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Information Systems

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support system (DSS) typically provides a spreadsheet style "what if?" analysis capability, often for only one
department or one product at time.
LESSON 12
CBIS from Functional View Point
CBIS can be divided into subsystems based on how the users are grouped in the organization. This
grouping of users is in terms of related tasks that are performed. These conceptual systems are mirror
images of physical systems that are present. These systems are collectively called Organizational
Information systems (OIS).
12.1 Organizational Information Systems (OIS)
The term OIS views organization as a combination of process oriented groups whose information needs are
related but independent. All functional systems should work together for problem solving since each system
specialises in specific domain of information.
Organizational
Information
Organization
Systems
Marketing Department/Function
Marketing Information System
Manufacturing Information System
Manufacturing Department/Function
Financial Information System
Finance Department/Function
Human Resource Information System
HR Department/Function
Information Resource Information System
IR/IT Department/Function
12.2 Marketing Information Systems (MKIS)
MKIS is a type of Information System that helps the firm to achieve following objectives:
o  Identification of customers for firm`s products and services.
o  Development of those products and services to meet customers' needs
o  Promotion of the products and services, and
o  Provision of after sale customer support
Types of Marketing Information
Every information system is designed to capture some sort of information. Information requirements need
to be defined before the systems are made. While designing marketing information system, following types
of information should be designed.
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Marketing Intelligence ­ information flowing from environment into the environment
Internal Information ­ gathered within the firm
Marketing Communication ­ Info flowing from firm to external environment
An MKIS help in proper management and dissemination of all three kinds of information.
12.3 Benefits of Marketing IS
MKIS helps organizations in efficient channel management. Following can be identified as some of the
benefits of MKIS.
1. Customer profiles need to be maintained focusing on their habits and spending patterns. MKIS
helps in maintaining these profiles.
2. Information on what competitors have been upto is also a critical marketing information. This
should not be taken as espionage on competitors.
3. Forecasts of demand is also a critical part of marketing analysis. MKIS helps in achieving this as
well.
4. Field sales can also be monitored where sales agents are used to market products.
5. Customers can be quickly updated based on their information kept in MKIS.
6. Dealers involved in sale of product can also be monitored to help enhance revenue.s
12.4 Management Levels in MKIS
MKIS should cater for information requirements at each level, for instance
Strategic Level
1. Formulation of new sales products, and identifying new sales opportunities.
2. Planning support for new products and services
3. Monitoring competitors
Knowledge Level
1. Market analysis based on demographics and customer behaviour
Management level
1. Sales performance analysis is required to monitor how to enhance sales and address related issues.
2. Sales staff analysis is important to see how much of the sales portion has been contributed by each
of the employees.
Operational Level
1. Taking comments from customers for measuring satisfaction is a responsibility of the managerial
level.
2. Tracking sales, processing orders and customer support
12.5 New Dimensions in MKIS
Through extensive use of computers in marketing field, newer concepts are emerging in marketing field,
which are revolutionising the way customers were dealt with.
o  Customer Relationship management (CRM)
o  Sales Force Automation (SFA)
o  Call Centres
Customer Relationship Management
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Businesses increasingly talk about fostering relationships with their customers. This is important
because some modern businesses have literally millions of customers. Hence keeping personal touch
with every individual customer is getting difficult to achieve.
Companies are clearly eager to nurture relationships with their customers. Businesses need to
understand the extent to which consumers want to engage with their brands. For some
businesses there is
  Either a strong natural need ­ banks
  Or an emotional attachment ­ Fashion retailer, car manufacturer
Benefits of CRM
Maintains and enhances customer base
Encourages customer loyalty
Gaining more customers' wallet-share
The more effective a company's customer retention and defection management strategy, the
less they need to plug the gap with new customers, who are expensive to recruit.
 CRM help in establishing communication to encourage customers to share information about
their
Habits,
Tastes and preferences
Interests in Co's brand extension initiatives
CRM is a business strategy that goes beyond increasing transaction volume.
Its objectives are to increase profitability, revenue, and customer satisfaction.
To achieve CRM, a company wide set of tools, technologies, and procedures promote the relationship
with the customer to increase sales.
Thus, CRM is primarily a strategic business and process issue rather than a technical issue.
Reasons for adopting CRM
Customers now prefer to execute transaction in an electronic environment through online-trading.
Also the establishment of customer services centers has also removed the inconvenience to access
vendor's physical locations.
Due to absence of physical contact, companies are curious to keep a soft touch in an efficient manner.
This requires keeping a customer-wise online track of past correspondence and transactions.
CRM reduces cost of sales and distribution by
Targeting advertising to customers to increase the probability that an offer is accepted.
Using web applications to decrease the number of direct sales people and distribution
channels needed
Managing customer relationships rather than manage products (a change in marketing)
CRM minimize customer support costs by
Making information available to customer service representatives so they can answer any
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query
Automating the call centre so that representatives have direct access to customer history
and preferences and therefore can cross-sell
12.6 Key CRM Tasks
Customer Identification -- Identifying customer through
Marketing channels,
Transactions,
Interactions overtime,
Customer Differentiation ­ Segregating customers, with respect to.
Their lifestyles
Attitudes
Perception about Co.'s products
Customer Interaction ­ Efforts made to retain customers for long-term profitability and relationship.
Customization / Personalization
"Treat each customer uniquely" is the motto of the entire CRM process. Through the personalization
process, the company can increase customer loyalty.
12.7 CRM Issues
Customer Privacy
Customer privacy is an important issue in CRM. CRM deals with large amounts of customer data
through various touch points and communication channels. The individual firm is thus caught in an
ethical dilemma ­ collecting as much information as possible but still respecting limits for personal
privacy.
Software issues
There is little standardized technologies and protocols for CRM implementation in the market.
Vendors publish new versions of CRM software as frequently as they can thus adding to client's
expenses. CRM software requires highly integrated environment for high productivity, which is rarely
available.
Sales Force Automation
It automates some of the company's critical sales and sales force management functions, for example,
Customer account management,
Forecasting sales,
Sales administration,
Keeping track of customer preferences,
Sales staff performance.
SFA empowers the sales force to close deals at the customer's office and to configure marketing strategies
at home. SFA is providing tools for very highly evolved sales organizations, organizations that are basically
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marketing machines.
12.8 Call Center
Due to its direct contact with customers, call center is widely gaining popularity. It refers to a department
within a company or a third-party organization that handles telephone sales and/or service. Call centers use
automatic call distributors (ACD's) to route calls to the appropriate agent. In addition to a call centre,
collective handling of letters, faxes, and e-mails at one location is known as a contact centre. As computers
gain more and more involvement in marketing field, presence of a highly efficient and integrated call center
has become inevitable. Call centers should have direct access to every customer's track record so as to help
them handle queries in an efficient manner. Modern day call centers, record the telephonic conversation
with the customers, extract a summary of it, and display it every time the customer calls so as to help
attendant review entire record.
Call Center-Challenges
Call centre agents are challenged daily to navigate disparate, non-integrated applications as they attempt to
resolve customer service requests. The call centre should offer an integrative solution so that customers can
be responded efficiently. Call canter should help cut long processing times which add to customer
frustration and dissatisfaction with the company.
Manufacturing Information Systems
It is an information system which deals with the
o  Planning, development and maintenance of production facilities
o  Establishment of Production goals
o  Availability of production materials
o  Scheduling
Management Levels in Manufacturing Information System
Strategic level
1. Locating new plant which can save cost
2. Investment in new manufacturing technology
Knowledge Level
1. Distribute knowledge to drive the production process
2. Innovating new forms of manufacturing processes
Management level
1. Monitoring production costs and resources
Operational Level
1. Status of production tasks
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Table of Contents:
  1. Need for information, Sources of Information: Primary, Secondary, Tertiary Sources
  2. Data vs. Information, Information Quality Checklist
  3. Size of the Organization and Information Requirements
  4. Hierarchical organization, Organizational Structure, Culture of the Organization
  5. Elements of Environment: Legal, Economic, Social, Technological, Corporate social responsibility, Ethics
  6. Manual Vs Computerised Information Systems, Emerging Digital Firms
  7. Open-Loop System, Closed Loop System, Open Systems, Closed Systems, Level of Planning
  8. Components of a system, Types of Systems, Attributes of an IS/CBIS
  9. Infrastructure: Transaction Processing System, Management Information System
  10. Support Systems: Office Automation Systems, Decision Support Systems, Types of DSS
  11. Data Mart: Online Analytical Processing (OLAP), Types of Models Used in DSS
  12. Organizational Information Systems, Marketing Information Systems, Key CRM Tasks
  13. Manufacturing Information System, Inventory Sub System, Production Sub System, Quality Sub system
  14. Accounting & Financial Information Systems, Human Resource Information Systems
  15. Decision Making: Types of Problems, Type of Decisions
  16. Phases of decision-making: Intelligence Phase, Design Phase, Choice Phase, Implementation Phase
  17. Planning for System Development: Models Used for and Types of System Development Life-Cycle
  18. Project lifecycle vs. SDLC, Costs of Proposed System, Classic lifecycle Model
  19. Entity Relationship Diagram (ERD), Design of the information flow, data base, User Interface
  20. Incremental Model: Evaluation, Incremental vs. Iterative
  21. Spiral Model: Determine Objectives, Alternatives and Constraints, Prototyping
  22. System Analysis: Systems Analyst, System Design, Designing user interface
  23. System Analysis & Design Methods, Structured Analysis and Design, Flow Chart
  24. Symbols used for flow charts: Good Practices, Data Flow Diagram
  25. Rules for DFDs: Entity Relationship Diagram
  26. Symbols: Object-Orientation, Object Oriented Analysis
  27. Object Oriented Analysis and Design: Object, Classes, Inheritance, Encapsulation, Polymorphism
  28. Critical Success Factors (CSF): CSF vs. Key Performance Indicator, Centralized vs. Distributed Processing
  29. Security of Information System: Security Issues, Objective, Scope, Policy, Program
  30. Threat Identification: Types of Threats, Control Analysis, Impact analysis, Occurrence of threat
  31. Control Adjustment: cost effective Security, Roles & Responsibility, Report Preparation
  32. Physical vs. Logical access, Viruses, Sources of Transmissions, Technical controls
  33. Antivirus software: Scanners, Active monitors, Behavior blockers, Logical intrusion, Best Password practices, Firewall
  34. Types of Controls: Access Controls, Cryptography, Biometrics
  35. Audit trails and logs: Audit trails and types of errors, IS audit, Parameters of IS audit
  36. Risk Management: Phases, focal Point, System Characterization, Vulnerability Assessment
  37. Control Analysis: Likelihood Determination, Impact Analysis, Risk Determination, Results Documentation
  38. Risk Management: Business Continuity Planning, Components, Phases of BCP, Business Impact Analysis (BIA)
  39. Web Security: Passive attacks, Active Attacks, Methods to avoid internet attacks
  40. Internet Security Controls, Firewall Security SystemsIntrusion Detection Systems, Components of IDS, Digital Certificates
  41. Commerce vs. E-Business, Business to Consumer (B2C), Electronic Data Interchange (EDI), E-Government
  42. Supply Chain Management: Integrating systems, Methods, Using SCM Software
  43. Using ERP Software, Evolution of ERP, Business Objectives and IT
  44. ERP & E-commerce, ERP & CRM, ERP Ownership and sponsor ship
  45. Ethics in IS: Threats to Privacy, Electronic Surveillance, Data Profiling, TRIPS, Workplace Monitoring