MIS Ch.7

Marketing functions (Marketing and sales systems)

(4 P's): 1.Product characteristics (customers' needs) 2.Price (customers' willingness to pay) 3.Promotional strategy (advertising) 4.Place (distribution)

Enterprise Application Integration (EAI)

Combine functional systems using layers of software as a bridge to connect different functional systems together Band-Aid solution to address issues with multiple functional systems Cheaper than the alternative (deploy a new industry standard integrated system)

Business Process Design (redesign)

Organizations should not simply automate or improve existing functional systems Organizations should create new, more efficient business processes that integrate the activities of all departments involved in a value chain In other words, re-design business processes

Customer Relationship Management (CRM)

Support the business processes of attracting, selling, managing, delivering, and supporting customers Direct value chain activities that involve the customer All customer data stored in single database Integrates four phases of the customer life cycle:

Accounting and Finance Systems

Used to track cash flow, analyze income and expenses, generate statements and reports, and to provide decision support in pursuing growth strategies... among other uses!

Inter-organizational systems

are cross-functional systems used by two or more related companies Such as a company and its suppliers and/or customers Two types of Inter-organizational Systems: Supply Chain Management (SCM) E-commerce

Cross-functional systems

are designed to overcome problems in functional systems/silos Two typical examples of such systems are: 1.Enterprise Resource Planning (ERP) 2.Customer Relationship Management (CRM)

Problems with Isolated Functional Systems

- Data duplication and data inconsistency - Disjointed processes - Limited information and lack of integrated information - Isolated decisions lead to inefficient overall activities - increased expense

Basic Types of Functional Systems

- Examples Marketing and Sales - Product Management Operations - Order Entry Manufacturing - Inventory Human Resources - Payroll and compensation Accounting and Finance - General Ledger

supply chain

- is a network of organizations and facilities that transforms raw materials into products delivered to customers - Customers order from retailers, who in turn order from distributors, who in turn order from manufacturers, who in turn order from suppliers - The supply chain also includes transportation companies, warehouses, and inventories and some means for transmitting messages and information among the organizations involved (information systems)

Customer Life Cycle

1.marketing 2.customer acquisition 3.relationship management 4.loss/churn

Supplier Relationship Management (SRM)

Business process for managing all contacts between an organization and its suppliers - Supports both the in-bound logistics primary activity and the procurement support activity - Support basic business processes: Source, Purchase, and Settle

Benefits of ERP

Efficient business processes Inventory reduction Lead-time reduction Improved customer service Greater, real-time insight into organization Higher profitability

Enterprise Resource Planning (ERP)

One central database is combined with a set of standard processes built on top of the database to ensure integration between functional area Support all the primary business processes as well as the human resource and accounting support processes Enterprise-wide systems that integrate sales, order, inventory, manufacturing, and customer service activities ERP systems provide software, predesigned databases, procedures, and job descriptions for organization-wide process integration

Benefits of IS on Supply Chain Performance

Reduce costs of buying and selling Increase supply chain speed Reduce size and cost of inventories Improve delivery scheduling—enable just-in-time (JIT) inventory

Functional silos

Systems designed to work independently of one another

Manufacturing Systems

Used by companies that transform materials into products (goods)

Operation systems

Used by non-manufacturing companies e.g. distributors, wholesalers, and retailers

Operations

activities concern the management of finished-goods inventory and the movement of goods from that inventory to the customer

SCM systems

are inter-organizational systems that enable companies to efficiently handle the flow of good from Suppliers to Customers

Cross-departmental (process-based systems)

operate across departmental boundaries Increased functionality to support business processes Integrated processing systems are more efficient

Push production planning

organization creates schedule and pushes goods through manufacturing and sales

Pull production planning

responds to customer demand (just-in-time) reduction in inventory triggers production