Introduction Business Administration

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Introduction Business Administration

• Joris van de Klundert

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Day 1

• General Introduction
• Overview
• Case Walmart

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Joris van de Klundert

• Computer Science, Erasmus University Rotterdam
• Ph. D. Operations Research, Faculty of Economics
  Business Administration, Maastrict University
• Associate Professor Operation Research Faculty of
  Science, Maastricht University
• Director Mateum BV

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Literatur

• The portable MBA
• Additional material
• http//www.math.unimaas.nl/

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What do I expect from you?

• Read the literature
• Prepare the assignments
• Visit the practice sessions
• If you attend, be on time,
• If you attend, be quiet.

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What does business administration have to do with
knowledge engineering?

• Speech recognition
• SAP supply chain management
• Yahoo search engines
• Route planners
• Mercedes Benz Customer Care Centre
• Oracle Business Information Warehouse

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What does business administration have to do with
knowledge engineering??

• Lernaut Hauspie
• KPN
• Amazon.com
• Walmart (Supply chain management market
  intelligence)

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Goals for this course

• Get to know the basics of business administration
• Get to understand the entities that play a role
  in this domain
• Understand the role of data, information and
  knowledge in businesses
• Get to understand the principles of supply chain
  management
• Have fun

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Topics

• Related backgrounds
• Futurology, Managing people, Ethics, Economics
• Functions of an organization
• - Marketing, Operations, Accounting, Finance
• Strategy Entrepreneurship
• - Value creation, business strategy alliances,
  international business

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Related backgrounds

• The Future
• Managing People
• Business Ethics
• Economics

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Functions

• Marketing
• Operations
• Accounting
• Finance

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Strategy Entrepreneurship

• Entrepreneurship
• Strategy (competitive advantage)
• Leadership
• Strategic Alliances
• International Business

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Technology Wat is ERP?

• Entity Relationship Programming
• Enterprise Resource Planning
• Economically Required Performance
• Electronic Retrieval and Procurement
• anders namelijk.

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Technology ERP

• You will work with the worlds most use enterprise
  software SAP
• Is very active in the area of supply chain
  management

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Roster

• As announced however
• Thursday 3 no class
• Tuesday 15 no class

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See alsowww.math.unimaas.nl/personal/jorisk
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The test

• Open questions
• Closed book,
• All literature
• SAP R/3 skills training
• All class material

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Example 1 Walmart
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CaseSams VisionSam Waltons Walmart
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Walmart History

• 1972 30 stores in Arkansas, Missouri, Oklahoma.
• 1982 650 stores, 4.7 billion sales.
• 1987 1200 stores, 16 billion sales gt 50 Kmart
• 1991 Walmart gt Kmart
• 1993 Kmart differentiated, Walmart costleader
• 2003 Global player, sales gt 250 billion, 8.2
  billion net profit

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Business Questions

• Question 1 What are the competitive weapons for
  supermarkets/grocery retailers?
• Question 2 Does Walmarts competitive
  performance depend on Walmart alone?

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Walmarts early technology innovations

• Analyzing inventory using computers since the
  early 60s. In 1980s first to adopt bar code
  technology to track stock keeping units
• In 1983 Point of Sale Terminals with bar code
  scanners and satellite communication to have
  information real time centrally available.

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Technology questions (1)

• Question 4 How can this technology help to
  improve competitive performance?
• Question 5 Is any advanced mathematics/ computer
  science required?

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Walmarts CPFR program

• 1995 Walmart started sharing data in real time
  with suppliers, and took up a collaborative
  planning forecasting replenishment program
  with supplier Warner Lambert (pharmaceuticals
  health)).

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Technology questions (2)

• Question 5 How can CPFR improve Walmarts
  competitive weapons?
• Question 6 Any Math/Computer science?

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Walmarts RFID strategy

• Walmart requires its top 100 suppliers to be RFID
  compliant by January 1, 2005.
• Radio Frequency ID..

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RFID
Reader (receiver)
Tag (transponder)

• Tag broadcasts radio signals (e.g. ID) to reader
  using antenna
• Reader receives radio signals using antenna
• Reader may even send information back to which
  tag transponds using antennas
• Use in SCM RFID tag is on goods, readers at
  important points in the supply chain....

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RFID

• Doesnt require Line of Sight (unlike bar codes)
• Passive tags receive energy from signal by
  reader, no battery needed
• Passive tags are cheap lt 50 cents and may store
  up to 2 kb information.
• There are still many standards
• Especially useful in closed loop systems since
  tags can be reused

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Preparation for Friday

• Gather (print) company information on Microsoft,
  Oracle, SAP.