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THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions. The Global Web- Based Platform Business Pressures, Organizational Responses and IT Support. Why Are Information System Important to Me? The Plan of the Book CHAPTER 1 THE MODERN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT TECHNOLOGY AND INFORMATION SYSTEMS DDC 1583

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Page 1: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT•Business Processes and Business Process Management•Information system : Concept and Definitions.•The Global Web- Based Platform•Business Pressures, Organizational Responses and IT Support.•Why Are Information System Important to Me?•The Plan of the Book

CHAPTER 1THE MODERN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT

TECHNOLOGY AND INFORMATION SYSTEMS DDC 1583

Page 2: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

Business Processes & Business Process Management

• A business process is an ongoing collection of related activities that create a product or a service of value to the organization, its business partners and / or its customer.

•A process has inputs and outputs and its activities can be measured

•Many processes cross functional areas in an organization

BUSINESS PROCESSES

Example

Product development involves research, design, engineering, manufacturing, marketing and distribution

Page 3: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

Business Processes & Business Process Management

BUSINESS PROCESSES

Accounting Business Processes

•Managing accounts payable•Managing accounts receivable•Reconciling bank account•Managing cash receipts•Managing invoice billings•Managing petty cash•Producing month-end close•Producing virtual close

Financial Business Processes

•Managing account collection•Managing bank loan applications•Producing business forecasts•Applying customer credit approval and credit terms•Producing property tax assessments•Managing stock transactions•Generating financial cash flow reports

Marketing Business Processes

•Managing post-sale customer follow up•Collecting sales taxes•Applying copyrights and treatmarks•Using customer satisfaction surveys•Managing customer service•Handling customer complain•Handling returned goods from customer

Page 4: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

Business Processes & Business Process Management

BUSINESS PROCESSES

•Producing sales leads•Entering sales orders•Training sales personnel

Production / Operations management Business Processes

•Processing bills of materials•Processing manufacturing change orders•Managing master parts list and files•Managing packing, storage, and distribution•Processing physical inventory•Managing purchasing•Managing quality control for finished goods•Auditing for quality assurance•Receiving, inspecting, and stocking parts and materials•Handling shipping and freight claims•Handling vendor selection, files and inspections

Human Resources Business Processes

• Applying disability policies•Managing employee hiring•Handling employee orientation•Managing files and records•Applying healthcare benefits•Managing pay and payroll•Producing performance appraisals and salary adjustments•Managing resignations and terminations

Page 5: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

Business Processes & Business Process Management

BUSINESS PROCESSES

•Applying training / tuition reimbursement•Managing travel and entertainment•Managing workplace rules and guidelines•Overseeing workplace safety

Management Information System Business Processes

•Antivirus control•Computer security issues incident reporting•Training computer users•Computer user / staff training•Applying disaster recovery procedures•Applying electronic mail policy•Generating Internet use policy•Managing service agreements and emergency service•Applying user workstation standards•Managing the use of personal software.

EXAMPLES OF BUSINESS PROCESSES

Page 6: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

Business Processes & Business Process Management

BUSINESS PROCESSES

•Cross- Functional Processes - Cross Functional Processes meaning that no single functional area is responsible for their execution.

- Multiple functional area collaborate to perform the process.

- Each functional are must execute its specific process steps in a coordinated, collaborative way.

Page 7: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

Business Processes & Business Process Management

BUSINESS PROCESSES

•Cross- Functional Processes Procurement Process * includes all of the tasks involved in acquiring needed materials externally from vendor.

* Comprises 5 steps that are completed in three different functional areas of the firm: warehouse, purchasing and accounting.

1The warehouse documents this need with a purchase requisition, which it sends to the purchasing department

2In turn, the purchasing department identifies a suitable vendor, creates a purchase order based on the purchase requisition, and sends the order to the vendor

3When the vendor receives the purchase order, it ships the materials, which are received in the warehouse

4The vendor then send an invoice which is received by the accounting department

5Accounting sends payment to the vendor, thereby completing the procurement process

Page 8: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

Business Processes & Business Process Management

BUSINESS PROCESSES

•Cross- Functional Processes Fulfillment Process * is concerned with efficiently processing Customer Order.

* is triggered by a Customer Purchase Order that is received by the sales department.

* Sales then validates the purchase order and creates a sales order.

* The sales order communicate date related to the order functional areas within the organization, and it tracks the progress of the offer.

* The warehouse prepares and sends the shipment to the customer.

* The customer then makes a payment, which account records.

Page 9: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

Business Processes & Business Process Management

BUSINESS PROCESSES

An organization’s business process can create a competitive advantage if they Enable the company less responsive and efficient.

Example

Illustrates the e- ticket purchasing business process

Page 10: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

Excellence in executing business processes is widely recognized as the underlying basic for all significant measures of competitive performance in an organization.

Consider these measures, for example:-

BUSINESS PROCESS MANAGEMENT

Customer satisfaction

The result of optimizing and aligning business process to fulfill customers needs, wants, and desires

Cost reduction The result of optimizing operations and supplier process

Cycle and fulfillment time

The result of optimizing the manufacturing and logistics processes

Quality The result of optimizing the design, development and production process

Differentiation The result of optimizing the marketing and innovation processes

Productivity The result of optimizing each individual’s work processes

Page 11: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

BUSINESS PROCESS MANAGEMENT

•Business Process Management (BPM) is a management technique that includes:-•Methods•Tools

•Helps companies improve profitability by decreasing costs and increasing revenues.

•Over time BPM can create a competitive advantage by improving organizational flexibility.

•BPM can provide cost benefits and increase customer satifaction

To support the design, analysis, implementation, management and optimization of business process

Page 12: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

INFORMATION SYSTEM: Concepts & DefinitionsDATA, INFORMATION AND KNOWLEADGE

Data items refer to an elementary description of things, events, activities, and transactions that are recorded, classified, and stored but not organized to convey meaning

Information refers to data that have been organized so that they have meaning and value to the recipient

Knowledge consists of data and/or information that have been organized and processed to convey understanding, experience, accumulated learning, and expertise as they apply to a current business problem

DATA

Binary code, the foundation of information and knowledge, is the key to making complexdecision

INFORMATION

KNOWLEDGE

Page 13: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

INFORMATION SYSTEM: Concepts & DefinitionsINFORMATION TECHNOLOGY ARCHITECTURE

An organization’s information technology architecture is a high-level map or plan of the information assets in an organization

Page 14: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

INFORMATION SYSTEM: Concepts & DefinitionsINFORMATION TECHNOLOGY INFRASTRUCTURE

An organization’s information technology infrastructure consists of the physical facilities, IT components, IT services, and IT personnel that support the entire organization

Modern organizations operate within a global, Web-based platform, which is discussed next.

proceduresprocedures

proceduresproc

edur

esSOFTWARE

HARDWARE

DATABASE

NETWORK

It takes technology (hardware, software, databases and network) withappropriate procedures to make a CBOS useful for people

Page 15: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

THE GLOBAL WEB-BASED PLATFORM

• The global, Web-based platform that has recently emerged spans the world and is best represented by the Internet and the functionality of the World Wide Web

• The platform enables individuals to connect, compute, communicate, collaborate, and compete anywhere and at any time.

• One of the biggest impacts this platform has had is the creation of new globalization opportunities.

• The three stages of globalization: Globalization 1.0 (1492 to 1800) – countries Globalization 2.0 (1800 to 2000) – multinational companies Globalization 3.0 (2000 and beyond) – groups and individuals

Page 16: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES AND IT SUPPORT

What external business pressures create threats and opportunities for today’s businesses?

How have organizations responded to these pressures? How does IT support these organizational responses?

Page 17: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions
Page 18: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

Global economy and strong competition NAFTA, EU, etc. Rise of India and China Global labor costs

Need for real-time operations The online marketplace never closes and up-to-the-minute information is

required for organizational decision making The changing nature of the workforce

The workforce is becoming more diverse and includes increasing numbers of women, single parents, minorities, and persons with disabilities

Powerful customers Customers have access to vast amounts of information and have access

to a large number of retailers and service providers

Business Pressures: Market

BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES AND IT SUPPORTBUSINESS PRESSURES

Page 19: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES AND IT SUPPORT

Business Pressures: Technology Technological innovation and obsolescence

New technologies are constantly being developed These new technologies must be considered when creating new

innovative products, services, and processes Old technology rapidly becomes obsolete

Information overload The amount of information collected, stored, and made accessible to

organizations and individuals continues to grow Without proper IT tools, the information flood can be overwhelming IT’s such as search engines and data mining tools provide support for

incorporating this vast amount of information into real-time organizational decision making

BUSINESS PRESSURES

Page 20: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES AND IT SUPPORT

Business Pressures: Societal/Political/Legal Social responsibility

Responsibility not only to traditional organizational stakeholders, but also society as a whole

Compliance with government regulations and deregulation Protection against terrorist attacks Ethical issues

Ethics relates to general standards of right and wrong Information ethics relates specifically to standards of right and wrong in

information-processing practices (or other online activities)

BUSINESS PRESSURES

Page 21: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES AND IT SUPPORT

ORGANIZATIONAL RESPONSES

Strategic systems Customer focus and service (CRM), self-service Continuous improvement and business process reengineering Make-to-order and mass customization Better data management Business alliances E-business and e-commerce

Page 22: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES AND IT SUPPORT

IT SUPPORT FOR ORGANIZATION RESPONSES

IT support for business activities has evolved quite dramatically from the 1950s through today

This topic is discussed in more detail in the following chapter

Page 23: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

Example: Grocery Store Checkout

Old Process New Process

In the “old-old” economy, when you visited retail stores you placed your items in a shopping cart and proceeded to checkout

The clerk manually entered the price for each item and you paid for them in cash

The store gathered no information about the transaction other than receiving payment

In the new economy you take your items to a self-service kiosk where you swipe the barcode for each item over a reader and then pay by cash, credit card or debit card

In the coming generation of checkout technology all items with have wireless RFID tags allowing you to simply walk your cart through a device to total up the price and make payment

Page 24: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

Example: Photography

Old Process New Process

You buy film at the store, insert it into your camera, and take pictures

Once you complete the film, sometimes weeks or months after you began the roll, you take it to the store (or mail it) for processing

Go back to the store and pay for enlargements and duplications

Send photos by mail to family and friends

Video requires a second, different, camera

Use a digital camera that can also take videos

No film is needed, and no processing is required

You can see the results immediately and enlarge and print photos quickly

In minutes you can electronically send the pictures to your family and friends

You can view the pictures on personal computers, personal digital assistants (PDAs), and other digital devices

Page 25: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

WHY ARE INFORMATION SYSTEM IMPORTANT TO ME?

Information systems are important to you for a variety of reasons:- •First, information systems and information technologies are integral to your life.• Second, the IS field offers many career opportunities. •Finally, all functional areas in an organization utilize information systems.

INFORMATION SYSTEM AND INFORMATION TECHNOLOGY ARE INTEGRAL TO YOUR LIVES

There are many examples of the ways in which information systems and technologies are embedded in your lives. For example, thinks of all you can do online:

• Register for classes • Take classes, and not just classes from your university  • Access class syllabi, information, PowerPoints, and lectures • Research class papers and presentations • Conduct banking • Pay your bills • Research, shop, and buy products from companies or other people • Sell your “stuff”•

Page 26: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

WHY ARE INFORMATION SYSTEM IMPORTANT TO ME?

INFORMATION SYSTEM AND INFORMATION TECHNOLOGY ARE INTEGRAL TO YOUR LIVES

• Search for, and apply for, jobs• Make your travel reservations (hotel, airline, rental car)

In addition to all the activities you can perform online, there are other examples of how information systems and information technologies are essential to your daily living.

For example: you may not use a regular wire line telephone. Rather, you use a smart phone that has a calendar, an address

Page 27: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

WHY ARE INFORMATION SYSTEM IMPORTANT TO ME?

IT OFFERS CAREER OPPORTUNITIES

-Because information technology is vital to the operation of modern businesses, it offers many employment opportunities.

-The demand for traditional IT staff- programmers, business analysts, system analyst and designers.

-The information system field includes the people in organizations who design and build information systems, the people who use those systems, and the people responsible for managing those systems.

Page 28: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions
Page 29: THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT Business Processes and Business Process Management Information system : Concept and Definitions

WHY ARE INFORMATION SYSTEM IMPORTANT TO ME?

MANAGING INFORMATION RESOUCES

-Managing Information System in modern organizations is difficult, complex task.

-Information Systems have enormous strategic value to organizations.

-Information Systems are very expensive to acquire, operate and maintain.

-Factor contributing to the difficulty in managing information systems is the evolution of the management systems (MIS) function within the organization.