Appendix Managing the Value Chain, Web 2.0, and E-Business © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part The Organization as a Value Chain  The technical core is the heart of the organization: production of product/service   The organization is a value chain  Operations Management – use of tools and techniques to ensure that goods and services are delivered successfully to customers Operations management pertains to the daily management of the technical core © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part A.1 - The Organization as a Value Chain © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part A.2 - Differences between Manufacturing and Service Organizations © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Supply Chain Management Managing the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part A.3 - An Integrated Supply Chain © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part A.4 - Basic Production Layout All the equipment and materials that relate to a specific function are grouped together © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part A.4 - Basic Production Layout Machines and tasks are arranged according to the progressive steps in producing a single product © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part A.4 - Basic Production Layout People and equipment are grouped into cells that perform all the tasks needed to serve a particular client © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part A.4 - Basic Production Layout The product remains in one location, and employees and equipment are brought to it 10 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Technology Automation  Radio-Frequency Identification (RFID) – identification tags that emit radio signals to track inventory  Digital Manufacturing Systems – the use of technology to adapt production processes  Lean Thinking – combining advanced technology and effective management to solve problems and cut waste 11 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Inventory Management  Inventory is the goods that an organization keeps on hand for the production process; types of inventory: Finished-goods inventory Work-in-process inventory Raw materials inventory  Inventory management is vital to an organization because it costs money 12 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part A.5 - Large Inventories Hide Operations Management Problems 13 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Just-in-Time Inventory  Designed to reduce inventory and associated costs  The aim is to push the time that inventory sits on shelves to zero  Also called stockless systems, zero inventory systems, or kanban systems  Can aid in creating organizational flexibility 14 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Information Technology has Transformed Management  Information technology consists of: Hardware Software Telecommunications Database management Other data storage devices 15 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Information Technology has Transformed Management  Information technology has positive implications for the practice of management Can connect people from around the world: Boundaries Dissolve and Collaboration Reigns 16 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Knowledge Management and Web 2.0  Knowledge management includes systems to gather and organize knowledge to foster a culture of learning and knowledge sharing Business intelligence software Expert-locator systems Groupware (collaborative work systems) 17 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Knowledge Management and Web 2.0  Web 2.0 includes blogs, wikis, and social networks  Web 2.0 easily supports knowledge sharing A blog includes individual posts, opinions, and ideas Blogs are simple and informal Large organizations use the micro-blogging service Twitter A wiki uses software to create, share, and edit content 18 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Enterprise Resource Planning (ERP)  ERP integrates and optimizes all the various business processes  Provides information to entire enterprise  Links all areas of activities  Customers and suppliers are linked into the exchange as well  ERP can cut costs, shorten cycle time, enhance productivity, and improve relationships with customers and suppliers 19 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part A.6 - Example of an ERP Network 20 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part The Internet and E-Business E-business is any business that takes place digitally over a computer network Intranet is an internal communication system E-commerce is electronic business exchanges and transactions Extranet is an external communications system to share with other organizations 21 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part A.8 - The Key Components of E-Business for two Traditional organizations 22 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part E-Business Strategy: Market Expansion  Internet provides a direct link to customers around the clock all over the world  Corporations are using Facebook fan pages and applications to engage customers  Web sites can help drive more traffic into the stores and expand to new markets 23 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part A.9 - Strategies for Engaging Clicks with Bricks 24 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part E-Business Strategy: Increasing Efficiency  E-business strategies can increase productivity and cut costs  Companies are using Twitter to forecast sales  E-business can prompt significant productivity gains  Service organizations are using the Internet to negotiate and save money 25 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part [...]... Information Technology has Transformed Management  Information technology consists of: Hardware Software Telecommunications Database management Other data storage devices 15 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Information Technology has Transformed Management  Information technology... technology has positive implications for the practice of management Can connect people from around the world: Boundaries Dissolve and Collaboration Reigns 16 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Knowledge Management and Web 2.0  Knowledge management includes systems to gather and organize knowledge... technology to adapt production processes  Lean Thinking – combining advanced technology and effective management to solve problems and cut waste 11 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Inventory Management  Inventory is the goods that an organization keeps on hand for the production process;... inventory Work-in-process inventory Raw materials inventory  Inventory management is vital to an organization because it costs money 12 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part A.5 - Large Inventories Hide Operations Management Problems 13 © 2016 Cengage Learning All Rights Reserved May not... Groupware (collaborative work systems) 17 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Knowledge Management and Web 2.0  Web 2.0 includes blogs, wikis, and social networks  Web 2.0 easily supports knowledge sharing A blog includes individual posts, opinions, and ideas Blogs are simple and informal ... chain  Operations Management – use of tools and techniques to ensure that goods and services are delivered successfully to customers Operations management pertains to the daily management of the... in part Information Technology has Transformed Management  Information technology consists of: Hardware Software Telecommunications Database management Other data storage devices 15 © 2016... whole or in part Information Technology has Transformed Management  Information technology has positive implications for the practice of management Can connect people from around the world: Boundaries