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Chapter 3b: Business Functions and Supply Chains(p101-115)

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Title: Chapter 1 (MIS by Oz and Jones) Author: P5143 Last modified by: F Nel Created Date: 3/14/2010 11:24:25 AM Document presentation format: On-screen Show (4:3) – PowerPoint PPT presentation

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Title: Chapter 3b: Business Functions and Supply Chains(p101-115)


1
Chapter 3b Business Functions and Supply
Chains(p101-115)
  • Business Functions
  • CRM,
  • HR,
  • Supply Chain ? ERP

2
Revision
  • Page 15
  • Each business function is like a puzzle piece.
    Each piece is important and should fit well with
    adjacent pieces, but the entire picture should
    always be kept in view.
  • OR One of an ISs most important contributions
    to the sound workings of an organization is the
    automation of information exchange among
    subsystems ? ERP

3
Revision (continued)
  • Example Customers orders taken via the web site
    by the Sales Department, should be AUTOMATICALLY
    routed to the
  • Manufacturing and
  • Shipping units
  • And processed by their OWN IS for their specific
    purpose.

4
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5
Introduction to CRM
  • No company can survive without selling its
    products or services
  • Providing products that customers want
  • Marketing efforts to pinpoint demographic groups,
    features that consumers desire
  • Providing efficient/effective ways to execute a
    sale to a customer
  • IS support the sale effort ? IS support customer
    services

6
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7
CRM
  • Customer Relationship Management supporting
    relationships with customers
  • Supports three areas
  • Marketing
  • Sales
  • Customer service

8
Market Research
  • To promote products successfully, organizations
    must perform market research
  • Market research discover populations and regions
    that are most likely to purchase product
  • Conduct interviews with consumers and retailers
  • Statistical models predict sales volumes of
    different products

9
Targeted Marketing
  • Targeted Marketing promote to people most likely
    to purchase products
  • Principle to define the prospective customer as
    accurately as possible
  • Can direct promotional spending to customers most
    likely to buy your products
  • Internet Mass communication of unsolicited
    promotional email ? SPAM

10
Marketing (continued)
  • To define target markets companies collect data
  • Sales transactions
  • Loyalty cards
  • Buy databases with info about organizations/indivi
    dual
  • Database technology manipulate data pools
  • Sort and categorize consumers by
  • Age, gender, income, previous purchases of
    related products, or other combinations

11
Marketing (continued)
  • With this vast information, corporations can
    prepare electronic dossiers on the
  • Interest
  • Tastes
  • Buying habits of customers
  • Market of one

12
Marketing (continued)p104
  • Telemarketing marketing over the telephone
  • PC connected to large database
  • Computer telephony integration allows computer
    to use telephone line as input
  • Data mining using large data warehouses to find
    trends on consumer habits
  • Set-top box.personalize marketing

13
Customer Service
  • Web-based customer service provides automated
    customer service 24/7
  • Saves labor costs
  • Saves paper costs
  • Let customers pay their bills electronically
    invoice to payment cycle is 41days, now it is 6
    days

14
Customer Service (continued)
  • Artificial intelligence used to emulate a
    real-life customer service representative for FAQ
  • Sales force automation
  • Equips traveling salespeople with information
    technology (example PDA)
  • Makes sales presentations more efficient
  • Let salespeople present different options for
    products and services on net

15
Human Resource Management
  • Employee record management
  • Promotion and recruitment
  • Training
  • Evaluation
  • Compensation and benefits management

16
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17
Employee Record Management
  • Keep personnel records to satisfy laws
  • Payroll and tax calculation
  • Human Resource information systems are now
    digitized
  • Saves space, time and costs

18
Promotion and Recruitment
  • Select best-qualified person for position
  • Selection process automated with IS
  • Intranet inter-organizational network that
    supports Web applications
  • Helps HR manager post position vacancy
    announcements
  • Automated recruiting and selection software saves
    costs of publishing ads

19
Training
  • Improving employee skills
  • Multimedia software training replacing classrooms
    and teachers
  • Training software emulates situations where
    employee must act
  • Information technology reduces training costs
    dramatically

20
Evaluation
  • Employee ability must be periodically evaluated
    by supervisors
  • Often is a subjective process, which is a problem
  • Evaluation software tries to solve this problem
    by standardizing evaluation process
  • Provide tools to aid in fairly evaluating every
    employee

21
Compensation and Benefits Management
  • Compensation includes salary, hourly pay, and
    bonus
  • Programs calculate pay and taxes
  • Automatically generates pay slips and performs
    direct deposits
  • Programs help manage benefits
  • Benefits database accessible through intranet

22
Inter-organizational Supply Chain Management
Systemsp111-115
  • Inventory is decreasing while gross domestic
    product is increasing
  • Money saved from inventory can be spent elsewhere
  • Reduction in inventory attributed to supply chain
    management systems
  • Streamline operations throughout chain
  • Newer SCM systems connect multiple organizations

23
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24
The Importance of Trust
  • Supply chain systems work best when all
    businesses are sharing information
  • Trust between allied companies facilitates
    collaboration
  • Nissan UK parts come from UK and Europe, and the
    systems are linked to Nissans Production Control
    System
  • 97 of parts are delivered on time
  • 98 of cars are completed well within time

25
Distrust
  • Risk of disclosing important figures is present,
    like taking advantage of demand figures
  • If Comp A buys from Comp B and has access to Comp
    Bs demand figures, it might disclose the
    information to competitors, stirring competition
    forcing prices down!
  • GM and Goodyear
  • Goodyear can have lower inventory if it knows the
    demand schedule for tyres.

26
Goodyear
  • It could then calibrate its own order for raw
    materials
  • Manufacturing capacity to suit GM
  • Save money and pass some of the savings to its
    client in the form of cheaper products
  • It could replenish the clients inventory of
    tyres before GM run out of them OR
  • It could deliver it straight to the assembly
    line, just as needed and save warehouse costs!

27
The Musical Chairs of Inventory
  • Small enterprises do not use SCM systems
  • Affects more powerful organization that small
    enterprise is linked to
  • Inventory turns the number of times the business
    sells its inventory per year
  • Sales revenue/average value of inventory
  • Example
  • GM has an increase of 55
  • Goodyear decreased in the same period by 21

28
Why?
  • GM avoided buying tyres from Goodyear until they
    needed them on the assembly line
  • Goodyear did not have that information when the
    tyres will be needed and kept overstock!
  • When SCM of companies are not linked, supplier
    requirements unknown so companies must overstock
    inventory
  • One company sits with lean inventory while other
    stands, hence musical chairs

29
Collaborative Logistics
  • Web allows organizations from different
    industries to collaborate
  • Businesses combine freight, sharing trucks
  • Optimize logistics by connecting SCM systems
  • SCM systems help collaborative warehousing
  • Share warehouse space

30
Enterprise Resource PlanningStudy p115
  • Replace old, disparate information systems with
    enterprise applications, supporting all or most
    of the business activities.
  • Enterprise resource planning manages daily
    operations
  • Complex
  • Require special tailoring for specific
    organizations
  • Relatively expensive

31
Summary
  • Effectiveness is the degree to which a task is
    accomplished
  • Efficiency is the ratio of output to input
  • Productivity is the measure of peoples
    efficiency
  • Information systems have been integrated into
    accounting services
  • Financial information systems help managers track
    cash

32
Summary (continued)
  • Computer-aided design systems help engineers
    design new projects
  • Computer-aided manufacturing systems direct
    machines that assemble parts
  • Supply chain management systems optimize
    workload, speed, and cost in supply chains
  • Customer relationship management includes the
    entire cycle of relationships with customers

33
Summary (continued)
  • Human resource management systems facilitate
    staff selection and record keeping
  • Multiple companies SCM systems can be linked,
    facilitating cooperation, which requires trust
  • Installing an enterprise resource planning system
    can encompass all business processes
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