Cross-Functional Information Systems

Chapter 8 Functional ApplicationsAll Sections

Chapter 7 Organizations & Information SystemsSections Q2 – Q3 (Skip Sections Q1 & Q4)

Security

Today’s Topic

Information Quality

IS Basics

E-commerce

AccessExcel

PowerPoint

Types of IS

Systems Development

Database Processing & Design

Spreadsheet Design

Business Intelligence

Functional, Crossfunctional & Interorganizational

Telecommu-nications

Hardware & Software

Functional & Cross-functional

Cross-functional

Organi-zational IS

Functional

CRM ERP & EAI

Functional Units

Problems

Understand the differences between functional and cross-functional systems.

Know the characteristics, benefits and problems associated with CRM & ERP.

Distinguish between ERP and EAI.

Objectives

Sales Operations

Manufacturing

Human Resources

Accounting

What are Functional Units?

What Problems arise from Functional Information Systems?

Data duplication, data inconsistency

Disjointed applications

What Problems arise from Functional Information Systems?

Limited information and lack of integrated information

Isolated decisions

Increased expense

Organize around integrated activities that span functional units.

Underlying business processes are changed.

Software is developed to support improved business processes.

What is Business Process Redesign (BPR)?

Customer Relationship Management (CRM)

Enterprise Resource Planning (ERP)

Enterprise Application Integration (EAI)

Cross-Functional Information Systems

A typical dissatisfied customer will tell 8-10 people about his or her experience.

75% of complaining customers will do business with the company again if it quickly takes care of a service snafu.

A company can boost profits 85% by increasing its annual customer retention by only 5%

Why is it important to manage relationships with customers?

It costs 6 times more to sell to a new customer than to sell to an existing customer.

The odds of selling a product to a new customer are 15% whereas the odds of selling a product to an existing customer are 50%.

Why is it important to manage relationships with customers?

Customer-centric philosophy

Cross-functional IS

Provides all employees with tools needed to respond to any customer need

Thorough data collection

What is Customer Relationship Management (CRM)?

“In terms of customer service, they are a revolutionary company.”

“Seamless process... Won’t have any hesitation the next time I order from them.”

“Take care of the customer no matter what. They just want to please you.”

http://www.youtube.com/watch?v=MTWLLnRS35Q

Zappos Example

What is the CRM Customer Life Cycle?

Identify, target and retain most profitable customers.

Customize products and services to each customer.

Identify customer desires.

Meet customers needs.

What are the Benefits off CRM?

Understand customers’ wants and needs

Change appropriate business processes not just IT

Prepare customers and employees for change

What Challenges Must be Overcome to Implement CRM?

Cross-functional IS

Cooperative, integrated philosophy

Centralized database

Formal approach

Very expensive

What is Enterprise Resource Planning (ERP)?

More Efficiency

Higher Quality

Lower Costs

Enterprise Agility

Better Decision-making / Higher Profits

What are the Benefits of ERP?

Project complexity

Participation by appropriate employees

User training

What Challenges Must be Overcome to Implement ERP?

Integrates existing information systems with software interfaces for the purposes of:

◦ sharing data◦ increasing communication◦ making a gradual transition to ERP

What is Enterprise Application Integration (EAI)?

Functional

• Sales• Operati

ons• Manufa

cturing• Human

Resources

• Accounting

Cross-functional

• CRM• EAI

Functional, Cross-functional & Interorganizational

ERP