1 / 19

Maximizing Business Value with Information Systems

Explore the relationship between IS and business processes, the value of IS, and examples of IS in CRM, SCM, and ES. Understand the costs and benefits of IS implementation to enhance business efficiency and competitiveness.

kbedford
Download Presentation

Maximizing Business Value with Information Systems

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  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

More Related