MIS

UNIT-2- BUSINESS APPLICATION OF INFORMATION SYSTEM

E-BUSINESS SYSTEM

• E-business systems are a set of online technologies, equipment and tools that a
business uses to conduct business via the Internet.
• Functional Business System
• Information systems can be grouped into business function categories; however, in the
real world information systems are typically integrated combinations of functional
information systems. Functional business systems are composed of a variety of types
of information systems (transaction processing, management information, decision
support, etc) that support the business functions of:
E-BUSINESS SYSTEM

 Accounting
 Finance
 Marketing
 Productions/operations management
 Human resource management
•  There is a strong emphasis in many organizations to develop such composite or cross-functional information
systems that cross the boundaries of traditional business functions in order to reengineer and improve vital
business processes. These organizations view cross-functional information systems as a strategic way to share
information resources and improve the efficiency and effectiveness of a business, thus helping it attain its strategic
objectives.
• Business firms are turning to Internet technologies to integrate the flow of information among their internal business
functions and their customers and suppliers. Companies are using the World Wide Web and their intranets and
Extranets as the technology platform for their cross-functional and interorganizational information systems.
E-BUSINESS SYSTEM

• Marketing Systems:
•  The business function of marketing is concerned with the planning, promotion, and sale of existing
products in existing markets, and the development of new products and new markets to better serve
present and potential customers.
•  Marketing information systems integrate the information flow required by many marketing activities.
Marketing information systems provide information for:
 Internet/intranet web sites and services make an interactive marketing process possible where customers
can become partners in creating, marketing, purchasing, and improving products and services.
 Sales force automation systems use mobile computing and Internet technologies to automate many
information processing activities for sales support and management.
 Other marketing systems assist marketing managers in product planning, pricing, and other product
management decisions, advertising and sales promotion strategies, and market research and forecasting.
E-BUSINESS SYSTEM

• Manufacturing information systems support the production/operations function, which

includes all activities concerned with the planning and control of the processes that
produce goods or services.
• The production/operations function is concerned with the management of the operational
systems of all business firms.
• Information systems used for operations management and transaction processing support
all firms that must plan, monitor, and control inventories, purchases, and the flow of goods
and services.
E-BUSINESS SYSTEM

• The human resource management (HRM) function involves the recruitment, placement,
evaluation, compensation, and development of the employees of an organization. The goal of HRM
is the effective and efficient use of the human resources of a company. Thus, human resource
information systems are designed to support:
 Planning to meet the personnel needs of the business.
 Development of employees to their full potential.
 Control of all personnel policies and programs.
•  Traditionally, businesses used computer-based information systems to:

 Produce paychecks and payroll reports

 Maintain personnel records
 Analyze the use of personnel in business operations.
E-BUSINESS SYSTEM

• Accounting information systems are the oldest and most widely used information
systems in business. Computer-based accounting information systems:
 Record and report the flow of funds through an organization on a historical basis and
produce important financial statements such as balance sheets and income
statements.
 Produce forecasts of future conditions such as projected financial statements and
financial budgets.
• Operational accounting systems focus on transaction processing systems. They
emphasize legal and historical record-keeping and the production of accurate financial
statements. Typically, operational accounting systems include:
E-BUSINESS SYSTEM

 Order processing
 Inventory control
 Accounts receivable
 Accounts payable
 Accounts payroll
 General ledger systems.
E-BUSINESS SYSTEM

 Management accounting systems focus on the planning and control of business

operations. They emphasize:
 Cost accounting reports
 Development of financial budgets and projected financial statements
• Analytical reports comparing actual to forecasted performance.
• Computer-based financial management systems support financial managers in
decisions concerning:
 The financing of a business.
 The allocation and control of financial resources within a business.
E-BUSINESS SYSTEM

• Major financial information system categories include:

 Cash and investment management.
 Capital budgeting
 Financial forecasting
 Financial planning
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

 Customer relationship management (CRM) refers to the principles, practices, and

guidelines that an organization follows when interacting with its customers.
• Elements of CRM range from a company's website and emails to mass mailings and
telephone calls.
• Social media is one-way companies adapt to trends that benefit their bottom line.
• The entire point of CRM is to build positive experiences with customers to keep them
coming back so that a company can create a growing base of returning customers.
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

• Types of Customer Relationship Management (CRM) Technology

• CRM Software
• CRM Cloud Solutions
• CRM Human Management and Artificial Intelligence
• CRM Software
• Special CRM software aggregates customer information in one place to give businesses easy access to data, such
as contact data, purchase history and any previous contact with customer service representatives.
• This data helps employees interact with clients, anticipate customer needs, recognize customer updates and
track performance goals when it comes to sales.
• CRM software's main purpose is to make interactions more efficient and productive. Automated procedures
within a CRM module include sending sales team marketing materials based on a customer's selection of a
product or service. Programs also assess a customer's needs to reduce the time it takes to fulfill a request.
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

• CRM Cloud Solutions

• Cloud-based systems provide real-time data to sales agents at the office and in the field as long
as a computer, smartphone, laptop or tablet connects to the internet.
• Such systems boast heightened accessibility to customer information and eliminate the
sometimes-complicated installation process involved with other CRM products or software.
• The convenience of this type of system, however, has a trade-off. If a company goes out of
business or faces an acquisition, access to customer information may become compromised.
• A business might have compatibility issues when and if it migrates to a different vendor for this
kind of software. Also, cloud-based CRM programs typically cost more than in-house programs.
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

• CRM Human Management and Artificial Intelligence

• All of the computer software in the world to help with CRM means nothing without
proper management and decision-making from humans.
• Plus, the best programs organize data in a way that humans can interpret readily and use
to their advantage. For successful CRM, companies must learn to discern useful
information and superfluous data and must weed out any duplicate and incomplete
records that may give employees inaccurate information about customers.
ERP SYSTEM

• Enterprise resource planning (ERP) refers to a type of software that organizations use to manage day-to-
day business activities such as accounting, procurement, project management, risk management and
compliance, and supply chain operations. A complete ERP suite also includes enterprise performance
management, software that helps plan, budget, predict, and report on an organization’s financial results.
An ERP system typically performs the following functions −
•Supports the integrated business process inside the organization.
•Improves capital planning and helps in executing organizational plans and strategies.
•Helps speed up the decision-making process over the analysis of accurate data.
•Helps extend the business network to wider domains, expanding the products and services to reach more
customers, suppliers, and partners.
•Identifies operational risks to improve governance.
•Provides protection against organizational data breaches and security threats to leakage of information.
•Makes the organization adaptable to the rapid changes in the business process according to the needs.
•Gives long-term profit by providing means to increase the customer base.
ERP SYSTEM

• The Types of ERP

• 1. Cloud ERP
• Cloud ERP is the most recent offering of this technology, which has been made possible by high-speed internet
and other technological developments. This is the most flexible and best type of ERP system.
• 2. On-Premise ERP
• Before high-speed internet, most companies had to use an on-premise system. This ERP system must be installed,
maintained and upgraded within the walls of an individual business. It is often slower, less efficient, and more
costly to run because of all the infrastructure management a company must have and maintain.
• 3. Software-as-a-Service ERP
• In this case, ERP is offered and hosted by a SaaS vendor or provider who handles all the upgrades, security issues,
and data management. The SaaS offers a fully formed software offering compared with only the infrastructure
available through cloud computing.
ERP SYSTEM

• 4. Generalist System.
• Both cloud-based and on-premise systems can be general in nature. This means they can be customized
across different industries. These solutions must be very flexible to provide integration within highly
varying circumstances
• 5. Open-sourced ERP.
• This is a rare type of ERP, which allows the continuous development of unique apps that can provide a high-level of
customization.
• 6. Vertical System.
• Some smaller ERP vendors offer hyper-specialized solutions designed to meet the intricate needs of one particular
industry.
• 7. Off-the-Shelf Solutions.
• These ERP solutions are designed for small businesses who don’t need all the capabilities of the larger players. More
affordable and easier to implement, these off-the-shelf solutions focus on only the critical, basic offerings of an ERP
system.
KNOWLEDGE MANAGEMENT SYSTEM.

• A knowledge management system comprises a range of practices used in an organization to

identify, create, represent, distribute, and enable adoption to insight and experience. Such insights
and experience comprise knowledge, either embodied in individual or embedded in
organizational processes and practices.
• Purpose of KMS
• Improved performance
• Competitive advantage
• Innovation
• Sharing of knowledge
• Integration
KNOWLEDGE MANAGEMENT SYSTEM.

• Continuous improvement by −
• Driving strategy
• Starting new lines of business
• Solving problems faster
• Developing professional skills
• Recruit and retain talent
 BUSINESS INTELLIGENCE

Definition of Business Intelligence

The term Business Intelligence (BI) refers to technologies, applications and practices for the collection,
integration, analysis, and presentation of business information.

The purpose of Business Intelligence is to support better business decision making.

Essentially, Business Intelligence systems are data-driven Decision Support Systems (DSS). Business
Intelligence is sometimes used interchangeably with briefing books, report and query tools and executive
information systems.
 BENEFITS OF BI

With BI superior tools, now employees can also easily convert their business knowledge via the
analytical intelligence to solve many business issues, like increase response rates from direct mail,
telephone, e-mail, and Internet delivered marketing campaigns.
With BI, firms can identify their most profitable customers and the underlying reasons for those
customers‘ loyalty, as well as identify future customers with comparable if not greater potential.
Analyze click-stream data to improve e-commerce strategies
Quickly detect warranty -reported problems to minimize the impact of product design deficiencies.
Discover money-laundering criminal activities.
 BENEFITS OF BI

Analyse potential growth customer profitability and reduce risk exposure through more accurate financial
credit scoring of their customers
Determine what combinations of products and service lines customers are likely to purchase and when.
Analyse clinical trials for experimental drugs.
Set more profitable rates for insurance premiums.
Reduce equipment downtime by applying predictive maintenance.
 Determine with attrition and churn analysis why customers leave for competitors and/or become the
customers.
Detect and deter fraudulent behavior, such as from usage spikes when credit or phone cards are stolen.
Identify promising new molecular drug compounds
BI ARCHITECTURE FRAMEWORK IN
MODERN BUSINESS

There are various components and layers that business

intelligence architecture consists of. Each of that
component has its own purpose.

 let’s first see what exactly these components are made

of.
A solid BI architecture framework consists of:
Collection of data
Data integration
Storage of data
Data analysis
Distribution of data
Reaction based on insights
 BUSINESS ANALYTICS

Business analytics is the process of collating, sorting, processing, and studying business data, and using
statistical models and iterative methodologies to transform data into business insights

Usage of Business Analytics:

 Typically, commercial organizations use business analytics in order to : Analyze data from multiple
sources
 Use advanced analytics and statistics to find hidden patterns in large datasets
 Disseminate information to relevant stakeholders through interactive dashboards and reports
 Monitor KPIs and react to changing trends in real-time
 Justify and revise decisions based on up-to-date information
 BUSINESS ANALYTICS

Benefits of implementing BA in your organization

Apart from having applications in various arenas, following are the benefits of Business Analytics and its
impact on business –
 Accurately transferring information
 Consequent improvement in efficiency
 Help portray Future Challenges
 Make Strategic decisions
 As a perfect blend of data science and analytics
 Reduction in Costs
 Improved Decisions
 Share information with a larger audience
 Ease in Sharing information with stakeholders