COMM 205 Quiz 1
Terms in this set (41)
What is BT?
Business Technology (BT) is the application of IT (Information Technology) to deliver a business capability or automate a business operation.
Business Technology can be thought of as the result of configuring, implementing, applying, and using IT to produce a business result.
What does BTM mean?
Business Technology Management (BTM) is a set of processes and services that unite an enterprise's business technology (BT) and business management (BM) strategies to extract total BT solution value potential.
Why study BTM?
Technology is at the heart of everything that happens and employers need people who understand how to harness technology to meet the changing needs of this fast paced world.
BTM is not just business. It's not just technology. It's Business + Technology + Management.
Why new leaders need to understand technology?
All types of companies lack qualified leaders to effectively lead their companies amid digital disruption, but maturing companies are far more likely to do something about it and actively develop those leaders.
How is digital business different?
Digital business requires companies to act and respond faster than they ever have before.
"It's the speed at which the landscape is changing through digital, allowing new competitors to play, that makes it really transformative."
Challenges of competing in a digital environment
The need for experimentation is something established companies struggle with, because they are often driven by a fear of failure.
"Many early-stage companies overestimate the technological component of digital maturity while more maturing companies regard the challenges in organizational terms.
Critical dimensions of BTM
1. Business Processes
3. Data and
To effectively implement BTM requires that processes be evaluated to ensure the following:
Efficiency - Doing things right (quickly with little redundancy)
Effectiveness - Doing the right things
Management processes are more likely to succeed when they are supported by appropriate organizational structures based on clear understanding of roles, responsibilities, and decision rights. Such organizational structures generally include the following:
Participative bodies - involve senior-level business and technology participants on a part-time but routine basis
Centralized bodies - require specialized, dedicated technology staff
Needs-based bodies - involve rotational assignments, created to deal with particular efforts
Data and information
Valid, timely information is a prerequisite for effective decision making. This information must be delivered in a way that is comprehensible to non-specialists and, at the same time, actionable in terms of informing choices that matter.
Useful information does not just happen. It depends on the interaction of two related elements: data and metrics.
Data must be available, relevant, accurate and reliable.
Metrics distill raw data into useful information. Thus, metrics need to be appropriate and valid for strategic and operational objectives.
Effective technology can help connect all the other dimensions.
Appropriate technology helps make processes easier to execute, facilitates timely information sharing, and enables consistent coordination between elements and layers of the organization. It does this through the following:
Automation of manual tasks
Analytics for decision making
Integration between management systems
Differences between IS and IT
Information Systems (IS) is not the same as Information Technology (IT)
Technologies are tools.
An Information System is the collection of tools, the
people who use it, and the processes it supports.
An Information System collects, processes, stores, analyzes, and disseminates information for a specific purpose.
Basic components of information systems
PEOPLE ARE THE MOST IMPORTANT
Differences between data and information
Data: Raw facts representing events such as business transactions. Unprocessed facts of interest to end users.
Information: A meaningful aggregation of facts that is useful to human beings in management and decision making.
Data, information, knowledge
Knowledge: Processed data or information that conveys some individuals' understanding or learning applicable to a problem or activity.
Information: Organized data that has meaning and value.
Data: Items that are the most elementary descriptions of things, events, activities, and transactions; internal or external
Major capabilities of information systems
Perform high-speed, high-volume numerical computations.
Provide fast, accurate communication and collaboration within and among organizations.
Store huge amounts of information in an easy-to-access, yet small space.
Allow quick and inexpensive access to vast amounts of information, worldwide.
Interpret vast amounts of data quickly and efficiently.
Automate both semi-automatic business processes
and manual tasks.
What is a Business Process?
A business process (or business method) is a collection of related, structured activities or tasks that produce a specific service or product (serve a particular goal) for a particular customer or customers.
It may often be visualized as a flowchart of a sequence of activities with interleaving decision points.
Swim Lane Flowchart
The swim lane flowchart differs from other flowcharts in that processes and decisions are grouped visually by placing them in lanes, with one lane for each person, group or sub-process
Swim lanes serve to clarify not only the steps and who is responsible for each one, but also how delays or mistakes are most likely to occur.
What is a Cross-Functional Business Process?
This is a process in which no single functional area is responsible for its completion; multiple functional areas collaborate to perform the function.
For example, product development involves research, design, engineering, manufacturing, marketing, and distribution.
result in a product or service received by an organization's external customer.
are invisible to the external customer but are essential to the effective management of the business.
A value chain
A value chain usually describes a major line of business. An organization may have a few value chains.
A value chain is usually decomposed into a few business processes (e.g., a supply chain, a new product development process.)
Processes usually contain a few sub-processes.
Activities are the lowest level process
Why are Business Processes Important?
Examining business processes helps an organization:
eliminate duplicate activities,
combine related activities, and
identify smooth-running processes.
To stay competitive, organizations must optimize and automate their business processes.
When to Initiate Business Process Change?
Companies should initiate a business process change when:
1. there has been a pronounced shift in the market the process was designed to serve;
2. the company is below industry benchmarks on its core processes; or
3. the company needs to regain competitive advantage.
Alternative business process should be effective (they deliver the intended results) and efficient (they consume the least amount of resources for the intended value.)
How to Analyze a Business Process?
1. Look for signs of process inefficiency such as long queues.
2. Interview key process participants.
3. Conduct group interviews.
4. Summarize the information.
5. Create a process flowchart (or process map).
6. Perform task analysis.
7. Compare the results from individual interviews.
8. Identify activities and task outputs that are unnecessary
9. Sketch the business process from scratch
10. Identify potential process changes.
Common, Routine, day-to- day
Ex: Order supplies, pay bills, checking out customers
Allocation and use of resources
Ex: Assess seasonal promotion, plan and schedule staff resources
Broad scope, organizational issues
Ex: Decide on new restaurant location, corporate budgeting, new product introduction
Options for Improving a Process with an IS
1. Improve an Activity
2. Improve Data Flow Among Activities
3. Improve Control of Activities
4. Use Automation
5. Improve Procedures
Organizations must go beyond the basics when implementing business process improvement and realize that it is not a one-time project.
Continuous monitoring and improving core business processes will guarantee performance improvements across an organization.
What is a transaction
A transaction is any business event that generates data worth being captured and stored in a database.
Student registration, sales order processing, flight booking, funds transfer, etc.
What are Transaction Processing Systems
Transaction processing system (TPS) supports the monitoring, collection, storage and processing of data generated by each of the organization's basic business transactions. The data is input to the organization's database.
How TPS Manage Data
TPS must handle high volumes of data, avoid errors and provide a highly secure and stable environment.
The database has to be protected from errors resulting from overlapping or concurrent updates.
the database has to be protected against inconsistencies arising from system failure.
A transaction must be reversible.
An audit trail or log of transaction flow must be
Major Features of TPS (5)
System response time is critical in TPS. It's the amount of time it takes for an information system to respond to a request or input from a user.
System performance is also measured by the number of transactions the system can process in a given period of time, e.g. 100 transactions per second.
The system must be available whenever it is needed.
System availability is the percentage of time that a given system is active and working.
3. Data Integrity
Data integrity refers to the overall completeness, accuracy and consistency of data. It aims to prevent unintentional changes to information.
4. Ease of Use
The system should be simple for users to understand, protect them from data-entry errors as much as possible, and allow them to easily correct their errors.
5. Modular Growth
The system should be capable of growth at incremental costs, rather
than requiring a complete replacement.
It should be possible to add, replace or update hardware and software components without shutting down the system.
What Problems Does an ERP System Solve?
An information silo is isolated data stored in separated information systems.
Difficulties in consolidating meaningful and accurate reporting. Time consuming, labor intensive, incomplete and often inaccurate.
Time-lag of performance data that impedes effective planning and proactive decision-making.
Outdated, manual and paper-intensive processes
Data entry redundancies and errors.
Inefficient use of employee resources.
Order-to-delivery and production delay.
Global expansion complicated due to software integration issues
Difficulties in gathering data to track performance of each new location and its impact on the company as a whole.
Difficulties in managing costs a complex supply chain
Language, currency and cultural barriers
Inefficiencies in managing complex international customer and vendor relationships.
What is ERP?
Enterprise Resource Planning (ERP)
Often called "enterprise system".
Adopts a business process view of the overall organization.
What is ERP?
Integrates all departments and functions throughout an organization into a single information system so that employees can make enterprise-wide decisions by viewing enterprise-wide information on all business operations.
ERP - How does it work?
ERP allows integration among different systems (modules)
Data sharing among different modules
Joint execution among different modules
o Inputting data in one module triggers the execution not only of that module but also all related modules.
Consolidate operational, sales and financial information across multiple departments, sites and international locations
o Provide real-time visibility into business performance spanning the entire organization.
ERP Integrated Data Flows
At the heart of all ERP systems is a database; when a user enters or updates information in one module, it is immediately and automatically updated throughout the entire system.
ERP Analytics and Reporting
An ERP system takes data from across the enterprise, consolidates and correlates the data, and generates enterprise-wide organizational reports
Benefits of ERP Systems
1. Data sharing occurs in real time.
2. Implements integrated processes based on
industry best practices.
3. Managers see more data, leading to better insight.
4. Information silo problem resolved.
5. Better integration with supply chain partners.
Challenges of Implementing ERP Systems
ERP vendor selection
Gap analysis - Identify differences between the business requirements and the capabilities of chosen ERP system - 80/20 rule.
Customization - ERP systems are theoretically based on industry best practices, and the vendors intend that organizations deploy them as is. As a result, users may need to change their existing business processes to fit the predefined business processes of the software.
Data definition and ownership issues.
Data migration - The process of moving, copying, and restructuring data from an existing system to the ERP system. Often, data migration is incomplete because some of the data in the existing system is either incompatible or not needed in the new system.
Change management - Implementing ERP typically requires changes in existing business processes. Underestimating the complexity of the transition or cutover and training required to implement a new ERP system is typically one of the main reasons for project failure.
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