Management and
Information Systems
Session 8
Management and Information Systems
Course code BMI2 (MIS430)
Instructor Stéphane MICHEL
Year 2 - BABA
Semester Spring 2022
Credits 5
Learning hours 12 x 3 hours
Class hours Fridays
BMI2 2
Required Textbook
« Essentials of Management Information Systems »
Kenneth C Laudon, Jane Laudon
« This course material uses concepts, texts and diagrams
which are the subject of copyright and / or intellectual
property rights of different organizations. Their use is
strictly regulated. »
14 th edition Paperback
ISBN-13: 9780136500636
Pearson Higher Education
• Available as paperback
• Available as e-Text
BMI2 3
Resume – Class 7
Security: Establishing a
Business Value of
measures (« the System Framework for Technologies and
Security and
locks ») & controls vulnerabilities Security and Tools for Security
Control
(« using them ») Control
User, data
connection, 1. Risk
Firewalls
server, company Assessment
network
Internal & 2. Security Intrusion
external threats Policy detection
3. Operational Anti-virus
measures software
4. Continuity
Planning&
Data Encryption
Disaster
recovery
Digital
certificate
MIS 430 4
Course Content
Session 1 Management Information Systems in Business Today
Session 2 Global E-Business and Collaboration: How Businesses Use Information Systems
Achieving Competitive Advantage with Information Systems
Session 3
Tuesday
Session 4 IT Infrastructure: Hardware and Software
Session 5 Foundations of Business Intelligence: Databases and Information Management
(Mid Term)
Session 6
Telecommunications, the Internet, and Wireless Technology
BMI2 5
Course Content
Session 7 Securing Information Systems - (Mid Term)
Achieving Operational Excellence and Customer Intimacy: Enterprise
Session 8 Applications
Session 9 E-Commerce: Digital Markets, Digital Goods
Session 10 Building Information Systems and Managing Projects
Session 11 Ethical and Social Issues in Information Systems
Session 12 Improving Decision Making and Managing Knowledge
Final Exam
BMI2 6
Achieving Operational Excellence
and Customer Intimacy:
Enterprise Applications
Class session 8
Business Drivers of Information Systems (IS)
CLASS 1
Operational excellence
New products, services, and business
6
models
Customer and supplier intimacy
Improved decision making
Businesses invest in
Competitive advantage
IS to achieve six
important business
objectives
Survival
Spring 2021 BMI2 8
Business Drivers of Information Systems (IS)
CLASS 1
Operational excellence
• Improved efficiency resulting in higher
profits
• Information systems and technologies
helping to improve efficiency and
productivity
– Amazon : generating more than $232 billion in sales in
2018, invested $2.1 billion in information systems so that
when one of its estimated 300 million users searches for
a product, Amazon can respond in milliseconds with the
correct product displayed (and recommendations for
other products).
Spring 2021 BMI2 9
Business Drivers of Information Systems (IS)
CLASS 1
Customer and supplier intimacy
• Customers who are served well become repeat
customers who purchase more
• Mandarin Oriental Hotel (Manhattan) : Uses IT to foster an
intimate relationship with its customers, keeping track of
preferences, etc.
• Close relationships with suppliers result in lower
costs
• Every time a dress shirt is bought at a JCPenney store in the
United States, the record of the sale appears immediately on
computers in Hong Kong at TAL Apparel Ltd..
Spring 2021 BMI2 10
Business Drivers of Information
• Business Value of Enterprise Systems
• Increase operational efficiency
• Provide firm-wide information to
support decision making
• Enable rapid responses to customer
requests for information or products
• Include analytical tools to evaluate
overall organizational performance
Enterprise Customer
Resource Relationship
Planning Management
Spring 2021 MIS 430 11
ERP software producers
Spring 2021 MIS 430 12
Enterprise Systems
Enterprise systems
integrate the key
business
processes of an
entire firm into a
single software
system that
enables information
to flow seamlessly
throughout the
organization. These
systems focus
primarily on internal
processes but may
include transactions
with customers and
vendors.
Spring 2021 MIS 430 13
How Enterprise Systems Work
See CLASS 2
Enterprise systems
feature a set of
integrated software
modules and a central
database that enables
data to be shared by
many different
business processes
and functional areas
throughout the
enterprise
Spring 2021 MIS 430 14
Enterprise Application Architecture
See CLASS 2
Enterprise
applications
automate
processes that
span multiple
business
functions and
organizational
levels and may
extend outside
the organization.
Spring 2021 MIS 430 15
Enterprise Applications
• Enterprise applications are systems that span functional areas and automate
processes for multiple business functions and organizational areas; they include:
Supply chain
Enterprise management systems
Resource
Customer relationship
Planning management systems
Knowledge
management
systems
Enterprise system
Spring 2021 MIS 430 16
What is Supply Chain Management
Supply chain management (SCM) is Supply chain management spans all
the management of a network of movement and storage of raw
interconnected businesses involved materials, work-in-process
in the ultimate provision of product inventory, and finished goods from
and service packages required by point of origin to point of
end customers consumption (supply chain).
Spring 2021 MIS 430 17
Business Value of Supply Chain Management Systems
• Match supply to demand
• Reduce inventory levels
• Improve delivery service
• Speed product time to market
• Use assets more effectively
• Reduced supply chain costs
lead to increased profitability
• Increased sales
Spring 2021 MIS 430 18
Global Supply Chains and the Internet
Enterprise systems supply
Before Internet, supply chain
some integration of internal
coordination hampered by
supply chain processes but
difficulties of using disparate
not designed to deal with
internal supply chain
external supply chain
systems
processes
Intranets and Extranets
• Intranets: To improve coordination
among internal supply chain
processes
• Extranets: To coordinate supply
chain processes shared with their
business partners (= suppliers,
providers, customers)
Spring 2021 MIS 430 19
Intranets and Extranets for Supply Chain Management
Intranets integrate
information from
isolated business
processes within the
firm to help manage its
internal supply chain.
Access to these private
intranets can also be
extended to authorized
suppliers, distributors,
logistics services, and,
sometimes, to retail
customers to improve
coordination of external
supply chain processes.
Spring 2021 MIS 430 20
The (future) Internet-Drive Supply Chain
The (future) Internet-
driven supply chain
operates like a
digital logistics
nervous system. It
provides
multidirectional
Communication
among firms,
networks of firms,
and e-marketplaces
so that entire
networks of supply
chain partners can
immediately adjust
inventories, orders,
and capacities.
Spring 2021 MIS 430 21
What Is Customer Relationship Management?
• Knowing the customer
• In large businesses, too many customers and too many ways customers
interact with firm
• Customer relationship management (CRM) systems
• Capture and integrate customer data from all over the organization
• Consolidate and analyze customer data
• Distribute customer information to various systems and customer touch points
across enterprise
• Provide single enterprise view of customers
Spring 2019 MIS 430 22
Customer Relationship Management (CRM)
CRM systems examine
customers from a
multifaceted
perspective. These
systems use a set of
integrated applications
to address all aspects of
the customer
relationship, including
customer service, sales,
and marketing.
Spring 2021 MIS 430 23
CRM software producers
Spring 2021 MIS 430 24
How CRM Systems Support Marketing
Customer relationship
management software
provides a single point
for users to manage
and evaluate
marketing campaigns
across multiple
channels, including e-
mail, direct mail,
telephone, the Web,
and wireless
messages.
Spring 2021 MIS 430 25
CRM Software Capabilities
The major CRM software
products support business
processes in sales,
service, and marketing,
integrating customer
information from many
different sources. Included
are support for both the
operational and analytical
aspects of CRM.
Spring 2021 MIS 430 26
Business Value of Customer Relationship
Management
Business benefits Retention rate /
• Increased customer
Churn rate
satisfaction • Number of customers
• Reduced direct- who continue / stop using
marketing costs or purchasing products
• More effective marketing or services from a
company.
• Lower costs for customer
• Indicator of growth or
acquisition/retention
decline of firm’s
• Increased sales revenue
customer base
Spring 2021 MIS 430 27
Enterprise Application Challenges
Highly expensive
to purchase and
implement
enterprise Technology
applications – total changes
cost may be 4 to 5
times the price of
software
Business process Organizational
changes changes
Spring 2021 MIS 430 28
ERP vs SCM vs CRM
• ERP, or enterprise resource planning, is a
software system that covers the whole of
company business processes including
purchasing, inventory, planning, sales order
management.
• SCM software can overlap with ERP
business processes, but tends to be focused
on flow of supply, value added processes, and
distribution of product including warehousing
and distribution centers.
• CRM software is more aimed at the front-
end of the business (clients) where ERP is
more focused on managing the back end.
Spring 2019 MIS 430 29
Case Study:
• Read “Bajaj Electricals Ltd” OR “Hershey’s” and prepare a post-project
presentation for the management
• Engineering and Projects, Appliances, Fans, Luminaires, Lighting and
Morphy Richards.
Click toadd text
Spring 2021 MIS 430 30
Case Study Way-of-working
Form Groups
Read the Case
35 minutes
Answer the questions
Prepare your recommendations in groups
Write down your bullet points for presentation (10 minutes); Make your visuals look
nice and to-the-point
Group presentations (5 minutes per group) Start at 11h10
Spring 2019 MIS 430 31
Resume
Operational Customer and Enterprise
excellence supplier intimacy systems
SCM
CRM
ERP
Spring 2021 MIS 430 32
Required reading
Reminder :
Laudon, • get your
Chapter 9 book
• do your
homework
Spring 2021 MIS 430 33
CASE Study/ Homework :
Presentations e-commerce (10 Slides)
• Think of a business idea for an e-commerce venture
• Explain what will be your :
• Type of e-business ? (B2Cs, C2C, etc…)
• Internet Business model?
• What problem do you solve ?
• How do you add value? What is your value Proposition?
• What will be your pricing strategy ?
• Digital goods, digital services ? Physical ?
• Design your processes (Choose one)
• Core business process
• Manufacturing of goods / production of service / trade / …
• Support business processes
• Marketing (catalog) / Order & sales process / payment process
• Logistic processes : procurement / handling / storing / delivery
• Indicate the Information Systems (For the Chosen Process)
•
Spring 2019 Input – processing – output MIS(per
430 process, per user profile) 34
• Internal IS / external links (e.g. suppliers, customers, ‘intimacy’)
Achieving Operational
Excellence and
Customer Intimacy
Additional slides
Supply Chain Management Systems
• Manage relationships with suppliers, purchasing firms, distributors, and logistics
companies
• Manage shared information about orders, production, inventory levels, etc.
• Goal is to move correct amount of product from source to point of
consumption as quickly as possible and at lowest cost
• Type of inter-organizational system:
• Automating flow of information across organizational boundaries
Spring 2021 MIS 430 36
Example of a Supply Chain Management
System
Customer orders, shipping notifications, optimized shipping plans, and other supply chain information
flow among Haworth’s Warehouse Management System (WMS), Transportation Management System
(TMS), and its back-end corporate systems.
Spring 2021 MIS 430 37
Customer Relationship Management Systems
• Help manage relationship with customers
• Coordinate business processes that deal with customers to optimize revenue and
customer satisfaction, and increase sales
• Combine sales, marketing, and service record data from multiple communication
channels to provide unified view of customer, eliminate duplicate efforts
Spring 2021 MIS 430 38
Example of a CRM system
Illustrated here are some of
the capabilities of
[Link], a market-
leading provider of on-
demand customer relationship
management (CRM) software.
CRM systems integrate
information from sales,
marketing, and customer
service.
Spring 2021 MIS 430 39
Knowledge Management Systems
• Intangible knowledge assets
• Knowledge about producing and delivering products
• Source of value and advantage for firms
• Knowledge management systems:
• Help capture, storage, distribute, and apply knowledge so that it can be
leveraged for strategic benefit
• Include systems for:
• Managing and distributing documents, graphics, other digital knowledge
objects
• Creating knowledge directories of employees with specialized expertise
• Distributing knowledge
Spring 2021 MIS 430 40
Intranets and Extranets
• Technology platforms that increase integration and expedite the flow of
information
• Intranets:
• Internal networks based on Internet standards
• Typically utilize a portal
• Extranets:
• Intranets extended for authorized use outside the company for
partners, customers
• Facilitate collaboration
Spring 2021 MIS 430 41
Collaboration and Communication Systems
• Interaction jobs:
• Primary value-adding activities are:
• talking
• e-mailing
• presenting
• persuading
• Involves knowledge and problem-solving that can’t be put into information
system
• 41% of U.S. labor force
• 70% of new jobs since 1998
Spring 2021 MIS 430 42
Collaboration and Communication Systems
• Enterprise-wide information system solutions for interaction
• Internet-based collaboration environments
• E-mail and instant messaging (IM)
• Cell phones and wireless handhelds
• Social networking
• Wikis
• Virtual worlds
Spring 2021 MIS 430 43
E-Business, E-Commerce, and E-Government
• E-business
• Use of digital technology and Internet to drive major business processes
• E-commerce
• Subset of e-business
• Buying and selling goods and services through Internet
• E-government:
• Using Internet technology to deliver information and services to citizens,
employees, and businesses
Spring 2021 MIS 430 44
Enterprise Applications
• Enterprise applications are systems that span functional areas and automate
processes for multiple business functions and organizational areas; they include:
• Enterprise systems
• Supply chain management systems
• Customer relationship management systems
• Knowledge management systems
Spring 2021 MIS 430 45
Enterprise Systems
• Integrate data from key business processes into single system
• Speed communication of information throughout firm
• Enable greater flexibility in responding to customer requests, greater accuracy in
order fulfillment
• Enable managers of large firms to assemble overall view of operations
• Alcoa used ERP to eliminate redundancies and inefficiencies in its disparate
systems
Spring 2021 MIS 430 46
Enterprise systems
Components :
• Supply Chain Management Systems
• Customer Relationship Management Systems
• Knowledge Management systems
• Intranets & Extranets
• Collaboration and Communication Systems
Potential :
• E-Business, E-Commerce, and E-Government
Spring 2021 MIS 430 47