TRƯỜNG CÔNG NGHỆ VÀ THIẾT KẾ

KHOA CÔNG NGHỆ THÔNG TIN KINH DOANH

Chapter 7

Processes,
Organizations, and
Information Systems

Giảng viên: ThS. Bùi Xuân Huy

Email: [email protected]
 AGENDA

Q1 • What Are the Basic Types of Processes?

• How Can Information Systems Improve

Q2 Process Quality?
• How Do CRM, ERP, and EAI Support
Q3 Enterprise Processes?

Q4 • What Are the Elements of an ERP System?

• What Are the Challenges of Implementing
Q5 and Upgrading EIS

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 Q1. What Are the Basic Types of
Processes?

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 REMIND

 A business process is a network of activities

that generate value by transforming inputs
into outputs
 Activities are subparts of processes that
receive inputs and produce outputs
 Activities can be performed by humans only,
by humans augmented by computer systems,
and by computer systems only

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 Structured Processes vs
Dynamic Processes
 Structured processes:
 Formally defined, standardized processes
 Involve day-to-day operations

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 Structured Processes vs
Dynamic Processes
 Dynamic processes
 Flexible, informal, and adaptive processes
 Involve strategic and less structured
managerial decisions and activities
 Require human judgment

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 Structured Processes vs
Dynamic Processes

Source: Textbook [1] - Figure 7-2. Structured Versus Dynamic Processes

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 How Do Processes Vary by
Organizational Scope?
 Workgroup process: to enable workgroups to
fulfill the charter, purpose, and goals of a
particular group or department.
 Workgroup information system
(functional information systems): to
support one or more processes within the
workgroup
 Functional application: The program
component of a functional information system
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 How Do Processes Vary by
Organizational Scope?

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 How Do Processes Vary by
Organizational Scope?

Source: Textbook [1] - Figure 7-3. Common Workgroup Processes

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 How Do Processes Vary by
Organizational Scope?
 Enterprise Processes: span an organization
and support activities in multiple departments
 Enterprise information systems: support
one or more enterprise processes
 Examples: CRM, ERP, and EAI

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 How Do Processes Vary by
Organizational Scope?
 Inter-enterprise Processes: span two or more
independent organizations
 Inter-enterprise information systems:
support one or more inter-enterprise
processes
 Examples: Supply chain management (SCM)

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 How Do Processes Vary by
Organizational Scope?

Source: Textbook [1] - Figure 7-4. Characteristics of Information Systems

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 Q2. How Can Information
Systems Improve Process
Quality?

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 How Can Processes Be
Improved?
 Organizations can improve the quality
(efficiency and/or effectiveness) of a process
in one of three ways:
 Change the process structure.
 Change the process resources.
 Change both process structure and
resources

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 How Can Information Systems
Improve Process Quality?
 Information systems can be used to improve
process quality by:
 Performing an activity.
 Augmenting a human who is performing
an activity.
 Controlling data quality and process flow.

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 Q3. How Do CRM, ERP, and EAI
Support Enterprise Processes?

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 The Need for Business
Process Engineering
 To use the shared databases
 To use new computer-based forms and
reports
 Business process reengineering: the
activity of altering existing and designing new
business processes to take advantage of new
information systems.

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 Customer Relationship
Management (CRM)
 A customer relationship management
(CRM) system:
 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
 Every contact and transaction with the
customer is recorded in the CRM database

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 Customer Relationship
Management (CRM)

Source: Textbook [1] - Figure 7-8. The Customer Life Cycle

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 Customer Relationship
Management (CRM)
 Customer life cycle
 Marketing: sends messages to the target market
to attract customer prospects
 Customer acquisition: when prospects order,
they become customers who need to be
supported
 Relationship management: increase the value
of existing customers by selling them more
product
 Loss/churn: the organization loses customers
over time
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 Customer Relationship
Management (CRM)
 The major components of a CRM application

Source: Textbook [1] - Figure 7-9. CRM Applications

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 Enterprise Resource
Planning (ERP)
 Enterprise resource planning (ERP)
 Is a suite of applications (called
modules), a database, and a set of
inherent processes for consolidating
business operations into a single,
consistent, computing platform
 An ERP system is an information system
based on ERP technology

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 Enterprise Resource
Planning (ERP)

Source: Textbook [1]

Figure 7-10. ERP Applications

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 Enterprise Resource
Planning (ERP)
 The primary purpose of an ERP system is
integration
 This integration allows real-time updates
globally, whenever and wherever a
transaction takes place

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 Enterprise Resource
Planning (ERP)

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Source: Textbook [1] - Figure 7-11. Pre-ERP Information Systems
 Enterprise Resource
Planning (ERP)

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Source: Textbook [1] - Figure 7-12. ERP Information Systems
 Enterprise Application
Integration (EAI)
 Enterprise application integration (EAI)
 Is a suite of software applications that
integrates existing systems by providing
layers of software that connect
applications together

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 Enterprise Application
Integration (EAI)
 EAI does the following:
 It connects system “islands” via a new layer
of software/system.
 It enables existing applications to
communicate and share data.
 It provides integrated information.
 It leverages existing systems – leaving
functional applications as is but providing an
integration layer over the top.
 It enables a gradual move to ERP.
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 Enterprise Application
Integration (EAI)

Source: Textbook [1] - Figure 7-14. Design and Implementation

for the Five Components

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 Enterprise Application
Integration (EAI)
 The layers of EAI software enable existing
applications to communicate with each other and
to share data
 There is no centralized EAI database
 EAI software keeps files of metadata
 Users can access the EAI system to find the data
 EAI system provides services that provide a
“virtual integrated database” for the user to
process

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 Q4. What Are the Elements of an
ERP System?

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 What Are the Elements of an
ERP System?
 True ERP product includes integrated
applications
 Supply chain
 Manufacturing
 CRM
 Human resources
 Accounting

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 What Are the Elements of an
ERP System?
 An ERP solution is an information system that
has all five components:
 Hardware (in-house, cloud-base hosting)
 ERP Application Programs
 ERP Databases
 Business Process Procedures
 Training and Consulting

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 What Are the Elements of an
ERP System?
 Top ERP Vendors
1. SAP
2. Oracle
3. Infor
4. Sage
5. Microsoft Dynamics

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 Q5. What Are the Challenges of
Implementing and Upgrading
Enterprise Information Systems?

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 Five primary factors

Source: Textbook [1] - Figure 7-17. Five Primary Factors

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 Q&A

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