Management Information Systems

1. Management Information Systems

2. Agenda • Warriors - video (10 mins) • Telecommunication trends • The Internet, Intranet, Extranet

3. Basic Components of a Network Model • Let’s watch a video • Some definitions • Ping of Death – DoS attack – a packet sent by a hacker • Port – interface of a computer application through which data are sent and received • 80 – Internet, 25 – email

4. Telecommunication Trends

5. Telecommunications-Based Services

6. Internet Networking Technologies • Internet networking technologies are being used as technology platform • Web browser suites • HTML Web page editors • Network management software • Firewalls • Being applied in Internet, intranet, and extranet applications • Reinforces previous move toward client/server networks based on open-systems architecture

7. Open Systems • Open systems use common standards for hardware, software, applications, and networks • Internet networking technologies are a common standard for open systems • Connectivity • Open systems provide greater connectivity and network interoperability • Middleware may be needed to help diverse systems work together

8. Middleware • Middleware • A general term for any programming that mediates between two separate programs • Allows a particular database to access other databases without custom programming • Commonly known as the “glue” of an information system • It routes data and information between back-end data sources and end user applications • An essential component of any IT infrastructure

9. Digital Network Technologies • Telecommunications are being revolutionized by switch from analog to digital • Analog: voice-oriented transmission • Digital: discrete pulse transmission • Benefits • Higher transmission speeds • Moves larger amounts of information • Greater economy and much lower error rates • Transmits multiple types of communications (data, voice, video) on the same circuits

10. The Internet Revolution • The Internet has become a global information superhighway • Millions of smaller, private networks operating independent of, or in harmony with, each other • 10 servers in 1991 to over 46 million today • Sustained growth in excess of 1 million servers per month • No central computer system • No governing body • Based on common standards

11. Internet2 • Next generation of the Internet • High-performance • Different infrastructure than the current Internet • Will not replace the current Internet • In use at over 200 universities, scientific institutions, communications corporations • May never become totally open • Users are connected via a backbone that supports throughput of 10 Gbps • Infinite bandwidth • Over 4 million users

12. Internet Service Providers • ISP • A company that specializes in providing easy access to the Internet • For a monthly fee, provides software, user name, password, and Internet access • ISPs themselves are connected to one another through network access points • One ISP can easily connect to another to obtain addresses of websites or user nodes

13. Business Use of the Internet

14. Intranets as Information Portals

15. Extranets • Network links that use Internet technologies to connect the intranet of a business to the intranets of another • Virtual Private Networks • Direct private network links, or private secure Internet links between companies • Firewalls and encryption

16. Extranet Connectivity

17. Telecommunications Network Knowledge • Telecommunications is a highly technical, rapidly changing field • Most business professionals don’t need detailed technical knowledge • However, understanding basic components and their characteristics is necessary • Can help you make informed decisions about telecommunications alternatives

18. Enterprise Systems Enterprise Systems

19. Agenda • Cross-functional enterprise systems • Enterprise application integration • Transaction processing systems • Enterprise collaboration systems • Functional enterprise systems • Accounting, Finance, HR management, Marketing, Production, Operations management • Cross-functional systems • CRM and ERP

20. Cross-Functional Enterprise Applications • In the past - functional mainframe legacy systems • The current trend is to employ integrated cross-functional systems • ERP, CRM, SCM (supply-chain mgt) • SAP, Oracle PeopleSoft • Cross-functional systems are • Integrated combinations of information subsystems that share information resources and support business processes across the functional units

21. Cross-Functional Systems • Cross the boundaries of traditional business functions • Used to reengineer and improve vital business processes all across the enterprise

22. Enterprise Application Architecture

23. Enterprise Application Architecture • Enterprise Resource Planning (ERP) • Concentrates on the efficiency of internal production, distribution, and financial processes • Customer Relationship Management (CRM) • Focuses on acquiring and retaining profitable customers via marketing, sales, and services • Partner Relationship Management (PRM) • Aims at acquiring and retaining partners who can enhance the selling and distribution of products and services

24. Enterprise Application Architecture • Supply Chain Management (SCM) • Focuses on developing the most efficient and effective sourcing and procurement processes • Knowledge Management (KM) • Focuses on facilitating internal group collaboration and decision support

25. Enterprise Application Integration • EAI software connects cross-functional systems • Serves as middleware to provide • Data conversion • Communication between systems • Access to system interfaces

26. Transaction Processing Systems • Cross-functional information systems that process data resulting from the occurrence of business transactions • Transactions include sales, purchases, deposits, withdrawals, refunds, and payments • Online transaction processing (OLTP) is a real-time system that captures transactions immediately

27. The Transaction Processing Cycle

28. Enterprise Collaboration Systems (ECS) • EC systems are cross-functional information systems that enhance team and workgroup • Communication • Coordination • Collaboration • MS SharePoint

29. Enterprise Collaboration Systems • Fortune 500 companies lose $12 billion annually due to an inability to locate information • Knowledge worker spends 2.5 hours per day searching for information • In most cases, other organization members already know this information

30. Enterprise Collaboration Systems • Cross-functional e-business systems that enhance communication, coordination, & collaboration • Communicate – share information with each other • Coordinate – coordinate individual work efforts & use of resources with each other. • Collaborate – work together cooperatively on joint projects and assignments • Why do most KM projects fail? • Knowledge hoarding

31. Enterprise Collaboration Systems

32. Functional Business Systems • A variety of types of information systems that support the business functions of • Accounting • Finance • Marketing • Operations management • Human resource management

33. IT in Business

34. CRM and ERP Systems • CRM • ERP

35. Customer Relationship Management • A customer-centric focus • Customer relationships have become a company’s most valued asset • Every company’s strategy should be to find and retain the most profitable customers possible

36. What is CRM? • Managing the full range of the customer relationship involves • Providing customer-facing employees with a single, complete view of every customer at every touch point and across all channels • Providing the customer with a single, complete view of the company and its extended channels • CRM uses IT to create a cross-functional enterprise system that integrates and automates many of the customer-serving processes • Shaw Cable example

37. Application Clusters in CRM

38. Contact and Account Management • CRM helps sales, marketing, and service professionals capture and track relevant data about • Every past and planned contact with prospects and customers • Other business and life cycle events of customers • Data are captured through customer touchpoints • Telephone, fax, e-mail • Websites, retail stores, kiosks • Personal contact

39. Sales • A CRM system provides sales reps with the tools and data resources they need to • Support and manage their sales activities • Optimize cross- and up-selling • CRM also provides the means to check on a customer’s account status and history before scheduling a sales call

40. Marketing and Fulfillment • CRM systems help with direct marketing campaigns by automatic such tasks as • Qualifying leads for targeted marketing • Scheduling and tracking mailings • Capturing and managing responses • Analyzing the business value of the campaign • Fulfilling responses and requests

41. Customer Service and Support • A CRM system gives service reps real-time access to the same database used by sales and marketing • Requests for service are created, assigned, and managed • Call center software routes calls to agents • Help desk software provides service data and suggestions for solving problems • Web-based self-service enables customers to access personalized support information

42. Retention and Loyalty Programs • It costs 6 times more to sell to a new customer • An unhappy customer will tell 8-10 others • Boosting customer retention by 5 percent can boost profits by 85 percent • The odds of selling to an existing customer are 50 percent; a new one 15 percent • About 70 percent of customers will do business with the company again if a problem is quickly taken care of • Extremely important to e-commerce companies

43. Retention and Loyalty Programs • Enhancing and optimizing customer retention and loyalty is a primary objective of CRM • Identify, reward, and market to the most loyal and profitable customers • Evaluate targeted marketing and relationship programs

44. Benefits of CRM • 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

45. CRM Failures • Business benefits of CRM are not guaranteed • 50 percent of CRM projects did not produce promised results • 20 percent damaged customer relationships

46. CRM Failures • Reasons for failure • Not solving business process problems first • Due to the lack of understanding & preparation • Technology is implemented and it is hoped that it will solve all current business problems • No business process change and cultural change • Key stakeholders should be involved from before making a decision to acquire a CRM system

47. CRM Examples • Examples of CRM applications • MS Dynamics CRM - Video

48. ERP: The Business Backbone • ERP is a cross-functional enterprise backbone that integrates and automates processes within • Manufacturing • Logistics • Distribution • Accounting • Finance • Human resources

49. What is ERP? • Enterprise resource planning is a cross-functional enterprise system • An integrated suite of software modules • Supports basic internal business processes • Facilitates business, supplier, and customer information flows

50. Enterprise Resource Planning (continued) • ERP gives a company an integrated real-time view of its core business processes • Tracks all business resources • Cash, raw materials, production capacity • Business commitments • Orders, employee payroll, etc • No matter what department is in charge of each area