of control for managers by decreasing the costs and difficulties of information handling (and thus reducing the costs of coordination) Prepared and Presented by Prashant P Jani 1 - 17
- 18. The Impact The more efficient automated systems will eliminate the need for many decision makers But it will also generate the need for managers who will be more nearly of the system designer than the system operator In this new role, the manager’s capabilities will be greatly extended both by quality of information available to him and by the versatility of the new tools for decision making. He will be more concerned with studying how he can best structure his company to its environment and thus improve its competitive posture competitive posture Prepared and Presented by Prashant P Jani 1 - 18
- 19. Prepared and Presented by Prashant P Jani 1 - 19