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Chapter 5
The Enabling role of Information Technology
Functional Information System
Introduction : FIS supports the organization, processes
and business model
Characteristic of FIS : Composed of smaller systemIntegrated or independent Interfacing Supportive of different level
Types of FIS Marketing and sales information system Production and material management
information systemAccounting and finance information system Human resource management information
system
Marketing and sales information system
Production /material mgt
Cost/profit analysis
customer
Marketing / sales Human resource
Accounting/finance
Sales order data
Order status
Sales orders
Hiring needs and Personnel information
Legal requirement &
Job information
Product availability data and order status
Sales forecast & sales order
Production and material management information system
Production /material mgt
Sales forecast and Sales order
supplier
Marketing / sales
Human resourceAccounting/ finance
Product availability data & order status
Order For new material Raw material
availability
Hiring needs and Personnel information
Legal requirement &
Job information
Sales data and Manufacturing Cost analysis
Production plan, material and inventory
Accounting and finance information system
Production /material mgt
Sales order data
customer
Marketing / sales
Human resourceAccounting/ finance
Cost / profit analysis
Invoice andCredit memo Payment
Hiring needs and Personnel information
Legal requirement & Job information/ payroll/ and benefit
expense data
Production plan,Material and
Inventory data
Sale data and manufacturingCost analysis
Human resource management information system
Production /material mgt
Marketing / sales
Human resource
Accounting/ finance
payroll and benefit/Expense data , legalRequirement and Job information
Hiring needs and Personnel information
Legal requirement &
Job information
Hiring needs and Personnel information
Legal requirement &
Job information
Hiring needs and Personnel information
The Enabling role of Information TechnologyCompany that equates technology with
automation cannot reengineerIT must be used properly, though. Not
using IT correctly Misuse of technology can block
reengineering altogether by reinforcing old ways of thinking and old behavior patterns
The Enabling role of Information TechnologyIt is critical that managers and executives
begin to think inductively; most only know how to think deductively
Inductive vs. Deductive Thinking Inductive Thinking ability to first recognize a
powerful solution and then seek the problems it might solve
Thinking inductively will allow major, not just marginal, improvements
It will allow companies to respond better to customer needs
Many of these needs are ones that customers are not currently aware of !
Deductive Thinking defining problem (s), then
seeking and evaluating different solutions to it.
Disruptive TechnologyA disruptive technology or disruptive
innovation is an innovation that helps create a new market and value network, and eventually goes on to disturb an existing market and value network (over a few years or decades), displacing an earlier technology.
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