TECHNOLOGY AND INFORMATION SYSTEMS
DDC 1583
CHAPTER 1
THE MODERN ORGANIZATION FUNCTIONING IN A
GLOBAL ENVIRONMENT
THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL
ENVIRONMENT
•Business Processes and Business Process Management
•Information system : Concept and Definitions.
•The Global Web- Based Platform
•Business Pressures, Organizational Responses and IT Support.
•Why Are Information System Important to Me?
•The Plan of the Book
Business Processes & Business Process
Management
BUSINESS PROCESSES
• A business process is an ongoing collection of related activities
that create a product or a service of value to the organization, its business
partners and / or its customer.
•A process has inputs and outputs and its activities can be measured
•Many processes cross functional areas in an organization
Product development involves
research, design, engineering,
manufacturing, marketing and
distribution
Business Processes & Business Process
Management
BUSINESS PROCESSES
Accounting Business
Processes
Financial Business
Processes
Marketing Business
Processes
•Managing accounts payable
•Managing accounts receivable
•Reconciling bank account
•Managing cash receipts
•Managing invoice billings
•Managing petty cash
•Producing month-end close
•Producing virtual close
•Managing account collection
•Managing bank loan applications
•Producing business forecasts
•Applying customer credit approval and credit terms
•Producing property tax assessments
•Managing stock transactions
•Generating financial cash flow reports
•Managing post-sale customer follow up
•Collecting sales taxes
•Applying copyrights and treatmarks
•Using customer satisfaction surveys
•Managing customer service
•Handling customer complain
•Handling returned goods from customer
Business Processes & Business Process
Management
BUSINESS PROCESSES
•Producing sales leads
•Entering sales orders
•Training sales personnel
Production / Operations
management Business
Processes
Human Resources
Business Processes
•Processing bills of materials
•Processing manufacturing change orders
•Managing master parts list and files
•Managing packing, storage, and distribution
•Processing physical inventory
•Managing purchasing
•Managing quality control for finished goods
•Auditing for quality assurance
•Receiving, inspecting, and stocking parts and materials
•Handling shipping and freight claims
•Handling vendor selection, files and inspections
• Applying disability policies
•Managing employee hiring
•Handling employee orientation
•Managing files and records
•Applying healthcare benefits
•Managing pay and payroll
•Producing performance appraisals and salary adjustments
•Managing resignations and terminations
Business Processes & Business Process
Management
BUSINESS PROCESSES
•Applying training / tuition reimbursement
•Managing travel and entertainment
•Managing workplace rules and guidelines
•Overseeing workplace safety
Management
Information System
Business Processes
•Antivirus control
•Computer security issues incident reporting
•Training computer users
•Computer user / staff training
•Applying disaster recovery procedures
•Applying electronic mail policy
•Generating Internet use policy
•Managing service agreements and emergency service
•Applying user workstation standards
•Managing the use of personal software.
EXAMPLES OF BUSINESS PROCESSES
Business Processes & Business Process
Management
BUSINESS PROCESSES
•Cross- Functional Processes
- Cross Functional Processes meaning that no single functional area is
responsible for their execution.
- Multiple functional area collaborate to perform the process.
- Each functional are must execute its specific process steps in a coordinated,
collaborative way.
Business Processes & Business Process
Management
BUSINESS PROCESSES
•Cross- Functional Processes
Procurement Process
* includes all of the tasks involved in acquiring needed materials externally from
vendor.
* Comprises 5 steps that are completed in three different functional areas of
the firm: warehouse, purchasing and accounting.
2
1
The warehouse
documents this
need with a
purchase
requisition, which
it sends to the
purchasing
department
In turn, the
purchasing
department
identifies a
suitable vendor,
creates a
purchase order
based on the
purchase
requisition, and
sends the order to
the vendor
3
When the vendor
receives the
purchase order, it
ships the
materials, which
are received in
the warehouse
4
The vendor then
send an invoice
which is received
by the accounting
department
5
Accounting sends
payment to the
vendor, thereby
completing the
procurement
process
Business Processes & Business Process
Management
BUSINESS PROCESSES
•Cross- Functional Processes
Fulfillment Process
* is concerned with efficiently processing Customer Order.
* is triggered by a Customer Purchase Order that is received by the sales
department.
* Sales then validates the purchase order and creates a sales order.
* The sales order communicate date related to the order functional areas within
the organization, and it tracks the progress of the offer.
* The warehouse prepares and sends the shipment to the customer.
* The customer then makes a payment, which account records.
Business Processes & Business Process
Management
BUSINESS PROCESSES
An organization’s business process can create a competitive advantage if they
Enable the company less responsive and efficient.
Illustrates the e- ticket purchasing
business process
BUSINESS PROCESS MANAGEMENT
 Excellence in executing business processes is widely recognized as the
underlying basic for all significant measures of competitive performance in an
organization.
 Consider these measures, for example:-
Customer
satisfaction
The result of optimizing and aligning business
process to fulfill customers needs, wants, and
desires
Cost reduction
The result of optimizing operations and supplier
process
Cycle and fulfillment
time
The result of optimizing the manufacturing and
logistics processes
Quality
The result of optimizing the design, development
and production process
Differentiation
The result of optimizing the marketing and
innovation processes
Productivity
The result of optimizing each individual’s work
processes
BUSINESS PROCESS MANAGEMENT
•Business Process Management (BPM) is a management technique that includes:•Methods
To support the design, analysis, implementation,
•Tools
management and optimization of business process
•Helps companies improve profitability by decreasing costs and increasing revenues.
•Over time BPM can create a competitive advantage by improving organizational
flexibility.
•BPM can provide cost benefits and increase customer satifaction
INFORMATION SYSTEM: Concepts & Definitions
DATA, INFORMATION AND KNOWLEADGE
 Data items refer to an elementary description of things, events, activities,
and transactions that are recorded, classified, and stored but not organized
to convey meaning
 Information refers to data that have been organized so that they have
meaning and value to the recipient
 Knowledge consists of data and/or information that have been
organized and processed to convey understanding, experience,
accumulated learning, and expertise as they apply to a current business
problem
KNOWLEDGE
DATA
INFORMATION
Binary code, the foundation of information and knowledge, is the key to making complex
decision
INFORMATION SYSTEM: Concepts & Definitions
INFORMATION TECHNOLOGY ARCHITECTURE
 An organization’s information technology architecture is a high-level map or
plan of the information assets in an organization
INFORMATION SYSTEM: Concepts & Definitions
INFORMATION TECHNOLOGY INFRASTRUCTURE
 An organization’s information technology infrastructure consists of the
physical facilities, IT components, IT services, and IT personnel that support
the entire organization
 Modern organizations operate within a global, Web-based platform, which is
discussed next.
DATABASE
HARDWARE
SOFTWARE
NETWORK
It takes technology (hardware, software, databases and network) with
appropriate procedures to make a CBOS useful for people
THE GLOBAL WEB-BASED PLATFORM
• The global, Web-based platform that has recently emerged spans the world and
is best represented by the Internet and the functionality of the World Wide Web
• The platform enables individuals to connect, compute, communicate,
collaborate, and compete anywhere and at any time.
• One of the biggest impacts this platform has had is the creation of new
globalization opportunities.
• The three stages of globalization:
 Globalization 1.0 (1492 to 1800) – countries
 Globalization 2.0 (1800 to 2000) – multinational companies
 Globalization 3.0 (2000 and beyond) – groups and individuals
BUSINESS PRESSURES, ORGANIZATIONAL
RESPONSES AND IT SUPPORT
 What external business pressures create threats and opportunities for
today’s businesses?
 How have organizations responded to these pressures?
 How does IT support these organizational responses?
BUSINESS PRESSURES, ORGANIZATIONAL
RESPONSES AND IT SUPPORT
BUSINESS PRESSURES
Business Pressures: Market
 Global economy and strong competition
 NAFTA, EU, etc.
 Rise of India and China
 Global labor costs
 Need for real-time operations
 The online marketplace never closes and up-to-the-minute information is
required for organizational decision making
 The changing nature of the workforce
 The workforce is becoming more diverse and includes increasing
numbers of women, single parents, minorities, and persons with
disabilities
 Powerful customers
 Customers have access to vast amounts of information and have access
to a large number of retailers and service providers
BUSINESS PRESSURES, ORGANIZATIONAL
RESPONSES AND IT SUPPORT
BUSINESS PRESSURES
Business Pressures: Technology
 Technological innovation and obsolescence
 New technologies are constantly being developed
 These new technologies must be considered when creating new
innovative products, services, and processes
 Old technology rapidly becomes obsolete
 Information overload
 The amount of information collected, stored, and made accessible to
organizations and individuals continues to grow
 Without proper IT tools, the information flood can be overwhelming
 IT’s such as search engines and data mining tools provide support for
incorporating this vast amount of information into real-time organizational
decision making
BUSINESS PRESSURES, ORGANIZATIONAL
RESPONSES AND IT SUPPORT
BUSINESS PRESSURES
Business Pressures: Societal/Political/Legal
 Social responsibility
 Responsibility not only to traditional organizational stakeholders, but also
society as a whole
 Compliance with government regulations and deregulation
 Protection against terrorist attacks
 Ethical issues
 Ethics relates to general standards of right and wrong
 Information ethics relates specifically to standards of right and wrong in
information-processing practices (or other online activities)
BUSINESS PRESSURES, ORGANIZATIONAL
RESPONSES AND IT SUPPORT
ORGANIZATIONAL RESPONSES
 Strategic systems
 Customer focus and service (CRM), self-service
 Continuous improvement and business process reengineering
 Make-to-order and mass customization
 Better data management
 Business alliances
 E-business and e-commerce
BUSINESS PRESSURES, ORGANIZATIONAL
RESPONSES AND IT SUPPORT
IT SUPPORT FOR ORGANIZATION RESPONSES
 IT support for business activities has evolved quite dramatically from the
1950s through today
 This topic is discussed in more detail in the following chapter
Example: Grocery Store Checkout
 Old Process
 New Process
 In the “old-old” economy, when you
 In the new economy you take your
visited retail stores you placed your
items in a shopping cart and
proceeded to checkout
 The clerk manually entered the
price for each item and you paid for
them in cash
 The store gathered no information
about the transaction other than
receiving payment
items to a self-service kiosk where
you swipe the barcode for each
item over a reader and then pay by
cash, credit card or debit card
 In the coming generation of
checkout technology all items with
have wireless RFID tags allowing
you to simply walk your cart
through a device to total up the
price and make payment
Example: Photography
 Old Process
 New Process
 You buy film at the store, insert it
 Use a digital camera that can also




into your camera, and take pictures
Once you complete the film,
sometimes weeks or months after
you began the roll, you take it to
the store (or mail it) for processing
Go back to the store and pay for
enlargements and duplications
Send photos by mail to family and
friends
Video requires a second, different,
camera




take videos
No film is needed, and no
processing is required
You can see the results
immediately and enlarge and print
photos quickly
In minutes you can electronically
send the pictures to your family
and friends
You can view the pictures on
personal computers, personal
digital assistants (PDAs), and other
digital devices
WHY ARE INFORMATION SYSTEM IMPORTANT
TO ME?
Information systems are important to you for a variety of reasons:•First, information systems and information technologies are integral to your life.
• Second, the IS field offers many career opportunities.
•Finally, all functional areas in an organization utilize information systems.
INFORMATION SYSTEM AND INFORMATION
TECHNOLOGY ARE INTEGRAL TO YOUR LIVES
There are many examples of the ways in which information systems and technologies
are embedded in your lives. For example, thinks of all you can do online:
• Register for classes
• Take classes, and not just classes from your university
• Access class syllabi, information, PowerPoints, and lectures
• Research class papers and presentations
• Conduct banking
• Pay your bills
• Research, shop, and buy products from companies or other people
• Sell your “stuff”
•
WHY ARE INFORMATION SYSTEM IMPORTANT
TO ME?
INFORMATION SYSTEM AND INFORMATION
TECHNOLOGY ARE INTEGRAL TO YOUR LIVES
• Search for, and apply for, jobs
• Make your travel reservations (hotel, airline, rental car)
In addition to all the activities you can perform online, there are other
examples of how information systems and information technologies are
essential to your daily living.
For example: you may not use a regular wire line telephone. Rather, you
use a smart phone that has a calendar, an address
WHY ARE INFORMATION SYSTEM IMPORTANT
TO ME?
IT OFFERS CAREER OPPORTUNITIES
-Because information technology is vital to the operation of modern businesses, it
offers many employment opportunities.
-The demand for traditional IT staff- programmers, business analysts, system
analyst and designers.
-The information system field includes the people in organizations who design and
build information systems, the people who use those systems, and the people
responsible for managing those systems.
WHY ARE INFORMATION SYSTEM IMPORTANT
TO ME?
MANAGING INFORMATION RESOUCES
-Managing Information System in modern organizations is difficult, complex task.
-Information Systems have enormous strategic value to organizations.
-Information Systems are very expensive to acquire, operate and maintain.
-Factor contributing to the difficulty in managing information systems is the evolution
of the management systems (MIS) function within the organization.