The Role of Information The Role of Information Systems in the Systems in the

Networked BusinessNetworked Business

Original byOriginal by

Choton BasuChoton Basu

BackgroundBackground

Presentation OutlinePresentation Outline Role of Information Systems in Role of Information Systems in

OrganizationsOrganizations ERP SystemsERP Systems e-Business – evolution and growthe-Business – evolution and growth

►Bricks and MortarBricks and Mortar►Business ModelsBusiness Models►Business ProcessesBusiness Processes►One on One MarketingOne on One Marketing

Discussion – Examples and CasesDiscussion – Examples and Cases

TYPES OF INFORMATION SYSTEMSTYPES OF INFORMATION SYSTEMS

SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN

KIND OF SYSTEMKIND OF SYSTEM

STRATEGIC LEVEL SENIOR MANAGERSSTRATEGIC LEVEL SENIOR MANAGERS

MANAGEMENT LEVEL MIDDLE MANAGERSMANAGEMENT LEVEL MIDDLE MANAGERS

OPERATIONAL OPERATIONAL

OPERATIONAL LEVEL OPERATIONAL LEVEL MANAGERS MANAGERS

KNOWLEDGE LEVEL KNOWLEDGE & KNOWLEDGE LEVEL KNOWLEDGE & DATA WORKERSDATA WORKERS

RESOURCESRESOURCESMARKETINGMARKETING

GROUPS SERVED

ERP Systems DiscussionERP Systems Discussion

► SAP AG – Switch to ERP PresentationSAP AG – Switch to ERP Presentation► http://www.seradex.com/ERP_FAQ.shtmlhttp://www.seradex.com/ERP_FAQ.shtml► http://www.eweek.com/article2/0,1759,1640http://www.eweek.com/article2/0,1759,1640

234,00.asp234,00.asp► www.mysap.comwww.mysap.com► http://www.service-architecture.com/web-sehttp://www.service-architecture.com/web-se

rvices/articles/service-oriented_architecture_rvices/articles/service-oriented_architecture_soa_definition.htmlsoa_definition.html

► www.cio.comwww.cio.com

E-Business – DefinitionE-Business – DefinitionThe buying and selling of information, products, and

services via computer networks.

A modern business methodology that addresses the needs of organizations, merchants, and consumers to cut costs while improving the quality of goods and services and increasing the speed of service delivery

The sharing of business information, maintaining business relationships, and conducting business transactions by means of telecommunications networks.

Benefits of E-BusinessBenefits of E-Business

►Global Reach – new marketsGlobal Reach – new markets►Round the Clock Service (available 24 Round the Clock Service (available 24

hours)hours)►Extended Distribution ChannelsExtended Distribution Channels►Reduce Transaction CostsReduce Transaction Costs► Information Sharing with Partners and Information Sharing with Partners and

CustomersCustomers►Personalization and 1 to 1 MarketingPersonalization and 1 to 1 Marketing►Real time transactions, tracking, pricing etc.Real time transactions, tracking, pricing etc.

WHAT YOU CAN DO ON THE WHAT YOU CAN DO ON THE INTERNETINTERNET

►COMMUNICATE & COLLABORATECOMMUNICATE & COLLABORATE►ACCESS INFORMATIONACCESS INFORMATION►DISCUSSIONSDISCUSSIONS►OBTAIN INFORMATIONOBTAIN INFORMATION►ENTERTAINMENTENTERTAINMENT►BUSINESS TRANSACTIONSBUSINESS TRANSACTIONS►What else? Any Trends? What else? Any Trends?

ObservationsObservations

Learning about Value Learning about Value InnovationInnovation

►Online Book BusinessOnline Book Business►Amazon.com, Barnes and Noble, Amazon.com, Barnes and Noble,

BordersBorders Amazon forced entrenched market Amazon forced entrenched market

leader, B&N on the Internetleader, B&N on the Internet But the needs and demographics of But the needs and demographics of

the online customer is differentthe online customer is different►Explore profile of online customers Explore profile of online customers – are they different?– are they different?

Traditional versus New Traditional versus New EntrantsEntrants

►Toy R Us vs eToys – who wins?Toy R Us vs eToys – who wins?

►Traditionalists – worried that selling to Traditionalists – worried that selling to customers directly will wreak havoc on customers directly will wreak havoc on their finely tuned retail channels, their finely tuned retail channels, pricing structures, and distribution pricing structures, and distribution channelschannels

►New Entrants – challenge these New Entrants – challenge these assumptionsassumptions

Challenging Traditional Value-Challenging Traditional Value-Continuous Improvement in areasContinuous Improvement in areas

►Speed of serviceSpeed of service►ConvenienceConvenience►PersonalizationPersonalization►PricePrice► InnovatorsInnovators: look for what new things : look for what new things

customer value rather than focusing on customer value rather than focusing on differences among customers (market differences among customers (market segment analyses are not as as reliable segment analyses are not as as reliable in current turbulent environment)in current turbulent environment)

Major Trends Driving e-Major Trends Driving e-BusinessBusiness

►Customer – faster service, self-Customer – faster service, self-service, more choices, integrated service, more choices, integrated solutionssolutions

►E-Service – E-Service – integratedintegrated sales & sales & service, seamless support, flexible service, seamless support, flexible fulfillment and delivery, increased fulfillment and delivery, increased process visibilityprocess visibility

►Organizational – outsourcing, virtual Organizational – outsourcing, virtual distributiondistribution

►So onSo on

Begins as a Channel, but extendsTo Total Transformation of Business

e-Channel

e-Market-Makers(B2B)

Click &Brick

e-Portal(B2C)

Pure E

Basic efficiency, effectiveness, and enhancements

Selling goods/services

Payment/settlementenhancements

Traditional business transferredto the Net

Rise of new intermediaries

New forms of supply chainintegration

Consolidation/transformation ofIntermediary industry

e-Business Structural Patterns

Customer expects “E” everywhere

Fundamental redesign of business

New structures to allow marketmaking, trading, and virtualwarehousing

CRM - DefinitionCRM - Definition

► Integrated sales, marketing, and Integrated sales, marketing, and service strategy that depends on service strategy that depends on coordinated enterprise-wide actionscoordinated enterprise-wide actions Track customer interactions (touch points)Track customer interactions (touch points) Response managementResponse management Order configurationOrder configuration Telemarketing, telesales, lead qualification Telemarketing, telesales, lead qualification

and tracking, marketing campaigns etc.and tracking, marketing campaigns etc.

►Note: It is a business strategy NOT a Note: It is a business strategy NOT a productproduct

Goals of CRM Business Goals of CRM Business FrameworkFramework

1.1. Using existing relationships to grow Using existing relationships to grow revenuerevenue

2.2. Using integrated information for Using integrated information for excellent serviceexcellent service

3.3. Introducing consistent, replicable Introducing consistent, replicable channel processes and procedureschannel processes and procedures

► Three phases of CRMThree phases of CRM:: Acquiring new customers Enhancing profitability of existing

customers Retaining profitable customers for life