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Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
CHAPTER 9
FUNCTIONAL AND ENTERPRISE SYSTEMS
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Learning Objectives Describe the role and characteristics of functional information systems State the objective and operations of transaction processing and how it is supported by IT Discuss the managerial and strategic applications in the accounting and finance areas that are supported by IT Understand the marketing and sales applications provided by IT
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Learning Objectives (continued …)
List the various production and operations management activities and describe how they are supported by IT Discuss the human resources management activities and how they can be improved by IT Discuss the need for integrating functional information systems and describe the role of ERP and supported software such as SAP
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Chapter Overview Information Systems to Support Business Functions •Characteristic of • functional • Information • Systems •Functional Support for Managers; Management Information Systems
Transaction Processing Information Systems • Tracking Business Transactions •Objectives of TPS •The Process of TPS •Modernized TPS: From Online Processing to Intranet •Typical TPS Tasks and Modules
Accounting and Finance Systems •Financial Planning and Budgeting •Investment Management •Financial Controls
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Chapter Overview (continued …) Marketing and Sales Systems •Customer Service •Telemarketing •Distribution Channels Management •Marketing Management •Ethical and Societal Issues in IT-supported Sales Activities Human Resources Management Systems •Recruitment •HRM and Development •HRM and Planning •Intranet Applications in HRS
Production and Operations Systems •Supply-Chain Management •Logistics and Materials Management •Planning Production/Operations •Automatic Design Work and Manufacturing Integrated Information Systems and Enterprise Resource Planning •Why Integrate? •How to Integrate? •Extreme Integration: Putting it All Together
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Case : Colonial Building Supply The Business Problem Needed a technology to monitor inventory and support-related decisions to provide it with current information about inventory levels and customer buying trends to show the price of the lumber fluctuates daily
The Solution integrated system Point-of-sales (POS) terminals with hand-held automatic identification and data collection devices
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Case (continued…) The Results Lower costs for data entry labor Reduction in inventory and storage space Fast access to information Better customer service Higher employee satisfaction Stay competitive Increase its market share and profitability
What have we learned from this case??
The system’s major applications are in logistics IT can be beneficial to a relatively small company An integration includes connection to business partners using the Internet
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Characteristics of Functional Information Systems Comprises of several smaller information system Specific IS applications can be integrated to form a coherent departmental function system can be completely independent can be integrated across departmental lines
Interface with each other to form the organization wide information system Interface with the environment
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Management Information Systems Provide routine information to managers in the functional areas Provide information in exception reports and ad hoc (demand) reports Business Transactions TPS
A Management Information System
Databases Internal, External
Data Warehouse
Reports Scheduled, Exception, Demand, Others Functional applications, DSS
Enterprise Application such as EIS
0
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Transaction Processing Information Systems Transaction Processing
major business processes provide the mission-critical activities transaction may generate additional transaction simple transactions large volume and repetitive transactions
Transaction Processing System (TPS) computerized information system supports the transaction processes
1
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Characteristics of TPS Large amounts of data are processed The sources of data are mostly internal, and the output is intended mainly for an internal audience The TPS processes information on a regular basis Large storage (database) capacity is required High processing speed is needed due to the high volume Input and output data are structured High level of detail is usually observable Low computation complexity is usually evident High level of accuracy, data integrity, and security is needed High processing reliability is required Inquiry processing is a must
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
2
TPS (continued…) Customer makes a purchase of an item POS Terminal
Payment Processing
Transaction File
Overview of typical transaction processing
Queries, Answers The Items’ Processing System
Master Files
Inventory File Sales Files Report
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
3
The Process of TPS Data are collected and entered automatically
Batch Processing
Online Processing
Hybrid System
Modernized TPS: from OLTP to the Internet Online Transaction Processing (OLTP) created on a client/server architecture can save money
Internet (Intranet) transaction Processing allow multimedia data transfer, fast response time, and storage of large databases of graphics and videos
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
4
Accounting & Finance Systems Financial Planning and Budgeting Financial and Economic Forecasting much of the interrelated indicators are available on the Internet many software packages conducting forecasting and planning
Planning for Cash Management build a decision support model make decisions about when and how much to refinance
Budgeting Budget 2000 and Comshare BudgetPlus are available to support budgeting and to facilitate communication among all
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
5
Accounting & Finance Systems (continued …)
Major activities
STRATEGIC SYSTEMS a. Strategic Planning b. Ratios and Financial Health c. Merger and Acquisition Analysis
INTERNAL ENVIRONMENT
TACTIAL SYSTEMS a. b. c. e. g.
Top Management Operation/ Production Marketing HRM Engineering
Budgeting Preparation and Control Investment Management Capital Budgeting d. Cost Analysis and Control Tax Management f. Auditing Financial Planning
OPERATIONAL AND TRANSACTION PROCESSING SYSTEMS a. c. d. e. g.
The General Ledger b. Sales Order Processing Accounts Payable and Receivable Receiving and Shipping Payroll f. Inventory Management Periodical Reports & Statements
EXTERNAL ENVIRONMENT IRS SEC Vendors Clients CPA Companies Suppliers Customers Business Partners
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
6
Accounting & Finance Systems (continued …)
Investment Management Access to financial and economic reports hundreds of sources for the financial and economic reports and news Financial analysis is executed with a spreadsheet program, or with commercially available, ready-made decision support software
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
7
Accounting & Finance Systems (continued …)
Financial Controls Budgetary Controls more sophisticated software attempts to tie expenditures to program accomplishment
Auditing auditing software is especially suitable when computerized information systems are audited
Financial Health Analysis supported by expert systems
Profitability Analysis and Cost Control profitability analysis software allows accurate computation of profitability for individual products and for entire organizations
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
8
Marketing & Sales Systems Distribution Channel provide the goods or services to the customer, and may extend through various intermediaries such as wholesalers and retailers
Channel Systems support all marketing linkages, such as after-sales customer support
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
9
Marketing & Sales Systems (continued ...) Manufacturing
R & D/Design COMPANY
Market Intelligence Systems
Distribution
Accounting/ Finance Dealer Systems
CHANNEL SYSTEMS Delivery Systems Sales Systems
Target Marketing Systems
Customer Support Systems
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
0
Marketing & Sales (continued ...) Customer Service Customer Profiles and Preference Analysis IT creates customer database and merges computerized lists
Mass Customization Dell computers assembles computers according to the specifications of the buyers J.C. Penny measures you and transfers the data directly to the production floor
Targeted Advertisement on the Web match appropriate ads with specific groups of customers
Customer Inquiry Systems and Automated Help Desk expert systems and intelligent agents
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
1
Marketing & Sales (continued ...) Telemarketing Five major activities which are supported by IT : advertisement and reaching customers order processing customer service sales support account management
Distribution Channels Delivery management
DSS models are used to support decisions like use own outlets or distributors, and transportation mode
Improving sales at retail stores IT reduces the long lines in stores by reengineering the checkout process
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
2
Marketing & Sales (continued ...) Marketing Management Pricing of Products or Services - online analytical processing is supporting pricing decisions
Salesperson Productivity - sales-force automation provides salespeople in the field with portable computers, access to databases, and to the web Product-Customer Profitability Analysis - a cost-accounting system identifies profitable customers and frequency Sales Analysis and Trends - geographical information system (GIS) analyzes customers and competitors and examines potential strategies New Products, Services, and Market Planning - IT evaluates large number of factors and uncertainties and conducts survey
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
3
Marketing & Sales (continued ...) Ethical and Social Issues in IT-supported Sales Activities Example of Privacy Policy : 3M Corp. Information Collection » personally identifiable information that you voluntarily provide through 3M’s website or e-mail correspondence » general information (such as the type of browser you use, the files you request, and the domain name and country from which you submit the request for information)
Use of Information » responding to your inquires » tracking orders you place with 3M » supplying you with requested information on 3M products
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
4
Production Operations & Logistics Supply-Chain Management (SCM) INFORMATION FLOW Transfer
Supplier
Transfer
Manufacturing
Transfer
Distribution
SCM plans and controls the flow of information and cash
Retail
Transfer
Retail Outlet Consumer
CASH FLOW
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
5
Production Operations & Logistics (continues …)
Logistics and Material Management Inventory Management determining how much inventory to keep what to order, from whom, when to order and how much inventory model : economic order quantity (EOQ) many low cost commercial inventory software packages
Quality Control providing information about the quality of incoming material and parts, as well as the quality of in-process semi-finished, and finished products standard quality control information systems and expert systems
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
6
Production Operations & Logistics (continues …)
Planning Production/Operations Material Requirements Planning (MRP) - facilitates the plan for acquiring parts, subassemblies, or material
Manufacturing Resource Planning (MRPII) - connects the regular MRP to other functional areas
Just-in-Time Systems - minimizes waste of all kinds, improves processes and systems, and maintains respect for all workers
Project Management - Program Evaluation and Review Technique (PERT) and Critical Path Method (CPM)
Short-Term Schedules - schedule jobs and employees on a daily or weekly basis
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
7
Production Operations & Logistics (Continues …)
Automatic Design Work and Manufacturing Computer-Aided Design (CAD) enables drawings to be constructed on a computer screen and subsequently stored, manipulated, and updated electronically
Computer-Aided Manufacturing (CAM) facilitates planning, operation, and control of production jobs
Computer-Integrated Manufacturing (CIM) concept or philosophy about the implementation of various integrated computer systems in factory automation
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
8
Human Resources Management Systems
Recruitment
finding, testing, and deciding which employees to hire Positions inventory matching open positions with available personnel allowing data to be viewed by an employee over the intranet
Employee Selection conducting interviews by video teleconferencing expediting the testing and evaluation process, assuring consistency in selection by using expert systems
Using the Internet
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
9
Human Resources Management Systems (continued …)
Human Resources Maintenance and Training and Human Resources Development Development
digital video-editing system - produces training videotapes
Performance Evaluation online evaluations - supports many decisions, ranging from rewards to transfer to layoffs
expert systems - provide an unbiased and systematic interpretation of performance over time
paperless wage system (PWS) - tracks employee review dates and automatically initiates the wage review process
Turnover, Tardiness, and Absenteeism Analyses DSS models - identifies causes and patterns
0
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Human Resources Management Systems (continued …)
Human Resources Management and Planning
Personal files and skills inventory - computerized personnel
files identify qualified employees within the company for open positions, promotion, transfer, special training programs, and layoffs Benefits administration - Networks and voice technology, or the intranets, specifying the value of each benefit and the available benefits balance of each employee Government reports - Availability of computerized personnel records greatly eases the reporting process Personnel planning - IT is used to collect, update, and process the information Succession planning and implementation - expert systems and personnel databases supporting and implementing planning Labor-Management Negotiations - DSS improve the negotiation climate and considerably reduce the time needed for reaching an agreement
1
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Human Resources Management Systems (continued …) Intranet Applications in HRM Edify Corp.’s employee service system Oracle Corp.’s flexible benefits enrollment program on the intranet Aetna health Plan’s online directory of primary care physicians, hospitals, medical services, and health information Apple Computers’ extensive education and development activities on the intranet Merck Inc.’s intranet for HR transactions
2
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Integrated Information Systems Reasons for Integration using twentieth-century computer technology, which is functionally oriented : cannot give employees all the information they need do not let different departments communicate effectively with each other in the same language crucial sales, inventory, and production data often have to be painstakingly entered manually into separate computer systems every time a person who is not a member of a specific department needs ac hoc information related to the specific department
3
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
How to Integrated Information Systems
Connect existing systems
maximize the use of existing systems and minimize the changes in them allows the addition of new applications to existing ones and the connection of systems to intranets and the Internet
Using supply chain management software
use one integrated package in one or several functional areas overcomes the isolation of the traditional departmental structure where the functional areas are separated from one another
4
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
How to Integrated Information Systems (continued …) Enterprise resource planning (ERP)
control all major business processes with a single software architecture in real time increased efficiency to improved quality, productivity, and profitability SAP software (R|3; my SAP.com) crosses functional departments and can be extended along the supply chain to both suppliers and customers composed of four major parts : accounting, manufacturing, sales and human resources
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
5
ERP SAP concept Sales Offices Central SAP Database & Servers FACTORY The factory automatically receives the sales order and can begin production.
WAREHOUSE The warehouse is simultaneously informed about the order and can schedule shipping.
ACCOUNTING Accounting gets updated sales and production data at every step of the process
HEAD QUARTERS Headquarters can tap into up-to-the-minute data on sales, inventory, and production
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
6
What’s in IT for Me? For Accounting Executing TPS effectively is a major concern of any accountant
For Finance The use of IT helps financial analysts and managers perform their difficult tasks better
For Marketing By understanding how ERP software operates, marketing people can greatly improve the software utilization by developing challenging corporate applications
7
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
What’s in IT for Me? (continued …) For Production/Operations Management Supply chain management and ERP are critical today for any medium and large manufacturing company, and for service organizations such as banks
For Human Resources Management IT can improve the efficiency and effectiveness of the HRM activities conducting training on the intranet
8
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
What’s in IT for Me? (continued …) For Human Resource Management Human resource managers utilize their corporate networks extensively for posting job openings, and use internal corporate networks to publish corporate policies, company newsletters and job openings
CHAPTER 9
FUNCTIONAL AND ENTERPRISE SYSTEMS
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Learning Objectives Describe the role and characteristics of functional information systems State the objective and operations of transaction processing and how it is supported by IT Discuss the managerial and strategic applications in the accounting and finance areas that are supported by IT Understand the marketing and sales applications provided by IT
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Learning Objectives (continued …)
List the various production and operations management activities and describe how they are supported by IT Discuss the human resources management activities and how they can be improved by IT Discuss the need for integrating functional information systems and describe the role of ERP and supported software such as SAP
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Chapter Overview Information Systems to Support Business Functions •Characteristic of • functional • Information • Systems •Functional Support for Managers; Management Information Systems
Transaction Processing Information Systems • Tracking Business Transactions •Objectives of TPS •The Process of TPS •Modernized TPS: From Online Processing to Intranet •Typical TPS Tasks and Modules
Accounting and Finance Systems •Financial Planning and Budgeting •Investment Management •Financial Controls
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Chapter Overview (continued …) Marketing and Sales Systems •Customer Service •Telemarketing •Distribution Channels Management •Marketing Management •Ethical and Societal Issues in IT-supported Sales Activities Human Resources Management Systems •Recruitment •HRM and Development •HRM and Planning •Intranet Applications in HRS
Production and Operations Systems •Supply-Chain Management •Logistics and Materials Management •Planning Production/Operations •Automatic Design Work and Manufacturing Integrated Information Systems and Enterprise Resource Planning •Why Integrate? •How to Integrate? •Extreme Integration: Putting it All Together
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Case : Colonial Building Supply The Business Problem Needed a technology to monitor inventory and support-related decisions to provide it with current information about inventory levels and customer buying trends to show the price of the lumber fluctuates daily
The Solution integrated system Point-of-sales (POS) terminals with hand-held automatic identification and data collection devices
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Case (continued…) The Results Lower costs for data entry labor Reduction in inventory and storage space Fast access to information Better customer service Higher employee satisfaction Stay competitive Increase its market share and profitability
What have we learned from this case??
The system’s major applications are in logistics IT can be beneficial to a relatively small company An integration includes connection to business partners using the Internet
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Characteristics of Functional Information Systems Comprises of several smaller information system Specific IS applications can be integrated to form a coherent departmental function system can be completely independent can be integrated across departmental lines
Interface with each other to form the organization wide information system Interface with the environment
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Management Information Systems Provide routine information to managers in the functional areas Provide information in exception reports and ad hoc (demand) reports Business Transactions TPS
A Management Information System
Databases Internal, External
Data Warehouse
Reports Scheduled, Exception, Demand, Others Functional applications, DSS
Enterprise Application such as EIS
0
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Transaction Processing Information Systems Transaction Processing
major business processes provide the mission-critical activities transaction may generate additional transaction simple transactions large volume and repetitive transactions
Transaction Processing System (TPS) computerized information system supports the transaction processes
1
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Characteristics of TPS Large amounts of data are processed The sources of data are mostly internal, and the output is intended mainly for an internal audience The TPS processes information on a regular basis Large storage (database) capacity is required High processing speed is needed due to the high volume Input and output data are structured High level of detail is usually observable Low computation complexity is usually evident High level of accuracy, data integrity, and security is needed High processing reliability is required Inquiry processing is a must
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
2
TPS (continued…) Customer makes a purchase of an item POS Terminal
Payment Processing
Transaction File
Overview of typical transaction processing
Queries, Answers The Items’ Processing System
Master Files
Inventory File Sales Files Report
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
3
The Process of TPS Data are collected and entered automatically
Batch Processing
Online Processing
Hybrid System
Modernized TPS: from OLTP to the Internet Online Transaction Processing (OLTP) created on a client/server architecture can save money
Internet (Intranet) transaction Processing allow multimedia data transfer, fast response time, and storage of large databases of graphics and videos
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
4
Accounting & Finance Systems Financial Planning and Budgeting Financial and Economic Forecasting much of the interrelated indicators are available on the Internet many software packages conducting forecasting and planning
Planning for Cash Management build a decision support model make decisions about when and how much to refinance
Budgeting Budget 2000 and Comshare BudgetPlus are available to support budgeting and to facilitate communication among all
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
5
Accounting & Finance Systems (continued …)
Major activities
STRATEGIC SYSTEMS a. Strategic Planning b. Ratios and Financial Health c. Merger and Acquisition Analysis
INTERNAL ENVIRONMENT
TACTIAL SYSTEMS a. b. c. e. g.
Top Management Operation/ Production Marketing HRM Engineering
Budgeting Preparation and Control Investment Management Capital Budgeting d. Cost Analysis and Control Tax Management f. Auditing Financial Planning
OPERATIONAL AND TRANSACTION PROCESSING SYSTEMS a. c. d. e. g.
The General Ledger b. Sales Order Processing Accounts Payable and Receivable Receiving and Shipping Payroll f. Inventory Management Periodical Reports & Statements
EXTERNAL ENVIRONMENT IRS SEC Vendors Clients CPA Companies Suppliers Customers Business Partners
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
6
Accounting & Finance Systems (continued …)
Investment Management Access to financial and economic reports hundreds of sources for the financial and economic reports and news Financial analysis is executed with a spreadsheet program, or with commercially available, ready-made decision support software
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
7
Accounting & Finance Systems (continued …)
Financial Controls Budgetary Controls more sophisticated software attempts to tie expenditures to program accomplishment
Auditing auditing software is especially suitable when computerized information systems are audited
Financial Health Analysis supported by expert systems
Profitability Analysis and Cost Control profitability analysis software allows accurate computation of profitability for individual products and for entire organizations
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
8
Marketing & Sales Systems Distribution Channel provide the goods or services to the customer, and may extend through various intermediaries such as wholesalers and retailers
Channel Systems support all marketing linkages, such as after-sales customer support
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
9
Marketing & Sales Systems (continued ...) Manufacturing
R & D/Design COMPANY
Market Intelligence Systems
Distribution
Accounting/ Finance Dealer Systems
CHANNEL SYSTEMS Delivery Systems Sales Systems
Target Marketing Systems
Customer Support Systems
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
0
Marketing & Sales (continued ...) Customer Service Customer Profiles and Preference Analysis IT creates customer database and merges computerized lists
Mass Customization Dell computers assembles computers according to the specifications of the buyers J.C. Penny measures you and transfers the data directly to the production floor
Targeted Advertisement on the Web match appropriate ads with specific groups of customers
Customer Inquiry Systems and Automated Help Desk expert systems and intelligent agents
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
1
Marketing & Sales (continued ...) Telemarketing Five major activities which are supported by IT : advertisement and reaching customers order processing customer service sales support account management
Distribution Channels Delivery management
DSS models are used to support decisions like use own outlets or distributors, and transportation mode
Improving sales at retail stores IT reduces the long lines in stores by reengineering the checkout process
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
2
Marketing & Sales (continued ...) Marketing Management Pricing of Products or Services - online analytical processing is supporting pricing decisions
Salesperson Productivity - sales-force automation provides salespeople in the field with portable computers, access to databases, and to the web Product-Customer Profitability Analysis - a cost-accounting system identifies profitable customers and frequency Sales Analysis and Trends - geographical information system (GIS) analyzes customers and competitors and examines potential strategies New Products, Services, and Market Planning - IT evaluates large number of factors and uncertainties and conducts survey
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
3
Marketing & Sales (continued ...) Ethical and Social Issues in IT-supported Sales Activities Example of Privacy Policy : 3M Corp. Information Collection » personally identifiable information that you voluntarily provide through 3M’s website or e-mail correspondence » general information (such as the type of browser you use, the files you request, and the domain name and country from which you submit the request for information)
Use of Information » responding to your inquires » tracking orders you place with 3M » supplying you with requested information on 3M products
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
4
Production Operations & Logistics Supply-Chain Management (SCM) INFORMATION FLOW Transfer
Supplier
Transfer
Manufacturing
Transfer
Distribution
SCM plans and controls the flow of information and cash
Retail
Transfer
Retail Outlet Consumer
CASH FLOW
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
5
Production Operations & Logistics (continues …)
Logistics and Material Management Inventory Management determining how much inventory to keep what to order, from whom, when to order and how much inventory model : economic order quantity (EOQ) many low cost commercial inventory software packages
Quality Control providing information about the quality of incoming material and parts, as well as the quality of in-process semi-finished, and finished products standard quality control information systems and expert systems
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
6
Production Operations & Logistics (continues …)
Planning Production/Operations Material Requirements Planning (MRP) - facilitates the plan for acquiring parts, subassemblies, or material
Manufacturing Resource Planning (MRPII) - connects the regular MRP to other functional areas
Just-in-Time Systems - minimizes waste of all kinds, improves processes and systems, and maintains respect for all workers
Project Management - Program Evaluation and Review Technique (PERT) and Critical Path Method (CPM)
Short-Term Schedules - schedule jobs and employees on a daily or weekly basis
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
7
Production Operations & Logistics (Continues …)
Automatic Design Work and Manufacturing Computer-Aided Design (CAD) enables drawings to be constructed on a computer screen and subsequently stored, manipulated, and updated electronically
Computer-Aided Manufacturing (CAM) facilitates planning, operation, and control of production jobs
Computer-Integrated Manufacturing (CIM) concept or philosophy about the implementation of various integrated computer systems in factory automation
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
8
Human Resources Management Systems
Recruitment
finding, testing, and deciding which employees to hire Positions inventory matching open positions with available personnel allowing data to be viewed by an employee over the intranet
Employee Selection conducting interviews by video teleconferencing expediting the testing and evaluation process, assuring consistency in selection by using expert systems
Using the Internet
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
9
Human Resources Management Systems (continued …)
Human Resources Maintenance and Training and Human Resources Development Development
digital video-editing system - produces training videotapes
Performance Evaluation online evaluations - supports many decisions, ranging from rewards to transfer to layoffs
expert systems - provide an unbiased and systematic interpretation of performance over time
paperless wage system (PWS) - tracks employee review dates and automatically initiates the wage review process
Turnover, Tardiness, and Absenteeism Analyses DSS models - identifies causes and patterns
0
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Human Resources Management Systems (continued …)
Human Resources Management and Planning
Personal files and skills inventory - computerized personnel
files identify qualified employees within the company for open positions, promotion, transfer, special training programs, and layoffs Benefits administration - Networks and voice technology, or the intranets, specifying the value of each benefit and the available benefits balance of each employee Government reports - Availability of computerized personnel records greatly eases the reporting process Personnel planning - IT is used to collect, update, and process the information Succession planning and implementation - expert systems and personnel databases supporting and implementing planning Labor-Management Negotiations - DSS improve the negotiation climate and considerably reduce the time needed for reaching an agreement
1
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Human Resources Management Systems (continued …) Intranet Applications in HRM Edify Corp.’s employee service system Oracle Corp.’s flexible benefits enrollment program on the intranet Aetna health Plan’s online directory of primary care physicians, hospitals, medical services, and health information Apple Computers’ extensive education and development activities on the intranet Merck Inc.’s intranet for HR transactions
2
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
Integrated Information Systems Reasons for Integration using twentieth-century computer technology, which is functionally oriented : cannot give employees all the information they need do not let different departments communicate effectively with each other in the same language crucial sales, inventory, and production data often have to be painstakingly entered manually into separate computer systems every time a person who is not a member of a specific department needs ac hoc information related to the specific department
3
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
How to Integrated Information Systems
Connect existing systems
maximize the use of existing systems and minimize the changes in them allows the addition of new applications to existing ones and the connection of systems to intranets and the Internet
Using supply chain management software
use one integrated package in one or several functional areas overcomes the isolation of the traditional departmental structure where the functional areas are separated from one another
4
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
How to Integrated Information Systems (continued …) Enterprise resource planning (ERP)
control all major business processes with a single software architecture in real time increased efficiency to improved quality, productivity, and profitability SAP software (R|3; my SAP.com) crosses functional departments and can be extended along the supply chain to both suppliers and customers composed of four major parts : accounting, manufacturing, sales and human resources
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
5
ERP SAP concept Sales Offices Central SAP Database & Servers FACTORY The factory automatically receives the sales order and can begin production.
WAREHOUSE The warehouse is simultaneously informed about the order and can schedule shipping.
ACCOUNTING Accounting gets updated sales and production data at every step of the process
HEAD QUARTERS Headquarters can tap into up-to-the-minute data on sales, inventory, and production
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
6
What’s in IT for Me? For Accounting Executing TPS effectively is a major concern of any accountant
For Finance The use of IT helps financial analysts and managers perform their difficult tasks better
For Marketing By understanding how ERP software operates, marketing people can greatly improve the software utilization by developing challenging corporate applications
7
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
What’s in IT for Me? (continued …) For Production/Operations Management Supply chain management and ERP are critical today for any medium and large manufacturing company, and for service organizations such as banks
For Human Resources Management IT can improve the efficiency and effectiveness of the HRM activities conducting training on the intranet
8
Introduction to Information Technology Turban, Rainer and Potter Chapter 9 Functional and Enterprise Systems
What’s in IT for Me? (continued …) For Human Resource Management Human resource managers utilize their corporate networks extensively for posting job openings, and use internal corporate networks to publish corporate policies, company newsletters and job openings
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