Unit -4

MIS
 ENTERPRISE SYSTEMS
What Are Enterprise Systems?

Enterprise System Architecture

 ENTERPRISE SYSTEMS

Enterprise Systems:

• Enterprise Resource Planning (ERP) systems

• Interdependent software modules with a common central
database that support basic internal business processes for
finance and accounting, human resources, manufacturing and
production, and sales and marketing
• Enables data to be used by multiple functions and business
processes for precise organizational coordination and control.
 Business Value of Enterprise Systems

• A more uniform organization

• More efficient operations and customer-driven business processes

• Firm wide information for improved decision making

 SUPPLY CHAIN MANAGEMENT
SYSTEMS
Supply chain:

• Network of organizations and business processes for procuring raw materials,

transforming into products, and distributing them to customers

• Materials, information, and payments flow through the supply chain in both
directions.

Supply chain management:

• Coordination of business processes to speed information, product, and

fund flows up and down a supply chain to reduce time, redundant effort,
and inventory costs
SUPPLY CHAIN MANAGEMENT SYSTEMS
 Supply Chain Processes

SCOR (Chain Operations Reference Model) identifies five major supply chain
processes:

• Plan: Balancing demand and supply to meet sourcing, production, and delivery
requirements
• Source: Procurement of goods and services needed to create a product or
service
• Make: Processes that transform a product into a finished state
• Deliver: Processes to manage order transportation and distribution
• Return: Processes associated with product returns and post delivery customer
support
• Logistics : Planning and control of all factors that have an impact on the supply
chain
Key Supply Chain Management Processes
Metrics for measuring supply chain performance:

• Fill rate (the ability to fill orders by the due date)

• Average time from order to delivery

• The number of days of supply in inventory

• Forecast accuracy

• The cycle time for sourcing and making a product

Supply Chain Management and the Internet
 SUPPLY CHAIN MANAGEMENT SYSTEMS

Push- versus Pull-Based Supply Chain Models

 CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS

Customer Relationship Management (CRM):

• Business and technology discipline for managing customer relationships to

optimize revenue, profitability, customer satisfaction, and customer retention
• Capture and integrate customer data from all over the organization

• Consolidate and analyze the data

• Distribute results to various systems and customer touch points across the
enterprise
•
 CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS

• A method of interaction with a customer, such as telephone, e-mail, customer

service desk, conventional mail, Web site, or retail store .

• Can range from niche tools to large-scale enterprise applications

• Can link to other major enterprise applications, such as supply chain management

• Can include modules for PRM and employee relationship management (ERM)
Customer Relationship Management (CRM) Software

• Typically include capabilities for

o Sales Force Automation (SFA)

o Customer service

o Marketing
CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS

CRM Software Capabilities

 CUSTOMER RELATIONSHIP MANAGEMENT
SYSTEMS

Operational and Analytical CRM

Operational CRM:

• Customer-facing applications, such as sales force automation, call center

and customer service support, and marketing automation

• Examples: Campaign management, e-marketing, account and contact

management, lead management, telemarketing, teleselling, e-selling, field
sales
 CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS

Analytical CRM:

• Applications that analyze customer data generated by operational CRM

applications to provide information for improving business performance

• Examples: Develop customer segmentation strategies and customer profiles;

analyze customer or product profitability; identify trends in sales length
cycle; analyze leads generated and conversion rates
 CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS

Business Value of Customer Relationship Management Systems

• Increased customer satisfaction

• More effective marketing and reduced direct marketing costs

• Lower costs for customer acquisition and retention

 CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS

Business Value of Customer Relationship Management Systems

(Continued)

• Increased revenue from identifying most profitable customers and segments for
marketing, cross-selling, up-selling

Reduce churn rate:

• Number of customers who stop using or purchasing products or services from a

company
 CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS

The Importance of CRM Performance Measurement

Successful CRM implementations require that financial and operation goals,

and metric for evaluation, are clearly defined at outset of project

Metrics for CRM may include:

• Cost per lead

• Cost per sale

 CUSTOMER RELATIONSHIP MANAGEMENT
SYSTEMS
The Importance of CRM Performance Measurement (Continued)

• Number of repeat customers

• Reduction of churn

• Sales closing rate

• Customer Lifetime Value (CLTV): Difference between revenues and expenses minus
the cost of promotional marketing used to retain an account
 S.No ERP CRM

1. ERP are the software solutions that helps organizations CRM is the software that automates the customer
to manage their business processes. communication with the organization.

2. It is a centralized system that streamline all the CRM is the single platform for turning customers into a
processes. potential client.

3. ERP is termed as the super set of SAP. It is the subset of SAP

4. ERP is a web-based application. CRM is a web based solution.

5. ERP systems are more focused about the organization CRM systems are focused about the customer relations
growth and cost reduction. with the organization.

6. They support the back office activities. They support the front office activities.

7. Examples – NetSuite ERP, Scoro, AcTouch, etc. Examples – Salesforce CRM, HubSpot CRM, Zoho CRM,
etc.
 Knowledge Management

• A knowledge management system is any kind

of IT system that stores and retrieves
knowledge to improve understanding,
collaboration, and process alignment.
Knowledge management systems can exist
within organizations or teams, but they can
also be used to center your knowledge base
for your users or customers.
 Types of knowledge in
knowledge management system

• Explicit knowledge
This is knowledge that is easily documented, shared, and deployed.
Examples might include company policy, contract entitlements, blogposts,
how-to videos, user’s guides, troubleshooting manuals, and industry
regulations.
• Tacit knowledge
Tacit Knowledge is gained from personal traits and experience and could
be more difficult to capture and disseminate. it even includes intuition and
judgment. Sophisticated Knowledge Management Systems that can
leverage AI and reasoning fare better in their ability to do it.
• Implicit knowledge
Implicit knowledge is not consciously accessible, for example, knowing
how to ride a bicycle or swim. Another way is to look at Amnesia. When
someone is affected by it, they forget explicit and even tacit knowledge in
many instances, but not implicit.
 Benefits
• Reduce the cost of customer service
By making it easier for contact center agents to find accurate
information, a Knowledge Management System reduces
their average handling time of resolving customer service issues.
Faster resolution translates to happier customers and efficient and
happier employees.
• Help customers self-serve
An AI-powered Knowledge Management System can help customers
find answers to their questions, even outside of normal business
hours and without having to wait for an agent.
• Speed up employee training and on boarding
By providing relevant knowledge on demand, knowledge
management systems can reduce the need for training and
protracted on boarding and speed up employee time to competency.
 Benefits
• Faster information findability and problem-solving
Whether it’s solving customer service issues and providing expert advice to
customers in the case of contact centers, or answering employee questions in the
case of HR, a Knowledge Management System offers fast, accurate, and consistent
answers, and offers it proactively. It can also give detailed data on how (or if!)
information is being used.
• Easily share expert knowledge
How do you get knowledge from a business leader or veteran customer service
agent to others who need it? A Knowledge Management System provides the
repository for that knowledge and the mechanism through which it can be
authored and efficiently delivered across channels and touchpoints.
• Capture expertise from the best agents
The real-world experience of the best customer service agents is immeasurably
valuable. A mature Knowledge Management System also includes good content
management capabilities. It facilitates the capture and dissemination of expert
knowledge and knowhow at the point of need, across channels and touchpoints.
The system can thus make all your agents as good as the best ones and deliver
transformational benefits for the customer, the agent, and the business! Know
what we mean by cloning your best agents.
 Advantages of Implementing ERP

• Reality check: When enterprises consider ERP systems, it forces a reckoning in several
ways. First, they must account for the hardware and software systems that are already in
place. As many enterprises discover, different business and support units throughout the
organization may have circumvented central IT protocol and acquired their own
applications and systems.
• Lower IT costs. To be clear, these don't come immediately. A new ERP system is a major
investment and its implementation is always time consuming. However, one unified ERP
system is less costly than disparate systems for human resources, financial management,
and supply chain management.
• End-to-end visibility. One of the sexiest features of ERP is that it allows high-level
decision makers real-time snapshots of business operations. This includes an integrated
view of areas such as inventory, shipping, supply chain management, manufacturing,
sales and financials. All this data provides actionable business intelligence.
• Data security. Data security can be a blessing or a curse. While having a central repository
for your data can be nerve-wracking, ERP systems and service providers that host them
often have better data security in place than enterprises that host their own on-premise
ERP systems.
 Challenges of Implementing ERP

• Data security. When it comes to data security, ERP can be a blessing or a curse. On one hand,
all your data is in one place where you can keep an eye on it. On the other hand, all your data is
on one place where cybercriminals can look. If your ERP system is hosted in the cloud by a third
party, which most of them are, you may not have complete control over your sensitive data.
• Total cost. While ERP systems can result in lower per-capita IT costs, particularly for things like
training, the upfront costs are almost always higher. The software itself will cost well into the
five figures at a minimum. The cost of implementation -- when you factor in the cost of ERP
consultants for project management and new IT hires -- can be more than three times that of
standard, stand-alone application.
• Customization. This can be costly. Most enterprises only consider ERP software in the first place
because the applications are modular, allowing users to pick and choose which ones they want,
knowing that they can be snapped together. However, one size seldom fits all, and some
customization is often needed. If you host your ERP system on-premises, you have more
opportunity to customize it.
• Data migration. It's the single biggest challenge for most enterprises. Whether your data is
paper-based or in digital form, it will take time and money to move that data, clean it up to
remove obsolete or duplicate items, and conform it to the new format. Data security during
and after the migration process carries great risk.
 Security Issues in Information Technology

• Viruses and Malicious Programs

• With the increased use of the Internet comes an increased risk of a business’s computer
network being affected by malicious programs such as viruses. A computer virus is a
piece of computer code that is inserted into another program and lies dormant until
triggered by an unsuspecting user. This trigger can be as simple as opening a file
attachment or downloading a file from the Internet.
• Phishing
• One of the most prevalent cyber-attacks is the phishing scam. Phishing is when a
scammer uses fraudulent emails or texts, or copycat websites to get you to share
valuable personal information – such as account numbers, Social Security numbers, or
your login IDs and passwords.
• Denial of Service
• A denial-of-service (DoS) attack occurs when legitimate users are unable to access
information systems, devices, or other network resources due to the actions of a
malicious cyber threat actor. Services affected may include email, websites, online
accounts (e.g., banking), or other services that rely on the affected computer or
network.
 Ethical issues in IS
• Privacy: This concern relates to the questions about what information should be shared? With
whom? What information should be forced to keep to ones’ self only? The privacy concern has
increased the importance of information sensitivity and its value on a strategic level, so it is required
to be private and not shared.
• Accuracy: This concern related to the questions that who is going to be responsible for the
authenticity of the information? If the authenticity hurts, who is going to be set up for the inaccurate
information being conveyed and loss occurred in the result. In an information system, inaccurate
data will bring same results, so it is essential to ensure the data integrity while using, referring and
citing it.
• Property: The third ethical issue is the property of the information that who is conveying the
information and at what price? Who own the ways and channels through which information is being
transferred?The complex issue of privacy relates to the intellectual property of the information, and
it is important to disseminate the information with the replication and preserve original version
(Kizza, 2007).
• Accessibility: This concern relates to the questions that what is right for an individual or organization
access information and what are the conditions under which this access is obtained?
• The last main ethical issue is accessibility to the information data. In general, information system
should be designed in such a way as induvial must have access to the educational information
through databases, internet, libraries and other sources (Kizza, 2007). However, the sensitive
information, e.g., personal information on individuals, examination papers, research articles not
intended to be shared publicly, sensitive information about the national and international institution
is not meant to be shared on public sources without legitimate approval
 Social Issues in Information System

• Culture: The issues of education, uneven distribution of wealth, multiethnic

and multigenerational workforce are commonly discussed in society. The
information systems have made it difficult to learn the latest knowledge for all
as the this latest education can be possessed by privileged social class only
which is increasing disparity among society.
• Relationships Issues: Unlike past, the development of partnerships are more
diverse with long distant teams working together. The relationship of buyers,
sellers and suppliers have become easy, but it has also created social issues like
lack of trust and low moral values. Many cases have been reported where
people have used personal and business information for their stake or fraud
purpose.
• Law and Order Issues: The national and international databases have
information about millions and billions of people for identity purpose. But the
cybercrime practices and hacking of these sensitive websites have laid the
foundation for many law and order situations.
 Social Issues in Information System

• Cultural Behavior and Identity Issues: The pace of globalization has

become possible due to the introduction of the information system. This
system has enabled the business to grow on a global level due to online
inventory systems and information transfer. This aspect has caused great
impact on human interaction, organizational recruitment systems,
networking and societal presence which are also transforming the cultural
behaviors of people
• Information Usage Issues: The information is created or collected for a
purpose, but inappropriate use of information can cause serious problems.
For example, in the recent controversial scandal of “Blue Whale” game in
many countries (‶Blue Whale Game Blamed, ″2017) the convicts had an e-
mail address and information about the teenagers and children who
installed the game, and it caused them to kill themselves as it was a trap
from the game designers. Therefore, using the technology and social
websites or engines have various risks attached to it.
 Social Issues in Information System

• Health and Safety: The people-oriented organizations have health and

safety concerns faced by the workers in their workplace which require the
responsible regulations and acts to provide them legal cover. The most
participants of information system work on various computer stations at
their work, and it is important to outline their rights and responsibilities of
both employers and employees to maintain occupational health and safety.
• Accountability and Control: The moral obligation related to information
systems demand accountability and control over the information transfer
from one point to the other. This is important to comply with the rule and
regulations. For example, information gathered by the bank about client
requires complete secrecy and Central bank of any country has
accountability and monitoring standards for commercial banks for their
evaluation and regulation purpose to avoid fraud and secure consumer
rights (Beauchamp, Bowie, & Arnold, 2004).
 Introduction to Data Warehousing & Data
Mining
• Data Warehousing
Data warehousing is a collection of tools and techniques using which more
knowledge can be driven out from a large amount of data. This helps with
the decision-making process and improving information resources.
Data warehouse is basically a database of unique data structures that
allows relatively quick and easy performance of complex queries over a
large amount of data. It is created from multiple heterogeneous sources.
• Characteristics of Data Warehousing
• Integrated
• Time variant
• Non-volatile
 Data Mining

• Data mining refers to extracting knowledge from large amounts of data.

The data sources can include databases, data warehouse, web etc.
• Knowledge discovery is an iterative sequence:
• Data cleaning – Remove inconsistent data.
• Data integration – Combining multiple data sources into one.
• Data selection – Select only relevant data to be analysed.
• Data transformation – Data is transformed into appropriate form for
mining.
• Data mining – methods to extract data patterns.
• Pattern evaluation – identify interesting patterns in the data.
• Knowledge representation- visualization and knowledge representation
techniques are used.
 Scope of Data mining

• Automated Prediction of trends and behaviors: Data

mining automates the process of finding the predictive
information in large databases. For example : Consider a
marketing company. In this company, data mining uses the
past promotional mailing to identify the targets to maximize
the return.
• Automated discovery of previously unknown patterns:
Data mining sweeps through the database and identifies
previously hidden patterns. For example: In a retail store
data mining will go through the entire database and find the
pattern for the items which are usually brought together.
 Cloud computing
• In cloud computing the word cloud means internet. So the
phrase ‘cloud computing’ means services like storage, servers
etc. are delivered to any organization’s computer and devices
through the internet. In other words we can say cloud
computing is a huge resource pool from where any one having
internet access can take resources and can upload his/ her
resources.
 Benefits of Cloud Computing:
• Scalability: With Cloud hosting, it is easy to grow and shrink the number and size of servers
based on the need. This is done by either increasing or decreasing the resources in the
cloud.
• Instant: Whatever you want is instantly available in the cloud.
• Save Money: An advantage of cloud computing is the reduction in hardware costs. Instead
of purchasing in-house equipment, hardware needs are left to the vendor. For companies
that are growing rapidly, new hardware can be large, expensive, and inconvenient. Cloud
computing alleviates these issues because resources can be acquired quickly and easily.
Even better, the cost of repairing or replacing equipment is passed to the vendors.
• Reliability: Rather than being hosted on one single instance of a physical server, hosting is
delivered on a virtual partition that draws its resource, such as disk space, from an
extensive network of underlying physical servers. If one server goes offline it will have no
effect on availability, as the virtual servers will continue to pull resources from the
remaining network of servers.
• Physical Security: The underlying physical servers are still housed within data centers and
so benefit from the security measures that those facilities implement to prevent people
from accessing or disrupting them on-site.
• Outsource Management: When you are managing the business, Someone else manages
your computing infrastructure. You do not need to worry about management as well as
upgradation.
Queries??