CISB113 Fundamentals of Information Systems Data Management.
CISB113 Fundamentals of Information Systems Cross Functional Enterprise Systems.
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Transcript of CISB113 Fundamentals of Information Systems Cross Functional Enterprise Systems.
CISB113 CISB113 Fundamentals of Information Fundamentals of Information
SystemsSystems
Cross Functional Cross Functional Enterprise SystemsEnterprise Systems
RecapRecap
• Porter’s Five Forces– Assess your business or potential business from
the perspectives of the 5 forces• Buyers (bargaining power)• Suppliers (bargaining power)• Competitors• Substitutes• New Entrants
Discussing Porter’s Five Forces (on a Discussing Porter’s Five Forces (on a private college)private college)
Forces Explanation Impact of the forces
Buyers • The buyers do have choices from so many private colleges that offer similar courses at competitive rates
High
Suppliers • Suppliers for services such as facilities, food, books, manpower are many. The private college have many options and should not have any issues in settling for the best and most suitable choice.
Low
Competitors • There many privates colleges offering similar courses at highly competitive rates as well as extra benefits such as industry certifications, better campus environment etc
High
Discussing Porter’s Five Forces (on a Discussing Porter’s Five Forces (on a private college)private college)
Forces Explanation Impact of the forces
Substitutes • Is it possible for people to substitute the type of service and product offered by this private college?
• People will continue to pursue their education, therefore replacing a degree programme with something else is not very likely to happen.
Low
New Entrants • To open a new private college requires a big investment, license and preparation for the infrastructure. Hence it is not easy for new private colleges to break into the market.
Low
So what can we do based on this knowledge ?•Identify focus area for improvement•Help identify opportunities for strategic IT
The Porter’s Value ChainThe Porter’s Value Chain
Another concept to help identify opportunities for strategic IT Value chain is a network of value-creating processes One activity may affect the cost or performance of others
E.g. product design change reduces manufacturing costs & improves reliability, service costs decrease.
Supportprocesses
Primaryprocesses
Summary of Types of ISSummary of Types of IS
Types of IS Description
Transaction Processing Systems Automates routine and repetitive tasks that are critical to the operation of the organizatione.g. payroll system, customer billing, Point-of-Sale
Office Automation Systems Used by data workers for clerical type of works and basic communication e.g. email, word-processing, presentation, desktop publishing
Knowledge Management Systems
Supports knowledge workers who are responsible for finding or developing new knowledge for the organization and integrating it with existing knowledge e.g. web-based computer aided information seeking, learning management systems
Summary of Types of ISSummary of Types of IS
Types of IS Description
Management Information Systems
These systems access, organize, summarize, and displayed information for producing periodic reports e.g. daily list of employees and the hours they work, or a monthly report of expenses as compared to a budget
Decision Support Systems Used by managers to support complex non-routine decisions. e.g . Answering query such as ‘which female permanent employee sells the most product in the last quarter?’
Executives Support Systems
Enterprise-wide DSS that help top-level executives (senior management) analyze, compare, and highlight trends in important variables so that they can monitor performance and identify opportunities and problems.
Emphasizes graphical displays and easy-to-use user interfaces
Now back to today’s lecture…..
Learning OutcomesLearning Outcomes
At the end of this lesson, you should be able to:• Discuss Business Process Re-engineering• Describe Cross Functional Enterprise Systems
• Processes that span across several different departments of one business.
• Advancement in IT results in conversion from functional processes to cross functional processes
• Many companies today are using IT to develop integrated cross functional enterprise systems
• Purpose : – Reengineer and improve important business
process across the enterprise
Cross Functional Business ProcessCross Functional Business Process
Business Process Reengineering:• Rethinking and redesign of business process
• Goals : Efficient, Effective, Customer Satisfaction• High potential payback vs. high risk
Business Process Re-engineeringBusiness Process Re-engineering
Taco Bell created the K-Minus program (Kitchenless restaurant) based on their belief that they are a retail service company, not a manufacturing company. In the new process, meat, beans, corn shells, lettuce, tomatoes and cheese for their products are prepared outside of the restaurant in central commissaries. At the Taco Bell restaurants, the food ingredients that had been prepared will be put together when ordered for customer consumption. Taco Bell cites the following results: greater quality control, better employee morale, fewer employee accidents and injuries (due to preparation task off-site), big savings and more time to focus on the customer business processes.
(Hammer and Champy 1993, p 178-179).
• The above diagram is an example of a business process that must be supported by cross-functional enterprise Information Systems
• Scenario : A new product development process in a manufacturing company.
Cross Functional Enterprise Cross Functional Enterprise SystemsSystems
• Enterprise systems focused on accomplishing fundamental business process with involvement of company’s customer, supplier, partner, employees from different departments and stakeholders
• The key term is “enterprise-wide”
Cross Functional Enterprise Cross Functional Enterprise SystemsSystems
• Customer Relationship Management (CRM)– Focuses on acquiring and retaining profitable customers
via marketing, sales, and services– CRM application integrates all of the primary business
activities in the Porter’s Value Chain.– Tracks all interactions with the customer from prospect
through follow up service and support– Customer centric
Cross Functional Enterprise Cross Functional Enterprise Systems (CRM)Systems (CRM)
Cross Functional Enterprise Cross Functional Enterprise Systems (CRM)Systems (CRM)
Looking from the 4 phases of customer life cycle • Marketing :
– Marketing sends messages to prospect customers, attracting them to buy
• Customer Acquisition :– Selling and buying takes place
• Relationship management :– When prospect customers made order, they become customers who
need to be supported– Supporting and reselling
• Loss/Churn :– Analyze and Categorize customer, win back high value customer
Kroenke, D,M. (2010)Experiencing MIS, 2nd EditionPearson
Cross Functional Enterprise Cross Functional Enterprise Systems (CRM)Systems (CRM)
Benefits of CRM• Identify and target the best customers• Real-time customization and personalization of products
and services• Track when and how a customer contacts the company• Provide a consistent customer experience
Business benefits of CRM are not guaranteed50 percent of CRM projects did not produce promised results20 percent damaged customer relationships
Reasons for CRM failure•Lack of understanding and preparation•Not solving business process problems first•No participation on part of business stakeholders involved
Cross Functional Enterprise Cross Functional Enterprise Systems (CRM)Systems (CRM)
What is Supply Chain?A supply chain is a system of organizations, people, activities,
information, and resources involved in moving a product or service from supplier to customer.
Supply chain activities transform natural resources, raw materials, and components into a finished product that is delivered to the end customer.
Wikipedia.com
Comprises of all the businesses and individual contributors involved in creating a product from raw materials to finished merchandise
Cross Functional Enterprise Cross Functional Enterprise Systems (SCM)Systems (SCM)
About.com
• Supply Chain Management (SCM)– Focuses on developing the most efficient and effective sourcing and
procurement processes– Fundamentally, supply chain management helps a company
• Get the right products• To the right place• At the right time• In the proper quantity• At an acceptable cost
– The goal of SCM is to efficiently forecast demand, control inventory, enhance relationships with customers, suppliers, distributors, and receive feedback on the status of every link in the supply chain
Cross Functional Enterprise Cross Functional Enterprise Systems (SCM)Systems (SCM)
– Key Challenges
• Lack of demand planning knowledge, tools, and guidelines
• Inaccurate data provided by other information systems
• Lack of collaboration among marketing, production, and inventory management
• SCM tools are immature, incomplete, and hard to implement
Cross Functional Enterprise Cross Functional Enterprise Systems (SCM)Systems (SCM)
• Enterprise Resource Planning (ERP)– A cross functional enterprise system that integrates the
primary value chain activities with human resources and accounting/infrastructure
– Allows an organization to use a system of integrated applications to manage the business
– Truly enterprise wide– Track customers, process orders, manage inventory, pay
employees, and other accounting functions– SAP and ORACLE are the major vendors
Cross Functional Enterprise Cross Functional Enterprise Systems (ERP)Systems (ERP)
Cross Functional Enterprise Cross Functional Enterprise Systems (ERP)Systems (ERP)
• ERP Characteristics– Provides cross-functional, process
view of organization– Maintains data in centralized
database– Offers large benefit but very
challenging to implement– VERY expensive
Scriptcase.net
Cross Functional Enterprise Cross Functional Enterprise Systems (ERP)Systems (ERP)
Typical Cost of Implementing a New ERP
• The biggest challenge of ERP is Costs and risks• Most common causes of ERP failure
– Under-estimating the complexity of planning, development, training
– Failure to involve affected employees in planning and development
– Trying to do too much too fast
– Insufficient training
– Insufficient data conversion and testing
– Over-reliance on ERP vendor or consultants
Cross Functional Enterprise Cross Functional Enterprise Systems (ERP)Systems (ERP)
Test your knowledgeTest your knowledge
• Describe Business Process Re-engineering• Describe enterprise systems.• Describe CRM• Describe SCM• Describe ERP
Learning OutcomesLearning Outcomes
At the end of this lesson, you should be able to:• Discuss Business Process Re-engineering• Describe Cross Functional Enterprise
Applications
Questions?Questions?