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Unformatted text preview: PA R T I I I Organizational Applications 7. Transaction Processing, Functional Applications, CRM, and Integration 8. Supply Chain Management and Enterprise Resource Planning 9. IT Planning and Business Process Redesign 295 C H A P T E R 7 Transaction Processing, Functional Applications, CRM, and Integration Dartmouth-Hitchcock Medical Center 7.1 Functional Information Systems 7.2 Transaction Processing Information Systems 7.3 Managing Production/Operations and Logistics 7.4 Managing Marketing and Sales Systems 7.5 Managing the Accounting and Finance Systems 7.6 Managing Human Resources Systems 7.7 Customer Relationship Management (CRM) 7.8 Integrating Functional Information Systems Minicases: (1) Dollar General / (2) QVC LEARNING OBJECTIVES After studying this chapter, you will be able to: Relate functional areas and business processes to the value chain model. Identify functional management information systems. Describe the transaction processing system and demonstrate how it is supported by IT. Describe the support provided by IT and the Web to production/operations management, including logistics. Describe the support provided by IT and the Web to marketing and sales. Describe the support provided by IT and the Web to accounting and finance. Describe the support provided by IT and the Web to human resources management. Describe the role of IT in facilitating CRM. Describe the benefits and issues of integrating functional information systems. 296 WIRELESS INVENTORY MANAGEMENT SYSTEM AT DARTMOUTH-HITCHCOCK MEDICAL CENTER THE PROBLEM Dartmouth-Hitchcock Medical Center (DHMC) is a large medical complex in New Hampshire with hospitals, a medical school, and over 600 practicing physicians in its many clinics. DHMC is growing rapidly and is encountering a major problem in the distribution of medical supplies. These supplies used to be ordered by nurses. But nurses are usually in short supply, so having them spending valuable time ordering suppliesleft them less time for their core competencynursing. Furthermore, having nurses handling supply orders led to inventory management problems: Busy nurses tended to over-order in an effort to spend less time managing inventory. On the other hand, they fre- quently waited until the last minute to order supplies, which led to costly rush orders. One solution would have been to transfer the task of inventory ordering and management to other staff, but doing so would have required hiring additional personnel and the DHMC was short on budget. Also, the coordination with the nurses to find what is needed and when, as well as maintaining the stock, would have been cumbersome. What the medical center needed was a solution that would reduce the burden on the nurses, but also reduce the inventory levels and the last- minute, expensive ordering. Given the size of the medical center, and the fact that there are over 27,000 different inventory items, this was not a simple task....
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- Spring '09