CORPORATE INFORMATION SYSTEMS (CIS) - boun.edu.trmisprivate.boun.edu.tr/ozturan/mis301/MIS301-1.pdf · CORPORATE INFORMATION SYSTEMS (CIS) •Fundamentals of CIS •Business Perspectives

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Meltem Özturan

misprivate.boun.edu.tr/ozturan/mis301

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CORPORATE INFORMATION SYSTEMS (CIS)

• Fundamentals of CIS

• Business Perspectives of CIS

• Technical Perspectives of CIS

• Implementational Perspectives of CIS

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CIS : Fundamentals of CIS

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.

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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.http://paginas.fe.up.pt/~als/mis10e/ch1/chpt1-2bullettext.htm

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IS: Major Types of Information Systems

• Transaction Processing Systems (TPS)

• Management Information Systems (MIS)

• Decision Support Systems (DSS)

• Executive Support Systems (ESS)

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IS: Transaction Processing Systems (TPS)

A computerized system that performs and records the daily

routine transactions necessary to the conduct of the business

http://uotechnology.edu.iq/ce/Lectures/SarmadFuad-MIS/MIS_Lecture_7.pdf

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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.

https://assignmentgroup4.wordpress.com/

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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.

http://www2.sta.uwi.edu/~anikov/info1500/lectures/02-iitf-lect-information-systems-and-business-processes.pdf

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IS: Executive Support Systems (ESS)

A computerized system that address unstructured decision

making through advanced graphics and communications.

http://paginas.fe.up.pt/~als/mis10e/ch2/chpt2-2bullettext.htm

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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

http://paginas.fe.up.pt/~als/mis10e/ch2/chpt2-2bullettext.htm

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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 ofthe mission of an organization.«Business Function» is a description of work that is performed to accomplish a business unit's responsibility within an organization.

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BFs: Types of Business FunctionsCore 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.)

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BFs: Major Business Functions

http://www.rijafashions.com/RJ/departments.html

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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

architecturehttp://www.slideshare.net/leanhoang1184/chap013-presentation

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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

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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.

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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.

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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.

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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

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BPs: Business Process Classifications

Classification 1Processes for external customersProcessing of activities to produce an output

for the external customers in the market

Processes for internal customersProcessing 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 2Basic ProcessesProcesses that start due to an external

customer request.

Managerial ProcessesProcesses that take place to fulfill the

organizational goals such as setting targets,

screening the performance measures,

preparing reports for the executives, etc.

Support ProcessesProcesses that take place to support an

ongoing basic process such as stock

replenishment processes, cleaning and

maintenance processes.

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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.

https://www.processon.com/view/4f4b34590cf2c597fa4102e1

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BPs: Business Processes Modeling

Business process modeling, often called process modeling,

is the analytical representation or illustration of anorganization's business processes.

http://www.vske.cz/data/sbornik_vedeckych_praci/Sbornik_vedeckych_praci_VSKE_2013.pdf

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BPs: Business Processes Management

Business process management is the discipline of managing processes as the means for improving business performance outcomes and operational agilityconsisting of 5 phases: design, modeling, execution, monitoring and optimization.

https://commons.wikimedia.org/wiki/File:Business_Process_Management_Life-Cycle.svg

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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.

http://www.govirtualoffice.com/solutions/erp-accounting/

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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 cultureMore 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 efficientlyFirmwide 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.

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Information Technology Infrastructure (ITI)

ITT consists of the equipments, systems, software, and services used in common across an organization, regardless of mission/program/projectand can be used for internal business operations or developing customer IT or business solutions.

http://cs.furman.edu/~pbatchelor/mis/Slides/Infrastructure%20Hardware%20and%20Software%20Week%202.pdf

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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

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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

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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

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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%

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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%

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Risks of CIS (CIS-Risks)

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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

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CIS-Risks: Process Issues

• Program management

• Business process reengineering

• Stage transition

• Benefit realization

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CIS-Risks: Technology Issues

• Software functionality

• Technological obsolescence

• Application portfolio management

• Enhancement and upgrades

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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

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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

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CourseWork

Give example for each type of information systems for the

following enterprises:

- Railway Company

- A Cleaning Supplies Retailer

Documents

CORPORATE INFORMATION SYSTEMS (CIS) - boun.edu.trmisprivate.boun.edu.tr/ozturan/mis301/MIS301-1.pdf · CORPORATE INFORMATION SYSTEMS (CIS) •Fundamentals of CIS •Business Perspectives