MIS Chapter 8

Application integration

integration of a company's existing management information systems

Data integration

integration of data from multiple sources, which provides a unified view of all data

Forward integration

sends information entered into a given system automatically to all downstream systems and processes

Backward integration

sends information entered into a given system automatically to all upstream systems and processes

Common data repository

allows every department of a company to store and retrieve data in real time → data be more accessible and reliable

Enterprise systems

enterprise wide support + data access for a firm’s operations and business processes → manage customer information across enterprise

Enterprise application integration (EAI)

connects plans, methods, tools aimed at integrating separate enterprise system

Legacy system

current/existing system that will become the base for upgrading/integrating with new system

High demand

tools that can help a company source raw materials, manufacture products, deliver finished goods to retailers, customers in high demand

Supply chain

consists of all parties involved (directly or indirectly) in obtaining raw materials/products

Supply chain management (SCM)

management of information flows between + among activities in a supply chain to maximize total supply chain effectiveness+ corporate profitability

Optimization analytics

finds the optimum value for a target variable by repeatedly changing other variables, subject to specified constraints →management metrics =Measure performance + identify weak links quickly

Back order

unfilled customer order for a product that is out of stock

Inventory cycle time

time it takes to manufacture a product and deliver it to the retailer

Customer order cycle time

agreed upon time between the purchase of a product and the delivery of the product

Inventory turnover

frequency of inventory replacement

Inventory issues

company does not have a clear vision of entire supply chain/right metrics = bullwhip effect

Bullwhip effect

distorted product-demand information ripples from one partner to the next throughout the supply chain → misinformation could cause different members of the chain to stockpile inventory→ magnifying issue + creating excess inventory and costs

3 optimization models to prevent bullwhip

Supply chain, Inventory, Transportation and logistics

Supply chain optimization

defines, recommends, sets flexible supply chain strategies based on organizations operations and resources → combination of business analysis + advanced modeling tools = optimize supply chain infrastructure, processes, policies to improve profitability and customer satisfaction

Inventory optimization

visibility across inventory levels throughout the entire supply chain holistically → inventories can affect upstream and downstream supply chain

Transportation and logistics optimization

efficient movement of products through effective transportation management by evaluating multiple transportation modes, carriers, routes, shipping strategies, support to find the lowest cost combinations

Incorruptible digital ledger

store records for every product = add record every time a product changed hands → who purchased it, for how much

Value

tie different ledgers and data points to provide one centralized bank of information

Supply chain visibility

ability to view all areas up and down the supply chain in real time

Shipping information pipeline

end-to-end supply chain visibility + exchange information in real time securely and seamlessly

Electronic data interchange (EDI)

standard format for the electronic exchange of information between supply chain participants

Blockchain

record the transfer of assets, track receipts, purchase orders +other data → shared throughout company = different departments to work more closely together toward a common goal

Immutability

no entity can be tamper with an entry in the distributed ledger

Benefits of using blockchain over EDI

immutable record, Immutability, Interoperability, Provenance, Scalability, Security, Smart contracts, Traceability

Interoperability

easily share information with manufacturers, delivered, suppliers, vendors

Provenance

entities in the chain know where each asset is originated → know who owned it before and at what time

Scalability

accessed from multiple touch points around the world

Security

higher standard of security +ability to customized to feed more specialized applications

Smart contracts

services of lawyers, bankers → adds costs and delay

Traceability

allows manufacturers, shippers, customers to aggregate data, analyze trends, perform predictive monitoring

3 components of supply chain management

procurement, logistics, materials management

Procurement

purchasing of goods and services to meet the needs of the supply chain

Logistics

processes that control distribution, maintenance, replacement of materials + personnel to support supply chain

inbound logistics

raw materials + distributes them to manufacturing

outbound logistics

distributes goods and services to customers

Materials management

governor flow of tangible, physical materials through supply chain (shipping, transport, distribution, warehousing)

3D printing (additive manufacturing)

builds layer by layer a 3D solid object from a digital model (supports procurement)

Computer-aided design (CAD)

software used to create precise drawings/technical illustrations (architects, engineers, artists)

Computer-aided manufacturing (CAM)

software + machinery to facilitate + automate manufacturing processes

Maker movement

cultural trend that places value on an individual’s ability to be a creator/consumer of things → creators = “makers”

Economic Disruptive

ordinary people become more self-sufficient → make own products

4D printing

additive manufacturing that prints objects capable of transformation and self-assembly with minimal human interaction → assemble at home products

RFID electronic product code (RFID EPC)

serialization/the ability to track individual items by using unique serial number associated with each RFID tag

Drone

unmanned aircraft that can fly autonomously/without a human → military for surveillance/equipped with missiles for precisions strikes

3 primary capabilities of drones

sensors, navigation, stabilization

Robotics

creating AI devices that can move + react to sensory input

Isaac Asimov 3 laws of robotics

1. Robot may not injure a human being/allow a human to be harmed (through interaction)
2. Robot must obey orders given by humans except when orders conflict with #1
3. Robot must protect own existence as long as it does not interfere with #1, #2

Kiva robots

complex grid that optimizes item placement in warehouse →pick item + bring to workers for packing →fulfill 3-4x more orders per hour

Raspberry Pi

low cost, small computer that plugs into computer monitor/TV → capable for doing everything a desktop can do = microcontroller

Customer relationship management (CRM)

managing all aspects of customer relationship with organization's profitability → gain insight into customer shopping + buying behaviors = develop + implement enterprise wide strategies

key players in CRM

lead, account, contact, sales opportunity

lead

person/company that is unknown to your business

account

existing business relationship exists; can include customers, prospects, partners, competitors

contact

specific individual representing the account

sales opportunity

an opportunity exists for a potential sale of goods/services related to an account/contact

Customer analysis

gathering, classifying, comparing, studying customer data to identify buying trends, at-risk customers, potential future opportunities

Sales analysis

gathering, classifying, comparing, studying company sales data to analyze product cycles, sales pipelines, competitive intelligence

Uplift modeling (form of predictive analytics)

attempt to identify target market/people who could be convinced to buy products

3 phrases in evolution of CRM

reporting, analyzing, predicting

Reporting

CRM reporting technologies help organizations identify their customers across applications (what happened)

Analyzing

CRM analysis technologies help organizations segment their customers into categories (best/worst customers) --> why it happened

Predicting

CRM predicting technologies help organizations predict customer behavior (what will happen)

Operational CRM

supports traditional transactional processing for day to day front office operations/systems that deal directly with customers → sales, marketing, customer service system

3 primary operational CRM tech to increase customer satisfaction

list generators, campaign management system, cross-selling/up-selling

List generators

compile customer information from variety of sources + segment it for different market campaigns (website visits, questionnaires, surveys, marketing mailers) → Filtered based of criteria

Campaign management systems

campaign definition, planning, scheduling, segmentation, success analysis →guide users through marketing campaigns

Cross-selling

selling of additional products/services to an existing customer

Up-selling

increasing value of the sale → CRM offers information to help identify up-selling + cross-selling opportunities to increase revenues

2 primary notions of sale

1. Struggling with customer information required to maintain and track
2. Managers hindered because customer + sale information remained in head of sale representative

Customer service and support (CSS)

automates service requests, complaints, product returns, information requests

Sales force automation (SFA)

automatically tracks all steps in the sale process → increasing customer satisfaction, building customer relationships, improving product sales

Sales management CRM system

automate each phrase of sale process → help individual sale reps coordinate + organize all their accounts (calendars, reminders for important tasks, multimedia presentations, document generation)

Contact management (existing customers

customer contact information + prospective customer (future sales) → charts, customer nots, supplemental sale information = personalize phone conversation

Opportunity management (potential customers)

finding new customers/companies for future sales + budgets and schedules

3 factors of SFA

sales management, contact management, opportunity management

First call resolution (FCR)

properly addressing customer’s need the first time they call → eliminate follow up call

Talk time

average time agent spends on each call

Interactive voice response (IVR)

direct customer to see touch-tone phones/keywords to navigate/provide information

Predictive dialing

automatically dials outbound calls + forwards answered class to available agent

Click-to-talk

click a button + talk with rep via internet

Call scripting systems

product details issue resolution information that can be automatically generated into a script for the rep to read to customer → questions rep can ask customer to troubleshoot = uniform response to avoid confusion

Analytical CRM

supports back-office operations + strategic analysis (all systems that do not deal directly with customers) → data warehouse, data mining, collaborative CRM system

Omnichannel analytics

combines data from different channels into one holistic view of customer + analyze data for customer insights on customer segmentation, demographics, spending

Customer profitability (CP)

customer worth over a specific period of time (measure past)

Customer lifetime value (CLV)

total net profit a company makes from any given customers → subtract cost of acquiring + serving customer from revenue gained (predict future)

Chatbot

stimulates interactive human conversation by using key precalculated user phrases + auditory/text-based signals

Intelligent virtual agent

animated, humanlike graphical chatbot commonly displayed on website home pages and ad pages

Customer segmentation

divides market into categories that share similar characteristics (age, location, gender habits) → easier to create target marketing +sales campaigns =personalization

Comprehensive view of customer

provide consistent customer responses regardless who is communicating + better understanding of customer of various programs

Enterprise resource planning (ERP)

all departments and functions throughout an organization into a single system → employees make decisions by viewing enterprise wide information on all business operations

Module software design

divides system into a set of functional units (modules) that can be used independently/combined with other modules for increased business flexibility

Enterprise wide integration

business processes integrated end-to-end departments and business units → order automatically initiates credit check, quires product availability, updates distribution schedule (invoice sent after order shipped)

Real-time (near real-time operations)

problems identified quickly → seller more time to correct situation

Common database

data to be defined once for the enterprise (all departments use same definition)