ICT and its Role

in the Evolution of Supply Chains

in the Music, Automobile and

Banking Industries

Presentation By,

Tutorial Group 2, Team 03Kang Jie Min

Thomas Lim Kuo TaoClement Low

Automobile

Understanding Organisation–Supplier Relationship

Voice VS Exit

Growing Together Choosing the Best

Automobile

Automobile Supply Chain Before ICT

One day in Ford

>500Accounts Payable Department (MCPLLC, 2008)

2100Suppliers (Burt,

1989)

>1,000Phone calls

50,000Papers

Automobile

Inefficient

Automobile Supply Chain Before ICT

Automobile

E-procurement

Automobile Supply Chain After ICT

Exit VoiceOpen B2B Marketplace(Covisint)

BetterEducated

LessMore

+ =

Close Supplier Portal(Toyotasupplier.com)

Automobile

Automobile Supply Chain After ICTBusiness Intelligence

Before• Lack of Proper

Performance Metrics

• Delayed Business Reports

• Non-uniform analysis capabilities across business users

• Fragmented and inconsistent data

• Unable to make critical decisions in real time

After• Allow executive levels to define Key

Performance Indicators(KPIs)

• Better Visibility of the Supply Chain process (HPDC,2010)

• Incentivise better suppliers with more jobs (voice approach) (HPDC,2010)

• Execute critical decisions in real time with accurate information

Automobile

Automobile Supply Chain After ICTCustomer Centric Services

Warranty

Unpredictable and Inconsistent Happens unexpectedly & irregularly

(Cohen, N. Agrawal, & V. Agrawal, 2006) Solution: Outsource

• Suppliers can provide the additional resources

• Suppliers can communicate directly via social networks with buyer to highlight the problem.

• Certain suppliers have expertise in specialised systems. (E.g. Ford Sync) Ford Sync by Microsoft

Automobile

Summary of ICT’s Role in the Automobile Industry

E-procurement: Increase Supplier’s interaction and efficiency

Business Intelligence: Introduce software vendors as new form of suppliers, Allows for better coordination between the organisation and suppliers

Customer – Centric Services: Expand Supplier’s scope into aftersales services instead of just procurement

BankingSoftware/Hardware vendors

Oracle SAP Polaris

Citibank Bank of America DBS Bank

UBS Bank UBS Bank Commercial Bank of Kuwait

HSBC Deutsche Postbank

Saudi American Bank

These vendors provide

•Design or/and deployment of software solutions•Procurement of hardware equipment•Maintenance and upgrading of systems•On-site recovery and assessment when systems becomes unavailable

Examples

BankingSoftware/Hardware vendors

outsource to

vendor

bank

core functionsrevenue and savings

focus

usage

ict

provides

supports

affected by time

support

BankingFinancial regulatory institutions

These institutions provide

•Guidelines for the banking industry•Important information and announcements•Regulation of activities and imposing restrictions among banks•ICT Services available to banks supporting daily functions

Bank Institution

Singapore Monetary Authority of Singapore

UK Financial Services Authority

Japan Financial Services Agency

Malaysia Securities Commission Malaysia

Hong Kong Securities and Futures Commission

Examples

BankingFinancial regulatory institutions

institutionbank

ictbank

provides

functions SWIFT

CLS

SWIFT (Society for Worldwide Interbank Financial Telecommunication): A standard which banks can make domestic and international payment.CLS (Continuous Linked Settlement): Eliminates time zone differences for foreign exchange transactions.

savings

Banking

The current state of banking industry

integrated and placed great reliance of its business processes with ICT

resulting in

faster, efficient and accurate transactions

greater productivity

however

it is a single point of failure

Music

The Traditional Music Supply Chain

Singing ShippingAdvertising

Recording

Physical Products Physical Shops

Consumers

• High Levels of Vertical Integration

• Linear Business Processes

• Physical Goods/Entities Commonplace

• Little External Intervention

Music

What the Internet did to the Music Industry

Amplified Piracy

Reduced Market

Dominance

Digitized Supply Chain

NET NEGATIVE

EFFECT

Music

The Digitally Evolved Music Industry

New Suppliers

CopyrightEnforcment

Business Intelligence

Music

The Digitally Evolved Music Industry

New Market Players

Streaming Services

Music

The Digitally Evolved Music Industry

Virtual Record Label:

• Packaging

• Distribution

• Artists & Repertoire

• Profit Sharing Scheme

KINA GRANNIS

JUSTIN BIEBER

Independent Artistes

Music

The Current State of The Music Industry

Suppliers Unaffected by Digitization:

• Manufacturers of Music Equipment

• Publicity Providers (TV/Radio Stations)

Outcomes of Digitization:

• New Business Models & Suppliers

• Lesser Intermediaries in the Supply Chain

• Record label firms have lesser Market

Monopoly

Music

Overall Analysis of ICT Impact

• Consumerization

• Digitization

• Business

Intelligence

Questions

Questions?

References1. Burt, D. N. (1989). "Managing Suppliers up to Speed." Harvard Business

Review. Vol. 67, No.5., pp.127-132. Management Consulting Partners LLC. (2008). “Applying Benchmarking to

Higher Education” http://www.mcpartnersllc.com/download/Applying%20Benchmarking.pdf. Retrieved 13 October 2011.

3. Hewlett-Packard Development Company. (2010). Bajaj Auto gains advantage through HP analytics, decision support and business intelligence. Redwood City, California: Hewlett-Packard Development Company.