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4-1
Learning Objectives
Relate functional areas and business processes to the value chain model Identify functional management information systems Describe the transaction processing system and demonstrate how it is supported by IT Describe the support provided by IT to each of these: production/operations, marketing and sales, accounting, finance, and human resources management Describe the benefits and issues of integrating functional information systems Describe the role of IT in facilitating customer relationship management (CRM)
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The Solution
purchased a integrated system that includes: accounting, POS terminal, inventory control, purchasing/receiving, employee time control and attendance, hand-held automatic identification and data collection, and several others
The Results
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Lower cost for data entry, reduction in inventory and storage space, fast access to information, better customer service, and higher employee satisfaction
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IT support the routine processes of a retailer, enabling it to be efficient and effective and to satisfy its customers IT software helped the modernization and reengineering of the companys major business processes The software supports several business processes, not just one The systems major applications were in logistics. However, a vendor provides integrated software IT can be beneficial to a relatively small company The integration includes connection to business partners using the Internet
Support Activities
Primary Activities
Pr M of a rg i t in
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Objectives of TPS
To provide all the information needed by law and/or by organizational policies to keep the business running properly and efficiently To allow for efficient and effective operation of the organization To provide timely documents and reports To increase the competitive advantage of the corporation To provide the necessary data for tactical and strategic systems such as DSS applications To assure accuracy and integrity of data and information To safeguard assets and security of information
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Flexibility to accommodate unpredictable growth in processing demands Cost effectiveness even for small dollar amounts Interactive, automatic billing, enabling companies to offer services to anyone, not just subscribers Timely search and analysis of large databases Multimedia data such as pictures and sound are handled effectively and efficiently High data throughput to support inquiries requiring massive file size Fast response time Effective storage of huge graphics and video databases
Inventory Inventory Files Files Department Department Sales Files Sales Files
4-12
Payroll Payroll
Taxes Taxes
Customers Customers
Supply-Chain Management
Suppliers Suppliers Transaction Transaction Inbound Logistics Inbound Logistics Delivery Delivery
Information Flow
Transfer Transfer Transfer Transfer
Suppliers
Manufacturing
Distribution
Retail Outlet
Customer
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Planning Production/Operations
Material Requirements Planning (MRP) Manufacturing Resource Planning (MRP II) Just-in-Time Systems Project Management
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Channel Systems
The customer is king (queen)
Customer profiles and preference analysis Prospective customer lists and marketing databases Mass customization Targeted Advertisement on the Web customer inquiry systems and Automated Help Desk (EC application)
4-20
Channel Systems
Telemarketing
Capabilities
personalized contact with the customers allows customers to buy at their convenience effective in informing customers about a companys products and services
Limitations
cost can be high difficult to find good telemarketers may be seen by many as a nuisance challenges in reaching people
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Distribution Channels
Distribution channels management
DSS models are frequently used to support the decision of accomplishing by a company, or by a subcontractor
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Marketing Management
Pricing of products or services Salesperson productivity Productivity software Products and customers profitability analysis Sales analysis and trends
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INTERNAL ENVIRONMENT
Top Management Operation/ Production Marketing HRM Engineering a. b. c. e. g.
TACTIAL SYSTEMS
Budgeting Preparation and Control Investment Management Capital Budgeting d. Cost Analysis and Control Tax Management f. Auditing Financial Planning
EXTERNAL ENVIRONMENT
IRS SEC Vendors Clients CPA Companies Suppliers Customers Business Partners
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Operational and Operational and Transaction Transaction Processing System Processing System
Investment Management
Access to financial and economical reports
Internet meta-search engines for finding financial data Internet directories and yellow pages Software for monitoring, interpreting, analyzing financial data, and alerting management
Financial analysis
Treasury risk management systems (TRMS)
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Recruitment
Position inventory Employee selection Using the Internet
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Internet Applications
Eddify Corporations employee service systems allows users to access information via PCs, voicerecognition phone, kiosks, or faxes. Oracle corporation conducts its flexible benefits enrollment program on the intranet Apple Computers Inc. conducts extensive education and development activities on the intranet, including a remote management-training program
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State Farm Insurance Co. manages several initiatives for retaining customers by a computerized incentives system
IT Support
Internet; online customer survey; groupware; expert systems for giving advice. E-mail; data warehouse for customer information; data mining; intelligent translating systems; search engines on the Web help center.
IT Support
Workflow software for planning and monitoring; intranets Expert systems for advice; groupware for collaboration. Online training; Internet. Web-based training software; workflow Data mining in data warehouses. Web-based intelligent agents.
IT Support
Intelligent agents to find what customer wants; CAD/CAM to reduce cost of customization Chat room; sponsored newsgroups. Data warehouses and data mining of customers activities; smart cards that record purchasers activities. Online surveys; newsgroups; chat room; e-mail Data warehouse; data mining.
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