Managing Information Systems Information Systems in Organisations Part 2 Dr. Stephania Loizidou Himona ACSC 345

Dr. S. Loizidou - ACSC3452 Objectives  To understand relationships between IS and business processes  To understand the business value of IS

Dr. S. Loizidou - ACSC3453 Topics  Business processes and IS –Relationship between business processes and IS –Customer Relationship Management (CRM) –Supply Chain Management (SCM)  Business value of IS –Overview of assessing business value

Dr. S. Loizidou - ACSC3454 Business Processes  What are business processes?

Dr. S. Loizidou - ACSC3455 Examples of Business Processes  Sales and marketing –Identifying customers, selling the product  Manufacturing and production –Assembling products, checking for quality  Finance and accounting –Paying creditors, creating financial statements  Human resources –Hiring employees, appraising employees

Dr. S. Loizidou - ACSC3456 IS and Business Processes  Single or multiple IS can support one business process: –Can be more efficient if done correctly –Can reduce costs  Selecting business processes to automate requires significant analysis  Business Process Re-engineering (BPR)

Dr. S. Loizidou - ACSC3457 Customer Relationship Management (CRM)  Coordination of all business processes for dealing with customers  Customers are long-term assets: –Not exploitable sources of income –Good relationship with customers brings better and longer-term income  Examples: –Siebel, GoldMine, Avaya

Dr. S. Loizidou - ACSC3458 Supply Chain Management (SCM)  Coordination of all business processes for buying, making and moving products  Integration of supplier and distributor into a single process –Can reduce time and effort and inventory costs –Products on demand: suppliers can send products direct to customers  Examples: –SAP, CSC, PeopleSoft

Dr. S. Loizidou - ACSC3459 Enterprise Systems (ES)  Organisation-wide IS that integrate key business processes to facilitate information flow  Also known as Enterprise Resource Planning (ERP) systems  Integration of the six types of IS –Improves availability of information and removes duplication and associated errors –Can improve efficiency and reduce cost  Examples: –SAP

Dr. S. Loizidou - ACSC34510 Examples of ES  CRM and SCM are a step towards ES  Demonstrates how multiple business processes can be served by a suite of integrated IS  Includes external organisational links through Industrial Networks

Dr. S. Loizidou - ACSC34511 Business Value of IS  What is the business value of IS?

Dr. S. Loizidou - ACSC34512 Realising Value  Assessment of IS for implementation –Financial and non-financial models –Tangible and intangible benefits  Benefits may go direct to customer –Reduce costs lead to reduced prices for competitiveness  Benefits may not be realised if poorly implemented

Dr. S. Loizidou - ACSC34513 Example Costs  What example costs can you think of?

Dr. S. Loizidou - ACSC34514 Example Costs  Hardware  Software  Services  Personnel

Dr. S. Loizidou - ACSC34515 Example Tangible Benefits  What example tangible benefits can you think of?

Dr. S. Loizidou - ACSC34516 Example Tangible Benefits  Increased productivity  Low operating costs  Reduced work force  Lower computer expenses  Lower supplier costs  Lower clerical/professional costs  Reduced growth of expenses  Reduced facility costs

Dr. S. Loizidou - ACSC34517 Example Intangible Benefits  What example intangible benefits can you think of?

Dr. S. Loizidou - ACSC34518 Example Intangible Benefits  Improved asset use; resource control; planning  Increased flexibility  More timely information  Increased learning  Attain legal requirements  Enhanced employee goodwill, job satisfaction, decision making, operations  Higher customer satisfaction  Better corporate image

Dr. S. Loizidou - ACSC34519 Summary  Looked at the relationships between IS and business processes –Examples of IS used for business processes with CRM, SCM and ES  Looked at the business value of IS –Examples of costs and benefits of IS