Transcript Slide 1

Dr Sherif Kamel
Department of Management
School of Business, Economics and
Communication
IT Planning and Organizational Applications
CRM and Integrated Solutions
Outline
Functional Information Systems
 The Value Chain
 Transaction Processing Systems (TPS)
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Case
Managing Human Resource Systems (HRMS)
 Customer Relationship Management (CRM)
 IT Planning
 Business Process Re-engineering (BPR)
 Virtual Corporations (VC)
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Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
Functional Information Systems
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Traditionally, information systems were designed within
each functional area to increase their internal effectiveness
and efficiency
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Solution - Reengineer the organization
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This may not suit some organizations, because certain processes
may involve activities that are performed in several functional areas
For example, the company can create cross-functional teams, each
responsible for performing a complete business process
Solution - Integrated approach
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Keeps the functional departments but creates a supportive
information system to help communication, coordination, and
control
Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
Functional Department
The Value Chain
Administrative Coordination and Support Services
SIS – Collaborative Work Systems
Human Resources Management
SIS – Employee Skills Database Systems
Technology Development
SIS – Computer-Aided Engineering and Design
Procurement of Resources
SIS – Electronic Data Interchange with Suppliers
Inbound
Logistics
SIS
Automated
JIT
Warehousing
Operations
SIS
Computer
Aided
Flexible
Manufacturing
Outbound
Logistics
SIS
Online
Point
Of Sale
And order
Processing
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Marketing
And
Sales
SIS
Interactive
Targeting
Marketing
Customer
Service
Competitive
Advantage
SIS
Help Desk
Expert Systems
Copyright © 2005 Sherif Kamel
Characteristics of Functional Information
Systems
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A functional information system consists of several smaller
information systems that support specific activities
performed in the functional area
The specific IS applications in any functional area can be
integrated to form a coherent departmental functional
system, or they can be completely independent
Functional information systems interface with each other to
form the organization-wide information system (Intranet)
Some organizational information systems interface with the
environment (Extranet-Internet)
Information systems applications support the three levels
of an organization’s activities: operational, managerial, and
strategic
Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
Transaction Processing Systems (TPS)
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Transaction Processing Systems (TPS)
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Information systems that support business processes, mainly
accounting and finance transactions, sales, personnel, and
production activities
TPS is the backbone of an organization’s information
system
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It monitors, collects, stores, processes and disseminates
information for all routine core business transactions
Data represent input data to functional information systems
applications, decision support systems (DSS), and customer
relationships management (CRM)
Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
Activities of TPS
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Data are collected and entered into the computer via any
input device
TPS then processes data through
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Batch processing
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Online processing
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Firm collects data from transactions as they occur, placing them in
groups or batches - system then processes the batches periodically
Data are processed as soon as a transaction occurs
Hybrid system
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(a combination of batch and online processing) collects data as they
occur but process them at specified intervals
Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
Case: Taxis in Singapore
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Taxis in Singapore are tracked by a global positioning
system (GPS) providing users with an instant fix on the
geographical position of each taxi
Customer orders are usually received via telephone, fax
and eMail - frequent users enter orders from their offices or
homes by keying in a PIN number
The system completely reengineered the taxi order
processing
The transaction time for processing an order is much
shorter
Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
Managing Human Resource Systems
Developments in Web-based systems increased
the popularity of human resources information
systems (HRISs) since the 1990s
 Initial HRIS applications were mainly related to
transaction processing systems
 However, in the last decade we have seen
considerable computerization activities in the
managerial and even strategic areas
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Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
HRISs and Recruitment
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Using the web for recruitment
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Position inventory
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With millions of resumes available online, companies
are trying to find appropriate candidates on the Web
Large organizations need to fill vacant positions
frequently - an advanced intranet-based position
inventory system keeps the position inventory list
current and matches openings
Employee selection
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To expedite the testing and evaluation process and
ensure consistency in selection, companies use
information technologies such as expert systems
Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
Customer Relationship Management (CRM)
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Customer relationship management (CRM) is an approach
that recognizes that customers are the core of the business
and that the company’s success depends on effectively
managing relationships with them
Customer service is a series of activities designed to
enhance the level of customer satisfaction
eService is customer service that is performed on the Web,
sometimes automatically
Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
CRM in Action
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There are 5 steps in building IT-supported CRM…
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Make it easy for customers to do business with you
Focus on the end customer for your products and
services
Redesign your customer-facing business processes
from the end customer’s point of view
Wire your company for profit: design a comprehensive,
evolving electronic business architecture
Foster customer loyalty – especially in eCommerce
Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
Information Technology in CRM
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Copyright © 2005 Sherif Kamel
IT Planning
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A Strategic information systems plan identifies a set of
computer-based applications that will help a company
reach its business goals
IT planning identifies the applications portfolio, a list of
major, approved IS projects that are consistent with the
long-range plan
Planning and control systems for IT started in the late
1950s and early 1960s
Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
IT Planning Issues
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Aligning the IT plan with the organizational business plan
Designing an IT architecture for the organization in such a
way that users, applications, and databases can be
integrated and networked together
Efficiently allocating information systems development and
operational resources among competing applications
Planning information systems projects so that they are
completed on time and within budget and include the
specified functionalities
Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
4 Stage Model of IT Planning
Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
Stage 1 - Strategic Information Planning
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Strategic information planning (SIP) must be aligned with
overall organizational planning and with eBusiness
To accomplish this alignment, the organization must
execute the following:
o Set the IT mission
o Assess the environment
o Assess existing systems’ availabilities and capabilities
o Assess organizational objectives and strategies
o Set IT objectives, strategies, and policies
o Assess the potential impacts of IT
An organization would conduct the same six steps for
eBusiness
Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
Business Systems Planning
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The Business systems planning (BSP) model,
developed by IBM, is a top-down approach that starts with
business strategies
It deals with two main building blocks as the basis of the
information architecture…
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Business processes
Data classes
The recognition that processes could be a more
fundamental aspect of business than departments or other
organizational arrangements broke new grounds
Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
Stage 2 - Information Requirements Analysis
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Step 1 - Define underlying organizational subsystems
Step 2 - Develop subsystem matrix
Step 3 - Define and evaluate information requirements for
organizational subsystems
Step 4 - Define major information categories and map
interview results into them
Step 5 - Develop information/subsystem matrix
Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
Stage 3 - Resource Allocation
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Resource allocation consists of developing the hardware,
software, data communications, facilities, personnel, and
financial plans needed to execute the master development
plan defined in Stage 2
This stage provides the framework for technology and
labor procurement, and identifies the financial resources
needed to provide appropriate service levels to users
Funding requests from the ISD fall into two categories
o Those necessary to stay in business
o Those for improving the information architecture
Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
Stage 4 - Project Planning
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Project Planning provides an overall framework
within which specific applications can be planned,
scheduled, and controlled
Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
Infrastructure Considerations
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There are 4 infrastructure relationships
o Industry - manufacturing firms use less IT infrastructure
services than retail or financial firms
o Market volatility - firms that need to change products
quickly use more IT infrastructure services
o Business unit synergy - firms that emphasize synergies
(e.g., cross-selling) use more IT infrastructure services
o Strategy and planning - firms that integrate IT and
organizational planning, use more IT infrastructure
services
Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
IT Architecture Computing
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Centralized computing puts all processing and control
authority within one computer and all other computing
devices respond
Distributed Computing handles the choices for
computing at the point of the computing need; individual
needs are met with individualized computing
A Blended approach combines the two models above.
The mainframe (centralized resource) can operate as a
peripheral device for other (distributed) computing
resources
Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
Business Process Reengineering
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Business process reengineering (BPR) refers to a situation
in which an organization fundamentally and radically
redesigns its business process to achieve dramatic
improvement
o Initially, attention was given to a complete restructuring
of organizations
o Later, the concept was changed due to failures of BPR
projects and the emergence of Web-based applications
o Today, BPR can focus on anything from the complete
restructuring of an organization to the redesigning of
individual processes
o Major objective of BPR = Information Integration
Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
Mass Customization
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One of the most successful models of eCommerce is mass
customization
It supplements or replaces one of the most innovative concepts of the
Industrial Revolution, mass production
eCommerce transforms the supply chain from a traditional push model
to a pull model
o Push model
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Pull model
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The business process starts with manufacturing and ends with
consumers buying the products or services
The process starts with the consumer ordering the product (or service)
and ends with the manufacturer making it
The pull model enables customization since orders are taken first
Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
BPR Failures
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During the 1990s there were just as many cases of BPR
failures as there were success stories
Some of the reasons cited for failures are:
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high risk
inappropriate change management
failure to plan for internal politics
high cost
lack of participation and leadership
inflexible software
lack of motivation
Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
Virtual Corporations (Organization)
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Virtual Corporation (VC/VO) is an organization composed
of several business partners sharing costs and resources
for the purpose of producing a product or service
VC is helping executives and staff globally to collaborate
without face2face interaction
A virtual corporation uses information technology to link
people, assets and ideas
According to Goldman et al. (1995), permanent virtual
corporations are designed to do the following…
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Create or assemble productive resources rapidly
Create or assemble productive resources frequently and
concurrently
Create or assemble a broad range of productive resources
Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
Model for a Virtual Corporation
Alliance with
subcontractors
Boundary of firm
Alliance with a
major supplier
Customer response
and order-fulfillment
teams
Intranets
Extranets
Alliance with a
major customer
Manufacturing teams
Alliance with a competitor
who provides services
that are complementary
Alliance with
small suppliers
Cross-functional teams
Copyright © 2002 Turban, McLean and Wetherbe
Engineering teams
Copyright © 2005 Sherif Kamel
Characteristics of virtual corporations
Adaptability
 Borderless
 Excellence
 Technology
 Opportunism
 Trust-based
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Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
Virtual Corporations
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In a VC, the resources of the business partners remain in
their original locations but are integrated
In order to function, VCs rely on the following forms of IT
o Communication/ collaboration among dispersed
business partners
- eMail, desktop videoconferencing, screen-sharing,
etc.
o EDI and EFT
o Intelligent agents
o Modern database technologies and networking
o Intranet/Internet applications
Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel