Updated Feb. 2014
Bob Travica

Bob Travica
• Operation concept
• TPS and MIS (expansion of class 8)
• Case:
– Marketing and sales processes at Telco
– Telco’s TPS & MIS (Customer System)
– Design & performance matrix of Telco Customer System
– Concepts of As-Is and To-Be process
– Impact of organizational culture
• Summary

Bob Travica
• Basis of business, recurring activities that generate ongoing income and increase value of organizational assets.
• Best understood as business processes serving organizational functions (production, HR, purchasing, marketing, sales).
• Can also be understood as daily transactions – recurring atomic events in organizations (buy, sell, bill, pay, hire, etc.)

Bob Travica
• Operational processes are “bread & butter” of organizational life because they:
(A) employ most of work
(B) create income
(C) incur most of costs (savings in operations directly reflects in financial results)
• Contrast operations with strategies*. Ideally, operations should be in function of strategies.

Bob Travica
• TPS is part of operational processes, as they track and carry operations in all segments of organization. Characteristics of
TPS determine performance of operational processes (e.g., timing).
• MIS create summary evidence on operations executed, or reflect the business transpired.
Operational processes
Supply  Production  Delivery
Marketing  Sales  Customer Support
Human Resources  Accounting
Track & carry
MIS
TPS
MIS
TPS
MIS
TPS
Reflect past business

Bob Travica
TPS is a type of IS that stores & processes data created in operational processes
(‘transactions’).
Technically, TPS is a database with stored queries.
Outputs are results of querying (stored and hoc*).
Output examples: sorted lists of parts expended, summaries of sales (per product, per store), totals on purchases, sales, inventory, work hours. Daily, weekly periods.
Serves supervisory level of management
Queries daily, weekly business
Database

Bob Travica
Querie s business
Paper
Database
Complex
Query &
Report
Module
Reports
Computer
Screen
MIS uses outputs from TPS to create reports on transpired operations in an organization. Used by mid-level managers.
Example outputs: A summary of sales in last month or quarter, with a breakdown of totals per product/store, and with variances from the corresponding monthly sales plan.
Reports further transform outputs from TPS (four arithmetic operations, statistics).
Reports are formatted into sections, breakdowns, tables, text boxes, etc.* Report contains different charts to ease and speed up data interpreting by managers.

Bob Travica
Reports kinds are:
1. Scheduled report - regularly created (e.g., on the end of month or quarter). MIS creates scheduled reports automatically at the push of button by MIS user.
2. Exception reports - created when something exceptionally happens (e.g., a peak or drop in revenues, too many faulty parts in production, unusually high number of sick hours). MIS is programmed to create this report when variance from a plan is significant.

Bob Travica
The term “As-is” refers to the factual state of a process.
Marketing
Professional
CRMS
Store campaign
Sales Clerk Mobtel
Vendor
Customer (any)
Place order
Read offers
Enter campaign
Enter campaign in electronic bulletin
Display customer record
Find customer
Update
customer history
Record order
in system X
• CRMS (Customer Relationship Management System) is
Telco’s MIS. It is supposed to serve marketing campaigns.
• Design of this process is problematic.

Bob Travica
Campaign creates
Offer given to makes
Customer places
Call Order
• Data diagram represents entities included in the process as-is.
• The process problems replicated (mixing marketing with sales ordering).

Bob Travica
Marketing
Professional
Enter campaign
CRMS
Store campaign
Enter campaign in electronic bulletin
Display customer record
Update
customer history
Sales Clerk
Read offers
Find customer
Record order
in system X
Mobtel
Vendor
Customer (any)
Place order
Process design
Issues
Finding
Coordination
Complexity
CRMS black hole. Two start points (Mkt. Pro. & Customer).
All just mkt. process (ordering involved)?
Three IS resources involved.
Process performance
Issues
Purpose
Finding
Time
Cost
IS Support
Customer Value
Intended: Market telecomm services except cell phone.
Really: Marketing process not supported by Sales Dept. – no promotion, but passive call centre.
Cycle time (promote-sell) unpredictable. Slowness due to multiple data sources and sinks.
Inflated by deployment of 3 IS resources and time losses.
CRMS used just as storage of marketing campaigns; no tracking/ reporting on market response. Supporting process confusion – campaigning mixed with customer ordering (see next slides)
Marketing: Process doesn’t help enact & grasp market.
Sales: Making a sale labor-intensive (operate 3 IS resources).
Consumer: making a purchase takes initiative to call. Wait time.

Bob Travica
The term “To-be” signifies a process as it should be (improved).
Marketing
Professional
CRMS Sales Clerk Mobtel
Vendor
Customer (any)
Store campaign
Retreive campaign
Enter campaign
Respond to offer
Display customer address & offers
Call customer
Enter campaign in electronic bulletin
Place order
Read offers
Display
Customer Record
Update
customer history
Find customer
Record order
- Components in red belong to As-is process (deleted).
- Process improvement involves eliminating customer ordering from the marketing campaign process (red part).
- System more fully supports campaigning process.

Bob Travica
Marketing Campaign Process
Campaign creates
Offer given to
Customer
CustomerOffer
(CampaignResult)
Date,
Accepted (yes/no)
Customer Ordering Process
Customer places
Order
OrderNo
PromotionCode
• Marketing Campaign Process is separated from Customer
Ordering Process (COP). COP traces orders to campaigns via attribute PromotionCode.

Bob Travica
Department boundaries between Sales and Marketing departments at Telco are rigid (“there are silos”).
Departments have different cultures.
Sales reps are rules-driven, supervised. They must use CRMS.
Bureaucratic culture.
Marketers have freedom of choice in performing work and using
IS; they can choose to use CRMS or some other system.
Professional culture.

Bob Travica
Part of culture is a very liberal executive management that does not align operations between Marketing and Sales departments:
Sales staff not actively promoting campaigns and not entering campaign responses into CRMS
Marketers not encouraged to measure real results of marketing campaigns or use CRMS for more than data storage.
CRMS is affected, not enforced as a vehicle for process improvement.

Bob Travica
• Operations (transactions) are basic business processes that generate most of income and costs.
• TPS track and carry operational processes. TPS outputs result from querying, and examples are daily/weekly sorted lists of parts expended, and summaries of sales or work hours.
• MIS reflect the business transpired, and use outputs from TPS to create reports for mid-level mgmt.
• Example of MIS output is a summary of sales in last month or quarter, with a breakdown of totals per product/store, variance figures.
» More…

Bob Travica
• MIS reports transform TPS outputs, contain formatting features, graphs, and can be regular or exceptional.
• Case of the marketing campaign process at Telco shows process and data diagram in as-is form. The process has sub-optimal design and does not perform well.
• Telco’s marketing campaign process is shaped by Telco’s culture.
• The to-be process separates marketing from customer order management and makes fuller use of CRMS.