Download Chapter 7

Chapter 7
Processes, Organizations,
and Information Systems
"Every Morning I Get a Report About
the Exercise Your Mother's Getting..."
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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?
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Q1: What Are the Basic Types of
Processes?
Business
Process
with
Three
Activities
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How Do Processes Vary by
Organizational Scope?
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Common Workgroup Processes
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How Do Structured Processes Vary by
Scope?
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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
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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
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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
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Problems Created by Information Silos
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Information Silos as Drivers
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Example Enterprise Process and
Information System
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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.
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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
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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)
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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
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Customer Life Cycle
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CRM Applications
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ERP Applications
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Pre-ERP Information System: Bicycle
Manufacturer
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ERP Information Systems
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ERP Enabled Sales Dashboard
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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.
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Design and Implementation for the Five
Components
“Virtual Integrated Database”
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Using MIS InClass 7: Improving the
Process of Making Paper Airplanes
See textbook for exercise instructions.
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Q5: What Are the Elements of an ERP
System?
Applications programs, databases, procedures,
training and consulting that integrate:
• Supply chain
• Manufacturing
• CRM
• Human
• Accounting
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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
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SAP Ordering Business Process
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Inherent Processes: SAP Ordering
Business Process (cont’d)
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What Companies Are the Major ERP
Vendors?
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Q6: What Are the Challenges of Implementing
New Enterprise Information Systems?
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Q7: How Do Inter-enterprise IS Solve
the Problems of Enterprise Silos?
Information Silos Without PRIDE
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Inter-enterprise PRIDE System
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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.
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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?
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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?
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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?
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Case Study 7: Using the PRIDE
Database
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Defining the Workout Table with SQL
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PRIDE, Person, Workout, and
Performance Tables
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Tables Relating to Exercise
Prescriptions
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PRIDE Database Tables
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