Unit II

• Role of MIS:
• Strategic Advantage with MIS,
• Competitive Strategy Concept,
• The Value Chain and Strategic IS,

• Using IT for Strategic Advantage:

• Business Process Re-engineering,
• Creating a Virtual Company,

• Improving Business Quality:

• Total Quality Management,
• Becoming an Agile Company,
• Building a Knowledge Creating Company
Role of MIS
 Con..
• The entire MIS which is available to the management in the
complexity of modern factories, is subdivided into various
subsystems.

• Examples of these subsystems are systems for

finance and accounting (cost accounting, finance accounting,
wage and salary),
purchasing (suppliers, receiving),
distribution (tender, sales, service),
logistics (vehicle and tour planning, stock administration, stock
movement) and technology.

Source:
https://sci-hub.tw/https://doi.org/10.1016/0956-7135(91)90085-
Strategic Advantage with MIS
Advantages –
1. Saves time
2. Increases managerial efficiency
3. Technical assistance
4. Decision making is easier
5. Accuracy

Features of MIS -
6. Capable of handling voluminous data.
7. Multi dimensional analysis can be done
8. Quick search and retrieval of system.
Disadvantages –
1. Expensive.
2. Requirement of experience EDP manager and
staffs.

Functions of MIS
3. Improve decision making
4. Efficient operations
5. Better communication and connectivity
MIS Component
 Report
• Audit report.
• Sales report department wise. 
• Consolidated revenue analysis.
• Multiple reports.
• Stores, receiving, HR, Accounts, security, and all the major department can
maintain reports and records through this system.
• Preparation of budget on the basis of initial data retrieved from the system.
• Consumption report.
• Cashiers summary.
• Void /cancellation report.
• Cover analysis.
• Popularity by menu item.
• Settlement report.
• In-house guest directory.
• Spoilage report and etc.
 Competitive Strategy Concept
Strategies that strongly position the company against
competitor and give the company strongest possible
strategic advantage.

Competitive Strategies helps in:

1. Building profitable customer relationships
2. Gaining competitive advantage
3. Analyzing their competitors
 Con..

 No company can follow only one strategy.

For example, Johnson & Johnson uses one

marketing strategy for its common product such as
BAND-AID & Johnson’s baby products; and different
marketing strategy for its High Tech healthcare
products such as Vicryl Plus, antibacterial surgical
sutures or NeuFlex finger joint implants.
 Basic competitive strategies

 Over cost leadership

 Companies try to achieve the lowest production and
distribution cost.
 Low costs let its price lower than its competitors and
win a large market share.
 Example:- Big bazaar
 Differentiation
 Company concentrates on creating a highly
differentiated product line and marketing program
so that it comes across as the class leader in the
industry.
 Example:- IBM & Samsung follow this strategy in
information, technology and services and consumer
electronics and household appliances, respectively.
• Companies can pursue any of the three
strategies called value disciplines for
delivering superior customer value.

 Operational excellence
 Customer intimacy
 Product leadership
 The Value Chain and Strategic IS

• A value chain is the full range of activities – including design,

production, marketing and distribution – businesses conduct to
bring a product or service from conception to delivery.

• For companies that produce goods, the value chain starts

with the raw materials used to make their products, and
consists of everything added before the product is sold to
consumers.

• Value chain management is the process of organizing these

activities in order to properly analyze them. The goal is to
establish communication between the leaders of each stage to
ensure the product is placed in the customers' hands as
seamlessly as possible.
Continue…
 Con..

• Harvard Business School's Michael E. Porter was the first

to introduce the concept of a value chain.

• "Competitive advantage cannot be understood by looking

at a firm as a whole," Porter wrote.

• "It stems from the many discrete activities a firm performs

in designing, producing, marketing, delivering and
supporting its product.

• Each of these activities can contribute to a firm's relative

cost position and create a basis for differentiation."
 Con..
• Primary activities include the following:
• Inbound logistics are the receiving, storing and distributing of
raw materials used in the production process.
• Operations is the stage at which the raw materials are turned
into the final product.
• Outbound logistics are the distribution of the final product to
consumers.
• Marketing and sales involve advertising, promotions, sales-
force organization, distribution channels, pricing and managing
the final product to ensure it is targeted to the appropriate
consumer groups.
• Service refers to the activities needed to maintain the product's
performance after it has been produced, including installation,
training, maintenance, repair, warranty and after-sale services.
Inbound Logistics
 Strategic IS

• Strategic information systems (SIS)

are information systems that are developed in
response to corporate business initiative. They
are intended to give competitive advantage to the
organization.

• They may deliver a product or service that is at a

lower cost, that is differentiated, that focuses on
a particular market segment, or is innovative.
Example..
Business Process Re-engineering
 Con..
• Business Process Reengineering (BPR) aims at
cutting down enterprise costs and process
redundancies, but unlike other process management
techniques, it does so on a much broader scale.
• Business Process Reengineering (BPR) - also
known as process innovation and core process
redesign - attempts to restructure or 
obliterate unproductive management layers, wipe
out redundancies, and remodel processes differently.
 Cloud Computing
• Cloud computing is the delivery
of computing services—servers, storage,
databases, networking, software, analytics,
intelligence and more—over the Internet
(“the cloud”) to offer faster innovation,
flexible resources and economies of scale
 Creating a Virtual Company
+point

• No commute time. 
• Employees are easily more active. 
• Flexibility means using less vacation days.
• Access to worldwide talent.
• Less overhead. 
• Save money on technology. 
• Productivity increases. 
• And many more….
 Concept
• A virtual company is a simulated enterprise that is set up
and run by its participants with support from an educator
(facilitator) and a real company (business partner).

• The virtual company concept is an innovative business

program, focused on activity-based learning.

• The virtual company not only provides the business and

IT skills that are necessary as a member of the work
force, but also supports awareness of the importance of
self-leaning and an understanding of international
business and culture.
Improving Business Quality
Total Quality Management
 Agile company
• An agile company is a business that has the ability to
quickly adapt to market changes.

• There are some of the key identifying characteristics of an

agile company.

• Must be fast-moving and flexible, have rapid response to

unexpected obstacles, lead change, be in touch with
customers, and have continuous competitive advantage,
and flat organizational structure for quick communication.
Cont…
 Cont…
• The food manufacturing industry in India is governed by
increasing constraints in finances, increasing and
unreasonable customer requirements.

• Hence to sustain the growth and to be successful in the

market, many food manufacturers are transitioning to Agile
to efficiently and effectively plan and execute complex
scenarios, reduce food wastage, deliver ingredients and
products which meet the customers’ basic requirements and
to position themselves as the complete food solution
providers to their customers.
 Agile tools can help food industries in the
following ways:
• Bids and Proposals
• Prototyping
• Supplier Management:
• Product Portfolio Planning and Maintenance
• Post sales service and support 

Source:
http://blog.scrumstudy.com/impact-of-agile-in-fo
od-sector/
 Cont…

Challenges If you’re feeling strapped, with fewer resources and

more demands, you’re not alone. Today’s food manufacturers
face a host of obstacles, including:
• Productivity: Increasing visibility into the manufacturing
process, identifying the root cause of line shutdowns
immediately, improving operational performance and
maximizing speed to market.
• Agility: Increasing asset utilization and line flexibility to
produce more products with fewer machines or lines.
• Safety: Optimizing workplace safety and meeting regulations
without impacting productivity.
• Brand equity: Ensuring consistent product quality and on-time
product deliveries.
• Tight margins: Reducing scrap and increasing yield to improve
the bottom line in a low-margin industry
At each point during production, there are four key areas to
evaluate to increase efficiency and asset utilization.

• Machinery: Effectively utilizing machines to produce a

product right the first time for improved first-pass
quality.
• Materials: Using the correct and required amount of
material in a recipe to minimize waste.
• Methods: Using the correct tools and most-efficient
processes to manufacture a product.
• Manpower: Ensuring operators have the right skills and
are focused on the task at hand while eliminating time
spent on unnecessary activities.
 Cont…
• https://literature.rockwellautomation.com/idc
/groups/literature/documents/wp/food-wp00
5_-en-e.pdf