Week 3: Class 5
Chapter 7 Q1
What are the fundamental types of IS within organizations?
IS can affect competitive advantage by making the primary and support activities in
an organization more productive than those of competitors. Increase productivity is
realized when business processes within the organization become more effective
and/or efficient. This is true for commercial companies as well as for non-profit
organizations and government.
Name Era Scope Perspective Example Technolo
gy
Symbols
Calculation 1950-19 Single Eliminate Computed Mainfram
systems 80 purpose tedious human payroll and e
Your calculations. printed Punch
grandda "Just make it paychecks; card
d work!" applied debits
and credits to
the general
ledger and the
balanced the
company's
accounting
records. Also
kept track of
inventory
quantities.
Functional 1975-20 Facilitated Use computer Payroll Mainfram
systems ?? the work of to improve expanded to e
Your a single operation and become HR, Stand-alo
mom department management of general ledger ne PCs
or business individual became Networks
function departments. financial and LANs
reporting, and
inventory was
merged into
operations or
manufacturing.
HR
Financial
reporting
Order entry Manufacturing
(MRP I and MRP
II)
Integrated 2000- The Develop IS to Customer
systems You problem w/ integrate Relationship
(also functional separate management
cross-functio application departments (CRM)
nal or s is their into Enterprise
process-base isolation. organization-wi resource
d systems) These de business planning (ERP)
systems are processes. B/c Some info
called business systems have
functional process begun to cross
silos b/c activities cross not only
they are departmental functional
designed to boundaries, borders but also
work such systems organizational
independen are sometimes boundaries.
tly of one called These systems
another. cross-departme that are used by
Reality is ntal or 2 or more
that cross-functional related
functional systems. companies are
systems are Integrated referred to as
inter-relate processing inter-organizati
d. requires many onal systems.
Purchasing departments to Eg. e-commerce
influences coordinate their and supply
inventory, activities. There chain
which may not be management
influences clear lines of systems.
production, authority across
which departments,
influences competition can
customer be fierce, and
satisfaction interdepartmen
, which tal rivalries can
influences subvert the
future development of
sales. the new
cross-functional
system. Chapter 7 Q2
What are functional systems and why are they changing?
Function Example Info Systems
Marketing and Sales Product management: primary functional system for
marketing.
1. To help assess how well their
product-marketing effort are working.
2. Sales data are summarized by product, product
category, and business line
3. Sales to date are compared to forecasts, sales in
past periods, and other expectations
4. If data is current enough, adjustments can be
made in advertising and promo programs by
moving dollars from, say, to over-performing
products to under-performing products
Lead tracking: records prospects and keeps track of
sales contacts with potential customers
Sales forecasting: vital not only for planning
production or managing inventories, but also for
financial reporting by publicly held companies
Customer management: generate follow-up business
from existing customers. Salespeople use such
systems to determine what products customers have
already purchased, to record all contacts w/ the
customer, and to follow up for additional revenue
generation.
Customer service
Operations Used by non-manufacturers, such as distributors and
retailer
Order entry: can take place in-house, where company
employees enter orders, or it can be done at
web-based, e-commerce sites such as retailer
Amazon.ca
Order management: track orders through the
fulfillment process, handling back orders and order
changes as well as providing order status.
Inventory management: analyze sales activity and
More
Less