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Processes, Organizations, and Information Systems Chapter 7.

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Presentation on theme: "Processes, Organizations, and Information Systems Chapter 7."— Presentation transcript:

1 Processes, Organizations, and Information Systems Chapter 7

2 7-2 "Every Morning I Get a Report About the Exercise Your Mother's Getting..." Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

3 7-3 Study Questions Q1: What are the basic types of processes? Q2: How can information systems improve process quality? Q3: How do information systems eliminate the problem of information silos? Q4: How do CRM, ERP, and EAI support enterprise processes? Q5: What are the elements of an ERP system? Q6: What are the challenges of implementing new enterprise information systems? Q7: How do inter-enterprise IS solve the problems of enterprise silos? Q8: 2023? Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

4 7-4 Q1: What Are the Basic Types of Processes? Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Business Process with Three Activities

5 7-5 How Do Processes Vary by Organizational Scope? Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

6 7-6 Common Workgroup Processes Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

7 7-7 How Do Structured Processes Vary by Scope? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

8 7-8 Q2: How Can Information Systems Improve Process Quality? Process efficiency: Ratio of process outputs to inputs Process effectiveness: How well a process achieves organizational strategy How Can Processes Be Improved? –Change process structure –Change process resources –Change both Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

9 7-9 Information Systems Can Be Used to Improve Process Quality By: Performing an activity –Partially automated, completely automated Augmenting human performing activity –Common reservation system Controlling process flow –Order approval process Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

10 7-10 Q3: How Do Enterprise Systems Eliminate the Problem of Information Silos? How Do Information System Silos Arise? Data isolated in islands of automation Different department goals Different personal and workgroup needs Duplicate data as organization grows Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

11 7-11 Problems Created by Information Silos Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

12 7-12 Information Silos as Drivers Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

13 7-13 Example Enterprise Process and Information System Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

14 7-14 Ethics Guide: Dialing for Dollars Assume you are a salesperson. Been a bad quarter. VP of sales authorized a 20% discount on new orders if customers take delivery prior to end of quarter so order can be booked for this quarter. VP says “Start dialing for dollars, and get what you can. Be creative.” You identify your top customers to offer discount deal. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

15 7-15 Q4: How Do CRM, ERP, and EAI Support Enterprise Processes? Business Process Reengineering Integrated data, enterprise systems create stronger, faster, more effective linkages in value chains Difficult, slow, and exceedingly expensive Key personnel determine how best to use new technology Requires high-level and expensive skills and considerable time Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

16 7-16 Emergence of Enterprise Application Solutions Inherent processes –Predesigned procedures for using software products –Based on “industry best practices” Customer relationship management (CRM) Enterprise resource planning (ERP) Enterprise application integration (EAI) Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

17 7-17 Customer Relationship Management (CRM) Suite of applications, a database, and a set of inherent processes Manage all interactions with customer through four phases of customer life cycle: – Marketing, customer acquisition, relationship management, loss/churn Intended to support customer-centric organization Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

18 7-18 Customer Life Cycle Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

19 7-19 CRM Applications Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

20 7-20 ERP Applications Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

21 7-21 Pre-ERP Information System: Bicycle Manufacturer Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

22 7-22 ERP Information Systems Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

23 7-23 ERP Enabled Sales Dashboard Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

24 7-24 Enterprise Application Integration (EAI) Connects system “islands.” Enables communicating and sharing data. Provides integrated information. Provides integrated layer over the top of existing systems while leaving functional applications “as is.” Enables a gradual move to ERP. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

25 7-25 Design and Implementation for the Five Components Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall “Virtual Integrated Database”

26 7-26 Using MIS InClass 7: Improving the Process of Making Paper Airplanes Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall See textbook for exercise instructions.

27 7-27 Q5: What Are the Elements of an ERP System? Applications programs, databases, procedures, training and consulting that integrate: Supply chain Manufacturing CRM Human Accounting Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

28 7-28 ERP Application Programs ERP application programs – Set configuration parameters ERP databases –Initial database design included –Trigger program code –Stored procedure code ERP process blueprints ERP consulting and training Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

29 7-29 SAP Ordering Business Process Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

30 7-30 Inherent Processes: SAP Ordering Business Process (cont’d) Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

31 7-31 What Companies Are the Major ERP Vendors? Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

32 7-32 Q6: What Are the Challenges of Implementing New Enterprise Information Systems? Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

33 7-33 Information Silos Without PRIDE Q7: How Do Inter-enterprise IS Solve the Problems of Enterprise Silos? Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

34 7-34 Inter-enterprise PRIDE System Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

35 7-35 Q8: 2023? Expect many acquisitions by the major players such as Oracle and SAP. Storing of data in various places in the cloud, while other versions of data stored in corporate data in SAP can cause data update and integrity problems. Allowing access via mobile devices is potentially serious security threat. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

36 7-36 One-Stop Shopping Data integration can make organizations more vulnerable to fraudsters. Centralizing data enables organization to focus security measures. Sharing data has privacy and security issues for PRIDE. Example underlines some of management problems of inter-enterprise IS. –Viewing competitor’s? How secure is the cloud vendor? Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

37 7-37 Guide: ERP and the Standard, Standard Blueprints Organization adapts its processes to standard blueprints If all firms in an industry use same business processes, how can a firm gain competitive advantage? How will innovation occur? Does “commoditized” standard blueprint prevent sustaining a competitive advantage? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

38 7-38 Active Review Q1: What are the basic types of processes? Q2: How can information systems improve process quality? Q3: How do information systems eliminate the problem of information silos? Q4: How do CRM, ERP, and EAI support enterprise processes? Q5: What are the elements of an ERP system? Q6: What are the challenges of implementing new enterprise information systems? Q7: How do inter-enterprise IS solve the problems of enterprise silos? Q8: 2023? Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

39 7-39 Case Study 7: Using the PRIDE Database Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

40 7-40 Defining the Workout Table with SQL Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

41 7-41 PRIDE, Person, Workout, and Performance Tables Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

42 7-42 Tables Relating to Exercise Prescriptions Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

43 7-43 PRIDE Database Tables Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

44 7-44


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