1. Chapter 8 Functional Applications All Sections Chapter 7 Organizations & Information Systems Sections Q2 – Q3 (Skip Sections Q1 & Q4)

2. Security Today’s Topic Information Quality IS Basics E-commerce AccessExcel PowerPoint Types of IS Systems Development Database Processing & Design Spreadsheet Design Business Intelligence Functional, Crossfunctional & Interorganizational Telecommu -nications Hardware & Software

3. Cross- functional Organi- zational IS Functional CRM ERP & EAI Functional Units Problems

4.  Understand the differences between functional and cross-functional systems.  Know the characteristics, benefits and problems associated with CRM & ERP.  Distinguish between ERP and EAI.

6.  Data duplication, data inconsistency  Disjointed applications

7.  Limited information and lack of integrated information  Isolated decisions  Increased expense

8.  Organize around integrated activities that span functional units.  Underlying business processes are changed.  Software is developed to support improved business processes.

9.  Customer Relationship Management (CRM)  Enterprise Resource Planning (ERP)  Enterprise Application Integration (EAI)

10.  A typical dissatisfied customer will tell 8-10 people about his or her experience.  75% of complaining customers will do business with the company again if it quickly takes care of a service snafu.  A company can boost profits 85% by increasing its annual customer retention by only 5%

11.  It costs 6 times more to sell to a new customer than to sell to an existing customer.  The odds of selling a product to a new customer are 15% whereas the odds of selling a product to an existing customer are 50%.

12.  Customer-centric philosophy  Cross-functional IS  Provides all employees with tools needed to respond to any customer need  Thorough data collection

13. “In terms of customer service, they are a revolutionary company.” “Seamless process... Won’t have any hesitation the next time I order from them.” “Take care of the customer no matter what. They just want to please you.” http://www.youtube.com/watch?v=MTWLLnRS3 5Q

14. What is the CRM Customer Life Cycle?

15.  Identify, target and retain most profitable customers.  Customize products and services to each customer.  Identify customer desires.  Meet customers needs.

16.  Understand customers’ wants and needs  Change appropriate business processes not just IT  Prepare customers and employees for change

17.  Cross-functional IS  Cooperative, integrated philosophy  Centralized database  Formal approach  Very expensive

18.  More Efficiency  Higher Quality  Lower Costs  Enterprise Agility  Better Decision-making / Higher Profits

19.  Project complexity  Participation by appropriate employees  User training

20.  Integrates existing information systems with software interfaces for the purposes of: ◦ sharing data ◦ increasing communication ◦ making a gradual transition to ERP

21. ERP