Mid semester test Flashcards
Vision has four characteristics
compelling, concise, high level, measurable
Porter’s five forces
- Substitute competition - outside industry
- Threat of new entrants - how difficult it is to enter the industry
- Buyer power - the ease of which your customer can switch suppliers
- Industry rivalry - the fierceness of competition within the industry
- Supplier power - how many suppliers there are that you could use
The five capital model of sustainability
- Social
- Financial
- Natural
- Human
- Manufactured
Porter’s generic strategy
- Broad cost
- Broad differentiation
- Focus cost
- Focus differentiation
Competitive scope vs differentiation
Value disciplines
- operational excellence - if you have the best or most efficient process
- product leadership - if you have the best product
- customer intimacy - if people come to you for your customer service and personalisation
competitive advantage = low cost = operational excellence
Primary value chain activities
- Inbound logistics
- Operations
- Outbound logistics
- Marketing and sales
- Service
Activities that directly contribute to the value of the product - anything to do with customers (deleting them will directly impact customers immediately)
Support value chain activities
- Firm infrastructure
- Human resource management
- Technology development
- Procurement
Activities that facilitate interactions with customers - do not interact with customers (deleting them will not directly impact customers immediately)
A business process
A business process is a series of activities that the business performs that add value to the final product
Functionalities
What the process / system does
Categories of information systems
- EIS
- Decision support systems
- Transaction processing systems
- Supply chain management systems
- Enterprise resource planning systems
- Customer relationship management systems
- Collaboration systems
KPI
A numeric measure - average, proportion (not a comparison yet!)
Benchmark types
- Historical (compared to the past)
- Theoretical (compared to a goal)
- External (outside organisation)
- Internal (within organisation)
Selecting tasks to improve
- High NFI, high value
- High NFI, low value
- Low NFI, low value
- Low NFI, high value
Because of risks!
Magnitudes of change
high:
1. Reengineer the industry (radically change the way things are done in the industry e.g iPhone)
2. Reengineer a process (fundamentally redesign operations e.g. AmazonGo)
3. Streamline (eliminating non-value adding tasks)
4. Automate (replace manual work with machines)
low:
Tranformation processes:
- Physical (manufacturing - creating something new)
- Locational
- Exchange (retail operations)
- Physiological (Healthcare)
- Psychological (entertainment)
- Informational (communication)
Operations strategies - to develop a competitive advantage
- Cost
- Quality (can measure this using customisation)
- Delivery
- Flexibility (# products, volume order sizes…)
- Service
Information
Information is data analysed and transformed into more useful forms, usually by understanding relationships within the data
Systems
A set of interactive parts that form something with properties that no individual part has
Transaction processing systems
fine, OLTP, transactional, operational information
Decision support systems
coarse, OLAP, managerial / tactical, analytical information
Transaction
A business event that generates data worthy of being captured and stored in a database
TPS functionalities
Create entries Read inputs Update entries Delete entries (CRUD)
Problems for decision making
data richness - analysis required
Agile decision making latency
- Data latency = Time taken for an event to be captured as data
- Analysis latency = time it takes for the information to be processed
- Decision latency = time it takes from information being delivered to action taken
Intelligence density
Intelligence density is the amount of useful decision support information that a decision maker gets from using the system for a certain amount of time
= ratio of decision making power gleaned : units of analytical time spent by decision maker
DSS applications
Optimisation, goal seeking analysis, what-if analysis
Collaboration support systems characteristics
- communication
- cooperation
- coordination
types of collaboration systems
- Groupware (facilitation of communications)
- Content management systems (keep, organise and share contents e.g. Google drive)
- Knowledge management systems (keeps, organises and shares knowledge)
- Workflow management systems (coordinate multiple partners ‘workflows’ in parallel)
Enterprise resource planning systems
a system that integrates all departments and functions of an organisation into a single IT system
Benefits / risks of enterprise resource planning systems
- Flexibility and agility
- Business intelligence and decision support
- Better service and efficiency
Risk: implementation issues
ERPII challenges
ERPII = ERP across multiple companies
- Security and privacy issues
- Common suppliers and fear of competitive information
- Standards / compatibilities
Push systems vs pull systems
push= products made before order made
pull = products made after order made
Common problems with supply chains
- lack of transparency across supply chain (inventory and market info not shared)
- Restricted communications among organisations in supply chain
- Long and uncertain lead times
results in the bullwhip effect
CRM benefits
- Upsale
2. Customer satisfaction
CRM categorises customers by
- Recency
- Frequency
- Monetary value
(RFM)
Best opportunities are in the middle
Measure supplier’s performance level using this framework
In Full (IF) On Time (OT) In Specification (IS)
IFOTIS
