Management Information Systems

1. Management Information Systems Islamia University of Bahawalpur Delivered by: TasawarJaved

2. Information System For Competitive Advantage • Learning objectives • Managing physical resources---SCM • Competitive Advantage • Porter’s Value Chains

3. The Firm in its environment • As we know environment is very important in the firm’s success • Firm exist for the purpose of providing products and services that meet environment needs • Environment varies firm to firm • School is different than sports ground and so on • The environmental elements are organizations & individuals that exist outside the firm • These elements exist in a larger system called a society

4. The Firm in its environment Government Financial community Global community • society suppliers The Firm customers Labor union Competitors Stake holder or owners

5. Managing the physical resource Flow - SCM • Manage resources from supplier to firms and then to customers • It should be timely and efficient • It includes following activities: • Forecasting customer demand • Scheduling production • Establishing transportation networks • Ordering replenishment stock from supplier • Receiving stock from suppliers • Managing inventory- RM, work in process, finished goods • Executing production • Transporting resources to customers • Tracking the flow of resources from supplier, through the firm & customers

6. Supply Chain Management & ERP system • SCM is only one aspect of ERP systems, • It play a crucial role in operations. • The use of the same ERP system vendor SAP, Oracle by members in the supply chain helps to facilitate the flow of supply chain information • Cost of ERP system can be high, and not every member in a supply chain may wish to purchase ERP SW • Powerful member can put pressure on suppliers, to use ERP system such as Wal-Mart

7. Competitive Advantage • Firm strive to obtain competitive advantage over others • By • Providing low prices • High quality • Meet special needs Firm can also achieve competitive advantage through the use of its virtual resources Managers use virtual as well as physical resources in meeting the strategic objectives of the firm

8. Porter’s Value Chain • Micheal porter identified with the topic of CA • He provides guidelines and strategies for firms attempting to gain an advantage over the competitors • It includes: • Primary activities • Secondary activities

9. Porter’s Value Chain • Primary Activities • Inbound logistics • Operations • Outbound logistics • Marketing and sales • Services • Secondary Activities • Firm infrastructure • HRM • Technology development • Procurement

10. Porter’s Value Chain

11. Dimensions of CA • CA can be realized in terms of achieving • Strategic • Tactical • Operational advantages Supplier Value Chain Firm’s Value Chain Customer Value Chain

12. Dimensions of CA • Strategic advantage • Fundamental effects in shaping the firm’s operations • IS can be used to create a strategic advantage • Eg • A firm may decide to convert all of its existing data into database with standard interfaces for possible sharing with business partners and customers. • Standardized database accessible via web browsers would reflect a strategic shift in corporate position It can affect in number of ways • Existing access may be via proprietary computer software and change would cause the firm to consider purchasing standard reporting software from an outside vendor or hiring an outside firm to design and develop the new reporting systems. • Direct access to firm’s computer resources • Supplier and customer anywhere in the world would be able to access firm’s raw material & finished goods inventory level, speeding the firm’s buying and selling transactions.

13. Dimensions of CA • Tactical Advantage • A firm achieve when it implements a strategy in a better way than its competitor • For example • Customer service may be enhanced by offering customers direct access to information • Customer satisfaction results in repeat purchases • A customer wishes to purchase 150$ worth of computer paper from your firm • These purchases are routine • IS notes that the customer has made purchases totaling 800$ during month and discount is offered if it goes over 1000$ during month • So this example says that customer is just 50$ behind discount • It can help firm to achieve CA • How let see……………

14. Dimensions of CA • It can help firm in these ways • Customer sees the 5% discount as a reason to continue purchasing products from the firm • IS may suggest which products the customer may wish to purchase • The firm is not only encouraging customer loyalty but also its sale and profit Include example of • hostel world • Car hire • Other offers from airlines

15. Dimensions of CA • Operational advantage • It deals with everyday transactions & processes • That is where IS interacts directly with the process • A website that remembers customers and their preferences through past transactions would reflect an operational advantage • It stores account number, phone number, address, passwords, and other information • It directly benefits the firms • Examples include • Online applications or purchasing • Airline, mobile phone sites and many more

16. Thank you!!! • Q&A