Chapter 7

Report
Chapter 7
Processes, Organizations,
and Information Systems
"Every Morning I Get a Report About
the Exercise Your Mother's Getting..."
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
7-2
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
7-3
Q1: What Are the Basic Types of
Processes?
Business
Process
with
Three
Activities
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
7-4
How Do Processes Vary by
Organizational Scope?
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
7-5
Common Workgroup Processes
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
7-6
How Do Structured Processes Vary by
Scope?
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall
7-7
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
7-8
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
7-9
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
7-10
Problems Created by Information Silos
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
7-11
Information Silos as Drivers
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
7-12
Example Enterprise Process and
Information System
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
7-13
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
7-14
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
7-15
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
7-16
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
7-17
Customer Life Cycle
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
7-18
CRM Applications
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
7-19
ERP Applications
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
7-20
Pre-ERP Information System: Bicycle
Manufacturer
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
7-21
ERP Information Systems
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
7-22
ERP Enabled Sales Dashboard
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
7-23
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
7-24
Design and Implementation for the Five
Components
“Virtual Integrated Database”
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
7-25
Using MIS InClass 7: Improving the
Process of Making Paper Airplanes
See textbook for exercise instructions.
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall
7-26
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
7-27
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
7-28
SAP Ordering Business Process
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall
7-29
Inherent Processes: SAP Ordering
Business Process (cont’d)
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall
7-30
What Companies Are the Major ERP
Vendors?
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
7-31
Q6: What Are the Challenges of Implementing
New Enterprise Information Systems?
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
7-32
Q7: How Do Inter-enterprise IS Solve
the Problems of Enterprise Silos?
Information Silos Without PRIDE
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
7-33
Inter-enterprise PRIDE System
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
7-34
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
7-35
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
7-36
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
7-37
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
7-38
Case Study 7: Using the PRIDE
Database
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
7-39
Defining the Workout Table with SQL
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
7-40
PRIDE, Person, Workout, and
Performance Tables
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
7-41
Tables Relating to Exercise
Prescriptions
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
7-42
PRIDE Database Tables
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
7-43
7-44

similar documents