Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Differentiation
Innovation
Operational Effectiveness
Customer-orientation
2.3 Why are Information Systems
Important to Organizations & Society
Toyota
Production
System
Toyota Production System (continued)
Batch Processing
Online Transaction Processing (OLTP)
Transaction processing system (TPS) monitors,
collects, stores and processes data generated from all
business transactions.
Batch Processing is when the firm collects data from
transactions as they occur, placing them in groups or
batches, then prepares and processes the batches
periodically (say, every night).
Online Transaction Processing (OLTP) is when
business transactions are processed online as soon as
they occur.
Source data automation involves collecting data from
sensors (e.g., barcode scanners) and entering the data
directly into a computer without human intervention.
How Transaction Processing Systems
Manage Data
8.2 Functional Area Information Systems
Routine reports
Ad hoc (on demand) reports
Drill-down reports
Key-indicator reports
Comparative reports
Exception reports
Summary Report
A summary
report is one
type of routine
report
Detailed Report
A detailed
report is
another type of
routine report
Drill-Down Report
Drill-down
report is a
type of ad-
hoc report
Key-Indicator Report
Key-indicator
report is a
type of ad-hoc
report
Comparative Report
Comparative
report is one
type of ad-hoc
report.
Exception Report
8.3 Enterprise Resource Planning
Systems (ERP)
The major objective of ERP systems is to tightly
integrate the functional areas of the organization and
to enable seamless information flows across the
functional areas.
8.3 Enterprise Resource Planning
Systems (ERP)
Enterprise Resource Planning (ERP) systems
integrate the planning, management and use of all
resources of the organization. That is, ERP systems
are designed to break down the information silos of
an organization.
SAP is moving away from describing their system as a set of modules, and
now is using the term “solutions.” On their Website, SAP has structured their
Solutions tab as follows:
Financials
Human Resources
Customer Relationship Management
Supplier Relationship Management
Product Lifecycle Management
Supply Chain Management
Business Intelligence
SAP Modules
SAP modules:
FI Financial Accounting – essentially your regulatory ‘books of record’
General ledger
Book close
Tax
Accounts receivable
Accounts payable
Consolidation
Special ledgers
CO Controlling – basically your internal cost/management accounting
Cost elements
Cost centers
Profit centers
Internal orders
Activity based costing
Product costing
AM Asset Management – track, value and depreciate your assets
Purchase, Sale ,Depreciation ,Tracking ,
PS Project Systems – manage your projects, large and small
SAP Modules
Make to order
Plant shut downs (as a project)
Third party billing (on the back of a project)
HR Human Resources – people
Employment history
Payroll
Training
Career management
Succession planning
PM Plant Maintenance – maintain your equipment
Labor
Material
Down time and outages
MM Materials Management – underpins the supply chain
Requisitions
Purchase orders
Goods receipts
Accounts payable
Inventory management
Bills of Material
Master raw materials, finished goods etc
QM Quality Management – improve the quality of your goods
Planning
Execution
Inspections
Certificates
PP Production Planning – manages your production process
Capacity planning
Master production scheduling
Material requirements planning
Shop floor
SD Sales and Distribution – from order to delivery
RFQ
Sales orders
Pricing
Picking (and other warehouse processes)
Packing
Shipping
ERP Systems (continued)
A business process is a set of related steps or
procedures designed to produce a specific outcome.
8.4 Customer Relationship
Management
Includes a one-to-one
relationship between a
customer and a seller.
One simple idea “Treat
different customers
differently.”
Helps keep profitable
customers and maximizes
lifetime revenue from them.
The Need for CRM
It costs six times more to sell to a new
customer than to sell to an existing one.
A typical dissatisfied customer will tell 8-10
people.
By increasing the customer retention rate by
5%, profits could increase by 85%.
Odds of selling to new customers = 15%,
compared to the odds of selling to existing
customers (50%)
70% of complaining customers will remain
loyal if problem is solved
The Customer Life Cycle
Customer Value
The value of a customer to a company
depends on three dimensions: the duration
of the relationship, the number of
relationships (e.g., the number of products
from a company that a customer purchases),
and the profitability of the relationship.
Customer Touch Points
Store
Conventional mail Help desk
CRM Applications
CRM systems provide applications in 3 major areas:
Sales - sales force automation (SFA).
Marketing – support marketing campaigns & provide
opportunities for cross-selling, up-selling and bundling.
Customer Service – can take many Web-based forms.
Sales force automation (SFA) functions provide such data as
sales prospect and contact information, product information,
product configurations and sales quotes.
Cross-selling is the marketing of complementary products to
customers.
Up-selling is the marketing of higher-value products or services
to customers.
Bundling is a type of cross-selling in which a vendor sells a
combination of products together at a lower price than the
combined costs of the individual products.
Customer Service
Customer service can take many forms and
includes:
Technical and other information and services
Customized products and services
Tracking account or order status
Personalized Web pages
FAQs
E-mail and automated response
Call centers
Software as a Service for CRM
(IT’s About Business 8.2)
8.5 Supply Chain Management
Systems (SCM)
Supply chain
Supply chain management (SCM)
Interorganizational information system (IOS)
Global information system
Supply chain refers to the flow of materials, information,
money, and services from raw material suppliers, through
factories and warehouses, to the end customers.
Supply chain management (SCM) is the function of
planning, organizing and optimizing the supply chain’s
activities.
Interorganizational information system (IOS) involves
information flows among two or more organizations.
Global information systems are interorganizational
information systems that connect companies located in
two or more countries
Supply Chain (recall Figure 2.2)
The Structure & Components of
Supply Chains
A supply chain involves three segments:
Upstream
Internal
Downstream
Tiers of suppliers
Upstream, where sourcing or procurement from
external suppliers occurs.
Internal, where packaging, assembly or
manufacturing takes place.
Downstream, where distribution takes place,
frequently by external distributors.
Tiers of suppliers, a supplier may have one
or more subsuppliers, and the subsupplier
may have its own subsupplier(s) and so on.
Generic Supply Chain
The Flows of the Supply Chain
Material flows
Information flows
Financial flows
Material flows are the physical products, raw materials,
supplies and so forth that flow along the chain.
Information flows are all data related to demand, shipments,
orders, returns and schedules as well as changes in any of
these data.
Financial flows are all transfers of money, payments and
credit-related data.
A supply chain involves a product life cycle approach, from
“dirt to dust”.
Problems Along the Supply Chain
Poor customer service
Poor quality product
High inventory costs
Loss of revenues
New technologies
Problems Along the Supply Chain
(continued)
The relationships
among SCM, ERP,
and CRM
8.6 Electronic Data Interchange (EDI)
and Extranets
http://www.informationbuilders.com/rfr/qtdem
o/AdvVis_ExecDash/AdvVis_ExecDash.html
A Bloomberg Terminal (Figure 9.5)
Management Cockpit (Figure 9.6)
Management Cockpit
A strategic management room that enables top-level
decision makers to pilot their businesses better.
The environment encourages more efficient
management meetings and boosts team performance
via effective communication.
Key performance indicators and information relating
to critical success factors are displayed graphically
on the walls of the meeting room.
External information can be easily imported to the
room to allow competitive analysis.
9.4 Data Visualization Systems
Data visualization is the process of
presenting data to users in visual formats,
thereby making IT applications more
attractive and understandable to users.
The Power of Visualization
Even though a picture is “worth a thousand
words,” we have to be very careful about just
what we are seeing.
Remember, on the Internet, it is “user
beware!”
New York City Police Department
Command Center
Knowledge base
Inference engine
User interface
Blackboard
Explanation subsystem
The Components of Expert Systems
Knowledge base contains knowledge necessary for
understanding, formulating and solving problems.
Inference engine is a computer program that
provides a methodology for reasoning and
formulating conclusions.
User interface enables users to communicate with
the computer
Blackboard is an area of working memory set aside
for the description of a current problem.
Explanation subsystem explains its
recommendations.
Structure and Process of an Expert
System
Natural Language Processing & Voice
Technologies
Natural language processing (NLP)
Natural language understanding / speech (voice) recognition
Natural language generation/voice synthesis