Test 4 Flashcards
eIntegration
- the use if the Internet to provide customers with the ability to gain personalized information by querying corporate databases and their information sources
Application integration
- the integration of a company’s existing management information systems
Data integration
- the integration of data from multiple sources, which provides a unified view of all data
3 primary enterprise systems
(1) Supply Chain Management
(2) Customer Relationship Management
(3) Enterprise Resource Plannin
Forward integration
- takes information entered into a given system and sends it automatically to all downstream systems and processes
Backward integration
- takes information entered into a given system and sends it automatically to all upstream systems and processes
Enterprise Application Integration (EIA)
- connects the plans, methods, and tools aimed at integrating separate enterprise systems
Middleware
- several different types of software that sit between and provide connectivity for two or more software applications
Enterprise Application Integration (EAI) middleware
- takes a new approach to middleware by packaging commonly used vendors
Supply Chain 3 main business processes are:
(1) Supply chain visibility:
(2) Supply chain execution systems:
(3) Supply chain planning:
Bullwhip effect
- occurs when distorted product-demand information ripples from one partner to the next throughout the supply chain
Supply Chain Management (SCM)
- the management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and corporate profitability
Challenges of SCM
- main challenges include costs and complexity
5 basic supply chain activities
(1) Plan
: prepare to manage all resources required to meet demand
(2) Source
: build relationships with suppliers to procure raw materials
(3) Make
: manufacture products and create production schedules
(4) Deliver
: plan for transportation of goods to customers
(5) Return
: support customers and product returns
Customer relationship management (CRM)
- a means of managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability
Operational vs Analytical CRM
- operational: supports traditional transactional processinf for day-to-day front-office operations or systems that deal directly with customers
- analytical: supports back-office operaions and strategic analysis and includes all systems that do not deal directly with the customers
3 CRM Tools
(1) Marketing
: list generator, campaign management, cross-selling and up-selling
(2) Sales
: sales management, contact management, opportunity management
(3) Customer Service
: contact center, web-based self-service, call scripting
List generators
- compile customer information from a variety of sources and segment it for different marketing campaigns
Campaign Management Systems
- guide users through marketing campaigns by performing such tasks as campaign definition, planning, scheduling, segmentation, and success analysis
Cross-selling
- selling additional products or services to an existing customer
Up-selling
- is increasing the value of the sale
Effective and efficient supply chain management can impact what 5 things:
(1) Decrease the power of its buyers
(2) Increase its supplier power
(3) Increase buyers’ switching costs to reduce the threat of substitute products or services
(4) Create entry barriers to reduce the threat of new entrants
(5) Increase efficiencies while seeking a competitive advantage through cost leadership
Benefits of CRM
- allows a company to operate more effeciently and effectively in the area of supporting customer needs
- RFM formula: how Recently a customer purchased items, how Frequently a cutsomer purchases items, and the Monetary Value of each customer purchase
Challenges of CRM
- the customer can now take their power directly to millions of people, and companies have to listen to them
Why are call centers important?
- Maintaining a high level of customer support is critical to obtaining and retaining customers
3 phases of CRM evolution
(1) Reporting
: customer identification (ask what happened)
(2) Analyzing
: customer segmentation (ask why it happened)
(3) Predicting
: customer prediction (ask what will happen)
The 3 future types of CRM’s?
(1) Supplier relationship management (SRM)
: focuses on keeping suppliers satisfied by evaluating and categorizing suppliers for different projects
(2) Partner relationship management (PRM)
: discovers optimal sales channels by selecting the right partners and identifying mutual customers
(3) Employee relationship management (ERM)
: provides web-based self-service tools that streamline and automate the human resource department
CRM reporting technologies
- help organizations identify their customers across other applications
CRM analysis technologies
- help organizations segment their customers into categories such as best and worst customers
CRM predicting technologies
- help organizations predict customer behavior, such s which customers are at risk of leaving
Four ways a CRM can track information?
(1) Accounting System
(2) Order Fulfillment System
(3) Inventory System
(4) Customer Service System
Sales Force Automation System
- automatically tracks all the steps in the sales process
Sales Management CRM System
- automate each phase of the sales process, helping individual sales representatives coordinate and organize all their accounts
Contact Management CRM System
- maintains customer contact information and identifies prospective customers for future sales, using tools such as organizational charts
Opportunity Management CRM System
- target sales opportunities by finding new customers or companies for future sales
Contact Center
- where customer service representatives answer customer inquiries and solve problems, usually by email, chat, or phone
Web-based self service
- allow customers to use the web to find answers to their questions or solutions to their problems
Call scripting
- gather product details and issue resolution information that can be automatically generated into a script for the representative to read to the customer
Automatic call distribution
- routes inbound calls to available
Interactive voice response
- directs customers to use touch-tone phones or keyboards to navigate or provide information
Predictive dialing
- automatically dials outbound calls and forwards answered calls to an available agent
Enterprise Resource planning (ERP)
- integrates all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so employees can make decisions by viewing enterprisewide information about all business operations
3 core ERP components and examples of each:
(1) Accounting and finance
(2) Production and materials managememnt
(3) Human resources
4 Extended ERP Components and examples of each:
(1) Business Intelligence
: collect information used throughout the organization, organize it and apply analytical tools to assist managers with decisions
(2) Customer Relationship Management
: include contact centers, sales force automation, and advanced marketing functions
(3) Supply Chain Management
: functions that manage the information flows between and among supply-chain stages, maximizing total supply-chain effectiveness and profitability
(4) Ebusiness
: allow companies to establish an internet presence and fulfil online orders through elogistics (managins transportation and storage) and eprocurement (business to business online purchase)
Primary users of
CRM
SCM
ERP
CRM
: Sales, Marketing, and Customer Service
SCM
: customers, Resellers, Partners, Suppliers, and Distributors
ERP
: Accounting, Finance, Logistics, and Production
Challenges of ERP
- main challnege is cost
- contains multiple complex components that are not only expensive, but also expensive to implement
4 common supply chain management metrics
(1) back order
: an unfulfilled customer order for a product that is out of stock
(2) inventory cycle time
: the time it takes to manufacture a product and deliver it to the retailer
(3) Customer order cycle time
: the agreed upon time between the purchase of a product and the delivery of the product
(4) Inventory turnover
: the frequency of inventory replacement
Benefits of ERP
1st generation
: improved the manufacturing process through automation
2nd generation
: addressed customer issues including marketing and sales
3rd generation
: allowed companies to compete on functional level by adopting an enterprise approach to using the internet to connect all participants
Legacy system
- an old system that is fast approaching or beyond the end of its useful life within an organization
Conversion
- the process of transferring information from a legact system to a new system
Software customization
- modifies software to meet specific user or business requirements
Off-the shelf application and software
- supports general business processes and does not require any specific software customization to meet teh organization’s needs
7 phases of the systems development life cycle (definitions and examples)
(1) Planning phase
: brainstorm issues and identf opportunities for teh organization
: prioritize and choose projects for development
: set the projct scope
: develop the project plan
(2) Analysis phase
: gather the business requirement for teh system
: define any constraints associated associated with the system
(3) Design
: design the technical architecture required to support the system
: design the system models
(4) Development
: build the techinical architecture
: build the database
: build the applications
(5) Testing
: write teh test conditions
: perform system testing
(6) Implementation
: write detainled user documentation
: provide training
(7) Maintenance
: build a help desk to support the system users
: provide an environment to support system changes
Waterfall methodology (definition and examples)
- a sequence of phases in which the output of each phase becomes the input for the next
Agile methodology types (definitions and examples)
- aims for customer satisfaction through early and continuous delivery of useful software components developed by an iterative process using the bare minimum requirements
Requirements management
- the process of managing changes to the business requirements throughout the project
Requirements definition document
- prioritizes all of the business requirements by order of importance to the company
Sign-off
- the users’ actual signatures indicating they approve all of the business requirements
Project deliverables
- any measurable, tangible, verifiable outcome, result, or item that is produced to complete a project or part of a project
Characteristics of successful projects
S- specific M- measurable A- agreed upon R- realistic T- time frame
Software engineering
- a disciplined approach for constructing information systems through the use of common methods, techniques, or tools
Computer-aided software engineering
- tools, which provide automated support for the development of the system
Control objects for information and related technology
- is a set of best practices that helps an organization to maximize the benefits of an information system, while at the same time establishing appropriate controls to ensure minimum errors
Scripting language
- a programming method that provides for interactive modules to a website
Object oriented languages
- group data and corresponding processes into objects
Fourth generation languages
- programming languages that look similar to human languages
Project manager’s (definition andexamples)
- an individual who is an expert in project planning and management, defines and develops the project plan, and tracks the plan to ensure the project is completed on time and on budget
Corrective maintenance
- makes system changes to repair design flaws, coding errors, or implementation issues
Preventive Maintenance
- makes system changes to reduce the chance of future system failure
6 different forms of system testing
(1) Alpha testing
: assess if thje entire system meets the design requirements of the users
(2) Development testing
: test the system to ensure it is bug-free
(3) System Testing
: verify that the units or pieces of code function correctly when integrated
(4) User Acceptance Testing
: determine if the system satisfies the user and business requirements
(5) Integration Testing
: verify that separate systems can work together, passing data back and forth correctly
(6) Unit Testing
: test individual units or pieces of code for a system
4 System Implementation Methods
(1) Parallel Implementation
: uses both the legacy system and new system until all users verify that teh new system functions correctly
(2) Plunge Implementation
: discards teh legacy system and immediately migrates all users to the new system
(3) Pilot Implementation
: assigns a small group of people to use the new system until it is verified that it works correctly: then the remaining users migrate to the new system
(4) Phased Implementation
: installs the new system in phases until it is verified that it works correctly
7 examples of System Reports
(1) Internal report
: presents data that are distributed inside the organization and intended for employees within an organization
(2) Detailed internal report
: presents information with little or no filtering or restrictions of the data
(3) Summary internal report
: organises and categorizes data for managerial perusal
(4) Exception reporting
: highlights situations occurring outside of the normal operating range for a condition or standard
(5) Informationsystem control report
: ensures the reliability of information, consistinf of policies and their physical implementation, access restrictions, or record keeping of actions and transactions
(6) Information systems audit report
: assesses a company’s information system to determine necessary changes and to help to ensure the information system’s availability, confidentiality, and integrity
(7) Post-implementation report
: presents a formal report or audit of a project after it is up and running
Disadvantages of the waterfall methodology
- any flaws in accurately defining and articulating the business problme in terms of what teh business users actually require flow onward to the next phase
- managing costs, resources, and time constraints is difficult
- the methodology assumes that users can specify all business requirements in advance
Fundamentals of RAD
- focus initially on creating a prototype that looks and acts like the desired system
- actively involve system users in the analysis, design, and development phases
- accelerate collecting the business requirements through an interactive construction approach
6 types of feasibility studies
(1) Economis feasibility
: measures the cost-effectiveness of a project
(2) Operational feasibility
: measures how well a solution meets the identified system requirements to solve the problems and take advantage of opportunities
(3) Schedule feasibility
: measures teh project time frame to ensure it can be completed in time
(4) Technical feasibility
: measures the practicality of a technical solution and the availibility of technical resources and expertise
(5) Political feasibility
: measures how well the solution will be accepted in a given organization
(6) Legal feasibility
: measures how well a solution can be implemented within existing legal and contractual obligations
Well-defined project plan includes what 5 things?
(1) estimates for revenue and strategic necessities
(2) meausrement and reporting methods
(3) details as to how top leadership will engage in the project
(4) information stakeholders of the benefits of the project
(5) justification of the investment, commitment, and risk of the project as it relates to the overall mission of the organization
PERT
- Program Evaluation and Review Technique
- a graphical network model that depicts a project’s tasks and the relationships between them
Gnatt chart
- a simple bar chart that lists project tasks vertically against the project’s time frame, listed horizontally
Critical path
- estimates the shortest path through the project ensuring all critical tasks are completed from start to finish
Dependency
- a logical relationship that exists between the project tasks, or between a project task and milestone
13 Elements of Project Management
(1) Communication plan
(2) Executive sponsor
(3) Project assumption
(4) Project constraint
(5) Project deliverable
(6) Project management office
(7) Project milestone
(8) Project objectives
(9) Project requirements document
(10) Project scope statement
(11) Project stakeholder
(12) Responsibility matrix
(13) Status Report
Kill switch
- a trigger that enables a project manager to close the project before completion
Prototype
- a modern design approach where the designers and system users use and interactive approach to building the system
Discovery prototyping
- builds a small-scale
In-sourcing
-uses the professional expertise within an organization to develop and maintain its information technology systems
Outsourcing
- an arrangement by which on organization provides a service or services for another organization that chooses not to perform them in-house
4 reasons companies outsourcing
(1) core competencies
(2) fianacial savings
(3) rapid growth
(4) the internet and globalization
Onshore outsourcing
- engaging another company within the same country for services
Nearshore outsourcing
- contracting an outsourcing arrangement within a company in a nearby country
Offshore outsourcing
- using organizations from developing countries to write code and develop systems
Benefits of outsourcing
- increased quality and efficiency of business processes
- reduced operating expenses for head count and exposure to risk for large investments
- access to outsourcing service provider’s expertise
- increased flexibility for faster response to market changes
Challenges of outsourcing
- length of contract
- threat to competitive advantage
- loss of confidentiality
