2.3 Systems to Support Organizational Objectives

Question 1

Operational Support Systems

Answer 1

TPS capture & process BASIC business transactions related to:

• Customer ordering
• Billing
• Payroll
• Purchasing
• General accounting

Integrated enterprise systems called Enterprise Resource Planning:
- Deals with ALL functions of a company

Question 2

Benefits/Advantages of using an ERP System

Answer 2

1. Improved access to data
2. Improved business processes through industry best practices
3. Single, integrated set of software for the entire company

Question 3

Disadvantages of using an ERP System

Answer 3

1. Expensive & time-consuming to implement + maintain
2. Difficult in integrating with existing systems
3. Organizational practices need to be consistent with best practices embedded in the software
4. Extensive training
5. Risk of only using (1) ERP provider

Question 4

MIS

Answer 4

Give managers insight into regular operations = do their jobs more EFFECTIVELY

MIS uses transaction details from a TPS to summarize info and are the primary input
MIS also uses internal databases and external
This data is summarized, filtered, and manipulated to meet management needs in reports

Key Goal:
Provide the right information to the right person in the right format at the right time

Question 5

Filtering

Answer 5

Reduce volume at various levels of management: RELEVANT

Question 6

Outputs of an MIS

Answer 6

1. Scheduled Reports
2. Key-Indicator Reports (summary of days critical activities)
3. Demand Reports (detailed, provide operational info, based entirely on internally generated data)
4. Exception Reports (unusual conditions, set by statistical analysis)
5. Predictive Reports (projecting into the future or determining different outcomes - what-if)
6. Drill-Down Reports (increased detailed data)

Question 7

Characteristics of an MIS

Answer 7

1. Reports have fixed & standard formats - flexible
2. Use internal data stored in the computer system - primary source is TPS
3. Develop Custom Reports
4. User requests developed by systems personnel - control

Question 8

Financial MIS

Answer 8

Focused on: Asset & cash management + organizational performance measurement

1. Management of Funds:
   - Determining what funds are available/needed
   - Analyzing investment opportunities
   - Managing working capital
2. Profitability & Costing Systems:
   - Organize revenue & cost data by category (department or centre)
3. Auditing

Question 9

Accounting MIS

Answer 9

Accounting MIS is PART of the financial MIS

Focused on: producing financial statements
Accounting TPS provides data to both financial + accounting MIS

Question 10

Digital Payment Methods

Answer 10

1. Digital wallets:
   - Assigned a substitute card number unique to the phone
   - The store gets the card number & matches it to a one-time unique number generated from the device to process the payment
   - Relies on near-field communications
2. Crypto-currencies:
   - Digital wallet currencies where encrypted techniques are used to regulate the units of currency and verify transfer of the funds, independent of a bank
   - Coins are generated/produced by mines
   - Use block chain technology - digital public ledger that keeps track of transactions
   - To add a transaction to the ledger, must solve complex computational problem - this adds a block of transactions to the ledger (this way, no one can easily change or add blocks at will)
   - Mining process is what gives value to the coins

Question 11

Manufacturing MIS

Answer 11

1. Design & Engineering:
   Computer-assisted design (CAD)
2. Master Production Scheduling:
   Uses current demand and estimates future demand, what-if (which is usually associated with DSS)
3. Inventory Control:
   Cost effectiveness
4. JIT Inventory:
5. Process Control:
   Control machines
   Linking all components of a production system
6. Quality Control & Testing:
   Locate problems
   Better design products

Question 12

Supply Chain Management

Answer 12

The procurement of supplies and distribution of products to customers (SCM)
-Planning
- Execution
- Control
Reduce costs and improve customer service while reducing overall inventory

Question 13

Marketing MIS

Answer 13

Functions & subsystems for:

• Research
• Products development
• Promotion
• Product pricing

Question 14

Human Resources MIS

Answer 14

Include:

• HR planning
• Personnel selection
• Recruiting
• Training & skills
• Scheduling
• Job placement
• Wage & salary admin (a subset of TPS)

Question 15

Customer Relationship Management (CRM)

Answer 15

Manage ALL aspects of customers
Goal: understand & anticipate needs of current and potential customers to increase retention + loyalty, optimizing the way products are sold

Used by:
Sales, marketing, service organ.

Benefits:
Improved customer satisfaction
Increase customer retention
Reduced operating costs
Ability to meet demand

Question 16

Geographic MIS

Answer 16

Typically embedded into other systems