Kenneth C. Laudon,Jane P. Laudon Management Information System 12th Edition pdf

efficient customer response system

. An efficient customer response system

directly links consumer behavior to distribution and production and supply

chains. Walmart’s continuous replenishment system provides such an efficient

customer response.

P r o d u c t   D i f f e r e n t i a t i o n

Use information systems to enable new products and services, or greatly

change the customer convenience in using your existing products and services.

For instance, Google continuously introduces new and unique search services

on its Web site, such as Google Maps. By purchasing PayPal, an electronic

payment system, in 2003, eBay made it much easier for customers to pay

sellers and expanded use of its auction marketplace. Apple created the iPod, a

unique portable digital music player, plus a unique online Web music service

where songs can be purchased for $.69 to $1.29 each. Apple has continued to

Supermarkets and

large retail stores

such as Walmart use

sales data captured at

the checkout counter

to determine which

items have sold and

need to be reordered.

Walmart’s continuous

replenishment system

transmits orders to

restock directly to its

suppliers. The system

enables Walmart to

keep costs low while

fine-tuning its

merchandise to meet

customer demands.

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98

Part One

Organizations, Management, and the Networked Enterprise

innovate with its multimedia iPhone, iPad tablet computer, and iPod video

player. The chapter-opening case describes how AT&T’s business strategy is

trying to piggyback off such digital innovations.

Manufacturers and retailers are using information systems to create products

and services that are customized and personalized to fit the precise specifications

of individual customers. For example, Nike sells customized sneakers through its

NIKEiD program on its Web site. Customers are able to select the type of shoe,

colors, material, outsoles, and even a logo of up to 8 characters. Nike transmits

the orders via computers to specially-equipped plants in China and Korea. The

sneakers cost only $10 extra and take about three weeks to reach the customer.

This ability to offer individually tailored products or services using the same

production resources as mass production is called