Failure and Success of Information Technology

Failure and Success
of
Information Technology
Major Areas of IT Applications in
Management
� Customer Relationship Management (CRM)

� Supply Chain Management
(SCM)
� Human Resource Management Systems
(HRMS)
2
Customer Relationship Management
(CRM)
A business process in which client relationships, customer loyalty
and brand value are built through marketing strategies and
activities.
CRM allows business to develop long term relationships with
established and new customers
CRM incorporates commercial and client specific strategies
Strategies:
Employee Training, Marketing planning, Relationship building and
Advertising
3
Supply Chain Management (SCM)
It is a chain that starts with customers and ends with customers.
It may be defined as the process of planning, implementing and
controlling the operations of the supply chain with the purpose of satisfying
the customers requirement as efficiently as possible.
It spans all movement and storage of raw materials, work in progress,
inventory and finished goods from point of origin to point of consumption.
Components :
Purchasing, Operations, Distribution and Integration
4
Human Resource Management
Systems (HRMS)
Modules :
� HRMS is a software application that
1. Workforce Management
merge many human resources 2. Time and Attendance
functions, together with benefits of Management
administration, payroll, recruiting 3. Payroll Management
and training, performance analysis 4. Training Management
and assessment into one parcel. 5. Compensation Management
� HRMS or HRIS is an intersection of 6. Recruitment Management and
many others . . .
HRM and IT
5
Digital Economy
Digital Economy
� It is an umbrella term used to describe markets that focus on

digital technologies.
� Full range of our economic, social and cultural activities
� These typically involves the trade of information goods or
services through electronic commerce.
� It operates on a layered basis, with separate segments for
data transportation and applications
7
Components of Digital Economy
E - Business E- Business E - Commerce

Infrastructure
� Hardware � How business is conducted � Transfer of goods
� Software � Any process that an
� Telecoms organization conducts over
� Networks computer-mediated
networks
� Human Capital
8
➔ The backbone of the digital economy is the hyper-connectivity.
➔ It is based on the internet, mobile technology and IOT
➔ IOT connects physical devices, smart devices, buildings, and other
items embedded with electronics, software, sensors etc to engage
in exchange of data.
➔ ICT goods and services are both included under digital economy
➔ India is the second largest exporter of ICT services (software)
➔ China is the global leader in case of ICT goods with 32% share.
9
“
DARK SIDE
More resources and a greater strategic
emphasis on cybersecurity will be required to
address the increasing number of attacks, the
growing expertise of hackers and blooming
black market for stolen data and malware
10
Digital
Organization
11
� A digital enterprise is an organization that uses technology as
a competitive advantage in its internal and external
operations.
� Digital Enterprise is a bundled set of technologies that are
designed to help a business engage with customers across all
digital channels
(web, social, media and print)
� Eg : Banking System
12
Failure
of
Nike
and
AT&T
13
Nike
� In the 1970s, retailers would have to place orders with Nike 9
months in advance before the delivery date.
� The company was able to manage to deliver their products on
time.
� During 1980s and 1990s, Nike’s business expanded rapidly,
leading to the complexity of its supply chain.
� In 1999, its profits decreased by 50% because of challenges in
managing the supply chain.
14
Nike
� Nike decided to adopt a SCM from i2,a major
competitor in the field of ERP systems.
� The system was supposed to forecast sales demand
and plan supplies of raw materials and finished
products accordingly.
� Nike had installed the system, with the cost of $400
million. However, the system failed.
15
Nike
� Demand forecasting was one of the biggest issues.
� Demand for a number of products and locations was either
overestimated or underestimated.
� Some raw materials were over purchased, while inventory
levels of other materials were insufficient.
� The company reported a loss of $100 million in sales in the
3rd quarter of 2001 due to this problem.
16
AT & T
A major CRM system at AT&T wireless had crashed
during an upgrade in November 2003.
Customer service representatives could not set up or
access new accounts.
The system breakdown continued through February
2004.
17
AT & T
It deprived the telco of thousands of potential new customers and cost
the company an estimated $100 million in lost revenue.
The failure damaged its reputation.
Its share price went down to $15 per share.
18
What went wrong ?
1. Its unwise to freight major system
upgrades with external complications
2. It should be understood that complex
projects require flexible deadlines
3. It always pays to have a plan B
19
Thanks!
Any questions?
20

Failure and Success of Information Technology

Uploaded by

Copyright:

Available Formats

Failure and Success of Information Technology

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Failure and Success of Information Technology

Uploaded by

Copyright:

Available Formats

Failure and Success

� Customer Relationship Management (CRM)

� It is an umbrella term used to describe markets that focus on

E - Business E- Business E - Commerce

You might also like