Managing Information Systems Information Systems in Organisations Part 2 Dr. Stephania Loizidou Himona ACSC 345

Managing Information Managing Information SystemsSystems

Information Systems in OrganisationsPart 2

Dr. Stephania Loizidou Himona

ACSC 345

Dr. S. Loizidou - ACSC345Dr. S. Loizidou - ACSC345 22

ObjectivesObjectives

To understand relationships between IS and To understand relationships between IS and business processesbusiness processes

To understand the business value of ISTo understand the business value of IS


TopicsTopics

Business processes and ISBusiness processes and IS– Relationship between business processes and Relationship between business processes and

ISIS– Customer Relationship Management (CRM)Customer Relationship Management (CRM)– Supply Chain Management (SCM)Supply Chain Management (SCM)

Business value of ISBusiness value of IS– Overview of assessing business valueOverview of assessing business value


Business ProcessesBusiness Processes

What are business processes?What are business processes?


Examples of Business ProcessesExamples of Business Processes

Sales and marketingSales and marketing– Identifying customers, selling the productIdentifying customers, selling the product

Manufacturing and productionManufacturing and production– Assembling products, checking for qualityAssembling products, checking for quality

Finance and accountingFinance and accounting– Paying creditors, creating financial statementsPaying creditors, creating financial statements

Human resourcesHuman resources– Hiring employees, appraising employeesHiring employees, appraising employees


IS and Business ProcessesIS and Business Processes

Single or multiple IS can support one Single or multiple IS can support one business process:business process:– Can be more efficient if done correctlyCan be more efficient if done correctly– Can reduce costsCan reduce costs

Selecting business processes to automate Selecting business processes to automate requires significant analysisrequires significant analysis

Business Process Re-engineering (BPR)Business Process Re-engineering (BPR)


Customer Relationship Customer Relationship Management (CRM)Management (CRM)

Coordination of all business processes for Coordination of all business processes for dealing with customersdealing with customers

Customers are long-term assets:Customers are long-term assets:– Not exploitable sources of incomeNot exploitable sources of income– Good relationship with customers brings better Good relationship with customers brings better

and longer-term incomeand longer-term income Examples:Examples:

– SiebelSiebel, GoldMine, Avaya, GoldMine, Avaya


Supply Chain Management Supply Chain Management (SCM)(SCM)

Coordination of all business processes for buying, Coordination of all business processes for buying, making and moving productsmaking and moving products

Integration of supplier and distributor into a single Integration of supplier and distributor into a single processprocess– Can reduce time and effort and inventory costsCan reduce time and effort and inventory costs– Products on demand: suppliers can send products direct Products on demand: suppliers can send products direct

to customersto customers

Examples:Examples:– SAP, CSC, PeopleSoftSAP, CSC, PeopleSoft


Enterprise Systems (ES)Enterprise Systems (ES)

Organisation-wide IS that integrate key business Organisation-wide IS that integrate key business processes to facilitate information flowprocesses to facilitate information flow

Also known as Enterprise Resource Planning Also known as Enterprise Resource Planning (ERP) systems(ERP) systems

Integration of the six types of ISIntegration of the six types of IS– Improves availability of information and removes Improves availability of information and removes

duplication and associated errorsduplication and associated errors– Can improve efficiency and reduce costCan improve efficiency and reduce cost

Examples:Examples:– SAPSAP


Examples of ESExamples of ES

CRM and SCM are a step towards ESCRM and SCM are a step towards ES Demonstrates how multiple business Demonstrates how multiple business

processes can be served by a suite of processes can be served by a suite of integrated ISintegrated IS

Includes external organisational links Includes external organisational links through Industrial Networksthrough Industrial Networks


Business Value of ISBusiness Value of IS

What is the business value of IS?What is the business value of IS?


Realising ValueRealising Value

Assessment of IS for implementationAssessment of IS for implementation– Financial and non-financial modelsFinancial and non-financial models– Tangible and intangible benefitsTangible and intangible benefits

Benefits may go direct to customerBenefits may go direct to customer– Reduce costs lead to reduced prices for Reduce costs lead to reduced prices for

competitivenesscompetitiveness Benefits may not be realised if poorly Benefits may not be realised if poorly

implementedimplemented


Example CostsExample Costs

What example costs can you think of?What example costs can you think of?


Example CostsExample Costs

HardwareHardware SoftwareSoftware ServicesServices PersonnelPersonnel


Example Tangible BenefitsExample Tangible Benefits

What example tangible benefits can you What example tangible benefits can you think of?think of?


Example Tangible BenefitsExample Tangible Benefits

Increased productivityIncreased productivity Low operating costsLow operating costs Reduced work forceReduced work force Lower computer expensesLower computer expenses Lower supplier costsLower supplier costs Lower clerical/professional costsLower clerical/professional costs Reduced growth of expensesReduced growth of expenses Reduced facility costsReduced facility costs


Example Intangible BenefitsExample Intangible Benefits

What example intangible benefits can you What example intangible benefits can you think of?think of?


Example Intangible BenefitsExample Intangible Benefits

Improved asset use; resource control; planningImproved asset use; resource control; planning Increased flexibilityIncreased flexibility More timely informationMore timely information Increased learningIncreased learning Attain legal requirementsAttain legal requirements Enhanced employee goodwill, job satisfaction, Enhanced employee goodwill, job satisfaction,

decision making, operationsdecision making, operations Higher customer satisfactionHigher customer satisfaction Better corporate imageBetter corporate image


SummarySummary

Looked at the relationships between IS and Looked at the relationships between IS and business processesbusiness processes– Examples of IS used for business processes Examples of IS used for business processes

with CRM, SCM and ESwith CRM, SCM and ES

Looked at the business value of ISLooked at the business value of IS– Examples of costs and benefits of ISExamples of costs and benefits of IS

Documents

Managing Information Systems Information Systems in Organisations Part 2 Dr. Stephania Loizidou Himona ACSC 345