IS FINAL Flashcards
What is a transaction? + 3 examples
any business event that generates data worthy of being captured and stored in a data- base. Examples of transactions are a product manufactured, a service sold, a person hired, and a payroll cheque generated. In another example, when you are checking out of Walmart, each time the cashier swipes an item across the bar code reader is one transaction.
What does a transaction processing system (TPS) do?
supports the monitoring, collection, storage, and processing of data from the organization’s basic business transactions, each of which generates data.
In the modern business world, TPSs are ________ for the ___________ ____ information systems and ________ __________systems, as well as business operations such as customer relationship management, knowledge management, and e-commerce
Inputs, functional area, business intelligence
How do transaction processing systems manage data?
- Business event/transaction
- TPS
2a. Detailed reports - Organization’s database, where FAIS, DSS, BI, Dashboards, and ES occur
When more than one person or application program can access the database at the same time, the database has to be protected from errors resulting from overlapping updates. The most common error is…
Losing the results of one of the updates
TPS handle the complexities if transactional data by…
•Protect database from errors resulting from overlapping updates
•Protection against inconsistencies arising from a failure of any component at any time. Does this ATM communicate with other connected devices in the bank?)
•System must be able to reverse or make corrections or adjustments to transactions
•All transactions plus corrections, reversals or adjustments need to have an audit trail
What are the 2 ways to process data in TPS?
Batch processing and online processing
What is batch processing?
The firm collects data from transactions as they occur, placing them in groups orbatches. The system then prepares and processes the batches periodically (say, every night).
What is online transaction processing?
business transactions are processed online as soon as they occur. For example, when you pay for an item at a store, the system records the sale by reducing the inventory on hand by one unit, increasing sales figures for the item by one unit, and increasing the store’s cash position by the amount you paid. The system performs these tasks in real time by means of online technologies.
What is a functional area information systems?
Functional Area Information Systems (FAIS) provide support for the various functional areas in an organization by increasing each area’s internal efficiency and effectiveness.
Where do fais get data?
Corporate databases
Thw 2 Problems of inventory management are
Excessive inventory
Insufficient inventory
Economic solution for inventory management is
Economic order quantity
Technological solution for managing inventory
VMI (vendor managed),
Its real time and AI powered
Inventory systems that use an EOQ approach are designed for items that are _________ _____
Completely independent
Why does HR need IS and how can they solve those problems?
- electronic transfer of money to employees’ account
- payroll prep
Can use FAIS to automate this routine
Why can fais be ineffective?
Lack of communication between departments
What does an ERP do?
An ERP corrects a lack of communication among the functional area ISs. ERP systems resolve this problem by tightly integrating the functional area IS via a common database.
What are the two main objectives of the ERP systems
Tightly integrate the functional areas of the organization and to enable information to flow seamlessly across them
What are ERP II systems?
Interorganizational systems that are Capable of providing web-enabled links between a company’s key business systems and its customers, suppliers,distributors, and others.
What are the 3 core ERP Modules
Accounting and finance, Manufacturing and production, human resources
What are the four extended Erp II modules
Supply chain management, business intelligence, E business, customers relationship management
What are the major benefits of ERP systems
Organizational flexibility and agility
Decision support
Quality and efficiency
What are the major limitations of ERP systems
- Business process and ERP often pre-defined by the best practises that the ERP vendor has developed
- Complex, expensive, time consuming
What are the major causes of ERP implementation failure?
- Failure to involve affected employees in the planning and development phases and in change management processes
- Trying to accomplish too much too fast in the conversion process
- Insufficient training in the new work tasks required by the ERP system
- Failure to perform proper data conversion and testing for the new system
What are the 3 strategic approaches to implementing an on premise eps system
Vanilla approach
Custom approach
Best of breed approach
What is the vanilla approach?
Pros and cons
approach, a company implements a standard ERP package, using the package’s built-in configuration options. When the system is implemented in this way, it will deviate only minimally from the package’s standardized settings. The vanilla approach can enable the company to perform the implementation more quickly. However, the extent to which the software is adapted to the organization’s specific processes is lim- ited. Fortunately, a vanilla implementation provides general functions that can support the firm’s common business processes with relative ease, even if they are not a perfect fit for those processes.
What is the custom approach?
Pros and cons
In this approach, a company implements a more customized ERP system by developing new ERP functions designed specifically for that firm. Decisions con- cerning the ERP’s degree of customization are specific to each organization. To use the custom approach, the organization must carefully analyze its existing business processes to develop a system that conforms to the organization’s particular characteristics and pro- cesses. Customization is also expensive and risky because computer code must be written and updated every time a new version of the ERP software is released. Going further, if the customization does not perfectly match the organization’s needs, then the system can be very difficult to use.
What is the best of breed approach?
Pros and cons
Modify vanilla approach
What is SAAS ERP?
Lease ERP software that is cloud-based normally using the vanilla approach
What are 3 prominent examples of cross-departmental processes
- procurement (need to buy -> send payment
- fulfillment process (customer request to buy -> recieve payment)
- production process (need to produce -> recieve finished goods)
In what departments does the procurement process occur?
Warehouse, Purchasing, Accounting
What are the 3 main departments of the order fullfillment process?
Sales, warehouse, accounting
Does the production occur in all companies?
No, because not all companies produce physical goods
What do SCM and CRM processes do?
Help multiple firms in an industry coordinate activities such as the production-to-scale of goods and services.
What do ERP SCM systems do?
Have the capability to place automatic requests to buy fresh perishable products from suppliers in real-time.
What do ERP CRM systems do?
Generate forcasting analyses of product consumption based on critical variables such as geographical area, season, day of the week, and type of customer
What are Ad hoc reports
Ad hoc (or on-demand) reports: Nonroutine reports that often contain special information that is not included in routine reports.
What are comparative reports?
Reports that compare performances of different business units or times.
What is an enterprise application integration (EAI) system?
A system that integrates existing systems by providing layers of software that connect applications together.
What are comparative reports?
Reports that compare performances of different business units or times.
What are drill-down reports?
Reports that show a greater level of details than is included in routine reports.
What are exception reports
Reports that include only information that exceeds certain threshold standards.
What are key indicator reports?
Reports that summarize the performance of critical activities.
What is the order fulfillment process?
A cross-functional business process that originates when the company receives a customer order, and it concludes when it receives a payment from the customer.
What is a procurement process?
A cross-functional business process that originates when a company needs to acquire goods or services from external sources, and it concludes when the company receives and pays for them.
What is a production process?
A cross-functional business process in which a company produces physical goods.
Today, supply chain management is an integral part of all organizations and can improve _______ _____ and reduce ______ ______
Customer service, oprtating costs
What is customer relationship management (CRM)
a customer-focused and customer-driven organizational strategy. That is, organizations concentrate on assessing customers’ require- ments for products and services and then provide a high-quality, responsive customer experi- ence.
The CRM process begins with
marketing efforts, through which the organization solicits prospects from a target population of potential customers.
An organization’s overall goal is to maximize the ________ ______ of a customer, which is that customer’s potential revenue stream over a number of years.
Lifetime Value
Over time all organizations inevitably lose a certain percentage of customers, a process called…
Customer churn
Although CRM varies according to circumstances, all successful CRM policies share two basic elements:
(1) The company must identify the many types of customer touch points, and (2) it needs to consolidate data about each customer.
Who use low-end crm systems?
Enterprises with many small customers (i.e. amazon)
Who uses high-end crm systems
Enterprises with a few large customers i.e. bentley
What are customer touch points?
Diverse interactions organizations have with their customers
What is a reason customer touch points can lead to channel conflicts?
All touch points may not be in sync
What is omni-channel marketing?
an approach to customers that creates a seamless experience regardless of the chan- nel (or device) used to “touch” the business. Many businesses are now creating omni-channel strategies to drive this cohesive experience for their customers.
What are Collaborative CRM systems? And what leads to them?
•Info. sharing leads to collaborative CRM.
•Collaborative CRM systems provide effective and efficient interactive communication with the customer throughout the entire organization.
•Collab. CRM integrate communications between the organization and its customers in all aspects of marketing, sales, and customer support.
Customer-related data is available to every unit of the business because of….
Modern interconnected systems built around a data watehouse
A complete data set on each customer is called…
A 360 degree view of that customer
2 reasons having a 360 degree view is good for the company
•A360°view enhances company’s relationship with its customers and ultimately make more productive and profitable decisions.
What are operational CRM systems?
The component
of CRM that supports the front-office business processes that directly interact with customers (i.e., sales, marketing, and service).
What 3 benefits do operational crm systems provide?
- Efficient, personalized marketing, sales, and service
- A 360o view of each customer
- The ability of sales and service employees to access a complete history of customer inter- action with the organization, regardless of the touch point
What objectives can be accomplished with CRM tools (5)?
- Improve sales and account management by optimizing the information shared by mul- tiple employees and by streamlining existing processes (e.g., taking orders using mobile devices)
- Form individualized relationships with customers, with the aim of improving customer sat- isfaction and maximizing profits
- Identify the most profitable customers, and provide them with the highest level of service
- Provide employees with the information and processes necessary to know their customers
- Understand and identify customer needs, and effectively build relationships among the company, its customer base, and its distribution partners
What is a customer-facing CRM application?
In customer-facing CRM applications, an organization’s sales, field service, and customer interaction centre representatives interact directly with customers. These applications include customer service and support, salesforce automation, marketing, and campaign management.
What are 7 types of customer touching applications
Search and comparison Technical information and services Customized products and services Personalized webpages FAQs Email and automated response Loyalty programs
What are the four types of customer facing applications
Customer service and support
Sales (salesforce automation)
Marketing
Campaign management
What is salesforce automation
Salesforce automation (SFA) is the component of an oper- ational CRM system that automatically records all of the components in a sales transaction process.
What is cross-selling
the marketing of additional related products to customers based on a pre- vious purchase.
What is bundling
Bundling is a form of cross-selling in which your business sells a group of products or services together at a lower price and their combined individual prices
What do campaign management applications do
Campaign management applications help organizations plan campaigns that send the right messages to the right people through the right channels.
What are analytical CRM systems?
Analytical CRM systems provide business intelligence by analyzing customer behaviour and perceptions
What are some reasons why analytical CRM systems analyze consumer data?
- Designing and executing targeted marketing campaigns
- Increasing customer acquisition, cross-selling, and upselling
- Providing input into decisions relating to products and services (e.g., pricing and product development)
- Providing financial forecasting and customer profitability analysis
What is the relationship between operational CRM’s and analytical CRM
Need Operational for analytical
What is a supply chain?
The flow of materials, information, money, and services from raw material suppliers, through factories and warehouses, to the end customers. A supply chain also includes the organizations and processes that create and deliver products, information, and services to the end customers.
What is supply chain visibility?
Supply chain visibility refers to the ability of all organizations within a supply chain to access or view relevant data on purchased materials as these materials move through their suppliers’ production processes and transportation networks to their receiving docks.
What were the three segments of the supply chain
Upstream
Internal
Downstream
What is the upstream segment of a supply chain?
Soucing/procurement from external suppliers occurs
Supply chain managers select suppliers to deliver things company needs to produce the final good or service
supply chain managers develop the pricing, delivery, and payment processes between a company and its suppliers. Included here are processes for managing inventory, receiving and verifying shipments, transferring goods to manufacturing facilities, and authorizing payments to suppliers.
What is the internal segment of a supply chain?
Packaging, assembly, or manufacturing takes place
 Supply chain managers schedule the activities necessary for production, testing, packaging, and preparing goods for delivery. They also monitor quality levels, production output, and worker productivity.
What is the downstream segment of a supply chain?
Distribution takes place, frequently by external distributors
In this segment, supply chain managers coordinate the receipt of orders from custom- ers, develop a network of warehouses, select carriers to deliver products to customers, and implement invoicing systems to receive payments from customers
What is the tier of suppliers?
Tier 3: basic i.e. glass, rubber
Tier 2: windshields, tires
Tier 1: dashboards, cars
What are the 3 types of flows in a supply chain?
Material, information, financial
What is the function of supply chain management?
To improve the processes a company uses to acquire the raw materials it needs to produce a product or service and then deliver that product or service to its customers
What are the five basic components of SCM supply chain management
Plan Source Make Deliver Return
What is the push model?
Also known as made-to-stock
Starts with a forecast of customer demand
Company thenproduces the number of products in the forecast, typically by using mass production, and sells, or “pushes,” those products to consumers.
Usually incorrect!
What is the pull model?
Also known as make to order
Begins with an order then is produced
Not all companies can use the pull model
What are the 3 main sources of problems along the supply chain?
Uncertainties
The need to coordinate multiple activities, internal units, and business partners
Bullwhip effect
What is the bullwhip effect?
erratic shifts in orders up and down the supply chain
2 problems that occur with the bullwhip effect
Hoarding
Stockpiling
What is vertical integraton?
a business strategy in which a company purchases its upstream suppliers to ensure that its essential supplies are available as soon as the company needs them.
What is just in time inventory system?
Getting inventory right when you need it
What is vendor managed inventory?
supplier, rather than the retailer, manages the entire inventory process for a particular product or group of products
What 3 technologies provide support for supply chain management/IOSs
Electronic data interchange
Extranets
Portals and exchanges
What is electronic data interchange (edi)?
Electronic data interchange (EDI) is a communication standard that enables business partners to exchange routine documents, such as purchasing orders, electronically
How does EDI provide benefits?
Minimizes data entry errors, shorter length of message, message security, reduce the cycle time, increases productivity, enhances customer service, minimizes paper
Disadvantages of EDI
Business processes and sometimes be restricted to fit idiot requirements, many EDI standards
What are extranets?
They link business partners over the Internet by providing them access to certain areas of each other’s corporate Intranets
Extranets use_____to make communication over the Internet more secure
VPN
What are the two basic types of corporate portals
Procurement portals and distribution portals
What is a procurement portal
Automate the business processes involved in purchasing or procuring products between a single buyer and multiple sellers
What is a Distribution portal
Automate The business process involved in selling or distributing products from a single supplier to multiple buyers
What is a computer network?
A system that connects computers and other devices via communications media so that data and information can be transmitted among them
What are front offuce processes
front-office processes Processes that directly interact with customers; that is, sales, marketing, and service.
What is bandwidth
The transmission capacity of a network, stated in bits per second
What is broadband
The transmission capacity of a communications medium that is faster than 25 Mbps.
What is a domain name system (dns)
The system administered by the Internet Corporation for Assigned Names and Numbers (ICANN) that assigns names to each site on the Internet.
What is a domain name
The name assigned to an Internet site, which consists of multiple parts, separated by dots, that are translated from right to left.
What is an extranet
network that connects parts of the intranets of different organizations.
What is a fibre optic cable
A communications medium consisting of thousands of very thin filaments of glass fibres, surrounded by cladding, that transmit information through pulses of light generated by lasers.
What is an intranet
A private network that uses Internet software and TCP/IP protocols
What is a local area. Etwork (LAN)
A network
that connects communications devices in
a limited geographic region, such as a building, so that every user device on the network can communicate with every other device.
What are network access points (naps)
Computers that act as exchange points for Internet traffic and determine how traffic is routed.
What is peer to peer processing
A type of client/server distributed processing that allows two or more computers to pool their resources, making each computer both a client and a server.
What is a protocol
The set of rules and procedures that govern transmission across a network.
What is a router
A communications processor that routes messages from a LAN to the Internet, across several connected LANs, or across a wide area network such as the Internet.
What is Transmission Control Protocol/Internet Protocol (TCP/IP)
A file transfer protocol that can send large files of information across sometimes unreliable networks with the assurance that the data will arrive uncorrupted.
What is Hypertext Transport Protocol (HTTP)
The communications standard used to transfer pages across the WWW portion of the Internet; it defines how messages are formulated and transmitted.
MAN
MANs are relatively large networks that cover a metropolitan area. MANs fall between LANs and WANs in size.
Types of computer networks small to large
PAN LAN MAN WAN Internet
Although it is not required, many LANs have a…
File server or network server
WAN
A wide area network (WAN) is a network that covers a large geographical area. WANs typically connect multiple LANs. They are generally provided by common carriers such as tele- phone companies and the international networks of global communications services providers.
WANs contain
Routers
Enterprise network
Interconnected networks with multiple lans and wans
Backbone networks
Are high-speed central networks to which multiple smaller networks (such as LANs and smaller WANs) connect
What is a communications channel
A pathway to communicate data. It is made up of two types of media: cable (twisted- pair wire, coaxial cable, or fibre-optic cable) and broadcast (microwave, satellite, radio, or infrared).
What is wireline/cable media
Wireline media or cable media use physical wires or cables to transmit data and infor- mation
Twisted pair wire
most prevalent form of communications wiring— twisted-pair wire—is used for almost all business telephone wiring. As the name suggests, it consists of strands of copper wire twisted in pairs
3 basic functionS of TCP
(1) It manages the movement of data packets (see further on) between computers by establishing a connection between the computers,
(2) it sequences the transfer of packets, and
(3) it acknowledges the packets that have been transmitted
Function of internet protocol IP
The Internet Protocol (IP) is responsible for disassembling, delivering, and reassembling the data during transmission.
Before data are transmitted over the Internet, they are divided into small, fixed bundles called
Packets
What are the 4 layers of the TCP/IP reference model?
Application
Transport
Internet
Network interface
The transmission technology that breaks up blocks of text into packets is called
Packet switching
Why do organizations use packet switching?
The main reason is to achieve reliable end-to- end message transmission over sometimes-unreliable networks that may have short-acting or long-acting problems.
Application layer TCP/IP + example
application layer enables client application programs to access the other lay- ers, and it defines the protocols that applications use to exchange data. One of these application protocols is the Hypertext Transfer Protocol (HTTP), which defines how messages are formulated and how they are interpreted by their receivers.
Transport layer of TCP/IP and one protocol in it
transport layer provides the application layer with communication and packet services. This layer includes TCP and other protocols.
Internet layer and one protocol in it
Internet layer is responsible for addressing, rout- ing, and packaging data packets. The IP is one of the protocols in this layer.
Network interface layer TCP/IP
the network interface layer places packets on, and receives them from, the network medium, which can be any networking technology.