Chapter 9 ITC
Typical features or modules in a BMS include the following:
-Definition of Organizational Mission -Identification of Strengths, Weaknesses, Opportunities, and Threats (SWOT analysis) -Establishing Goals and Measurable Objectives -Defining Strategies and Key Performance Indicators (KPIs) -Articulation of Tactical or Action Plans___ Assigning Responsibilities and Time Tables -Monitoring and Reporting Progress and Performance
Delivery Systems
-EDI -Demand Forecasting -Inventory Management -Order Entry and Fulfillment -Invoicing -Sourcing -Time-to-Market Reduction -RFID
Channel Systems
-Dealer Systems -Delivery Systems -Customer Support Systems -Sales Systems -Target Market Systems -Market Intelligence Systems
Customer Support Systems
-customer communications -customer satisfaction -service and support -training/user education -usage enhancement -customer portals -social networking
Market Intelligence Systems
-customer profiling and segmentation -market tracking -competitor surveillance -new product development -decision support, BI predictive analysis -Trend Monitoring -Cross-selling -ADS for pricing
Just-in-Time (JIT) inventory management
attempts to minimize holding costs by not taking possession. of inventory until it is needed in the production process; used in auto industry extensively -the trade-off is higher ordering costs because of more frequent orders. -this method requires accurate and timely monitoring of materials' usage in production -everything is interdependent -inventory and material quality is critical because of poor quality delays
Accounting manages
assets and meets compliance mandates
transaction processing systems TPS
software and/or hardware technologies that collect, monitor, store, process, and distribute transactional data according to certain criteria referred to as the ACID test, short for atomicity, consistency, isolation, durability
9.5.5 Describe IT support for HR planning and control
Benefits Administration (some companies allow employees to use computers to select the plan they want) Performance Evaluations (once these are digitalized, the can be used to support decisions such as rewards/transfers/layoffs) Employee Relationship Management (human capital management to streamline the HR process) Privacy (Employment laws make securing HR information necessary for the protection of employees and the organization. IT can secure access to information based on job function.) Personnel planning and development: The HR department forecasts requirements for people and skills. In some geographical areas and for overseas assignments, it may be difficult to find particular types of employees. In such cases, the HR department plans how to locate sufficient human resources or develop them from within. Sophisticated HR departments build a career development plan for each employee. IT can support the planning, monitoring, and control of these activities by using workflow applications.
9.4 Questions: Which of the following is not one of the basic features offered by most accounting software packages?
Billing and invoicing
competitive global
Companies recognize that careful management of supply chain processes is critical for success in the highly _________ _____________ economy
9.2.8 What is CIM
Computer integrated manufacturing (CIM) systems control day-to-day shop floor activities. In the early 1980s, companies invested greatly in CIM solutions even though they were complex, difficult to implement, and costly to maintain. They had required the integration of many products and vendors. Today's CIM systems provide scheduling and real-time production monitoring and reporting. CIM data-driven automation affects all systems or subsystems within the manufacturing environment; design and development, production, marketing and sales, and field support and service. CIM systems can perform production monitoring, scheduling and planning, statistical process monitoring, quality analysis, personnel monitoring, order status reporting, and production lot tracking.
9.1 Questions: Which of the following terms is used to describe when information is be trapped in one functional area of the business and unavailable to support cross-functional business processes?
Data silos
-recover financial loss, punish perpetrators through lawsuits, criminal charges, and/or forfeited gains, stop fraudsters from victimizing other organziations
Designing. effective fraud response and litigation-readiness strategies (postincident strategies) is crucial to be able to do the following:
9.4 Questions: Often accounting solutions are closely integrated with enterprise systems, such as _______ systems that include an extensive accounting module
ERP
9.4 Questions: Which of the following was not one of the strong internal controls discussed in the chapter for preventing fraud?
Encrypted reporting
Traditional functional business areas include the following:
Finance and Accounting Production/Operations & SCM Marketing and Sales HR Management
plans and goals
For the organization to be fully effective, operational, tactical, and strategic _________ and ______ must be aligned -consistent, mutually supportive, and focused on achieving the enterprise's mission
9.4 Questions: ___________ is a system of policies and procedures to prevent and detect illegal acts committed by managers, employees, customers, or business partners against a company's interests
Fraud Risk Management
external interests
In regards to business success, _______________ such as customers, competitors, and partners are a part of the solution.
coordinate
In today's fast-paced, competitive business environment, departments or functions must be able to _____________ in the development of strategic plans and the performance of operations-level actions. -there needs to be cross-functional coordination -also becomes easier to identify problems or barriers to achieving objectives and develop solutions to those problems
9.5 Questions: Which of the following bests describes a primary ethical concern related to human resource management information systems and applications?
Inappropriate release of confidential employee information
Functional Business Systems (FBSs)
Information Systems designed to improve the efficiency and performance of a specific functional area within the organization
Business Management Systems (BMSs)
Information systems designed to support planning and the implementation process across the entire organization -aid leadership teams by using technology to improve cross-functional collaboration collaboration, clarify relationships between steps, assign responsibilities, monitor progress -employ visual aids to communicate alignment of strategies, goals, objectives, and tactics as well as metrics selected to measure performance and progress
9.5 Questions: HRISs have been moved to ____________ wherein HR applications are leased in SaaS arrangements
Intranets and clouds
9.3 Questions: Which of the following functions would not typically be part of a sales and marketing information system?
Inventory management
This is when JIT will fail
It will fail with these: -uncooperative supply chain partners, vendors, workers, or management -custom or non-repetitive production
9.5 Questions: Some reports suggest that over 90% of US companies use __________ as their primary source of identifying job candidates
9.2 Questions: ____________ management systems enable real time monitoring and tracking of supply chain shipments, schedules, and orders
Logistics
Differences between CIM and MES
MES: -refers to a broader infrastructure compared to CIM -based more on standard resuable application software, instead of custom-designed software programs on a contract-by-contract basis -tries to eliminate the time and info gap of early years on shop floor by providing plant. with real-time CIM: -provide scheduling and real-time production monitoring and reporting -affects all systems or subsystems within the manufacturing environment: design and development, production, marketing and sales, and field support service -these perform production monitoring, scheduling, planning, statistical process monitoring, quality analysis, personnel monitoring, order status reporting, production lot tracking
Factor for growth of TMS: TMS vendors add capabilities
Newer features were ideal because they were able to access information services to help the shipper identify optimal routes, given all current conditions -monitor in real-time, get rid of errors, and cut costs
9.2.7 What is the goal of lean management?
One objective of lean manufacturing is to eliminate waste of any kind; that is, to eliminate anything that does not add value to the final product. A second objective of lean manufacturing is to empower workers so that production decisions can be made by those who are closest to the production processes.
9.3.4 How do some online businesses determine the prices they will charge to individual customers?
Online retailers can personalize the webpages shown to individual customers and display a combination of products and prices customized to entice that customer to make a purchase. The automated decisions about what products and prices to display to a customer are determined by a complex algorithm based on the customer's previous purchases, web viewing history, activity on social media and product searches.
9.5.3 What concerns have deterred companies from implementing SaaS HR
Security. SaaS security may be as effective as security associated with in-house data centers, but many companies don't understand the situation. Some early adopters are keeping highly sensitive applications in house. Quality of service. The lack of formal service-level agreements (SLA) or performance and availability means quality of service may be a risky issue for some organizations. Integration. Many companies have questions about their ability to integrate SaaS applications seamlessly with their in-house applications.
9.2.1 What is the function of SCM in an organization?
Supply chain management coordinates all of the factors that contribute to customer value, including supplier relationships, logistics, inventory management across the supply chain, leading to order fulfillment.
9.4.2 Why does the SEC mandate data disclosure, whereby data items are tagged to make them easily searchable
The SEC's financial disclosure system is central to its mission of protecting investors and maintaining fair, orderly, and efficient markets. In 1984 the SEC began collecting electronic documents to help investors obtain information, but those documents made it difficult to search for and find specific data items To eliminate that difficulty and improve how investors find and use information, the SEC sought a new disclosure system that required data disclosure, whereby data items are tagged to make them easily searchable.
9.5.1 What are the key HR functions?
The key HR functions are: -Planning: Labor needs, skills, sources, strategy -Assessing: Measure performance, evaluate, and assess impact -Recruiting: Attract, select, match, and advertise -Retaining: Retain people, motivate, compensate, engage, and satisfy -Deploying: Assign the right people to jobs, schedule -Developing Human Resources: Train, create teams; improve skills HR also deals with employment policies, procedures, communications, and compliance requirements. HR will monitor workplace and employment practices to ensure compliance with the Fair Labor Standards Act (FLSA), Occupational Health & Safety Agencies (OSHA), and the antidiscrimination and sexual harassment laws. Effective HR compliance programs are a necessity for all organizations in today's legal environment.
9.2.5. What are the objectives of JIT
The main objective of JIT inventory management is to minimize holding costs by not taking possession of inventory until it is needed in the production process. With JIT, costs associated with carrying large inventories at any given point in time are eliminated. However, the tradeoff is higher ordering costs because of more frequent orders.
Factor for growth of TMS: TMSs handle big data
There is a high volume of data generated from transportation. New systems are able to take info and create value from it; this can lead to better decisions
internal interests
These also determine the success of a business, examples includeeffiency and effectiveness of managers, employees, core business processes and functions
Good BMS systems
These anticipate the need to change plans, goals, and outcomes and possess functionality that allows organizations to make these changes without undue difficulty
delays
These in regards to JIT are costly and. occur such as: -labor strikes -interrupted supply lines -bad weather -market demand fluctuations -stockouts -lack of communication upstream and downstream in the supply chain -unforseen production interruptions
prevention, detection, and investigation
These three things are needed to reduce the risk of publicly reporting inaccurate information because of financial fraud
9.3.2 List two sales and distribution channels
They fall into three categories: electronic, mobile, and physical channels. A PPC advertising campaign with other online and offline advertising initiatives generally provides the best overall results. A dealer is another example of a physical channel.
Human Resources
This is a field that deals with employment policies, procedures, communications, and compliance requirements -this needs to monitor workplace and employment practices to ensure compliance with the Fair Labor Standards Act (FLSA), Occupational Health and Safety Agencies (OSHA), and the antidiscrimination and sexual harassment laws
inaccurate cash flow projections
This is the #1 reason why many small businesses go bankrupt
annual budget
This is the financial expression of the enterprise's plans -allocates the financial resources of an organization among participants, activities, projects
9.2.6 Explain the different between EOQ and JIT inventory models
To minimize the sum of the three categories of inventory costs, the POM department has to decide when to order and how much to order. One inventory model that is used to answer both questions is the economic order quantity (EOQ) model. The EOQ model takes all costs into consideration. JIT inventory management attempts to minimize holding costs by not taking possession of inventory until it is needed in the production process. With JIT, costs associated with carrying large inventories at any given point in time are eliminated. However, the tradeoff is higher ordering costs because of more frequent orders. Because of the higher risk of stockouts, JIT requires accurate and timely monitoring of materials' usage in production.
9.5.6 What are ethical issues related to HRM applications
Training activities that are part of HRM may involve ethical issues in recruiting and selecting employees and in evaluating performance. Likewise, TPS data processing and storage deal with private information about people, their performance, and so forth. Care should be taken to protect this information and the privacy of employees and customers.
9.1.5 Explain the relationship between TPS and FBS
Transaction processing is information processing that is divided into distinct, undividable operations called transactions. While transaction processing certainly applies to the financial transactions that take place in a business (i.e. the data generated by a store cash register), transaction processing is used in the functional business systems of all areas. For example: Production/Operations: The tracking of materials or component parts as they enter and exit a warehouse or manufacturing facility.
ACID test: Isolation
Transactions must be isolated from each other. Ex. bank deposits must be isolated from a concurrent transaction involving a withdrawal from the same account
9.5.2 What are the benefits of moving HRISs to intranets or the cloud?
Using intranets, HR apps have shifted many routine tasks to employees who log in to manage their benefits, deductions, direct deposits, health care, and the like. When employees manage their own HR services, HR professionals can focus on legal and compliance responsibilities, employee development, talent management, hiring, and succession planning.
SCM
_____ was adopted as a way to coordinate all of the factors that contribute to customer value, including supplier relationships, logistics, inventory management across the supply chain, order fulfillment, etc.
Information systems
_________ have been developed to support organizations with traditional production and operations management (POM) as well as SCM processes
major reason why organizations fail
an organization's inability to forecast and/or secure sufficient cash flow
9.1 Questions: The _________ requirement of the ACID test dictates that if all steps in a transaction are not completed, then the entire transaction is canceled
atomicity
fraud occurs because
because internal controls to prevent insider fraud will fail on occasion, no matter the strength
moral hazard
by keeping quiet a fraud situation, you need to report because it produces a ___________--- that is, they take the risk out of insider fraud
Securities and Exchange Commission (SEC)'s financial disclosure system
central to its mission of protecting investors and maintaining fair, orderly, and efficient markets by making investors obtain information and put in the document to be held each year
accounting and financial departments
control and manage cash flows, assets, liabilities, and net income (profit)
9.1.3 Explain each component of the ACID test
criteria for transactional data atomicity- is all steps are not completed the transaction is canceled consistency- unique check numbers only isolation- each bank transaction is its own durability- a backup is not enough, a recovery system
logistics management
deals with the coordination of several complex processes, namely ordering, purchasing or procurement, inbound logistics, and outbound logistics activities. These systems: -optimize transportation operations -coordinate with all suppliers -integrate supply chain technologies -synchronize inbound and outbound flows of materials or goods -manage distribution or transport networks -These enable real-time monitoring and tracking of supply chain shipments, schedules, and orders
mission
defines the organization's purpose and what ie hopes to achieve
key element of CIM strategy
deployment of two flexible manufacturing systems (FMSs) that can accommodate the manufacture of different parts at different volumes
9.3 Questions: Information systems and ______________ that have emerged in the last 10-15 years have resulted in new revenue streams, new business models, new retail, promotion and distribution channels, and entirely new industries
digital networks
9.4 Questions: The Securities and Exchange Commission requires public companies to file reports formatted in _____ with metadata tags that make it easier for investors to analyze and compare the financial performance of public companies, increasing the efficiency and transparency of reporting processes and the ability to consolidate financial data from different operating systems
eXtensible Business Reporting Language (XBRL)
financial accounting standards board (FASB)
establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations
safety stock (buffer stock)
extra inventory used as a buffer to reduce the risk of stockouts. -needed in case of upexpected events, such as spikes in demand or longer delivery times.
9.3 Questions: Which of the following is not a factor used by digital marketers to determine the placement of digital PPC ads?
frequency of web browsing
BAE Systems
global company headquartered in London, England, engaged in development, delivery, and support of advanced defense, security, and aerospace systems -They employed a CIM system to help with throughput of titainium miliary aircraft parts cost-effectively that ensured the titanium parts could be manufactured using a JIT basis
transaction processing
information processing that is divided into distinct individual operations called transactions: is used in Production/Operations (tracking of materials or component parts as they enter and exit a warehouse or manufacturing facility Marketing/Sales: Management of sales orders and order fulfillment Human resources: Processing of payroll and employee records Finance/Accounting: Processing of credits and debits to a customer's checking account at a bank
PPC
integrating a ______ advertising campaign with other online and offline advertising initiatives generally provides the best overall results
Factor for growth of TMS: Growth of intermodal transport
intermodal transportation (using two or more transport modes- ship and plane) is being used more and more; old TMS systems do not have the capacity to work with this; when selling online became common-place, this need was found
stockouts
inventory shortage arising from unexpected demand, delays in scheduled delivery, production delays, or poor inventory management
batch processing
involves the collection of transactional data over some period of time, and then all of the transactions are processed as a batch at one time
objective of financial accounting
is not to simply report the value of a company. Rather, its purpose is to provide sufficient and accurate information for others to assess the value of a company for investment or other purposes
XBRL language
language for the standards-based exchange of business information between business systems -each item is tagged with descriptive metadata or labels (such as calendar year, audited/unaudited status, currency, so on) -this language makes it possible for the reports to be read by any software that includes an XBRL processor -before this, investors who wanted specific data had to manually search lengthy corporate annual reports or mutual fund documents
9.4.1 What is eXtensible Business Reporting Language (XBRL)?
language for the standards-based exchange of business information between business systems -each item is tagged with descriptive metadata or labels (such as calendar year, audited/unaudited status, currency, so on) -this language makes it possible for the reports to be read by any software that includes an XBRL processor -before this, investors who wanted specific data had to manually search lengthy corporate annual reports or mutual fund documents XBRL helps companies: Generate cleaner data, including written explanations and supporting notes. Produce more accurate data with fewer errors that require follow-up by regulators. Transmit data faster to regulators and meet deadlines. Increase the number of cases and amount of information that staffers can handle.
red flags or fraud indicators
lavish vacations, jewelry, cars
taxonomy
like a data dictionary that defines financial concepts and the relationships between various types of data that might be included in a financial report
Manufacturing execution systems (MESs)
manage operations on the shop floors of factories functions include: -compiling a bill of materials -resource management -scheduling -preparing and dispatching production orders -preparing work in progress reports -tracking production lots
Strategic plan: operations level
managers and supervisors work closely with the workforce and customers; they are on the front lines, ensuring that employees have the resources necessary to carry out their roles and ensuring that customers are well-served and satisfied with their experience
Strategic plan: tactical level
mid-level managers design business processes, procedures, and policies to implement strategic plans
9.2.2 What trends are contributing to the growing use of TMS?
my answer: 1. Outdated transportation systems that need to be upgraded or replaced 2. Growth of intermodal transport 3. TMS vendors add capabilities 4. TMSs handle big data
9.1.2 Define what an SOP is and give an example
my answer: Standard Operating Process- a set of written instructions on how to perform a function or activity. SOPs provide the framework for complex processes to be managed more efficiently -SOPs are written, for example, for handling purchase orders, order fulfillment, customer complaints, recruitment and hiring, emergency response, and disaster recovery.
9.2.3 Define logistics management
my answer: deals with the coordination of several complex processes, namely ordering, purchasing or procurement, inbound logistics, and outbound logistics activities. These systems: -optimize transportation operations -coordinate with all suppliers -integrate supply chain technologies -synchronize inbound and outbound flows of materials or goods -manage distribution or transport networks -These enable real-time monitoring and tracking of supply chain shipments, schedules, and orders
9.4.3 What is insider fraud? What are some other terms for insider fraud?
nsider fraud refers to a variety of criminal behaviors perpetrated by an organization's employees or contractors. Other terms for this crime are internal, employment, or occupational fraud.
financial misrepresentation
occurs when a company has intentionally deceived one or more other parties
ACID test: Consistency
only operations that meet data validity standards are allowed. Network failures also cause data consistency problems Ex. Only unique check numbers are allowed
strategic, managerial, operational
planning occurs at three stages ________________ -managers at each level operate with a different time frame, which transitions from long term (a few years) at the strategic level to "in the moment" (daily) at the operations level
operations function of business
plans and coordinates all the resources needed to design, manufacture, and transport products
capital budgeting
process of analyzing and selecting investments with the highest return on investment (ROI) for the company -the process may include comparing alternative investments, for example, evaluating private cloud vs. public cloud computing options
Recruitment
process of finding potential employees with the skills and talent needed by the company, testing them, and deciding which ones to hire
marketing function of business
product promotion and pricing, identifying target customers, and improving the customer experience (CX)
9.3.1 Explain push-through marketing and pull-through marketing
push-through: business gets their message in-front of potential customers, requires a lot of reach and can be considered interrupted; good if people are not familiar with your product pull-through: customer is interested in the product and seeks info, then advertiser shows the customer more info in different ways to encourage purchase In pay-per-click (PPC) marketing, ads use data about the person to determine whether the ad should appear; i.e., online advertising that "appears" on the screens of consumers' devices is based on the user's location, behavior, interests, or demographic information. This capability creates opportunities for highly targeted advertising programs.
human resources
recruits, trains, and develops a talented workforce
9.2 Questions: Stockouts of materials and parts can slow down production while stockouts of final products results in __________
reduced sales
inbound logistics
refers to receiving inventory
outbound logistics
refers to shipping inventory
data-driven, fact-based decision making
relies on data that are hot- impacting the business or potential customer right now or in real time
finance function of business
responsible for acquiring capital needed for research and development and other investment processes
9.2 Questions: Which of the following is not one of the inventory costs discussed in the text?
selling costs
google customer surveys
service that publishers can use to generate revenues from their online content. -alternative to having a paywall for online news content
9.3 Questions: Responding to customer complaints or answer questions that come through on Twitter and Facebook is referred to as________________--
social media customer service
inventory control systems
stock control or inventory management systems -important because they minimize the total cost of inventory while maintaining optimal inventory levels -inventory levels are maintained by reordering the quantity needed at the right times in order to meet demand -must weigh the cost of inventory against the cost of stockouts
income statement
summarizes a company's revenue and expenses for one quarter of a fiscal year or the entire fiscal year. it is also known as a P&L (profit and loss) or earnings statement
fraud risk mangement
system of policies and procedures to prevent and detect illegal acts committed by managers, employees, customers, or business partners against a company's interests -involves a accessing a company's exposure to fraud; implementing defenses to prevent and detect fraud; defining procedures to investigate, prosecute, and recover losses from fraud
IT functions of business
technology infrastructure, data management, social/mobile/cloud services
insider fraud
term referring to a variety of criminal behaviors perpetrated by an organization's employees or contractors. -other terms for this crime are internal, employment, or occupational _______
auditing
the job of reviewing and evaluating the information used to prepare a company's financial statements
employee relationship management (ERM)
these are human capital management systems that help to streamline the HR process
Transportation Management Systems
these are relied on to handle transportation planning, which includes shipping consolidation, load and trip planning, route planning, fleet and driver planning, and carrier selection, vehicle management and accounting transactions
standard operating procedures (SOPs)
these are what operational level functions are made up of -a set of written instructions on how to perform a function or activity. SOPs provide the framework for complex processes to be managed more efficiently
manufacturing quality control (QC) systems
these can be stand-alone systems or part of an enterprise-wide total quality management effort -provide data about the quality of incoming materials and parts, as well as the quality of in-process semifinished and finished products -record the results of all inspections and compare actual results to expected results -this data is collected by sensors or radio frequency identification systems -either interpreted in real time or stored in database for future analysis -reports on percentage of defects or percentage of rework needed can keep managers informed of performance among departments
Human Resource Information Systems (HRISs)
these reduce the workload of the HR department Ex. PeopleSoft Human Capital Management -now moved to intranets and clouds
computer-integrated manufacturing (CIM)
these systems control day to day shop floor activities. This also help production managers better use information to execute manufacturing. plans
pay-per-click (PPC)
this is an example of hot data -this is a website advertising that appears on the screens of consumers' devices based on their location, behavior, interests, or demographic information
lean manufacturing system
this is where suppliers deliver smaller lots on a daily or frequent basis, and production machines are not necessarily run at full capacity -one objective is to eliminate waste of any kind or that does not add value to the final product -second objective of lean management is to empower workers so that production decisions can be made by those who are closest to the production processes
9.3 Questions: Online retailers can personalize the webpages shown to individual customers and display a combination of products and prices customized to entice that customer to make a purchase. Which of the following was not one of the factors listed as influencing how the personalized pages are created?
time spent online
strategic planning
top management activity that establishes goals and objectives, identifies strategies, allocates resources, and aligns operational activity for achieving desired outcomes
social media customer service representatives
trained to offer support and solutions to customer problems in order to retain the customer's loyalty and demonstrate the brand's commitment to customer satisfaction
9.1 Questions: _____________ processing is information processing that is divided into distinct, undividable operations called transactions
transaction
Online Transaction Processing Systems (OTPS)
transaction processing systems that employ client server systems that allow transactions to run on multiple computers on a network, processing transactions in real time.
real time processing
transactions are processed as they occur, which means that account balances and other related counts are kept up to date
batch processing and real time
transactions can be processed in two ways
9.2 Questions: ___________ management systems are relied on to handle transportation planning, which includes shipping consolidation, load and trip planning, fleet and driver planning, and carrier selection.
transportation
Just-in-time (JIT) and lean manufacturing
two models or methods used to minimize waste and deal with the complexity of inventory management
high-profile examples of financial misrepresentations
-Bernard L Madoff Investment Securities (2008) -Lehman Brothers (2008) -Enron (2001)
Target Marketing System
-Database Marketing -Telemarketing -Nicke/Regional Marketing and Microsegmentation -customer profitability analysis -internet marketing
Strategic Level
-Market, Customer, Products, Services -What do we do? What is our direction? What markets and customers should we be targeting and how do we prepare for them?
Operational Level
-Policies, Processes, and Technology -How well do we do it? How can we be more efficient?
Supply Chain Management
-Supplier relationships -Procurement -Manufacturing -Product Lifecycle Management -Inventory Management -Logistics -Demand Management -Order Fulfillment
Features of basic software packages
-accounts receivable (A/R) -accounts payable (A/P) -general ledger -billing and invoicing -purchase and sales orders -reporting -top ones offer more power, flexibility, and customization
sales and marketing systems support the following
-digital advertising -social media monitoring and promotions -sales and customer support -automated ad placement and media buying -market research -intelligence gathering -distributing products and services to customers -order tracking -online and mobile order processing -online and mobile payment methods
accounting must comply with
-generally accepted accounting principles (GAAP) and Fiancial Accounting Standards Board (FASB)
XBRL helps companies
-generate cleaner data, including written explanations and supporting notes -produce more accurate data with fewer errors that require follow-up by regulators -transmit data more quickly to regulators and meet deadlines -increase the number of cases and amount of information that staffers can handle
Profitability Analysis
-managers need to know the profit contribution or profit margin of certain products and services to decide on advertising and marketing efforts -cost-accounting system can be used for profitability metrics
9.3.3 Describe profitability analysis
-managers need to know the profit contribution or profit margin of certain products and services to decide on advertising and marketing efforts -cost-accounting system can be used for profitability metrics In deciding on advertising and other marketing efforts, managers need to know the profit contribution or profit margin (profit margin 5 sale price minus cost of good) of certain products and services. Profitability metrics for products and services can be derived from the cost accounting system.
Dealer Systems
-marketing and sales support and services -value-added partnerships -dealers' communications -business management support functions
Salesperson Productivity
-multidimensional spreadsheet software facilitates analysis of salespeople -sales productivity can be boosted by web-based call centers -salesforce.com is helpful to small businesses to help increase sales through CRM application
Pricing of products or services
-sales volume and profits are determined by prices of products and services -customizing prices depending on customer on online websites -flash sales are also a management tactic to entice purchases
9.4.4 What is fraud risk management?
. Fraud risk management is a system of policies and procedures to prevent and detect illegal acts committed by managers, employees, customers, or business partners against the company's interests. Although each corporation establishes its own specific procedures, fraud risk management involves assessing a company's exposure to fraud; implementing defenses to prevent and detect fraud; and defining procedures to investigate, prosecute, and recover losses from fraud. Analyzing why and how fraud could occur is as important as detecting and stopping it. This analysis is used to identify necessary corporate policies to deter insider fraud and fraud detection systems for when prevention fails.
9.2.4 What are the three categories of inventory costs
1. Inventory holding costs: warehousing costs (see Figure 9.10), security costs, insurance, losses due to theft or obsolescence, and inventory financing costs based on the interest rate. 2. Ordering and shipping costs: employees' time spent ordering, receiving, or processing deliveries; and shipping fees. 3. Cost of shortages: production delays and missed sales revenues because of stockouts.
Four trend factors contributing to the growth of TMS are:
1. Outdated transportation systems that need to be upgraded or replaced 2. Growth of intermodal transport 3. TMS vendors add capabilities 4. TMSs handle big data
how IT facilitates the work of the HR department
1. Planning (labor needs, skills, sources, strategy) 2. Recruiting (attract, select, match, advertise) 3. Developing Human Resources (train, create teams, improve skills) 4. Deploying (assign the right people to jobs, schedule) 5. Retaining (retain people, motivate, compensate, engage, and satisfy) 6. Assessing (measure performance, evaluate, assess impact)
Examples of how marketing management is being accomplished
1. Pricing of products or services 2. Salesperson Productivity 3. Profitability Analysis
Strong Internal Controls, which depend on IT for their effectiveness consists of the following
1. Segregation of duties (work of managers and employees needs to be subject to approval) 2. Job rotation (More than one person should be familiar with each transaction cycle in the business wherever possible) 3. Oversight (Management must monitor what is happening in business, unannounced checks) 4. Safeguarding of assets (strong password control) 5. IT policies (managers must understand IT and not only IT staff)
Seven employment laws to protect against discrimination:
1. Title VII of the Civil Rights Act of 1964 2. Civil Rights Act of 1966 3. Equal Pay Act of 1963 4. Bankruptcy Act 5. Americans with Disabilities Act 6. Equal Employment Opportunity Act 7. Age Discrimination in Employment Act (ADEA)
9.4.5 What four factors increase the risk of fraud?
1. high level of trust in employees without sufficient oversight to verify that they are not stealing from the company 2. Relying on informal processes of control 3. A mindset (belief) that internal controls and fraud prevention systems are too expensive to implement 4. Assigning a wide range of duties for each employee, giving them opportunities to commit fraud
Factors that increase a company's exposure to fraud
1. high level of trust in employees without sufficient oversight to verify that they are not stealing from the company 2. Relying on informal processes of control 3. A mindset (belief) that internal controls and fraud prevention systems are too expensive to implement 4. Assigning a wide range of duties for each employee, giving them opportunities to commit fraud
most effective fraud prevention technique
A company shows its employees that it can find out everything that every employee does and will prosecute to the fullest extent anyone who commits fraud
problem solving, decision making, compliance
A wide range of specialized technologies, such as Salesforce.com and eXtensible Business Reporting Language (XBRL) for financial reporting support ________________, __________________, ___________________
Benefits of CIM
1. It simplifies manufacturing technologies and technqiues 2. automates as many of the manufacturing processes as possible 3. integrates and coordinates all aspects of design, manufacuring, and related functions -it is comprehensive, flexible, and helpful
Inventory control systems minimize the following three cost categories:
1. inventory carrying costs 2. inventory ordering costs 3. cost of shortages -to minimize the sum of these three, the company must decide when to order and how much to order -the economic order quantity model (EOQ) helps to answer those questions and takes all costs into consideration
ACID test: Atomicity
If all steps in a transaction are not completed, the entire transaction is canceled Ex. If you transfer funds from your savings account to your checking account, a debit is made to savings, while a credit is made to checking account. If one of these fails, the other one is not allowed
9.1.4 Explain the differences between batch and real-time processing
In online transaction processing (OLTP), events or transactions are processed as soon as they occur. Data are accessed at that time directly from the database, including updates. With batch processing, like transactions are grouped together and the entire group is processed at a later time. This type of processing is more efficient and less costly, but results, including updates to the database, have to wait until the group is processed.
Factor for growth of TMS: Outdated transportation systems need to be upgraded or replaced
The old systems were outdated but could now be replaced with new ones that include advanced technology
Ducati's high-performance global DCS (Ducati Communication System)
device used in dealerships to help integrate a lot of information, increase and make rich a customers experience, and also train staff on new product updates, run all parts of the business, respond quicker to customer demands
strategic plans
documents used to communicate the company's goals and the actions needed to achieve them -visionary and future-oriented
9.1.1 Explain the purpose of BMSs
information systems designed to support planning and the implementation process across the entire organization. Functional Business Systems are information systems designed to improve the efficiency and performance of a specific functional area within the organization.
9.1 Questions: Business Management Systems are designed to help companies with ______
strategic planning
Managerial/Administrative Level
-Business Model and Organization -How do we do it? How do we generate revenues & profits to sustain ourselves and build our brand?
Sales System
-Communications with the Field -Sales Process/Account Management -Selling Aids/SalesForce Support -Selling Aids/Point of Purchase -Prospecting -Wireless Sales Force Automation -Internet Marketing
lean management may fail
This will fail when -bad weather -labor strikes
9.2 Questions: The production and operations management area is most related to which of the following?
supply chain management
9.1 Questions: Originally, information systems were designed to support the _______________ function
Accounting
9.4.6 Explain how accounting ISs can help deter fraud?
Accounting ISs can provide strong internal controls, can prevent some fraud from taking place, can provide transaction tracking, and can provide the perception that if an employee tries to commit fraud, he/she will most likely be caught.
9.5 Questions: Which of the following HR functions is not listed in the chapter as being facilitated by information systems or technology
All of the above
9.5 Questions: Human resource applications have shifted many routine tasks to employees who log in to manage their retirement contributions, payroll deductions, direct deposits, and health care benefits. What is the primary benefit of these applications to human resource managers?
Allows managers to focus on more strategic HR functions
ACID test: Durability
Backups by themselves do not provide this. This is achieved through separate transaction logs that can be used to recreate all transactions from a known checkpoint. Recovery manager programs.
physical possession
Because ______________ of stolen property is no longer required and it is just as easy to program a computer to misdirect $100,000 as it is $1,000, the size and number of frauds have increased a lot
9.5.4 How can companies reduce the cost of recruiting qualified employees?
using programs like Linked In that sort through and match candidates IT provides the ability to access more potential recruits, collect their information, search the data, and select a pool of applicants based upon specific criteria. This allows a company to evaluate more people with less human intervention.
major task of accounting/finance department
watch the financial health of the company by monitoring and assessing a set of financial ratios -used by external parties when they decide whether to invest in an organization, extend credit, or buy it
