BA 180.

1: Information
Technology in Business I

BA 180.1: Information
Technology in Business I

Operations Management
and Technology

Erik Paolo Capistrano

1 Operations Management and Technology
Operations Considerations BA 180.1: Information
Technology in Business I

Erik Paolo Capistrano

2 Operations Management and Technology
Supply Chain Management BA 180.1: Information
Technology in Business I

Erik Paolo Capistrano

3 Operations Management and Technology
Influencing Operations BA 180.1: Information
Technology in Business I

• How does information technology influence:

– Product development?
– Process analysis?
– Supply chain management?
• Supply?
• Demand?
• Logistics?
– Quality management?
– Project management?

Erik Paolo Capistrano

4 Operations Management and Technology
Influencing Operations BA 180.1: Information
Technology in Business I

• Supply chain managers monitor supply-

chain performance by measuring costs,
delivery speed and quality.
• These measures are linked to a firm’s key
financial measures.

Erik Paolo Capistrano

5 Operations Management and Technology
Influencing Operations BA 180.1: Information
Technology in Business I

• Aggregate inventory value

• Weeks of supply
• Inventory turns
• Production & material costs
• Percentage defects
• Percentage on-time delivery
• New product development cycle
• Supplier lead times

Erik Paolo Capistrano

6 Operations Management and Technology
SCM and IS/IT BA 180.1: Information
Technology in Business I

Wal-Mart’s Supply Chain Management

Information Systems

Erik Paolo Capistrano

7 Operations Management and Technology
SCM and the Internet BA 180.1: Information
Technology in Business I

Erik Paolo Capistrano

8 Operations Management and Technology
Technology Decisions BA 180.1: Information
Technology in Business I

• Scalability
– Measure of contribution margin required to deliver
a good or service as the business grows and
volumes increase
– High scalability
• Capability to serve additional customers at zero or
extremely low incremental costs
– Low scalability
• Serving additional customers requires high incremental
variabe costs

Erik Paolo Capistrano

9 Operations Management and Technology
Trends in IT and Operations BA 180.1: Information
Technology in Business I

• Internet of Things investment will continue to

increase
– Rapid increase in IT solutions deployed to advance
business intelligence.
– Cisco predicts there will be 50 billion connected
devices by 2020.
– IT will revolutionize businesses by allowing
companies to improve value propositions, engage
with customers on levels previously unavailable
and build entirely new revenue streams.

Erik Paolo Capistrano

10 Operations Management and Technology
Trends in IT and Operations BA 180.1: Information
Technology in Business I

• Big data requires big investment in infrastructure

and skills
– More sophisticated ‘recommendation engines’
anticipating users’ interests more accurately for services
such as Netflix, Amazon and Google.
– Credit reference agencies using big data to inform on
lending decisions
– The increased demand for greater sophistication in
analysis and data consumption
• A recent SAP survey of 300 UK businesses showed that while
92% of organizations’ data grow over the last 12 months, most
were experiencing barriers when trying to use the information.
• 42% of organizations saw lack of time and resource as the
biggest challenge and 75% believed new data science skills are
needed within their organisation.

Erik Paolo Capistrano

11 Operations Management and Technology
Trends in IT and Operations BA 180.1: Information
Technology in Business I

• More business operations will gravitate to the

cloud
– 69% of firms participating had at least something
in the cloud
• Cloud computing is becoming the hub for operational
infrastructure.
• Big data is an important driver for organisations to
move to the cloud.
– 61% of organizations will invest in emerging
technologies to improve their existing cloud
solutions.

Erik Paolo Capistrano

12 Operations Management and Technology
Trends in IT and Operations BA 180.1: Information
Technology in Business I

• Cyber security industry must invest in skilled

talent
– The cyber security skills gap is an underlying issues
having a knock-on effect on industry and the economy.
– Cyber security skills are a global priority but, with a
lack of consistency in accepted career definitions,
organizations are experiencing difficulties in attracting
new talent and progressing existing professionals.
– The information security industry has an opportunity
to re-define itself and build on the negative global
coverage it observed last year to attract new talent.

Erik Paolo Capistrano

13 Operations Management and Technology