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Transcript of 8d893MODULE 1 (IIIRD CLASS).ppt
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Amity Business School
COURE: MBA(HR)
MANAGEMENT INFORMATION SYSTEM
MODULE ICLASS-IV
FACULTY:
ANITA VENAIK
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Amity Business School
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Firm (or organization) - Consists of a largenumber of interdependent business processes
that work together to generate products of
services in a bus iness envi ronment
ORGANIZATIONAL STRUCTURE: Refer to organizational
subunits and the way they relate to the overall organization.
An organization structure depends on it goals and approachto management and can affect how it views and use
information system.
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Amity Business School
Business Process
A business process is a sequence of activities followed
by individuals in a business to achieve some business
goal.
Often these are manual activities executed by
employees who play certain roles in the business in
addition to others who are external to the business:
cus tomers, bus iness partners, etc.
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Business process consists of
Manner in which work is organized, coordinated, andfocused to produce a valuable product or service
Concrete work flows of material, information, and
knowledge—sets of activities
Unique ways to coordinate work, information, and
knowledge
Ways in which management chooses to coordinate work
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Amity Business School
Business Processes and Information Systems
Information systems help organizations
achieve great efficiencies by automating parts
of processes
IS also contributes to completely rethinking
processes.
Business processes typically span several
different functional areas.
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An Example of Business Process
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Examples of Business Processes
Manufacturing and production:
Assembling product, checking quality, producingbills of materials
Sales and marketing:
Identifying customers, creating customerawareness, selling
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Amity Business School
Finance & accounting:
Paying creditors, creating financial statements,managing cash accounts
Human resources:
Hiring employees, evaluating performance,enrolling employees in benefits plans
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Cross-Functional Business Processes:
Transcend boundary between sales, marketing,
manufacturing, and research and development
Group employees from different functional
specialties to a complete piece of work
Example: Order Fulfillment Process
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The Order Fulfillment Process
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Enterprise applications:
Designed to support organization-wide process
coordination and integration
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This is what it does: attempts to integrate all data
and processes of an organization into a unified
system. A typical ERP system will use multiple
components of computer software and hardware to
achieve the integration. A key ingredient of mostERP systems is the use of a unified database to
store data for the various system modules.
BUINESS PROCESS USING ERP SYSTEMS
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ERPs are cross-functional and enterprise wide. Allfunctional departments that are involved in
operations or production are integrated in one
system. In addition to manufacturing, warehousing,
logistics, and Information Technology, this wouldinclude accounting, human resources, marketing,
and strategic management.
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SAP, Oracle Applications, PeopleSoft,
JD Edwards, Great plains etc. areworld’s leading ERP packages
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Traditional “Silo” View of Information
Systems
Within the business:
There are functions, each having its uses ofinformation systems
Outside the organization’s boundaries:
There are customers and vendors
Functions tend to work in isolation
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Traditional View of Systems
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Enterprise Systems
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Benefits of Enterprise Systems
Help to unify the firm’s structure and
organization: One organization
Management: Firm wide knowledge-basedmanagement processes
Technology: Unified platform
Business: More efficient operations & customer-
driven business processes
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Challenges of Enterprise Systems
business processes
• Difficult to build: Require fundamental changes in
the way the business operates
• Technology: Require complex pieces of software
and large investments of time, money, and
expertise
• Centralized organizational coordination and
decision making: Not the best way for the firms to
operate
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The
Manager as aDecision Maker
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Managerial Decision Making
• Decision making: the process by whichmanagers respond to opportunities andthreats by analyzing options, and making
decisions about goals and courses ofaction.
• Decisions in response to opportunities: managers respond to ways to improve
organizational performance.• Decisions in response to threats: occurs
when managers are impacted by adverse
events to the organization.
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Types of Decision Making
• Programmed Decisions: routine, almost automaticprocess.
– Managers have made decision many times before.
– There are rules or guidelines to follow.
– Example: Deciding to reorder office supplies.
• Non-programmed Decisions: unusual situations thathave not been often addressed.
– No rules to follow since the decision is new.
– These decisions are made based on information,
and a manger’s intuition, and judgment. – Example: Should the firm invest in a new
technology?
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The Classical Model
• Classical model of decision making: aprescriptive model that tells how thedecision should be made.
– Assumes managers have access to all theinformation needed to reach a decision.
– Managers can then make the optimum decision
by easily ranking their own preferences amongalternatives.
• Unfortunately, mangers often do not haveall (or even most) required information.
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The Classical Model
List alternatives
& consequences
Rank each alternative
from low to high
Select best
alternative
Assumes all information
is available to manager
Assumes manager can
process information
Assumes manager knows
the best future course of
the organization
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The Administrative Model
• Administrative Model of decisionmaking: Challenged the classicalassumptions that managers have andprocess all the information.
– As a result, decision making is risky.Bounded rationality: There is a large
number of alternatives and information isvast so that managers cannot consider it all.
– Decisions are limited by people’s cognitiveabilities.
Incomplete information: most managers donot see all alternatives and decide based on
incomplete information.
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Why Information is Incomplete
Uncertainty
& risk
Ambiguous
Information
Time constraints &
information costs
Incomplete
Information
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Incomplete Information Factors
• Incomplete information exists due to manyissues:
– Risk: managers know a given outcome can fail
or succeed and probabilities can be assigned. – Uncertainty: probabilities cannot be given for
outcomes and the future is unknown.
• Many decision outcomes are not known such as a
new product introduction. – Ambiguous information: information whose
meaning is not clear.
• Information can be interpreted in different ways.
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Decision Making Steps
Recognize need fora decision
Frame the problem
Generate & assessalternatives
Choose among alternatives
Implement chosenalternative
Learn from feedback
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Decision Making Steps
1. Recognize need for a decision: Managersmust first realize that a decision must bemade.
• Sparked by an event such as environment changes.
2. Generate alternatives: managers must
develop feasible alternative courses ofaction.• If good alternatives are missed, the resulting decision
is poor.
• It is hard to develop creative alternatives, somanagers need to look for new ideas.
3. Evaluate alternatives: what are theadvantages and disadvantages of eachalternative?
• Managers should specify criteria, then evaluate.
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Evaluating Alternatives
• Is it legal? Managers must first be sure thatan alternative is legal both in this countryand abroad for exports.
• Is it ethical? The alternative must be ethicaland not hurt stakeholders unnecessarily.
• Is it economically feasible? Can ourorganization’s performance goals sustainthis alternative?
• Is it practical? Does the management havethe capabilities and resources to do it?