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8/9/2019 Application of Operational Information Systems
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APPLICATION OFOPERATIONALINFORMATION
SYSTEMS
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TASKS Pay cheques are calculated, printed &
distributed each week
Sales invoices are verified, calculated,
printed and mailed each month Purchase orders are verified, calculated,
printed and mailed each day
Potential customers are identified and called
each day
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OPERATIONAL IS (TPS)
IS – perform or support completion
of these tasks
Operational IS – produce routine,
repetitive, descriptive, expectedand obective data that describe
past activities
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OPERATIONAL IS / TPS Information produced
!sually detailed
"i#hly structured
$ccurate %erived from internal sources
Produced re#ularly
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MANAGEMENT ADVANTAGES Increases efficiency
un faster
equire less personnel than other manual
sys' Several benefits
educed cost
Increased speed
Increased accuracy
Increased customer service
Increased data for decision makin#
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HOW AN ON-LINE ORDER-ENTRYSYS. WORKS
(o illustrate how an on)line order)entry sys' works,
let*s examine how a manufacturin# firm mi#ht use
one to process orders' $t this firm, salespeople
with notebook computers equipped with modems
are responsible for enterin# customer orders at thecustomer site' (o create an order, salespeople
brin# up an order)entry screen like the one shown'
(he salespeople enter the customer*s name, and the
computer sys' at the home office supplies thecustomer*s number, address, city, state, pin code
and credit terms in the correct places on the
screen' (he order)entry sys' obtains these data
from the accounts receivable sys'
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HOW AN ON-LINE ORDER-ENTRYSYS. WORKS
(he salespeople then enter the stock number of
each item the customer orders' (he order)entry
sys' obtains the stock name, stock description, and
price for each item from the inventory sys' and
displays these data on the screen' +hen thesalespeople enter the quantity ordered, the
inventory sys' is queried to determine if enou#h
stock is on hand to fill the order'
(he salespeople continue this sequence of entriesand responses until the last item ordered has been
entered' (hen the order)entry sys' immediately
subtotals the order and verifies that the
customer*s credit is #ood'
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HOW AN ON-LINE ORDER-ENTRYSYS. WORKS
It then produces immediately, at the
appropriately located printer, a pickin# slip
for warehouse personnel to use to fill the
order from inventory shelves, a mailin# labelfor the carton, and a packin# slip to be
included in the carton with the completed
order' (he accounts receivable sys' then uses
the completed sales order to bill the cust'
and create and print the sales invoice'
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OPERATIONAL MARKETING IS asic #oal – satisfy needs & wants of
customers
Sales systems
$dvertisin# systems Sales promotion systems
+arehousin# systems
Pricin# systems
(o be effective – coordinate with other
or#ani-ational IS like purchasin# sys', inv'
sys', accounts receivable sys', order)entry
sys'
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IT Increased productivity of salespeople
"elped firms mana#e customers better
.ocate prospective customers
/ustomi-e marketin# efforts to specific#roups and individuals
educe costs
+idened reach of many or#ani-ations
$lso captures data useful for tactical &
strate#ic decisions
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SALES FORCE AUTOMATIONSYSTEMS %esi#ned to increase productivity of sales people
!sual Sales $ctivities Identifyin# potential cust'
/ontactin# cust'
/allin# on cust'
0akin# sales pitches
/losin# sales
1ollowin# up on sales
Supports administrative tasks of salespeople/ustomer contact mana#ement
/ustomer call reports
(ravel expense reports
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SALES FORCE AUTOMATIONSYSTEMS Support Sales process
0ana#in# sales cycle
Providin# electronic catolo#s
Providin# electronic sales presentations
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PROSPECT INFORMATIONSYSTEM .ocatin# potential customers
1iles of sales leads – prospects files – easier to search
or summari-e
2lectronic directory databases – source of sales leads
Outputs of prospect information systems .ists of prospects by location
.ists of prospects by cate#ory
.ists of prospects by income
.ists of prospects by other classifications Online databases – provide prospect information
Searched by database query software or plotted by
mappin# software
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CONTACT MANAGEMENT SYSTEM Provide information to sales force pertainin#
to customers, product or service
preferences, sales history data & historical
record of sales calls3visits Output – /all report
4o' of sales calls made by salesperson
4o'3amount of sales made per customer, per
visits, per cate#ory
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CONTACT MANAGEMENT SYSTEM Identify cust' who prefer certain types of
prods' or who may be ready to purchase
accessories for previous purchases
Sortin# dates of previous visits – identifycust' who may be runnin# out of prod' and
need to place another order
+hen stock has been placed on sale – notify
cust' who are interested in or who re#ularlypurchase these items
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OTHER SALES FORCEAUTOMATION SYSTEMS $lso provide support for other routine,
repetitive salesperson activities(ravel expense reports
$ppointment calendars(elephone & address details
Sales letter creation & distribution
2mail & fax
Internet access – info' on industry,competitors and customers
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MICROMARKETING & DATAWAREHOUSE SYS. 0icromarketin# – Pitchin# sales or advertisin#
campai#ns to narrowly defined customer tar#ets
/an be used – identify & tar#et specific
prospects from lar#e databases
$voids waste of resources
equires – %ata +arehouse
Purpose of data minin#
Identify new marketin# opportunities(o allow marketin# deptt' (o focus on sales,
advertisin# & promotional campai#ns on market
niches
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TELEMARKETING SYSTEMS
!se of telephone to sell
products & services
Improve productivity of salesforce
"as allowed firms to increase
sales and #ain market sharewhile decreasin# costs per sale
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DIRECT MAIL ADVERTISINGSYSTEMS
5enerate sales by mailin#
sales brochures & catalo#s
directly to customers /ustomer mailin# lists are
maintained
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POINT-OF-SALE SYSTEMS POS sys' /apture data about orders at point
of sale
Info' 1rom POS – input to financial acct#'
Sys' – input to marketin# info' Sys' POS sys' – provide immediate updates to
sales & inventory sys' & allow firms to
monitor sales trends
Provide cust' +ith terminals
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DELIVERY TRACKING & ROUTINGSYS. %elivery systems place small satellite dishes on
delivery vehicles & use 5PS to monitor movement &
location
Some firms even provide customers with tra!"#$
%%t' %*t+ar' to monitor status of theirpacka#es
1irms – route delivery vehicles – most efficient
manner
.ay out deliveries on electronic map & then havemappin# software identify best routes for delivery
vehicles save firms #reat deal of time & money
F',E lets customers use +ebsite on Internet totrack their packa#es
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ELECTRONIC SHOPPING &ADVERTISING 6irtual shoppin#7electronic shoppin#8
Interspace technolo#y – 6irtual env' shared by
many users & in which they can interact 6irtual stores & malls
2lectronic kiosks9iosks – computer terminals placed in walls or
other structures on streets and public places
!sed for marketin# purposes – multimedia
presentations & electronic catalo#s, /(
Provide :;)hr access to prods' & prod' info' to
customers
Internet advertisin#
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ASSIGNMENT
!se an Internet search tool to identify two
/ontact 0ana#ement software pro#rams'
4ote the features of each pro#ram, includin#
its cost' /reate a memo to your boss, Sales
0ana#er, comparin# the two pro#rams,
recommendin# one to purchase, and
ustifyin# the software in terms of sales force
productivity' Include the +eb site addresses
you used as references'
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RALSTON ELECTRIC COMPANY0elinda 9aikati, a sales mana#er for alston
2lectric company is considerin# providin# computer
support for her sales personnel' "er salespeople
sell electric motors to manufacturin# firms in seven
0idwestern states and spend most of their time onthe road' 0ost of them live in the area they serve'
+hile on the road, salespeople telephone in orders
to order clerks located at the main office who use
terminals connected to the firm*s mainframe' (hissystem allows the salespeople to confirm
immediately that enou#h stock is on hand to meet
each order and that the customer*s credit is
satisfactory'
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RALSTON ELECTRIC COMPANY
0s' 9aikati wants to know if there is computer
support that she can provide to her salespeople
to help them mana#e their sales activities so as
to improve their productivity and performance'
0s' 9aikati as asked you for help'Provide 0s' 9aikati with a list of potential
operational)level information systems
applications that mi#ht help her salespeople
mana#e their everyday sales activities moreefficiently and productively' 1or each application,
describe how the application will improve the
productivity and performance of the sales force'