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Cross-Functional Information Systems

Cross-Functional Information Systems. 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. Telecommu-nications.

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Cross-Functional Information Systems

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  1. Cross-Functional Information Systems Chapter 8 Functional Applications All Sections Chapter 7 Organizations & Information Systems Sections Q2 – Q3 (Skip Sections Q1 & Q4)

  2. Today’s Topic Security Hardware & Software IS Basics Information Quality Types of IS Telecommu-nications Systems Development PowerPoint Functional, Crossfunctional & Interorganizational Database Processing & Design Spreadsheet Design E-commerce Access Excel Business Intelligence

  3. Functional& Cross-functional Organi-zational IS Functional Cross-functional Problems Functional Units CRM ERP & EAI

  4. Objectives • Understand the differences between functional and cross-functional systems. • Know the characteristics, benefits and problems associated with CRM & ERP. • Distinguish between ERP and EAI.

  5. What are Functional Units?

  6. What Problems arise from Functional Information Systems? • Data duplication, data inconsistency • Disjointed applications

  7. What Problems arise from Functional Information Systems? • Limited information and lack of integrated information • Isolated decisions • Increased expense

  8. What is Business Process Redesign (BPR)? • Organize around integrated activities that span functional units. • Underlying business processes are changed. • Software is developed to support improved business processes.

  9. Cross-Functional Information Systems • Customer Relationship Management (CRM) • Enterprise Resource Planning (ERP) • Enterprise Application Integration (EAI)

  10. Why is it important to manage relationships with customers? • 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%

  11. Why is it important to manage relationships with customers? • 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%.

  12. What is Customer Relationship Management (CRM)? • Customer-centric philosophy • Cross-functional IS • Provides all employees with tools needed to respond to any customer need • Thorough data collection

  13. Zappos Example “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=MTWLLnRS35Q

  14. What is the CRM Customer Life Cycle?

  15. What are the Benefits off CRM? • Identify, target and retain most profitable customers. • Customize products and services to each customer. • Identify customer desires. • Meet customers needs.

  16. What Challenges Must be Overcome to Implement CRM? • Understand customers’ wants and needs • Change appropriate business processes not just IT • Prepare customers and employees for change

  17. What is Enterprise Resource Planning (ERP)? • Cross-functional IS • Cooperative, integrated philosophy • Centralized database • Formal approach • Very expensive

  18. What are the Benefits of ERP? • More Efficiency • Higher Quality • Lower Costs • Enterprise Agility • Better Decision-making / Higher Profits

  19. What Challenges Must be Overcome to Implement ERP? • Project complexity • Participation by appropriate employees • User training

  20. What is Enterprise Application Integration (EAI)? • Integrates existing information systems with software interfaces for the purposes of: • sharing data • increasing communication • making a gradual transition to ERP

  21. Functional, Cross-functional & Interorganizational ERP

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