UNIVERSITI TEKNOLOGI MARA

KAMPUS SAMARAHAN

MGT 300
INFORMATION TECHNOLOGY IN BUSINESS

INDIVIDUAL ASSIGNMENT
(Summary Unit 3)


Name : Nur shaiylia bt Wahid Marican
No matrik: 2012627782
Group : Bm1114C













Chapter 9 Enabling the Organization-Decision Making
Decision Making
Reasons for Growth of Decision Making Information System
People need to analyse large amounts of information Improvements in technology
itself, innovations in communication,
People must make decisions quickly Time is of the essence and people simply do
not have time to sift through all the information manually.
People must apply sophisticated analysis techniques, such as modelling and
forecasting, to make good decisions Information systems substantially reduce the
time required to perform these sophisticated analysis techniques
People must protect the corporate asset of organizational information Information
systems offer the security required to ensure organizational information remains safe.
Model A simplified representation or abstraction of reality
Transaction Processing System- Moving up through the organizational pyramid users move
from requiring transactional information to analytical information


Transaction processing system the basic business system that serves the operational level
(analysis) in an organization
Online transaction processing (OLTP) the capturing of transaction and event information
using technology to :-
1. Process the information according to defined business rules,
2. Store the information,
3. Update existing information to reflect the new information
Online analytical processing (OLAP) the manipulation of information to create business
intelligence in support of strategic decision making
Decision support systems
Decision support system (DSS) models information to support managers and business
professionals during the decision-making process
1. Three quantitative models used by DSSs include are Sensitivity analysis the study
of the impact that changes in one (or more) parts of the model have on other parts of
the model.
2. What-if analysis checks the impact of a change in an assumption on the proposed
solution
3. Goal-seeking analysis finds the inputs necessary to achieve a goal such as a desired
level of outputs
What-if analysis- checks the impact of a change in a variable or assumption on the model . A
use would be able to observe and evaluate any changes that occurred to the values in the
model , especially to a variable such as profits.
Goal-seeking analysis- finds the inputs necessary to achieve a goal such as a desired level of
output.
Executive information system
Executive information system (EIS) A specialized DSS that supports senior level
executives within the organization
Most EISs offering the following capabilities.
1. Consolidation are involves the aggregation of information and features simple roll-ups
to complex groupings of interrelated information.
2. Drill-down are enables users to get details, and details of information.
3. Slice-and-dice are looks at information from different perspectives

Digital dashboard are integrates information from multiple components and presents it in a
united display
Artificial intelligence (AI)
The ultimate goal of AI is the ability to build a system that can mimic human intelligence
Intelligent system various commercial applications of artificial intelligence
Artificial intelligence (AI) simulates human intelligence such as the ability to reason and
learn. Four most common categories of AI include;
1. Expert system computerized advisory programs that imitate the reasoning processes
of experts in solving difficult problems
2. Neural network attempts to emulate the way the human brain works
Fuzzy logic a mathematical method of handling imprecise or subjective information
3. Genetic algorithm an artificial intelligent system that mimics the evolutionary,
survival-of-the- fittest process to generate increasingly better solutions to a problem
4. Intelligent agent special-purposed knowledge-based information system that
accomplishes specific tasks on behalf of its users
Data-mining software includes many forms of AI such as neutral networks and expert
systems

Chapter 10 Extending the Organization Supply Chain Management
BASICS OF SUPPLY CHAIN
SCM the management of information flows between and among stages in a supply chain to
maximize total supply chain effectiveness and profitability
The supply chain has three main links.
1. Materials flows from suppliers and their upstream suppliers at all levels
2. Transformation of materials into semi-finished products, or the organizations own
production processes
3. Distribution of products to customers and their downstream customers at all levels
There are 5 basics supply chain management chains .
1. Plan- prepare to manage all resources required to meet demand
2. Source build relationshio with suppliers to procure raw materials
3. Make manufacture products and create production schedule
4. Deliver plan for transportation goods to customers
5. Deliver supports customer and product returns
INFORMATION TECHNOLOGYS ROLE IN THE SUPPLY CHAIN
Information technologys primary role in SCM is creating the integrations or tight process
and information linkages between functions within a firm such as marketing, sales, finance,
manufacturing, and distribution and between firms, which allow the smooth, synchronized
flow of both information and product between customers, suppliers and transportation
providers across the supply chain
The Integrated Supply Chain

There have 4 factors driving supply chain management :
1. Visibility.
Supply Chain Visibility is the ability to view all areas up and down the supply
chain. Changing supply chains requires a comprehensive strategy buoyed by
information technology. Organizations can use technology tools that help them
integrate upstream and downstream, with both customers and suppliers.
The bullwhip effect occurs when distorted product demand information passes
from one entity to the next throughout the supply chain.
2. CUSTOMER BEHAVIOR-
The behaviour of customers has changed the way businesses complete.
Customers will leave if a company does not continually meet their
expectations. They are more demanding because they have information readily
available, they know exactly what they want, and they know when and how
they want it.
Demand planning software generates demand forecasts using statistical tools
and forecasting techniques. Companies can respond faster and more
effectively to consumer demands through supply chain enhancements such as
demand planning software.
Once an organization understands customer demand and its effect on the
supply chain it can begin to estimate the impact that its supply chain will have
on its customers and ultimately the organizations performance.
3. COMPETITION
Supply chain planning (SCP) software uses advanced mathematical
algorithms to improve the flow and efficiency of the supply chain while
reducing inventory. SCP depends entirely on information for its accuracy.
Supply chain execution (SCE) software automates the different steps and
stages of the supply chain. This could be as simple as electronically routing
orders from a manufacturer to a supplier.
4. SPEED
These systems raise the accuracy, frequency and speed of communication
between suppliers and customers, as well as between internal users.
Another aspect of speed is the companys ability to satisfy continually
changing customer requirements efficiently, accurately and quickly.
Factors fostering supply chain speed
(a) Pleasing customer has become something of a corporate obsessio .
(b) Information is crucial to managers abilities to reduce inventory and
human resource requirement to a competitive level.
(c) Information flows are essential to strategic planning for food
deployment of resources.


Supply chain management success factors ( 7 principles)
1) Segment customers by service needs, regardless of industry and then tailor services to
those particular segments
2) Customize the logistics network and focus intensively on the service requirement and on
the profitability of the preidentified customer segment
3) Listen to signal of market demand and plan accordingly. Planning must span the entire
chain to detect signal of changing demand
4) Differentiate products closer to the customer, since companies can no longer afford to
hold inventory to compensate for poor demand forecasting.
5) Strategically manages sources information technology strategy that supports different
levels of decision making and provides a clear view invisibility of the flow of products
services and information
6) Adopt performance evaluation measures that apply to every link in the supply chain and
measure true profitability at every stage
MAKE THE SALE TO SUPPLIERS
The hardest part of any SCM system is its complexity because a large part of the system
extends beyond the companys walls. Not only will the people in the organization need to
change the way they work, but also the people from each supplier that is added to the network
must change. Be sure suppliers are on board with the benefits that the SCM system will
provide.
WEAN EMPLOYEES OFF TRADITIONAL BUSINESS PRACTICES
Operations people typically deal with phone calls, faxes and orders scrawled on paper and
will most likely want to keep it that way. Unfortunately, an organization cannot disconnect
the telephones and fax machines just because it is implementing a supply chain management
system. If the organization cannot convince people that using the software will be worth their
time, they will easily find ways to work around it, which will quickly decrease the changes of
success for the SCM system.
ENSURE THE SCM SYSTEM SUPPORTS THE ORGANIZATION GOALS
It is important to select SCM software that gives organizations an advantage in the areas most
crucial to their business success. If the organizational goals support highly efficient strategies,
be sure the supply chain design has the same goals.
DEPLOY IN INCREMENTAL PHASE AND MEASURE AND COMMUNICATE SUCCESS
Design the development of the SCM system in incremental phases. For instance, instead of
installing a complete supply chain management system across the company and all suppliers
at once, start by getting it working with a few key suppliers, and then move on to the other
suppliers..
BE FUTURE ORIENTED
The supply chain design must anticipate the future state of the business. Because the SCM
system likely will last for many more years than originally planned, managers need to explore
how flexible the systems will be when (not if) changes are required in the future. The key is
to be certain that the software will meet future needs, not only current needs.

Chapter 11 Building a Customer-Centric Organization Customer
Relationship Management
CRM enables an organization to:
Provide better customer service
Make call centres more efficient
Cross sell products more effectively
Helps sales staff close deals faster
Simplify marketing and sales processes
Discover new customers
Increase customer revenues
RECENCY, FREQUENCY AND MONETARY VALUE
An organization can find its most valuable customers by using a formula that industry
insiders call FRM:
How recently a customer purchased items (recency)
How frequently a customer purchased items (frequency)
How much a customer speeds on each purchased (monetary value)
THE EVALUATION OF CRM
CRM reporting technologies help organizations identify their customers across other
applications. CRM analysis technologies help organizations segment their customers into
categories such as best and worst customers. CRM predicting technologies help organizations
predict customer behaviour, such as which customers are at risk of leaving.


USING ANALYTICAL CRM TO ENHANCE DECISION
Operational CRM supports traditional transactional processing for day-to-day front-
office operations or systems that deal directly with the customers
Analytical CRM supports back-office operations and strategic analysis and includes
all system that do not deal directly with the customers
CUSTOMER RELATIONSHIP MANAGEMENT SUCCESS FACTORS
Clearly communicate the CRM strategy
Define information needs and flows
Build an integrated view of the customer
Implement in iterations
Scalability for organizational growth

Chapter 12 - Integrating The Organization From The End To End -
Enterprise Resource Planning
Enterprise Resource Planning (ERP)
It serves as the organizations backbone in providing fundamental decision making support.
It enables people in different business areas to communicate.
ERP system helps an organization to obtain operational efficiencies, lower costs, improve
supplier and customer relations, and increase revenues and market share.
The heart of an ERP system is a central database that collects information from and feeds
information into all the ERP systems individual application components (called modules),
supporting diverse business function such as accounting, manufacturing, marketing, and
human resources.
ERP automates business processes such as order fulfillment- taking an order from a
customer, shipping the purchase, and then billing for it.
Bringing the Organization Together
ERP enables employees across the organization to share information across a single,
centralized database.
With extended portal capabilities, an organization can also involve its suppliers and
customers to participate in the workflow process, allowing ERP to penetrate the entire value
chain, and help the organization achieve greater operational efficiency.
The Evolution of ERP
Although ERP solutions were developed to deliver automation across multiple units of an
organization, to help facilitate the manufacturing process and address issues such as raw
materials, inventory, order entry, and distribution, ERP was unable to extend to other
functional areas of the company such as sales, marketing, and shipping. It could not tie to any
CRM capabilities that would allow organizations to capture customer-specific information,
nor did it work with websites or portals used for customer service or order fulfilment
Integrating SCM, CRM, and ERP
Integration allows the unlocking of information to make it available to any user, anywhere,
anytime. 2 main competitors in ERP market: 1. Oracle 2. Sap
Primary Users and Business Benefits of Strategic Initiatives.
Integration Tools- An integrated enterprise infuses support areas, such as finance and human
resources, with a strong customer orientation.
Integration are achieved using:
* Middleware- several different types of software that sit in the middle of and provide
connectivity between two or more software applications. It translates information between
disparate systems.
* Enterprise application integration (EAI) middleware- represents a new approach to
middleware by packaging together commonly used functionality, such as providing prebuilt
links to popular enterprise applications, which reduces the time necessary to develop
solutions that integrate applications from multiple vendors.
Integration between SCM, CRM, and ERP Applications.
Companies run on independent applications, such as SCM, CRM, and ERP. If one
application performs poorly, the entire customer value delivery system is affected.
Enterprise Resource Plannings Explosive Growth:
Reasons of ERP being proven to be such a powerful force:
ERP is a logical solution to the mess of incompatible applications that had sprung up
in most businesses.
ERP addresses the need for global information sharing and reporting.
ERP is used to avoid the pain and expense of fixing legacy systems
To qualify as a true ERP solution, the system not only must integrate various
organization processes, but also must be:
Flexible- an ERP system should be flexible in order to respond to the changing needs of an
enterprise.
Modular and open- an ERP system has to have open system architecture, meaning that any
module can be interfaced with or detached whenever required without affecting the other
modules. The system should support multiple hardware platforms for organizations that have
a heterogeneous collection of systems. It must also support third- party add-on components.
Comprehensive- an ERP system should be able to support a variety of organizational
functions and must be suitable for a wide range of business organizations.
Beyond the company- an ERP system must not be confined to organizational boundaries but
rather support online connectivity to business partners or customers.