application of operational information systems

8/9/2019 Application of Operational Information Systems

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APPLICATION OFOPERATIONALINFORMATION

SYSTEMS


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TASKS Pay cheques are calculated, printed &

distributed each week

Sales invoices are verified, calculated,

printed and mailed each month Purchase orders are verified, calculated,

printed and mailed each day

Potential customers are identified and called

each day


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OPERATIONAL IS (TPS)

IS – perform or support completion

of these tasks

Operational IS – produce routine,

repetitive, descriptive, expectedand obective data that describe

past activities


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OPERATIONAL IS / TPS Information produced

!sually detailed

"i#hly structured

$ccurate %erived from internal sources

Produced re#ularly


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MANAGEMENT ADVANTAGES Increases efficiency

un faster

equire less personnel than other manual

sys' Several benefits

educed cost

Increased speed

Increased accuracy

Increased customer service

Increased data for decision makin#


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HOW AN ON-LINE ORDER-ENTRYSYS. WORKS

(o illustrate how an on)line order)entry sys' works,

let*s examine how a manufacturin# firm mi#ht use

one to process orders' $t this firm, salespeople

with notebook computers equipped with modems

are responsible for enterin# customer orders at thecustomer site' (o create an order, salespeople

brin# up an order)entry screen like the one shown'

(he salespeople enter the customer*s name, and the

computer sys' at the home office supplies thecustomer*s number, address, city, state, pin code

and credit terms in the correct places on the

screen' (he order)entry sys' obtains these data

from the accounts receivable sys'


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(he salespeople then enter the stock number of

each item the customer orders' (he order)entry

sys' obtains the stock name, stock description, and

price for each item from the inventory sys' and

displays these data on the screen' +hen thesalespeople enter the quantity ordered, the

inventory sys' is queried to determine if enou#h

stock is on hand to fill the order'

(he salespeople continue this sequence of entriesand responses until the last item ordered has been

entered' (hen the order)entry sys' immediately

subtotals the order and verifies that the

customer*s credit is #ood'


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It then produces immediately, at the

appropriately located printer, a pickin# slip

for warehouse personnel to use to fill the

order from inventory shelves, a mailin# labelfor the carton, and a packin# slip to be

included in the carton with the completed

order' (he accounts receivable sys' then uses

the completed sales order to bill the cust'

and create and print the sales invoice'


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OPERATIONAL MARKETING IS asic #oal – satisfy needs & wants of

customers

Sales systems

$dvertisin# systems Sales promotion systems

+arehousin# systems

Pricin# systems

(o be effective – coordinate with other

or#ani-ational IS like purchasin# sys', inv'

sys', accounts receivable sys', order)entry

sys'


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IT Increased productivity of salespeople

"elped firms mana#e customers better

.ocate prospective customers

/ustomi-e marketin# efforts to specific#roups and individuals

educe costs

+idened reach of many or#ani-ations

$lso captures data useful for tactical &

strate#ic decisions


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SALES FORCE AUTOMATIONSYSTEMS %esi#ned to increase productivity of sales people

!sual Sales $ctivities Identifyin# potential cust'

/ontactin# cust'

/allin# on cust'

0akin# sales pitches

/losin# sales

1ollowin# up on sales

Supports administrative tasks of salespeople/ustomer contact mana#ement

/ustomer call reports

(ravel expense reports


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SALES FORCE AUTOMATIONSYSTEMS Support Sales process

0ana#in# sales cycle

Providin# electronic catolo#s

Providin# electronic sales presentations


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PROSPECT INFORMATIONSYSTEM .ocatin# potential customers

1iles of sales leads – prospects files – easier to search

or summari-e

2lectronic directory databases – source of sales leads

Outputs of prospect information systems .ists of prospects by location

.ists of prospects by cate#ory

.ists of prospects by income

.ists of prospects by other classifications Online databases – provide prospect information

Searched by database query software or plotted by

mappin# software


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CONTACT MANAGEMENT SYSTEM Provide information to sales force pertainin#

to customers, product or service

preferences, sales history data & historical

record of sales calls3visits Output – /all report

4o' of sales calls made by salesperson

4o'3amount of sales made per customer, per

visits, per cate#ory


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CONTACT MANAGEMENT SYSTEM Identify cust' who prefer certain types of

prods' or who may be ready to purchase

accessories for previous purchases

Sortin# dates of previous visits – identifycust' who may be runnin# out of prod' and

need to place another order

+hen stock has been placed on sale – notify

cust' who are interested in or who re#ularlypurchase these items


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OTHER SALES FORCEAUTOMATION SYSTEMS $lso provide support for other routine,

repetitive salesperson activities(ravel expense reports

$ppointment calendars(elephone & address details

Sales letter creation & distribution

2mail & fax

Internet access – info' on industry,competitors and customers


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MICROMARKETING & DATAWAREHOUSE SYS. 0icromarketin# – Pitchin# sales or advertisin#

campai#ns to narrowly defined customer tar#ets

/an be used – identify & tar#et specific

prospects from lar#e databases

$voids waste of resources

equires – %ata +arehouse

Purpose of data minin#

Identify new marketin# opportunities(o allow marketin# deptt' (o focus on sales,

advertisin# & promotional campai#ns on market

niches


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TELEMARKETING SYSTEMS

!se of telephone to sell

products & services

Improve productivity of salesforce

"as allowed firms to increase

sales and #ain market sharewhile decreasin# costs per sale


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DIRECT MAIL ADVERTISINGSYSTEMS

5enerate sales by mailin#

sales brochures & catalo#s

directly to customers /ustomer mailin# lists are

maintained


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POINT-OF-SALE SYSTEMS POS sys' /apture data about orders at point

of sale

Info' 1rom POS – input to financial acct#'

Sys' – input to marketin# info' Sys' POS sys' – provide immediate updates to

sales & inventory sys' & allow firms to

monitor sales trends

Provide cust' +ith terminals


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DELIVERY TRACKING & ROUTINGSYS. %elivery systems place small satellite dishes on

delivery vehicles & use 5PS to monitor movement &

location

Some firms even provide customers with tra!"#$

%%t' %*t+ar' to monitor status of theirpacka#es

1irms – route delivery vehicles – most efficient

manner

.ay out deliveries on electronic map & then havemappin# software identify best routes for delivery

vehicles save firms #reat deal of time & money

F',E lets customers use +ebsite on Internet totrack their packa#es


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ELECTRONIC SHOPPING &ADVERTISING 6irtual shoppin#7electronic shoppin#8

Interspace technolo#y – 6irtual env' shared by

many users & in which they can interact 6irtual stores & malls

2lectronic kiosks9iosks – computer terminals placed in walls or

other structures on streets and public places

!sed for marketin# purposes – multimedia

presentations & electronic catalo#s, /(

Provide :;)hr access to prods' & prod' info' to

customers

Internet advertisin#


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ASSIGNMENT

!se an Internet search tool to identify two

/ontact 0ana#ement software pro#rams'

4ote the features of each pro#ram, includin#

its cost' /reate a memo to your boss, Sales

0ana#er, comparin# the two pro#rams,

recommendin# one to purchase, and

ustifyin# the software in terms of sales force

productivity' Include the +eb site addresses

you used as references'


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RALSTON ELECTRIC COMPANY0elinda 9aikati, a sales mana#er for alston

2lectric company is considerin# providin# computer

support for her sales personnel' "er salespeople

sell electric motors to manufacturin# firms in seven

0idwestern states and spend most of their time onthe road' 0ost of them live in the area they serve'

+hile on the road, salespeople telephone in orders

to order clerks located at the main office who use

terminals connected to the firm*s mainframe' (hissystem allows the salespeople to confirm

immediately that enou#h stock is on hand to meet

each order and that the customer*s credit is

satisfactory'


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RALSTON ELECTRIC COMPANY

0s' 9aikati wants to know if there is computer

support that she can provide to her salespeople

to help them mana#e their sales activities so as

to improve their productivity and performance'

0s' 9aikati as asked you for help'Provide 0s' 9aikati with a list of potential

operational)level information systems

applications that mi#ht help her salespeople

mana#e their everyday sales activities moreefficiently and productively' 1or each application,

describe how the application will improve the

productivity and performance of the sales force'

application of operational information systems

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