9. Information Systems: ERP, CRM, SCM

Question 1

What is the relationship between data, information, and knowledge?

Answer 1

1. Data: Raw facts, not organized (e.g., numbers, symbols).
2. Information: Processed and contextually relevant data.
3. Knowledge: Actionable information combined with skills and experience.

Question 2

What is the difference between IS and IT?

Answer 2

1. IS: A group of components (hardware, software, data, procedures, people) to process and manage information.
2. IT: The technology used in IS (hardware, software, networks).

Question 3

What are the 4 key functions of IS?

Answer 3

1. Operational: Routine processes (e.g., payroll).
2. Monitoring: Performance checking and forecasting (e.g., OSIRIS).
3. Decision Support: Evaluate options and make decisions.
4. Communication: E-mail, IM, groupware, workflow systems.

Question 4

What are 5 common types of IS?

Answer 4

1. ERP: Enterprise Resource Planning (integrated internal processes).
2. CRM: Customer Relationship Management (customer-focused).
3. IOS: Inter-Organizational System (e.g., supply chain management).
4. MIS & BI: Management Information Systems and Business Intelligence.
5. Collaboration & KM Systems: Support teamwork and knowledge sharing.

Question 5

What is an ERP system?

Answer 5

Enterprise Resource Planning, A system that connects all departments through one database to share data.

Question 6

What are 4 benefits of ERP?

Answer 6

1. All departments use the same information.
2. Reduces duplicate work and errors.
3. Helps make better decisions with shared data.
4. Supports standard processes across the organization.

Question 7

What are 3 downsides of ERP systems?

Answer 7

1. Hard to Succeed: Most companies struggle to get the promised results.
2. High Costs: Expensive licenses, setup, and maintenance.
3. Changes Required: Companies may lose flexibility and have to follow strict rules.

Question 8

What is CRM

Answer 8

1. Customer Relationship Management. It’s a system or strategy used by businesses to manage their interactions with customers.
2. Customer acquisition: get new customers
3. Customer retention: keep customers
4. Customer extension: sell new products to existing customers
5. Customer selection: select customers to send marketing to

Question 9

What are the two types of CRM systems?

Answer 9

1. Operational CRM: Automates sales, marketing, and support tasks like call centers.
2. Analytical CRM: Collects and analyzes customer data for better decisions and planning.