Module 7
Information, Technology and the System in Credit and Collection
The system concept becomes even more useful by including two additional components: feedback and
control. A system with Feedback and Control components is sometimes called a cybernetic system, that
is self monitoring, self-regulating system
Feedback is data about the performance of a system. Example. Data about collection
performance is feedback to a credit and collection manager.
Control – involves monitoring and evaluating feedback to determine whether a system is
moving toward the achievement of its goal. Example, a credit and collection manager exercises
control when reassigning salesperson to new territories after evaluating feedback about their
collection performance.
Example of a self monitoring, self regulating system, computer may monitor and control
manufacturing processes, credit and collection procedures help control financial system, data entry
display provide control of data entry activities, and sales quotas and sales bonuses attempt to control
sales performance.
People Resource
People are required for the operation of all information systems. These people resources include end
users and IS specialist.
End users – also called users and client. Most end users in business are knowledge workers,
people who spend most of their time communicating and collaborating in teams and workgroup
and creating using and distributing information.
IS Specialist - are people who develop and operate information system.
The Major role of IS
Support Business Processes – information system that support the business processes and
operations at the credit and collection department . Ex. computer based information systems to
help them record the number of active customers or delinquent customers.
Support Decision Making – IS help store manager and other business professionals make better
decision and attempt to gain a competitive advantage. Ex. Credit Manager might decide
whether a good customer be given a discount or be given an additional credit limit.
Support Competitive Advantage – gaining a strategic advantage over competitors requires
innovative use of information technology. Ex. Credit Manager might decide whether to make a
program exclusive for customer and supplier to gain fast and good communication.
The IS Function
a business that is an important to business success as the functions of accounting, finance, credit
and collection department.
An important contributor to operational efficiency, employee productivity and morale, and
customer service and satisfaction.
A vital ingredient in developing competitive services.
Example of ethical challenge that must be faced by business managers who implements major
applications for IT.
Application of
IT Possible
* customer Responses
relationship Potential Harms Potential risk can the risk and
management *How likely are customers, How likely are legal cost be
*Credit and
collection
management employees, business partners, actions, consumer mitigated by:
or competitors to be affected by: boycott, work * self-regulation
* infringement on privacy stoppages, *advocacy
* Business * inaccurate information Government * education
Intelligence *collusion intervention, and * code of ethics
System *exclusion from essential other threat to * incentives
*Electronic business resources Occur * certification
Commerce
Systems
Electronic Communication, conferencing and collaborative work software tools
Enterprise
Collaboration
System
Electronic Electronic Collaboration
Communication Conferencing work management
Tools Tools Tools
* e-mail * Videoconferencing * Workflow System
*faxing *data conferencing * document sharing
*internet phone, paging *chat system *knowledge management
Enterprise collaboration systems (ECS) are cross functional e-business system that enhance
communication, coordination and collaboration among the members of business teams and
workgroups. Information Technology especially Internet technologies provides tools to help us
collaborate-to communicate ideas, share resources, and coordinate our cooperative work efforts as
members of the many formal and informal process and project teams and workgroup that make up
many of today’s organization. The goal of enterprise collaboration system is to enable us to work
together more easily and effectively by helping us to:
Communication - sharing information with each other.
Coordinate - coordinating our individual work efforts and user of resources with each other
Collaborate – working together cooperatively on joint projects and assignment
Electronic Communication Tools help you to communicate and collaborate with others by electronically
sending message, documents internet and computer networks.
E-mail –widely used to sent and receive text message between team members using PC’s
Faxing – transmitting and receiving images of documents over telephone or computer networks
using PC’s
Electronic Conferencing tools help networked computer users share information and collaborate while
working together on joint assignment, no matter where they are located.
Data conferencing – users at networked PC’s ca view, revise and save change to a shared
documents.
Video Conferencing – realtime video and audioconferencing among uses at networked.
Chat system – enable two or more users at networked PC’s to carry on online, realtime text
conversation.
Collaborative work management tools help people accomplish or manage joint work activities.
Workflow systems – helping networked knowledge workers collaborate to accomplish and
manage the flow of structured work tasks and electronic document processing within a
business.
Knowledge management - organizing and sharing the diverse forms of credit and collection
information created within an organization.
