Ch 19: Value chain, information technology and e-business

Ch 19: Value chain, information technology and e-business

1. technical core

   • heart of the organization’s production of its product or service
     • Operations management
       • field of management that specializes in the production of goods and services and the problem solving
         • raw materials, facilities location and equipment, and how to get products or services to customers

2. Manufacturing and service operations

   • production
     • operations
       • Manufacturing organizations
         • produce physical goods
         • service organizations
           • produce nonphysical outputs
           • Supply chain management
             • managing the sequence of suppliers and purchasers covering all stages of processing
               • from obtaining raw materials to distributing finished goods to final consumers

3. Facilities layout

   • Process Layout
     • in a manufacturing firm is one in which all machines that perform a similar function or task are grouped together
       • reduces costs
         • product layout
           • A facilities layout in whi hc machines and tasks are arranged according to the sequence of steps in the production of a single product
             • Cellular Layout
               • A facilities layout in which machines dedicated to sequences of production are grouped into cells in accordance with group technology principles
                 • fixed-position layout
                   • A facilities layout in which the product remains in one location and the required tasks and equipment are brought to it

4. Technology automation

   • combination of technology and management to produce goods and services
   • Radio-frequency identification (RFID)
     • uses electronic tags that can identify and track individual items
     • flexible manufacturing system
       • A small or medium sized automated production line that can be adapted to produce more than one product line
         • Lean manufacturing
           • process using highly trained employees at every stage of the production process to cut waste and improve quality
           • lean production

5. Inventory management

   • Inventory
     • the goods the organization keeps on hand for use in the production process
     • Finished-goods inventory
       • consisting of items that have passed through the complete production process but have yet to be sold
     • work-in-process inventory
       • composed of the materials that still are moving through the stages of the production process
     • raw materials inventory
       • Inventory consisting of the basic inputs to the organization’s production process.
   • Just-in-time (JIT) inventory systems
     • reduce the level of an organization’s inventory and its associated costs, aiming to push to zero the amount of time that raw materials and finished products
       • stockless systems, zero inventory systems, or kanban systems.

6. information technology (IT)

   • consists of the hardware, software, telecommunications, database management, and other technologies
     • store data and make them available in the form of information for organizational decision making
   • Knowledge management
     • refers to the efforts to systematically gather knowledge, organize it, make it widely available throughout the organization.
     • data
       • Raw, unsummarized, and unanalyzed facts and figures.
       • information
         • Data that have been converted into a meaningful and useful context for the receiver
         • knowledge
           • A conclusion drawn from information after it is linked to other information and compared to what is already known
       • knowledge management portal
         • A single point of access for employees to multiple sources of information that provides personalized access on the corporate intranet
         • wiki
           • Web site that allows anyone with access, inside or outside the organization, to create, share, and edit content through a simple, browserbased user interface
           • business intelligence software
             • e software that analyzes data from multiple sources and extracts useful insights, patterns, and relationships that might be significant.

7. management information system

   • is a computer-based system that provides information and support for effective managerial decision making
     • Decision support systems (DSSs)
       • An interactive, computer-based system that uses decision models and specialized databases to support organization decision makers
         • executive information system (EIS)
           • A management information system designed to facilitate strategic decision making at the highest levels of management by providing executives with easy access to timely and relevant information
             • business performance dashboard
               • A system that pulls data from a variety of organizational systems and databases; gauges the data against key performance metrics; pulls out the right nuggets of information; and delivers information to managers in a graphical, easy-to-interpret format
                 • groupware
                   • Software that works on a computer network or the Internet to facilitate information sharing, collaborative work, and group decision making
                     • enterprise resource planning (ERP) system
                       • A networked information system that collects, processes, and provides information about an organization’s entire enterprise, from identification of customer needs and receipt of orders to distribution of products and receipt of payments

8. a new generation of information technology

   • blog
     • Web log that allows individuals to post opinions and ideas
       • social networking
         • Online interaction in a community format where people share personal information and photos, produce and share all sorts of information and opinions, or unify activists and raise funds
           • peer-to-peer file sharing
             • File sharing that allows PCs to communicate directly with one another over the Internet, bypassing central databases, servers, control points, and Web pages
           • Internet and e-business
             • e-business
               • Any business that takes place by digital processes over a computer network rather than in physical space
             • e-commerce
               • Business exchanges or transactions that occur electronically.
                 • intranet
                   • An internal communications system that uses the technology and standards of the Internet but is accessible only to people within the organization.
                 • extranet
                   • An external communications system that uses the Internet and is shared by two or more organizations