Download Business Information Systems Lecture 8: Cisco Review and E-Commerce - Prof. John Musacchio and more Assignments Accounting in PDF only on Docsity!
ISM 50 - Business Information Systems
Lecture 8
Instructor: John Musacchio UC Santa Cruz October 23, 2007
Class announcements
Assignment 3 due Tuesday 10/ Project Proposal due Today Reading for next class Messerschmitt Ch 4 Student Presentations Thursday 10/25Student Presentations Thursday 10/ Jordan Lee (News) Elisabeth Dakhil (News)
Student Presentation
Alyson Ng (News)
Cisco Review
Team of people from all types of departments “cross-functional team”
Was this necessary? What did it cost?
Cisco Review
Vendor Selection
KPMG consultants
Oracle ERP
Good selection? Why were they “hungry?”
Cisco Review
Top Management made it a priority
What effect did this have?What effect did this have?
Cisco Review
Rapid Iterative Prototyping?
What was this?
Was it a good strategy?
Was aggressive pace good, or reckless?
Cisco review
Project justification
Did they do a RoR or NPV analysis to justify the project?the project?
Cisco Summary
Success Factors Cross-Functional Team of top people People from across the company involved Hungry Vendors Oracle and KPMG needed this to succeedOracle and KPMG needed this to succeed Strong Support from Top Management Favorable Hardware Contract Rapid Prototyping Aggressive pace Good management or luck?
Cisco Summary
Challenges Poor testing Strategy Inadequate Hardware S ftSoftware required more modifications i d difi ti than originally hoped.
Cisco Summary
What did it cost?
Costs Beyond original budget: Non-IT Personnel In Project 80 personnel X 8 months X 160 hours / month X 100 hour = $10 million IT-Personnel beyond original 20 80 personnel X 4.5 months X 160 hours / month X 100 hour =$5.7 million
Actually cost more than 15 million more than the original budget of $15 million!
Was this really a success?!
E-Commerce
Major Categories Consumer (B2C) Example: Amazon.com sells books to consumers. Inter-consumer (C2C)( ) Example: e-bay Inter-enterprise (B2B) Example:
Customer Support
Often need to provide post-sales service to the customer In person Over telephoneOver telephone Via Network Email Remote conferencing FAQ board Automatic distribution of new versions or patches
Customer Relationship Management
The challenge of maintaining the relationship with a customer is called Customer Relationship Management (CRM)
CRM software applications seek to provide customerCRM software applications seek to provide customer facing employees a complete view of each customer. What they’ve bought and returned. What problems they’ve reported. What other agents they’ve talked to in the past.
An opportunity to add value.
E-Commerce
Major Categories Consumer (B2C) Inter-consumer (C2C) Inter-enterprise (B2B)Inter enterprise (B2B)
Consumer e-commerce (B2C)
What have you bought on the Internet, or what do you buy most often?
What are the advantages andWhat are the advantages and disadvantages compared to a retail store or direct mail catalog?
Some Advantages
For the Consumer Check prices at many vendors with minimal effort Price many options AA nonymityit Order tracking For the Business Global reach Automate order taking (cost savings) Price Discrimination
Inter-Consumer (E-commerce)
Prime Example E-Bay
Other examples?Other examples?
What value does something like E-bay add over a simple classifieds listing like craigslist?
Inter-Enterprise E-Commerce
(B2B)
Procurement One enterprise purchases goods or services from another Direct Procurement Ongoing, consistent, and scheduled procurementg g, , p
The relationship between firms involved in direct procurement often called a Supply Chain
The set of problems associated with managing a supply chain is called Supply Chain Management (SCM)
SCM
Need to manage the procurement of parts Don’t run out of any one Don’t order too many Order far enough in advance
Tire Manufacturer Window Mfg…
Car Plant Ideally Know in advance # cars features
Steel Mfg.
Coal Mine
Iron Ore Mine
Car Plant
SCM
Memory Manufacturer
Hard Drive Case Manufacturer Manufacturer
Thousands of orders per day, each with different requirements! Adjusting orders from suppliers constantly di t d d
Power Supply Manufacturer (^) CPU Manufacturer
Motherboard Manufacturer
Final Assembly Manufacturer
according to demand Minimal inventories Cut costs Much more sensitive to errors or disruptions mass customization requires sophisticated SCM
Networked Computing in direct
Procurement
History predates Internet
Electronic Data Interchange (EDI)
Exchange order information between firms involved in direct procurement Usually large firms who could who afford proprietary communication links Initially order and invoice Existed since 70’s
Financial EDI (FEDI) later added EFT
payment capability
Networked Computing in direct
Procurement
XML (Extensible Markup Language) is another data interchange format making an impact on inter-enterprise commerceimpact on inter enterprise commerce
We will talk more about this later in the quarter.
Indirect Procurement
Sporadic purchase of goods and services to support organizational objectives Example: Office Furniture
Alibris
Why is Alibris having so much trouble setting up simple e-commerce capabilities?
Is this really that hard??
Is it rare for a new-software product from an established, reputable vendor not to work properly?
Alibris
Should Alibris stick with Oracle? Or switch back to Thunderstone?
Alibris
Should Manley take the “white knight’s” offer and fire the whole IT staff??!
Alibris
Rejects “white knight” offer Manley secures another bridge loan Goes Live 1998 Thunderstone’s software works ok 1 million books at Sparks warehouse by 20001 million books at Sparks warehouse by 2000 Originally all on consignment from dealers Later, purchases books 2002 – Revenue $31 million, loss $7.2 million 2003 – Revenue $45.5 million, loss $4.8 million March 2004 files for “auction based” IPO May 2004, withdraws IPO after price too low Still Relying on Private Financing
