Changing environment and its impact on business
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Changing environment and its impact on business - Unitedworld School of Business
Transcript of Changing environment and its impact on business
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Management Information Systems
Unit 1: Organization & Information Systems
Chapter 1
Changing Environment and its impact on Business
Can we sayTechnology Transforms the Organization ?!!
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What’s my return on investment on e-commerce?
Are you crazy? This is the Columbus of the New World. What was his ROI?
- Andrew Grove, Intel Chairman
Some Numbers 1/2
The online retail industry is expected to touch INR 7000 crore by 2015 (from current INR 2000 crore)
The annual growth of online transactions is 50% every year
Over 65% of Mumbai population and 45% of Delhi Population shop online
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Some Numbers 2/2
By June 2010, More than 99 million businesses worldwide had dotcom Internet sites registered
The Single’s Day (November 11, 2011) created a history for China’s online businesses with 10 million orders
Thailand online shopping trends show a rise of nearly 60%
Many Fortune 500 companies now have Facebook pages
Prepared and Presented by Prashant P Jani 1 - 7
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 Competitiveness The Internet has affected the five
forces by ◦Lowering entry barriers for new firms◦Creating substitutes for traditional
businesses (Stock trading and music) ◦Creating new markets that change the
way buyers and supplies interact Amazon.com has no physical stores and
hence a smaller infrastructure which is easier to manage
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Business Today
Manufacturing and production
Accounting and finance
Engineering and
research
Supply chain management: procurement, distribution, and
logistics
Customer relationship management: Marketing, Sales, Customer Service
Intern
et
Intern
et
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The Challenges of Change Within organizationsOrganizational structureInterorganizational relationsThe economyEducationNational development
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Metrics for Business Impact
Market shareNumber of markets in which a
firm participatesNumber of new marketsSales growthSize of the average saleSales per employee
Prepared and Presented by Prashant P Jani1 - 14
Lean and Agile Manufacturing, Mass Customization
The Dell Model◦Phone and Internet orders◦Little or no in-process inventory◦No finished goods inventory◦Purchasing agreements with
companies, universities, and government agencies Customized Web ordering pages
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Dell’s Inventory Turnover Data Year Inventory Turnover Week's
Inventory
1992 4.79 10.8561993 5.16 10.0781994 9.4 5.5321995 9.8 5.3061996 24.2 2.1491997 41.7 1.2471998 52.40 0.9921999 52.40 0.9922000 51.4 1.0122001 63.50 .819
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The Impact
Will increase the size of the ‘manageable’ span of control for managers by decreasing the costs and difficulties of information handling (and thus reducing the costs of coordination)
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The Impact
The more efficient automated systems will eliminate 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 manager’s 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 he can best structure his company to its environment and thus improve its competitive posture competitive posture
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Campus Overview
907/A Uvarshad, GandhinagarHighway, 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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Thank You
