Business Process

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Business Process

  1. 1. ENTERPRISE INFORMATION SYSTEMS & BUSINESS PROCESSES BY Saurabh Goel IBS Chennai
  2. 2. <ul><li>What are the major types of systems in a business? What role do they play? </li></ul><ul><li>How do information systems support the major business functions? </li></ul><ul><li>Why should managers pay attention to business processes? </li></ul>OBJECTIVES Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise
  3. 3. <ul><li>What are the benefits and challenges of using enterprise systems? </li></ul><ul><li>What are the benefits of using systems to support supply chain management and collaborative commerce? </li></ul><ul><li>What are the benefits of using information systems for customer relationship management and knowledge management? </li></ul>OBJECTIVES Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise
  4. 4. <ul><li>Integration: Different systems serve variety of functions, connecting organizational levels difficult, costly </li></ul><ul><li>Enlarging scope of management thinking: Huge system investments, long development time must be guided by common objectives </li></ul>MANAGEMENT CHALLENGES Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise
  5. 5. Types of Information Systems KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise Figure 2-1
  6. 6. MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise
  7. 7. <ul><li>Business processes </li></ul><ul><li>Manner in which work is organized, coordinated, and focused to produce a valuable product or service </li></ul><ul><li>Concrete work flows of material, information, and knowledge—sets of activities </li></ul>Business Processes and Information Systems ENTERPRISE APPLICATIONS Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise
  8. 8. <ul><li>Unique ways to coordinate work, </li></ul><ul><li>information, and knowledge </li></ul><ul><li>Ways in which management chooses </li></ul><ul><li>to coordinate work </li></ul>Business Processes and Information Systems Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS
  9. 9. <ul><li>Information systems help organizations </li></ul><ul><li>Achieve great efficiencies by automating parts of processes </li></ul><ul><li>Rethink and streamline processes </li></ul>Business Processes and Information Systems Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS
  10. 10. <ul><li>Manufacturing and production: Assembling product, checking quality, producing bills of materials </li></ul><ul><li>Sales and marketing: Identifying customers, creating customer awareness, selling </li></ul>Examples of Business Processes Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS
  11. 11. <ul><li>Finance and accounting: Paying creditors, creating financial statements, managing cash accounts </li></ul><ul><li>Human Resources: Hiring employees, evaluating performance, enrolling employees in benefits plans </li></ul>Examples of Business Processes Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS
  12. 12. <ul><li>Cross-Functional Business Processes </li></ul><ul><li>Transcend boundary between sales, marketing, manufacturing, and research and development </li></ul><ul><li>Group employees from different functional specialties to a complete piece of work </li></ul><ul><li>Example: Order Fulfillment Process </li></ul>Business Processes and Information Systems Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS
  13. 13. The Order Fulfillment Process Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS Figure 2-12
  14. 14. <ul><li>Enterprise Applications </li></ul><ul><li>Enterprise systems </li></ul><ul><li>Supply chain management systems </li></ul><ul><li>Customer relationship management systems </li></ul><ul><li>Knowledge management systems </li></ul>Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS
  15. 15. <ul><li>Within the business: There are functions, each having its uses of information systems </li></ul><ul><li>Outside the organization’s boundaries: There are customers and vendors </li></ul><ul><li>Functions tend to work in isolation </li></ul>Traditional View of the Systems Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS
  16. 16. Traditional View of the Systems Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS Figure 2-13
  17. 17. Enterprise Systems Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS Figure 2-14
  18. 18. <ul><li>Firm structure and organization: One organization </li></ul><ul><li>Management: Firm-wide knowledge-based management processes </li></ul><ul><li>Technology: Unified platform </li></ul><ul><li>Business: More efficient operations and customer-driven business processes </li></ul>Benefits of Enterprise Systems Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS
  19. 19. <ul><li>Difficult to build: Require fundamental changes in the way the business operates </li></ul><ul><li>Technology: Require complex pieces of software and large investments of time, money, and expertise </li></ul><ul><li>Centralized organizational coordination and decision making: Not the best way for the firms to operate </li></ul>Challenges of Enterprise Systems Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS
  20. 20. <ul><li>Supply Chain Management (SCM) </li></ul><ul><li>Close linkage and coordination of activities involved in buying, making, and moving a product </li></ul><ul><li>Integrates supplier, manufacturer, distributor, and customer logistics time </li></ul><ul><li>Reduces time, redundant effort, and inventory costs </li></ul>Supply Chain Management (SCM) Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS
  21. 21. <ul><li>Supply Chain </li></ul><ul><li>Network of organizations and business processes </li></ul><ul><li>Helps in procurement of materials, transformation of raw materials into intermediate and finished products </li></ul>Supply Chain Management (SCM) Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS
  22. 22. <ul><li>Limitations: </li></ul><ul><li>Inefficiencies can waste as much as 25% of company’s operating costs </li></ul><ul><li>Bullwhip Effect: Information about the demand for the product gets distorted as it passes from one entity to next </li></ul>Supply Chain Management (SCM) Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS
  23. 23. Supply Chain Management Figure 2-15 Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS
  24. 24. <ul><li>Helps in distribution of the finished products to customers </li></ul><ul><li>Includes reverse logistics - returned items flow in the reverse direction from the buyer back to the seller </li></ul>Supply Chain Management (SCM) Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS
  25. 25. <ul><li>Decide when, what to produce, store, move </li></ul><ul><li>Rapidly communicate orders </li></ul><ul><li>Communicate orders, track order status </li></ul><ul><li>Check inventory availability, monitor levels </li></ul><ul><li>Track shipments </li></ul><ul><li>Plan production based on actual demand </li></ul><ul><li>Rapidly communicate product design change </li></ul><ul><li>Provide product specifications </li></ul><ul><li>Share information about defect rates, returns </li></ul>How Information Systems Facilitate Supply Chain Management Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS
  26. 26. <ul><li>Supply chain planning system: Enables firm to generate forecasts for a product and to develop sourcing and a manufacturing plan for the product </li></ul><ul><li>Supply chain execution system: Manages flow of products through distribution centers and warehouses </li></ul>Supply Chain Management (SCM) Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS
  27. 27. <ul><li>Uses digital technologies to enable multiple organizations to collaboratively design, develop, build, move, and manage products </li></ul><ul><li>Increases efficiencies in reducing product design life cycles, minimizing excess inventory, forecasting demand, and keeping partners and customers informed </li></ul>Collaborative Commerce Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS
  28. 28. Figure 2-16 Collaborative Commerce Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS
  29. 29. <ul><li>Private Industrial Networks </li></ul><ul><li>Web-enabled networks </li></ul><ul><li>Link systems of multiple firms in an industry </li></ul><ul><li>Coordinate transorganizational business processes </li></ul>Industrial Networks Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS
  30. 30. <ul><li>Customer Relationship Management (CRM) </li></ul><ul><li>Manages all ways used by firms to deal with existing and potential new customers </li></ul><ul><li>Business and Technology discipline </li></ul><ul><li>Uses information system to coordinate entire business processes of a firm </li></ul>Customer Relationship Management (CRM) Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS
  31. 31. <ul><li>Provides end-to-end customer care </li></ul><ul><li>Provides a unified view of customer across the company </li></ul><ul><li>Consolidates customer data from multiple sources and provides analytical tools for answering questions </li></ul>Customer Relationship Management (CRM) Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS
  32. 32. Customer Relationship Management (CRM) Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS Figure 2-17
  33. 33. INFORMATION SYSTEMS IN THE ENTERPRISE 2 Chapter

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