Ch 10 Ed.docx

Ch 10 Ed.docx

《Ch 10 Ed.docx》由会员分享，可在线阅读，更多相关《Ch 10 Ed.docx（15页珍藏版）》请在冰豆网上搜索。

Ch10Ed

Chapter10

e-BusinessSolutions:

TheEnablerofGlobalSupplyChain

10.1e-BusinessSolutions:

TheEnablerofGlobalSupplyChain

10.1.1Globalsupplychain

Thegrowinginterestine-Businesssolutionsisaresultofglobalcompetition,theevolutionofcommunicationandInternettechnology,andtheconvergenceoflocal,regionalandworldmarkets.Theterme-Businesssolutionsbegantoappearinprintinthemid1990swhenInternettechnologybegantopenetratethebusinessworld.Asweenterthe21stcentury,globallyexpandingbusinessmodelssuchasthedirectsellmodel,internet-basedlogisticsmodel,andzero-inventorysystemsmodelareredefiningsupplychainoperations.

However,ane-Businessmodelisnotjustane-Solution.Rather,itconsistsofasetofphasesdescribedbelow:

（1）Avaluepropositionthatreflectsthecompetitiveglobalmarket;

（2）Aproactivebusinessplanthatdeterminesproductsandmarkets;

（3）Aninnovativebusinessmodelthatreliesontechnicalexpertisetoconsolidatecorecompetenciestocarryoutthebusinessplan;

（4）Awell-conceivedsupplychainnetworkthatsmoothesinformationflows,materialflows,serviceflows,andfund/cashflows;

（5）Acutting-edgeinformationtechnologyenablerthatconnectsinformationflows;and

（6）Anunprecedentedlevelofperformancewhichcreatesvalueforthesupplychainanditsclients.

LetusconsiderLi&Fung,apremiertextiletradingcompanyinHongKong,andobservehowLi&Fungimplementstheabovesixsteps.Inthelate1970s,thetradingbusinesswasconsideredasunsetindustrywithverylittlehopetogrow.Nevertheless,Li&Fungredirecteditsbusinesstoreflecttheglobalcompetition.First,itcreatedavaluepropositionthatfocusedonprovidingone-stopshoppingfromproductdesignanddevelopment,rawmaterialandfactorysourcing,productionplanningandcontrol,andqualityassuranceanddeliverydocumentation.Thismodelisspecificallyvaluabletothosehigh-volume,time-sensitiveapparelproducersandretailerssuchastheLimitedBrands.Then,aproactivebusinessplanclearlydeterminesitsmarketsandbusinessclients.Next,abusinessmodelcalled“ProductionProgram”isinitiated.Givenacustomerdesigner’ssketch,Li&Fungsearchesfortherightmaterial,andcomeupwithaproductionprogramthatspecifiesproductmixandproductionschedules.Theythenfollowupbyensuringqualityinspectionandontimedelivery.Asupplynetworkthatconnectssuppliersandproducersof41countriesthathasbeendevelopedoverthepast20yearsensuressuccessfulimplementationofthenewbusinessmodel.Whenthesourcingconcentrationisonlowcost,Asiansuppliersusuallyhavetheprioritytobeselected;however,whenquickresponsehitsthetopofthelist,suppliersandproducersinEasternEurope,theMediterranean,andSouthAmericawillbecontractedtomeetthedeliveryrequirementsinthesameregion.Withsuchanexpandednetwork,informationtechnologybecomesaninevitableenablerforLi&Fungtoeffectivelycommunicateacross74officesin41countries.E-Solutionssuchasemail,fax,EDI,website,ande-Hubconnectitsworldwidesupplynetwork.By2004,Li&Funggeneratedannualrevenueof$7billionandhad18,000employeesaroundworld.

10.1.2e-Solutionoutsourcing:

Aperceivabletrend

Asbusinessesspreadoutovertheworld,IToutsourcingbecomesagoldenopportunityformanycorporationstogeneratehighrevenues.TheIToutsourcingmodelhasbeenadoptedbyatleast40%ofFortune500companies.CorporationssuchasMicrosoft,Lucent,DellInc.,WellsFargo,andMotorolaallhaveoffshoredivisions.AshortageofITsoftwaredevelopmentskills,reductionindirectandindirectcosts,anddecreasesindeliveryleadtimebroughtmajorchangesinITsourcingarrangements.Additionally,offshoreofficesenable“follow-the-sun”officehours.WhenaUSteamfinishesaneight-hourworkday,theIndianofficewillpickuptheduty.

Startingin2001,DellInc.openedtechnicalsupportcentersforU.S.consumersandcustomersaroundtheworld.In2006,DellIndiawasabletoexpandoperationstoincludesalescenters.Dell’stwoIndiaservicecenters,HyderabadandBangalore,haveover6,000staffmembers.NowDellIndianotonlyfocusesoncustomerservicecallsbutalsoworksonproductdevelopmentandtesting.

However,thereisadownsideassociatedwithoffshoreservicecenters.SomeseriouscomplaintsaboutDell’soffshorecallcenterhasforcedDelltostoproutingtechnicalinquiriesfromsomecorporatecustomerstoitsoverseasofficesduetocomplaintsaboutthepoorqualityofitsoffshorecenters.

10.2EnterpriseInformationSystems

AnEnterpriseInformationSystem（EIS）isanintegratedinformationtechnologyforstreamliningbusinessprocesses;itisabletofacilitatetheflowofdataandinformationamongallsupplychainprocessesofafirmandamongtradingpartners.WikipediaEncyclopediadescribesEISasfollows:

EnterpriseInformationSystemsprovideatechnologyplatformthatenableorganizationstointegrateandcoordinatetheirbusinessprocesses.Theyprovideasinglesystemthatiscentraltotheorganizationandensurethatinformationcanbesharedacrossallfunctionallevelsandmanagementhierarchies.Enterprisesystemsareinvaluableineliminatingtheproblemofinformationfragmentationcausedbymultipleinformationsystemsinanorganization,bycreatingastandarddatastructure.

AnEISformallycalledERP（enterpriseresourceplanningsystems）isasystemforasingleenterpriseorcompany,attemptingtointegratemostofthebusinessactivitieswithinthecompany.Oneenterprisecanbeinvolvedwithonesupplychainorwithanumberofsupplychainsfordifferentproductlinesandmarkets.ManycompanieshavebeguntorecognizeEIS’potentialtocreateabroadersourceofcompetitiveadvantage,andhavecapitalizedontheincreasinglycross-functionalspanofthetechnology.

EISsystemexpenditureswereamongstthelargestITinvestmentsofthe1990s.EISsystemshavebeenimplementedinover60%ofmulti-nationalfirms.Thelicense/maintenancerevenueoftheEISmarketwas$17.2billionin1998.EvenmajorUSsoftwarecompanieshaveadoptedEISproducts.Forexample,IBMandMicrosoftnowrunmostoftheirbusinessonSAPR/3ERsoftware.Thedatareleasedinthefourthquarterof2000indicatesthattheworldwideEISmarketwillgrowatarateof24.9%andreach$73billionin2004.Recently,EISisbecomingpopularinthesmallandmediumenterprisemarketsegmentduetothesuddenimportanceofCustomerRelationshipManagement（CRM）,supplychainmanagement,andbusinesstocustomer（B2C）commerceinthebusinessenvironment.

10.2.1Businessprocessreengineering–ThefoundationforimplementingEIS

Itisnotthefirsttimeinhistorythattechnologyhasreshapedanexistingbusinessprocess.Inthe1920s,FordMotorproductionsystemutilizedassemblylinetechnologytospeedupproductivityandrealizeeconomiesofscale.Thistechnologyalteredtheentireautomobileproductionprocess.Today,computerandinformationtechnologyhavecreatedanewwayofdoingbusiness,whichrequiresorganizationstore-thinkandre-structuretheirbusinessprocess.Thisinitiativeiscalledbusinessprocessre-engineering.

Businessprocessre-engineeringisamethodbywhichanorganizationexaminesandredesignsitsbusinessprocessesinaccordancewithitsstrategicobjectivesofimplementingenterpriseinformationsystems.

EISisaprocessorientede-Businesssolutionthatkeepstrackofpurchasing,businesstransactions,orderfulfillment,andproductionplanningandcontrolactivities.Consequently,onebusinessprocessissueoftenhasrepercussionsandeffectsonanotherprocessissue.EverycompanythathasimplementedanEISsystemisfacedwithreengineeringitsexistingwayofdoingbusiness.

TosuccessfullyimplementEISsystems,anorganizationneedstoanalyzeitsbusinessprocessandproduceabusinessblueprint.Processreengineeringincludesrevisingpoliciesandproceduresabusinessusestorunoperations.Sincethesoftwaredoesnotallowpeopletodothingstheoldway,thereengineeredprocessbecomestheonlywaythatpeoplecanwork.ImplementingEISrequirestwokeyaspectsofprocessreengineering.First,businessprocessesshouldbeplacedinthecenteroforganizationalstructureratherthanbeingtreatedasindividualfunctions;andsecond,businessactivitiesshouldnotbedividedaccordingtotheconceptofspecializationorthedivisionoflabor.Rather,thecompleteprocessshouldbesystematicallyoptimizedinanenterprise-widesetting.

10.2.2Legacysystems

Legacysystemisaverybroadlabelandappliestoawidevarietyofsystemswithapplicationsthatcanrangefromorderentrytomanufacturingschedulingtoorderdelivery.Before1990s,legacysystemwasapopulartechnologysolutiontohandlebusinesstransactions.Duringthe1990s,EISsystemsbecameareplacementforlegacysystemsformanyFortune500companies.Twoimportantcharacteristicsoflegacysystemsare（i）narrowscopeandvisibility;and（ii）convenientatperformingoperationaltasks.

Theadvantagesoflegacysystemsinclude:

∙Abilitytoaccomplishoperationswithoutadditionalsupportsuchasprocessreengineeringandusertrainingexpense;and

∙Incrementalfeaturesarelessexpensivetoinstallcomparedtoaclient/serversystem.

Thedisadvantagesoflegacysystemsinclude:

∙Limitedfocus;onlyasmallpartofafirmorasupplychain’soperationscanbehandled;

∙Transactionalcapabilityonly;and

∙Lessflexibletobemodifiedduetomainframetechnology.

Asaresultofitsnarrowapplicationscope,legacysystemlostitsappealwhenclient/servertechnologywasintroducedtothemarketint