MGT675_ Research Proposal Running Head: SUPPLY CHAIN INDUSTRY 1 SUPPLY CHAIN INDUSTRY 2 IMPACT OF INFORMATION TECHNOLOGY ON SUPPLY CHAIN INDUSTRY MOHAMMED AL-SHAHRANI MGT 675 - PROJECT Abstract The...

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“Impact of Information Technology on Supply Chain Industry”
Research Project
MGT675
Submitted to the
Department of Business Administration and Finance
Saudi Electronic University, Dammam, Kingdom of Saudi Arabia
By
Mohammed Ghurom Al-Shahrani
160003920
Under the supervision of
Dr. Showkat Wani
Submitted in fulfillment of the partial requirement for the award of degree of
Master of Business Administration
2019 G \ 1441 H
Certificate of Originality
This is to declare that this thesis titled, “IMPACT OF INFORMATION TECHNOLOGY ON SUPPLY CHAIN INDUSTRY” is original and authentic piece of work done and written by Mohammed Ghurom Al-Shahrani, with the Student Identification Number as 160003920 and it
__________________________
Dr. Showkat
Declaration
I hereby declare that the thesis titled as, “IMPACT OF INFORMATION TECHNOLOGY ON SUPPLY CHAIN INDUSTRY”, submitted on December 2019 is an independent work
Name of the Student: Mohammed Ghurom Al-Shahrani
SID: 160003920
Signature: ____________________.
Dedication
To all those who are judged for being different and are excluded from the society only on the grounds of narroq demarcations….
Acknowledgment
I would like to express my special thanks of gratitude to my professor Dr. Showkat Khalil who gave me the excellent opportunity and support to do this wonderful research on “IMPACT OF INFORMATION TECHNOLOGY ON SUPPLY CHAIN INDUSTRY”. This also helped me in doing a lot of research and I came to know about so many new things I am really thankful to them. Secondly, I would also like to thank my family who helped a lot during my MBA journey and their support in finalizing this research within the limited period.
Thank you all,
Mohammed Ghurom Al-Shahrani
Abstract
The use of information technology in the supply chain industry enables to provide developed quality accountability as well as visibility. Through this, the management of the business companies can successfully operate the information flow throughout the supply chain and noticeably it has a significant impact on the production and distribution of the items. In this paper, the impact of information technology on the supply chain industry is going to be discussed. To proceed with this aim, objectives, rationale, and questions have been set and based on those the secondary data has been collected to evaluate the understanding. Necessary help from sufficient literary sources has also been taken to present a satisfactory conclusion.
Table of Contents
Certificate of Originality    2
Declaration    3
Dedication    4
Acknowledgment    5
Abstract    6
Chapter 1: Introduction    11
1.0 Introduction    11
1.1 Background of the Study    11
1.2 Background of the Industry    12
1.3 Significance of the Research    13
1.4 Problem Statement    14
1.5 Rationale of the Research    15
1.5.1 What is the research issue?    15
1.5.2 Why is it an issue?    15
1.5.3 Why is it an issue now?    15
1.5.4 What can this research shed light on?    16
1.6 Research Aim    16
1.7 Research Objectives    16
1.8 Research Questions    17
1.9 Structure of the Dissertation    18
1.10 Summary    18
Chapter 2: Literature Review    19
2.0 Introduction    19
2.1 Concept of Supply Chain Management    19
2.2 Concept of Information Technology    20
2.3 Developments in the Supply Chain Management    22
2.4 Developments in Information Technology in the context of Business    23
2.5 Theories of Supply Chain Management    25
2.5.1 Social Network Theory    25
2.5.3 Agent-Based Theory    27
2.6 Uses of Information Technology in Business    27
2.7 Benefits of Information Technology on Supply Chain Management in Business    29
2.8 Summary    30
Chapter 3: Research Methodology    31
3.0 Introduction    31
3.1 Research Onion    31
3.2 Research Philosophy    32
3.3 Research Approach    34
3.4 Research Design    35
3.5 Data Collection Method    36
3.6 Ethical Considerations    37
3.7 Inclusion Criteria    37
3.8 Exclusion Criteria    38
3.9 Time Frame    38
3.10 Summary    38
Chapter 4: Data Analysis    39
4.0 Introduction    39
4.1 Sustainable Supply Chain Management provides the ability to the Company to boost their business    39
4.2 Developed Information Technology allows the business companies to build a strong marketing force    41
4.3 Developed Information Technology allows the companies to develop a strong social media presence    43
4.4 Supply Chain Industry is dependent on the use of Internet of Things to improve the communication levels    45
4.5 Use of Information technology allows the company to improve its Logistics and operations    47
4.6 Implementation of Blockchain technology may allow companies to develop their communication    50
4.7 Summary    52
Chapter 5: Conclusion and Recommendations    53
5.1 Conclusion    53
5.2 Recommendations    54
5.3 Linking Research with Objectives    55
5.4 Limitations of the Research    55
5.5 Future Scope of the Research    56
References    57
Appendix    61
List of Figures and Table
Figure 1.1: Dissertation Structure    18
Figure 2.1: Supply Chain Management    20
Figure 2.2: Components of Information Technology    21
Figure 2.3: Social Network Theory    26
Figure 3.1: Research Onion    32
Table 3.1: Gantt chart    62
Chapter 1: Introduction
1.0 Introduction
This research deals with observing and analyzing the different impacts of information technology in the supply chain industry. In this age of globalization, the emergence of information technology is a very important and integrated way of development. However, there are some proper ways of usages through which they can contribute to the development of a particular industry. There are some positive and negative impacts of information technology and those impacts will be analyzed through the process of discussion in this research.
1.1 Background of the Study
In this research, the impact of information technology on the supply chain industry has been broadly discussed. The researchers have found the various ways on how the IT or information technology is influencing the management of the supply chain, the whole research is done based on solving the given research questions. The research objectives and the aims are set and then the research questions are asked and the conclusions and the results have been aimed to be in harmony with the literature review of the research.
The topic that has been discussed in this research paper is the effect of information technology on supply chain management. The supply chain is the most important aspect of any business or industry. In this globalized and competitive economy, the integration of information technology into the supply chain industry is becoming well known to the world. The information technology is generally said to have great benefits in providing accurate information, which is easily reliable. This benefit of its implementation has also improved the work process of supply chain management. However, the implementation of IT in the supply chain has no impact on the performance of the supply chain but the integration of the supply.
This research has aimed to bring out the effectiveness of how the implementation of information technology in the supply chain has affected the integration. The research would provide with the scopes of where the implementation of the information technology can be done within the supply chain management. The research shows the advantages and the disadvantages of the implementation of information technology within the aspects of supply chain management. Finally, the research is going to provide the recommendations of the suggestion that the company could follow on the process of the implementation of information technology in supply chain management.
1.2 Background of the Industry
In this research, the researchers are dealing with the information technology industry. The information technology industry is relatively young in its origins as compared to other industries. The advent of information technology has been done back in 1904. The information technology can be described as a trade association that deals with computing via hardware and software services. The basic objective of this industry is to create storage and maintain a record of all the relevant and authentic information for further use.
The information and the technology industry have helped highly in the modernization of the economy. Today is the day of globalization where the world economy is taking part in commercialization. Without the advent of the proper information and technological services, it would have been almost impossible to keep huge records of all the information that is valuable to us (Marshall, 2015). The main objective of the IT industry is to store data that are relevant to us. This industry is considered as one of the important economic sectors in today's world.
Without this industry, many other industries would have been running in loss. First of all the products and the services that are being sold to the customers are advertised through the medium such as television, mobile phones which are all examples of the information and technology industry. The information industry does not only sell or advertise other products but also has its media products. The movies, e-commerce, television programs, published books are the direct products of the IT industry.
In this world of globalization, there is no other way to promote one's business without the use of the IT industry. It has become the base of the economy. Not only IT goods and services the implementation of the information and technology also has a huge role to play in the research methods as well (Stock, & Seliger, 2016). The various researches that are done by the implementation of information technology are on the food, pharmaceuticals, high tech services (Lundh, Lexchin, Mintzes, Schroll & Bero, 2017). This research includes the implementation of the information technology that makes sure in the decision making the power of the industry.
1.3 Significance of the Research
The research aims to study the impacts of Information Technology on the supply chain industry. This is the age of globalization where the world is running on the wheels of the technology. Information technology is a newborn industry that has come and changed the dynamics of the economy. The whole economy has been largely started to depend on the industry of information technology. Without the implementation of this technology, it would have been impossible for any business to operate nicely in the economy and attract customers.
Not only the information technology industries reach out to the millions but also help in retrieving the authentic ad the relevant data that is useful for every firm. Now, the supply chain management is another huge aspect of the development of any business firm. The supply chain is the basic foundation of any working firm (Copacino, 2019). Without the proper supply chain, no firms can work properly because if they get the goods and services by themselves how will they provide it to the customers. Therefore, this research is an amalgamation of the two most important aspects of marketing in today's world. Information technology and supply chain management. The research aims to show the impacts on supply chain management by information technology.
It shows what are the results of these aspects integrate with each. The aspects, IT and supply chain, are the pillars of any business firm. No company can function without both of these. Through this research, we can get a clear idea of what happens when there is a thorough integration of information technology within the supply chain management (Giannakis & Papadopoulos, 2016). This research will not only show the impacts but also give a detailed idea of the advantages and disadvantages that the company is going to face through the implementation of information technology in supply chain management.
1.4 Problem Statement
The research deals with the impacts of information technology on supply chain management. Both aspects are very important and significant to any business firm. In this 21st century, no firm can operate on a smooth basis without the implementation of supply chain and information technology. However, there has been a noticeable problem in the research. The researchers have found out that some of the companies or the firms are not using information technology following the supply chain.
There are no relevant storage or records of the data that are concerned with the supply. The companies are facing immense trouble since there is no proper data storage system due to the lack of information technology. The supply is being hugely disturbed since it cannot be rightly tracked without the implementation of the technology. The supply can also be guaranteed its authenticity due to this lack of IT implementation. The research has brought forward the problem of the companies that are not using the integration of both aspects. Not only, are these firms losing their track, but they are also getting high on the cost of production as well.
1.5 Rationale of the Research
1.5.1 What is the research issue?
The research issue in this research paper is to identify the different impacts of information technology in the context of the supply chain industry. Both the information technology and the supply chain industry are very well known entities in the business platform and the merging of these two can bring several revolutions in the aspect of business as well. The different types of the impacts of information technology in the supply chain industry should be analyzed because otherwise the proper strategies of implementing them within the industry cannot be developed (Marinagi, Trivellas & Reklitis, 2015). That is the reason is why analyzing the impacts of the research issue is a very important aspect that has been explored in this research paper.
1.5.2 Why is it an issue?
It has been already discussed that both the information technology and the supply chain industries are very important entities within an organization. The inclusion of information technology within the supply chain industry is very beneficial for the development of the industry itself. Before the implementation of information technology within the supply chain industry it is very important to know the advantages and the disadvantages associated with information technology in the context of supply chain management (Kim & Chai, 2017). If this issue is discussed then the implementation of the information technology can be done in a very proper and systematic way. Thus, the industries will be benefited from the usage of this technology as well.
1.5.3 Why is it an issue now?
In the current situation, there is a fierce market competition due to globalization. Every industry has to make strategies so that they can stand out from the accumulation of millions of other industries. That is the reason why the supply chain management also have to implement strategies that can help them to use the information technology properly in the different activities within the organization (Korpela, Hallikas & Dahlberg, 2017). This will help the organization to deal with all the different problems in a very less period and it will face fewer difficulties as well. The information technology can make the activities and the processes of carrying out the activities easier, which is very beneficial and advantageous for the organization itself.
1.5.4 What can this research shed light on?
This research sheds light on identifying the different impacts of information technology in the context of the supply chain industry. Besides that, the different ways through which the information technologies can be implemented properly within the supply chain industry will be examined and analyzed as well. Thus, the supply chain industry will find new ways through which it can experience a lot of growth and development in the global business platform.
1.6 Research Aim
This research aims at identifying the different impacts of information technology on the supply chain industry. How they can be beneficial for the industry is also analyzed in the course of the discussion. The negative impacts or the disadvantages of them are also observed so that the backup strategies can be developed for the benefit of the supply chain industry.
1.7 Research Objectives
Based on the research aim stated above, the following research objectives have been created that has helped to attain this aforementioned aim—
· To identify the concepts of information technology in the context of the supply chain industry
· To examine the scopes where the information technology can be used in the supply chain industry
· To analyze the advantages and disadvantages of information technology in the context of the supply chain industry
· To recommend the ways through which the usage of information technology can be developed in the context of the supply chain industry
1.8 Research Questions
The present study aims to attain answers to the following research questions—
· What are the different concepts of information technology in the context of the supply chain industry?
· What are the scopes where information technology can be used in the supply chain industry?
· What are the advantages and disadvantages of information technology in the context of the supply chain industry?
· What are the ways through which the usage of information technology can be developed in the context of the supply chain industry?
1.9 Structure of the Dissertation
CHAPTER 1: INTRODUCTION
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS
CHAPTER 2: LITERATURE REVIEW
CHAPTER 3: RESEARCH METHODOLOGY
CHAPTER 4: DATA ANALYSIS
Figure 1.1: Dissertation Structure
(Source: Researcher)
1.10 Summary
In the above section of this research paper, the relevance of information technology in the supply chain industry has been discussed, with identified issues. Through this part of the discussion, the general overview of the importance of information technology in the context of the supply chain industry has been provided. The different concepts related to the information technology and its relation with the supply chain management will be discussed later in the course of the discussion.
Chapter 2: Literature Review
2.0 Introduction
The supply chain can be considered as a distribution network between the company and the suppliers. This supply chain helps in distributing any specific product from the producer to the buyers. This network includes many steps and activities. The main aim of this chain is to develop a fair model to distribute any product from the producer to its final buyers at an optimal price. This supply chain also helps in maintaining competitiveness in the market of business. The main function of this supply chain model is to develop a quality product and superior customer service (Hugos, 2018). The production cycle gets a boost from this model.
2.1 Concept of Supply Chain Management
Supply chain management is a process of management that includes the various processes of the flow of goods and services in the market. As it is an activity of a larger chain model, it needs proper planning and strategy for execution. A proper controlling model is needed here to control the flow of goods and services in the market. This supply chain management normally follows the concept of the maximization of the value of customers as well as the profit percentage. Supply chain management also controls the competitiveness of the market.
Supply chain management includes the logistic aspect of all goods. The production of goods, the development of goods is also monitored by this model of supply chain management. As the name suggests, the supply chain management implies the effectiveness of any practical application in the marketplace (Meindl, 2016). From the manufacturing of the product to the delivery of that product, the whole process comes into the consideration of the domain of supply chain management.
Figure 2.1: Supply Chain Management
A proper plan is made by following a proper strategy so that the demand of customers can be satisfied. By a proper evaluation, it is to be ensured that the strategy can meet the goal that has to be achieved. The supply management chain ensures that the production of the quality of the goods is maintained properly. The safe delivery of the product to the final consumers also comes under the procedure of the Supply Chain Management System (Christopher, 2016).
The use of technology in the supply management chain acts as a boon on it. The process of monitoring the information has become quite easier and the domain of the supply chain management has been increased. By managing the supplier's information, marketing portfolio and the data related to the service that is provided, the supplier management chain satisfies all the essential requirements.
2.2 Concept of Information Technology
Information technology is a boon of modern science. It has upgraded the domain of computer science to its next generation. Generally, information technology is a combination of three types of technology. Those technologies are digital computing technology, data storage technology and transmission of the data signal. A combination of advanced semiconductor technology and networking model within the highly advanced software made it more users friendly. Information technology deals with the collection, storage, assimilation and processing of data that is to be used by the company. Information technology deals with hardware and software-based telecommunication technology (Kovalenko et al., 2017). The use of information technology has opened the door of science and engineering towards a new world.
The use of information technology has become a common job in the field of business management. By using an updated version of hardware and software application as well as an advanced coding system and coding language the field of information technology in being wider day by day. For business purpose database system is using now a day. The SQL server is an important part of the database management system. In a transactional system, the use of information technology can be seen. Various web servers are being used now a day. In the field of relationship management, the use of information technology has become an important part of it.
Figure 2.2: Components of Information Technology
In the field of supply chain management, the use of information technology has become an obvious part. The information technology is taking the maximum role here. All the management systems, as well as data collecting and data mining, are being done by using it. The distribution model of the Supply Chain Management System is being maintained and monitored by using information technology (Nguyen, Newby & Macaulay, 2015). The business world has been very much dependent on information technology. The use of data analysis techniques and big data analysis bring transparency to the field of business.
2.3 Developments in the Supply Chain Management
The field of supply chain management is developing day by day. The entire business corporation, as well as companies, are using this system of management now a day. To gain market share and to grow effectively in the market, all companies are using this model nowadays. The capacity of production has increased by using proper planning and strategy. By using a proper analysis, all the sites of any company where the improvement is needed are marked. The process of developing in the company has been followed by using technically developed equipment (Oelze, Hoejmose, Habisch & Millington, 2016).
The purpose of making the company as the best-selling organization is being fulfilled by following the proper strategy and developmental plans. Considering the demand of consumers all the products are being developed. Using proper planning model, the business landscape is touching the global view of recognition. With a rapid rate of globalization, the business domain is also increasing. Concerning the increasing order of globalization, supply chain management is becoming more prominent day by day.
All the attributes of the supply chain management like production, management, distribution and delivery are also changing in case of the globalization of the business. The demand graph also changes according to the variable demand of the global level customers (Rajeev, Pati, Padhi & Govindan, 2017). The focus on the proper order delivery is handled carefully by the managers to increase the order number. The proper practices for using sustainable goods are focused on the Supply Chain Management System. An improvement in the efficiency of goods is always needed. The supply chain management is always concerned about the proper delivery and consumer-friendly service system.
By using this supply management system, a significant rate of growth is always expected. By using various technologies like the use of artificial intelligence in case of decision-making, this supply chain is improving its efficiency. By using a smart and inventory management system the concern system is trying to reduce the overall expenditure. The total budget is tending to be maintained by the supply chain managers. The use of digital twin technology can be seen now a day in this management system.
In most cases, it can be seen that using this Supply Chain Management System the risk of many companies has been reduced at a significant rate. It sometimes acts as a risk management factor. Currently, it can be seen that many cases of Supply Chain Management Systems are using the autonomous mobile robot to reduce the work force and the cost of overall expenditure (Cooper, 2017). This use of intelligence can leave a good impression on the consumer level and can win the trust of customers.
2.4 Developments in Information Technology in the context of Business
Today the development of information technology can be noticed at a very high level. Today the world has become very much fond of technology. In every aspect like a business, research and developmental field, communities as well as individual's use, there is a huge impact on technology. The business impact of technology is more. In the case of the management system, also the use of technology is huge. The term information technology deals with both the hardware and software parts. By using the software system, it manages all the information in a synchronized manner.
The information technology bears all the technology such as computing technology, networking, database management system, internet, various programming languages as well as artificial intelligence also (vom Brocke, Zelt & Schmiedel, 2016). The main function of information technology is to dealing with virtual data as well as information. Collection of data, managing data, sorting of data and also providing protection of those data also lies in the function of information technology. In the field of business, in the process of organizing the business, the use of information technology can be seen. Apart from that, to manage the business information technology is also being used now a day.
In the world of business, it can be seen that the process of communication is one of the most important facts. The use of technology has made the communication process easier among the producers, suppliers, and buyers...