CORPORATE INFORMATION SYSTEMS (CIS) Business Perspectives of CIS. Technical Perspectives of CIS. Implementational Perspectives of CIS

Transcription

1 Meltem Özturan misprivate.boun.edu.tr/ozturan/mis301 1 CORPORATE INFORMATION SYSTEMS (CIS) Fundamentals of CIS Business Perspectives of CIS Technical Perspectives of CIS Implementational Perspectives of CIS 2 1

2 What is CIS? A corporate (an enterprise) information system [CIS (EIS)] is an information system which improves the business functions of an organization by integrating the business processes of the enterprise systems where all of those systems access and update the same data source using information technology infrastructure. 3 Information System (IS) An information system (IS) is an arrangement of people, data, processes, communications and information technology that interact to support and improve day-to-day operations in a business, as well as support the problem-solving and decision-making needs of management and users

3 IS: Major Types of Information Systems Transaction Processing Systems (TPS) Management Information Systems (MIS) Decision Support Systems (DSS) Executive Support Systems (ESS) 5 IS: Transaction Processing Systems (TPS) A computerized system that performs and records the daily routine transactions necessary to the conduct of the business 6 3

4 IS: Management Information Systems (MIS) A computerized system that summarizes and reports on the company s basic operations using data supplied by transaction processing systems. 7 IS: Decision Support Systems (DSS) A computerized system that combines data and sophisticated analytical models or data analysis tools to support semistructured and unstructured decision making

5 IS: Executive Support Systems (ESS) A computerized system that address unstructured decision making through advanced graphics and communications. 9 IS: Relationship of ISs In contemporary digital firms, the different types of information systems are closely linked to one another, but in traditional firms these systems tend to be isolated from one another, therefore efficiency and business value tend to suffer greatly in these traditional firms

6 Business Functions (BFs) «Business» is the continuous production and distribution of goods and services with the aim of earning profits under uncertain market conditions. «Function» is an action performed by a device, department, or person that produces a result. «Business Functions» are activities carried out by an enterprise that are performed routinely to carry out a part of the mission of an organization. «Business Function» is a description of work that is performed to accomplish a business unit's responsibility within an organization. 11 BFs: Types of Business Functions Core Business Functions are activities of an enterprise yielding income: the production of final goods or services intended for the market or for third parties. Usually the core business functions make up the primary activity of the enterprise, but they may also include other (secondary) activities if the enterprise considers these as part of its core functions (Manufacturing, Maintenance, etc.) Support Business Functions are ancillary (supporting) activities carried out by the enterprise in order to permit or to facilitate the core business functions, its production activity. The outputs (results) of support business functions are not themselves intended directly for the market or for third parties (R&D, ICT, etc.) 12 6

7 BFs: Major Business Functions 13 Business Organization (BO) An organization is a collection of people working together in a structured, process focused and controlled manner based on its cultural aspects to achieve its goal(s). To achieve its goal(s) a firm must accomplish consistency between the various components of its architecture

8 BO: Organization Architecture Components Structure: Hierarchical arrangement of lines of authority, communications, rights and duties of an organization. Controls: Metrics used to measure performance of subunits and judge managerial performance. Processes: Manner in which decisions are made and work is performed. Culture: Values and norms shared among employees of an organization People: Employees hired to provide services to a company on a regular basis in exchange for compensation 15 Integration (Int.) Integration is defined as the process of bringing together the component subsystems into one system and ensuring that the subsystems function together as a system. Systems Integration in Information Technology, is the process of linking together different computing systems and software applications physically or functionally, to act as a coordinated whole utilizing a variety of techniques such as computer networking, enterprise application integration, business process management or manual programming. 16 8

9 Int.: Dimensions of Designing an Integrated Information System Strategic Connectivity: Organizations should incorporate connectivity through their electronic channels in order to disseminate information and knowledge. Physical Connectivity: In order to adopt distributed client server architecture, advances and standards in operating systems, databases, network and communication technologies should be considered. Logical Connectivity: In order to avoid data redundancy and to provide consistency between databases, logical connectivity should be provided using various methods. Organizational Connectivity: Organizational connectivity can be pursued by considering the inter-dependency among strtegic concerns, organizational culture and technology. 17 Business Processes (BPs) A business process is a sequence of activites that converts a set of inputs in the form of raw materials, energy and knowledge into a set of outputs in the form of goods and services. A business process is a set of activites with logical interdependencies, performed to create a set of valuable output by using the resources of the company and serve them to internal and external customers. 18 9

10 BPs: Basic Properties of a BP Existence of a trigger condition Existence of internal and external customers Existence of a responsible person with sufficient authority Repeatability Measurability Structural independence 19 BPs: Business Process Classifications Classification 1 Processes for external customers Processing of activities to produce an output for the external customers in the market Processes for internal customers Processing of activites to produce an output required by the departments and executives within the organization so as to achieve the organizational goals and efficient processing Classification 2 Basic Processes Processes that start due to an external customer request. Managerial Processes Processes that take place to fulfill the organizational goals such as setting targets, screening the performance measures, preparing reports for the executives, etc. Support Processes Processes that take place to support an ongoing basic process such as stock replenishment processes, cleaning and maintenance processes

11 BPs: Business Process Hierarchy Basic processes of business processes can be divided into managable subgroups to form sub processes, sub-sub processes and activities in an hierarchy. An activity is the smallest component of a process that can not be further divided into sub processes BPs: Business Processes Modeling Business process modeling, often called process modeling, is the analytical representation or illustration of an organization's business processes

12 BPs: Business Processes Management Business process management is the discipline of managing processes as the means for improving business performance outcomes and operational agility consisting of 5 phases: design, modeling, execution, monitoring and optimization Enterprise Systems (ESs) A system that integrates work processes and information across departments and functions in an organization to support enterprise-wide or cross-functional requirements

13 ESs: Business Value of Enterprise Systems A more uniform organization: ES supports organizational structures that were not previously possible or creation of a more disciplined organizational culture More efficient operations & customer-driven business processes: By integrating discrete business processes in sales, production, finance, and logistics, the entire organization respond to customer requests more efficiently Firmwide information for improved decision making: The data have common, standardized definitions and formats that are accepted by the entire organization and this helps to evaluate overall organizational performance. 25 Information Technology Infrastructure (ITI) ITT consists of the equipments, systems, software, and services used in common across an organization, regardless of mission/program/project and can be used for internal business operations or developing customer IT or business solutions

14 ITI: Components of ITI Hardware: Servers, computers, data centers, switches, hubs, routers, etc. Software: Application software, system software, communications software Data Management: Organizes, manages & processes business data concerned with inventory, customers, and vendors Networking: Provide data, voice, & video connectivity to employees, customers, & suppliers Services: Consulting services & systems integrators 27 Benefits of CIS (CIS-Benefits) Facilitates the attainment of organizational objectives Facilitates access to information Allows the user to be more productive Increases the quality of decision making Provides a competitive advantage Saves time for the user Increases communication capacity and quality Provides better control in the organization Allows the anticipation of problems and anticipation Allows planning Allows a search for the cause of a problem Meets the needs of executives 28 14

15 CIS-Benefits: Improvement in Performance Indicators Reduction of Lead-Time On-time Shipment Reduction in Cycle Time Improved Resource Utilization Better Customer Satisfaction Improved Supplier Performance Increased Flexibility Reduced Quality Costs Improved Information Accuracy and Design-making Capability 29 CIS-Benefits: Tangible Benefits Inventory reduction 32% Personnel reduction 27% Productivity improvements 26% Other management improvements 20% Financial close cycle reduction 19% IT cost reduction 14% Procurement cost reduction 12% Cash management improvements 11% Revenue/Profit increases 11% Transpotation/Logistics cost reduction 9% Manitenance reductions 7% On time delivery improvements 6% 30 15

16 CIS-Benefits: Intangible Benefits Information visibillity 55% New improved process 24% Customer responsiveness 22% Cost reduction 14% Integration 13% Standardization 12% Flexibility 9% Globilazition 9% Technology 8% Business performance 7% Supply demand chain 5% 31 Risks of CIS (CIS-Risks) 32 16

17 CIS-Risks: People Issues Change management Internal staff insufficiency Program team Training Employee relocation and retraining Staffing (includes turnover) Top management support Consultants Discipline Resistance to change 33 CIS-Risks: Process Issues Program management Business process reengineering Stage transition Benefit realization 34 17

18 CIS-Risks: Technology Issues Software functionality Technological obsolescence Application portfolio management Enhancement and upgrades 35 Critical Success Factors for CIS (CIS-CSFs) Top management commitment and support Business process reengineering Use of project management to manage implementation Change management culture and program Clear goals, focus and scope (business plan and vision) Selecting the right team (competence) Avoidance customization Project champion User training and education Effective communication Use of consultants 36 18

19 Critical Success Factors for CIS (CIS-CSFs) Vendor package selection User participation Technical and business knowledge Integration of the system Appropriate management expectation Appropriate business and IT legacy systems Software development, testing and troubleshooting Vendor partnership Use of vendors development tools Monitoring and evaluation of performance Management structure Interdepartmental cooperation and communication 37 CourseWork Give example for each type of information systems for the following enterprises: - Railway Company - A Cleaning Supplies Retailer 38 19