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