li and fung case study
1. INTRODUCTION
This assignment is based on Li & Fung, wherein the issues and the pre-requisites relating to the introduction of an integrated Management of Information Systems are to be critically analysed in respect to its current situation and suitable recommendations are given at the end.
Likewise, in the first section of the assignment, those internet issues prevailing in the company which justifies the need to consider the introduction of Information Systems are stated. In the second section, its holistic global supply chain is analysed in order to understand how efficiently it has been making use of the technology. Moreover the pros and cons of using “Bubble-in” and turnkey solutions to build the e-commerce portal are stated from the case study. Finally, the security issues that Li & Fung need to be considered while implementing their e-commerce B2b portal are also dealt.
2. INTERNET ISSUES FOR LI & FUNG
2.1 Michael porter value chain model:
Schust (2008) stated that In order to highlight the specific activities in the business the porter value chain model is used. He further stated that the value chain model identifies the specific and critical points where a firm can use the information technology to enhance its operations. Porter’s value chain model for Li & Fung is considered to identify those activities which are critical, important, clearly lagging behind and if improved with the use of internet can add much more value to their existing value –chain and thus improving the efficiency and the performance of the company.
Figure 1: Michael Porter’s Value Chain Model for Li & Fung Source: Oladejo, 2008
From the above figure of the value chain of the Li & Fung, it is understood that he primary activities of the company include development of the product from sourcing the raw materials and factory, planning of the production, quality assurance through controlling the manufacturing process, export
This assignment is based on Li & Fung, wherein the issues and the pre-requisites relating to the introduction of an integrated Management of Information Systems are to be critically analysed in respect to its current situation and suitable recommendations are given at the end.
Likewise, in the first section of the assignment, those internet issues prevailing in the company which justifies the need to consider the introduction of Information Systems are stated. In the second section, its holistic global supply chain is analysed in order to understand how efficiently it has been making use of the technology. Moreover the pros and cons of using “Bubble-in” and turnkey solutions to build the e-commerce portal are stated from the case study. Finally, the security issues that Li & Fung need to be considered while implementing their e-commerce B2b portal are also dealt.
2. INTERNET ISSUES FOR LI & FUNG
2.1 Michael porter value chain model:
Schust (2008) stated that In order to highlight the specific activities in the business the porter value chain model is used. He further stated that the value chain model identifies the specific and critical points where a firm can use the information technology to enhance its operations. Porter’s value chain model for Li & Fung is considered to identify those activities which are critical, important, clearly lagging behind and if improved with the use of internet can add much more value to their existing value –chain and thus improving the efficiency and the performance of the company.
Figure 1: Michael Porter’s Value Chain Model for Li & Fung Source: Oladejo, 2008
From the above figure of the value chain of the Li & Fung, it is understood that he primary activities of the company include development of the product from sourcing the raw materials and factory, planning of the production, quality assurance through controlling the manufacturing process, export