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
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.
*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:
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.
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
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?
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.
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
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.
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.
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.
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.
The use of information technology to support the sharing of content among networks of users.
-Building communities is a basic need for humans. Social media communities are formed based on mutual interests and transcend familial, geographic, and organizational boundaries.
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)
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
relationships in social networks can provide information about opportunities, alternatives, problems, and other factors that are important to business professionals.
Social relationships also provide information that can influence decision makers in ones employer or in other organizations who are critical to your success.
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.
Social networks can reinforce a professional image and position in a company and industry
refers to a loose grouping of capabilities, technologies, business models, and philosophies.
Web 2.0 Characteristics
Frequent releases of thin client applications, Business model relies on advertising or other revenue from use,
the interface may change, or include mash-ups of multiple sites; constant change
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.
Three Primary Activities in the Business Intelligence Process:
Data acquisition, BI analysis, Publish results:
the process of obtaining, cleaning, organizing, relating, and cataloging source data
the process of creating business intelligence (reporting, data mining, and knowledge management)
the process of delivering business intelligence to the knowledge workers who need it
: delivers business intelligence to users without result of an event or particular data condition.
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.
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.
An OLAP Cube or Report
the way the data is presented in a format in in Microsoft SQL Server Analysis (or excel)
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.
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
defining the Goals and Scope, Assessing feasibility, Form project team, Plan the project
conduct user interviews, evaluate existing systems, determine new forms/reports/queries, consider security, create the data model, Consider all five components
determine hardware, determine program specifications, design the database, create job definitions
Build system components, conduct unit test, integrate components, convert to the new system
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
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
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
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)