Chapter 2 Major Business Initiatives

1. Supply Chain Management SCM
   
   
   1. Traditional model buy, hold, ship
   2. Dell Model sell source ship
   3. Just in time
      to reduce warehouse costs
      Japanese model.
      WSJ 2000 reported pharmaceutical stocks outs due to razor thin inventories and JIT.
      What is the cost of a stock out?
      
   4. Logistics
      
      
2. Customer relationship management CRM
   1. Is the customer always right?
   2. Best Buy
      $24 Billion in Sales
      Brad Anderson CEO
      Angels and Devils
      Sales gain in stores using Angel / Devil policy
   
   
3. Business Intelligence
   1. knowledge
      1. timeliness
      2. quality vs quantity
         needle in the haystack
         Fooled by randomness
         Data Trap
      3. value
         1. pleasure or entertainment value
         2. long term educational benefit
         3. ability to change behavior
      4. costs
      5. internal
      6. external
   2. Competitive Intelligence
   3. Data warehouses, data marts, data mining.
   4. exception detection (diff)
   5. automatic learning
   6. Opportunities
      1. Corporate performance
      2. Optimize CR
      3. Strategy packages
      4. Reporting of BI
         1. actionable
         2. time
         3. location
         4. form
   7. Not yet in wide use.
   8. IT support
   
   
   
4. Integrated Collaboration environments ICE
   1. virtual teams (fig 2.10 p 78)
   2. knowledge management shared DB. Lotus notes
   3. social networks non formal
   4. fig 2.12 p 81.
   
   
   
5. Integrated Enterprise
   p 82 fig 2.13