Dr Sherif Kamel Department f Management Schl f Business, Ecnmics and Cmmunicatin IT Planning and Organizatinal Applicatins CRM and Integrated Slutins
Outline Functinal Infrmatin Systems The Value Chain Transactin Prcessing Systems (TPS) Case Managing Human Resurce Systems (HRMS) Custmer Relatinship Management (CRM) IT Planning Business Prcess Re-engineering (BPR) Virtual Crpratins (VC)
Functinal Infrmatin Systems Traditinally, infrmatin systems were designed within each functinal area t increase their internal effectiveness and efficiency This may nt suit sme rganizatins, because certain prcesses may invlve activities that are perfrmed in several functinal areas Slutin - Reengineer the rganizatin Fr example, the cmpany can create crss-functinal teams, each respnsible fr perfrming a cmplete business prcess Slutin - Integrated apprach Keeps the functinal departments but creates a supprtive infrmatin system t help cmmunicatin, crdinatin, and cntrl
Functinal Department The Value Chain Administrative Crdinatin and Supprt Services SIS Cllabrative Wrk Systems Human Resurces Management SIS Emplyee Skills Database Systems Technlgy Develpment SIS Cmputer-Aided Engineering and Design Prcurement f Resurces SIS Electrnic Data Interchange with Suppliers Inbund Lgistics SIS Autmated JIT Warehusing Operatins SIS Cmputer Aided Flexible Manufacturing Outbund Lgistics SIS Online Pint Of Sale And rder Prcessing Marketing And Sales SIS Interactive Targeting Marketing Cmpetitive Advantage Custmer Service SIS Help Desk Expert Systems
Characteristics f Functinal Infrmatin Systems A functinal infrmatin system cnsists f several smaller infrmatin systems that supprt specific activities perfrmed in the functinal area The specific IS applicatins in any functinal area can be integrated t frm a cherent departmental functinal system, r they can be cmpletely independent Functinal infrmatin systems interface with each ther t frm the rganizatin-wide infrmatin system (Intranet) Sme rganizatinal infrmatin systems interface with the envirnment (Extranet-Internet) Infrmatin systems applicatins supprt the three levels f an rganizatin s activities: peratinal, managerial, and strategic
Transactin Prcessing Systems (TPS) Transactin Prcessing Systems (TPS) Infrmatin systems that supprt business prcesses, mainly accunting and finance transactins, sales, persnnel, and prductin activities TPS is the backbne f an rganizatin s infrmatin system It mnitrs, cllects, stres, prcesses and disseminates infrmatin fr all rutine cre business transactins Data represent input data t functinal infrmatin systems applicatins, decisin supprt systems (DSS), and custmer relatinships management (CRM)
Activities f TPS Data are cllected and entered int the cmputer via any input device TPS then prcesses data thrugh Batch prcessing - Firm cllects data frm transactins as they ccur, placing them in grups r batches - system then prcesses the batches peridically Online prcessing - Data are prcessed as sn as a transactin ccurs Hybrid system - (a cmbinatin f batch and nline prcessing) cllects data as they ccur but prcess them at specified intervals
Case: Taxis in Singapre Taxis in Singapre are tracked by a glbal psitining system (GPS) prviding users with an instant fix n the gegraphical psitin f each taxi Custmer rders are usually received via telephne, fax and email - frequent users enter rders frm their ffices r hmes by keying in a PIN number The system cmpletely reengineered the taxi rder prcessing The transactin time fr prcessing an rder is much shrter
Managing Human Resurce Systems Develpments in Web-based systems increased the ppularity f human resurces infrmatin systems (HRISs) since the 1990s Initial HRIS applicatins were mainly related t transactin prcessing systems Hwever, in the last decade we have seen cnsiderable cmputerizatin activities in the managerial and even strategic areas
HRISs and Recruitment Using the web fr recruitment With millins f resumes available nline, cmpanies are trying t find apprpriate candidates n the Web Psitin inventry Large rganizatins need t fill vacant psitins frequently - an advanced intranet-based psitin inventry system keeps the psitin inventry list current and matches penings Emplyee selectin T expedite the testing and evaluatin prcess and ensure cnsistency in selectin, cmpanies use infrmatin technlgies such as expert systems
Custmer Relatinship Management (CRM) Custmer relatinship management (CRM) is an apprach that recgnizes that custmers are the cre f the business and that the cmpany s success depends n effectively managing relatinships with them Custmer service is a series f activities designed t enhance the level f custmer satisfactin eservice is custmer service that is perfrmed n the Web, smetimes autmatically
CRM in Actin There are 5 steps in building IT-supprted CRM Make it easy fr custmers t d business with yu Fcus n the end custmer fr yur prducts and services Redesign yur custmer-facing business prcesses frm the end custmer s pint f view Wire yur cmpany fr prfit: design a cmprehensive, evlving electrnic business architecture Fster custmer lyalty especially in ecmmerce
Infrmatin Technlgy in CRM
IT Planning A Strategic infrmatin systems plan identifies a set f cmputer-based applicatins that will help a cmpany reach its business gals IT planning identifies the applicatins prtfli, a list f majr, apprved IS prjects that are cnsistent with the lng-range plan Planning and cntrl systems fr IT started in the late 1950s and early 1960s
IT Planning Issues Aligning the IT plan with the rganizatinal business plan Designing an IT architecture fr the rganizatin in such a way that users, applicatins, and databases can be integrated and netwrked tgether Efficiently allcating infrmatin systems develpment and peratinal resurces amng cmpeting applicatins Planning infrmatin systems prjects s that they are cmpleted n time and within budget and include the specified functinalities
4 Stage Mdel f IT Planning
Stage 1 - Strategic Infrmatin Planning Strategic infrmatin planning (SIP) must be aligned with verall rganizatinal planning and with ebusiness T accmplish this alignment, the rganizatin must execute the fllwing: Set the IT missin Assess the envirnment Assess existing systems availabilities and capabilities Assess rganizatinal bjectives and strategies Set IT bjectives, strategies, and plicies Assess the ptential impacts f IT An rganizatin wuld cnduct the same six steps fr ebusiness
Business Systems Planning The Business systems planning (BSP) mdel, develped by IBM, is a tp-dwn apprach that starts with business strategies It deals with tw main building blcks as the basis f the infrmatin architecture Business prcesses Data classes The recgnitin that prcesses culd be a mre fundamental aspect f business than departments r ther rganizatinal arrangements brke new grunds
Stage 2 - Infrmatin Requirements Analysis Step 1 - Define underlying rganizatinal subsystems Step 2 - Develp subsystem matrix Step 3 - Define and evaluate infrmatin requirements fr rganizatinal subsystems Step 4 - Define majr infrmatin categries and map interview results int them Step 5 - Develp infrmatin/subsystem matrix
Stage 3 - Resurce Allcatin Resurce allcatin cnsists f develping the hardware, sftware, data cmmunicatins, facilities, persnnel, and financial plans needed t execute the master develpment plan defined in Stage 2 This stage prvides the framewrk fr technlgy and labr prcurement, and identifies the financial resurces needed t prvide apprpriate service levels t users Funding requests frm the ISD fall int tw categries Thse necessary t stay in business Thse fr imprving the infrmatin architecture
Stage 4 - Prject Planning Prject Planning prvides an verall framewrk within which specific applicatins can be planned, scheduled, and cntrlled
Infrastructure Cnsideratins There are 4 infrastructure relatinships Industry - manufacturing firms use less IT infrastructure services than retail r financial firms Market vlatility - firms that need t change prducts quickly use mre IT infrastructure services Business unit synergy - firms that emphasize synergies (e.g., crss-selling) use mre IT infrastructure services Strategy and planning - firms that integrate IT and rganizatinal planning, use mre IT infrastructure services
IT Architecture Cmputing Centralized cmputing puts all prcessing and cntrl authrity within ne cmputer and all ther cmputing devices respnd Distributed Cmputing handles the chices fr cmputing at the pint f the cmputing need; individual needs are met with individualized cmputing A Blended apprach cmbines the tw mdels abve. The mainframe (centralized resurce) can perate as a peripheral device fr ther (distributed) cmputing resurces
Business Prcess Reengineering Business prcess reengineering (BPR) refers t a situatin in which an rganizatin fundamentally and radically redesigns its business prcess t achieve dramatic imprvement Initially, attentin was given t a cmplete restructuring f rganizatins Later, the cncept was changed due t failures f BPR prjects and the emergence f Web-based applicatins Tday, BPR can fcus n anything frm the cmplete restructuring f an rganizatin t the redesigning f individual prcesses Majr bjective f BPR = Infrmatin Integratin
Mass Custmizatin One f the mst successful mdels f ecmmerce is mass custmizatin It supplements r replaces ne f the mst innvative cncepts f the Industrial Revlutin, mass prductin ecmmerce transfrms the supply chain frm a traditinal push mdel t a pull mdel Push mdel - The business prcess starts with manufacturing and ends with cnsumers buying the prducts r services Pull mdel - The prcess starts with the cnsumer rdering the prduct (r service) and ends with the manufacturer making it The pull mdel enables custmizatin since rders are taken first
BPR Failures During the 1990s there were just as many cases f BPR failures as there were success stries Sme f the reasns cited fr failures are: high risk inapprpriate change management failure t plan fr internal plitics high cst lack f participatin and leadership inflexible sftware lack f mtivatin
Virtual Crpratins (Organizatin) Virtual Crpratin (VC/VO) is an rganizatin cmpsed f several business partners sharing csts and resurces fr the purpse f prducing a prduct r service VC is helping executives and staff glbally t cllabrate withut face2face interactin A virtual crpratin uses infrmatin technlgy t link peple, assets and ideas Accrding t Gldman et al. (1995), permanent virtual crpratins are designed t d the fllwing Create r assemble prductive resurces rapidly Create r assemble prductive resurces frequently and cncurrently Create r assemble a brad range f prductive resurces
Mdel fr a Virtual Crpratin Alliance with a majr supplier Extranets Alliance with subcntractrs Intranets Bundary f firm Custmer respnse and rder-fulfillment teams Alliance with a majr custmer Manufacturing teams Alliance with small suppliers Crss-functinal teams Engineering teams Alliance with a cmpetitr wh prvides services that are cmplementary
Characteristics f virtual crpratins Adaptability Brderless Excellence Technlgy Opprtunism Trust-based
Virtual Crpratins In a VC, the resurces f the business partners remain in their riginal lcatins but are integrated In rder t functin, VCs rely n the fllwing frms f IT Cmmunicatin/ cllabratin amng dispersed business partners - email, desktp videcnferencing, screen-sharing, etc. EDI and EFT Intelligent agents Mdern database technlgies and netwrking Intranet/Internet applicatins