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9 S T R AT E G I C METHODS: H O W TO PURSUE S T R AT E G I E S Recap Year 1: What is meant by supply chain management? Draw a spider diagram to show how technology can be used in operations management. Which car manufacturer is credited for the early use of automation in car manufacturing? 9.4 A SSESSING GREATER USE OF DIGITAL TECHNOLOGY 9.4 A SSESSING GREATER USE OF DIGITAL TECHNOLOGY In this topic you will learn about The pressures to adopt digital technology Digital technology should include e-commerce, big data, data mining and enterprise resource planning (ERP) The value of digital technology The impact of digital technology on the functional areas of the business D IGITAL TECHNOLOGY Digital technology is the use of computers to find, store, analyse, manipulate and communicate digital information Digital technology includes: E-commerce Big data Data mining Enterprise resource planning (ERP) D IGITAL E-commerce involves digitally enabled commercial transactions between and among organisations and individuals Commercial transactions can be: How has Go-Jek taken advantage of digital technology? TECHNOLOGY B2B – transactions between businesses B2C – transactions between a business and a consumer C2C – transactions between consumers E-commerce is growing: Improved internet speed Millennial generation Convenience Competitive advantage Safer payment Increased confidence Write a list of advantages and disadvantages of e-commerce to: a) Businesses b) Consumers P ORTER ’ S F IVE F ORCES NEW COMPETITORS SELLING POWER OF SUPPLIERS COMPETITIVE RIVALRY THREAT OF SUBSTITUTES In pairs: How is e-commerce changing the fashion industry? BUYING POWER OF CUSTOMERS B IG How much data is stored about you? Do you have loyalty cards, GPS devices, social media, mobile phone, phone apps? DATA AND DATA MINING Big data refers to the volume of data that can now be accessed as a result of technological advancements Collected from customer transactions Increasingly sophisticated commercial datasets Government statistics Detailed insight into demographic trends, consumer lifestyles and behaviours Market intelligence Easily stored What is big data? 4 Ways Big Data Will Change Every Business. Forbes B IG Data mining refers to the ability to manipulate and analyse the data to inform decision making What is data mining? DATA AND DATA MINING Extrapolate trends in the market Target advertising Sales forecasting Product development Record response rates to advertisements Inform resource planning e.g. inventory, workforce Take advantage of bloggers and influencers e.g. individuals with a high social media profile Data mining or creepy snooping? How do businesses use data mining to target adverts online? E NTERPRISE RESOURCE PLANNING (ERP) Management software that enables greater integration between all functional areas Greater integration leads to: • Greater efficiency • Less waste • Increased productivity • Customer satisfaction However: • Takes time and capital to implement • It is likely the business will experience teething problems during which time reputation can be damaged • Staff will need to be trained VALUE OF DIGITAL TECHNOLOGY Ease of entering new markets More informed new product development Greater integration of functional areas Availability of information to stakeholders New processes e.g. e-commerce, automation What is the value of data technology at Burberry? T HE IMPACT OF DIGITAL TECHNOLOGY ON THE FUNCTIONAL AREAS OF A BUSINESS Marketing Finance Operations Human resources • Growth of ecommerce • Price comparison websites • Social media and viral marketing • Product life cycle • Degree of competition • Investment in technology • Online transactions • Budgetary control • Frequency of reporting • Resource management e.g. inventory • Automation • Quality • Research and development • Workforce practises • Training • Homeworking • Employee engagement 9.4 A SSESSING GREATER USE OF DIGITAL TECHNOLOGY In this topic you have learnt about The pressures to adopt digital technology Digital technology should include e-commerce, big data, data mining and enterprise resource planning (ERP) The value of digital technology The impact of digital technology on the functional areas of the business
