0100001101101111011100100010000001001010011001010111001101110101001000000100001101101 1110110110001101100011001010110011101100101010000110110111101110010001011010101010101 010000110110111101110010001000000 100101001100101011100110111010100 100000010000110110111101101100011 01100011001010110011101100101 0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000 1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010 COR JESU COLLEGE COMPUTER STUDIES DIVISION Management Information Systems Business Functions and Supply Chains
03 Business Functions and Supply Chains
Dec 15, 2015
IT
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Management Information Systems
Business Functions and Supply Chains
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Objectives
• Identify various business functions and the role of ISs in these functions
• Explain how ISs in the basic business functions relate to each other
• Articulate what supply chains are and how information technology supports management of supply chains
Management Information Systems, Sixth Edition 2
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Objectives (continued)
• Enumerate the purposes of customer relationship management systems
• Explain enterprise resource planning systems
Management Information Systems, Sixth Edition 3
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Effectiveness and Efficiency
• Information technology makes work more effective, more efficient, or both
• Effectiveness: the degree to which a goal is achieved
• Efficiency: the relationship between resources expended and benefits gained in achieving a goal –Efficiency = Benefit / Costs
–One system is more efficient if its operating costs are lower for the same or better quality product
Management Information Systems, Sixth Edition 4
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Effectiveness and Efficiency (continued)
• Productivity: efficiency of human resources
–Productivity improves when fewer workers are required to achieve the same goal
• Productivity tools: software applications that improve productivity
• ISs contribute to both effectiveness and efficiency of businesses
Management Information Systems, Sixth Edition 5
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Effectiveness and Efficiency (continued)
• Customer relationship management (CRM) system: system that serves customers better and faster
–Service continues after delivery of goods as customer service and more marketing
–Often combined with supply chain management (SCM) systems to create an enterprise resource planning (ERP) system
Management Information Systems, Sixth Edition 6
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Effectiveness and Efficiency (continued)
Management Information Systems, Sixth Edition 7
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Management Information
Systems, Sixth Edition
8
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Effectiveness and Efficiency (continued)
Management Information Systems, Sixth Edition 9
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Management Information
Systems, Sixth Edition
10
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Accounting
• Accounting’s purpose is to track every financial transaction
• Accounting systems are required by law and for proper management
• Needed to ensure company is making a profit
• Accounts payable and accounts receivable track who owes who what
• Balance sheet: picture of financial situation
– Includes profit-and-loss report
Management Information Systems, Sixth Edition 11
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Accounting (continued)
• Accounting information system: receives information from transaction processing systems (TPSs)
–Automatically routes purchases to accounts payable
–Automatically routes sales to accounts receivable
• Generates reports on demand or on schedule
• Work order: an authorization to perform work for a specific purpose
Management Information Systems, Sixth Edition 12
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Accounting (continued)
• Cost-accounting systems: accumulate data about costs involved in producing specific products
• Accounting ISs are used for managerial purposes for budgeting and cost control
Management Information Systems, Sixth Edition 13
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Accounting (continued)
Management Information Systems, Sixth Edition 14
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Management Information
Systems, Sixth Edition
15
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Finance
• Firm’s health is measured by its finances
• Information systems can improve financial management
• Financial managers’ goal is to manage money as efficiently as possible by:
–Collecting payables as soon as possible
–Making payments at the latest time allowed
–Ensuring funds are available for daily operations
– Investing funds not used for current activities Management Information Systems, Sixth Edition 16
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Finance (continued)
Management Information Systems, Sixth Edition 17
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Management Information
Systems, Sixth Edition
18
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Cash Management
• Financial information systems help managers track company finances
• Cash management systems: systems that deal specifically with cash
• Electronic funds transfer: electronic transfer of cash from one bank account to another
Management Information Systems, Sixth Edition 19
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Investment Analysis and Service
• Investor’s goal is to buy an asset and sell it for a higher value
• When investing in securities, you must know current prices in real time
• Nearly instantaneous information systems can provide investors and clients with financial news, stock prices, commodity prices, and currency exchange rates
Management Information Systems, Sixth Edition 20
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Investment Analysis and Service (continued)
• Some important factors to consider in investing:
–Variability of the security’s past yield
–Expected return
–Liquidity (how fast an investment can be turned into cash)
Management Information Systems, Sixth Edition 21
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Engineering
• Time to market: time between generating an idea for a product and completing a prototype
• Brainstorming: process of a group of colleagues meeting and collaborating to generate creative solutions and new ideas
• Minimizing time to market is key to maintaining competitive edge
• Information systems can contribute significantly to minimizing time to market
Management Information Systems, Sixth Edition 22
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Engineering (continued)
• Computer-aided design (CAD): tools to create, modify, and store designs and drawings electronically
• Rapid prototyping: creating one-of-a-kind products to test design in three dimensions
–Allows a model to be produced in hours rather than days or weeks
• Computer-aided manufacturing (CAM): systems that instruct machines how to manufacture parts and assemble products
Management Information Systems, Sixth Edition 23
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Engineering (continued)
Management Information Systems, Sixth Edition 24
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Management Information
Systems, Sixth Edition
25
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Supply Chain Management
• Supply chain: consists of procurement of raw materials, processing materials into goods, and delivering goods
• Processing raw materials into goods is also known as manufacturing
• Supply chain management: monitoring, controlling, and facilitating supply chains
• CAD systems often transfer data automatically to CAM systems
Management Information Systems, Sixth Edition 26
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Supply Chain Management (continued)
• IT helps in manufacturing activities:
–Scheduling plant activities to optimize the use of resources
–Planning material requirements based on current and forecasted demand
–Reallocating materials and resources from one order to another
–Managing inventories
–Grouping similar work orders for efficiency
Management Information Systems, Sixth Edition 27
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Supply Chain Management (continued)
Management Information Systems, Sixth Edition 28
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Management Information
Systems, Sixth Edition
29
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Material Requirements Planning and Purchasing
• Material requirements planning (MRP): inventory control
–Determines when inventory needs to be restocked
–Can predict future need based on demand forecasts
–Takes customer demand as input, then works back to calculate resources needed to produce goods
Management Information Systems, Sixth Edition 30
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Material Requirements Planning and Purchasing (continued)
• Bill of materials (BOM): list of all raw materials and subcomponent demands to produce a product
• Economic order quantity (EOQ): optimal quantity of a raw material that minimizes overstocking and saves cost, without missing production deadlines
–Considers cost, discounts for large quantities, cost of warehousing material, cost of alternative uses of money, etc.
Management Information Systems, Sixth Edition 31
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Manufacturing Resource Planning
• Manufacturing resource planning (MRP II): combines MRP with other related activities to plan the entire manufacturing process
–Uses master production schedule
• Master production schedule: specifies how production capacity is to be used to meet customer demands
• Just-in-time manufacturing: suppliers ship parts directly to assembly lines as needed
–Avoids warehousing costs
Management Information Systems, Sixth Edition 32
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Monitoring and Control
• Information systems are designed to control manufacturing processes as well as monitor them
• Controlling processes helps ensure quality
Management Information Systems, Sixth Edition 33
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Shipping
• Performed by manufacturer or shipping company
• Many variables affect cost and speed of shipping, including:
–Length of routes
–Sequence of loading and unloading
–Type of shipped materials (e.g., perishable, hazardous, fragile)
–Fuel prices
–Road tolls Management Information Systems, Sixth Edition 34
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Shipping (continued)
• Sophisticated software that optimizes shipping efficiency helps a company stay competitive
• Need to optimize:
–Shipping time
–Cost of labor
–Use of equipment
–Maintenance
• Vehicles equipped with computers, global positioning systems (GPS), and satellite communication have increased efficiency
Management Information Systems, Sixth Edition 35
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Shipping (continued)
Management Information Systems, Sixth Edition 36
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Management Information
Systems, Sixth Edition
37
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
RFID in SCM
• Radio frequency identification (RFID): a technology containing circuitry that allows recording of information about a product
• Electronic product code (EPC): a code on an RIFD tag that provides more information than the universal product code (UPC)
– Information may include date of manufacturing, plant location, expiration date, destination
• Ensures genuineness of products Management Information Systems, Sixth Edition 38
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
RFID in SCM (continued)
Management Information Systems, Sixth Edition 39
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
RFID in SCM (continued)
Management Information Systems, Sixth Edition 40
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Customer Relationship Management
• Customer relationship management (CRM) systems: designed to support any and all relationships with customers
– Supports three areas • Marketing
• Sales
• Customer service
• CRM systems capture the entire customer experience with an organization
– All company employees who deal with the customer have access to this information
Management Information Systems, Sixth Edition 42
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Customer Relationship Management (continued)
Management Information Systems, Sixth Edition 43
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Market Research
• To promote products successfully, organizations must perform market research
• Market research: helps discover populations and regions that are most likely to purchase product
• Activities may include:
– Conducting interviews with consumers and retailers
– Building statistical models to predict sales volumes of different products
Management Information Systems, Sixth Edition 45
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Targeted Marketing
• Targeted marketing: promotes to people most likely to purchase products
• Database technology allows all companies to use targeted marketing, even small companies
• Can direct promotional dollars to customers most likely to buy
• Spam: cheap method of advertising involving sending mass e-mail communications
Management Information Systems, Sixth Edition 46
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Targeted Marketing (continued)
Management Information Systems, Sixth Edition 47
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Targeted Marketing (continued)
• Database management systems sort consumers based on demographic information
• Telemarketing: marketing over the telephone
– Caller has large database of consumer data
• Computer telephony integration: allows computer to use telephone line as input
– Caller ID can be used to locate customer data
• Data mining: uses large data warehouses to find trends and shopping habits of various demographic groups
Management Information Systems, Sixth Edition 49
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Targeted Marketing (continued)
• Targeted marketing and Web technologies enable retailers to personalize online shopping
• Software can track Web page click streams to determine customer preferences
Management Information Systems, Sixth Edition 50
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Customer Service
• Web-based customer service provides automated customer service 24/7
–Saves labor costs
–Saves paper costs
• Includes FAQs, tracking systems, maintenance of customer profiles
• Artificial intelligence may be used to emulate a real-life customer service representative
Management Information Systems, Sixth Edition 51
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Salesforce Automation
• Equips traveling salespeople with information technology to improve productivity
–Laptops and personal digital assistants (PDAs)
• Makes sales presentations more efficient
• Allows salespeople to present different options for products and services at the customer location
Management Information Systems, Sixth Edition 52
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Human Resource Management
• Human resource management (HRM) can be classified into five main activities:
–Employee record management
–Promotion and recruitment
–Training
–Evaluation
–Compensation and benefits management
Management Information Systems, Sixth Edition 53
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Human Resource Management (continued)
Management Information Systems, Sixth Edition 54
F
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Employee Record Management
• HR departments must keep personnel records
–To satisfy laws
–For payroll and tax calculation and deposit
–For promotion consideration
–For periodic reporting
• Human resource ISs are now digitized
–Saves space to store records, time to retrieve them, and costs of both
Management Information Systems, Sixth Edition 56
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Employee Record Management (continued)
Management Information Systems, Sixth Edition 57
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Promotion and Recruitment
• HR can select best-qualified person for position by searching database of applicants and existing employees for specific criteria
• Automating the selection process significantly minimizes time and money for recruitment
• Intranet: inter-organizational network that supports Web applications
– Allows HR manager to post position vacancy announcements that get wide exposure
Management Information Systems, Sixth Edition 59
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Training
• One important HR function is improving employee skills
• Multimedia software training is replacing classrooms and teachers
–May include 3D virtual reality simulated environments in which the employee must act
• Information technology reduces training costs dramatically
Management Information Systems, Sixth Edition 60
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Evaluation
• Employee ability must be periodically evaluated by supervisors
– May include evaluation of technical ability, communication skills, professional conduct, and general behavior
• Often a subjective process, which is a problem
• Evaluation software tries to solve this problem by standardizing evaluation process
– Provides tools to aid in evaluating every employee fairly and objectively
Management Information Systems, Sixth Edition 61
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Compensation and Benefits Management
• Compensation includes salary, hourly pay, commissions, and bonuses
• Programs calculate pay and taxes
–Automatically generate paychecks and perform direct deposits
• Software can help manage benefits
–Benefits database accessible through intranet or Internet
Management Information Systems, Sixth Edition 62
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Supply Chain Management Systems
• Overall inventory in the U.S. is decreasing while U.S. gross domestic product (GDP) is increasing
• Money saved from reduced inventory can be spent elsewhere
• Reduction in inventory attributed to the use of ISs, especially supply chain management systems
– Streamline operations throughout chain
• ERP systems can also serve as SCM systems, connecting multiple organizations
Management Information Systems, Sixth Edition 63
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Supply Chain Management Systems (continued)
Management Information Systems, Sixth Edition 64
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
The Importance of Trust
• Supply chain systems work best when all businesses in the chain are sharing information
• Trust between allied companies facilitates collaboration
• Risk of disclosing important information to competitors is present
• Risk of taking advantage of demand figures by charging higher prices is present
Management Information Systems, Sixth Edition 66
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
The Musical Chairs of Inventory
• Small enterprises do not use SCM systems – Affect more powerful organization to which small
enterprise is linked
• Inventory turns: the number of times the business sells its inventory per year
• When SCMs of companies are not linked, demand requirements are unknown, so supply companies must overstock inventory
• One company “sits” with lean inventory while other stands with “overstock,” hence musical chairs
Management Information Systems, Sixth Edition 67
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Collaborative Logistics
• Web allows organizations from different industries to collaborate
• Businesses combine freight and share trucks
–Can optimize logistics by connecting SCM systems
• SCM systems can allow collaborative warehousing to share warehouse space
Management Information Systems, Sixth Edition 68
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Enterprise Resource Planning
• Many companies replace old, disparate information systems with enterprise applications
• Enterprise resource planning (ERP) system: manages daily operations and facilitates planning
• Current ERP market includes four vendors: – SAP
– Oracle
– Microsoft
– Sage Software
Management Information Systems, Sixth Edition 69
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Challenges and Disadvantages of ERP Systems
• ERP systems pose many challenges:
–They are complex
–They often require special tailoring for specific organizations
–They may not support a company’s unique sets of business processes
–They are expensive
–A process that becomes a weak link in one area may negatively affect other integrated processes
Management Information Systems, Sixth Edition 70
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Providing the Missing Reengineering
• Although most reengineering projects of the 1990s failed, ERP systems helped realize many of those ideas
–ERP systems forced changes in processes
• ERP systems allow better planning and managing of processes at the organizational level instead of at the organizational unit level
Management Information Systems, Sixth Edition 71
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Summary
• Effectiveness is the degree to which a task is accomplished
• Efficiency is the ratio of output to input
• Productivity is the measure of people’s efficiency
• Information systems have been integrated into accounting services
• Financial information systems help managers track cash
Management Information Systems, Sixth Edition 72
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Summary (continued)
• Computer-aided design (CAD) systems help engineers design new projects
• Computer-aided manufacturing (CAM) systems direct machines that assemble parts
• Supply chain management (SCM) systems optimize workload, speed, and cost in supply chains
• Customer relationship management (CRM) includes the entire cycle of relationships with customers
Management Information Systems, Sixth Edition 73
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101
1110110110001101100011001010110011101100101010000110110111101110010001011010101010101
010000110110111101110010001000000
100101001100101011100110111010100
100000010000110110111101101100011
01100011001010110011101100101
0100001101101111011100100010000001001010011001010111001101110101001000000100001101101111011011000
1101100011001010110011101100101010000110110111101110010001000000100101011010101010101010101101010
CO
R J
ES
U C
OL
LE
GE
CO
MP
UT
ER
ST
UD
IES
DIV
ISIO
N
Summary (continued)
• Human resource management systems facilitate staff selection and record keeping
• Multiple companies’ SCM systems can be linked, facilitating cooperation, which requires trust
• An enterprise resource planning (ERP) system can encompass all business processes, but is expensive and challenging
Management Information Systems, Sixth Edition 74
Related Documents
