Professional Documents
Culture Documents
Authors: Rainer, Turban and Potter Publisher: John Wiley & Sons, Inc.
Chapter 8
Chapter 8
Chapter 8
Chapter Outline
8.1 Transaction Processing Systems 8.2 Functional Area Management Information Systems 8.3 Enterprise Resource Planning Systems 8.4 Customer Relationship Management Systems 8.5 Supply Chain Management Systems 8.6 Electronic Data Interchange, Extranets, and Web Services
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Learning Objectives
Describe transaction processing system. Describe management information systems and the support they provide for each functional area of the organization.
Describe enterprise resource planning systems.
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Describe customer relationship management systems. Describe supply chain management systems. Discuss electronic data interchange, extranets, and Web services.
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TPSs (Continued)
Batch Processing is when the firm collects data from transactions as they occur, placing them in group 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.
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MIS Reports
Routine reports - scheduled Ad-hoc reports on demand
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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.
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CRM Applications
Customer touch point is a method of interaction with a customer, such as telephone, e-mail, a customer service or help desk, conventional mail, Web site and store. 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.
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Cross-selling refers to the marketing of complementary products to customers. Up-selling is the marketing of higher-value products or services to new or existing customers. Bundling is a type of cross-selling in which a combination of products is sold together at a lower price than the combined costs of the individual products.
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Customer Service
Customer service functions provide information and tools to make call centers, help desks and customer support staff more efficient. Customer service can take many forms and includes:
Technical and other information and services Customized products and services
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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.
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Reverse flows returned products, recycled products and disposal of materials or products.
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Uncertainties due to demand forecast, delivery times, quality problems in materials and parts that can create production delays; The need to coordinate several activities, internal units and business partners.
Bullwhip effect refers to erratic shifts in orders up and down the supply chain.
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EDI (Continued)
Business transactions messages include repetitive business transactions such as purchase orders, invoices, credit approvals, shipping notices and confirmations. Data formatting standards are used. EDI serves as a catalyst and a stimulus to improve the standard of information that flows between and among organizations.
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EDI Benefits
Minimize data entry errors Length of messages are shorter Messages are secured Reduces cycle time Increases productivity Enhances customer service Minimizes paper usage and storage
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EDI Limitations
Significant initial investment to implement Ongoing operating costs are high due to the use of expensive, private VANs Traditional EDI system is inflexible Long startup period Multiple EDI standards exist
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