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Structured Processes:

formally defined, standardized processes that involve day to day operations.

Structured Processes:

accepting a return, placing an order, purchasing raw materials

Dynamic Processes:

flexible, informal, and adaptive processes that normally involve strategic and less specific managerial decisions and activities.

Ex: deciding whether to open a new location, how to best solve the problem of excessive product returns

Dynamic Processes

Characteristics Dynamic Processes:

Less specific, fluid, Support strategic and less structural managerial activities, Usually informal

Departmental information system:

an information system that exists to support a departmental process.

Typical departmental information systems...

support 10-100 users and the procedures for using them must be understood by all members using them.

Structured departmental process:

a structured process that exists to enable departmental employees to fulfill character, purpose, and goals of a particular organizational unit.

Enterprise Information System:

information systems that support enterprise processes.

*Typically have hundreds to thousands of users, procedures are formalized and extensively documented

Enterprise Information System...

structured processes that span an organization and support activities in multiple departments. Ex: Charging of membership fees

Structured Enterprise processes:

Structure Inter-enterprise information systems:

information systems that support inter-enterprise processes. Systems usually involve 1000s of users; Solutions to problems usually involve cooperation among different, usually independently owned organizations.

are structured processes that span two or more independent organizations, Ex: Ordering of restaurant supplies from suppliers

Structured inter-enterprise processes:

Process efficiency:

a measure of the ratio process outputs to inputs.

Process effectiveness:

a measure of how well a process achieves organizational strategy.

Organizations can improve (efficiency & effectiveness) a process in one of three ways...

Change process structure, change process resources, change both

Change process structure

Process quality can be changed just by reorganizing the process and has strong bearing on process efficiency

Change the process resources

By changing around variables like human resources you can greatly affect the efficiency/effectiveness of a process.

Change both

Most of the time, a firm may have to change both the structure and the resources of a process unless that process is a simple reordering of tasks

There are three ways Info-systems improve Process Quality

Performing an Activity, Augmenting a Human activity, Controlling Process Flow

-If an information system can control the timeliness of a process flow instead of a human, mishaps like lost orders can be kept from happening

Controlling process flow

Information Silos

*A condition that exists when data is isolated in separated information systems.

Ex of information silo

if an organization uses one information system for order processing and another for customer service, the customer data is isolated in two different systems.

as a consequence of information systems that support departmental rather than enterprise level processes

How do information silos arise?

Islands of automation:

groups of information systems that operate in isolation from one another

What problems do islands of automation cause?

They can duplicate data and cause data inconsistency, Disjointed processes, Increased expense

Solutions for Information Silos

eliminate duplicate data by storing it in a single shared database and revising business processes to use that database.

Business process reengineering:

the activity of altering and designing business processed to take advantage of new information systems.

Customer Resource Management System (CRM):

a suite of applications, a database, and a set of inherent processes for managing all the interactions with the customer, from lead generation to customer service.

Enterprise Resource Planning (ERP) i

a suite of applications called modules, a database, and a set of inherent processes for consolidating business operations into a single, consistent, computing platform.

*ERP systems include

CRM systems, but also accounting for manufacturing, accounting, inventory, and human resource applications.

*The primary purpose of an ERP system is

integration

Elements of an ERP System include:

Supply Chain Manufacturing CRM Human Resources Accounting

Components of an ERP System include:

Sales Applications, Relationship management apps, Customer support apps, Accounting apps, Manufacturing apps

There are four challenges to implementing Enterprise Information Systems:

Collaborative Management, Requirements Gaps, Transition Problems, Employee Resistance

Collaborative Management

In order to resolve business process issues, a business must design a collaborative team that has experts from across all departments to help solve problems.

Requirements Gaps

Because few organizations create their own enterprise information systems, usually a company will pick a vendor for special features and specific functions. Most of the time, however, there are gaps between organization requirements and the applications capabilities.

Transition Problems

When transitioning to an Enterprise system, a company must somehow change from using isolated departmental systems to suing the new enterprise system while continuing to run the business. Such transitions require careful planning and training.

Employee Resistance

People fear change because it threatens their self efficacy. Change needs to be communicated properly in order to ensure that the change is transitioned properly.

Social Media:

The use of information technology to support the sharing of content among networks of users.

groups of people with a common interest

Hives

Three SMIS Roles:

User communities, Social media sponsors, Social Media Application Providers

User communities

-Building communities is a basic need for humans. Social media communities are formed based on mutual interests and transcend familial, geographic, and organizational boundaries.

Viral hook:

some inducement, like a prize or reward for passing a message on through tiers.

Social media sponsors

companies and other organizations that choose to support a presence on one or more SM sites. This means that staff must be trained on this social media platform in order to upkeep a community presence

3. Social Media Application Providers

Create the features and functions of the site, and they compete with one another for the attention of user communities and SM sponsors.(google, linkedIn, facebook)

Social CRM:

a dynamic, SM based CRM process. The relationships between organizations and customers emerge in a dynamic process as both parties create and process content.

Social Capital adds Value in Four ways...

Information, Influence, Social Credentials, Personal Reinforcement

Information:

relationships in social networks can provide information about opportunities, alternatives, problems, and other factors that are important to business professionals.

Influence:

Social relationships also provide information that can influence decision makers in ones employer or in other organizations who are critical to your success.

Social Credentials

Being linked to a network of highly regarded contacts is a form of social credential. You can leverage this title, and flaunt who you are related to.

Personal Reinforcement

Social networks can reinforce a professional image and position in a company and industry

Web 2.0

refers to a loose grouping of capabilities, technologies, business models, and philosophies.

Major winners in Web 2.0

Google, Amazon.com, eBay,

Software as a free service

( provided in the cloud (SaaS) Ex: Google maps, Google docs, Gmail

Web 2.0 Characteristics

Frequent releases of thin client applications, Business model relies on advertising or other revenue from use,

Viral Marketing:

users spread the news about new products

Product value increases with use and users

Reviews dictate

Organic interfaces:

the interface may change, or include mash-ups of multiple sites; constant change

Participation:

there is significant interaction with the information online

Social Media Problem Sources

Junk and Crackpot Contributions, Inappropriate Content, Unfavorable reviews, Mutinous movements

Business Intelligence Systems:

Information systems that process operational and other data to identify patterns, relationships, and trends for use by business professionals and other knowledge workers.

Business intelligence =

patterns, trends, relationships, and data

BI Systems have Five Standard components:

Hardware, Software, Data, Procedures, People

Three Primary Activities in the Business Intelligence Process:

Data acquisition, BI analysis, Publish results:

Data acquisition:

the process of obtaining, cleaning, organizing, relating, and cataloging source data

BI analysis:

the process of creating business intelligence (reporting, data mining, and knowledge management)

Publish results:

the process of delivering business intelligence to the knowledge workers who need it

Push Publishing

: delivers business intelligence to users without result of an event or particular data condition.

Pull Publishing

: requires the user to request BI results.

Four Functions of a Data Warehouse

Catalog data, Obtain data, Cleanse data, Organize and relate data

What are possible problems with Source Data?

Wrong granularity (not fine enough or too fine), dirty data, too much data, missing values

Data Warehouse =

takes data from data manufacturers and cleans and processes the data, and locates the data on a shelf of the data warehouse

Data Mart =

a data collection, smaller than that of a data warehouse, that addresses the needs of a particular department or functional area of the business.

RFM Analysis:

a technique readily implemented with basic reporting operations, is used to analyze and rank customers according to their purchasing patterns. RFM considers how ® recently a customer has ordered, (f) how frequently a customer purchases, and (M)how much money they have spent

Online Analytical Processing (OLAP):

provides the ability to sum, count, average, and perform other simple arithmetic operations on groups of data. The remarkable characteristic of OLAP reports is that they are dynamic.

Measure:

the data item of interest in OLAP

Dimension:

a characteristic of a measure. (ei: purchase date, customer type, customer location)

An OLAP Cube or Report

the way the data is presented in a format in in Microsoft SQL Server Analysis (or excel)

Drill Down:

to further divide the data into more detail.

Data Mining:

the application of statistical techniques to find patterns and relationships among data for classification and prediction.

Unsupervised data mining =

analysts don't create a model or hypothesis before running the analysis. Instead, they apply a data mining application to the data and observe the results.

Supervised Data =

data miners develop a model prior to the analysis and apply statistical techniques to data to estimate parameters of the model.

Market basket Analysis:

an unsupervised data mining technique for determining sales patterns. It shows the products that customers tend to buy together.

Business process:

a network of activities, repositories, roles, resources, and data flows that interact to accomplish a business function.

Business process first =

building the info system components after as a consequence of the design. If this approach is take, the org will engage in business process management and construct system components in the create components stage of the BPM cycle

Information systems first =

this process makes the business process a poor step child of the information system. The focus is on hardware, software, data, and procedures instead of the business structure itself.

Four Components of Feasibility (does this project make sense?)

Cost, schedule, technical, organizational

Systems Development Activities

Business Process Modeling Stage, BPM Create Components Stage, Create and Test Components, Implement Processes Stage,

BPM Create Components Stage

Define the system (system need and project plan), Determine Requirements (approve the requirements), Design System components (System design), Asses Results Stage

System Definition:

defining the Goals and Scope, Assessing feasibility, Form project team, Plan the project

Requirements Analysis:

conduct user interviews, evaluate existing systems, determine new forms/reports/queries, consider security, create the data model, Consider all five components

Component Design:

determine hardware, determine program specifications, design the database, create job definitions

Implementation:

Build system components, conduct unit test, integrate components, convert to the new system

System Conversion Four Types

Pilot Installation, Phased Installation, Parallel Installation, plunge

Pilot Installation:

the organization implements the entire system/business processes on a limited portion of the business. If the system fails, it is only on a portion of the business

Phased Installation:

the new system and processes are installs in phases across the organization. Once given piece works, then the organization installs and tests another piece of the system

Parallel Installation:

the new systems run parallel with the old one until the new system is tested and fully operational. It is expensive because the firm will incur costs of running on both systems

Plunge Installation:

the firm shuts off the old system and starts the new one

System Maintenance:

Occur under the assess results phase of the BPM cycle. This work is either to fix the system so that it works well, or to adapt it to changes in requirements. Prioritizes requests, records failures and enhancements, fixes (patches, service packs, new releases)

Brooks Law:

Adding more people to a late project makes the project later.

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