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
Salesforce.com, 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