Unit II Role of MIS Strategic Advantage with

Unit II • • Role of MIS: Strategic Advantage with MIS, Competitive Strategy Concept, The Value Chain and Strategic IS, • Using IT for Strategic Advantage: • Business Process Re-engineering, • Creating a Virtual Company, • • Improving Business Quality: Total Quality Management, Becoming an Agile Company, Building a Knowledge Creating Company

Role of MIS

Con. . • The entire MIS which is available to the management in the complexity of modern factories, is subdivided into various subsystems. • Examples of these subsystems are systems for finance and accounting (cost accounting, finance accounting, wage and salary), purchasing (suppliers, receiving), distribution (tender, sales, service), logistics (vehicle and tour planning, stock administration, stock movement) and technology. Source: https: //sci-hub. tw/https: //doi. org/10. 1016/09567135(91)90085 -B

Strategic Advantage with MIS

Advantages – 1. Saves time 2. Increases managerial efficiency 3. Technical assistance 4. Decision making is easier 5. Accuracy Features of MIS 1. Capable of handling voluminous data. 2. Multi dimensional analysis can be done 3. Quick search and retrieval of system.

Disadvantages – 1. Expensive. 2. Requirement of experience EDP manager and staffs. Functions of MIS 1. Improve decision making 2. Efficient operations 3. Better communication and connectivity

MIS Component

Report • • • • Audit report. Sales report department wise. Consolidated revenue analysis. Multiple reports. Stores, receiving, HR, Accounts, security, and all the major department can maintain reports and records through this system. Preparation of budget on the basis of initial data retrieved from the system. Consumption report. Cashiers summary. Void /cancellation report. Cover analysis. Popularity by menu item. Settlement report. In-house guest directory. Spoilage report and etc.

Competitive Strategy Concept Strategies that strongly position the company against competitor and give the company strongest possible strategic advantage. Competitive Strategies helps in: 1. Building profitable customer relationships 2. Gaining competitive advantage 3. Analyzing their competitors

Con. . No company can follow only one strategy. For example, Johnson & Johnson uses one marketing strategy for its common product such as BAND-AID & Johnson’s baby products; and different marketing strategy for its High Tech healthcare products such as Vicryl Plus, antibacterial surgical sutures or Neu. Flex finger joint implants.

Basic competitive strategies Over cost leadership �Companies try to achieve the lowest production and distribution cost. �Low costs let its price lower than its competitors and win a large market share. �Example: - Big bazaar

Differentiation �Company concentrates on creating a highly differentiated product line and marketing program so that it comes across as the class leader in the industry. �Example: - IBM & Samsung follow this strategy in information, technology and services and consumer electronics and household appliances, respectively.

• Companies can pursue any of the three strategies called value disciplines for delivering superior customer value. Operational excellence Customer intimacy Product leadership

The Value Chain and Strategic IS • A value chain is the full range of activities – including design, production, marketing and distribution – businesses conduct to bring a product or service from conception to delivery. • For companies that produce goods, the value chain starts with the raw materials used to make their products, and consists of everything added before the product is sold to consumers. • Value chain management is the process of organizing these activities in order to properly analyze them. The goal is to establish communication between the leaders of each stage to ensure the product is placed in the customers' hands as seamlessly as possible.

Continue…

Con. . • Harvard Business School's Michael E. Porter was the first to introduce the concept of a value chain. • "Competitive advantage cannot be understood by looking at a firm as a whole, " Porter wrote. • "It stems from the many discrete activities a firm performs in designing, producing, marketing, delivering and supporting its product. • Each of these activities can contribute to a firm's relative cost position and create a basis for differentiation. "

Con. . • Primary activities include the following: • Inbound logistics are the receiving, storing and distributing of raw materials used in the production process. • Operations is the stage at which the raw materials are turned into the final product. • Outbound logistics are the distribution of the final product to consumers. • Marketing and sales involve advertising, promotions, salesforce organization, distribution channels, pricing and managing the final product to ensure it is targeted to the appropriate consumer groups. • Service refers to the activities needed to maintain the product's performance after it has been produced, including installation, training, maintenance, repair, warranty and after-sale services.

Inbound Logistics

Strategic IS • Strategic information systems (SIS) are information systems that are developed in response to corporate business initiative. They are intended to give competitive advantage to the organization. • They may deliver a product or service that is at a lower cost, that is differentiated, that focuses on a particular market segment, or is innovative.

Example. .

Business Process Re-engineering

Con. . • Business Process Reengineering (BPR) aims at cutting down enterprise costs and process redundancies, but unlike other process management techniques, it does so on a much broader scale. • Business Process Reengineering (BPR) - also known as process innovation and core process redesign - attempts to restructure or obliterate unproductive management layers, wipe out redundancies, and remodel processes differently.

Cloud Computing • Cloud computing is the delivery of computing services—servers, storage, databases, networking, software, analytics, intelligence and more—over the Internet (“the cloud”) to offer faster innovation, flexible resources and economies of scale

Creating a Virtual Company +point • • No commute time. Employees are easily more active. Flexibility means using less vacation days. Access to worldwide talent. Less overhead. Save money on technology. Productivity increases. And many more….

Concept • A virtual company is a simulated enterprise that is set up and run by its participants with support from an educator (facilitator) and a real company (business partner). • The virtual company concept is an innovative business program, focused on activity-based learning. • The virtual company not only provides the business and IT skills that are necessary as a member of the work force, but also supports awareness of the importance of self-leaning and an understanding of international business and culture.

Improving Business Quality

Total Quality Management

Agile company • An agile company is a business that has the ability to quickly adapt to market changes. • There are some of the key identifying characteristics of an agile company. • Must be fast-moving and flexible, have rapid response to unexpected obstacles, lead change, be in touch with customers, and have continuous competitive advantage, and flat organizational structure for quick communication.

Cont…

Cont… • The food manufacturing industry in India is governed by increasing constraints in finances, increasing and unreasonable customer requirements. • Hence to sustain the growth and to be successful in the market, many food manufacturers are transitioning to Agile to efficiently and effectively plan and execute complex scenarios, reduce food wastage, deliver ingredients and products which meet the customers’ basic requirements and to position themselves as the complete food solution providers to their customers.

Agile tools can help food industries in the following ways: • • • Bids and Proposals Prototyping Supplier Management: Product Portfolio Planning and Maintenance Post sales service and support Source: http: //blog. scrumstudy. com/impact-ofagile-in-food-sector/

Cont… Challenges If you’re feeling strapped, with fewer resources and more demands, you’re not alone. Today’s food manufacturers face a host of obstacles, including: • Productivity: Increasing visibility into the manufacturing process, identifying the root cause of line shutdowns immediately, improving operational performance and maximizing speed to market. • Agility: Increasing asset utilization and line flexibility to produce more products with fewer machines or lines. • Safety: Optimizing workplace safety and meeting regulations without impacting productivity. • Brand equity: Ensuring consistent product quality and on-time product deliveries. • Tight margins: Reducing scrap and increasing yield to improve the bottom line in a low-margin industry

At each point during production, there are four key areas to evaluate to increase efficiency and asset utilization. • Machinery: Effectively utilizing machines to produce a product right the first time for improved first-pass quality. • Materials: Using the correct and required amount of material in a recipe to minimize waste. • Methods: Using the correct tools and mostefficient processes to manufacture a product. • Manpower: Ensuring operators have the right skills and are focused on the task at hand while eliminating time spent on unnecessary activities.

Cont… • https: //literature. rockwellautomation. com/id c/groups/literature/documents/wp/foodwp 005_-en-e. pdf