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The Significance of Information Systems in Lenovo

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Lauren Armstrong

on 12 December 2013

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Transcript of The Significance of Information Systems in Lenovo

The Significance of Information Systems in Lenovo Group 99
By: Lauren Armstrong, Gordon Lai, Jing Liao,
Xiao Gu, Lijie Liu, Yi Gao, and Aonuo Zhang A Brief Survey of Lenovo Lenovo's Value Chain An Industry Value Chain What the Value Chain Highlights Lenovo's Value Chain Some Main Events (Continued) Centers for Conducting Business Some Main Events A Brief History Supply Chain Management System? What is the Function of a Supply Chain Management System? The Importance of a Reliable
Supply Chain
Management System Maintains relationships with suppliers
Allows for flow of information between external and internal.
ex. Suppliers, logistics, distribution
Helps the businesses to efficiently source, produce, and deliver goods and services
(Laudon 2004, 83) Multinational Chinese computer hardware and electronics company
Founded in 1984
Head quarters now in North Carolina
Globally there are 27 000 employees
World’s second largest PC vendor in 2011
Some products include: tablets, laptops, mobiles, electronic storage devices, IT management software Main Operating Centers: Beijing, Paris, Singapore, and North Carolina
Main R&D Centers: Beijing, Shanghai, Shenzhen, and North Carolina
Production Base & Assembling Centers: Beijing, Shanghai, Shenzhen, Pondicherry (India), Monterrey (Mexico), Greensboro
Sale Agencies: More than 3,200 around the world 2003, New name announced
2004, First Chinese company to become a global co-operative partners with the International Olympic Committee
2005, Acquires IBM's personal computer business
The issue: US Congress wanted to prevent a Chinese company from purchasing an American businesses 2008, Sells its mobile division to focus on personal computer business sphere
2009, Buys back mobile division for $200 million
2011,Forms a PC joint venture with Japanese IT company, NEC
2011, Buys German electronic vendor Medion
2012, Acquires Brazil based electronics company CCE (Digibras)
2012, Purchases the United States-based software company Stoneware The value chain model highlights specific activities in the business where competitive strategies can best be applied and where information systems are most likely to have a strategic impact. Knowledge Management in Lenovo Knowledge Management System Lenovo's Knowledge System:
A Bit of History "Systems that support the creation, capture, storage, and dissemination of firm expertise and knowledge" (Laudon 2006, 605). 2003, Lenovo set up its knowledge management system
Introduced LKSKM Lanling, Shenzhen based on IBM system framework
2004, Lenovo integrated knowledge management, information management, and flow management into one department Lenovo's System Design Integration of Supply Chain Management into Lenovo What this has done for Lenovo Why it Works so Well First organization in China to fully incorporate the i2 system
Increase efficiency- to decrease operational cost
Increase customers satisfaction (improve end-to-end customer experience)
Combination of Intel + i2 + Lenovo = Framework server + solutions + application
Integrated planning
Control over storage of stock
Increase factory overall production
(i2 Technologies Software Review) Using i2 solutions, Lenovo has been able to:
Leverage its online channel to transform its front-to-back processes
Improve customer experience
Simplify and improve supply & demand planning
Lenovo has moved from customer-through-fulfillment supply chain to a configure-to-order- paradigm Asia pacific chairman of i2 claims that the incorporation SCM can help Lenovo secure a strong foundation in the Chinese market
To apply technology and best practices to eliminate inefficiencies
A supply chain transformation service by JDA What is an Information System? Why Are Information Systems so Important? Information Systems consists
of five basic resources A General Overview
of Information Systems Interrelated components that collect (or retrieve), process, store, and distribute information
Supports decision making and control in an organization
Helps managers and workers analyze problems, visualize complex subjects, and creation of new products
(Laudon 2006, 14) People: IT specialists and end-users
Hardware: physical aspects of Information System
Software: System Software, Application Software and Utility Software
Data: information and databases
Networks: communication media and network support
(O’Brien and Marakas 2010, 31) "A consistent, coordinated set of components acting together as a single unit toward a common function or purpose constitutes a system. System components must work together. An inconsistent system works against itself" (Ratzan 2004). Annotated Bibliography Annotated Bibliography (Continued) Annotated Bibliography
(Continued) Annotated References Ling, Z.J. (2006). “The Lenovo Affair.” Singapore: John Wiley & Sons.
Lou, Y. (2005). “The Interpretation of the Operation and Management
Methods of Lenovo and IBM.” Beijing: China Textile Press.
Monberg K. (August 15, 2007). “I2 Technologies: i2 and Lenovo Discuss
Strategies to Drive the Customer Experience During Free Web Seminar.” 4-Traders. (Date Accessed, November 13, 2012).http://www.4-traders.com/I2-TECHNOLOGIES-9755/news/I2-Technologies-i2-and-Lenovo-Discuss-Strategies-to-Drive-the-Customer-Experience-During-Free-Web-406069/
Movement from a customer-through-fulfillment supply chain to a configure-to-order (CTO)
I2’s flexible new generation solutions designed to synchronize supply and demand across ever- changing global business networks
O'Brien,J & Marakas,G. (2010). “Introduction to Information Systems,15th
Edition. McGraw-Hill.”
New real-world case studies continue to correspond with this industry reality.
The text’s focus is on teaching the future manager the potential effect on business of the most current IT technologies such as the Internet, Intranets, and Extranets for enterprise collaboration, and how IT contributes to competitive advantage, re-engineering business processes, problem solving, and decision-making. Cooper, Martha C., Lambert D. and Pagh J. (1997). “Supply Chain Management: More
than a New Name for Logistics.” The International Journal of Logistics Management:8(1).
Gives historical background on supply chain management systems.
The article suggests a new model, which tries to guide businesses for a better way to perform decisions with the supply chain.
Gu Yu Shi Jin Cai. (2010). “The Study on Applies of Knowledge Management in
Enterprises, International Conference on Intelligent Computation Technology.”
Article summarizes some approaches and matters that we should pay attention to when looking at a knowledge management system in order to provide some suggestions to other enterprises.
Explains how to implement knowledge management effectively, specifically for Chinese enterprises.
Laudon, K. & Laudon, J.(2006). “Management Information Systems: managing the digital
firm.” 10th ed. New Jersey: Pearson Education.
Define the MIS course by integrating coverage of essential new technologies, their applications, and their impact on managerial decisions.
Lin L. (2009). “Research on Knowledge Management of Software Enterprises: with
Lenovo for case study, International Conference on Computer Technology and Development.”
Case study surveys the importance of knowledge management in Lenovo
Demonstrates the successful experience of knowledge management in Lenovo Group tying it to two main reasons: effective flows of knowledge between departments and established an incentive mechanism to give material and spiritual encouragement on basis of merit and scoring Contents of Today's Presentation - A General Overview of Information Systems
- A Brief Survey of Lenovo from 2003 Onwards
- Knowledge Management in Lenovo
- Lenovo's Value Chain
- The Importance of a Reliable Supply Chain Management System
- Integration of Supply Chain Management into Lenovo
- Annotated References "Information systems that automate the flow of information between a firm and its suppliers in order to optimize the planning, sourcing, manufacturing, and delivery of products and services" (Laudon 2006, 610)

“Supply chain management is the integration of business processes from end user through original suppliers that provides products, services and information that add value for customers” (Cooper et al. 1997, 2). The i2 System General Structure of Supply Chain Management Raphael Kaplinsky and Mike Morris. (2000). “A handbook for value chain research.”
Ratzen, L.(2004). “Understanding information systems, USA, American Library
To explain information systems in terms of information, and classifying IS in 4 types.
It claims that information is both subjective and objective.
It discusses processing information.(2005).
“Lenovo Group Information System Integration.” Projects Jugaad. (Date Accessed,
November 13, 2012).http://www.projectsjugaad.com/project/Lenovo-Group-Information-System-Integration.html
The building of Lenovo Group Information System from 1998
Transition from “information islands” to a fully integrated organisation
“i2 Technologies Software Review.” ERP. Asia. (Date Accessed, November
13, 2012). http://www.erp.asia/i2.asp
Featuring a number of software features
Company overview + vertical markets & software products
I2 being the leader in the SCM systems but also has weakness by not having CRM integrated
Value Chain Assessment. (2008). International Competition in Technology. (Laudon 2006) (Value Chain Assessment 2008) (Cooper et al. 1997)
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