MODULE-II

STRATEGIC & OPERATIONAL SUPPORT SYSTEM

Key Differences Between Strategic Support Systems and Operational Support Systems:

Aspect Strategic Support Systems (SSS) Operational Support Systems (OSS)

To assist in long-term, high-level decision-
To support day-to-day operations
making and planning. Focus on strategy and short-term decision-making,
Purpose
formulation, organizational goals, and ensuring the efficiency of routine
competitive positioning. business processes.
Lower and middle management,
Top-level management (e.g., executives, operational staff, and functional
Users
CEOs, strategic planners). departments (e.g., managers,
supervisors).
Aids in tactical and operational
Aids in strategic decisions such as long-
Decision- decisions like scheduling, inventory
term planning, entering new markets,
Making control, and routine production
product development, and mergers.
management.
Focus on short-term and operational
Focus on long-term decision-making
Time Horizon decision-making (daily, weekly, or
(years or decades).
monthly).
Uses aggregated, historical, and Uses real-time, operational data for
Data Used predictive data to forecast future trends efficient daily operations and
and market conditions. immediate problem-solving.
Reports are often high-level, summarized, Reports are detailed, specific, and
Nature of and strategic, often related to company operational, such as daily sales
Reports performance, market analysis, and figures, inventory levels, or
projections. employee performance.
Transaction Processing Systems
Executive Information Systems (EIS),
Example (TPS), Inventory Management
Decision Support Systems (DSS), Business
Systems Systems, Payroll Systems, Customer
Intelligence (BI) Systems.
Order Systems.
Narrower, focusing on specific
Broad and focuses on the entire
Scope departments or functions like sales,
organization or long-term strategic goals.
HR, and production.
Impacts the overall direction of the Impacts the daily functioning of the
Impact organization, including market positioning organization, ensuring tasks are
and growth strategies. carried out efficiently and on time.
Examples of Corporate expansion, new product Inventory management, order
Decisions launches, market diversification, mergers processing, employee scheduling,
Supported & acquisitions. production tracking.

STRATEGIC ENTERPRISE SYSTEM

ERP stands for Enterprise Resource Planning. It refers to a type of software that organizations
use to manage and integrate important parts of their business operations. ERP systems
streamline processes by automating tasks like finance, human resources, supply chain
management, inventory, and customer relationship management (CRM).

Key features of ERP systems include:

1. Integration: Combines different business functions into one unified system, reducing
silos and promoting collaboration across departments.
2. Automation: Automates manual tasks, reducing errors and increasing efficiency. For
example, invoicing, payroll, and inventory management are often automated.
3. Real-Time Data: Provides real-time visibility into key business processes, helping
managers make informed decisions.
4. Customization: Many ERP systems allow customization to fit the unique needs of a
business.

Popular ERP software solutions include SAP, Oracle ERP, Microsoft Dynamics, and NetSuite.
Would you like more information on a specific ERP system or how they are implemented?

An example of an ERP system in action is SAP S/4HANA, one of the most widely used ERP
solutions.

Example of How SAP S/4HANA Works:

Imagine a global manufacturing company, "ABC Corp," that produces electronic goods. The
company uses SAP S/4HANA as its ERP system to manage various aspects of its operations.

1. Finance:
o The Finance Department uses SAP to manage the company’s general ledger,
accounts payable, and receivable.
o It automatically generates financial reports (balance sheets, profit and loss
statements) in real-time.
o Cash flow forecasts and budgeting are also managed within the system, ensuring
that financial decisions are based on up-to-date data.
2. Supply Chain Management:
o The Supply Chain team uses SAP to track inventory levels across multiple
warehouses globally.
o The system automatically reorders stock when inventory reaches predefined
levels, avoiding stockouts.
o It manages suppliers, tracks shipments, and integrates with customs for
international shipping.

3. Production:
o The Manufacturing Team uses SAP to schedule production runs based on demand.
 o SAP provides visibility into machine uptime and production delays, helping
optimize production schedules and minimize downtime.
o It tracks the movement of raw materials into production and the progress of
manufacturing on the shop floor.
4. Human Resources:
o The HR Department uses SAP to manage employee data, payroll, benefits,
recruitment, and performance reviews.
o The system automatically calculates salaries, deductions, and bonuses based on
real-time data.
o SAP can also generate reports related to employee productivity and workforce
needs.
5. Sales and Customer Relationship Management (CRM):
o The Sales Department uses SAP to track customer orders, monitor sales targets,
and manage customer data.
o It offers real-time insights into customer buying patterns, enabling personalized
marketing campaigns.
o The system helps ensure that customer orders are processed smoothly and
shipments are delivered on time.

SCM (Supply Chain Management)

SCM (Supply Chain Management) in the context of MIS (Management Information Systems)
refers to the use of technology and systems to manage and optimize the flow of goods,
services, information, and finances across the entire supply chain. MIS involves collecting,
processing, and analyzing data to aid decision-making, and SCM in MIS focuses on managing
the information flow that helps improve supply chain operations.

Role of SCM in MIS:

1. Data Integration:
o MIS helps integrate data from various parts of the supply chain, such as suppliers,
manufacturers, warehouses, distributors, and retailers.
o This integration enables a holistic view of the supply chain, allowing organizations
to make informed decisions based on real-time data.
2. Decision Support:
o SCM in MIS provides key data and analytics for decision-makers, helping them
forecast demand, manage inventory, and optimize logistics.
o Data on lead times, demand trends, production schedules, and stock levels allow
management to make better decisions regarding procurement, production, and
distribution.
3. Inventory Management:
o SCM systems within MIS help track inventory levels in real-time across multiple
locations.
o Automated systems can alert managers when stock levels are low or when
inventory needs to be replenished, preventing stockouts or overstocking.
o This leads to more efficient stock management and reduced costs associated with
inventory holding.
 4. Procurement and Supplier Management:
o SCM systems within MIS help manage supplier relationships by tracking orders,
delivery schedules, and supplier performance.
o By having access to this data, managers can negotiate better terms, monitor
supplier performance, and identify potential supply chain disruptions early.
5. Logistics Optimization:
o SCM in MIS can provide data about delivery times, transportation costs, and
shipment status.
o By analyzing this information, organizations can optimize their logistics, reducing
transportation costs and improving delivery reliability.
6. Risk Management:
o SCM systems help in identifying potential risks in the supply chain, such as supplier
disruptions, delays in shipping, or demand fluctuations.
o MIS provides data and analytics that allow businesses to mitigate these risks by
diversifying suppliers, adjusting inventory strategies, or planning for disruptions.
7. Collaboration and Communication:
o SCM systems in MIS enable better communication and collaboration between
different parts of the supply chain. For example, manufacturers can share
production schedules with suppliers and distributors.
o This ensures that all parties are aligned, reducing delays and improving overall
supply chain efficiency.

Example of SCM in MIS:

Let's say a global electronics company is using an MIS-based SCM system to manage its supply
chain operations.

1. Supplier Coordination:
o The company uses MIS to track orders placed with suppliers, including delivery
schedules and raw material costs.
o The MIS system sends real-time alerts if a supplier is going to miss a delivery
deadline, allowing the company to make contingency plans.
2. Inventory Control:
o Using real-time data, the company’s warehouse team can see current stock levels
of components like microchips and circuit boards.
o The system helps them reorder parts in advance when they are running low,
ensuring that production doesn’t face delays due to stockouts.
3. Production Planning:
o The company uses the MIS system to forecast demand for products based on
historical sales data, upcoming trends, and market analysis.
o This helps plan production runs efficiently, reducing waste and ensuring that
products are ready in time to meet demand.
4. Logistics and Distribution:
o Once products are manufactured, the logistics team uses the SCM system in the
MIS to track shipments and delivery schedules.
 o The system helps find the most cost-effective and timely shipping routes, reducing
transportation costs and improving delivery times.
5. Performance Analysis:
o At the end of each quarter, the company uses the MIS system to analyze supply
chain performance, such as delivery accuracy, production efficiency, and inventory
turnover.
o Based on this analysis, the company makes adjustments to its supply chain strategy
to improve efficiency in the following quarter.

Benefits of SCM in MIS:

1. Improved Efficiency:
o By integrating data and automating key processes, SCM in MIS reduces manual
work, leading to faster and more accurate decision-making.
2. Cost Reduction:
o With better control over inventory, procurement, and logistics, companies can
reduce costs associated with overstocking, transportation, and production delays.
3. Better Forecasting:
o MIS provides data analysis tools that allow businesses to make accurate demand
forecasts, ensuring they don’t produce too much or too little.
4. Enhanced Collaboration:
o Real-time data sharing between departments, suppliers, and distributors ensures
that everyone in the supply chain is aligned, reducing communication gaps and
improving responsiveness.
5. Agility and Risk Mitigation:
o By monitoring key metrics in real-time, companies can respond quickly to supply
chain disruptions or changes in market conditions, allowing them to mitigate risks.

Technologies Used in SCM and MIS:

 ERP (Enterprise Resource Planning): ERP systems often integrate SCM functionalities to
provide end-to-end visibility and management of the supply chain.
 RFID (Radio Frequency Identification): Used for tracking products and inventory in real-
time.
 AI and Machine Learning: Helps with demand forecasting, route optimization, and
predictive analytics to anticipate supply chain disruptions.
 Cloud Computing: Provides scalability and flexibility for managing supply chain data
across different locations and departments.
 Blockchain: Increasingly being used in supply chains for transparent, secure tracking of
goods and transactions.

Key Differences Between ERP and SCM:

Aspect ERP (Enterprise Resource Planning) SCM (Supply Chain Management)

Definition ERP is a software solution that SCM refers to the management of the flow
 Aspect ERP (Enterprise Resource Planning) SCM (Supply Chain Management)
integrates and automates core of goods, services, information, and
business processes like finance, HR, finances across the entire supply chain,
manufacturing, and customer from raw material acquisition to final
relations into one system. product delivery.
Focuses on external processes and the
Primary Focuses on internal processes and
flow of goods/services between suppliers,
Focus business functions.
manufacturers, and distributors.
Broader scope, covering multiple Narrower scope, focusing primarily on
Scope departments such as finance, HR, procurement, logistics, inventory
accounting, sales, and production. management, and supplier relationships.
To optimize internal business To manage the external supply chain
processes, improve efficiency, and processes efficiently, reduce costs, and
Goal
provide real-time data for decision- ensure timely delivery of goods and
making. services.
Finance, HR, Accounting, Sales, Procurement, Production, Logistics,
Functional
Manufacturing, Customer Service, Inventory Management, Supplier
Areas
Inventory, etc. Management, Demand Forecasting, etc.
Data related to external processes like
Internal data related to finance, HR,
Data Focus inventory levels, supplier performance,
sales, and production.
shipments, and demand.
Internal departments such as finance, External and internal stakeholders such as
Users HR, production, sales, and suppliers, manufacturers, distributors, and
administration. logistics teams.
Integrates external business functions
Integrates various internal business
Integration (suppliers, vendors, and logistics) with
functions into a unified system.
internal functions.
SAP SCM, Oracle SCM Cloud, Kinaxis
Example SAP, Oracle ERP, Microsoft Dynamics.
RapidResponse.
Provides real-time monitoring of supply
Provides real-time monitoring of
Real-Time chain operations like inventory levels,
internal operations like sales, finance,
Monitoring shipment statuses, and supplier
and production.
performance.
Automates internal business Automates and optimizes external
Automation processes like invoicing, payroll, and processes like order tracking, delivery
production planning. scheduling, and supplier communications.

CRM (Customer Relationship Management)

CRM (Customer Relationship Management) in the context of MIS (Management Information

Systems) refers to the use of technology and systems to manage and analyze customer
interactions and data throughout the customer lifecycle. CRM within an MIS framework helps
organizations improve customer relationships, enhance customer satisfaction, drive sales, and
foster long-term customer loyalty.
Role of CRM in MIS:

1. Data Management:
o CRM systems collect and organize customer data from multiple sources, including
sales, customer service interactions, social media, and website visits.
o MIS enables companies to aggregate and analyze this customer data to gain
valuable insights into customer behavior, preferences, and trends.
2. Customer Segmentation:
o CRM in MIS allows businesses to categorize customers into segments based on
demographics, purchase history, behavior, and more.
o This segmentation helps companies target specific groups with personalized
marketing campaigns, offers, and content.
3. Sales and Marketing Automation:
o With CRM integrated into MIS, sales and marketing teams can automate various
tasks such as lead generation, customer outreach, follow-ups, and sales tracking.
o For example, MIS can help in sending automated emails or promotional offers
based on customer data and behavior.
4. Customer Service and Support:
o CRM in MIS can track customer service requests, complaints, and issues, ensuring
timely follow-up and resolution.
o It provides customer service teams with detailed history and context about a
customer’s previous interactions, making it easier to provide personalized and
efficient support.
5. Real-Time Analytics and Reporting:
o CRM systems provide real-time access to customer data and interactions, allowing
businesses to generate reports and analyze key performance indicators (KPIs), such
as customer satisfaction, sales conversion rates, and retention rates.
o MIS helps businesses track customer feedback and satisfaction through surveys,
reviews, and support interactions.
6. Improved Communication and Collaboration:
o CRM within MIS allows for seamless communication across various departments
(sales, marketing, customer service, etc.) by centralizing customer data in one
system.
o Teams can collaborate more effectively by accessing shared customer insights,
ensuring consistent and personalized communication with customers.

Example of CRM in MIS:

Let's say a retail company is using a CRM system integrated into its MIS framework to manage
customer interactions.

1. Customer Data Collection:

o The company collects data from multiple touchpoints: website visits, purchase
history, customer feedback, email interactions, and customer support calls.
o This data is stored in the CRM system, which is part of the company’s broader MIS
platform.
2. Customer Segmentation:
 o Using the MIS, the company segments customers into groups such as “frequent
buyers,” “first-time visitors,” and “inactive customers.”
o The CRM in MIS helps the company target each segment with personalized
promotions. For example, the “frequent buyers” group might receive loyalty
discounts, while “inactive customers” might receive re-engagement emails.
3. Sales Process:
o The CRM tracks each customer’s journey from initial inquiry to purchase. The MIS
system helps sales teams track leads, opportunities, and conversions in real-time.
o If a customer abandons their shopping cart, the CRM can trigger an automated
reminder email or an exclusive offer to encourage them to complete the purchase.
4. Customer Support:
o When a customer contacts support, the CRM in the MIS system provides customer
service representatives with a detailed history of past interactions, including
purchases, inquiries, and complaints.
o The customer service team can resolve issues more quickly and accurately,
improving customer satisfaction.
5. Analytics and Reporting:
o The MIS system allows the company to track and generate reports on key CRM
metrics, such as customer retention rates, lifetime value, and response time.
o This data can be used to identify areas for improvement, optimize marketing
strategies, and improve the overall customer experience.

Benefits of CRM in MIS:

1. Enhanced Customer Experience:

o By integrating CRM with MIS, businesses can offer more personalized, responsive,
and efficient customer service and support.
o Customers feel valued when they receive personalized offers, quick responses, and
tailored communication.
2. Improved Customer Retention:
o MIS, with its ability to track and analyze customer interactions, enables businesses
to identify at-risk customers and take proactive measures to retain them, such as
targeted offers or engagement campaigns.
3. Increased Sales and Revenue:
o CRM within MIS allows businesses to identify upselling and cross-selling
opportunities by analyzing customer purchase history and behavior.
o Automation features also help sales teams nurture leads more effectively,
increasing conversion rates.
4. Better Data Analysis and Decision-Making:
o The CRM system provides businesses with real-time data on customer preferences,
behaviors, and sales trends, helping to make data-driven decisions about
marketing, sales, and customer service.
5. Streamlined Communication Across Departments:
o With customer data centralized in the CRM system, different departments (sales,
marketing, customer service) can work together more effectively and ensure that
customer interactions are consistent and aligned.
 6. Efficient Marketing Campaigns:
o By using CRM data to understand customer needs and preferences, businesses can
design more effective marketing campaigns that target the right customer
segments with personalized messages, increasing engagement and return on
investment (ROI).

Technologies Used in CRM within MIS:

 Data Analytics and Business Intelligence (BI): For analyzing customer data and
generating actionable insights.
 Cloud Computing: Many modern CRM systems are cloud-based, providing accessibility
from anywhere and scalability for growing businesses.
 Artificial Intelligence (AI) and Machine Learning: Used for predictive analytics, lead
scoring, and automated responses, helping businesses anticipate customer needs and
personalize interactions.
 Automation Tools: To automate marketing campaigns, lead nurturing, and customer
service tasks such as chatbots for 24/7 customer support.

Popular CRM Systems in MIS:

1. Salesforce: A leading cloud-based CRM that integrates with other business systems to
track sales, marketing, and customer service activities.
2. HubSpot CRM: A popular CRM platform that offers a range of tools for managing
customer relationships, marketing, and sales automation.
3. Microsoft Dynamics CRM: Part of the Microsoft Dynamics suite, it integrates with other
Microsoft products and provides robust CRM features for sales, customer service, and
marketing.
4. Zoho CRM: An affordable CRM solution that provides sales and marketing automation,
customer analytics, and multichannel communication features.
5. SugarCRM: Known for its customizable and open-source nature, it helps businesses
manage sales, marketing, and customer service.

SRM (Supplier Relationship Management)

SRM (Supplier Relationship Management) in the context of MIS (Management Information

Systems) refers to the use of technology and systems to manage a company’s interactions with
its suppliers. SRM within MIS helps businesses streamline their procurement processes,
improve supplier collaboration, and optimize the flow of goods and services across the supply
chain.

While CRM (Customer Relationship Management) focuses on managing customer

relationships, SRM focuses on managing and optimizing relationships with suppliers, ensuring
that the supply of goods, services, and materials is timely, cost-effective, and of high quality.

Role of SRM in MIS:

1. Supplier Data Management:

 o SRM systems collect, store, and manage information about suppliers, such as
contact details, performance metrics, contracts, pricing agreements, and delivery
history.
o MIS enables businesses to aggregate and analyze supplier data to assess supplier
performance, compliance, and reliability.
2. Supplier Performance Evaluation:
o SRM in MIS allows businesses to monitor key performance indicators (KPIs) of
suppliers, such as on-time delivery, product quality, cost competitiveness, and
responsiveness.
o This information helps organizations make informed decisions about continuing or
improving relationships with suppliers or switching to new ones.
3. Procurement and Sourcing:
o SRM within MIS aids in automating procurement processes, from the initial
purchase order (PO) creation to invoicing and payments.
o It helps optimize sourcing strategies by enabling companies to find the best
suppliers based on specific criteria, such as price, quality, delivery times, and
capacity.
4. Collaboration and Communication:
o SRM systems foster improved communication between companies and their
suppliers by providing shared platforms for collaboration.
o MIS systems can provide real-time updates, such as order statuses, shipment
tracking, and potential issues, ensuring that both parties are aligned.
5. Contract Management:
o SRM in MIS can track and manage supplier contracts, ensuring compliance with
terms and conditions, renewal dates, and pricing agreements.
o This helps avoid issues like overpayments, missed contract renewals, or breach of
terms.
6. Risk Management:
o With SRM integrated into MIS, companies can better manage supply chain risks by
tracking supplier reliability, identifying potential disruptions, and assessing risks
related to geopolitical factors, financial health, or compliance issues.
o Real-time data from the MIS system helps anticipate disruptions and plan for
alternate suppliers or backup plans.
7. Cost Management and Optimization:
o By providing transparency into supplier pricing, performance, and delivery history,
SRM systems help identify cost-saving opportunities.
o This could include negotiating better prices, optimizing order quantities, or
consolidating purchases to get better discounts.
8. Analytics and Reporting:
o SRM systems within MIS allow for the generation of reports and analytics on
supplier performance, procurement efficiency, and overall supply chain
effectiveness.
o These reports provide valuable insights that help companies make strategic
decisions about supplier relationships, such as whether to negotiate, switch
suppliers, or adjust purchasing strategies.
Example of SRM in MIS:

Consider a manufacturing company that uses SRM integrated into its MIS framework to
manage supplier relationships:

1. Supplier Data Collection:

o The company stores supplier details, such as contact information, contract terms,
pricing, and past performance, within the SRM system.
o The MIS aggregates all this data, making it accessible to relevant departments
(procurement, finance, operations).
2. Supplier Performance Evaluation:
o The SRM system tracks key supplier metrics, including on-time delivery rates,
defect rates, and pricing trends.
o The procurement team uses the data to assess which suppliers are consistently
meeting performance expectations and which may need to be replaced or
renegotiated with.
3. Procurement Automation:
o The company automates procurement processes by generating purchase orders
(POs) directly from the SRM system. When inventory levels fall below a set
threshold, the SRM system automatically sends orders to suppliers.
o This ensures that stock levels are replenished in a timely manner without requiring
manual intervention.
4. Supplier Communication:
o The company uses the SRM system’s collaboration tools to communicate with
suppliers, update order statuses, and resolve issues.
o For example, if there is a delay in delivery, the system allows the company to
quickly notify the supplier and take corrective actions.
5. Cost and Risk Analysis:
o The SRM system within the MIS generates reports on overall procurement costs
and identifies cost-saving opportunities, such as consolidating orders or
negotiating better terms with high-performing suppliers.
o The system also tracks supplier risks, such as financial instability or political
instability in the supplier's region, helping the company proactively address
potential disruptions.
6. Contract Management:
o The SRM system keeps track of supplier contracts, renewal dates, terms of service,
and payment schedules.
o The MIS generates alerts when a contract is about to expire or when a price
increase is expected, allowing the company to renegotiate or explore other
options.

Benefits of SRM in MIS:

1. Improved Supplier Collaboration:

o SRM enables better communication and collaboration with suppliers, leading to
improved relationships, faster issue resolution, and a more efficient supply chain.
2. Cost Savings:
 o By having detailed insights into supplier performance and pricing, businesses can
negotiate better deals, consolidate orders, or find alternative suppliers that offer
better value.
3. Enhanced Decision-Making:
o With the data provided by SRM integrated into MIS, businesses can make data-
driven decisions about which suppliers to work with, which contracts to renew,
and how to optimize procurement strategies.
4. Better Risk Management:
o SRM systems in MIS help businesses identify potential risks in the supply chain
(such as supplier disruptions, quality issues, or financial instability), allowing them
to mitigate those risks before they affect operations.
5. Increased Efficiency:
o Automating procurement processes, order generation, and supplier
communications reduces manual work and errors, speeding up the entire process
and ensuring that inventory is managed effectively.
6. Performance Monitoring:
o With real-time data on supplier performance, companies can track whether
suppliers are meeting agreed-upon terms, such as delivery times, quality
standards, and pricing.
o This helps in maintaining high-quality standards and operational efficiency.
7. Improved Negotiation Power:
o Having a clear view of supplier performance and pricing over time empowers
businesses to negotiate better deals and hold suppliers accountable for their
performance.

Technologies Used in SRM within MIS:

 Cloud Computing: Many SRM systems are cloud-based, allowing real-time access to
supplier data and enabling collaboration from anywhere.
 Data Analytics: For evaluating supplier performance, analyzing procurement costs, and
generating reports on procurement efficiency.
 AI and Machine Learning: Used for predictive analytics to forecast demand, optimize
procurement strategies, and identify potential supplier risks.
 Blockchain: Increasingly used in SRM to provide transparent and secure tracking of
supplier transactions, ensuring authenticity and reducing fraud.
 Automation Tools: To automate procurement workflows, invoice management, and
order tracking.

Popular SRM Systems in MIS:

1. SAP Ariba: A comprehensive cloud-based SRM solution that offers tools for supplier
sourcing, procurement, and performance management.
2. Oracle Procurement Cloud: An SRM solution that helps manage supplier relationships,
automate procurement, and gain insights into supplier performance.
3. Jaggaer: Offers SRM and procurement management tools that integrate with MIS to help
companies optimize supplier selection and procurement workflows.
 4. Coupa: Provides a cloud-based SRM system with features for procurement, supplier
management, and spend analytics.
5. Ivalua: A global procurement platform that provides tools for supplier management,
sourcing, procurement, and supplier performance tracking.

OPERATIONAL SUPPORT SYSTEM

Manufacturing System

A Manufacturing System in the context of Operational Support Systems (OSS) refers to the
technologies and tools used to streamline and manage manufacturing processes on a day-to-
day basis. These systems are crucial in ensuring that production operations are efficient, cost-
effective, and meet quality standards. They help monitor, control, and optimize the
manufacturing process, focusing on real-time data to ensure that the production line runs
smoothly.

Manufacturing Systems in Operational Support Systems

Manufacturing systems in OSS support the operational aspects of production planning,

scheduling, inventory management, and quality control. These systems are designed to handle
the routine tasks and ensure that day-to-day manufacturing activities are performed
efficiently and effectively.

Key Components of Manufacturing Systems in OSS:

1. Manufacturing Execution Systems (MES):

o Purpose: MES bridges the gap between enterprise-level planning (like ERP) and the
shop floor, providing real-time monitoring and control over the production
process.
o Functions:
 Tracks and monitors the production in real-time.
 Provides insights into production progress, work orders, machine statuses,
and worker performance.
 Helps with scheduling and dispatching tasks to ensure timely production.
 Ensures production aligns with demand forecasts and inventory levels.
 Provides detailed reports on production efficiency, downtime, and
performance metrics.
o Example: A factory using an MES can track how many units of a product have been
manufactured, monitor equipment conditions, and make adjustments on the fly to
reduce downtime.
2. Enterprise Resource Planning (ERP) Integration:
o Purpose: While ERP is primarily used for overall business management, ERP
integration with manufacturing systems helps align production schedules,
inventory management, and supply chain activities with overall business goals.
o Functions:
 Manages inventory, order processing, and procurement related to the
manufacturing process.
  Integrates financial, human resources, and customer data into production
planning.
 Tracks resource usage and automates ordering of raw materials when stock
levels reach predetermined levels.
o Example: ERP can trigger automatic restocking orders for raw materials based on
real-time consumption data from the MES, ensuring there are no production
delays due to shortages.
3. Production Planning and Scheduling Systems:
o Purpose: These systems help optimize the sequence and timing of manufacturing
activities to meet customer orders and production goals.
o Functions:
 Schedules production tasks to ensure equipment and labor are used
efficiently.
 Plans for machine maintenance and downtime to avoid interruptions in the
production process.
 Forecasts production demand based on historical data and market trends.
o Example: A production scheduling system can allocate work orders to specific
machines based on their available capacity, machine status, and job priority.
4. Quality Management Systems (QMS):
o Purpose: A QMS ensures that the products being manufactured meet the desired
quality standards and that any issues are identified and corrected in real-time.
o Functions:
 Monitors product quality at different stages of production.
 Tracks defect rates, test results, and production tolerances.
 Ensures compliance with regulatory and industry standards.
 Provides feedback for process adjustments if quality is not up to standard.
o Example: If a production line detects a deviation in product specifications, the
QMS can trigger an alert to the operator to correct the issue before the products
move to the next stage.
5. Inventory Control and Management Systems:
o Purpose: These systems manage raw materials, work-in-progress (WIP), and
finished goods inventory.
o Functions:
 Tracks inventory levels in real-time, ensuring materials are available when
needed for production.
 Automates the reordering of materials to avoid shortages.
 Monitors WIP inventory to ensure that materials flow efficiently through the
production process.
o Example: An inventory management system can track the quantity of raw
materials in stock and automatically notify the procurement team when more
materials are needed.
6. Supply Chain Management (SCM):
o Purpose: SCM systems in manufacturing manage the flow of materials and finished
products between suppliers, manufacturers, and customers.
o Functions:
 Coordinates the procurement of raw materials.
  Manages transportation logistics for incoming and outgoing materials.
 Ensures that suppliers meet production schedules and deadlines.
o Example: If a supplier delays delivery of materials, SCM systems can adjust
production schedules or alert the supply chain team to make alternative
arrangements.
7. Maintenance Management Systems (CMMS):
o Purpose: These systems are used to ensure that manufacturing equipment is
properly maintained, reducing downtime and ensuring continuous operation.
o Functions:
 Schedules preventive maintenance and monitors the condition of machines.
 Tracks machine failures and downtime, helping to minimize production
interruptions.
 Stores historical maintenance data to predict future failures and
maintenance needs.
o Example: A CMMS might schedule routine maintenance for machines after every
1,000 production cycles or after identifying a pattern of minor malfunctions.

Examples of Manufacturing Systems in Operational Support:

1. Toyota Production System (TPS):

o System Type: Just-in-Time (JIT) production system.
o Features:
 TPS is a lean manufacturing system that integrates inventory control and
production scheduling to reduce waste.
 Focuses on continuous improvement (Kaizen) and the minimization of
downtime.
o Operational Support: It allows for real-time monitoring of production processes,
identifying inefficiencies, and adjusting schedules to maintain smooth operations.
2. SAP Manufacturing Execution (SAP MES):
o System Type: Manufacturing Execution System (MES).
o Features:
 It provides real-time visibility into manufacturing operations, integrating
with ERP systems.
 Tracks work orders, production progress, inventory levels, and quality
management.
o Operational Support: SAP MES optimizes the production process, ensuring tasks
are completed on time, inventory is well managed, and products meet quality
standards.
3. Siemens Opcenter (formerly known as Camstar):
o System Type: Manufacturing Execution System (MES) and Quality Management
System (QMS).
o Features:
 Provides real-time visibility into manufacturing operations and allows for
detailed process analysis.
 Integrates production planning, quality management, and traceability.
 o Operational Support: Siemens Opcenter supports manufacturers by automating
workflows, improving product quality, and tracking production performance.

Benefits of Manufacturing Systems in OSS:

1. Improved Efficiency:
o By automating tasks and providing real-time data, these systems reduce manual
intervention, increase productivity, and reduce the risk of errors.
2. Cost Reduction:
o Optimizing production schedules, reducing downtime, managing inventory levels,
and maintaining equipment properly lead to lower operational costs.
3. Better Decision-Making:
o Manufacturing systems provide management with real-time data that aids in
decision-making, such as when to schedule maintenance, reorder materials, or
adjust production plans.
4. Quality Control:
o Continuous monitoring of production processes ensures that products meet
quality standards, reducing defects and the need for costly rework.
5. Flexibility:
o These systems help manufacturers quickly adjust to changes in demand, supply
chain disruptions, or equipment failures, ensuring production remains on track.
6. Compliance:
o Manufacturing systems can ensure compliance with industry regulations and
standards, especially in sectors like pharmaceuticals, food production, or
automotive.

Sales and Marketing System

A Sales and Marketing System within an Operational Support System (OSS) is designed to
support the daily operations related to sales, customer relationships, marketing activities, and
customer service. These systems ensure that the organization can efficiently manage its sales
pipeline, marketing campaigns, and customer interactions, contributing to revenue generation
and customer satisfaction on a day-to-day basis.

These systems help businesses track leads, manage customer data, optimize sales strategies,
monitor marketing efforts, and improve the overall customer experience—all in real-time.

Key Components of a Sales and Marketing System in OSS:

1. Customer Relationship Management (CRM) Systems:

o Purpose: CRM systems are designed to manage and analyze customer interactions
and data throughout the customer lifecycle. They help sales teams and marketers
engage with prospects and customers effectively.
o Functions:
 Tracks customer interactions, communications, and transactions.
 Organizes and maintains customer information (contact details, purchase
history, preferences).
  Supports sales activities like lead generation, follow-up, and closing deals.
 Helps in segmenting customers based on demographics, behavior, or
purchase history for targeted marketing.
 Automates routine tasks such as sending follow-up emails, updating contact
information, and scheduling appointments.
o Example: A sales representative can use a CRM system to track a customer's
interest in a product, follow up with an email, and schedule a demo—all within the
same system, making the sales process smoother.
2. Sales Order Management Systems (SOMS):
o Purpose: SOMS automate the process of receiving, processing, and fulfilling sales
orders.
o Functions:
 Tracks order status (from creation to fulfillment).
 Integrates with inventory and shipping systems to ensure accurate order
processing.
 Provides real-time updates on stock availability, shipping status, and delivery
times.
 Generates invoices and coordinates payment processing.
o Example: When a customer places an order online, the system automatically
updates inventory levels, processes the order, generates an invoice, and schedules
shipping—all in real-time.
3. Marketing Automation Systems:
o Purpose: These systems are designed to streamline and automate marketing
activities such as campaign management, lead nurturing, and customer outreach.
o Functions:
 Automates email marketing campaigns, social media posts, and digital
advertising.
 Tracks customer responses to campaigns (clicks, opens, conversions) and
tailors follow-up actions based on engagement.
 Supports lead generation by capturing and qualifying prospects
automatically.
 Segments customer lists and sends personalized offers or messages based
on specific criteria.
o Example: A company might use a marketing automation system to send
personalized emails based on a customer’s browsing behavior or purchase history,
nurturing the customer toward making a purchase.
4. Sales Forecasting Systems:
o Purpose: These systems help predict future sales based on historical data and
current sales trends, aiding decision-making for inventory, budgeting, and resource
allocation.
o Functions:
 Uses historical sales data to predict future sales trends.
 Analyzes data from CRM and marketing systems to make forecasts more
accurate.
 Provides reports and visualizations to assist management in strategic
planning.
 o Example: A sales manager can use a forecasting system to predict how much
inventory will be needed in the coming months based on expected sales growth or
seasonal demand fluctuations.
5. Customer Support Systems (Helpdesk & Ticketing Systems):
o Purpose: These systems are designed to provide customer service and support,
helping sales and marketing teams address customer issues or concerns quickly.
o Functions:
 Tracks customer issues or requests (support tickets).
 Provides a centralized knowledge base to resolve common problems or
queries.
 Helps automate customer service workflows, routing tickets to the right
team members.
 Integrates with CRM systems to provide customer history for quicker issue
resolution.
o Example: A customer submits a ticket about an issue with a product. The system
logs the ticket, assigns it to the appropriate customer service rep, and updates the
customer’s record in the CRM with the resolution once the issue is resolved.
6. Lead Management Systems:
o Purpose: These systems help sales and marketing teams track and manage
potential sales leads through the sales pipeline.
o Functions:
 Captures leads from various channels (website, email, events, social media).
 Scores and ranks leads based on engagement and likelihood of conversion.
 Automates follow-ups and reminders to sales reps to contact or nurture
leads.
 Tracks lead status and movement through the pipeline (e.g., from lead to
opportunity, to conversion).
o Example: When a potential customer fills out a form for more information on a
product, the system captures their contact details, qualifies the lead based on
preset criteria, and assigns it to the appropriate sales representative.
7. E-commerce Integration:
o Purpose: In many businesses, particularly retail, integrating e-commerce platforms
with sales and marketing systems allows for streamlined management of online
sales.
o Functions:
 Tracks online orders, customer interactions, and inventory in real-time.
 Supports dynamic pricing, promotions, and discounts based on customer
behavior or marketing campaigns.
 Provides customer insights based on browsing history and purchase
patterns.
o Example: A customer browses a website and adds items to their cart. The e-
commerce system can send personalized promotions or discounts to encourage
purchase completion, and automatically update inventory levels once the order is
placed.

Examples of Sales and Marketing Systems in OSS:

1. Salesforce CRM:
o System Type: Customer Relationship Management (CRM).
o Features:
 Salesforce provides tools for lead management, customer data storage, sales
forecasting, and marketing automation.
 It allows businesses to track customer interactions, automate sales tasks,
and manage marketing campaigns from a single platform.
o Operational Support: Sales reps can quickly access customer histories, follow up
on leads, and track opportunities—all in real time, improving customer
engagement and the efficiency of sales processes.
2. HubSpot Marketing Hub:
o System Type: Marketing Automation and CRM Integration.
o Features:
 HubSpot enables companies to manage email marketing, content
management, social media, and lead nurturing.
 It integrates marketing efforts with sales teams to ensure that leads are
properly qualified and followed up on.
o Operational Support: HubSpot automates many repetitive marketing tasks and
provides real-time analytics on campaign performance, helping sales and
marketing teams optimize their efforts and increase conversions.
3. Zoho CRM:
o System Type: CRM and Sales Automation.
o Features:
 Zoho CRM allows businesses to automate sales processes, manage leads,
and track customer interactions.
 It integrates with email, social media, and other communication channels to
ensure that no customer engagement is missed.
o Operational Support: It helps sales teams stay on top of leads, deal statuses, and
follow-up actions, improving productivity and customer satisfaction.
4. Marketo (Adobe):
o System Type: Marketing Automation.
o Features:
 Marketo automates digital marketing activities such as email campaigns,
customer segmentation, and lead nurturing.
 It helps create personalized campaigns based on customer behavior and
data insights.
o Operational Support: Marketo enables marketing teams to run automated
campaigns that engage customers at different stages of their journey, improving
the efficiency of marketing efforts and ensuring consistent outreach.
5. Freshdesk (Freshworks):
o System Type: Customer Support (Helpdesk).
o Features:
 Freshdesk offers ticketing, live chat, and knowledge base management for
customer support teams.
 It integrates with CRM systems to provide a full view of customer
interactions, helping resolve issues more efficiently.
 o Operational Support: It allows sales and marketing teams to handle customer
queries in real time, track issues, and provide better post-sale support, improving
customer retention.

Benefits of Sales and Marketing Systems in OSS:

1. Increased Efficiency:
o Automating repetitive tasks like follow-ups, lead scoring, email campaigns, and
order processing allows sales and marketing teams to focus on high-value
activities.
2. Improved Customer Relationships:
o By tracking customer interactions and preferences, these systems enable
personalized communication, which can improve customer satisfaction and loyalty.
3. Better Sales Pipeline Management:
o Lead management and CRM systems help sales teams manage their pipeline more
effectively, ensuring that no lead is forgotten and improving conversion rates.
4. Enhanced Marketing Campaigns:
o Marketing automation tools enable companies to deliver targeted and timely
content to prospects and customers, improving campaign ROI.
5. Data-Driven Decisions:
o These systems collect and analyze data on customer behavior, sales performance,
and marketing effectiveness, helping teams make informed, data-driven decisions.
6. Faster Response Times:
o Real-time insights into customer inquiries, sales orders, and marketing campaigns
enable quick adjustments and faster response times, improving customer
satisfaction.