EMANAGEMENT SYSTEMS

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CHAPTER 10

• E-MANAGEMENT SYSTEMS

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SESSION OBJECTIVES

• ROLE OF MIS
• J.I.T. AND PROCESS RE-ENGINEERING
• J.I.T. AND SUPPLY CHAIN MANAGEMENT
• INTERNET AND SUPPLY CHAINS

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MARKET DECISION MAKING
MARKET INFORMATION
FIGURE 101 AN EXAMPLE MIS MODEL
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• PRE-INTERNET M.I.S. OPERATIONS IMPACTED BY
• POOR DATABASE COMPATABILITY
• BATCH, NOT REAL-TIME, DATA PROCESSING
• IRREGULAR DATA ACQUISITION
• POOR STORAGE AND ACCESS TO INFORMATION
• IMPORTANCE OF UPGRADING INFORMATION MANAGEMENT
  BECAME APPARENT WITH ADVENT OF J.I.T.

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• EIGHTIES SAW USE OF PROCESS RE-ENGINEERING TO
  SPEED UP INTERNAL PROCESSES
• NEED TO CHALLENGE JOB PROCESS CONVENTION
• ALTHOUGH CLAIMED AS VERY EFFECTIVE, ACTUAL
  EXAMPLES LESS CONVINCING
• IN MANY CASES I.T. SYSTEMS NOT CAPABLE OF
  PROVIDING INSTANT INFORMATION

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• FROM SINGLE J.I.T. EVOLVED INTEREST IN TOTAL
  SUPPLY CHAIN INTEGRATION
• AGAIN ASPIRATIONS OFTEN FRUSTRATED BY I.T.
  SYSTEMS
• APPLICATION OF EDI TO IMPROVE DATA EXCHANGE
  PROVED EFFECTIVE
• MEANS CAN INTEGRATE AND OPTIMISE PRODUCT MOVEMENTS

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• STILL DATA EXCHANGE LIMITATIONS
• ENTERPRISE RESOURCE PLANNING (ERP) SOFTWARE
  PROMISED SOLUTION
• EDI SYSTEMS USUALLY BASED ON EXPENSIVE
  PROPRIETARY SOFTWARE
• INTERNET OFFERS OPEN DATA EXCHANGE WITHOUT NEED
  FOR PROPRIETARY SOFTWARE

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• CONCERNS OVER DATA SECURITY
• EMERGENCE OF EXTRANETS ( CLOSED INTERNET SITES)
• MOVE TO INTEGRATE ERP AND INTERNET SYSTEMS
• RECENT ENTRY OF INTERNET ORIENTATED DEVELOPERS
  WITH IMPROVED ERP SYSTEMS

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• EARLY ON-LINE SYSTEMS CONCENTRATED ON INTERNAL
  AND EXTERNAL PROCUREMENT
• GE SYSTEM HANDLES 1 BILLION TRANSACTIONS / YEAR
• BOISE CASCADE AS HUB LINKING 1200 SUPPLIERS AND
  17,000 CUSTOMERS

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ON-LINE SYSTEM DESIGN ISSUES

• MUST BE DESIGNED TO MEET USER DESIRES AND
  REQUIREMENTS
• BEHIND WEB-SITE MUST BE A REAL COMMITMENT TO
  T.Q.M. AND J.I.T.
• MUST ALREADY HAVE HIGH LEVEL OF I.T. EXPERTISE

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Marketing
Pre Sales
Sales
Post Sales Support
Billing
Quality Control
Field Service
Delivery
INDIVIDUAL CUSTOMER CONTACT DATABASES
INTERNET INTERFACE
SUPPLIERS
Consolidated Customer Database
Transaction Engine and Database
INTERNAL OPERATIONS DATABASES
Warehouse
Production
Procurement
Accounting
Other Support Services
FIGURE 104 AN INTEGRATED E-COMMERCE
MANAGEMENT SYSTEM
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NEW DISTRIBUTION MODELS

• BARBALHO PROPOSES E-COMMERCE MEANS
• REDUCTION IN WAREHOUSE AND PRODUCTION CAPACITY (
  DEMATERIALISATION)
• REDUCTION OF ELEMENTS IN SUPPLY CHAIN (
  DISINTERMEDIATION)
• EMERGENCE OF EXTENDED NETWORK ENTERPRISES (
  DEVERTICALISATION)
• EMERGENCE OF NEW SERVICE CONCEPTS BY SUPPLY CHAIN
  MEMBERS

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• EMERGENCE OF APPLICATION SERVICE PROVIDERS (ASPs)
  TO RENT ACCESS TO COMPLEX SOFTWARE
• PROCUREMENT MOVING ENTIRELY ON-LINE
• IN SOME CASES MAJOR FIRM IS CONTROLLING HUB
• OTHER CASES ON-LINE SYSTEM IS OPERATED BY A
  NEUTRAL HUB