bcis 401 information systems for management
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BCIS 401 Information Systems for Management. Electronic Commerce. BCIS 401 Information Systems for Management. Value Chain Models. Physical Value Chain Model. A series of value adding activities connecting a company’s supply side to its demand side - PowerPoint PPT PresentationTRANSCRIPT
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BCIS 401 Information Systems for Management
Electronic Commerce
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BCIS 401Information Systems for Management
Value Chain Models
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BCIS 401 3
Physical Value Chain Model
• A series of value adding activities connecting a company’s supply side to its demand side
• Analysis of the PVC has allowed managers to redesign internal & external Processes to improve efficiency and effectiveness
• VCM treats information as a supporting element of the value adding process, not as a source of value itself
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BCIS 401 4
Virtual Value Chain Model
• VVC exists in the market space• Value-adding process unique to the information
world are required to turn raw information into new market space services and products
• Creating value in any stage of a VVC involves a sequence of five activities– Gathering, organizing, selecting, synthesizing and
distributing information
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BCIS 401 5
Mixing the Physical & Virtual
• Companies that do business in both the market place and the market space exploit both the PVC and VVC
• To be successful these chains must be managed distinctly but in concert
• Companies that adopt value-adding information processes generally do so in three stages
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BCIS 401 6
Stages of Adoption of Value-Adding Information Process
• Visibility
• Mirroring Capability
• Value matrix
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BCIS 401 7
Visibility
• Companies acquire an ability to “see”
physical operations more effectively
through information
• Large scale IS used by managers to coordinate activities in their PVC
• Foundation laid for a VVC
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BCIS 401 8
Mirroring Capability
• Companies substitute virtual activities for
physical ones
• Companies begin to create a parallel value chain in the market space
• Establishing space-based relationships allows companies to extract value from the space
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BCIS 401 9
Value Matrix
• Manager’s draw on information in their VVC to deliver value to customers in new ways
• This is accomplished by applying the generic value adding activities to their VVC and thereby exploit the value matrix
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Physical Value Chain
Virtual Value Chain
Gather
Organize
Select
Synthesize
Distribute
New markets
Value
Matrix
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BCIS 401 11
Marshall Industries
Junction Box Model
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Level 1 Junction Box
Clean conduit for transactions
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BCIS 401 13
Level 1
• Streamlining for cost, efficiency, and basic reliability
• Quality Order Booking, Resell App. (QOBRA)
• Automated Shipping and Receiving System (AS/RS)
• Aimed at supporting basic operational capabilities.
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Level 2 Junction Box
Internal Integration
Intelligently connecting the Insides to better connect the Outside.
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BCIS 401 15
Level 2
• Marshall Net - The Intranet– Automates Routine Processing– Frees up employees to provide value to
customers– Supports approximately 400 field sales
employees
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Level 3 Junction Box
Empowering the Outsides to more intelligently
connect to the Insides through multiple modes
of service.
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BCIS 401 17
Level 3
• Redesigning Business Processes to provide 24x7 customer service
• Marshall on the Internet– Dynamic Web site– Order tracking via UPS, on Marshall’s site
• EDI
• Connect to Marshall’s engineers on-line
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Level 4 Junction Box
Customizing the connections to the
Outside for added value.
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BCIS 401 19
Level 4
• Establish Extranet– PartnerNet - Draws visits from ~1,300
customers & suppliers daily– Integrated with QOBRA, DRP, sales force
applications– Enables integration of complete purchasing
cycle
• Market Intelligence System– MAP - Marshall Account Profile Planner
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Level 5 Junction Box
Leveraging knowledge in the Insides and Outsides
for value innovation
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BCIS 401 21
Level 5
• DRP• MAP
• Electronic Design Centers– Provides design information & simulation
ability to customers
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Level 6 Junction Box
Prototyping future opportunities for value
innovation
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BCIS 401 23
Level 6
• Be Proactive in planning its future in the face of the accelerating rate of new ITs
• Build IT platforms that serve to prototype the future. Marshall’s Strategic R&D– Net Seminar - Brings together Suppliers &
Customers to design new products– Education news and entertainment network