Experiencing MIS 9th by m kronenke chapter 07
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Chapter 7
Processes, Organizations, and Information Systems
“How Much Money Does a System Own?
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Who are the target customers and how to induce them to buy?
Doctors?
– Care about medicine and operations, some care about costs
– Not focused on exercise.
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Insurance companies?
– Exercise doesn’t prevent disease.
– When people get in good shape, they live longer, and their long-term health care expenses increase.
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Who Will Pay?
• Health clubs.
• Employers.
• Selling ad space to health clubs and manufacturers.
• Social media–driven.
• Can PRIDE support 10,000 people spinning at the same time?
• Who to monetize PRIDE?
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Study Questions
Q1: What are the basic types of processes?
Q2: How can information systems improve process quality?
Q3: How do information systems eliminate problems of information silos?
Q4: How do CRM, ERP, and EAI support enterprise processes?
Q5: What are the elements of an ERP system?
Q6: What are the challenges of implementing and upgrading enterprise information systems?
Q7: How do inter-enterprise IS solve the problems of enterprise silos?
Q8: 2026?
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Q1: What Are the Basic Types of Processes?
Business Process with Three
Activities
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How Do Structured Processes Differ from Dynamic Processes?
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How Do Processes Vary
by Organizational
Scope?
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Characteristics of Information Systems
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Q2: How Can Information Systems Improve Process Quality?
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Process efficiency
– Ratio of outputs to inputs.
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Process effectiveness
– How well a process achieves organizational strategy.
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How can processes be improved?
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Change process structure.
Change process resources.
Change both.
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How Can Information Systems Improve Process Quality?
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Performing an activity.
– Partially automated, completely automated.
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Augmenting human performing activity.
– Ex: Common reservation system.
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Controlling data quality.
– Ensure data complete and correct before continuing process activities.
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Q3: How Do Enterprise Systems Eliminate the Problem of Information Silos?
• What are the problems of information silos?
– Data duplicated.
– Data inconsistency.
– Data isolated.
– Disjointed processes.
– Lack of integrated enterprise information.
– Inefficiency: decisions made in isolation.
– Increased cost for organization.
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Problems Created by Information Silos
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How Do Organizations Solve the Problems of Information Silos?
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Integrate into single
database.
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Revise applications.
Allow isolation, manage to
avoid problems.
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An Enterprise System for Patient Discharge
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Q4: How Do CRM, ERP, and EAI Support Enterprise Processes?
• Business Process Reengineering (BPR)
– Integrated data, enterprise systems create stronger, faster, more effective linkages in value chains.
– Difficult, slow, exceedingly expensive.
– Key personnel determine how best to use new technology.
– Requires high-level and expensive skills and considerable time.
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Emergence of Enterprise Application Solutions
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Inherent processes
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Predesigned processes for using application.
“Industry best practices”.
Customer relationship management (CRM).
Enterprise resource planning (ERP).
Enterprise application integration (EAI).
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Customer Relationship Management (CRM)
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Suite of applications, database, set of inherent processes.
Manage all interactions with customer through four phases of customer life cycle.
Marketing, customer acquisition, relationship management, loss/churn.
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Supports customer-centric organization.
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Customer Life
Cycle
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CRM Applications
CRM functionality
varies
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ERP Applications
Primary purpose is
integration
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Pre-ERP Information System: Bicycle Manufacturer
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ERP Information Systems
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ERP Enabled Sales Dashboard
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Enterprise Application Integration (EAI)
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Connects system “islands.”
Enables communicating and sharing data.
Provides integrated information.
Provides integrated layer on top of existing systems while leaving functional applications “as is.”
Enables gradual move to ERP.
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Design and Implementation for the Five Components
Virtual Integrated
Database
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