Presentation on theme: "CHAPTER 1 THE MODERN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT"— Presentation transcript:
1 CHAPTER 1 THE MODERN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT TECHNOLOGY AND INFORMATION SYSTEMSDDC 1583CHAPTER 1 THE MODERN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENTTHE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENTBusiness Processes and Business Process ManagementInformation system : Concept and Definitions.The Global Web- Based PlatformBusiness Pressures, Organizational Responses and IT Support.Why Are Information System Important to Me?The Plan of the Book
2 Business Processes & Business Process Management A business process is an ongoing collection of related activitiesthat create a product or a service of value to the organization, its businesspartners and / or its customer.A process has inputs and outputs and its activities can be measuredMany processes cross functional areas in an organizationExampleProduct development involves research, design, engineering, manufacturing, marketing and distribution
3 Business Processes & Business Process Management Accounting Business ProcessesManaging accounts payableManaging accounts receivableReconciling bank accountManaging cash receiptsManaging invoice billingsManaging petty cashProducing month-end closeProducing virtual closeFinancial Business ProcessesManaging account collectionManaging bank loan applicationsProducing business forecastsApplying customer credit approval and credit termsProducing property tax assessmentsManaging stock transactionsGenerating financial cash flow reportsMarketing Business ProcessesManaging post-sale customer follow upCollecting sales taxesApplying copyrights and treatmarksUsing customer satisfaction surveysManaging customer serviceHandling customer complainHandling returned goods from customer
4 Business Processes & Business Process Management Producing sales leadsEntering sales ordersTraining sales personnelProduction / Operations management Business ProcessesProcessing bills of materialsProcessing manufacturing change ordersManaging master parts list and filesManaging packing, storage, and distributionProcessing physical inventoryManaging purchasingManaging quality control for finished goodsAuditing for quality assuranceReceiving, inspecting, and stocking parts and materialsHandling shipping and freight claimsHandling vendor selection, files and inspectionsHuman Resources Business ProcessesApplying disability policiesManaging employee hiringHandling employee orientationManaging files and recordsApplying healthcare benefitsManaging pay and payrollProducing performance appraisals and salary adjustmentsManaging resignations and terminations
5 Business Processes & Business Process Management Applying training / tuition reimbursementManaging travel and entertainmentManaging workplace rules and guidelinesOverseeing workplace safetyManagement Information System Business ProcessesAntivirus controlComputer security issues incident reportingTraining computer usersComputer user / staff trainingApplying disaster recovery proceduresApplying electronic mail policyGenerating Internet use policyManaging service agreements and emergency serviceApplying user workstation standardsManaging the use of personal software.EXAMPLES OF BUSINESS PROCESSES
6 Business Processes & Business Process Management Cross- Functional Processes- Cross Functional Processes meaning that no single functional area isresponsible for their execution.- Multiple functional area collaborate to perform the process.- Each functional are must execute its specific process steps in a coordinated,collaborative way.
7 Business Processes & Business Process Management Cross- Functional ProcessesProcurement Process* includes all of the tasks involved in acquiring needed materials externally fromvendor.* Comprises 5 steps that are completed in three different functional areas ofthe firm: warehouse, purchasing and accounting.1The warehouse documents this need with a purchase requisition, which it sends to the purchasing department2In turn, the purchasing department identifies a suitable vendor, creates a purchase order based on the purchase requisition, and sends the order to the vendor3When the vendor receives the purchase order, it ships the materials, which are received in the warehouse4The vendor then send an invoice which is received by the accounting department5Accounting sends payment to the vendor, thereby completing the procurement process
8 Business Processes & Business Process Management Cross- Functional ProcessesFulfillment Process* is concerned with efficiently processing Customer Order.* is triggered by a Customer Purchase Order that is received by the salesdepartment.* Sales then validates the purchase order and creates a sales order.* The sales order communicate date related to the order functional areas withinthe organization, and it tracks the progress of the offer.* The warehouse prepares and sends the shipment to the customer.* The customer then makes a payment, which account records.
9 Business Processes & Business Process Management An organization’s business process can create a competitive advantage if theyEnable the company less responsive and efficient.ExampleIllustrates the e- ticket purchasing business process
10 BUSINESS PROCESS MANAGEMENT Excellence in executing business processes is widely recognized as the underlying basic for all significant measures of competitive performance in an organization.Consider these measures, for example:-Customer satisfactionThe result of optimizing and aligning business process to fulfill customers needs, wants, and desiresCost reductionThe result of optimizing operations and supplier processCycle and fulfillment timeThe result of optimizing the manufacturing and logistics processesQualityThe result of optimizing the design, development and production processDifferentiationThe result of optimizing the marketing and innovation processesProductivityThe result of optimizing each individual’s work processes
11 BUSINESS PROCESS MANAGEMENT Business Process Management (BPM) is a management technique that includes:-MethodsToolsHelps companies improve profitability by decreasing costs and increasing revenues.Over time BPM can create a competitive advantage by improving organizationalflexibility.BPM can provide cost benefits and increase customer satifactionTo support the design, analysis, implementation,management and optimization of business process
12 INFORMATION SYSTEM: Concepts & Definitions DATA, INFORMATION AND KNOWLEADGEData items refer to an elementary description of things, events, activities, and transactions that are recorded, classified, and stored but not organized to convey meaningInformation refers to data that have been organized so that they have meaning and value to the recipientKnowledge consists of data and/or information that have been organized and processed to convey understanding, experience, accumulated learning, and expertise as they apply to a current business problemKNOWLEDGEDATAINFORMATIONBinary code, the foundation of information and knowledge, is the key to making complexdecision
13 INFORMATION SYSTEM: Concepts & Definitions INFORMATION TECHNOLOGY ARCHITECTUREAn organization’s information technology architecture is a high-level map or plan of the information assets in an organization
14 INFORMATION TECHNOLOGY INFRASTRUCTURE INFORMATION SYSTEM: Concepts & DefinitionsINFORMATION TECHNOLOGY INFRASTRUCTUREAn organization’s information technology infrastructure consists of the physical facilities, IT components, IT services, and IT personnel that support the entire organizationModern organizations operate within a global, Web-based platform, which is discussed next.DATABASEHARDWAREproceduresproceduresSOFTWARENETWORKproceduresproceduresIt takes technology (hardware, software, databases and network) withappropriate procedures to make a CBOS useful for people
15 THE GLOBAL WEB-BASED PLATFORM The global, Web-based platform that has recently emerged spans the world and is best represented by the Internet and the functionality of the World Wide WebThe platform enables individuals to connect, compute, communicate, collaborate, and compete anywhere and at any time.One of the biggest impacts this platform has had is the creation of new globalization opportunities.The three stages of globalization:Globalization 1.0 (1492 to 1800) – countriesGlobalization 2.0 (1800 to 2000) – multinational companiesGlobalization 3.0 (2000 and beyond) – groups and individuals
16 BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES AND IT SUPPORT What external business pressures create threats and opportunities for today’s businesses?How have organizations responded to these pressures?How does IT support these organizational responses?
18 Business Pressures: Market BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES AND IT SUPPORTBUSINESS PRESSURESBusiness Pressures: MarketGlobal economy and strong competitionNAFTA, EU, etc.Rise of India and ChinaGlobal labor costsNeed for real-time operationsThe online marketplace never closes and up-to-the-minute information is required for organizational decision makingThe changing nature of the workforceThe workforce is becoming more diverse and includes increasing numbers of women, single parents, minorities, and persons with disabilitiesPowerful customersCustomers have access to vast amounts of information and have access to a large number of retailers and service providers
19 Business Pressures: Technology BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES AND IT SUPPORTBUSINESS PRESSURESBusiness Pressures: TechnologyTechnological innovation and obsolescenceNew technologies are constantly being developedThese new technologies must be considered when creating new innovative products, services, and processesOld technology rapidly becomes obsoleteInformation overloadThe amount of information collected, stored, and made accessible to organizations and individuals continues to growWithout proper IT tools, the information flood can be overwhelmingIT’s such as search engines and data mining tools provide support for incorporating this vast amount of information into real-time organizational decision making
20 Business Pressures: Societal/Political/Legal BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES AND IT SUPPORTBUSINESS PRESSURESBusiness Pressures: Societal/Political/LegalSocial responsibilityResponsibility not only to traditional organizational stakeholders, but also society as a wholeCompliance with government regulations and deregulationProtection against terrorist attacksEthical issuesEthics relates to general standards of right and wrongInformation ethics relates specifically to standards of right and wrong in information-processing practices (or other online activities)
21 ORGANIZATIONAL RESPONSES BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES AND IT SUPPORTORGANIZATIONAL RESPONSESStrategic systemsCustomer focus and service (CRM), self-serviceContinuous improvement and business process reengineeringMake-to-order and mass customizationBetter data managementBusiness alliancesE-business and e-commerce
22 IT SUPPORT FOR ORGANIZATION RESPONSES BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES AND IT SUPPORTIT SUPPORT FOR ORGANIZATION RESPONSESIT support for business activities has evolved quite dramatically from the 1950s through todayThis topic is discussed in more detail in the following chapter
23 Example: Grocery Store Checkout Old ProcessNew ProcessIn the “old-old” economy, when you visited retail stores you placed your items in a shopping cart and proceeded to checkoutThe clerk manually entered the price for each item and you paid for them in cashThe store gathered no information about the transaction other than receiving paymentIn the new economy you take your items to a self-service kiosk where you swipe the barcode for each item over a reader and then pay by cash, credit card or debit cardIn the coming generation of checkout technology all items with have wireless RFID tags allowing you to simply walk your cart through a device to total up the price and make payment
24 Example: Photography Old Process New Process You buy film at the store, insert it into your camera, and take picturesOnce you complete the film, sometimes weeks or months after you began the roll, you take it to the store (or mail it) for processingGo back to the store and pay for enlargements and duplicationsSend photos by mail to family and friendsVideo requires a second, different, cameraUse a digital camera that can also take videosNo film is needed, and no processing is requiredYou can see the results immediately and enlarge and print photos quicklyIn minutes you can electronically send the pictures to your family and friendsYou can view the pictures on personal computers, personal digital assistants (PDAs), and other digital devices
25 WHY ARE INFORMATION SYSTEM IMPORTANT TO ME? Information systems are important to you for a variety of reasons:-First, information systems and information technologies are integral to your life.Second, the IS field offers many career opportunities.Finally, all functional areas in an organization utilize information systems.INFORMATION SYSTEM AND INFORMATION TECHNOLOGY ARE INTEGRAL TO YOUR LIVESThere are many examples of the ways in which information systems and technologiesare embedded in your lives. For example, thinks of all you can do online:Register for classes• Take classes, and not just classes from your university • Access class syllabi, information, PowerPoints, and lectures• Research class papers and presentations• Conduct banking• Pay your bills• Research, shop, and buy products from companies or other people• Sell your “stuff”•
26 WHY ARE INFORMATION SYSTEM IMPORTANT TO ME? INFORMATION SYSTEM AND INFORMATION TECHNOLOGY ARE INTEGRAL TO YOUR LIVES• Search for, and apply for, jobs• Make your travel reservations (hotel, airline, rental car)In addition to all the activities you can perform online, there are other examples of how information systems and information technologies are essential to your daily living.For example: you may not use a regular wire line telephone. Rather, youuse a smart phone that has a calendar, an address
27 IT OFFERS CAREER OPPORTUNITIES WHY ARE INFORMATION SYSTEM IMPORTANT TO ME?IT OFFERS CAREER OPPORTUNITIESBecause information technology is vital to the operation of modern businesses, itoffers many employment opportunities.The demand for traditional IT staff- programmers, business analysts, systemanalyst and designers.The information system field includes the people in organizations who design andbuild information systems, the people who use those systems, and the peopleresponsible for managing those systems.
29 MANAGING INFORMATION RESOUCES WHY ARE INFORMATION SYSTEM IMPORTANT TO ME?MANAGING INFORMATION RESOUCESManaging Information System in modern organizations is difficult, complex task.Information Systems have enormous strategic value to organizations.Information Systems are very expensive to acquire, operate and maintain.Factor contributing to the difficulty in managing information systems is the evolutionof the management systems (MIS) function within the organization.