AFM341 Lecture Notes - Lecture 3: Supply Chain Management Software, Critical Role, Business Process
Facilitate decision making and optimize levels of inventory required so firms don’t have to
hold unnecessary inventories
○
Walmart allows suppliers to view real time sales data and assess the demand for their
products to optimize their levels of inventory
○
Use IT to market sales and provide technical support after the sale is done
○
CRM Software
is a term that describes the software used to manage and nurture a firm's
interactions with its current and potential clients
•
Customer Relationship Management
How AIS increase revenue or decrease expense on an IS
•
A positive association was found between the level of the firm's annual IT investment and its
subsequent accounting earnings
•
•
AIS and Firm Profitability
If stock market participants believe the future cash flows from the investment will increase for the
firm, stock price will increase.
•
AIS investment replace human labour to automate business process (automate) which will digitize
the business process to present for management use (informate up) or to employees (informate
down). It can also change the basis of competition and redefine business and industry process
(transform)
•
Automate
-
replace human labour in automating business processes
○
Informate up
-
provide information about business activities to senior management
○
Informate down
-
provide information about business activities to employees across the firm
○
Transform- fundamentally redefine business processes and relationships ○
Lowest to highest strategic role for technology •
•
Automate and informate investments do have an impact but are substantially smaller than
•
AIS and Stock Prices
AFM 341 Page 5
Document Summary
Facilitate decision making and optimize levels of inventory required so firms don"t have to hold unnecessary inventories. Walmart allows suppliers to view real time sales data and assess the demand for their products to optimize their levels of inventory. Crm software is a term that describes the software used to manage and nurture a firm"s interactions with its current and potential clients. Use it to market sales and provide technical support after the sale is done. How ais increase revenue or decrease expense on an is. A positive association was found between the level of the firm"s annual it investment and its subsequent accounting earnings. If stock market participants believe the future cash flows from the investment will increase for the firm, stock price will increase. Ais investment replace human labour to automate business process (automate) which will digitize the business process to present for management use (informate up) or to employees (informate down).