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Building and managing
systemsManagement information systems
Presented by: Amanpreet MannMBA (IB)
2010-2012
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Case!
PC connection- small direct mail seller ofcomputers and related
equipment.
TODAY largest in U.S. The companys core Oracle JD Edwards
ERPSystem had not kept up with the companysrate of growth
Over the years it had extended its
fulfillment network to include more than adozen external
partners who handled dropship orders
This system was not designed to handle amulti tiered fulfillment
network
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Managers asked for changes
Process had become unmanageable
Increased operating costs- low profit marginsSOLUTION
They decided to overhaul the fulfillmentsystem
They developed new front end softwareprograms based on web
service
Core team- 3 to 7 IS specialists
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The software can determine the fastest,most economical way to
fulfill an order
Perform real time inventory checks duringthe sales allocation
process
Reduced time and operating costs
Fulfill customer orders more rapidly andaccurately
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Conclusion !
Analyzing the organizations problemswith existing information
systems,
assessing peoples informationrequirements, selecting
appropriatetechnology and redesigning businessprocesses and
jobs
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Business
challenges
management
organization
technology
Information
systems
Business
solutions
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Systems as planned organizationalchange!
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Systems development andorganizational change
IT can promote various degrees oforganizational change
Four kinds :
AUTOMATION (most common form)
RATIONALIZATIONREENGINEERING
PARADIGM SHIFTS
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Automation
Assist employees
Efficient and effective task performance
Calculating paychecks and payrollregisters, giving bank tellers
instantaccess to customer deposit records,
developing a nationwide of airlinereservation terminals for
airlinereservation agents. These are allexamples of early
automation.
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Rationalization
Follows quickly from early automation
It is the streamlining of standard
operating procedures.
PC connections new order fulfillmentsystem is effective because
besides using
sophisticated web services, managersredesigned business
processesaccordingly.
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Reengineering
Powerful type of organizational change
Business processes are analyzed,
simplified and redesigned
Reorganizes work flows, combining stepsto cut waste, eliminate
repetitive and
paper intensive tasks
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Paradigm shift
More radical form of business change It involves rethinking the
nature of the
business and the nature of theorganization
The long-haul trucking and transportationfirm Schneider national
used new
information systems to change itsbusiness model. It created a
new businessmanaging the logistics for othercompanies
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Steps in effective reengineering
When systems are used to strengthen thewrong business model or
business
processes, the business can become moreefficient at doing what
it should not do!!
Determine what business processes arethe most important to focus
on
How improving these processes will helpthe firm execute its
strategy
Understand and measure the performanceof existing processes
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Process improvement: BPM
It enables organizations to manageincremental process changes
that are
required simultaneously in many areas ofthe business
BPM includes work flow mgmt, qualitymgmt, change mgmt, tools for
recastingthe firms business processes into astandardized form
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Process improvement: TQM andsix sigma
Another area of continuous processimprovement
TQM holds that the achievement of qualitycontrol is an end in
itself
Every1 is expected to contribute to theoverall improvement of
quality ranging
form the engineer who avoids designerrors, the production worker
who spotsdefects, the sales representative and eventhe secretary
who avoids typing mistakes
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Six sigma is another quality concept
It is the specific measure of quality,
representing 3.4 defects per millionopportunities
Such quality improvements not only raise
the level of product and service qualitybut they can also lower
costs
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How information systems supportquality improvements
IS can help firms achieve their qualitygoals by helping them
simplify products or
processes, make improvements based oncustomer demands, reduce
cycle time,improve the quality and precision ofdesign and
production and meetbenchmarking standards.
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Thank you!
