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Managing Information Systems

Managing Information Systems. Information Systems in Organisations Part 2 Dr. Stephania Loizidou Himona ACSC 345. Objectives. To understand relationships between IS and business processes To understand the business value of IS. Topics. Business processes and IS

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Managing Information Systems

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

  2. Objectives • To understand relationships between IS and business processes • To understand the business value of IS Dr. S. Loizidou - ACSC345

  3. Topics • Business processes and IS • Relationship between business processes and IS • Customer Relationship Management (CRM) • Supply Chain Management (SCM) • Business value of IS • Overview of assessing business value Dr. S. Loizidou - ACSC345

  4. Business Processes • What are business processes? Dr. S. Loizidou - ACSC345

  5. Examples of Business Processes • Sales and marketing • Identifying customers, selling the product • Manufacturing and production • Assembling products, checking for quality • Finance and accounting • Paying creditors, creating financial statements • Human resources • Hiring employees, appraising employees Dr. S. Loizidou - ACSC345

  6. IS and Business Processes • Single or multiple IS can support one business process: • Can be more efficient if done correctly • Can reduce costs • Selecting business processes to automate requires significant analysis • Business Process Re-engineering (BPR) Dr. S. Loizidou - ACSC345

  7. Customer Relationship Management (CRM) • Coordination of all business processes for dealing with customers • Customers are long-term assets: • Not exploitable sources of income • Good relationship with customers brings better and longer-term income • Examples: • Siebel, GoldMine, Avaya Dr. S. Loizidou - ACSC345

  8. Supply Chain Management (SCM) • Coordination of all business processes for buying, making and moving products • Integration of supplier and distributor into a single process • Can reduce time and effort and inventory costs • Products on demand: suppliers can send products direct to customers • Examples: • SAP, CSC, PeopleSoft Dr. S. Loizidou - ACSC345

  9. Enterprise Systems (ES) • Organisation-wide IS that integrate key business processes to facilitate information flow • Also known as Enterprise Resource Planning (ERP) systems • Integration of the six types of IS • Improves availability of information and removes duplication and associated errors • Can improve efficiency and reduce cost • Examples: • SAP Dr. S. Loizidou - ACSC345

  10. Examples of ES • CRM and SCM are a step towards ES • Demonstrates how multiple business processes can be served by a suite of integrated IS • Includes external organisational links through Industrial Networks Dr. S. Loizidou - ACSC345

  11. Business Value of IS • What is the business value of IS? Dr. S. Loizidou - ACSC345

  12. Realising Value • Assessment of IS for implementation • Financial and non-financial models • Tangible and intangible benefits • Benefits may go direct to customer • Reduce costs lead to reduced prices for competitiveness • Benefits may not be realised if poorly implemented Dr. S. Loizidou - ACSC345

  13. Example Costs • What example costs can you think of? Dr. S. Loizidou - ACSC345

  14. Example Costs • Hardware • Software • Services • Personnel Dr. S. Loizidou - ACSC345

  15. Example Tangible Benefits • What example tangible benefits can you think of? Dr. S. Loizidou - ACSC345

  16. Example Tangible Benefits • Increased productivity • Low operating costs • Reduced work force • Lower computer expenses • Lower supplier costs • Lower clerical/professional costs • Reduced growth of expenses • Reduced facility costs Dr. S. Loizidou - ACSC345

  17. Example Intangible Benefits • What example intangible benefits can you think of? Dr. S. Loizidou - ACSC345

  18. Example Intangible Benefits • Improved asset use; resource control; planning • Increased flexibility • More timely information • Increased learning • Attain legal requirements • Enhanced employee goodwill, job satisfaction, decision making, operations • Higher customer satisfaction • Better corporate image Dr. S. Loizidou - ACSC345

  19. Summary • Looked at the relationships between IS and business processes • Examples of IS used for business processes with CRM, SCM and ES • Looked at the business value of IS • Examples of costs and benefits of IS Dr. S. Loizidou - ACSC345

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