Processes, Organizations, - PowerPoint Presentation

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Processes, Organizations, - PPT Presentation

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Slide1

Processes, Organizations,and Information Systems

Chapter 7Slide2

"Every Morning I Get a Report About the Exercise Your Mother's Getting..."

Study QuestionsQ1: What are the basic types of processes?Q2: How can information systems improve process quality?Q3: How do information systems eliminate the problem of information silos?

Q4: How do CRM, ERP, and EAI support enterprise processes?

Q5: What are the elements of an ERP system?

Q6: What are the challenges of implementing new enterprise information systems?Q7: How do inter-enterprise IS solve the problems of enterprise silos?Q8: 2023?

Q1: What Are the Basic Types of Processes?

Business Process with Three

ActivitiesSlide5

Q2: How Can Information Systems Improve Process Quality?Process efficiency: Ratio of process outputs to inputsProcess effectiveness: How well a process achieves organizational strategy

How Can Processes Be Improved?

Change process structure

Information Systems Can Be Used to Improve Process Quality By:Performing an activityPartially automated, completely automatedAugmenting human performing activity

Common reservation system

Controlling

Q3: How Do Enterprise Systems Eliminate the Problem of Information Silos?How Do Information System Silos Arise?Data isolated in islands of automationDifferent department goalsDifferent personal and workgroup needsDuplicate data as organization grows

Ethics Guide: Dialing for DollarsAssume you are a salesperson.Been a bad quarter. VP of sales authorized a 20% discount on new orders if customers take

delivery prior to end of

quarter

so order can be booked for this quarter.VP says “Start dialing for dollars, and get what you can. Be creative.”You identify your top customers to offer discount deal.Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallSlide15

Q4: How Do CRM, ERP, and EAI Support Enterprise Processes?Business Process ReengineeringIntegrated data, enterprise systems create stronger, faster, more effective linkages in value chains Difficult, slow, and exceedingly expensive Key personnel determine how best to use new technology

Requires high-level and expensive skills and considerable

time

Emergence of Enterprise Application SolutionsInherent processes Predesigned procedures for using software productsBased on “industry best practices”Customer

relationship

management

Customer Relationship Management (CRM)Suite of applications, a database, and a set of inherent processesManage all interactions with customer through four phases of customer life cycle:

Marketing, customer acquisition, relationship management, loss/churn

Intended to support customer-centric organization

Enterprise Application Integration (EAI)Connects system “islands.”Enables communicating and sharing data.Provides integrated information.

Provides integrated layer over the top of existing systems while leaving functional applications “as is.”

Enables a gradual move to ERP.

Using MIS InClass 7: Improving the Process of Making Paper Airplanes

See

textbook

for exercise instructions.Slide27

Q5: What Are the Elements of an ERP System?Applications programs, databases, procedures, training and consulting that integrate:Supply chain ManufacturingCRM Human Accounting

ERP Application ProgramsERP application programs Set configuration parameters

ERP

atabasesInitial database design includedTrigger program codeStored procedure codeERP process

blueprints

ERP c

onsulting and training

SAP Ordering Business Process

Inherent Processes: SAP Ordering Business Process (cont’d)

Q8: 2023?Expect many acquisitions by the major players such as Oracle and SAP.Storing of data in various places in the cloud, while other versions of data stored in corporate data in SAP can cause data update and integrity problems.Allowing access via mobile devices is potentially serious security threat.

One-Stop ShoppingData integration can make organizations more vulnerable to fraudsters.Centralizing data enables organization to focus security measures.Sharing data has privacy and security

issues for PRIDE.

Example

Guide: ERP and the Standard, Standard BlueprintsOrganization adapts its processes to standard blueprintsIf all firms in an industry use same business processes, how can a firm gain competitive advantage?How will innovation occur?

Does “commoditized” standard blueprint prevent sustaining a competitive advantage?

Active ReviewQ1: What are the basic types of processes?Q2: How can information systems improve process quality?Q3: How do information systems eliminate the problem of information silos?