MIS MODULE – 3 QUESTION

BANK ANSWERS
BY DR@SHTII
Question – 1 What are functional systems? Explain in detail a
functional system and the processes that it supports with
suitable example.
• Points:

1. Finance

2. Accounting

3. Human Resource
Management
4. Marketing

5. Production/ Operation
Example
• The main purpose of the functional areas is to ensure that all important business
activities are carried out efficiently
• This is essential if business is to achieve its aim and objective

• For example

• Sales and marketing will be involved in achieving targets linked to developing new
markets or increasing sales
• Human resource is involved in arranging staff training activities and supporting
continuous personal development of all staff
• Finance will be expected to monitor and support aims and objectives linked to keep
costs low to improve profitability
• Production will be set targets related to quality or meeting planned production schedule
Explanation
Finance & Accounting System Human Resource System
Marketing Production/ Operation System
Question – 2 What are Supply chain Management (SCM)
systems? How do they help in coordinating planning,
production and logistics with suppliers?
• Network of organizations and • It links Suppliers, manufacturing plants,
processes for: distribution centres, retail outlets, and
customers to supply goods and services from
❑Procuring materials source through consumption.
• Materials, Information and payments flow
❑Transforming materials into through the supply chain in both the
products directions.
❑Distributing the products • Goods start out as raw material, transferred to
intermediate products, and finally to finished
❑Upstream supply chain product.

❑Downstream supply chain • Finished products are sent to distribution

centres, from their to retailers and customers.
❑Internal supply chain • Returned items flow in the reverse direction
from the buyer back to the seller.
What is SCM?
• SCM refers to the coordination of activities and involved in making and moving a product.

• The supply chain is the network of businesses and business processes involved the creation and
selling of a product, from suppliers that procure raw materials through retail outlets and
customers.

• The upstream portion of the supply chain includes the organization's suppliers and the processes
for managing relationships with them.

• The downstream portion consists of the organizations and processes for distributing and
delivering products to the final customers.

• The manufacturer also has internal supply chain processes for transforming the materials and
services furnished by suppliers into finished goods and for managing materials and inventory.
How do they help in coordinating planning, production and
logistics with suppliers?
• Supply chain management systems automate the flow of information among
members of the supply chain so that they can use it to make better decisions
about when and how much to purchase, produce, or ship.
• More accurate information from supply chain management systems reduces
uncertainty and the impact of the bullwhip effect.
• Supply chain management software includes software for supply chain planning
and for supply chain execution.
• Internet technology facilitates the management of global supply chains by
providing the connectivity for organizations in different countries to share
supply chain information.
• Improved communication among supply chain members also facilitates efficient
customer response and movement toward a demand-driven model.
Points:
In SCM, the supply chain manager coordinates the logistics
of all aspects of the supply chain which consists of five parts:

1. The plan or strategy

2. The source (of raw materials or services)

3. Manufacturing (focused on productivity and efficiency)

4. Delivery and logistics

5. The return system (for defective or unwanted products)

Question – 3 What are CRM applications? Why are they
gaining popularity in current day businesses? Explain in
detail how they add value to a firm business.
• Knowing the customer • C R M systems

• In large businesses, too many customers
and too many ways customers interact
with firm
• For large business houses sales, service
and marketing do not share much
essential customer information among
themselves.
• Information for one specific customer is
stored in a different perspective with
different departments.
• Capture and integrate customer data from all
over the organization
• Consolidate and analyze customer data
• Distribute customer information to various
systems and customer touch points across
enterprise
• Provide single enterprise view of customers
• It examines customers from a multifaceted
perspective.

• There is no way to consolidate these • A touch point is a method of interaction with

the customer such as phone, e mail, customer
information to provide a unified view of service desk, mail, facebook , twitter, retail
a customer across the company. store etc.
What are CRM applications? Why are they
gaining popularity in current day businesses?
 Business value of C R M systems

Increased
More effective Increased
customer
marketing sales revenue
satisfaction

Reduced Lower costs

direct- for customer Low churn
marketing acquisition/re rate
costs tention

• Churn rate
• Number of customers who stop using or purchasing products or services from a company
• Indicator of growth or decline of firm’s customer base
Question – 4 Explain various functional
business systems with the help of examples.
• For example

• Sales and marketing will be involved in

Finance achieving targets linked to developing new
markets or increasing sales
Accounting
• Human resource is involved in arranging staff
training activities and supporting continuous
Human Resource personal development of all staff
Management
• Finance will be expected to monitor and
Marketing support aims and objectives linked to keep
costs low to improve profitability

Production/ Operation • Production will be set targets related to

quality or meeting planned production
schedule
Question – 5 Explain CRM system of any Bank / Educational
Institute / Retail Business / Hotel (Choose any one)
A) CRM IN BANK
• Just as in other industries like retail or business, in banking, CRM stands for Customer
Relationship Management.
• A Customer Relationship Management solution in banking helps
• banks manage customers and
• better understand their needs in order to provide the right solutions, quickly.

• CRM assists
• in the acquisition of new customers through the use of past track records and value they
brought to the bank.
• CRM makes the efforts of marketing department more productive.
• A bank’s CRM solution can help keep track of customer behaviors and predict needs, and
then automatically send out suggestions for how the bank can fulfill those needs with a
tailored product offering.
CRM IN BANK INCLUDE…
What are the benefits of CRM in banking?
Customer
centric Boosted Sales
approach
Helping Manage Increased Lead Conversion
desk customers
Personalized Customer Journeys
Make your
Clearing
customer Increased Productivity
doubts
happy

Complaints More Efficient Communication

Welcome handling &
suggestions problem Inter-Department Data Tracking
solving

Better Service
B) CRM IN EDUCATIONAL INSTITUTE
C) CRM IN RETAIL BUSINESS
 D) CRM IN HOTEL
• CRM or customer relationship management system is a software solution
which helps to manage Leads, Sales, Marketing and also sales Team. Hotel
CRM is a kind of specialised CRM customised for the Hotel Industry. CRM
helps Hotel management to match the expectations of the Clients.
Question – 6 Describe the information system
supporting the major business functions. (any 2)
 Question – 7 How do supply chain management
systems provide value for a business? Illustrate with
the help of an example.
• By implementing a networked and integrated supply chain management system, companies can match
supply to demand, reduce inventory levels, improve delivery service, speed product time to market, and
use assets more effectively. ... Having the right product at the right place at the right time will increase sales.
Supply chain example - Nike
Question – 8 How do customer relationship
management system help achieve customer
intimacy? Illustrate with example.
• Customer relationship management (CRM) systems integrate and automate
customer-facing processes in sales, marketing, and customer service, providing
an enterprise-wide view of customers.
• Companies can use this knowledge when they interact with customers to provide
them with better service or to sell new products and services.
• These systems also identify profitable or unprofitable customers or
opportunities to reduce the churn rate.
• The major customer relationship management software packages provide
capabilities for both operational CRM and analytical CRM.
• often include modules for managing relationships with selling partners (partner
relationship management) and for employee relationship management.
• Customer intimacy is a relationship between a
company and its customer, where the company
collects information to better understand and serve
the customer. Many online companies want to
establish this relationship, and if successfully formed,
it is expected that customer loyalty will increase,
resulting in increased revenue for the company.
However, the desire of the company to collect
intimate information is resisted by customers that
have little trust, concern for privacy, no justification
for provision of personal information, and
substitutes. Companies must entice customers to
provide increasingly intimate information, but are
met with increasing reluctance by the customer. This
suggests that there is a Continuum of Customer
Intimacy. Additionally, the willingness of the customer
to provide increasingly intimate information is
affected by a number of factors. Finally, there is
discussion of how customer relationship
management (CRM) tools may be used to affect the
willingness of the customer to share information.
Illustration/ Example of Customer Intimacy
• Customer intimacy: Products or
services which are constantly
adapted to specific customer
situations and niches.
• Example companies include
• Nordstrom,
• Home Depot and
• IKEA.
Thank you
all the best…!
By Dr@shti