mgmt info sys

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UNIT1

INFORMATION SYSTEM

An information system can be any organised combination of people, hardware, software,

communications, networks, & data resources that collects, transforms & disseminates

information in an organisation.

Value of information which is derived directly from the change in decision behaviour due

to provision of information, has a cost & it must be deleted from the gain from its use to arrive at

its value.

An information system (IS) is typically considered to be a set of interrelated elements or

components that collect(input), manipulate(processes), and disseminate (output) data and

information and provide a feedback mechanism to meet an objective.

Open System Close System

There are 5 element in an information system, which are as follows: (i) People, (ii) Data

resources, (iii) Hardware, (iv) Software, and (v) Communication network.

COMPONENTS OF IS:

The physical components of any information system are: (i) Operating personnel, (ii) Data, (iii)

Hardware, (iv) Software, (v) Procedures, (vi) Networking

Actors/Active Agents

Instructors

HARDWARESOFTWARE

PROGRAMSDATA PROCEDURES PEOPLE

Machine Human

Act as a Bridge between Machine & Human

TYPES OF IS:

There are 6 major types of information systems;

Transaction processing system (TPS): A transaction processing process system (TPS) helpsin conducting the daily routine activities like sales order entry, airline reservations, payroll

etc.


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Office system: Some of the tasks involved in the administration of an office are storageof data, manipulation of data, documentation, communication etc. To increase the

efficiency of these activities various word processors, image processors,

telecommunications systems, networks are adopted. This constitutes the offices systems.

Knowledge Based System (KBS): KBS is a system that represents knowledge. Abundantinformation is available today. These information are representatives of various facts &

figures. These constitute knowledge base. The system adopted is capable of quick data

acquisition & interpretation of the data which is necessary in decision making. This

system is used as an expert to give expert advice on various subject matters & at time as

a consultant. Such a system is known as knowledge based system.

Decisionsupport system (DSS): Managers are usually faced with challenges which areunstructured. The problems they face are normally under situations involving

uncertainties& risks. Decision making becomes very difficult under such situations. A

system which provides solutions to such problems is known as decision support system

(DSS).

Management Reporting Systems (MRS): Management reporting system (MRS) helpsthe management in decisionmaking by providing them with reports and different

statistical tools.

Executive support systems: Executive support systems helps the senior executives inthe organization in decision making through advanced graphics and communication.

There are 2 imp types: (a) Operations Support System, (b) Management Support System

Operations Support System:Operations support systems (also called operational supportsystems or OSS) are computer systems used by telecommunications service providers. The term

OSS most frequently describes "network systems" dealing with the telecom network itself,

supporting processes such as maintaining network inventory, provisioning services, configuring

network components, and managing faults. The complementary term business support

systems or BSS is a newer term and typically refers to business systems dealing with customers,

supporting processes such as taking orders, processing bills, and collecting payments.

Management Support System: When information systems focus on providing information

and support for effective decision making by managers, they are called management support

systems.

LIMITATIONS OF INFORMATION SYSTEMS

Loss of the Human Element Information systems cannot present all kinds of information accurately:

Thick information, which is rich in meaning and not quantifiable, is best suited tohuman analysis.
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Information systems should support face-to-face communication, and not beexpected to replace it

Causes of Difficult Implementations Information systems can be hard to develop and put into service. Consistent standards for systems do not exist.

Makers of hardware use different standards which makes it hard to shareinformation between systems.

To avoid problems: List major organization goals and the information types require measure those

goals.

Audit the current system to verify that information collected is accurate, reliable,timely, and relevant.

Investigate other sources of information

Build support for the system with workers. Create formal training programs. Emphasize that face-to-face contact is important.

MANAGEMENT INFORMATION SYSTEM

It is well known fact that organizations grow in level and also in their complexity of

functioning. Tremendous amount of information is generated ever year, most of it goes into the

archives without any reference to it the future. Also information which is needed by the

organization for different applications is not possible to be made available at the right time at

the right level. MIS is considered as one such method of generating information which is used by

management of organization for decision making, control of activities, operations etc.

MIS is defined as a system providing information support for decision making in theorganization.

MIS is defined as an integrated system of man & machine for providing information tosupport operations, management & decision making functions in the organization.

MIS is defined as a system based on database of the organization evolved for the purpose ofproviding information to the people in the organization.

MIS is defined as Computer Based information system.MIS is a computerized transaction processing system generating information for the

people in the Organization to meet the information needs for decision making to achieve the

corporate objectives of the organisation.

ROLE OF MIS:


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The role of MIS can be compared with the role heart plays in the body. The information is the

blood & MIS is the heart.

a) MIS plays exactly the same role in the Organization. The system ensures that appropriatedata is collected from various sources & processed & sent further to all needy

destinations.b) MIS helps in strategic planning, Mgmt. control, Operational control & Transaction

processing.

c) MIS helps clerical personnel in transaction processing & answering the queries on thedata pertaining to transaction.

d) MIS helps junior mgmt. personnel by providing operational data for planning, scheduling& control, & helps them further in decision making at operations level to correct an out of

control situation.

e) MIS helps middle mgmt. in shorty term planning, target setting & controlling the businessfunctions.

f) MIS helps top mgmt. in strategic planning, goal setting, evolving business plans & so on.g) MIS plays the role of information generation, communication, problem identification &

helps in solving the problem by decision making or aiding the process of decision making.

MIS therefore, plays a vital role in the mgmt., administration & operations of the

organisations.

h) In any organization managers will have varieties of tasks to manage. MIS is mainlydesigned to take care of the needs of the managers in the organization.

i) Organizations will have different departments like marketing, production, sales,inventory, maintenance etc. Each of these departments function individually and also inrelationship with other departments. Information is available in abundance. MIS aids in

integrating the information generated by various departments of the organization.

j) MIS helps in identifying a proper mechanism of storage of data. The data ismaintained in such a way that the unnecessary duplication of data is avoided.

k) MIS also helps in establishing mechanism to eliminate redundancies in data.l) MIS as a system can be broken down into sub systems. Each such sub system may

be programmed. This results in easy access of data, accuracy of data and information. It

helps in maintaining the consistency of data.

IMPACT OF MIS:

MIS has a major impact on the functions of any organization. The organization derives benefits

from the systems in the following form:

a. speedy access to information,b. interpretation of data,c. quick decisions,


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d. speedy actions,e. increased productivity and thereby increase in the profit,f. reduced transaction cost

The usage of Electronic media for data storage and processing the data is an integral

part of MIS. The texts and images in electronic forms are effective in communicating ideasfrom source to destination. It is technology driven in the sense it revolves around wireless

electronic gadgets, internet, money cards credits card, debit cards, id cards, atm cards etc.

MIS is very significant in modern day education system where we come across usage

of LCDs, Smart boards, internet etc in class rooms. In the tourism MIS has led to radical changes

in booking system, tourist information system, hotel facilities, accommodation facilities,

transportation modes available, images of the facilities that could be provided etc.

INTRODUCTION TO MGMT:

Management as defined by Mary Follett is the art of getting things done through

people. A manger is defined as a person who achieves the organizations goals by motivatingothers to perform not by performing himself. Whether management is an art or a science is a

very subjective question. But it can be said without doubt that modern management in the

environment of technology is becoming more of a science than an art. We define

management for the purpose of Management information Systems as the process of planning,

organizing, staffing, coordinating and controlling the efforts of the members of the

organization to achieve common stated goals of the organization.

In the process of management, a manager uses human skills, material resources and

scientific methods to perform all the activities leading to the achievement of goals. The

management process involves a continuous resolution of conflicts of one kind or the other

which affects the achievement of goals. In the management of any activity, a manager comesacross human conflict, conflict of goals, between alternative resources, conflict of time,

conflict of approach or method and the conflict of choice. The manager uses a variety of tools,

techniques and skills while executing the management process of planning, organizing,

staffing, coordinating and controlling. An effective way of handling this process is to treat the

organization as a system. The result oriented management approaches the problem of

management through the system view of the organization.

The key concepts of the system theory used in the management are as follows:

1. A system is a comprehensive assembly of parts becoming an organization

to achieve the stated goals.

2. A system is called OPEN if it has interaction with the environment and

CLOSED if it not has an interaction with the environment.

3. A system is defined, described and understood by the boundaries

within which it performs.

4. The system are subject to entropy, i..e.,the tendency to run down. Closed

systems suffer from entropy as they are cut off from the environment, while

open systems interact with the environment and draw upon the support

of resources to maintain a given condition.


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5. Systems try to remain in equilibrium or a steady state by taking recourse to

corrective action. This is possible when the system has its own feedback, i.e.,

an informational input about the state of the system.

The advantage of viewing the management as a system is that it enables us to see the

critical variables, constraints and their interaction with one another. It force the managerto look at the situation in such a way that due regard is given to the consequences arising out

of interaction with the related element or subjects. The process of management explained

earlier consists of steps which are relationally linked and locked with each other.

In the context of the MIS, the systems approach to management is the most efficient

one. The understanding of the basic principle of management theory evolved the scholars

Henri Fayol, Chester Barnard and Alvin Brown is very much essential. The application of

management principles in an environment, recognizing the specific situation, is the accepted

practice of management. Deviating from the principle to honour the situation and at the same

time not diluting the management principle is the managerial skill. The manager must have

knowledge of management theory and principle as the skill to use them in a particular

environment.

APPROACHES TO MANAGEMENT

Frederick W Taylor*, is recognized as the father of scientific management. His principles

can be summarised as follows:

1. Replace the rules of thump with scientific rules.

2. Obtain a harmony in group action.

3. Achieve cooperation of human beings, rather than chaotic individualism.

4. Work for a maximum output.

5. Develop all workers to the possible potential for their own highest possible prosperity.Car George Barth, Henry L Gantt, Frank and Lillian Gilberth are the disciples of

Taylor, who promoted the thought of the scientific management.

The French industrialist Henri Fayol** promoted the theory of operational management.

Fayol is of the view that all the activities of an industrial or a business or a business undertaking

can be

F W Taylor, The Principles of Scientific Management, Harper, NewYork, 1911. Henri Fayol, General and Industrial Management, translated by Constance Storrs, London,

Sir Isaac Pitman and Sons Ltd, 1949.

Broken into operational functions such as technical, commercial, financial, security,

accounting, and so on. He evolved the principles of operational management. These are as

given in Table 2.1.

Table 2.1 Principles of Operational Management

Principle Comments


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Division of work

Authority and responsibility

Discipline

Unity of command

Unity of direction

Subordination of individual

to

Corporate

interest

Remuneration

Centralisation

Scalar chains

Order

Efficient handling of work.

Pinpoints accountability.

Adherence to rules, regulations, norms and

priorities. Single source directed towards one

objective.

Efforts should be directed towards one objective.

Ignore the individual interests for overall betterment

of the organization.

Should be fair for maximum satisfaction.

Authority should be centralized just enough for

control. Overgeneralization is unproductive.

Chain of authority vested into the people should not

be short-circuited.

Orderly arrangement of men, material and

other resources is necessary.

Subordinates should be dealt with kindliness andjustice to elicit loyalty and devotion.

It is necessary to ensure that the turnover of people

is controlled for stability.

The initiative of subordinates should be

Fayol regarded the elements of management as planning, organizing, commanding,

coordinating and controlling. He believed that the operational management would succeed

through the elements of management. During the same period when Taylor, Fayol and

others were concentrating on the scientific management, another group of scholars was

concentrating on industrial psychology and social theory as the basis for the scientific

management.

Robert Owen, Rountree, Lyndall Urwick are credited to evolve the management

with a focus on the personal management. Max Weber, Vilfredo Pareto, Mayo Elton are the

scholars who thought that productivity can be improved through the social factors as morale

and satisfactory relation between the members of work group, and an effective management

is possible only if human behaviour and group behaviour is managed through the

interpersonal skills, viz, motivating, counselling, leading and communication.

Hawthornes studies brought out the theory that man is a Social Animal operating in

the socio technical system and, therefore, the emphasis in effective management is on

behavioural sciences. Chester Barnard advocated the theory od system as an approach to

the management. Barnard said that due to the physical and biological limitations ofindividuals, they cooperate in the work environment. The cooperation increases with

effective and efficient incentives. He further said that the cooperation is more effective if the

members of the group communicate with one another, are willing to contribute to groups

action, and have a conscious common Purpose. He father said that a groups of peoples in the

system work as an organization is looked upon as a system of factions, a system of in a system

of incentives, a system of authority and a direction and a system of logical decision making.

The emergence of the modern management thought is credited to the social scientists, the


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behavioural scientists, the systems scientists and the practicing managers.

FUNCTIONS OF THE MANAGER

An individual who gets the thing done is a Manager. It is necessary to distinguish between

the task and the functions. While manager may perform the task such as accounting, selling,manufacturing, purchasing, etc. These activities are called as tasks and not as functions. The

activities that are performed through the managerial functions are planning, organization,

staffing, directing coordinating and controlling.

Planning is a process of determining the goals and objectives and evolving strategiespolicies, programmers and procedures for the achievement of these goals. The essence of

the process is decision making as there are a number of alternatives in each of these

factors.

Organisation involves evolving the structure of the people working in theorganization and their roles. It specifies an authority structure and assigns activities to the

people backed by the delegation of authority. Building a meaningful effective structure ofauthority and the relationship is known as organizing.

Staffing involves manning the positions in the organization structure. It requiresdefining the manpower needs per position or centre of activity. It requires appropriate

selection of the person or persons ensuring that they together will achieve the goals and

objectives of the organization.

Directing is a complex task of implementing the process of management. In theprocess, the manger is required to guide, clarify and solve the problems of the people and

their activities. It is necessary to motivate the people to work for the goal with an

interest and a confidence.

Coordinating is the function which brings a harmony and smoothness in the variousgroup activities and individual efforts directed towards the accomplishment of goals. It isa process of synchronizing individual actions and the efforts which may differ because of

the differences in the personal goals and the common goals, the differences in the

interpretation of methods and directions. It is, therefore, necessary to undertake

centrally a process of coordinating and reconciling the differences in the approach,

timing, efforts and interests towards a common goal. This task is to be carried out by the

authority placed at a higher level in the organization structure.

Controlling is a process of measurement of an output, comparing it with the goals, theobjectives and the target, and taking corrective actions, if the output is falling short of the

stated norms. Controlling ensures an achievement of the plan. The essence of the control

lies in good planning. It helps to evaluate the performance, highlights abnormal

deviations, and guides a manager to take specific corrective actions. This may call for a

change of plan, a reallocation of resources, a modification of methods, procedures and

even the organization structure. The control is central to the managerial function.

The managers main function, therefore, is planning and control of the business functions and

operations. While performing these functions, he resorts to the scientific approach to the mgmt.


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MIS: A SUPPORT TO THE MANAGEMENT

The management process is executed through a variety of decisions taken at each step of

planning organizing, staffing, directing, coordinating and control. As discussed in Chapter 1, the

MIS aids decision making. If the management is able to spell out the decisions required to takenin these steps are tabulated in Table 2.2.

Table 2.2 Decisions in Management

Steps in management Decision

Planning A selection from various alternatives- strategies,

resources, methods, etc.

Organization A selection of a combination out of several

combinations of the goals, people, resources, method,

and authorit .Staffing Providing a proper manpower complement.

Directing Choosing a method from the various methods of

directing the efforts in the organization.Coordinating Choice of the tools and the techniques for coordinating

the efforts for optimum results.Controlling A selection of the exceptional conditions and the

decision guidelines.

The objective of the MIS is to provide information for a decision support in the

process of management. It should help in such a way that the business goals are achieved in the

most efficient manner. Since the decision making is not restricted to a particular level, the MIS is

expected to support all the levels of the management in conducting the business operations.

Unless the MIS becomes a management aid, it is not useful to the organization. Figure 2.2

illustrates the process discussed here.

MIS: A TOOL FOR MANAGEMENT PROCESS

The process of management requires a lot of data and information for execution of the

plan. This requirement arises on account of that in each step of management, a variety of

decisions are taken to correct the course of development. The decisions or actions are prompted

due to the feedback given by the control system incorporated in the management system.The control of overall performance is made possible by way of budget summaries and reports.

The summary showing sales, costs, profit and return on investment throws light on the direction

the organization is moving to. The exception reports identify the weaknesses in the system of

management.

If effective management system is to be assured, it has to rest on business

information. The management performance improves if the business risk and uncertainties are

handled effectively. If the information provided is adequate, one can deal with these factors


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Cross-functional system architecture:

Collaboration system in manufacturing

It is designed for one basic purpose, to help unite employees or people that are workingon similar task, or it could be the exact task and system helps unite them to complete

their task and achieve whatever goal that task sets out to do.

E.g. Slovak, Instant MessagingEnterprise collaboration system

Communicate Coordinate Collaborate and Cooperation

Tools used

Electronic mail Voice mail Bulletin board systems Fax Video conferencing tools

Collaboration system in manufacturing:

Structured collaboration system Easier to organize Excellent for hierarchical organizations Increases proficiency


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Limitations of structured collaboration system Same workflow information Can cause groupthink Encourages lack of creativity

Enterprise application integration: The use of software and computer systems architectural principles to integrate a set of

enterprise computer applications.

It is an integration framework composed of collection of technologies and services whichform a middleware to enable integration of systems and applications across the

enterprise.

Transaction processing systems:

A transaction processing system is a type of information system. TPSs collect, store,modify, and retrieve the transactions of an organization.

A transaction is an event that generates or modifies data that is eventually stored in aninformation system. The essence of a transaction program is that it manages data that must be left in a

consistent state. E.g. if an electronic payment is made, the amount must be both

withdrawn from one account and added to the other; it cannot complete only one of

those steps.

IMPLEMENTATION CHALLENGES:

Challenges of MIS while implementing:

Advance technology

Competitors technology Customer's orientation towards required information about product and quality Industry orientation towards upcoming technology Foreign Investors orientation in local markets Government intervention in case of any new technology used in the organization like duty

taxes etc.

International crises in technology Substitute or alternatives in technology

END USER RESISTANCE AND INVOLVEMENT

Any new ways of doing things generates some resistance by the people affected. Thus,

the implementation of new E-business work support technologies can generate fear and

resistance to change by employees. Let's look at a real world example that illustrates this

phenomenon.

One of the keys to solving problems of end user resistance to new information

technologies is proper education and training. Even more important is end user involvement in

organizational changes, and in the development of new information systems. Organizations have

a variety of strategies to help manage business change, and one basic requirement is the


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involvement and commitment of top management and all business stakeholders affected by the

E-business planning process.

Direct end user participation in E-business planning and application development projects

before a new system is implemented is especially important in reducing the potential for end

user resistance. That is why end users frequently are members of E-business systems

development teams or do their own developments work. Such involvement helps ensure thatend users assume ownership of a system, and that its design meets their needs. Systems that

tend to inconvenience or frustrate users cannot be effective systems, no matter how technically

elegant they are and how efficiently they process data.

CHANGE MANAGEMENT:

Change management is an approach to shifting/transitioning individuals, teams,

and organizations from a current state to a desired future state. It is an organizational process

aimed at helping change stakeholders to accept and embrace changes in their business

environment. In some project management context, change management refers to a projectmanagement process where changes to a project are formally introduced and approved.

Kotter defines change management as the utilization of basic structures and tools to control any

organizational change effort. Change management's goal is to minimize the change impacts on

workers and avoid distractions.

UNIT3

ENTERPRISE RESOURCE PLANNING (ERP):

Enterprise resource planning (ERP) integrates internal and external management

information across an entire organization, embracing finance/accounting, manufacturing, sales

and service, CRM, etc. ERP systems automate this activity with an integrated software

application. Its purpose is to facilitate the flow of information between all business functionsinside the boundaries of the organization and manage the connections to outside stakeholders,

ERP came to represent a larger whole, reflecting the evolution of application integration beyond

manufacturing.[7] Not all ERP packages were developed from a manufacturing core.

Vendors variously began with accounting, maintenance and human resources. ERP

systems initially focused on automating back office functions that did not directly affect

customers and the general public.

Advantages of ERP

The fundamental advantage of ERP is that integrating the myriad processes by which

businesses operate saves time and expense. Decisions can be made more quickly and with fewer

errors. Data becomes visible across the organization. Tasks that benefit from this integrationinclude:

Sales forecasting, which allows inventory optimization

Order tracking, from acceptance through fulfillment

Revenue tracking, from invoice through cash receipt

Matching purchase orders (what was ordered), inventory receipts (what arrived), and costing

(what the vendor invoiced)

Disadvantages of ERP

Customization is problematic.
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Reengineering business processes to fit the ERP system may damage competitiveness and/or

divert focus from other critical activities

ERP can cost more than less integrated and/or less comprehensive solutions.

High switching costs increase vendor negotiating power via is support, maintenance and

upgrade expenses.

Overcoming resistance to sharing sensitive information between departments can divertmanagement attention.

Integration of truly independent businesses can create unnecessary dependencies.

Extensive training requirements take resources from daily operations.

BENEFITS OF ERP:

Streamlining processes and workflows with a single integrated system. Reduce redundant data entry and processes and in other hand it shares informartioin

across the department.

Establish uniform processes that are based on recognized best business practices

Improved workflow and efficiency Improved customer satisfaction based on improved on-time delivery, increased quality,

shortened delivery times

Reduced inventory costs resulting from better planning, tracking and forecasting ofrequirements

Turn collections faster based on better visibility into accounts and fewer billing and/ordelivery errors

Decrease in vendor pricing by taking better advantage of quantity breaks and trackingvendor performance

Track actual costs of activities and perform activity based costing Provide a consolidated picture of sales, inventory and receivables Common set of data Help in integrating applications for decision making and planning Allow departments to talk to each other Easy to integrate by using processed built into ERP software A way to force BPR (reengineering) Easy way to solve Y2K problem

ERP SELECTION

Check whether all function aspects of business are duly covered. Check whether all the business functions & processes are fully integrated. Check whether all the latest IT trends have been covered. Check whether the vendor has customizing & implementing capabilities. Check your purse & calculate ROI.

ERP IMPLEMENTATION

Commitment from mgmt.


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From a task force with personnel from all functional areas. Take care of hardware requirements. Step-by-step rather than big bang introduction. Be patient. ERP implementation takes time.

UNIT4BENEFITS OF CUSTOMER RELATIONSHIP MANAGEMENT

A Customer Relationship Management system may be chosen because it is thought to provide

the following advantages:

Quality and efficiency Decrease in overall costs

CHALLENGES OF CUSTOMER RELATIONSHIP MGMT

Successful development, implementation, use and support of customer relationship

management systems can provide a significant advantage to the user, but often there are

obstacles that obstruct the user from using the system to its full potential. Instances of a CRM

attempting to contain a large, complex group of data can become cumbersome and difficult to

understand for ill-trained users. The lack of senior management sponsorship can also hinder the

success of a new CRM system. Stakeholders must be identified early in the process and a full

commitment is needed from all executives before beginning the conversion. But the challenges

faced by the company will last longer for the convenience of their customers.

Complexity

Tools and workflows can be complex, especially for large businesses. Previously these

tools were generally limited to simple CRM solutions which focused on monitoring and recording

interactions and communications. Software solutions then expanded to embrace deal tracking,

territories, opportunities, and the sales pipeline itself. Next came the advent of tools for otherclient-interface business functions, as described below. These tools have been, and still are,

offered as on-premises software that companies purchase and run on their own IT infrastructure.

Poor usability

One of the largest challenges that customer relationship management systems face is

poor usability. With a difficult interface for a user to navigate, implementation can be

fragmented or not entirely complete.

The importance of usability in a system has developed over time.Customers are likely not

as patient to work through malfunctions or gaps in user safety, and there is an expectation that

the usability of systems should be somewhat intuitive: it helps make the machine an extension

of the way I think not how it wants me to think.

Fragmentation

Often, poor usability can lead to implementations that are fragmented isolated

initiatives by individual departments to address their own needs. Systems that start disunited

usually stay that way: [siloed thinking] and decision processes frequently lead to separate and

incompatible systems, and dysfunctional processes.

A fragmented implementation can negate any financial benefit associated with a

customer relationship management system, as companies choose not to use all the associated

features factored when justifying the investment. Instead, it is important that support for the
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CRM system is companywide. The challenge of fragmented implementations may be mitigated

with improvements in late-generation CRM systems.

Business reputation

Building and maintaining a strong business reputation has become increasingly

challenging. The outcome of internal fragmentation that is observed and commented upon by

customers is now visible to the rest of the world in the era of the social customer; in the past,only employees or partners were aware of it. Addressing the fragmentation requires a shift in

philosophy and mindset in an organization so that everyone considers the impact to the

customer of policy, decisions and actions. Human response at all levels of the organization can

affect the customer experience for good or ill. Even one unhappy customer can deliver a body

blow to a business.

Security, privacy and data security concerns

One function of CRM is to collect information about clients. It is important to consider the

customers' need for privacy and data security. Close attention should be paid to relevant laws

and regulations. Vendors may need to reassure clients that their data not be shared with third

parties without prior consent, and that illegal access can be prevented.A large challenge faced by developers and users is found in striking a balance between

ease of use in the CRM interface and suitable and acceptable security measures and features.

Corporations investing in CRM software do so expecting a relative ease of use while also

requiring that customer and other sensitive data remain secure. This balance can be difficult, as

many believe that improvements in security come at the expense of system usability.

Technical writers can play a large role in developing content management systems that

are secure and easy to use. A series of 2008 research shows that CRM systems, among others,

need to be more open to flexibility of technical writers, allowing these professionals to become

content builders. These professionals can then gather information and use it at their preference,

developing a system that allows users to easily access desired information and is secure and

trusted by its users.

TRENDS IN SUPPLY CHAIN MANAGEMENT:-

The Top 10 Technologies Here are the top 10 trends and technologies impacting supply

chain

operations spanning production, distribution, retail and remote service.

1. Comprehensive connectivity from 802.11 wireless LAN technologies, cellular networks,

Bluetooth

2. Voice and GPS communication integrated into rugged computers

3. Speech recognition4. Digital imaging

5. Portable printing

6. 2D & other bar coding advances

7. RFID

8. RTLS

9. Remote management

10. Wireless and device security
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CHALLENGES OF SUPPLY CHAIN MGMT

The following are five key supply chain management challenges and how we help supply chain

professionals address them.

1. Customer serviceEffective supply chain management is all about delivering the right product in the right

quantity and in the right condition with the right documentation to the right place at theright time at the right price. If only it were as simple as it sounds.

2. Cost controlSupply chain operating costs are under pressure today from rising freight prices, more

global customers, technology upgrades, rising labor rates, expanding healthcare costs,

new regulatory demands and rising commodity prices. To control such costs there are

thousands of potential metrics that supply chain organizations can and do measure.

Managers need to zero in on the critical few that drive total supply chain costs within

their organizations.

3. Planning and Risk ManagementSupply chains must periodically be assessed and redesigned in response to marketchanges, including new product launches, global sourcing, new acquisitions, credit

availability, the need to protect intellectual property, and the ability to maintain asset and

shipment security. In addition, supply chain risks must be identified and quantified. SCC

members report that less than half of their organizations have metrics and procedures for

assessing, controlling, and mitigating such risks.

4. Supplier/partner relationship managementDifferent organizations, even different departments within the same organization, can

have different methods for measuring and communicating performance expectations and

results. Trust begins when managers let go of internal biases and make a conscious choice

to follow mutually agreed upon standards to better understand current performance and

opportunities for improvement.5. Talent

As experienced supply chain managers retire, and organizations scale up to meet growing

demand in developing markets, talent acquisition, training, and development is becoming

increasingly important. Supply chain leaders need a thorough understanding of the key

competencies required for supply chain management roles, specific job qualifications,

methods for developing future talent and leaders, and the ability to efficiently source

specific skill sets.

THE E-COMMERCE PROCESS

You need an online shopping cart program. You need to secure everything from the time customers enter your site through your

"Thank you for your order" acknowledgement and receipt.

You need a way to accept payments from a credit card. You need to know what you sold, when you sold it, to whom you sold it, for how much

(including taxes and shipping) and how that relates to inventory.

You need to have a reliable and efficient mechanism for handling returns and customercomplaints.


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You should always declare what information you gather and what you do with it as well ashow you protect it.

And you need to have a way to ensure and measure customer satisfaction with yourservice and product. Believe it or not - the service is THE MOST IMPORTANT aspect to a

successful online business.

Do everything you can to make sure the customer has the means to: Navigate quickly - both to your products and to their cart Buy the products - an Add to Basket button right next to the product is important, and a

way to quickly indicate quantity

Check status - that Basket Contents button is all important. Customers should be able toreview what they've selected at any time. Sub-totals, with or without taxes and shipping,

are important as well.

Secure Check out - so customers can finish the purchase securely. And always, always,always, make sure they can finish the purchase whenever they want to. In other words,

put a Checkout button on every page!

Select shipping - make sure that when customers do check out they can select theshipping method and tell them clearly what it will cost.

UNIT5

WHAT IF ANALYSIS

The real power in Excel comes in its ability to perform multiple mathematical calculations for you.

One of the tools in Excel that you can use to perform these calculations is a Data

tool called What-If Analysis. What-If analysis allows you to see the effect that different values

have in formulas.

Limitations of What-if Analysis

Although what-if analysis is highly effective in identifying various system hazards, thistechnique has three limitations:

Most common uses

Generally applicable for almost every type of risk assessment application especially those dominated by relatively simple failure scenarios

Occasionally used alone, but most often used to supplement other, more structuredtechniques

especially checklist analysisProcedure for What-if AnalysisThe procedure for performing a what-if analysis consists of the following seven steps:

1. Define the activity or system of interest. Specify and clearly define the boundaries for which risk-related information is

needed.

2. Define the problems of interest for the analysis.


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Specify the problems of interest that the analysis will address safety problems environmental issues economic impacts

3. Subdivide the activity or system for analysis. Section the subject into its major elements

locations on the waterway tasks subsystems)

The analysis will begin at this level.4. Generate what-if questions for each element of the activity or system.

Use a team to postulate hypothetical situations (generally beginning with thephrase "what if ") that team members believe could result in a problem of

interest.

5. Respond to the what-if questions. Use a team of subject matter experts to respond to each of the what-if questions. Develop recommendations for improvements wherever the risk of potential

problems seems uncomfortable or unnecessary.

6. Further subdivide the elements of the activity or system (if necessary or otherwiseuseful).

Further subdivision of the activity or system may be necessary if more detailedanalysis is desired.

Provide no more valuable information Exceed the organization's control or influence to make improvements. Generally, the goal is to minimize the level of resolution necessary for a risk

assessment.

7. Use the results in decision making. Evaluate recommendations from the analysis and implement those that will bring

more benefits than they will cost in the life cycle of the activity or system.

SENSITIVITY ANALYSIS

A technique used to determine how different values of an independent variable will

impact a particular dependent variable under a given set of assumptions. This technique is used

within specific boundaries that will depend on one or more input variables, such as the

effect that changes in interest rates will have on a bond's price.

Sensitivity analysis is a way to predict the outcome of a decision if a situation turns out to

be different compared to the key prediction(s).

Sensitivity analysis (SA) is the study of how the uncertainty in the output of a model

(numerical or otherwise) can be apportioned to different sources of uncertainty in the model

input.[1]

A related practice is uncertainty analysis which focuses rather on quantifying uncertainty

in model output. Ideally, uncertainty and sensitivity analysis should be run in tandem.

In more general terms uncertainty and sensitivity analysis investigate the robustness of a study

when the study includes some form ofstatistical modelling. Sensitivity analysis can be useful to

computer modelers for a range of purposeincluding:
http://en.wikipedia.org/wiki/Sensitivity_analysis#cite_note-Primer-0http://en.wikipedia.org/wiki/Sensitivity_analysis#cite_note-Primer-0http://en.wikipedia.org/wiki/Sensitivity_analysis#cite_note-Primer-0http://en.wikipedia.org/wiki/Uncertainty_analysishttp://en.wikipedia.org/wiki/Statistical_modellinghttp://en.wikipedia.org/wiki/Statistical_modellinghttp://en.wikipedia.org/wiki/Uncertainty_analysishttp://en.wikipedia.org/wiki/Sensitivity_analysis#cite_note-Primer-0


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Support decision making or the development of recommendations for decision makers(e.g. testing the robustness of a result);

Enhancing communication from modellers to decision makers (e.g. by makingrecommendations more credible, understandable, compelling or persuasive);

Increased understanding or quantification of the system (e.g. understanding relationshipsbetween input and output variables); and

Model development (e.g. searching for errors in the model).Let us give an example: in any budgeting process there are always variables that are

uncertain. Future tax rates, interest rates, inflation rates, headcount, operating expenses and

other variables may not be known with great precision. Sensitivity analysis answers the question,

"if these variables deviate from expectations, what will the effect be (on the business, model,

system, or whatever is being analyzed)?"

While economic models are a useful tool to aid decision-making in healthcare, there

remain several types of uncertainty associated with this method of analysis.

One-way sensitivity analysis allows a reviewer to assess theimpact that changes in acertain parameter will have on themodels conclusions.

Sensitivity analysis can help the reviewer to determine which parameters are the keydriversof a models results.

By reporting extensive outputs from sensitivity analysis, modellers are able to consider awide range of scenarios and, as such, can increase the level ofconfidence that a reviewer

will have in the model.

Probabilistic sensitivity analysis provides a useful technique to quantify the level ofconfidence that a decision-maker has in the conclusions of an economic evaluation.

GOAL SEEKINGThe process of finding the correct input when only the output is known. A goal-seeking

entrepreneur might ask him or herself: "How much money do I have to earn per hour to gross

$100,000 this year?" He or she knows the desired output, $100,000, but will have to work

backwards to determine the desired input by figuring out how many hours he or she is able and

willing to work in a year and then how much he or she needs to earn per hour, along with any

other factors which may affect the final output.

Explains 'Goal Seeking'

To solve more complex goal-seeking problems, business people commonly rely on computer

software. The spreadsheet program Microsoft Excel has a goal-seeking tool built in that allows

the user to determine the correct input value for a formula when the desired output is known.

This feature can be used, for example, to determine the interest rate a borrower would need to

qualify for (the input) if he or she only knows how much he can afford to pay per month (the

output).

Optimization analysis: Finding an optimum value for selected variables in a mathematical

model, given certain constraints

Enterprise Information portal: An enterprise portal, also known as an enterprise

information portal(EIP) or corporate portal, is a framework for integrating information, people

and processes across organizational boundaries. It provides a secure unified access point, often in

the form of a web-based user interface, and is designed to aggregate and personalize information
http://en.wikipedia.org/wiki/User_interfacehttp://en.wikipedia.org/wiki/User_interface


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through application-specific portlets. One hallmark of enterprise portals is the de-centralized

content contribution and content management, which keeps the information always updated.

Features:

Single Sign-On enterprise portals can provide single sign-on capabilities between theirusers and various other systems. This requires a user to authenticate only once.

Integration the connection of functions and data from multiple systems into newcomponents/portlets/web parts with an integrated navigation between these

components.

Federation the integration of content provided by other portals, typically through theuse ofWSRP or similar technologies.

Customization Users can customize the look and feel of their environment. Customerswho are using EIPs can edit and design their own web sites which are full of their own

personality and own style; they can also choose the specific content and services they

prefer. Also refers to the ability to prioritize most appropriate content based on attributes

of the user and metadata of the available content. Personalization Personalization is more about matching content with the user. Based

on a user profile, personalization uses rules to match the "services", or content, to the

specific user. To some degree, you can think of the two like this: customization is in hands

of the end user, personalization is not. Of course actual personalization is often based on

your role or job function within the portal context.

Access Control the ability for portal to limit specific types of content and services usershave access to. For example, a company's proprietary information can be entitled for only

company employee access. This access rights may be provided by a portal administrator

or by a provisioning process. Access control lists manage the mapping between portal

content and services over the portal user base.

Enterprise Search search enterprise content using enterprise searchKNOWLEDGE MANAGEMENT SYSTEMS

Knowledge management systems refer to any kind of IT system that stores and retrieves

knowledge, improves collaboration, locates knowledge sources, mines repositories for hidden

knowledge, captures and uses knowledge, or in some other way enhances the KM process.

Types of knowledge management system

Expert system: An information system used to make choices that would normally beperformed by a domain expert, such as in the diagnosis of a problem.

Groupware: Groupware systems facilitate collaboration b/w workers. They may assistworkers in sharping appointment calendars or sending messages b/w them.

Document mgmt. systems: enable users to perform versioning, store and sharedocuments, and search through documents more efficiently.

Decision Support systems: presents information to users in a manner that they can makeinformed decisions more easily.

Database mgmt. systems: assist in use the collection of data stored within a database byenabling easy storage and retrieval.
http://en.wikipedia.org/wiki/Portletshttp://en.wikipedia.org/wiki/Single_sign-onhttp://en.wikipedia.org/wiki/Portlethttp://en.wikipedia.org/wiki/Web_parthttp://en.wikipedia.org/wiki/Web_Services_for_Remote_Portletshttp://www.knowledge-management-tools.net/knowledge-information-data.htmlhttp://www.knowledge-management-tools.net/knowledge-information-data.htmlhttp://en.wikipedia.org/wiki/Web_Services_for_Remote_Portletshttp://en.wikipedia.org/wiki/Web_parthttp://en.wikipedia.org/wiki/Portlethttp://en.wikipedia.org/wiki/Single_sign-onhttp://en.wikipedia.org/wiki/Portlets


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Simulation systems: Simulation systems are used for modeling a real world scenario andfor testing the effects of scenarios that are either unsafe or not economical to perform

with their real world equivalents.

ARTIFICIAL INTELLIGENCE (AI) SYSTEM

All human beings have intelligence, which they use for problem solving. Intelligence

when supported by knowledge and reasoning abilities becomes an artificial intelligence. When

such an artificial intelligence is packed into a database as a system, then what we have is AI

system.

AI systems fall into three basic categories, viz., the Expert Systems (knowledge based), the

Natural Language (Native languages) Systems, and the Perception System (vision, speech, touch).

Figure 14.11 shows the structure of AI systems.

Artificial intelligence is a software technique applied to the non-numeric data expressed

in terms of symbols, statements and patterns. It uses the methods of symbolic processing, social

and scientific reasoning and conceptual modelling for solving the problems. The AI systems arefinding applications in configurations, design, diagnosis, interpretation, analysis, planning,

scheduling, training, testing and forecasting.

The AI systems do not replace people. They liberate experts from solving common/simple

problems, leaving the experts to solve complex problems. Artificial intelligence systems help to

avoid making same mistakes, and to respond quickly and effectively to a new problem situation.

The knowledge-based Expert System is a special AI System. It has wide applications in

business and industry.

KNOWLEDGE BASED EXPERT SYSTEM (KBES)

Decision making or problem solving is a unique situation riddled with uncertainty and

complexity, dominated by the resource constraints and a possibility of several goals. In such

cases, flexible systems (open systems) are required to solve the problems. Most of such

situations, termed as the unstructured situations, adopt two methods of problem solving,

generalized or the knowledge based expert system (KBES).

The generalized problem solving approach considers the generally applicable

constraints, examines all possible alternatives and selects one by trial and error method with

reference to a goal. The knowledge based problem solving approach considers the specific

constraints within a domain, examines the limited problem alternatives within a knowledge

domain and selects the one with knowledge based reasoning with reference to a goal.In a generalized approach, all alternatives are considered and the resolution of the

problem is by trial and error, with no assurance, whether it is the best or the optimum, while, in

the knowledge based approach, only limited alternatives are considered and resolution is made

by a logical reasoning with the assurance of the local optimum. The generalized approach is

dominated by a procedure or method, while the knowledge based approach is dominated by the

reasoning process based on the knowledge.

Since, the KBES considers knowledge as the base; the question arises whose knowledge is

to be considered as a basis. It is generally agreed that an expert has knowledge, and therefore, he


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becomes the source of knowledge. An expert is difficult to find and the difficulty of no-

knowledge or limited knowledge on the subject is always expressed. Knowledge is with

experienced people and experience, is wide and distributed. Hence, a system is required which

will hold the knowledge of experienced people and provide an application path to solve the

problem. Such a system eliminates the knowledge bottleneck.

To build a knowledge-based system certain prerequisites are required. The firstprerequisite is that a person with the ability to solve the problem with knowledge-based

reasoning should be available. The second prerequisite is that such an expert should be able to

articulate the knowledge to the specific problem characteristics.

Knowledge in the KBES is defined as a mix of theory of the subject, knowledge of its

application, organized information and the data of problems and its solution, and an ability to

generate new avenues to solve the problem.

The KBES has three basic components which are necessary to build the system as shows

in Fig. 11.12

ELECTRONIC PAYMENT PROCESS:

When youve been in business a while, you know that success isnt just about winning

jobs or selling products. Its also about getting paid. And the sooner the better.Cashflow is fundamental to long-term business success. If youve ever dipped into

personal savings or resorted to the slippery slope of credit to cover operational costs, you know

that maintaining positive cashflow can be a real headache.But it doesnt have to be...Electronic payment processing services can relieve the

cashflow headache. Electronic payment processing services significantly reduce or

even eliminate payment delays. Whats more, yourcustomers cant c

hange their mind and denyyou your payment, because they pay on the spot. And just as importantly, by eliminating

unnecessary delays, electronic payment processing services also eliminate the trickle-down effect

of payment delays, such as shipping delays, prolonged project turnaround times, wage shortfalls

and employee dissatisfaction.

E-COMMERCE APPLICATIONS

Various applications of e-commerce are continually affecting trends and prospects for

business over the Internet, including e-banking, e-tailing and online publishing/online retailing.

A more developed and mature e-banking environment plays an important role in e-

commerce by encouraging a shift from traditional modes of payment (i.e., cash, checks or anyform of paper-based legal tender) to electronic alternatives (such as e-payment systems),

thereby closing the e-commerce loop.

a) Benefits of e-Commerce Expanded Geographical Reach Expanded Customer Base

Increase Visibility through Search Engine Marketing Provide Customers valuable information

about your business Available 24/7/365 - Never Close Build Customer Loyalty Reduction of

Marketing and Advertising Costs Collection of Customer Data


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b) Basic Benefits of e Business e-Commerce o increase sales - this is the first thing that

people consider

when dealing w e-commerce

o decreasing costs

o increase profits

o understanding that profits is not the same as sales

o Expands the size of the market from regional to national or national to international

o Contract the market

o reach a narrow market

o target market segmentation allows you to focus on a more

select group of customers

o and therefore have a competitive advantages in satisfying them

mgmt info sys

Documents