CISB223: MIS

Updated on the 8th of June 2011

 Marketing systems are concerned with:

Planning, promotion, and sale of existing products in existing markets Development of new products and new markets Better attracting and serving present and potential customers

Interactive Marketing
A customer-focused marketing process Uses the Internet, intranets, and extranets Establishes two-way transactions between a business and its customers or potential customers

Goal
Profitably use networks to attract and keep customers Get customers to help create, purchase, and improve products and services

Community: customized ads to appeal to specific virtual communities Content: ads placed on a variety of selected websites, aimed at a specific audience Context: ads placed on web pages that are relevant to a product or service Demographic/Psychographic: web marketing aimed at specific types or classes of people Online behavior: promotions tailored to each visit to a site by an individual

 Recruiting employees using the corporate website and commercial recruiting services Posting messages in selected Internet newsgroups Communicating with job applicants via e-mail

The oldest and most widely used information system in business

Records and reports business transactions and economic events
Produces financial statements Forecasts future conditions

Typically consists of
Order processing Inventory control

Accounts receivable
Accounts payable Payroll General ledger systems

Supports business managers and professionals making decisions concerning

The financing of a business

The allocation and control of financial

resources within a business

 A customer-centric focus Customer relationships have become a companys most valued asset Every companys strategy should be to find and retain the most profitable customers possible

Benefits of CRM
Identify and target the best customers Real-time customization and personalization

of products and services

Track when and how a customer contacts

the company
Provide a consistent customer experience

Provide superior service and support across

all customer contact points

Business benefits of CRM are not guaranteed

50 percent of CRM projects did not produce promised

results
20 percent damaged customer relationships

Reasons for failure

Lack of understanding and preparation Not solving business process problems first No participation on part of business stakeholders involved

ERP is a cross-functional enterprise backbone that integrates and automates processes within
Manufacturing Logistics Distribution Accounting Finance Human resources

ERP Business Benefits

Quality and efficiency Decreased costs Decision support Enterprise agility

ERP Costs
Risks and costs are considerable Hardware and software are a small part

of total costs
Failure can cripple or kill a business

Most common causes of ERP failure

Under-estimating the complexity of planning,

development, training
Failure to involve affected employees in

planning and development

Trying to do too much too fast Insufficient training

Insufficient data conversion and testing

Over-reliance on ERP vendor or consultants

Fundamentally, supply chain management helps a company

Get the right products

To the right place

At the right time In the proper quantity At an acceptable cost

The goal of SCM is to efficiently

Forecast demand Control inventory

Enhance relationships with customers, suppliers,

distributors, and others

Receive feedback on the status of every link in the

supply chain

Key Benefits
Faster, more accurate order processing Reductions in inventory levels Quicker times to market Lower transaction and materials costs

Strategic relationships with supplier

Key Challenges
Lack of demand planning knowledge, tools,

and guidelines
Inaccurate data provided by other information systems Lack of collaboration among marketing, production, and inventory

management
SCM tools are immature, incomplete, and

hard to implement

Electronic commerce encompasses the entire online process of

Developing Marketing Selling Delivering Servicing Paying for products and services

It relies on the Internet and other information technologies to support every step of the process

Business-to-Consumer
Virtual storefronts, multimedia catalogs, interactive order processing,

electronic payment, online customer support

Business-to-Business
Electronic business marketplaces, direct links between businesses,

auctions and exchanges

Consumer-to-Consumer
Online auctions, posting to newspaper sites, personal websites, e-

commerce portals

E-commerce processes must establish mutual trust and secure access between parties
User names and passwords Encryption key Digital certificates and signatures

Restricted access areas

Other peoples accounts Restricted company data Webmaster administration areas

Profiling gathers data on you and your website behavior and choices User registration Cookie files and tracking software User feedback
Profiling is used for Personalized (one-to-one) marketing Authenticating identity Customer relationship management Marketing planning Website management

Search processes help customers find the specific product or service they want
E-commerce software packages often include

a website search engine

A customized search engine may be acquired from

companies like Google or Requisite Technology

Searches are often on content or by parameters

Content Management Software

Helps develop, generate, deliver, update, and archive text and

multimedia information at e-commerce websites

Catalog Management Software

Helps generate and manage catalog content

Catalog and content management software works with profiling tools to personalize content
Includes product configuration and mass customization

Complex processes
Near-anonymous and electronic nature

of transactions
Many security issues
Wide variety of debit and credit alternatives Financial institutions may be part of the process

Web Payment Processes

Shopping cart process Credit card payment process Debit and other more complex processes

Electronic Funds Transfer (EFT)

Major payment system in banking, retail

Variety of information technologies capture

and process money and credit card transfers

Most point-of-sale terminals in retail stores

are networked to bank EFT systems

Build a website
Choose or set up web hosting Use simple design tools and templates Include a shopping cart and payment support

Market the website

Include Web page and e-mail advertising

and promotions
Exchange advertising with other Web stores Register with search engines and directories Sign up for affiliate programs

Convert visitors into loyal customers

Develop one-to-one relationship with customers Create incentives to encourage registration Use Web cookies to identify visitors Use tracking services to record and analyze website behavior and

customer preferences
Create an attractive, friendly, efficient store Offer fast order processing and payment

Notify when orders are processed and shipped

Provide links to related websites

Manage both the business and the website

Record and analyze traffic, inventory, sales Use CRM features to help retain customers Link sales, inventory data to accounting systems

Operate 24 hours a day, seven day a week Protect transactions and customer records
Use security monitors and firewalls Use redundant systems and power sources Employ passwords and encryption Offer 24-hour tech support