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Building and managing systems

Management information systems Presented by: Amanpreet Mann MBA (IB) 2010-2012

PC connection- small direct mail seller of computers and related equipment. TODAY largest in U.S. The companys core Oracle JD Edwards ERP System had not kept up with the companys rate of growth Over the years it had extended its fulfillment network to include more than a dozen external partners who handled drop ship orders This system was not designed to handle a multi tiered fulfillment network

Case!

Managers asked for changes Process had become unmanageable Increased operating costs- low profit margins SOLUTION They decided to overhaul the fulfillment system They developed new front end software programs based on web service Core team- 3 to 7 IS specialists

The software can determine the fastest, most economical way to fulfill an order Perform real time inventory checks during the sales allocation process Reduced time and operating costs Fulfill customer orders more rapidly and accurately

Analyzing the organizations problems with existing information systems, assessing peoples information requirements, selecting appropriate technology and redesigning business processes and jobs

Conclusion !

Business challenges

management Information systems Business solutions

organization

technology

Systems as planned organizational change!

IT can promote various degrees of organizational change

Four kinds : AUTOMATION (most common form) RATIONALIZATION REENGINEERING PARADIGM SHIFTS

Systems development and organizational change

Assist employees Efficient and effective task performance Calculating paychecks and payroll registers, giving bank tellers instant access to customer deposit records, developing a nationwide of airline reservation terminals for airline reservation agents. These are all examples of early automation.

Automation

Follows quickly from early automation It is the streamlining of standard operating procedures. PC connections new order fulfillment system is effective because besides using sophisticated web services, managers redesigned business processes accordingly.

Rationalization

Powerful type of organizational change Business processes are analyzed, simplified and redesigned Reorganizes work flows, combining steps to cut waste, eliminate repetitive and paper intensive tasks

Reengineering

More radical form of business change It involves rethinking the nature of the business and the nature of the organization The long-haul trucking and transportation firm Schneider national used new information systems to change its business model. It created a new business managing the logistics for other companies

Paradigm shift

When systems are used to strengthen the wrong business model or business processes, the business can become more efficient at doing what it should not do!! Determine what business processes are the most important to focus on How improving these processes will help the firm execute its strategy Understand and measure the performance of existing processes

Steps in effective reengineering

It enables organizations to manage incremental process changes that are required simultaneously in many areas of the business BPM includes work flow mgmt, quality mgmt, change mgmt, tools for recasting the firms business processes into a standardized form

Process improvement: BPM

Another area of continuous process improvement TQM holds that the achievement of quality control is an end in itself Every1 is expected to contribute to the overall improvement of quality ranging form the engineer who avoids design errors, the production worker who spots defects, the sales representative and even the secretary who avoids typing mistakes

Process improvement: TQM and six sigma

Six sigma is another quality concept It is the specific measure of quality, representing 3.4 defects per million opportunities Such quality improvements not only raise the level of product and service quality but they can also lower costs

IS can help firms achieve their quality goals by helping them simplify products or processes, make improvements based on customer demands, reduce cycle time, improve the quality and precision of design and production and meet benchmarking standards.

How information systems support quality improvements

Thank you!