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Management Information Systems

Unit 1: Organization & Information Systems

Chapter 1
Changing Environment and its impact on Business
Can we say Technology Transforms the Organization ?!!

Whats 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

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Some Numbers

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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
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Some Numbers

2/2

By June 2010, More than 99 million businesses worldwide had dotcom Internet sites registered The Singles Day (November 11, 2011) created a history for Chinas online businesses with 10 million orders Thailand online shopping trends show a rise of nearly 60% Many Fortune 500 companies now have Facebook pages
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Value Chain - Primary

In-bound Operations

Outbound
Marketing/Service

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Value Chain Secondary

HR Purchase

Finance Legal
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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

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Business Today
Supply chain management: procurement, distribution, and logistics

Engineering and research

Manufacturing and production

Accounting and finance

Customer relationship management: Marketing, Sales, Customer Service

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The Challenges of Change

Within organizations Organizational structure Interorganizational relations The economy Education National development

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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

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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
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Dells Inventory Turnover Year Inventory Turnover Week's Inventory Data

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 4.79 5.16 9.4 9.8 24.2 41.7 52.40 52.40 51.4 63.50 10.856 10.078 5.532 5.306 2.149 1.247 0.992 0.992 1.012 .819

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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)

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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 managers 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

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Campus Overview
Ahmedabad Kolkata Mumbai

907/A Uvarshad, Gandhinagar Highway, Ahmedabad 382422.

Infinity Benchmark, 10th Floor, Plot G1, Block EP & GP, Sector V, SaltLake, Kolkata 700091.

Goldline Business Centre Linkway Estate, Next to Chincholi Fire Brigade, Malad (West), Mumbai 400 064.

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