Badm Lecture 4

Front 1

Transaction Processing System (TPS)

Back 1

monitors, collects, stores and processes data generated from all business transactions

Front 2

Source data automation

Back 2

is the process of automating the TPS data entry as much as possible because of the large volume involved.

Front 3

Batch Processing

Back 3

is when the firm collects data from transactions as they occur, placing them in group or batches, then prepares and processes the batches periodically (say, every night).

Front 4

Online Transaction Processing (OLTP)

Back 4

is when business transactions are processed online as soon as they occur.

Front 5

Functional Information Systems also called Management Information Systems (MISs) or Functional Area IS

Back 5

provide information to managers (usually middle-level managers) in the functional areas.
MISs support planning, organizing, and controlling operations.

Front 6

Enterprise Resource Planning (ERP) systems

Back 6

integrate the planning, management and use of all resources of the organization.
ERP’s major objective is to tightly integrate the functional areas of the organization and to enable seamless information flows across the functional areas.

Front 7

Business process

Back 7

is a set of related steps or procedures designed to produce a specific outcome.
Business processes supported by ERP modules include Financial and Accounting Processes, Sales and Marketing Processes, Manufacturing and Production Processes and Human Resources Processes.

Front 8

Best practices

Back 8

are the most successful solutions or problem-solving methods for achieving a business objective.
Drawbacks to ERP systems are that they can be extremely complex, expensive and time-consuming to implement.
Leading ERP software vendors include SAP (SAP R/3), Oracle and PeopleSoft

Front 9

Customer Relationship Management (CRM)

Back 9

is an enterprisewide effort to acquire and retain customers.
Includes a one-to-one relationship between a customer and a seller.
One simple idea “Treat different customers differently”.
Helps keep profitable customers and maximizes lifetime revenue from them.

Front 10

Customer touch point

Back 10

is a method of interaction with a customer, such as telephone, e-mail, a customer service or help desk, conventional mail, Web site and store.
CRM systems provide applications in 3 major areas:
Sales - sales force automation (SFA).
Marketing – support marketing campaigns & provide opportunities for cross-selling, up-selling and bundling.
Customer service – can take many Web-based forms.

Front 11

Sales force automation (SFA)

Back 11

functions provide such data as sales prospect and contact information, product information, product configurations and sales quotes.

Front 12

Marketing-Cross-selling

Back 12

refers to the marketing of complementary products to customers.

Front 13

Marketing-Up-selling

Back 13

is the marketing of higher-value products or services to new or existing customers.

Front 14

Marketing-Bundling

Back 14

is a type of cross-selling in which a combination of products is sold together at a lower price than the combined costs of the individual products.

Front 15

Customer service

Back 15

functions provide information and tools to make call centers, help desks and customer support staff more efficient.
-Technical and other information and services
Customized products and services
-Tracking account or order status
Personalized Web pages
FAQs
E-mail and automated response
Call centers

Front 16

Supply chain

Back 16

refers to the flow of materials, information, money and services from raw material suppliers, through factories and warehouses, to the end customers.

Front 17

Supply chain management (SCM)

Back 17

is the function of planning, organizing and optimizing the supply chain’s activities.

Front 18

Interorganizational information system (IOS)

Back 18

involves information flows among two or more organizations.

Front 19

Global information systems

Back 19

interorganizational information systems that connect companies located in two or more countries.

Front 20

Issues in Global IOS Design

Back 20

Cultural differences
Localization
Economic and Political Differences
Legal issues
Cross-border data transfer which refers to the flow of corporate data across nations’ borders.

Front 21

A supply chain involves three segments

Back 21

-Upstream
-Internal
-Downstream

Front 22

Upstream

Back 22

where sourcing or procurement from external suppliers occurs

Front 23

Internal

Back 23

where packaging, assembly or manufacturing takes place

Front 24

Downstream

Back 24

where distribution takes place, frequently by external distributors

Front 25

Tiers of suppliers

Back 25

a supplier may have one or more subsuppliers, and the subsupplier may have its own subsupplier(s) and so on

Front 26

Material flows

Back 26

are the physical products, raw materials, supplies and so forth that flow along the chain.
Reverse flows – returned products, recycled products and disposal of materials or products

Front 27

Information flows

Back 27

are all data related to demand, shipments, orders, returns and schedules as well as changes in any of these data.

Front 28

Financial flows

Back 28

are all transfers of money, payments and credit-related data.
A supply chain involves a product life cycle approach, from “dirt to dust”.

Front 29

Problems along the Supply Chain

Back 29

Poor customer service – not delivering products or services when and where the customers need them.
Poor quality product
High inventory costs
Loss of revenues
New technologies

Front 30

Problems in a supply chain stem mainly from two sources

Back 30

Uncertainties due to demand forecast, delivery times, quality problems in materials and parts that can create production delays;
The need to coordinate several activities, internal units and business partners.

Front 31

Bullwhip effect

Back 31

refers to erratic shifts in orders up and down the supply chain

Front 32

Electronic data interchange (EDI)

Back 32

is a communication standard that enables business partners to exchange routine documents, such as purchase orders, electronically.

Front 33

EDI translator

Back 33

converts data into a standard format before it is transmitted.

Front 34

Business transactions messages

Back 34

include repetitive business transactions such as purchase orders, invoices, credit approvals, shipping notices and confirmations.
-Data formatting standards are used.

Front 35

EDI

Back 35

serves as a catalyst and a stimulus to improve the standard of information that flows between and among organizations

Front 36

EDI Benefits

Back 36

Minimize data entry errors
Length of messages are shorter
Messages are secured
Reduces cycle time
Increases productivity
Enhances customer service
Minimizes paper usage and storage

Front 37

EDI Limitations

Back 37

Significant initial investment to implement
Ongoing operating costs are high due to the use of expensive, private VANs
Traditional EDI system is inflexible
Long startup period
Multiple EDI standards exist

Front 38

Extranets

Back 38

link business partners to one another over the Internet by providing access to certain areas of each other’s corporate intranets.
The main goal of extranets is to foster collaboration between business partners.
An extranet is open to selected B2B suppliers, customers and other business partners.