MSCI 2130 Study Guide - Final Guide: Electronic Data Interchange, Upselling, Bullwhip
7 May 2018
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Chapter 5: Information Systems Within the Organization
Definitions:
• Analytical CRM System: CRM system that analyzes customer behavior
and perceptions in order to provide actionable business intelligence
• Bullwhip Effect: erratic shifts in orders up and down the supply chain
• Bundling: a form of cross-selling where an enterprise sells a group of
products or services together at a lower price than the combined
individual price of the products
• Campaign Management Application: CRM applications that help
organizations plan marketing campaigns that send the right messages
to the right people through the right channels
• Collaborative CRM System: a CRM system where communications
between the organization and its customers are integrated across all
aspects of marketing, sales, and customer support processes
• Cross Departmental Process: a business process that originates in one
department and ends in another department, and/or originates and
ends in the same department while involving other departments
• Cross Selling: the practice of marketing additional related products to
customers based on a previous purchase
• Customer Facing CRM Applications: area where customers directly
interact with the organization, including customer service and support,
sales force automation, marketing, and campaign management
• Customer Interaction Center (CIC): a CRM operation where
organizational representatives use multiple communication channels
to interact with customers in functions such as inbound teleservice
and outbound telesales
• Customer Relationship Management (CRM): a customer focused and
customer driven organizational strategy that concentrates on
addessig ustoes’ euieets fo poduts ad seies, ad
then providing high-quality, responsive services
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2
• Customer Touching CRM Applications: applications and technologies
with which customers interact and typically help themselves
• Customer Touch Point: any interaction between a customer and an
organization
• Distribution Portals: corporate portals that automate the business
processes involved in selling or distributing products from a single
supplier to multiple buyers
• Electronic Data Interchange: a communication standard that enables
the electronic transfer of routine documents between business
partners
• Enterprise Application Integration System: a system that integrates
existing systems by providing layers of software that connect
applications together
• Enterprise Resource Planning Systems: information systems that take
a business process view of the overall organization to integrate the
plaig, aageet, ad use of all of a ogaizatio’s esoue,
employing a common software platform and database
• ERP II Systems: inter-organizational ERP systems that provide Web
enabled links among key business systems of a company and its
customers, suppliers, distributors, and others
• Extranets: Networks that link business partners over the Internet by
providing them access to cetai aeas of eah othe’s opoate
intranets
• Front Office Process: those processes that directly interact with
customers; that is, sales, marketing, and service
• Inter Organizational Information System: an information system that
supports information flow among two or more organizations
• Just in Time Inventory System: a system in which a supplier delivers
the precise number of parts to be assembled into a finished product at
precisely the right time
• Loyalty Program: programs that offer rewards to customers to
influence future behavior
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3
• Operational CRM System: the component of CRM that supports the
front office business processes that directly interact with customers
• Order Fulfillment Process: a cross functional business process that
originates when a company receives a customer order, and it
concludes when it receives a payment from the customer
• Procurement Portals: corporate portals that automate the business
processes involved in purchasing or procuring products between a
single buyer and multiple suppliers
• Procurement Process: a cross functional business process in which a
company produces physical goods
• Pull Model: a business model in which the production process begins
with a customer order and companies make only what customers
want, a process closely aligned with mass customization
• Push Model: a business model in which the production process begins
with a forecast, which predicts the products that customers will want
as well as the quantity of each product. The company then produces
the amount of products in the forecast, typically by using mass
podutio, ad sells, o pushes, those poduts to osues
• Sales Force Automation: the component of an operational CRM
system that automatically records all the aspects in a sales transaction
process
• Supply Chain: the coordinated movement of resources from
organizations through conversion to the end consumer
• Supply Chain Management: an activity in which the leadership of an
organization provides extensive oversight for the partnerships and
processes that compose the supply chain and leverages these
relationships to provide an operational advantage
• Supply Chain Visibility: the ability of all organizations in a supply chain
to access or view relevant data on purchased materials as these
ateials oe though thei supplies’ podutio poesses
• Upselling: a sales strategy where the organizational representative
provides to customers the opportunity to purchase the higher value
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