MIS

Lecture No. - 1

- NV Kumar

The Changing Contemporary Business Environment

The Changing Contemporary Business Environment

1. Globalization 2. Transformation of Industrial Economies 3. Transformation of the Enterprise 4. Emergence of the Digital Firm

The Changing Contemporary Business Environment 1. Globalization

 A growing percentage of advanced industrial economies in North America, Europe and Asia depends on imports and exports

 Companies are also distributing core business functions in product design, manufacturing, finance and customer support to locations in other countries where the work can be performed more cost effectively

The success of firms today and in the future depends on their ability to operate globally

The Changing Contemporary Business Environment

2. Transformation of Industrial Economies
 The US, Japan, Germany and other major industrial powers are being transformed from industrial economies to knowledge-and information-based service economies, whereas manufacturing has been moving to lowwage countries.

 In a knowledge-and information-based economy, knowledge and information are key ingredient in creating wealth.  Today most people no longer work on farms or in factories but instead are found in sales, education, healthcare, banks, insurance firms and law firms

Knowledge and information are becoming the foundation for many new services and products

The Changing Contemporary Business Environment 3. Transformation of the Enterprise

 The traditional business firm wasand still is - a hierarchical, centralized, structured arrangement of specialists that typically relied on a fixed set of standard operating procedures to deliver a mass produced product/service

Redesigned Work Flow For Insurance Underwriting

 The new style of business firm is a flattened (less hierarchical), decentralized, flexible arrangement of generalists who rely on nearly instant information to deliver masscustomized products and services uniquely suited to specific markets or customers.
Knowledge, learning, and decision making of individual employees ensure proper operation of the firm

The Changing Contemporary Business Environment 4. Emergence of the Digital Firm

 The organizations relationships with customers, suppliers, and employees are digitally enabled and mediated
near total reliance on a set of information technologies to organize and manage

The Changing Contemporary Business Environment

There are 4 major systems that help to define the Digital Firm     Supply Chain Management Systems Customer Relationship Management Systems Enterprise System Knowledge Management System

Supply Chain Management Systems Information Systems that automate the relationship between a firm and its suppliers in order to optimize the planning, sourcing manufacturing, and delivery of products

Customer Relationship Management Systems

Information Systems for creating a coherent integrated view of the relationships a firm maintains with its customers

CRM Application Clusters

Enterprise Systems Integrated enterprise-wide Information Systems that coordinate key internal processes of the firm, integrating data from:      Manufacturing Finance Accounting Sales and Marketing Human Resources

ERP Application Components

Knowledge Management Systems Systems that support the creation, capture, storage, and dissemination of firm expertise and knowledge

Enterprise knowledge portal emphasizes its use as a web-base knowledge Management System

MANAGEMENT CHALLENGES
1. Design competitive and effective systems 2. Understand system requirements of global business environment 3. Create information architecture that supports organizations goal