Why do we need to manage the technology?
Operational Excellence- improvement of efficiency to attain higher profitability. For example, WalMart’s Retail Link System links suppliers to stores for replenishment system.
New products, services and business models- business model use to describe how company produces, delivers and sell product to create profit. For example, Apple’s iPod, iTunes and iPhone, Netflix’s internet-based DVD rentals.
Customer and supplier Intimacy
Serving customers well leads to customer returning, which raises revenues and profits. For example, high-end hotels that use computers to track customers preferences
Intimacy with suppliers allow them to provide vital inputs, which lower costs.For example, JCPenney’s information system which links sales records to contract manufacturer.
Improved Decision Making- Digital data collection eliminates some of the fact-checking businesses must do to combat typical human error, again allowing decision makers to act quickly and confidently. Without accurate information leads to overproduction or underproduction of goods and services. For example, Verizon’s web-based digital dashboard to provide managers with real-time data on customer complaints, network performance, line outages and so on.
Competitive Advantage
Delivering better performance and
Charging less for superior product.
example, TPS (Toyota Production System) enjoy a considerable advantage over competitor-information systems are critical to the implementation of TPS
Business Survival-
complex concept and takes two broad forms:
organic- expanding by increasing overall customer base, output per customer and new sales
inorganic- expansion through mergers, acquisitions or takeovers.
Tracking success and opportunities is also simplified by using software designed to store marketing metrics over time. This allows companies to plan, adapt, and grow.
Benefit of effective TM
Work become easier
Job satisfaction increases
Profits increase
Business becomes competitive