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Credit and Collection IT Systems Overview

The document discusses information systems in credit and collection management. It describes systems as having feedback and control components, with feedback monitoring performance and control evaluating feedback to guide the system. An example is a credit manager reassigning salespeople after reviewing collection performance data. The document also discusses people resources like end users and IS specialists. Major roles of IS include supporting business processes, decision making, and competitive advantage through innovative technology use. Ethical challenges must be considered when implementing systems like privacy issues or inaccurate information. Enterprise collaboration systems enhance communication, coordination and collaboration through tools like email, videoconferencing, and workflow systems.

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Annalyn Arnaldo
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11 views3 pages

Credit and Collection IT Systems Overview

The document discusses information systems in credit and collection management. It describes systems as having feedback and control components, with feedback monitoring performance and control evaluating feedback to guide the system. An example is a credit manager reassigning salespeople after reviewing collection performance data. The document also discusses people resources like end users and IS specialists. Major roles of IS include supporting business processes, decision making, and competitive advantage through innovative technology use. Ethical challenges must be considered when implementing systems like privacy issues or inaccurate information. Enterprise collaboration systems enhance communication, coordination and collaboration through tools like email, videoconferencing, and workflow systems.

Uploaded by

Annalyn Arnaldo
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Module 7

Information, Technology and the System in Credit and Collection

The system concept becomes even more useful by including two additional components: feedback and
control. A system with Feedback and Control components is sometimes called a cybernetic system, that
is self monitoring, self-regulating system

 Feedback is data about the performance of a system. Example. Data about collection
performance is feedback to a credit and collection manager.
 Control – involves monitoring and evaluating feedback to determine whether a system is
moving toward the achievement of its goal. Example, a credit and collection manager exercises
control when reassigning salesperson to new territories after evaluating feedback about their
collection performance.

Example of a self monitoring, self regulating system, computer may monitor and control
manufacturing processes, credit and collection procedures help control financial system, data entry
display provide control of data entry activities, and sales quotas and sales bonuses attempt to control
sales performance.

People Resource
People are required for the operation of all information systems. These people resources include end
users and IS specialist.

 End users – also called users and client. Most end users in business are knowledge workers,
people who spend most of their time communicating and collaborating in teams and workgroup
and creating using and distributing information.
 IS Specialist - are people who develop and operate information system.

The Major role of IS

 Support Business Processes – information system that support the business processes and
operations at the credit and collection department . Ex. computer based information systems to
help them record the number of active customers or delinquent customers.

 Support Decision Making – IS help store manager and other business professionals make better
decision and attempt to gain a competitive advantage. Ex. Credit Manager might decide
whether a good customer be given a discount or be given an additional credit limit.

 Support Competitive Advantage – gaining a strategic advantage over competitors requires


innovative use of information technology. Ex. Credit Manager might decide whether to make a
program exclusive for customer and supplier to gain fast and good communication.

The IS Function

 a business that is an important to business success as the functions of accounting, finance, credit
and collection department.
 An important contributor to operational efficiency, employee productivity and morale, and
customer service and satisfaction.
 A vital ingredient in developing competitive services.
Example of ethical challenge that must be faced by business managers who implements major
applications for IT.
Application of
IT Possible
* customer Responses
relationship Potential Harms Potential risk can the risk and
management *How likely are customers, How likely are legal cost be
*Credit and
collection
management employees, business partners, actions, consumer mitigated by:

or competitors to be affected by: boycott, work * self-regulation

* infringement on privacy stoppages, *advocacy


* Business * inaccurate information Government * education
Intelligence *collusion intervention, and * code of ethics
System *exclusion from essential other threat to * incentives
*Electronic business resources Occur * certification
Commerce
Systems

Electronic Communication, conferencing and collaborative work software tools

Enterprise
Collaboration
System

Electronic Electronic Collaboration


Communication Conferencing work management
Tools Tools Tools

* e-mail * Videoconferencing * Workflow System


*faxing *data conferencing * document sharing
*internet phone, paging *chat system *knowledge management

Enterprise collaboration systems (ECS) are cross functional e-business system that enhance
communication, coordination and collaboration among the members of business teams and
workgroups. Information Technology especially Internet technologies provides tools to help us
collaborate-to communicate ideas, share resources, and coordinate our cooperative work efforts as
members of the many formal and informal process and project teams and workgroup that make up
many of today’s organization. The goal of enterprise collaboration system is to enable us to work
together more easily and effectively by helping us to:

 Communication - sharing information with each other.


 Coordinate - coordinating our individual work efforts and user of resources with each other
 Collaborate – working together cooperatively on joint projects and assignment

Electronic Communication Tools help you to communicate and collaborate with others by electronically
sending message, documents internet and computer networks.

 E-mail –widely used to sent and receive text message between team members using PC’s
 Faxing – transmitting and receiving images of documents over telephone or computer networks
using PC’s
Electronic Conferencing tools help networked computer users share information and collaborate while
working together on joint assignment, no matter where they are located.
 Data conferencing – users at networked PC’s ca view, revise and save change to a shared
documents.
 Video Conferencing – realtime video and audioconferencing among uses at networked.
 Chat system – enable two or more users at networked PC’s to carry on online, realtime text
conversation.
Collaborative work management tools help people accomplish or manage joint work activities.
 Workflow systems – helping networked knowledge workers collaborate to accomplish and
manage the flow of structured work tasks and electronic document processing within a
business.
 Knowledge management - organizing and sharing the diverse forms of credit and collection
information created within an organization.

Common questions

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Enterprise collaboration systems improve efficiency and productivity by enhancing communication, coordination, and collaboration among team members. These systems facilitate real-time information sharing and joint project execution, enabling easier and more effective teamwork across various functions of an organization .

Data conferencing allows networked PC users to view, revise, and save changes to shared documents in real time. This capability fosters effective collaboration by enabling users to work together on joint assignments and share information, regardless of their physical locations .

Organizations can adopt strategies such as self-regulation to monitor compliance, advocacy to influence policy, educational initiatives to raise awareness, and the establishment of codes of ethics to guide behavior. Additionally, forming partnerships for cooperative governance and seeking external certifications can help manage risks effectively .

Inadequate management of information systems can lead to issues such as privacy breaches, dissemination of false information, and the exclusion of critical stakeholders from necessary resources. These harms can cause operational inefficiencies, legal troubles, and damage to business reputation .

Information Technology can offer competitive advantages by enhancing support for business processes, which allows for more informed decision-making and strategic innovations. For example, a credit manager can use IT to create exclusive programs for customers, improving communication and service speed, which can distinguish the business in a competitive market .

Feedback provides data about system performance, such as collection performance data for a credit and collection manager. Control involves evaluating this feedback to determine if the system is achieving its goals, such as reassigning salespersons based on their performance evaluations. This allows the system to self-monitor and self-regulate, adapting to needs and improving efficiency .

Electronic conferencing tools, such as data conferencing and video conferencing, enable real-time collaboration and information sharing among users in different locations. Electronic communication tools, like email and faxing, facilitate asynchronous exchange of messages and documents. While conferencing tools support dynamic, interactive engagement, communication tools are more suited for ongoing, non-immediate information exchange .

Implementing major IT applications can lead to challenges such as privacy infringement, dissemination of inaccurate information, and exclusion from essential resources. These risks could provoke consumer boycott, legal actions, or regulatory intervention, requiring businesses to adopt mitigation strategies such as self-regulation, advocacy, and development of ethical guidelines .

Workflow systems organize and streamline the flow of structured work tasks and electronic document processing, ensuring that networked knowledge workers can efficiently collaborate on and manage assignments. This structure reduces redundancy and improves task completion rates within the business .

End users, who are often knowledge workers, use the information systems to communicate, collaborate, and manage information effectively. IS specialists are responsible for developing and operating the systems that support these functions, ensuring that the systems align with business processes and decision-making needs .

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