changing environment and its impact on business presentation - unitedworld school of business
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7/28/2019 Changing Environment and Its Impact on Business Presentation - Unitedworld School of Business
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Management Information
Systems
Unit 1: Organization & Information Systems
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Chapter 1
Changing Environment and its
impact on Business
Can we say
Technology Transforms the
Organization ?!!
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Whats my return on investmenton 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 1/2
The online retail industry isexpected to touch INR 7000 crore by
2015 (from current INR 2000 crore)
The annual growth of onlinetransactions is 50% every year
Over 65% of Mumbai population
and 45% of Delhi Population shoponline
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Some Numbers 2/2
By June 2010, More than 99 millionbusinesses 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
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HR
Purchase
Finance
Legal
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Web and CompetitivenessThe Internet has affected the five
forces by Lowering entry barriers for new firms
Creating substitutes for traditionalbusinesses (Stock trading and music)
Creating new markets that change theway buyers and supplies interact
Amazon.com has no physical stores andhence a smaller infrastructure which iseasier to manage
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Business Today
Manufacturing
and production
Accounting and
financeEngineering
and
research
Supply chain management:
procurement, distribution, and
logistics
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 CustomizationThe Dell Model
Phone and Internet orders
Little or no in-process inventory
No finished goods inventory
Purchasing agreements with
companies, universities, andgovernment agencies
Customized Web ordering pages
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Dells Inventory Turnover
DataYear Inventory Turnover Week's Inventory
1992 4.79 10.8561993 5.16 10.078
1994 9.4 5.5321995 9.8 5.3061996 24.2 2.1491997 41.7 1.2471998 52.40 0.992
1999 52.40 0.9922000 51.4 1.0122001 63.50 .819
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The Impact
Will increase the size of themanageable span of control for
managers by decreasing the costs
and difficulties of informationhandling (and thus reducing the
costs of coordination)
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The Impact
The more efficient automated systems willeliminate 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 hecan best structure his company to its environment
and thus improve its competitive posture
competitive posture
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Campus Overview
907/A Uvarshad,
Gandhinagar
Highway, Ahmedabad
382422.
Ahmedabad Kolkata
Infinity
Benchmark, 10th
Floor, Plot G1,Block EP & GP,
Sector V, Salt-
Lake,
Kolkata
700091.
Mumbai
Goldline Business
Centre Linkway
Estate,Next to Chincholi
Fire Brigade, Malad
(West), Mumbai
400 064.
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