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Chapter 1
Thinking in terms of business processes helps managers look at their organization
4
from the customer’s perspective. Consider the example illustrated in Figure 1-2 of a
customer who wants to purchase a new smartphone. The customer wants information
about the company’s products so she can select a smartphone and various high-tech
accessories for the phone. She wants to place her order quickly and easily, and perhaps
even arrange for financing through the company. She expects quick delivery of the correct
model of smartphone, and she wants 24-hour customer support for any problems. The
customer is not concerned about how the smartphone was marketed, how its components
were purchased, how it was built, or how the delivery truck will find the best route to her
house. The customer wants the satisfaction of having the latest in mobile phone
technology at a reasonable price.
Businesses must always consider the customer’s viewpoint in any transaction. What is
the difference between a business function and a business process from the customer’s
point of view? Suppose the customer’s mobile phone is damaged during shipment. Because
only one functional area is involved in accepting the return of the damaged item, receipt
of the return is a business function—specifically, it is part of the customer relationship
management function of Marketing and Sales. Because several functional areas are
involved in the repair and return of the mobile phone back to the customer, the handling
of the repair is a business process. Thus, in this example, the customer is dealing
with many of the company’s functional areas in the process of buying and obtaining
a smartphone.
A successful customer interaction is one in which the customer (either internal or
external) is not required to interact separately with each business function involved in the
process. If companies are not coordinating their business functions, a customer could
receive conflicting information and likely would quickly become dissatisfied. Successful
business managers view their business operations from the perspective of a satisfied
customer and strive to present one consistent (and positive) “face” to the customer.
For the mobile phone company to satisfy its customers, it must make sure its
functional areas of operation are integrated. Mobile phone technology changes rapidly,
and the devices the phone company sells change frequently. To provide customers with
accurate information, people performing the sales function must have up-to-date
information about the latest mobile phones available for sale; otherwise, a customer
might order a smartphone that the company’s manufacturing plant no longer produces.
People performing the manufacturing function need to receive the details of a customer’s
smartphone order quickly and accurately from the employee (or online ordering system)
performing the sales function, so the right phone can be packaged and shipped on time
to the customer. If the customer is financingthesmartphonethrough themobilephone
company, the employees performing the sales order function must gather information
about the customer and process it quickly, so financing can be approved in time to
support shipping the phone.
Sharing data effectively and efficiently between and within functional areas leads to
more efficient business processes. Information systems that are designed so functional
areas share data are called integrated information systems. Working through this textbook
will help you understand the benefits of integrated information systems and the problems
that can occur when information systems are not integrated. Research has shown that
integrated information systems can help managers better control their organizations.
With enhanced information flow, communication between parts of the company improves,

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