ITMG 100 Final
Why is CRM needed?
(1) identify the many types of customer touch points --> use information to create highly individualized offers that customer are more likely to accept (2) achieve customer intimacy - Costs 6x more to sell to a new customer than to sell to an existing one
Five major m-commerce applications
1) Location-Based Application and Services 2) Financial Services 3) Intrabusiness Applications 4) Accessing Information 5) Telemetry Applications
Business pressures
1) Market Pressure 2) Technology Pressure 3) Societal/Political/Legal Pressures
Near-field communications (NFC)
- Short range, embedded in mobile devices ex. creadit cards, apple pay
Batch Processing
- Transaction processing system that collects data from transactions as they occur, placing them in groups or batches - processess the data periodically
procurement process
- all of the tasks involved in acquiring needed materials externally from a vendor - five steps in three functionals areas: warehouse, purchasing and accounting 1) warehouse documents the low-stock material --> send to purchasing dept. 2) purchasing dept. identifies suitable vendor --> creates a purchase and send order to vendor 3) vendor receives purchase --> ships materials and received in the warehouse 4) vendor says invoice to accounting dept. 5) accounting sends payment to vendor
Consumer-to-consumer electric commerce (C2C)
- an individual sells products or services to other individuals
University of Pittsburgh Medical Center (UPMC) Case
- center implemented and developed IT to make healthcare more effective and efficient - UPMC's IT initiatives are developed at its Technology Development Center (TDC) - TDC's mission is to develop new healthcare technologies and then to provide resources for startup companies to develop these technologies Ex: TDC is developing a telemedicine system, Virtual Care Collaboration (VCC). It combines videoconferencing and medical records
ERP System
- designed to correct a lack of communication among the functional area IS - tightly integrating a the functional area IS via a common database - adopt a business process view of the overall organization to integrate the planning, management and use of all of an organization's resources, employing a common software platform and database
Support activities
- do not add value directly to the firm's products or services - support primary activities
Enterprise resource planning (ERP) systems
- goal: tightly integrate the functional areas of the organization and to enable information to flow seamlessly across various functional areas - adopt a business process view of the overall organization to integrate the planning, management, and use of all of an organization's resource, employing a common software platform and database
Porter's Competitive Forces Model
- organization use this model to design general strategies 1. threat of entry of new competitors - new competitors entering = high when entry barrier is low 2. bargaining power of suppliers - supplier power is high when buyers have few choices from whom to buy from (and vice versa) 3. bargaining power of customers - buyer power is high when buyers have many choices from whom to buy 4. threat of substitute products or services - threat is high when there are many alternatives to an organization's products or services 5. rivalry among existing firms in the industry
Porter's Value Chain model
- organizations use this model to identify specific activities where they can use competitive strategies for greatest impact - identifies point where an org. can use information technology to achieve competitive advantage two categories: 1) primary activities 2) support activities
CRM
- personal marketing - business market to each customer individual rather than to a mass of people or business - customer-focused and customer-driven organizational strategy Goal: - "Treat customers differently" - maximize the number of high-value repeat customers while minimizing customer churn (1) identify the many types of customer touch points (2) consolidate the data about each customer
Short-Range Wireless Networks
- range of 100 feet or less - Connect one device to another Types: 1) Bluetooth 2) Ultra-wideband (UWB) 3) Near-field communications (NFC)
Competitive Advantage
- refers to any assets that provide an organization with an edge against its competitors in measures like cost, quality or speed - helps an organization to control a market and to accrue larger-than-average profits - something that the organization does more efficiently and effectively than its competitors (business process)
Primary activities
- relate to the production and distribution of the firm's products and services - create value for which the consumers are willing to pay
Medium-Range Wireless Networks
- the familiar wireless local area networks (WLANs) - most common type is Wireless Fidelity or Wi-Fi Types: 1) Wi-Fi direct 2) MiFi 3) Super Wi-Fi
Business-to-consumer electric commerce (B2C)
- the sellers are organization and the buyers are individuals Ex: electronic banking (internet only banks, First Internet bank of Indiana) online job matching (LinkedIn) online travel services: purchase airline tickets, reserve hotel rooms, etc. (Expedia.com, Orbitz.com)
Types of networks:
1) Short-Range Wireless Networks 2) Medium-Range Wireless Networks 3) Wide-Area Wireless Networks
Societal/Political/Legal Pressures
1) social responsibility 2) compliance with government regulations 3) protection against terrorist attacks 4) ethical issues
Technology Pressure
1) technological innovation and obsolescence 2) information overload
Types of E-commerce (6)
1. Business-to-consumer electric commerce (B2C) 2. Business-to-business electric commerce (B2B) 3. Consumer-to-consumer electric commerce (C2C) 4. Business-to-employee electric commerce (B2E) 5. E-government (G2B or G2C) 6. mobile commerice (m-commerce)
Business Process
A collection of related activities that create a product or a service of value to the organization, its business partners and/or its customers process involves: inputs, resources, outputs two fundamental metrics to assess their processes: efficiency and effectiveness
Customer Touch Point
Any interaction between a customer and an organization. such as telephone contact, direct mailings, and actual physical interactions with customers during their visits to a store
Bluetooth
Creates small personal area networks, short network created by Ericsson, Scandinavian mobile handset company uses: wireless handsets for cellphones and portable music players. - Bluetooth Smart fueling wearables
Bullwhip Effect
Erratic shifts in orders up and down the supply chain - variables that affect customer demand can become magnified when they are viewed through the eyes of managers a each link in the supply chain
Supply Chain
Flow of materials, information money, and services from raw material suppliers, through factories and warehouses, to the end customers. Also includes the organizations and processes that create and deliver products, information, and services to the end customer. Components and Structure : -Upstream: Where sourcing or procurement from external suppliers occur. Internal: Where packaging, assembly, or manufacturing takes place -Downstream: Where distribution takes place, frequently by external distributors
ERP II Systems
Inter-organizational ERP systems that provide Web-enabled links among a company's key business systems- such as inventory and production- and its customers suppliers, distributors and other relevant parties. These links integrate internal facing ERP applications with the external-focused application of supply chain management and CRM.
Super Wi-Fi
Medium range, long distance wireless connection, 3g
Cross-functional business process
No single functional area is responsible for a process in execution Steps executed in a coordinated, collaborative way ex. procurement process and fulfillment process
Skybox Case
Problem: Government reduced its imaging budget. Due to small number of satellites, ordering and obtaining an image could take days, weeks, months. IT Solution: Using inexpensive consumer hardware, company plans to ring the Earth with constellations of imaging satellites that are dramatically less expensive than existing satellites. Long term the pay off for SkyBox will be from the massive collection of unsold images the satellites capture everyday, translates into data.
Thomas Friedman and 10 Flatteners
The World is Flat: 1. The Berlin Wall Falls 2. Netscape goes public- 1995 3. Development of Workflow Software 4. Uploading 5. Outsourcing 6. Offshoring 7. Supply Chaining 8. Insourcing 9. Informing 10. The Steroids
Online transaction processing (OLTP)
Transaction processing system where business transactions are processed online as soon as they occur.
Business-to-employee electric commerce (B2E)
an organization uses EC internally to provide information and services to its employees
Business-to-business electric commerce (B2B)
both the sellers and buyers are business organizations 85% of EC volume utilize any of the 3 business models: 1) Sell-side marketplace 2) Buy-side marketplace 3) electronic exchanges
fulfillments process
concerned with processing customer orders 1) customer purchase order received and sales dept sales validates purchases and creates sales order 3) sales order communicates to other func. areas 4) warehouse prepares and send the shipment to the customer 5) accounting notified of shipment --> creates invoice
Wide-Area Wireless Networks
connects user to the internet over a geographically dispersed territory typically operate over the licensed spectrum Types: Cellular Radio Wireless Broadband or WiMAX
Disruptive Innovation: Clayton Christensen (1996)
describes a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors.
Mobile commerce (m-commerce)
e-commerce that is conducted entirely in a wireless environment
Wi-Fi direct
enables peer to peer communications so devices can connect directly, greater range than bluetooth
Market Pressure
generates by: 1) global economy and strong competition 2) need for real-time operations 3) changing workforce 4) powerful customers: strive to learn as much as possible about their customers (customer intimacy, part of CRM)
Financial Services
goal is to make it more convenient for customers to transact business regardless of where they are or what time it is
Facebook Case (closing case)
problem: - company was not earning "any significant revenue" from either mobile website or app IT solution: - integrate ads directly into a user's flow of natural activities
Electric commerce (e-commerce)
process of buying, selling, transferring, or exchanging products, service, or information via computer networks, including the Internet
Location-Based Application and Services
provide information that is specific to a given location Ex: 1) mobile user can request the nearest business or service 2) receive alerts such as warning of a traffic jam
Telemetry Applications
telemetry: wireless transmission and receipt of data gather from remote sensors Ex: doctors can monitor patients and control medical equipment from a distance
Mi-Fi
small portable wireless device, permanant wifi wherever they go
Transaction Processing System (TPS)
supports the monitoring, collection, storage and processing of data from the organization's basic business transactions collects data in real-time
Accessing Information
two types of technology to obtain and utilize information: 1) mobile portal: lean or stripped down version of a website optimized for viewing on mobile 2) voice portal: providing access to information through spoken commands and voice responses
E-government: 1. government-to-citizen (G2C) 2. government-to-business (G2B)
use of Internet technology in general and e-commerce in particular to deliver information and public services to citizens (G2C) or business partners and suppliers (G2B)
Intrabusiness Applications
uses m-commerce applications within the organization how companies use mobile computing to support their employees
Churn
when firms lose/gain customers over time. eg.) Cost 6x more to sell to a new customer than to sell to an existing one.
