Lesson 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

FIGURE 10:1 AN EXAMPLE MIS MODEL

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.

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

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

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

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

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

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

FIGURE 10:4 AN INTEGRATED E-COMMERCE MANAGEMENT SYSTEM

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

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

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