Chapter 8 Functional Applications
All Sections
Chapter 7 Organizations & Information Systems
Sections Q2 – Q3 (Skip Sections Q1 & Q4)
Today’s Topic
Security
Hardware &
Software
IS Basics
Information
Quality
Types of IS
Systems
Development
PowerPoint
Spreadsheet
Design
Database
Processing
& Design
Telecommu
-nications
Functional,
Crossfunctional &
Interorganizational
E-commerce
Excel
Access
Business
Intelligence
Organizational IS
Functional
Functional
Units
Crossfunctional
Problems
CRM
ERP & EAI
Understand the differences between
functional and cross-functional systems.
Know the characteristics, benefits and
problems associated with CRM & ERP.
Distinguish between ERP and EAI.
Sales
Operations
Human
Resources
Manufacturing
Accounting
Data duplication, data inconsistency
Disjointed applications
Limited
information and
lack of integrated
information
Isolated decisions
Increased expense
Organize around integrated activities that
span functional units.
Underlying business processes are changed.
Software is developed to support improved
business processes.
Customer Relationship Management (CRM)
Enterprise Resource Planning (ERP)
Enterprise Application Integration (EAI)
A typical dissatisfied customer will tell 8-10
people about his or her experience.
75% of complaining customers will do
business with the company again if it
quickly takes care of a service snafu.
A company can boost profits 85% by
increasing its annual customer retention by
only 5%
It costs 6 times more to sell to a new
customer than to sell to an existing
customer.
The odds of selling a product to a new
customer are 15% whereas the odds of selling
a product to an existing customer are 50%.
Customer-centric philosophy
Cross-functional IS
Provides all employees with tools needed to
respond to any customer need
Thorough data collection
“In terms of customer service, they are a
revolutionary company.”
“Seamless process... Won’t have any
hesitation the next time I order from them.”
“Take care of the customer no matter what.
They just want to please you.”
http://www.youtube.com/watch?v=MTWLLnRS3
5Q
Identify, target and retain most profitable
customers.
Customize products and services to each
customer.
Identify customer desires.
Meet customers needs.
Understand customers’ wants and needs
Change appropriate business processes not
just IT
Prepare customers and employees for change
Cross-functional IS
Cooperative, integrated philosophy
Centralized database
Formal approach
Very expensive
More Efficiency
Higher Quality
Lower Costs
Enterprise Agility
Better Decision-making / Higher Profits
Project complexity
Participation by appropriate employees
User training
Integrates existing information systems with
software interfaces for the purposes of:
◦ sharing data
◦ increasing communication
◦ making a gradual transition to ERP
Functional
•Sales
•Operations
Interorganizational
Crossfunctional
•CRM
•SCM
•EAI
•Manufacturing
•Human Resources
•Accounting
ERP
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