TRANSACTION PROCESSING SYSTEMS MANAGEMENT INFORMATION SYSTEMS (MIS) These systems access, organize, summarize, and displayed information

for supporting routine decision making in the functional areas. Geared toward middle managers, MIS are characterized mainly by their ability to produce periodic reports such as a daily list of employees and the hours they work, or a monthly report of expenses as compared to a budget Typical uses would be in Replenishment, Pricing Analysis (Markdowns) and Sales Management Decisions supported are more structured. Primary purpose to process data into information DECISION SUPPORT SYSTEMS (DSS) These systems support complex non-routine decisions. Primary purpose to process data into information DSS systems are typically employed by tactical level management whose decisions and what-if analysis are less structured. This information system not only presents the results but also expands the information with alternatives. Some DSS methodologies Mathematical Modeling Simulation Queries What-If (OLAP-Cubes) Data mining INTELLIGENT SUPPORT SYSTEMS (ISS) Essentially, artificial intelligence (AI) these systems perform intelligent problem solving. One application of AI is expert systems. Expert systems (ESs) provide the stored knowledge of experts to nonexperts, so the latter can solve difficult or timeconsuming problems. These advisory systems differ from TPS, which centered on data, and from MIS and DSS, which concentrated on processing information. With DSS, users make their decisions according to the information generated from the systems. With ES, the system makes recommended decisions for the users based on the built-in expertise and knowledge. Executive Support Systems (ESS) ESS systems or Enterprise Information Systems (EIS) originally were implemented to support Senior management. These systems have been expanded to support other managers within the enterprise. At the senior management level they support Strategic activities which deal with situations that significantly may change the manner in which business is done. Characteristics:drill down,CFI&KPI,status access mode,trend analysis,exception reporting,integration wid DSS. Office Automation Systems (OAS)

new knowledge (External Content) for the organization and integrating it with existing knowledge (Internal Content).

KMS that support these knowledge workers range from Internet search engines and expert systems, to Webbased computer-aided design and sophisticated data management systems

Supply Chain Coordination and Collaboration Supply Chain Teams Performance Measurement and Metrics Various IT-Assisted Solutions (wireless technology, optimal shipping plans, strategic partnerships with suppliers, just-in-time) Computerized Supply Chains The supply chain process is intertwined with the computerization of its activities. People have wanted to automate the processes along the chain to reduce cost, expedite processing, and reduce errors.

Material requirements planning (MRP) Manufacturing resource planning (MRP

II), enhanced MRP methodology by adding labor requirements and financial planning.

SUPPLY CHAIN A supply chain is a concept describing the flow of materials, information, money, and services from raw material suppliers through factories and warehouses (Value chain) to the end customers (Demand chain). It includes tasks such as purchasing, payment flow, materials handling, production planning & control, logistics & warehousing, inventory control, and distribution. When it is managed electronically it is referred to as an e-supply chain. Supply chain flows materials flows are all physical products, new materials and supplies that flow along the chain information flow relates to all data associated with demand, shipment, orders, returns and schedules financial flows include all transfers of money, payments, credit card information, payment schedules, e-payments and creditrelated data Supply chains contribute to increased profitability and competitiveness Components of the Supply Chain

essentially integrates production, purchasing, and inventory management of interrelated products.

resource planning (ERP) further integrates the transaction processing as well as other routine activities in the entire enterprise. Integrations continues along several paths (Functional areas, Combining transaction processing and decision support, Business intelligence, CRM software) Supply Chains Benefits

Enterprise

1.

Tangible benefits:

1.

The upstream supply

chain. This part of the supply chain includes the activities of a company with its first-tier suppliers (which can be manufacturers and/or assemblers) and their connection to their second-tier suppliers. The relationship can be extended al the way to the origin of the raw material. The major activity is sourcing and procurement. Therefore, IT has the role to improve procurement activities and relationships with suppliers. This can be achieved by using e-procurement, which results in major savings and improvements in buyer-seller relationships. Relationships with suppliers can also be improved by using a supplier-portal and other supplier-relationship IT tools.

2.

The

internal

supply

chain. This part includes all of the in-house processes used in transforming the inputs received from the suppliers into the organizations outputs. It extends from the time the inputs go into an organization to the time products go to distribution outside the organization. The major activities are production management, manufacturing, and inventory control. IT supports these activities through TPS, ERP, and all the Functional IS.

3.

The

downstream

Electronic communication is only one aspect of what is now known as an office automation system (OAS). Other aspects include word processing systems, document management systems and desktop publishing systems.

OAS systems are predominantly used by clerical workers who support managers at all levels. Among clerical workers, those who use, manipulate, or disseminate information are referred to as data workers. Knowledge Management Systems (KMS)

An additional level of staff support now exists between top and middle management. These are professional people, such as financial and marketing analysts that act as advisors and assistants to both top and middle management. They are responsible for finding or developing

supply chain. This part includes all the activities involved in delivering the products to the final customers. The major activities are distribution, warehousing, transportation and after-sale services. IT supports the downstream in two areas: IT supports order taking and shipments to the customers; IT supports CRM activities. Supply chains classifications * integrated made-to-stock * continuous replenishment * build-to-order * channel assembly Supply Chain Problems Adding value along the chain is essential for competitiveness, however problems exist especially in complex or long chains and in cases where many business partners are involved. These problems are due to uncertainties and the need to coordinate several activities, internal units, and business partners. Demand forecasts are a major source of uncertainties (Competition, Prices, Weather conditions, Technological development, Customer confidence) Uncertainties exist in delivery times (Machine failures, Road conditions, Shipments) Quality problems may also create production delays The bullwhip effect refers to erratic shifts in orders up and down the supply chain because of poor demand forecasting, price fluctuation, order batching, and rationing within the chain. A common way to solve the bullwhip problem is by sharing information along the supply chain through EDI, extranets, and groupware technologies. For example employing a vendor-managed inventory (VMI) strategy, the vendor monitors inventory levels and when it falls below the threshold for each product this automatically triggers an immediate shipment. Supply Chain Solutions Information sharing among supply chain partners (c-commerce) sometimes referred to as the collaboration supply chain is one method to overcome problems in the flow. Others are: Optimal Inventory Levels

Inventory reduction Personnel reduction Productivity improvement Order management improvement Financial-close cycle improvements IT cost reduction Procurement cost reduction Cash management improvements Revenue/profit increases Transportation logistics cost reduction Maintenance reduction On-time delivery improvement. 2. Intangible benefits: Information visibility New/improved processes Customer responsiveness Standardization Flexibility Globalization Business performance Reduction in duplication of entries controls and reconciliation are enhanced rapid assimilation of data into the organization Systems can be integrated internally and externally. Internal integration refers to integration between applications inside a company, whereas external integration refers to integration of applications among business partners. ENTERPRISE RESOURCE PLANNING (ERP) ERP or enterprise systems control all major business processes with a single software architecture in real time. It is comprised of a set of applications that automate routine back-end operations such as: financial management, inventory management, scheduling, order fulfillment, cost control, accounts payable and receivable It includes front-end operations such as: POS, Field Sales, and Service It also increases efficiency, improves quality, productivity, and profitability. Functions of ERP * provides a single interface for managing routine manufacturing activities * facilitates customer interaction & manages relationships with suppliers & vendors * forces discipline & organization around business * supports administrative activities E-commerce and Supply Chains A major role of EC is to facilitate buying and selling along all segments of the supply chain. * upstream activities improve the upstream supply chain through e-procurement * internal supply activities from entering purchase orders, to record sales, to order fulfillment, to tracking shipments, are usually conducted over a corporate intranet * downstream activities enhance the activity downstream activities by providing online ordering * vertical exchanges combine upstream and downstream EC supply chain activities. These B2B exchanges, provide a medium where buyers and sellers can meet. Partner Relationship Management Every company that has business partners has to manage the relationships with them. Information needs to flow between the firms and constantly updated and shared. * Manual methods include; phone, fax, and mail * EDI is typically used by large corporations * EC PRM functions include: - partner profiles - partner communications - lead management (of clients) - targeted information distribution - connecting the extended enterprise - partner planning - centralized forecasting - group planning - e-mail - price lists Global Supply Chains Supply chains that involve suppliers and/or customers in other countries are referred to as global supply chains. Companies go global (disperse the value chain) for a variety of reasons. * lower costs of materials, products, services and labor * availability of products that are unavailable domestically * the firm's global strategy * technology available in other countries * high quality of products

* intensification of global competition * the need to develop a foreign presence to increase sales * fulfillment of counter trade. Global supply chains are usually longer than domestic ones, and more complex. Therefore, additional uncertainties are likely. Inter-Organizational Systems (IOS) IOS are systems that connect two or more organizations. These systems are common among business partners and play a major role in ecommerce, as well as in supply chain management support. The first type of IT system that was developed in the 1980s to improve communications with business partners was electronic data interchange (EDI), which involved computer-to-computer direct communication of standard business documents (such as purchase orders and order confirmations) between business partners. These systems became the basis for electronic markets, that later developed to electronic commerce. Web-based systems (many using XML) deliver business applications via the Internet. Using browsers and the Internet, people in different organizations communicate, collaborate, access vast amounts of information, and run most of the organizations tasks and processes. Extranets Connect several intranets via the Internet, by adding a security mechanism and some additional functionalities They form a larger virtual network that allows remote users (such as business partners or mobile employees) to securely connect over the Internet to the enterprises main intranet. Extranets are also employed by two or more enterprises (suppliers & buyers) to share information in a controlled fashion, and therefore they play a major role in the development of business-to-business electronic commerce and Supply Chain systems. Managing Information Systems Information Systems have enormous strategic value so when they are not working even for a short time, an organization cannot function. Furthermore, the Life Cycle Costs (acquisition, operation, security, and maintenance) of these systems is considerable. Therefore, it is essential to manage them properly. The planning, organizing, implementing, operating, and controlling of the infrastructures and the organizations portfolio of applications must be done with great skill. The responsibility for the management of information resources is divided between two organizational entities: * the information systems department (ISD), which is a corporate entity * the end users, who are scattered throughout the organization. STRATEGIC INFORMATION SYSTEM Provide organizations with strategic advantages that enable them to increase their market share and/or profit, to better negotiate with suppliers, and to keep competitors away. A major challenge is to sustain such strategic advantage because the competitors will try to duplicate the system. (ex. Web-based systems) Any information system EIS, OIS, TPS, KMS that changes the goals, processes, products, or environmental relationships to help an organization gain a competitive advantage or reduce competitive disadvantage. Competitive advantage * An advantage over competitors in some measure such as cost, quality or speed * A difference in the Value Chain Data Improving Core Competency * Employee productivity * Operational efficiency Outwardly focused SIS * aimed at increasing direct competition in an industry * it is visible to all * the focus is on customers/suppliers with the objective to achieve better results than the competitors. Inwardly focused SIS * it might not be visible to the competitors and thus, hard to copy * the focus is on enhancing the competitive position of the company by increasing employees productivity, making better decisions, and making business processes more simple and efficient Strategic Management Strategic management is the way an organization maps or crafts the strategy of its future operations. Information Technology Supports Strategic Management Innovative applications: Create innovative applications that provide direct strategic advantage to organizations. Competitive weapons: Information systems themselves are recognized as a competitive weapon Changes in processes: IT supports changes in business processes that translate to strategic advantage Links with business partners: IT links a company with its business partners effectively and efficiently. Cost reductions: IT enables companies to reduce costs. Relationships with suppliers and customers: IT can be used to lock in suppliers and customers, or to build in switching costs. New products: A firm can leverage its investment in IT to create new products that are in demand in the marketplace. Competitive intelligence: IT provides competitive (business) intelligence by collecting and analyzing information about products, markets, competitors, and environmental changes. PORTERS COMPETITIVE FORCES MODEL The model recognizes 5 major forces that could endanger a companys position in a given industry. * the threat of entry of new competitors * the bargaining power of suppliers * the bargaining power of customers (buyers) * the threat of substitute products or services * the rivalry among existing firms in the industry Generic Strategies Developing a Sustained Competitive Advantage

Analyzing the forces that influence a companys competitive position will assist management in crafting a strategy aimed at establishing a sustained competitive advantage. To establish such a position, a company needs to develop a strategy of performing activities differently than a competitor. Cost leadership strategy: Produce products and/or services at the lowest cost in the industry. Differentiation strategy: Offer different products, services, or product features. Niche strategy: Select a narrow-scope segment (niche market) and be the best in quality, speed, or cost in that market. Growth strategy: Increase market share, acquire more customers, or sell more products. Alliance strategy: Work with business partners in partnerships, alliances, joint ventures, or virtual companies. Innovation strategy: Introduce new products and services, put new features in existing products and services, or develop new ways to produce them. Operational effectiveness strategy: Improve the manner in which internal business processes are executed so that a firm performs similar activities better than rivals. Customer-orientation strategy: Concentrate on making customers happy Time strategy: Treat time as a resource, then manage it and use it to the firms advantage. Entry-barriers strategy: Create barriers to entry. Lock in customers or suppliers strategy: Encourage customers or suppliers to stay with you rather than going to competitors. Increase switching costs strategy: Discourage customers or suppliers from going to competitors for economic reasons. The goal is to perform activities differently than a competitor. Those activities can be linked in a Value Chain Model. THE VALUE CHAIN According to the value chain model (Porter, 1985), the activities conducted in any organization can be divided into two parts: primary activities and support activities. Primary activities are those activities in which materials are purchased, processed into products, and delivered to customers. Each adds value to the product or service hence the value chain. * Inbound logistics (inputs) * Operations (manufacturing and testing) * Outbound logistics (storage and distribution) * Marketing and sales * Service Unlike the primary activities, which directly add value to the product or service, the support activities are operations that support the creation of value (primary activities) * firms infrastructure (accoun, finance, managemt) * Human resources management * Technology development (R&D) * Procurement The Value System A firms value chain is part of a larger stream of activities, which Porter calls a value system. A value system includes the suppliers that provide the inputs necessary to the firm and their value chains. This also is the basis for the supply chain management concept. Many of these alliances and business partnerships are based on Internet connectivity are called interorganizational information systems (IOSs) These Internet-based EDI systems offer strategic benefits: Faster business cycle (PO to Receiving), Automation of business procedures (Automated Replenishment), Reduced operational costs, Greater advantage in a fierce competitive environment Global Competition Many companies are operating in a global environment. Doing business in this environment is becoming more challenging as the political environment improves and as telecommunications and the Internet open the door to a large number of buyers, sellers, and competitors worldwide. This increased competition is forcing companies to look for better ways to compete globally. Global dimensions along which management can globalize * Product * Markets & Placement * Promotion * Where value is added to the product * Competitive strategy * Use of non-home-country personnel Multidomestic Strategy: Zero standardization along the global dimensions. Global Strategy: Complete standardization along the seven global dimensions. Sustaining a Strategic Information System (SIS) Strategic information systems are designed to establish a profitable and sustainable position against the competitive forces in an industry. Due to advances in systems development it has become increasingly difficult to sustain an advantage for an extended period. Experience also indicates that information systems, by themselves, can rarely provide a sustainable competitive advantage. Therefore, the major problem that companies now face is how to sustain their competitive advantage. E-BUSINESS Transaction Types Business-to-business (B2B): Both the sellers and the buyers are business organizations. Collaborative commerce (c-commerce): In ccommerce, business partners collaborate electronically. Business-to-consumers (B2C): The sellers are organizations, and the buyers are individuals. Consumers-to-businesses (C2B): Consumers make known a particular need for a product or service, and suppliers compete to provide it. Consumer-to-consumer (C2C): Individuals sell products or services to other individuals. Intrabusiness (intraorganizational) commerce: An organization uses EC internally to improve its operations. A special case is known as B2E (business to its employees) Government-to-citizens (G2C): A government provides services to its citizens via EC technologies. Mobile commerce (m-commerce): When ecommerce is done in a wireless environment.

TRANSACTION PROCESSING INFORMATION SYSTEMS TPS automates routine and repetitive tasks that are critical to the operation of the organization, such as preparing a payroll, billing customers, Point-ofSale and Warehouse operations. Data collected from this operation supports the MIS and DSS systems employed by Middle Management.Computerizes the primary and most of the secondary activities on the Value Chain.Primary purpose to perform transactions and collect data. TPS Online Transaction Processing Systems With OLTP and Web technologies such as an extranet, suppliers can look at the firms inventory level or production schedule in real time. The suppliers themselves, in partnership with their customers, can then assume responsibility for inventory management and ordering. Interactive Internet TPS expands OLTP to provide enhanced real time transaction processing over the Internet or intranets. Multi-store chains can access a centralized computer system no longer requiring in-store processors. TPS Managing Production & Logistics The production and operations management (POM) function in an organization is responsible for the processes that transform inputs into useful outputs. In comparison to the other functional areas, POM is very diversified as are the supporting TPS. It also differs considerably among organizations. A few of the IT supported POM areas are: * In-house logistics and materials management * Planning production/operations * Computer-integrated manufacturing (CIM) * Product lifecycle management (PLM) * Automating design work and manufacturing TPS In-House Logistics & Materials Management Logistics management deals with ordering, purchasing, inbound logistics (receiving), and outbound logistics (shipping) activities. These logistical activities cross several primary and secondary activities on the value chain. Inventory management determines how much inventory to keep. Overstocking can be expensive; so are understock conditions. Manufacturing quality-control systems can be stand-alone systems or part of an enterprise-wide total quality management (TQM) effort. They provide information about the quality of incoming material as well as the quality of work-in-process and finished goods. TPS Planning Production/Operations POM planning is component of operationa systems. Material Requirements Planning (MRP) is software that facilitates the plan for purchasing or producing parts, subassemblies, or materials in the case of interdependent items. It integrates Master Production Schedules, BOMs and Inventory levels. Manufacturing Resource Planning (MRP II) adds functionalities to a regular MRP system by determining the costs of parts and the associated cash flow. It also estimates costs of labor, tools, equipment repair, and energy while generating a requirements report. Just-in-Time Systems is an approach that attempts to minimize waste of all kinds (of space, labor, materials, energy, and so on) and to continuously improve processes and systems. The JIT concept is used in mass customization and build-to-order environments. Project Management. A project is usually a one-time effort composed of many interrelated activities, costing a substantial amount of money, and lasting for weeks or years. Software tools such as: program evaluation and review technique (PERT) and the critical path method (CPM) are used to manage milestones, resources, costs, etc. Work Management Systems (WMS) automatically manage the prioritization and distribution of work. These systems deal with resource allocation and reallocation. TPS Computer-Integrated Manufacturing CIM is a concept that promotes the integration of various computerized factory systems. It has three basic goals: (1) the simplification of all manufacturing technologies and techniques, (2) automation of as many of the manufacturing processes as possible, and (3) integration and coordination of all aspects of design, manufacturing, and related functions via computer hardware and software. TPS Product Lifecycle Management PLM is a business strategy that enables manufacturers to control and share product-related data as part of a products design and development efforts. Web-based supply chains and other technologies are employed to automate this collaborative effort. This electronic-based collaboration can reduce: * Product cost * travel expenses *Costs associated with product-change management * The time it takes to get a product to market TPS Customer Relations It is essential for companies to know who their customers are and to treat them properly. Innovative products and services, successful promotions, customization, and customer service are a necessity for most organization. Customer Profiles and Preference Analysis. Sophisticated information systems are being developed to collect data on existing and potential customers, their demographics (age, gender, income level), and preferences. Prospective Customer Lists and Marketing Databases. All firms need to know and track who their existing and potential customers are. These prospective-customer lists can be analyzed and sorted by classification for direct mailing, emailing, or telemarketing. Mass Customization. Todays customers prefer customized products. Through mass customization, the practice of maintaining WIP inventory, manufacturers can offer different product configurations at reasonable prices.

made, based on where the customer spent their time and on what they may have purchased.

Personalization. Special product offers are

Advertising and Promotions. Special promotions, coupons are presented to the customer via mails, email, wireless and pervasive computing applications. TPS Distribution Channels & In-Store Innovations Organizations can distribute their products and services through a variety of delivery channels. A company may use its own outlets, mfg. Representatives or distributors to name a few. IT-Supported Distribution Channels * Internet * Location Based Mapping *Self-service convenience stores Improving Shopping and Checkout at Retail Stores * Hand-held wireless devices that scan the bar code UPC * Smart card or credit card * Information kiosk enable customers to view catalogs in stores * Self-checkout machines * Check-writers attached to cash registers * Computerization of various activities in retail stores * Video-based systems count and track shoppers in a physical store TPS Marketing Management Many marketing management decision applications are supported by computerized information systems. * Pricing of Products or Services. Sales volumes are largely determined by the prices of products or services as is profit. * Salesperson Productivity. Salespeople differ from each other in selling skill. Sales-force automation increases salesperson productivity by providing them with mobile devices, access to information, etc. Profitability Analysis profit contribution of certain products and services can be derived from cost-accounting systems * Sales Analysis And Trends. Marketing TPS collect sales figures that can be searched for trends and relationships. * New Products, Services, and Market Planning. New products and services can be an expensive risk. Will it sell? Requires careful analysis, planning, forecasting and * Market research. Web-Based Systems support marketing and sales through data capture TPS Accounting and Finance Systems Accounting and finance functional areas manage the inflows and outflow of organizational assets. This involves all functions of an organization including payroll, billing, cash management, etc. * Financial Planning and Budgeting (Financial and Economic Forecasting, Planning for Incoming Funds, Budgeting, Capital Budgeting) * Managing Financial Transactions * E-Commerce Applications of Financial Transactions (Global stock exchanges and multiple currencies, E-Bonds, Factoring online, Electronic re-presentment of checks, Electronic bill presentment and payments) * Virtual Close * Expense Management Automation * Investment Management (Financial Analysis, Access to Financial and Economic Reports) * Control and Auditing (Budgetary Control and Auditing, Financial Ratio Analysis, Profitability Analysis and Cost Control, Product Pricing) TPS Customer Relationship Management CRM recognizes that customers are the core of a business and that a companys success depends on effectively managing relationships with them. It focuses on building long-term and sustainable customer relationships that add value both for the customer and the company. Types of CRM - Operational CRM is related to typical business functions involving customer services, order management, invoice/billing, etc. - Analytical CRM involves capture and analysis of customer data. - Collaborative CRM deals with all the communication, coordination, and collaboration between vendors and customers. CRM has been practiced manually by corporations for generations. However, eCRM (electronic CRM) started in the mid-1990s, when customers began using Web browsers, the Internet, and other electronic touch points. The use of these technologies made customer services much more effective and efficient than before. Through these technologies, data generated about customers can be easily supplied to marketing, sales, and customer service applications and analysis. Scope of eCRM * Foundational services, the minimum necessary services such as order fulfillment. * Customer-centered services such as order tracking. * Value-added services such as online information. CRM Activities Customer Service on the Web. * Search and Comparison Capabilities * Free Products and Services * Technical and Other Information and Service * Allowing Customers to Order Products and Services Online * Letting Customers Track Accounts or Order Status Tools for Customer Service * Personalized Web Pages * FAQs * Chat Rooms * E-Mail and Automated Response * Call Centers * Troubleshooting Tools * Wireless CRM Business Process Reengineering =extensive changes in operations,processes,structure,due to pressures-redesign processes to improve them/BPR drivers: fitting software,streamlining supplychain, participation in e-mkt,improving customer service,e-procurement,online mktg,reducing costs,

automating old processes. BPM-business process mgmt.: combines workflow system & redesign methods &covers 3 processes: ppl2ppl, sys2sys and sys2ppl. IT role: integrate fragmented Info system, data warehouses, implement extended supply chain, utilize b2b e-mkt places, provide a single point of contact for customer. retooling=change in org info sys. BPR software:visual representation of business process elements+simulation. BPR in value supply chain:cross docking,mass customization,cycle time reduction,vendor managed inventory,mobile devices virtual org=business partners share costs&res 4producing. IT planning=planning approaches:business-led, method driven, tech, admin, org/4stagemodel of ITplanning:/1strategic planning(alignment):establish relationship btw org&IT plans; infosys applications fit org obj: analyze int&ext environment&relate them to tech / 2info requirements analys:identifies info requirements to establish a strategic info architecture/3resource allocation:allocates application dev & operational res,develop hard,soft,datanets&comm,facilities,personnel,financ ial plans needed /4project planning:framework to plan, schedule,control application+emphasis on vedor management/applications portfolio:mix of applications.ITarchitecture=applications+infrastruc ture:database,soft,nets/ITinfrastructure influ by:info intensity,strategic focus,industry,mkt volatility,business units synergy,strategy.Arch choice:centralized/distributed/blended. Strat plan 4 web-based sys(e-plan):less 4mal,flexible,risk analysis, integrate ebusiness&knowledge mgmt. MSS=mgmt supp sys:DSS(support analyt,quant decisions),EIS(support in4mational roles of mgmt),groupware(groupwork),intelligent(multifunc t support through knowledge,expertise)/Mgmt problems:un-semi-structured/Activities cat:strategic planning,mgmt ctrl(efficient utilization of res),operational ctrl(efficient execution of tasks)/DSS struct:data mgmt,user interface,model mgmt(soft),knowledge mgmt/GDSS:interactive sys, facilitates sol 2 semi-un-structured prob by a group/EDS(enterprisedecisionsupport)=ODSS(org. decision support sys-focus on task involving sequence of operations&decisions) +EIS(executiveinfosysinfodetails,indicators,trends,CSFs&KPIs-exception report,integration with DSS).EIS+intranet=part of enterprise infosys=business intell/Simulation/VIM(visualinteractivemodeling)= graphic impact of decisions on goals/Knowledge discovery: identify patterns in data/analysis/Data mining:search 4 value info in database;techniques:case-based reasoning,neural computing,intelligent agents,association analysis/GIS/VR/ Ch 1+2-IT Business pressures: Mrkt (Globalization&competition; Need for real time operations; Changing nature of the workforce, Powerful customers); Tech(innovation & obsolescence, overload), Societal (Soc respons., legal, ethics, terrorist & protection) Organiz responses2b pres: Strat sys, Customer focus, Cont improvement, Restructuring bus processes, Make2order+mass custom., alliances, Ebusiness and e-comm. IS= collects, processes, stores, analyses, disseminates info4a specific aim/bus. problem. IT=collection of comp sys used in an organiz., refers to the tech side of an IS. Components of (CB)IS: Hard,Soft,DB, Applic program, Network, Procedures, People Ch 3-SIS SIS-signif change the way buss done, giving Co.strateg. adv(cost,qlty,speed).out/inward IT support 4SIS: 1)innovative applic,2)compet weapons,3)changes n bus processes,4) links with bus partners,5)cost reduction,6)relat.2suppl&cust,7)new prods,8) compet BI Competitive intelligence-collect info(Net) +analyse&interpret(Intel agents,Data Mining). Porters 5competitive forces: threat of entry of new competitors, bargaining power of suppliers, b p of buyers, threat of substitute prods/services, rivalry among existing firms. G.Strategies:Cost lead,Diff,Niche,Growth,Alliance,Innovation,Operat . effect., Cost.orient.time,Entry-barriers,Lockin cost/suppl,Increase switching cost. EC EC=buying,selling,transf,exch of prod/service/info via computer networks,incl Internet. Pure vs partial=deg of digitiz (prod/serv, process, delivery agent) Brick/Click-and-mortar; virtual(pure EC) EC mechanisms: Auctions (Forward-seller, Reverse-buyer), Bartering E-tailing: Storefronts(specialized/general, new/extensions), Mall Tools: Questionnaire, Clickstream data(behav), software agents(intelligent,comparison, search,collaborative filtering), search engines, Advert: Banners, Pop-ups, E-mail Adv,Ecatalogs&brochures, others(chat room/groups) Approaches: Spamming, Permission, Viral, Interactive B2B: sell-side mktplace(e-catalogs, forward auctions),buy-side mktplace(reverse auction, RFQ);E-procurement(reverse a, group purch,desktop purch), E-exchanges Payment systems: E-checks,E-credit cards,Purch cards(B2B),E-cash,Stored-value/smart cards,Person2person pymnts,E-bill presentment&Pymnts,Pymnts@ATMs. Security req: authentication, integrity, nonrepudiation,privacy,safety Functional,CRM Marketing Analyze, plan, develop, and execute all marketing activities through all customer interaction points. This central marketing platform empowers marketers with complete business insights enabling you to make intelligent business decisions and to drive end-to-end marketing processes. Sales Maintain focus on productive activity to acquire, grow, and retain profitable relationships with functionality for sales planning and

forecasting, territories, accounts, contacts, activities, opportunities, quotations, orders, product configuration, pricing, billing, and contracts. Service Reduce the cost of service while enhancing customer satisfaction with support for sales and marketing for service; service contract management; customer service and support; return and depot repair; field service management; warranty and claim management; installation and maintenance; parts logistics and finance; and service analytics. Call centers, channel service, and e-service provide multiple channels for service delivery. Partner channel management Attain a more profitable and loyal indirect channel by managing partner relationships and empowering channel partners. Improve processes for partner recruitment, partner management, communications, channel marketing, channel forecasting, collaborative selling, partner order management, channel service, and analytics for partners and channel managers. Interaction center Maximize customer loyalty, reduce costs, and boost revenue by transforming your interaction center into a strategic delivery channel for marketing, sales, and service efforts across all contact channels. Activities such as telemarketing, telesales, customer service, multifunctional shared service, and interaction center management are supported. Web channelIncrease sales and reduce transaction costs by turning the Internet into a valuable sales,marketing,and service channel for businesses and consumers.Increase profitability and reach new markets with functionality for e-marketing,ecommerce,e-service,Web channel analytics.Deploy these capabilities directly against the SAP ERP application or with SAP CRM as a fully integrated customer channel. Business communications managementImprove contact center and communication-dependent business process effectiveness and reduce costs through SAP Business Communications Managementan all-software,IP-based communications solution,natively integrated with SAP CRM.Whether cstmr contact ur company by phone,e-mail,chat,textmessage,fax,SAP Business Communications Management routes the contact to the right person with the right skills, whether the person is in the office or working remotelyall without the need 4 costly, cumbersome hardwarebased communications systems,significantly reducing total cost of ownership. Real-time offer management Advanced recommendation engine that optimizes any decision-making process across all customer interaction channels, enabling you to take the most appropriate next action to enhance customer relationships and maximize your customers' lifetime value. Classification of CRM Applications Customerfacing include all areas where customers interact with company (call centers, help desks, sales force automation). Customertouching customers interact with the applications (selfservice, campaign management, general purpose ebusiness applications). Customercentric intelligence analyze results of operational processing & use results to improve CRM applications. Online networking methods that provide the opportunity to build personal relationships (chat rooms & discussion lists. Levels & Types of eCRM Foundational service minimum necessary services such as web site responsiveness. Customercentered services order tracking, product configuration/customization & security/trust. Services that matter the most to customers. Primarily on the web. Valueadded services extra such as online Auctions, online training & education. Loyalty programs recognize customers who Repeatedly use services (products) offered Issues Related to CRM Failures Difficulty in measuring intangible benefits. Failure to identify & focus on specific business problems that the CRM can solve. Lack of active senior management sponsorship. Poor user acceptance. Trying to automate poorly defined business Process. CRM services levels: 1)foundational, 2)custcentered,3)value added. Success factors of EC portal: selection&value,performance&service,look&feel,A dvertising&incentives,personal attention,community relationship,security&relationship.