MIS structure of digital firm

• Term E-business was coined to convey use of internet and IT in key resource management processes and to transact the business with customers, suppliers business partners

• With advancement of internet, web communication, network and information technology , business process management crossed the boundaries of the organization and embraced every aspect of business making , making all its operations Digital

• All processes included in supply chain are digital nature. It starts from taking order from customer, scheduling the production, sourcing raw material, dispatching goods and taking feedback from customer. Thus it covers ERP, SCM, CRM

• The nature is real time actionable information or just in time actionable information

ERP,SCM,CRM

Data warehousing and mining

Knowledge management system

Executive Information

Dash Board

Basic data and information capturing and transaction processing system

MIS model of digital firm

ERP,SCM,CRM

Periodical reporting system

Exception reporting system

Data warehousing and mining

EIS

Basic data and information capturing and transaction processing system

IS structure of conventional Design of MIS

New organisational structure

• Traditional organization that has been developed before the

information technology era is characterized by clear division of labor leading to inflexibility in terms of responding to need for change and reorganization. Organizations change continuously in the way they do things or in products and services they offer.

• Conventional organization in the information age may be less competitive than the new entrants to the market in global economy because it may be slow to respond to potentials for new markets, the need to develop new products and services, reconfigure business processes for better efficiency and more effective customer management.

• Traditional organization has a rigid hierarchical structure. Pyramid shape of the organization demonstrates many levels of middle management. In order to compete, many of these types of company have had to downsize, reducing the number of employees and the management layers.

• These changes have to be accompanied by other developments such as a shift in working culture and enabling the employees to take advantage of opportunities for personal growth or to allow them to manage themselves. This though has not always been the case.

• The hierarchical structure of the organization does not disappear and it persists with the contemporary firm. In digital firm, the level of hierarchy is greatly reduced leading to flatter hierarchical organization. In designing a digital firm we endeavor to optimize the level of hierarchy to achieve balanced distribution of power among the various layers.

• Delegation of decision making and distribution of power is extended to the lower layers of the organization and lower level employees are given greater powers to manage themselves and more authority to make decisions than in the past.

• A shift in culture takes place where employees are no longer required to work specified hours. Employees become outcome driven and their performance is measured against requirements and achievements as oppose to presence. Employees are much more likely to work flexible hours through the use of information technology. Working from home becomes more fashionable through provision of information and opening access to internal organisational infrastructure.

Benefits/differences over traditional/conventional structure

• Flat structure• Separation of work and workplace• Paperless• Low overheads due to lean organization• Flexible /agile organization