information systems in the enterp
TRANSCRIPT
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Information
Systems in the
Enterprise
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Management Information SystemsChapter 2 Information Systems in the Enterprise
Traditional View of Systems
Figure 2-14
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
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Management Information SystemsChapter 2 Information Systems in the Enterprise
Systems for Enterprise-Wide Process Integration
Enterprise applications:
Designed to support organization-wide processcoordination and integration
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
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Consist of :
Enterprise systems
Supply chain management systems
Customer relationship management systems
Knowledge management systems
Management Information SystemsChapter 2 Information Systems in the Enterprise
Systems for Enterprise-Wide Process Integration
(Continued)
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
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Management Information SystemsChapter 2 Information Systems in the Enterprise
Enterprise Systems
Enterprise systems, also known as enterprise
resource planning (ERP) systems, provide a
single information system for organization-widecoordination and integration of key business
processes.
Information that was previously fragmented indifferent systems can seamlessly flow throughout
the firm so that it can be shared by business
processes in manufacturing, accounting, human
resources, and other areas.
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
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Management Information SystemsChapter 2 Information Systems in the Enterprise
Enterprise Systems
Figure 2-15
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
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Management Information SystemsChapter 2 Information Systems in the Enterprise
Benefits of Enterprise Systems
Help to unify the firms structure and
organization: One organization
Management: Firm wide knowledge-based
management processes
Technology: Unified platform
Business: More efficient operations & customer-
driven business processes
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
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Management Information SystemsChapter 2 Information Systems in the Enterprise
Challenges of Enterprise Systems
Difficult to build: Require fundamental changes in
the way the business operates
Technology: Require complex pieces of software
and large investments of time, money, and
expertise
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Management Information SystemsChapter 2 Information Systems in the Enterprise
Supply Chain Management (SCM)
Close linkage and coordination of activitiesinvolved in buying, making, and moving aproduct
Integrates supplier, manufacturer, distributor, andcustomer logistics
Reduces time, redundant effort, and inventorycosts
Network of organizations and business
processes
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Management Information SystemsChapter 2 Information Systems in the Enterprise
Helps in procurement of materials,
transformation of raw materials into intermediate
and finished products
Helps in distribution of the finished products to
customers
Supply Chain Management (SCM)
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
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Management Information SystemsChapter 2 Information Systems in the Enterprise
Information from Supply Chain Management
Systems helps firms:
Decide when and what to produce, store,
and move
Rapidly communicate orders
Track the status of orders
Check inventory availability and monitor
inventory levels
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Management Information SystemsChapter 2 Information Systems in the Enterprise
Information from Supply Chain Management
Systems helps firms: (Continued)
Reduce inventory, transportation, and
warehousing costs
Track shipments
Plan production based on actual customer
demand
Rapidly communicate changes in product design
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
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Management Information SystemsChapter 2 Information Systems in the Enterprise
Customer Relationship Management (CRM)
Manages all ways used by firms to deal with
existing and potential new customers
Business and technology discipline
Uses information system to coordinate entirebusiness processes of a firm
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Management Information SystemsChapter 2 Information Systems in the Enterprise
Customer Relationship Management (CRM)
(Continued)
Provides end- to- end customer care
Provides a unified view of customer across the
company
Consolidates customer data from multiple
sources and provides analytical tools for
answering questions
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Management Information SystemsChapter 2 Information Systems in the Enterprise
Customer Relationship Management (CRM)
Figure 2-17
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
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Management Information SystemsChapter 2 Information Systems in the Enterprise
Knowledge Management Systems
Collects relevant knowledge and make it available
wherever and whenever it is needed
Support business processes and management
decisions
Also link the firm to external sources of
knowledge
Support processes for acquiring, storing,
distributing, and applying knowledge
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
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Management Information SystemsChapter 2 Information Systems in the Enterprise
Enterprise Application Architecture
Figure 2-13
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
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Management Information SystemsChapter 2 Information Systems in the Enterprise
There are extraordinary opportunities to useinformation systems to achieve business value,
and increase profitability
MANAGEMENT OPPORTUNITIES, CHALLENGES, AND
SOLUTIONS
Management Opportunities:
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Management Information SystemsChapter 2 Information Systems in the Enterprise
Integration and the whole firm view: Given the
different interests and perspectives within a firm,
it is difficult to achieve consensus about the need
for the "whole firm" viewpoint.
Management and employee training: Training a
large number of employees on many systems in a
large organization involves commensurately large
investments.
MANAGEMENT OPPORTUNITIES, CHALLENGES, AND
SOLUTIONS
Management Challenges:
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Management Information SystemsChapter 2 Information Systems in the Enterprise
Accounting for the cost of systems and managingdemands for systems: Given the large number of
different types of systems in a firm, and the large
number of people involved with using them, it is
a complex task to understand which systems are
truly necessary and productive with high returns
on investment
MANAGEMENT OPPORTUNITIES, CHALLENGES, AND
SOLUTIONS
Management Challenges: (Continued)
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Management Information SystemsChapter 2 Information Systems in the Enterprise
MANAGEMENT OPPORTUNITIES, CHALLENGES, AND
SOLUTIONS
Solution Guidelines:
Inventory the firms information systems: Develop
a list of firm-wide information requirements to give
a 360-degree view of the most importantinformation needs of the firm.
Employee and management education: Ensure that
you understand how much training is required.
Account for the costs and benefits: Develop an
accounting system for information services firm-
wide.
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Business Environment Drives EB
M t I f ti S t
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ORGANIZATIONS AND INFORMATION SYSTEMS
Environments and Organizations Have a
Reciprocal Relationship
Figure 3-5
Management Information SystemsChapter 3
Information Systems, Organizations, Management, and Strategy
Management Information Systems
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INFORMATION SYSTEMS AND BUSINESS STRATEGY
In the larger environment, there are five main forces or
threats:
New market entrants
Substitute products and services
Suppliers bargaining power
Customers bargaining power
Other firms competing directly
Management Information SystemsChapter 3
Information Systems, Organizations, Management, and Strategy
Porters Five Forces Model
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Porters Competitive Forces
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Low cost leadership: Low operational cost and lowestprices. Walmart
Product differentiation: enable new products or services orgreatly change the customer
convenience. M-banking, atm, credit
card usage
Focus on Market niche: By finely tuned sales and marketingtechniques. The data may come from
various sources.
Strengthen the customer and supplier intimacy:Strong linkages with customers and
suppliers increase switching cost
Information System Strategies for dealing
with competitive forces:
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The major strategies used to compile user
profiles include the following:
Solicit information directly from the user
Observe what people are doing online
Build from previous purchase patterns
Make inferences
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Observing Customers transaction log
A record of user activities at a companys Web site
clickstream behavior
Customer movements on the Internet
cookie
A data file that is placed on a users hard drive by a remote Web
server, frequently without disclosure or the users consent, that
collects information about the users activities at a site
Web bugs
Tiny graphics files embedded in e-mail messages and in Web sites thattransmit information about users and their movements to a Web server
spyware
Software that gathers user information over an Internet connection withoutthe users knowledge
ISPs
H th I t t I fl I d t
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How the Internet Influences Industry
Structures
Increases as large no. of
customers at hand
Third party may be omitted
Again as many suppliers
may enter into bus.
Bargaining over suppliers
increases
Shifts bargaining power to
end customers
Reduces switching costThe proliferation of
Internet creates new
Substitution threats
Reduces need for sales force,physical assets, channels etc.
Difficult to keep proprietary
from new entrantsReduces differences among competitors
Migrates competition mainly on price
Widens geographic market, more
competitors