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By Rakesh S 1

Syllabus Outline

Module 1 MIS concept in an organization , IT as an enablers to


MIS & Enterprise concepts . 3 D View of MIS in an
organization. MIS function hierarchy in an organization .

Module -II Emerging IT trends & Strategic Use of IT in an


organization for delivering MIS . MIS & Value
chain integration .

Module IIIMIS & IT services & products for effective business .


Storage management, CAD/CAM, BPR ,
ERP, SCM, CRM,
Data Center Management

Module IV MIS Infrastructure : H/W, S/W N/W Peripheral, Storage.

Module V Database Management , TCO

Module VI ERP implementation process , D-W & DM, DSS & EIS in
an organization.
Module VII Knowledge Management Overview , Concept of learning
organization .& organizational learning Infrastructure support to
build knowledge organization. Cultural
By Rakesh S barriers to managed 2
Core text books :

4.MIS by Roboert Schultheis &


Marry Sumnen
2. MIS by Jawadekar

Additional Reading
• ERP demystified - Leon
• DATA QUEST Magazine
• PC World. Magazine

By Rakesh S 3
Ground Rules.

4. Be in the class before the session begins.

6. Do not eat any gums while the session is on.

8. Do not read news paper or engage yourself in


any other reading or writing unless
instructed .
9. Follow classroom etiquettes & manners .

11. Keep the mobile in off mode .

13.Internal assessments will be held through


quiz, presentation & written assessment as per
the schedule given. Re test will not be
conducted for any or Byall the assessments if you
Rakesh S 4
Internal assessment dates :

Activity Date /period


Marks

Presentation last Week


10 Mks
Or case study Feb
discussion

MIS Quiz ( Objective ) Last week 10 Mks


test JAN

Mid Term Mid


20 Mks
Assessment March
( written)

[ MIS quiz will be conducted from the topics covered


in the class along with external suggested reading
from data quest, news paper
By Rakesh S
etc on current topic 5
Examples of topic for presentation.

• Data Center Management

• Storage networks & Management services.

• Network Operating center & services

• E -Procurement services

• Managed IT services

• Facility management services

• KPO

By Rakesh S 6
WI-FI Technology & Products

Embedded System& Robotics

Bio-Metric technology products & Services

Smart Card technology

Global positioning Systems & tracking

By Rakesh S 7
Presentation Guide lines:

• Scope of the chosen technology product/


services in business to build competitive edge .

• Required Infrastructure & Management


support to implement the technology product
/service.

• Key benefits , Challenge , & cost involved


.

By Rakesh S 8
Role of MIS in an organization

Managerial performance in an organization is the ability


to distinguish between efficiency & effectiveness.

Efficiency is doing things right whereas effectiveness is


doing the right things right.
Availability of right information with right person at the
right time helps the individual & the organization as a
whole to make effective decision in line with the
organization goal & objective.

Eg: Declining customer satisfaction


Evolution of Management Information System.

By Rakesh S 9
MIS is said to be a fabric woven
in to the organization system
supporting each function to make
right decision right time by the
right people.

Like the nerve system in the


human being helping to take the
decision by right parts/functions
of the body at the right time, MIS
performs the same role in the
organization system.
By Rakesh S 10
Why MIS ?

Organizations have grown in complexity to


levels which are unprecedented &
information plays a vital role in holding
together & coordinating the organizations .
Multi location , multi support, multi function
enterprise structure of an organization
needs information as a mortar which holds
the edifice of the complex system.

By Rakesh S 11
Business Enterprise concept

Business Enterprise is a tightly integrated


organizational system with its suppliers &
customers for effective & efficient decision
making processes across all levels.
Information system helps to integrate these sub
systems . Technology enablers forms the crucial
integrators & connectors for seamless , smooth
information flow across the enterprise.

By Rakesh S 12
Changing phases of an Organization.

Vendors
Customers

Organization

Business Enterprise.

Suppliers
as Customers
Organization
Partners

By Rakesh S 13
ENTERPRISE APPLICATIONS

By Rakesh S 14
Integrating Business Enterprise.

WEB
Mail Internet Based
& messaging promotion
Collaborative
Engg

ERP
Supplier SCM Organization CRM Customer

Intranet Business DRP


Intelligence Work Flow
tool system

By Rakesh S 15
MIS Process in an organization.

Managing
& Planning
Control
MIS

Development
& implementation

By Rakesh S 16
•Planning of MIS : Evaluate the business
challenges & decide on the scope of information
process for process reengineering.

•Identify the technology enablers.

•Budget the investment.

•Define measurement metrics to evaluate the


benefits of MIS .
Development & implementation of MIS.
•Create MIS team/ function .

•Build in-house or deploy standard software &


hardware tools to meet the business requirement.
By Rakesh S 17
Managing & Control of MIS :

1. Support other business function in effective


usage of information system. Viz Database
management Network Management , storage
management , Application management , Data
Security protection management .

2. Upgrade & update the technology support for high


productivity

3. Maintenance & support of infrastructure to


minimize Technology obsolesce.

By Rakesh S 18
MIS structure in an Organization

CTO/CIO/CKO
Chief Information
Officer

Hardware & Application Network Software Global Support


Peripheral Support Support Development &
support & maintenance & Services & customization services

By Rakesh S 19
MIS as an integrated system : 5 Ms Men, Money,
Machine , Material & Method

Tactical ( Middle
Decision management)

Supplier customer

Sales Mat Mfg Fin HR Operational


decision

Money/ Material M/c Man / People Process


capital Resource Infrastructure
Resources for managing the business
By Rakesh S 20
By Rakesh S 21
ENTERPRISE APPLICATIONS

By Rakesh S 22
Building & maintaining Enterprise system .
Challenges to MIS are :

1 System to keep pace with technology change resulting in high rate


of technology obsolescence.

2 Resistance in people to change with the new system, process &


technology resulting in lack of feedback & control.

3 Process not scaled up /tunes to the need of the organization

4 Integration of system & subsystem for effective MIS

By Rakesh S 23
Discussion Questions:

What are the benefits and challenges of using


enterprise systems?

What are the benefits of using systems to


support supply chain management and
collaborative commerce?

What are the benefits of using information


systems for customer relationship
management and knowledge management?

By Rakesh S 24
MIS defined : A system for transforming data in to information &
knowledge needed to support managerial decision based on
predictable patterns of activities. It must provide vertical level of
integration & feedback & control.

Evolution MIS
Organizational wisdom
KBS
DSS/ ESS Analytic , integrated & contextual,
experienced based
MIS Analytic & integrated
IS Analytic

EDP Repetitive
By Rakesh S 25
Executive Support Systems (ESS)

Decision Support Systems (DSS)

Management Information Systems (MIS)

Knowledge Work Systems (KWS)


Office Systems

Transaction Processing Systems (TPS)

By Rakesh S 26
INTERRELATIONSHIPS AMONG SYSTEMS

By Rakesh S 27
By Rakesh S 28
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Transaction Processing Systems (TPS):

• Basic business systems that serve the


operational level

• A computerized system that performs and


records the daily routine transactions
necessary to the conduct of the business

By Rakesh S 29
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

By Rakesh S 30
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

By Rakesh S 31
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Knowledge Work Systems (KWS):

Knowledge level
 Inputs: Design specs
 Processing: Modeling
 Outputs: Designs, graphics
 Users: Technical staff and professionals

Example: Engineering work station

By Rakesh S 32
MIS from
TPS

By Rakesh S 33
Management Information System (MIS

Management level
 Inputs: High-volume data
 Processing: Simple models
 Outputs: Summary reports
 Users: Middle managers

Example: Annual budgeting

By Rakesh S 34
Management Information System (MIS)

 Structured and semi-structured


decisions

 Report control oriented

 Past and present data

 Internal orientation

 Lengthy design process

By Rakesh S 35
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Decision Support System (DSS):

Management level
 Inputs: Low-volume data : selected data for specific
purpose
 Processing: Interactive & dependent on multiple
variable
 Outputs : Decision analysis using advance software
tools.
 End Users : Middle Mangers ,Professionals, Support
staff

Example: Product Contract cost analysis


Activity based costingBy(Rakesh
ABC S
Costing ), Voyage36
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

By Rakesh S 37
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Executive Support System (ESS):

Strategic level
 Inputs: Aggregate data
 Processing: Interactive
 Outputs: Projections
 Users: Senior managers

Example: Business plan >36 months

By Rakesh S 38
Executive support system (ESS)

 Top level management

 Designed to the individual

 Links CEO, CFO, CMO, CIO ,COO at all


levels

 Very expensive to keep up

 Extensive support staff

By Rakesh S 39
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

By Rakesh S 40
MIS & Information Technology

By Rakesh S 41
MIS & IT evolution

Virtual MIS
Mobile Computing

Desktop computing
Decentralized
Client Server Computing network
Local computing
MIS
Mini computers Centralized computing

Mainframe computing

By Rakesh S 42
3 Dimensional view of MIS in an organization

HOW MIS is developed & implemented in an organization

Computer aided system engineering tools


System development life cycle
Feedback & control system

Support for strategic


Hardware
planing
Software program
Support for Management
Input data
control
Procedures

IS
Support for operational

fM
people

so
control

ise
Improving marketing mix

pr
m
co
AT
H
By Rakesh S 43
WHY MIS in an organization
W
Value Chain

By Rakesh S 44
(Value Web)
Value creation through MIS
Inter Enterprise system

Supplier Organization’s Channel Buyer’s


VC VC VC VC

P&G Retail mart Channel Buyer’s behavior


effectiveness preference &
& profitability consumption

e- procurement
3PL model
By Rakesh S 45
Value creation through MIS ;

Inbound Operation Outbound Mktg Services


Logistic Logistic & Sales
Process Online
JIT & SCI control Online Link Sales support
ZD, Accuracy Order-delivery data call
& precision Collection analysis center
product mix e -
decision procure-
ment
Infrastructure : OA ,Video conferencing, internet ERP, DRP SCM .
HR : Online access of people productivity , skill based job allocation
Technology : Product Design , Cost effectiveness, on line supply
Procurement : e - soircing , e-logistics. Transport mix analysis &
vehicle tracking
By Rakesh S 46
Information Technology
Infrastructure

 Computing Hardware
 Software
 Network
 Storage
 Peripheral devices

By Rakesh S 47
Int /Ext disk
FDD/CDR/DAT

ALU Peripheral O
I controller U
N CPU T
P Keyboard
P Mouse
U Storage
RAM U Monitor
T
T NIC
Modem
Hardware Types : Multimedia
Server : Uni processor / Multi processor Printer/scanner
Digital camera

1. Work group server ( File & application low end


application)
2. Enterprise server ( Compute intensive High end
application )
By Rakesh S 48
Management Decision Criteria :
1 Scalability : Increase the power of the system within the
box.( Disk, memory , CPU , Controller support )

2 Upgradeability : Moving to next level of technology


product .

3 Serviceability : Cost & ease of maintaining the


hardware . User friendliness, Post sale service cost (
AMC)

4 Manageability : Ease of managing Operating system ,


application software , peripheral controller by the end
user .
5 Reliability : Data safety, security & high uptime

6 Performance : Cumulative performance of Hardware,


controller operating system , application software .( Net
bench, Web bench test )

7 Total Cost of Ownership analysis.


By Rakesh S
( TCO) Total investment
49
in owning the hardware over a period of time =( One time
Software

Application S/W
System S/W

System System System General Application


Management Support Development Purpose Specific
Program program Program
Prog language OA . ERP
O.S Unix & S/w SCM
System Translator
Windows, NT, Anti virus CRM
utilities Debugger
XP, RDBMS Multimedia Tally
System Generator
DBMS software CBT
performance CASE Tools
NMS
tuning
Security
Monitor
By Rakesh S 50
Program language

Low level High Level 4- GL


M/C independent
Assembly & M/C Highly optimized , cost
problem oriented
language effective tools for
language ( POL )
M/C dependent development . It can
Easy to maintain
language, Complex modify& translate handle validation checks
to understand standard queries etc easily.
Could be run on all
compatible H/w
System C, C++
Fortran Mat LAB
Commercial Scientific Special purpose
language language language Simulation language AI ,
RT, Command language, Multi
By Rakesh S
purpose Modula , matha matica 51
Storage system
Natural disaster has thrown open an vast
opportunity for storage system as a center of
attraction for managing MIS
Eg 9/11 tragedy , Katrina , Flood , Quake caused
huge loses to business .
An offsite back up solution (remote Disaster
Recovery site ) is the need of the hour for many
organization for business continuity plan.

Need of Storage system :

1.Building Data Center .


2.E –mail archiving being used as a legal evidence
3.Remote DR sites
4.Portability

By Rakesh S 52
Storage Media Type : Magnetic , Digital , Optical
(Hard disk , Floppy disk, Optical Disk,

Features : Redundancy , Speed, data availability &


Reliability
Data protection through Redundant Array of
Inexpensive Disk (RAID) implementation process .
RAID level-3 & 5
Prerequisite RAID controllers & software
Disk ( Hot plug

Storage technology
1 Storage Area Network ( SAN)
2 Network Attached Storage ( NAS)

By Rakesh S 53
By Rakesh S 54
By Rakesh S 55
Networking Working System.
LAN, WAN, VPN
WAN can be Closed user group or open network Eg Internet

LAN topologies: LAN topologies exist in BUS , Ring ,


Star . ( Logical architecture)

The mostly implemented LAN architecture , IEEE 802.2


network is BUS architecture .

Commonly used LAN devices are :

Repeaters , HUBS , Extenders Bridges Switches , NIC

By Rakesh S 56
COMPONENTS AND FUNCTIONS OF A TELECOMMUNICATIONS SYSTEM

By Rakesh S 57
COMMUNICATIONS NETWORKS

Network Topologies

 Star Network: All computers and other


devices are connected to a central host
computer

 Bus Network: Links a number of


computers by a single circuit

 Ring Network: All computers are linked


by a closed loop

By Rakesh S 58
COMMUNICATIONS NETWORKS

By Rakesh S 59
COMMUNICATIONS NETWORKS

By Rakesh S 60
COMMUNICATIONS NETWORKS

By Rakesh S 61
LAN switches provide high port density compared to bridges
accommodating n/w designs having less number of users per
segment.( micro segmentation )

Benefits:
Avoid collision which is a common phenomenon
in a shared medium network employing hubs.
2. Instant access to the full band width.
Forwards frames based on their address .

Dedicated collision free communication between network devices


increase the file transfer throughput.
Multiple simultaneous conversation is achieved by forwarding
multiple data packets at the same time thereby increasing the n/w
capacity.

By Rakesh S 62
COMPONENTS AND FUNCTIONS OF A TELECOMMUNICATIONS SYSTEM

Communications Channels

 Twisted wire: Telephone systems

 Coaxial cable: Cable television

 Fiber optics and optical networks:


Dense wave division multiplexing
(DWDM)

By Rakesh S 63
Bridging devices connect & enable data packet forwarding
between two homogeneous networks .

Switching devices enable multiple LAN segments to be


interconnected in to a single large network.
Bridging device

Switching Device

By Rakesh S 64
COMMUNICATIONS NETWORKS

By Rakesh S 65
COMMUNICATIONS NETWORKS

Private Branch Exchanges, Local Area Networks (LANs),


and Wide Area Networks (WANs)

Local Area Networks


 Require their own dedicated channels
 Encompass a limited distance
 Gateway, router, Network Operating
System (NOS), peer-to-peer

By Rakesh S 66
COMPONENTS AND FUNCTIONS OF A TELECOMMUNICATIONS SYSTEM

Communications Channels

 Wireless transmission: Microwave,


Satellites, Paging systems, Cellular
telephones, Personal communication
Services, Personal digital assistants,
Mobile data networks

 Transmission speed: Baud,


bandwidth

By Rakesh S 67
COMPONENTS AND FUNCTIONS OF A TELECOMMUNICATIONS SYSTEM

By Rakesh S 68
WAN & WAN technologies.
Routers. Multiplexer WAN protocols, NOS
WAN can be classified as Leased line network , VSAT
network , or Internet based WAN , Remote area network

By Rakesh S 69
By Rakesh S 70
OBJECTIVES

 What technologies are used in


telecommunications systems?

 What telecommunications transmission


media should our organization use?

 How should our organization design its


networks?

By Rakesh S 71
OBJECTIVES

 What alternative network services are


available to our organization?

 What telecommunications applications


can be used for electronic commerce
and electronic business?

By Rakesh S 72
COMPONENTS AND FUNCTIONS OF A TELECOMMUNICATIONS SYSTEM

Telecommunications:
 Communication of information by
electronic means

 Includes digital data transmission


as well as voice transmission

By Rakesh S 73
COMPONENTS AND FUNCTIONS OF A TELECOMMUNICATIONS SYSTEM

Telecommunications System Components

 Computers to process information

 Terminals or any input/output devices


that send or receive data

 Communications processors

 Communications software

By Rakesh S 74
COMPONENTS AND FUNCTIONS OF A TELECOMMUNICATIONS SYSTEM

Functions of Telecommunications Systems

 Transmit information

 Establish interface between sender


and the receiver

 Route messages along most efficient


paths

By Rakesh S 75
COMPONENTS AND FUNCTIONS OF A TELECOMMUNICATIONS SYSTEM

Functions of Telecommunications Systems

 Perform elementary processing of


information

 Perform editorial tasks on data

 Convert message speed or format

 Control flow of information

By Rakesh S 76
COMPONENTS AND FUNCTIONS OF A TELECOMMUNICATIONS SYSTEM

Communications Processors and Software

 Front-end processor: Manages


communications for the host computer
 Concentrator: Collects and
temporarily stores messages
 Controller: Supervises
communication traffic
 Multiplexer: Enables single
communication channel to carry data
transmissions
By Rakesh S 77
COMMUNICATIONS NETWORKS

Private Branch Exchanges


 Central switching system
 Handle firm’s voice and digital
communications

By Rakesh S 78
COMMUNICATIONS NETWORKS

Wireless LANs

 Wi-Fi (802.11b) standard: Up to 11


Mbps, low cost, high-speed mobile
Internet access, links work groups

 Bluetooth standard: Up to 720 Kbps,


small personal area networks

By Rakesh S 79
COMMUNICATIONS NETWORKS

Wide Area Networks (WANs)

 Span large geographical distance

 Consist of variety of cable, satellite,


and microwave technologies

 Switched lines, dedicated lines

By Rakesh S 80
COMMUNICATIONS NETWORKS

Value-Added Networks (VANs)

 Private, multipath, data-only, third-party-managed


network

Other Network Services


 Packet switching, Frame Relay, Asynchronous
transfer mode (ATM)
 Integrated Services Digital Network (ISDN), Digital
subscriber line (DSL), Cable modems, T1 line -
Broadband

By Rakesh S 81
COMMUNICATIONS NETWORKS

Network Convergence

Converged network
 Enables voice, video and data to run
over a single network

Unified messaging
 System combining voice messages,
e-mail, and fax

By Rakesh S 82
ELECTRONIC COMMERCE AND ELECTRONIC BUSINESS TECHNOLOGIES
Electronic Commerce and Electronic Business Technologies

Electronic Mail and Groupware

 E-mail: Eliminates telephone tag and


costly long-distance telephone
charges

 Groupware: Enables work groups at


different locations to participate in
discussion forums and work on shared
documents and projects
By Rakesh S
By Rakesh S 83
ELECTRONIC COMMERCE AND ELECTRONIC BUSINESS TECHNOLOGIES

Electronic Commerce and Electronic Business Technologies

Voice Mail and Fax

 Voice mail: Digitizes spoken message


and transmits it over a network

 Fax: Digitizes and transmits


documents over telephone lines

By Rakesh S 84
ELECTRONIC COMMERCE AND ELECTRONIC BUSINESS TECHNOLOGIES

Electronic Commerce and Electronic Business Technologies

Teleconferencing, data
conferencing,
and videoconferencing
 Teleconferencing: Ability to confer
with a group of people simultaneously

 Data conferencing: Two or more


users can edit and modify data files
simultaneously

 Videoconferencing: Participants are


able to see each other over video
By Rakesh S 85
ELECTRONIC COMMERCE AND ELECTRONIC BUSINESS TECHNOLOGIES

Electronic Commerce and Electronic Business Technologies

Digital information services, distance


learning and E-Learning

 Distance learning: Education or


training delivered over a distance to
individuals in one or more locations

 E-learning: Instruction delivered online


using the Internet or private networks
By Rakesh S 86
ELECTRONIC COMMERCE AND ELECTRONIC BUSINESS TECHNOLOGIES

Electronic Data Interchange (EDI)

 Direct computer-to-computer
exchange between two organizations
of standard business transaction
documents

By Rakesh S 87
COMPONENTS AND FUNCTIONS OF A TELECOMMUNICATIONS SYSTEM

By Rakesh S 88
Peripheral system

MODEM ,
Printer Thermal printer , Dot matrix , ink Jet , laser jet ,
Scanner
plotter
Digitizer
Bar code reader
External back up devices
External Storage devices.

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MIS & Learning organization :
learning organizations are the one where people continually
expand their capacity to create the results by nurturing the
thinking ability of the people & constantly move up in the
learning process. They learn from past mistakes, , by sharing of
knowledge, taking feedback & exercising control.

MIS aims to build a learning organization .


The disciplines of learning organization are :
Personal mastery
Mutual trusts & mental models
Building shared vision
System thinking
Team learning
Today’s solution Tomorrow’s problem
In system approach stop blaming the external environment , every
one is to blame & no one is to blame.
By Rakesh S 98
By Rakesh S 99
Management Information Systems 8/e
Chapter 2 Information Systems in the Enterprise

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Sales and Marketing Systems

Major functions of systems:


 Sales management, market research,
promotion, pricing, new products

Major application systems:


 Sales order info system, market
research system, pricing system

By Rakesh S 100
Management Information Systems 8/e
Chapter 2 Information Systems in the Enterprise

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Sales and Marketing Systems

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Chapter 2 Information Systems in the Enterprise

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Manufacturing and Production Systems

Major functions of systems:


 Scheduling, purchasing, shipping,
receiving, engineering, operations

Major application systems:


 Materials resource planning systems,
purchase order control systems,
engineering systems, quality control
systems

By Rakesh S 102
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SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

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SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

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SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Financing and Accounting Systems

Major functions of systems:


 Budgeting, general ledger, billing, cost
accounting

Major application systems:


 General ledger, accounts receivable,
accounts payable, budgeting, funds
management systems

By Rakesh S 105
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Chapter 2 Information Systems in the Enterprise

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

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SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Human Resource Systems

Major functions of systems:


 Personnel records, benefits,
compensation, labor relations, training

Major application systems:


 Payroll, employee records, benefit
systems, career path systems,
personnel training systems

By Rakesh S 107
Management Information Systems 8/e
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SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

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SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

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ENTERPRISE APPLICATIONS

Business Processes and Information Systems

Business processes

 Manner in which work is organized,


coordinated, and focused to produce a
valuable product or service

 Concrete work flows of material,


information, and knowledge—sets of
activities

By Rakesh S 110
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ENTERPRISE APPLICATIONS

Business Processes and Information Systems

 Unique ways to coordinate work,


information, and knowledge

 Ways in which management chooses


to coordinate work

By Rakesh S 111
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Chapter 2 Information Systems in the Enterprise

ENTERPRISE APPLICATIONS

Business Processes and Information Systems

Information systems help


organizations

 Achieve great efficiencies by automating


parts of processes

 Rethink and streamline processes

By Rakesh S 112
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Chapter 2 Information Systems in the Enterprise

ENTERPRISE APPLICATIONS

Examples of Business Processes

 Manufacturing and production:


Assembling product, checking quality,
producing bills of materials

 Sales and marketing: Identifying


customers, creating customer
awareness, selling

By Rakesh S 113
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ENTERPRISE APPLICATIONS

Examples of Business Processes

 Finance and accounting: Paying


creditors, creating financial statements,
managing cash accounts

 Human Resources: Hiring employees,


evaluating performance, enrolling
employees in benefits plans

By Rakesh S 114
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ENTERPRISE APPLICATIONS

Business Processes and Information Systems

Cross-Functional Business Processes


 Transcend boundary between sales,
marketing, manufacturing, and research
and development

 Group employees from different


functional specialties to a complete
piece of work

Example: Order ByFulfillment


Rakesh S
Process 115
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ENTERPRISE APPLICATIONS

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ENTERPRISE APPLICATIONS

Enterprise Applications
 Enterprise systems

 Supply chain management systems

 Customer relationship management

systems
 Knowledge management systems

By Rakesh S 117
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ENTERPRISE APPLICATIONS

Traditional View of the Systems

 Within the business: There are


functions, each having its uses of
information systems

 Outside the organization’s


boundaries: There are customers and
vendors

Functions tend to work in isolation


By Rakesh S 118
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ENTERPRISE APPLICATIONS

Figure 2-13
By Rakesh S 119
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ENTERPRISE APPLICATIONS

Benefits of Enterprise Systems

 Firm structure and organization:


One organization

 Management: Firm-wide knowledge-


based management processes

 Technology: Unified platform

 Business: More efficient operations


and customer-driven business
processes
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Challenges of Enterprise Systems

 Difficult to build: Require


fundamental changes in the way the
business operates

 Technology: Require complex pieces


of software and large investments of
time, money, and expertise

 Centralized organizational
coordination and decision making:
Not the best wayByfor the firms to
Rakesh S 121
Management’s Challenges

Integration: Different systems serve variety of


functions, connecting organizational levels
difficult, costly

Enlarging scope of management thinking:


Huge system investments, long development
time must be guided by common objectives

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High degree of
Too Little MIS flexibility in Low
decision making effectiveness

Focussed Effective
Management management
Implementation
Control decision

Extensive
leverage on MIS Too much
for decision standardization
& process driven

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System & enterprise concepts
System : An integrated set of components that interact with
each other to achieve the goal of the enterprise ie gathering
analyzing & dissemination of management information
across the business enterprise.
A system must essentially have :

•Defined boundaries.
•Input & output
•Conversion process of input & output
•System interface & drivers
•Legacy data conversion
•System formats
•System languages
•People
System Entropy : Disorder & chaos .w.r.t MIS in an organization. It
results in loosing competitive advantage in Business .
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Supply Chain Management (SCM)

Supply Chain Management (SCM)


 Close linkage and coordination of
activities involved in buying, making,
and moving a product

 Integrates supplier, manufacturer,


distributor, and customer logistics time

 Reduces time, redundant effort, and


inventory costs
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Supply Chain Management (SCM)

Supply Chain

 Network of organizations and business


processes

 Helps in procurement of materials,


transformation of raw materials into
intermediate and finished products

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Supply Chain Management (SCM)

Limitations:

 Inefficiencies can waste as much as


25% of company’s operating costs

 Bullwhip Effect: Information about the


demand for the product gets distorted
as it passes from one entity to next

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Supply Chain Management (SCM)

 Helps in distribution of the finished


products to customers

 Includes reverse logistics - returned


items flow in the reverse direction from
the buyer back to the seller

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How Information Systems Facilitate Supply Chain Management

 Decide when, what to produce, store, move


 Rapidly communicate orders
 Communicate orders, track order status
 Check inventory availability, monitor levels
 Track shipments
 Plan production based on actual demand
 Rapidly communicate product design change
 Provide product specifications
 Share information about defect rates, returns

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Supply Chain Management (SCM)

 Supply chain planning system:


Enables firm to generate forecasts for a
product and to develop sourcing and a
manufacturing plan for the product

 Supply chain execution system:


Manages flow of products through
distribution centers and warehouses

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Collaborative Commerce

 Uses digital technologies to enable


multiple organizations to collaboratively
design, develop, build, move, and
manage products

 Increases efficiencies in reducing


product design life cycles, minimizing
excess inventory, forecasting demand,
and keeping partners and customers
informed
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Industrial Networks

Private Industrial Networks

 Web-enabled networks

 Link systems of multiple firms in an


industry

 Coordinate transorganizational business


processes

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Customer Relationship Management (CRM)

Customer Relationship Management


(CRM)

 Manages all ways used by firms to deal with


existing and potential new customers

 Business and Technology discipline

 Uses information system to coordinate entire


business processes of a firm
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Customer Relationship Management (CRM)

 Provides end-to-end customer care

 Provides a unified view of customer


across the company

 Consolidates customer data from


multiple sources and provides analytical
tools for answering questions

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Knowledge Management Systems


 Creating knowledge

 Discovering and codifying knowledge

 Sharing knowledge

 Distributing knowledge

By Rakesh S 137
Chapter 2

INFORMATION
SYSTEMS IN THE
ENTERPRISE

By Rakesh S 138

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