Information System & BPR

8/3/2019 Information System & BPR

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(MBAIII SEM)

MANAGEMENT INFORMATIONSYSTEM

Manav

RachnaCollegeofEngg.


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Information System


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What is an Information System

Interrelated components working together to collect,process,store andDisseminate information to support decision making,coordination,control,Analysis and visualization in an organization.


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What is an Information System

Interrelated components working together to collect,process,store andDisseminate information to support decision making,coordination,control,Analysis and visualization in an organization.


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An information system differs from other kinds of systems inthat its objective is to monitor/document the operations ofsome other system, which we can call a target system. Aninformation system cannot exist without such a target system.Example?

Every reactive system will have a subsystem that can beconsidered an information system .


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Business Perspective on Information Systems

Information System BusinessSolution


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Components of an IS Data - Input that the system takes to produce information .

Hardware - Computer itself and its peripheral equipment: input, output, storagedevices; includes data communication equipment

Software - Sets of instructions that tell the computer how to input, process, outputand store data .

Communication networks - Hardware and software specializing in transmissionand reception of electronic data

People - IS professionals and users who design, construct, operate and maintainIS

Procedures - Rules to process data, e.g. priorities in running differentapplications, security measures, routines for malfunctioning IS, etc.


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Information System Resources

People Resources

o End users

o IS specialists

Hardware Resources

o Machines

o Media Software Resources

o Program

Operating Systems (OS)

Examples: Windows, Unix, etc.

Application Software Examples: Excel, Access, MS-Word, etc.


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Procedures:

Operating instructions for the people who will use an informationsystem.

Examples: Instructions for filling out a paper form or using asoftware package.

Data Resources:

Data vs. Information

Network Resources: o Communications media

o Communications processors

o Network access & control software


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Why Information Systems?

The Competitive Business Environment

Emergence of the Global Economy .

Transformation of Industrial Economies

. Transformation of the Business

Enterprise .


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Globalization:

Management and control in global market place.

Competition in world market.

Global work group.

Global delivery system.

Transformation of industrial economies.

Knowledge and information based economies.

Productivity. Time based competition.

Shorter product life.

Environment turbulent.


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Transformation of the Enterprise.

Flattening.

Decentralization

Flexibility Location Independence.

Collaborative and teamwork.


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Individual Level Managers and InformationSystems

Managers must use IS to:

access information

interpret information

incorporate information in decision making

Managers must exploit IS because of:

rapid changes in technology

intense international competition

faster product life cycles

more complex and specialised markets

Managers:

are responsible for investments in IS

need to be proactive and selective

must understand how IS are used in the functional areas of business.


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The New Role of Information Systems in Organizations


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The Network Revolution and the Internet Internet as a whole hasexisted since 1969 .

New Options for Organizational Design: The Networked Enterprise .

Think of Daimler from Germany and Chrysler in Michigan. Virtual organizations. XYZ and ABC companies can team up, work on a

project, and then go their separate ways.

Enterprise Resource Planning .

Electronic markets E.g.: Amazon. COM, the largest retailer on theInternet selling books and CDs .


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An information system differs from other kinds of systems inthat its objective is to monitor/document the operations ofsome other system, which we can call a target system. Aninformation system cannot exist without such a target system.Example?

Every reactive system will have a subsystem that can beconsidered an information system .


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Business Perspective on Information Systems

Information System BusinessSolution


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Components of an IS Data - Input that the system takes to produce information .

Hardware - Computer itself and its peripheral equipment: input, output, storagedevices; includes data communication equipment

Software - Sets of instructions that tell the computer how to input, process, outputand store data .

Communication networks - Hardware and software specializing in transmissionand reception of electronic data

People - IS professionals and users who design, construct, operate and maintainIS

Procedures - Rules to process data, e.g. priorities in running differentapplications, security measures, routines for malfunctioning IS, etc.


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Information System Resources

People Resources

o End users

o IS specialists

Hardware Resources

o Machines

o Media Software Resources

o Program

Operating Systems (OS)

Examples: Windows, Unix, etc.

Application Software

Examples: Excel, Access, MS-Word, etc.


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Procedures:

Operating instructions for the people who will use an informationsystem.

Examples: Instructions for filling out a paper form or using asoftware package.

Data Resources:

Data vs. Information

Network Resources:

o Communications media

o Communications processors

o Network access & control software


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Why Information Systems?

The Competitive Business Environment

Emergence of the Global Economy .

Transformation of Industrial Economies

. Transformation of the Business

Enterprise .


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Globalization:

Management and control in global market place.

Competition in world market.

Global work group.

Global delivery system.

Transformation of industrial economies.

Knowledge and information based economies.

Productivity. Time based competition.

Shorter product life.

Environment turbulent.


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Transformation of the Enterprise.

Flattening.

Decentralization

Flexibility Location Independence.

Collaborative and teamwork.


24/43

Individual Level Managers and InformationSystems

Managers must use IS to:

access information

interpret information

incorporate information in decision making

Managers must exploit IS because of:

rapid changes in technology

intense international competition

faster product life cycles

more complex and specialised markets

Managers:

are responsible for investments in IS

need to be proactive and selective

must understand how IS are used in the functional areas of business.


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The New Role of Information Systems in Organizations


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The Network Revolution and the Internet Internet as a whole hasexisted since 1969 .

New Options for Organizational Design: The Networked Enterprise

. Think of Daimler from Germany and Chrysler in Michigan. Virtual organizations. XYZ and ABC companies can team up, work

on a project, and then go their separate ways.

Enterprise Resource Planning .

Electronic markets E.g.:Amazon. COM, the largest retailer on

the Internet selling books and CDs .


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SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE

Systems Development and Organizational Change

Four Kinds of Structural Change:

Automation: Mechanizing procedures to speed upthe performance of existing tasks .eg calculatingpaychecks, instant access to customer deposits.airline reservation.

Rationalization of procedures: The streamlining ofstandard operating procedures


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Business process reengineering: Analysis andredesign of business processes to reorganize

workflows and reduce waste and repetitive

tasks

Paradigm shift: Radical reconceptualization of

the nature of the business and the nature of the

organization

Systems Development and Organizational Change )

Four Kinds of Structural Change: (Continued)


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Business process reengineering: Analysis andredesign of business processes to reorganize

workflows and reduce waste and repetitive

tasks

Paradigm shift: Radical reconceptualization of

the nature of the business and the nature of the

organization

Systems Development and Organizational Change )

Four Kinds of Structural Change: (Continued)


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Organizational Change Carries Risks and Rewards

Figure 14-3


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BUSINESS PROCESS REENGNEERING AND PROCESS IMPROVEMENT

Business Process Reengineering

Workflow management:

The process of streamlining business procedures so

that documents can be moved easily and efficiently

from one location to another

Leading mortgage banks reduced time to obtain a

mortgage from 6-8 weeks to one week, by radically

changing the workflow and document managementprocedures


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BUSINESS PROCESS REENGINEERING AND PROCESS IMPROVEMENT

Steps to effective reengineering:

Understanding which processes need improvement

Measuring performance of existing processes as abaseline

Allowing IT to influence process design from thestart


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Redesigning Mortgage Processing in the United States


Figure 14-4


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Methodology and tools for revising the

organizations business processes enabling

continual improvements

Process Improvement: Business Process Management,Total Quality Management, and Six Sigma

Business Process Management (BPM):



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Workflow management

Business process modeling

Quality management

Change management

BPM and BPM software tools include:



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A concept that makes quality control a

responsibility to be shared by all people in an

organization

Focuses on a series of continuous improvements

rather than large change

Process Improvement: Total Quality Managementand Six Sigma

Total Quality Management (TQM):Edward Deming & joseph juran



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Aspecific measure of quality, representing 3.4

defects per million opportunities

Designates a set of methodologies and techniquesfor improving quality and reducing costs

Uses statistical analysis to detect process flawsand make minor adjustments

Six Sigma:

Total Quality Management and Six Sigma


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Setting strict standards for products, services,

or activities and measuring organizational

performance against those standards

Benchmarking:



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Information System Support Quality improvement

Use customer demands as a guide to improving productsand services:

Simplifying the product or the production Process:

Benchmarking: Reduce Cycle Time. Errors caught earlier in production.

Improve quality and precision of the design: CAD/Cam,sofware.

Increase the precision of production.


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Workflow management

Business process modeling

Quality management

Change management

BPM and BPM software tools include:



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A concept that makes quality control a

responsibility to be shared by all people in an

organization

Focuses on a series of continuous improvements

rather than large change

Process Improvement: Total Quality Managementand Six Sigma

Total Quality Management (TQM):Edward Deming & joseph juran



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Aspecific measure of quality, representing 3.4

defects per million opportunities

Designates a set of methodologies and techniquesfor improving quality and reducing costs

Uses statistical analysis to detect process flawsand make minor adjustments

Six Sigma:

Total Quality Management and Six Sigma


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Setting strict standards for products, services,

or activities and measuring organizational

performance against those standards

Benchmarking:


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