Management 12e richard draft END

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

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© 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

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A.2 - Differences between Manufacturing and Service
Organizations

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Supply Chain Management

Managing the sequence of suppliers and purchasers, covering all stages
of processing from obtaining raw materials to distributing finished
goods

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A.3 - An Integrated Supply Chain

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A.4 - Basic Production Layout

All the equipment and materials that relate to a specific function are grouped

together
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© 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

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© 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

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© 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

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© 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

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© 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

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A.5 - Large Inventories Hide Operations
Management Problems

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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

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© 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

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© 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

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© 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)

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© 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

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© 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

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A.6 - Example of an ERP Network

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© 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

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A.8 - The Key Components of E-Business for two Traditional
organizations

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© 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

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© 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

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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

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© 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.