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Chapter 5 The Enabling role of Information Technology

Bpr & IT

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Chapter 5

The Enabling role of Information Technology

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Functional Information System

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Introduction : FIS supports the organization, processes

and business model

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Characteristic of FIS : Composed of smaller systemIntegrated or independent Interfacing Supportive of different level

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Types of FIS Marketing and sales information system Production and material management

information systemAccounting and finance information system Human resource management information

system

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Marketing and sales information system

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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

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Production and material management information system

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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

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Accounting and finance information system

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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

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Human resource management information system

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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

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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

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The Enabling role of Information TechnologyIt is critical that managers and executives

begin to think inductively; most only know how to think deductively

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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.

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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.