Term
| Evolution of the 3 categories of IS |
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Definition
Calculations systems
Functional systems
Integrated systems |
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Term
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Definition
Eliminate tedious human calculations
Lavor-saving devices
Produce little info
e.g. payroll; general ledger; inventory |
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Term
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Definition
Facilitated the work of single department/function
Functions added to calculation system programs to provide more value e.g. payroll expanded to HR
Works independently from each other
- Inefficient working in cooperation with other processes across entire business
[Because of working independently -- sometimes refer to as functional silos] |
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Term
| Integrated/Cross Functional Systems |
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Definition
- Operate across departmental boundaries
- Increased functionality to support business process |
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Term
| Basic Types of Functional Systems |
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Definition
Marketing
Production
HR
Account and Finance |
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Term
| Marketing and Sales Systems |
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Definition
IS that support marketing and sales efforts
- PM
-- assess product marketing efforts
-- sales forecasting to assess customer demand and plan marketing strategies
- customer management
-- generate follow-on business
-- lead tracking to manage potential and existing customers |
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Term
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Definition
- Used by non-manufacturing companies
- Important operations systems
-- Order entry
-- Order management
-- Inventory management
-- Customer service |
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Term
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Definition
- Used by companies that transform materials into products
- Support production and planning (2 types)
-- push production planning
--- organization creates sched. and pushes goods
through manufacturing and sales
-- pull production planning
--- responds to customer demand
--- reduction in inventory triggers production
- Scheduling systems - help organizations to determine the optimal methods
- Manufacturing operations systems - control manufacturing plans and machines |
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Term
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Definition
Designed to manage:
- payroll
- compensation
- recruiting
- assessing employee performance, skills, and training
- HR planning |
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Term
| Accounting and Finance Systems |
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Definition
Support organization's account activities:
- General ledger (recording transactions)
- Financial reporting
- Accounts receivable
- Accounts payable
- Cost accounting
- Budgeting
- Cash management
- Treasury management |
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Term
| Problems with functional systems |
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Definition
Data duplication
- results from each application having their own database
Business processes disjointed across functions (silos)
- produces lack of integrated enterprise info cuz of limited info available at any one source
Inefficient decisions
- operationally, tactically, and strategically
- because it is based on limited knowledge
[INCREASED OVERALL COSTS AND LOST OPPORTUNITIES TO ORGANIZATIONS] |
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Term
| Business process design/redesign |
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Definition
| Central idea: Organization should not simply automate or improve existing functional systems |
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Term
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Definition
| Process of making efficient what already exists because while it makes things easier, it does not fundamentally change the way things are done |
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Term
| Challenges of Business Process Design |
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Definition
Expensive and difficult
Time consuming
Emmployees may resist change
Ultimate outcome is uncertain |
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Term
| Benefits of Industry Standard Processes |
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Definition
Software vendors designed integrated applications with built-in industry standard processes
- integrate activities across departments
- save costs of tailor-made process design
e.g. Oracle, SAP |
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Term
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Definition
Designed to overcome problems in functional systems
e.g. CRM (Customer Relationship Management); ERP (Enterprise Resource Planning) |
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Term
| CRM (Customer Relationship Management) |
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Definition
- Support the business processes of attracting, selling, managing, delivering and supporting customers
- Direct value chain activities that involve the customer
- Integrates four phases of the customer life cycle: marketing, customer acquisition, relationship management and loss/churn
- All customer data stored in single database |
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Term
| ERP (Enterprise Resource Planning) |
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Definition
- Support all the primary business processes as well as HR and Accounting support processes
- Enterprise-wide systems that integrate sales, order inventory, manufacturing and customer service activities |
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Term
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Definition
- Provides cross-functional, process view of organization
- Has a formal approach based on formal business models
- Maintains data in centralized database
- Offers large benefits but is difficult fraught with challenges and can be slow to implement
- Often VERY expensive |
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Term
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Definition
Efficient business processes
Inventory reduction
Lead-time reduction
Improved customer service
Greater, real-time insight into organization
Higher profitability |
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Term
| Inter-organizational systems |
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Definition
Cross-organizational system
- involve selling and purchasing
- integrate multiple-company operations |
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Term
| Types of Inter-Organizational Systems |
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Definition
E-commerce
SCM (Supply chain Management) |
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Term
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Definition
Busing and selling of goods and services over public and private computer networks
- Merchant companies
-- that take title to the goods they sell
-- buy goods and resell them
-- sell services that they provide
(e.g. Business-to-consumer (B2C), business-to-business (B2B), business-to-government (B2G))
- Non-merchant companies
-- arrange for the purchase and sale of goods w/o ever owning or taking title to those goods
-- sell services provided by others
(e.g. Auctions, Clearinghouses - provide goods and services at a stated price and arrange for delivery of the goods but never take the title, Exchanges - match buyers and sellers) |
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Term
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Definition
Used to describe applications and platforms on the web
Focuses on providing services (not simply software applications)
Recognizes the importance of the user as a part of the system, providing data and info that makes the service better
Creation of unique and difficult-todevelop data improves large numbers of people use the system |
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Term
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Definition
Greater market efficiency (Customer side)
- Disintermediation: eliminate middlemen
- Increased information on price and terms: enables customers to pay the lowest price and serves to ultimately remove inefficient vendors
Knowledge of price elasticity (Seller side)
- Losing-bidder auction prices -> shape of the price elasticity curve [customers' willingness to pay at a certain $]
- Price experimentation
- More accurate information obtained directly from customers : better info with direct interaction than managing prices by watching competitors' pricing |
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Term
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Definition
- Channel Conflict (retailer and manufacturer)
- Price conflict (retailer and manufacturer)
- Logistics expense (set up a specific department for specific actions)
- Customer service expense (concerned about "all" customer issues) |
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Term
| SCM (Supply chain management) |
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Definition
| Inter-organizational systems that enable companies to efficiently handle the flow of good from suppliers to customers |
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Term
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Definition
| Network of organizations and facilities that transforms raw material into products delivered to customers |
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Term
| 4 major factors that affect supply chain performance |
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Definition
| facilities, inventory, transportation and information |
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Term
| 3 fundamental information systems involve in Supply Chain Management |
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Definition
1. SRM (Supplier relationship management)
2. CRM (Customer relationship management)
3. Inventory |
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Term
| SRM (Supplier relationship management) |
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Definition
Business process for managing all contacts between an organization and its suppliers
Supplier is any organization that sells something to the organization that has the SRM application
Supports both the in-bound logistics primary activity and the procurement support activity
Support basic business processes
- source, purchase, and settle |
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Term
| Benefits of Information Systems on Supply Chain Performance |
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Definition
- Reduce costs of buying and selling
- Increase supply chain speed
- Reduce size and cost of inventories
- Improve delivery scheduling - enable JIT (Just-in-time)
- Full bullwhip effect
- Do not optimize supply chain profitability |
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