ICT in Organisations

ICT used in Sales Customer Databases Computerised order systems Analysis of sales patterns and trends

Customer Databases Important to keep up-to-date records of their customers. –What they have purchased –How much they have spent –When they last made a purchase It helps maintain a high level of customer service. –No need to rely on customers remembering details –Can ask customer secure questions to make sure they are the right person

Customer Databases Many organisations will give their customer a unique code. –Play.com uses a persons address –A ISP may use a reference number –An insurance company may use a unique number –HSBC bank uses an IB number Most e-commerce websites will use a combination of an address and password to gain access to a customer’s details.

Quick Question? Why would a business not use a person’s SURNAME as the key field in a customer database? Because there could be lots of people with the same last name.

Computerised order systems Large organisations use computer systems to enter and process customer orders. Relational databases consisting of: –Customer data file –Product data file Key field either the customer number or the product code. Once ordered, the details are sent to the production department’s computer system. Many companies now allow customers to enter orders directly onto their computer system. –Done over the Internet using a secure server.

Task 1 Visit the following websites: – – How do they differ in the way that they enable customers to place orders?

Analysis of sales patterns and trends Marketing department relies on accurate sales information Loyalty cards allow organisations to track purchases and match them to their customers Customer databases can be interrogated to produce reports –Weekly –Monthly –Yearly Results can be shown as tables or graphs

Task 2 Looking at the task on page 99 What could you feedback to the sales manager in your report?

Purchasing Department Ensures that the organisation has the supplies needed to maintain operational. No organisation makes everything it needs itself. –Computer manufacturers will buy in components such as micro processors from specialist suppliers Most computers you buy won’t consist of parts made by the company who’s name is on the machine.

Customer requirements Customers always want: –High quality products at the lowest price possible –For products to be delivered as quickly as possible after placing the order. As such, the purchasing department must obtain high quality raw materials and pay as little as possible for them.

Task 3 Read the case study on page 100.

Stock Control This is an important aspect for the purchasing department. They must always know how much stock there is for any particular product. When stock levels drop below a minimum level then they must decide how much more of that product to order.

Case Study - Restaurant If a restaurant is running low on stock then they must order in some more food products. If they don’t then they will quickly run out and will not be able to serve customers. This means that they will not be able to make any money and will go into debt.

Case Study - Restaurant Having too much stock can also be expensive. If the restaurant buys in more food than it can cook then food can spoil. This will result in a lot of wastage and lost profits. Just-in-time stock control can monitor stock levels and order in the exact quantities that an organisation may need.

Task 4 Read the case study on page 101. Answer task 1 on paper.

Task 5 How could ICT be used to manage the process of purchasing from suppliers in The Piggott School? –i.e. In what areas of the school could stock control systems be used and what would it have to manage? How could ICT be used to improve stock control at this school?

Computerised stock control Delivery tracking Some companies can allow the customer to track their order. It is important to know where a product is so you can judge when it may be delivered. This goes for both the customer and the organisation.

Automatic Stock Reordering Most stock control systems will enable organisations to keep an accurate record of their stock. In a shop, when a loaf of bread is scanned in through the till, the details are processed and sent to the shop’s database. The database is then updated by reducing the quantity of bread by one.

Automatic Stock Reordering Some stock control systems will output a report of low stock levels. –This is useful if manually inputting a stock request. More sophisticated systems will put in a request for more stock directly to the supplier. –Electronic Data Interchange (EDI)

E-Procurement Short for electronic procurement Used for buying and selling products over the Internet Used for business to business transactions (B2B) Useful for buying standard commodity items such as: –Printer paper –Light bulbs Linked to automatic stock reordering systems.

Task 6 Read the case study on page 103. Answer tasks 1 and 2.