Business processes

and
Information Systems
Business processes
Collection of activities
Business Organization
Collection of Business processes
The Order Fulfillment Process
Information systems Improves Business Processes

Automate many steps in business

processes that were formerly performed
manually
 Replacing sequential steps with tasks that can
be performed simultaneously, and eliminating
delays in decision making.
SYSTEMS FOR DIFFERENT
MANAGEMENT GROUPS
A business firm has systems to support different
groups or levels of management.
Transaction processing systems,
Management information systems,
Decision-support systems,
Executive-support systems,
 Sales and Marketing Systems
SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

ORDER PROCESSING ENTER, PROCESS, TRACK ORDERS OPERATIONAL

MARKET ANALYSIS IDENTIFY CUSTOMERS & MARKETS KNOWLEDGE

PRICING ANALYSIS DETERMINE PRICES MANAGEMENT

SALES TRENDS PREPARE 5-YEAR FORECASTS STRATEGIC

 Manufacturing and Production Systems
SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

MACHINE CONTROL CONTROL ACTIONS OF EQUIPMENT OPERATIONAL

COMPUTER-AIDED-DESIGN DESIGN NEW PRODUCTS KNOWLEDGE

PRODUCTION PLANNING DECIDE NUMBER, SCHEDULE OF PRODUCTS MANAGEMENT

FACILITIES LOCATION DECIDE WHERE TO LOCATE FACILITIES STRATEGIC

Overview of Inventory Systems
 Financing and Accounting Systems
SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

ACCOUNTS RECEIVABLE TRACK MONEY OWED TO FIRM OPERATIONAL

PORTFOLIO ANALYSIS DESIGN FIRM'S INVESTMENTS KNOWLEDGE

BUDGETING PREPARE SHORT TERM BUDGETS MANAGEMENT

PROFIT PLANNING PLAN LONG-TERM PROFITS STRATEGIC

 Human Resource Systems
SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

TRAINING & DEVELOPMENT TRACK TRAINING, SKILLS, APPRAISALS OPERATIONAL

CAREER PATHING DESIGN EMPLOYEE CAREER PATHS KNOWLEDGE

COMPENSATION ANALYSIS MONITOR WAGES, SALARIES, BENEFITS MANAGEMENT

HUMAN RESOURCES PLANNING PLAN LONG-TERM LABOR FORCE NEEDS STRATEGIC

Human Resource Systems
 Interrelationships Among Systems

The various types of systems in the organization have interdependencies. TPS are major producers of
information that is required by many other systems in the firm, which, in turn, produce information
for other systems. These different types of systems are loosely coupled in most business firms, but
increasingly firms are using new technologies to integrate information that resides in many different
systems.
 Problem
How different kinds of IS work together
(Different technology, Different databases)

Cost to maintain different systems

The challenge to get them all work together

(information integration )
 Solution: Enterprise applications
Enterprise applications integrates a
related set of functions and business
processes
Enterprise Applications
Enterprise systems
Supply chain management systems
Customer relationship management systems
Knowledge management systems
Traditional View of the Systems
Enterprise Systems (ERP)
 ERP
Integrate different business processes
into a single software system.

Information previously fragmented in

many different systems is stored in a
single comprehensive data repository
 Benefits of Enterprise Systems

Firm structure and organization:

One organization

Technology:
Unified platform

Business:
More efficient operations
 Challenges of Enterprise Systems

Difficult to build:
Require fundamental changes in the way the
business operates

Technology:
Require complex pieces of software
large investments of time
money
expertise
 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
 Supply Chain Management (SCM)

Network of organizations and business processes

Helps in procurement of materials, transformation

of raw materials into intermediate and finished
products

Use of RFID
 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
Share information about defect rates, returns

SCM process in Wal-Mart

Customer Relationship Management (CRM)

Help to manage their relationships with

customers.

Customer satisfaction, and customer retention.

 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

How CRM works in KFC

 Knowledge Management Systems
Some firms perform better than others because
they have better knowledge about how to create,
produce, and deliver products and services

KMS collect all relevant knowledge and

experience in the firm

Make it available wherever and whenever it is

needed to improve business processes and
management decisions
 THE INFORMATION SYSTEMS FUNCTION IN
BUSINESS

The information systems department is

responsible for maintaining:
Hardware,
software,
data storage,
networks
These all comprise the firms IT infrastructure.
 THE INFORMATION SYSTEMS DEPARTMENT

The information systems department consists of

specialists such as
programmers,
systems analysts,
project leaders,
and information systems managers.
 Programmers are highly trained technical
specialists who write the software instructions
for computers.
 Systems analysts constitute the principal
liaisons between the information systems
groups and the rest of the organization.

It is the systems analysts job to translate

business problems and requirements into
information requirements and systems.
 Information systems managers are leaders of
teams of programmers and analysts, project
managers etc.
 In many companies, the information systems
department is headed by a chief information
officer (CIO).

Who oversees the use of information

technology in the firm.

CIOs are expected to have a strong business

background as well as information systems
expertise
 Large firms today also have positions for a
chief security officer, chief knowledge officer,
and chief privacy officer, all of whom work
closely with the CIO.