Mis Unit 4
Mis Unit 4
technology. With today’s sophistication of technology, various kinds of things are easier to do. Information systems
have been used in various fields, one of which is corporate business.
So this information system can be said as a system that combines human activities and the use of technology that
supports management in operational activities.
There are many benefits from the presence of information system applications in the field of education, including
convenience. The convenience offered not only saves time but also saves paper. Therefore this example of an
information system is very useful and widely used in everyday life.
Next is the application of information systems in placing orders online. Reservations that can be made online can be
in the form of transportation tickets, concert tickets, and hotels. Apart from these things, many other things can be
ordered online, either on a website or an application.
The way it works is also very easy, one only needs to choose what things they want to order online. Later that
person will get evidence in the form of a successful booking. After the evidence is obtained, the person can
immediately exchange the existing ticket.
The office automation system is the advantage of information system applications that can combine various kinds of
information technology equipment on server devices for computer network needs. The main purpose is usually used
to simplify the communication process so that it runs more effectively and efficiently.
The last example is the transaction processing system which is an information system for organizations and
companies on certain routine business operations. The implementation process of this transaction processing system
includes financial transaction activities, re-registration, and various other administrative activities.
This system functions in terms of monitoring or supervision of company management. Furthermore, this system is
also connected to the fields of work units in finance, marketing, operations, and others. Things that used to take a
long time can now be done in a short time.
Perhaps the most widely heard and most often heard is that AI is applied to mobile phones. The way this system
works is to solve existing problems with the knowledge of the experts who have been included in it. So the system
that is processed to produce this information still comes from humans as well.
INTRODUCTION
Businesses use Enterprise Decision Support System (DSS) systems to analyze complex data, generate reports, and
support decision-making processes. These systems help improve business decision-making in several ways:
Better data analysis: DSS systems allow businesses to collect and analyze large amounts of data quickly and
accurately. This helps executives and managers make more informed decisions based on real-time data.
Improved forecasting: By analyzing past trends and patterns, DSS systems can help businesses forecast future
market trends and make better decisions about product development and pricing strategies.
Streamlined processes: DSS systems can automate many business processes and provide decision-makers with the
necessary data to make quick, informed decisions. This can help businesses save time and money by streamlining
operations.
Increased efficiency: DSS systems allow decision-makers to quickly identify problems and create solutions in real
time. This can help businesses operate more efficiently and make better use of resources.
DSS systems help businesses make better decisions by providing accurate and timely data, improving forecasting
abilities, streamlining processes, and increasing efficiency.
Some specific examples of decision support systems for business include:
Business Intelligence (BI): BI systems provide businesses with data analytics tools to extract and analyze data from
various sources, such as databases and data warehouses. The system generates reports, dashboards, and visualization
tools to help managers make informed decisions.
Customer Relationship Management (CRM): CRM systems help businesses manage customer interactions and
relationships. The system collects and tracks customer data, such as their buying habits, preferences, and complaints.
The system then provides this information to management to enable them to make informed decisions about
customer service, marketing, and product development.
Supply Chain Management (SCM): SCM systems help businesses manage their supply chain activities, from
procurement to delivery. The system monitors inventory levels, tracks orders, and analyzes supplier performance,
among other things. The system then provides this information to management to enable them to make informed
decisions about inventory management, supplier selection, and logistics.
Enterprise Resource Planning (ERP): ERP systems provide businesses with a centralized database of business-
related information. The system includes modules for various functions, such as accounting, sales, marketing, and
logistics. The system then provides this information to management to enable them to make informed decisions
about resource allocation, customer service, and financial management.
Decision support systems are critical tools for modern businesses to make informed decisions. They help businesses
manage customer interactions and relationships, supply chain activities, financial transactions, and resource
allocation. By providing structured and interactive access to data and analysis tools, decision support systems enable
businesses to be more responsive, efficient, and competitive in a rapidly changing business environment.
BUSINESS DECISION-MAKING
The process of decision-making in business can vary depending on the nature of the decision, the size of the
business, and the level of complexity involved. However, most businesses follow a similar decision-making process,
which includes the following steps:
1. Identify the problem or opportunity: This step involves identifying a problem or opportunity that needs to be
addressed. This can be done by conducting market research, analyzing sales data, or identifying a gap in the
market.
2. Gather relevant data: After identifying the problem or opportunity, businesses need to gather relevant data to
support their decision-making process. This can be done through surveys, data analysis, or market research.
3. Analyze the data: Once the data has been gathered, businesses need to analyze it to understand the implications
of different options. This can involve using statistical analysis, data visualization, or other analytical tools.
4. Identify options: Based on the data analysis, businesses can identify different options that can address the
problem or opportunity. This can involve brainstorming, SWOT analysis, or other decision-making frameworks.
5. Evaluate options: After identifying different options, businesses need to evaluate them based on relevant criteria
such as cost, feasibility, impact on the business, and alignment with the business objectives. This can involve
creating a decision matrix or using other evaluation tools.
6. Make a decision: Based on the evaluation of different options, businesses can make a decision that aligns with
their objectives and addresses the problem or opportunity.
7. Implement the decision: Once the decision has been made, businesses need to implement it. This can involve
developing an action plan, allocating resources, and communicating the decision to relevant stakeholders.
8. Monitor and adjust: After the decision has been implemented, businesses need to monitor its performance and
make adjustments as necessary. This can involve measuring key performance indicators, gathering feedback, and
making changes to the decision as needed.
ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM
Enterprise Resource Planning (ERP) is a software solution designed to help organizations manage their business
processes and streamline their operations. It is a centralized system that provides a unified view of a company’s
data, allowing different departments to access relevant data and collaborate effectively. ERP systems integrate all
business functions and data, including financial management, human resources, supply chain management, customer
relationship management, project management, and more.
An ERP (Enterprise Resource Planning) system supports business decision-making in several ways:
Real-Time Data – An ERP provides real-time data that can be used to make informed decisions. This data includes
all aspects of the company, such as finances, inventory, production, and sales.
Improved Analysis – An ERP system provides advanced analytical tools that help businesses analyze data in detail.
These analyses help businesses identify trends, patterns and performance insights, allowing decision-makers to make
informed decisions.
Consistency – An ERP establishes standard processes used throughout an organization, helping to streamline
decision-making. It creates a consistent and reliable way of measuring all areas of the organization, ensuring that
decisions are based on accurate and reliable information.
Integration – An ERP integrates all business functions into a single platform, making it easy for decision-makers to
access all the data they need to make decisions.
Agility and Efficiency – An ERP helps improve efficiency and agility of decision-making processes by enabling
timely and seamless access to data. Decision-makers can make quick, data-driven decisions in real-time, reducing
risks and increasing overall profitability.
To summarize, an ERP provides a centralized platform that provides accurate, up-to-date information to decision-
makers, empowering them to make informed, data-driven decisions that positively impact the growth and
development of the business.
Enterprise Modeling
Within CDD, Enterprise Modeling is used to capture and document the existing organizational design in terms of
business goals, problems, KPIs, business processes, concepts, etc. The overall vision of the CDD approach is to use
(and update if necessary) the models that the organization already has for capability design.
Goals Model (GM) focuses on describing the goals of the enterprise. Here we describe what the enterprise and its
employees want to achieve, or to avoid, and when. Goals Models usually clarify questions, such as: where should
the organisation be moving, that are the goals of the organisation what are the importance, criticality, and priorities
of these goals, how are goals related to each other, which problems are hindering achievement of goals.
Business Rule Model (BRM) is used to define and maintain explicitly formulated business rules, consistent with the
Goals Model. Business Rules may be seen as operationalization or limits of goals. BRM usually clarifies questions,
such as: which rules affect the organisation’s goals, are there any policies stated, how is a business rule related a
goal, how can goals be supported by rules
Concepts Model (CM) is used to strictly define the “things” and “phenomena” one is talking about in the other
models. We represent enterprise concepts, attributes, and relationships. Concepts are used to define more strictly
expressions in the Goals Model as well as the content of information sets in the Business Processes Model. CM
usually clarifies questions, such as: what concepts are recognised in the enterprise (including their relationships to
goals, activities and processes, and actors), how are they defined, what business rules and constraints monitor these
objects and concepts.
Business Processes Model (BPM) is used to define enterprise processes, the way they interact and the way they
handle information as well as material. A business process is assumed to consume input in terms of information
and/or material and produce output of information and/or material. Business Process Model usually clarifies
questions, such as: which business activities and processes are recognised in the organisation, or should be there, to
manage the organisation in agreement with its goals? How should the business processes, tasks, etc. be performed
(workflows, state transitions, or process models)? Which are their information needs.
Actors and Resources Model (ARM) is used to describe how different actors and resources are related to each
other and how they are related to components of the Goals Model, and to components of the Business Processes
Model. For instance, an actor may be the responsible for a particular process in the BPM or, the actor may pursue a
particular goal in the GM. ARM usually clarifies questions, such as: who is/should be performing which processes
and tasks, how is the reporting and responsibility structure between actors defined.
Technical Components and Requirements Model (TCRM) becomes relevant when the purpose of EKD is to aid
in defining requirements for the development of an information system. Attention is focused on the technical system
that is needed to support the goals, processes, and actors of the enterprise.
Enterprise resource planning (ERP) systems help organizations automate and streamline business processes for
optimal performance. They coordinate data flow between a company’s different business processes to create a single
source of truth.
Key takeaways
ERP software manages financial activities, accounting, bookkeeping, project management, and supply
chain operations.
They create a single source of truth for employees and executives.
Businesses should assess ERP providers' capabilities, implementation models, integration needs, and total
cost of ownership before choosing a system
While ERP systems can vary, they provide these five essential business functions:
ERP systems centralize financial data for streamlined tracking, management, and input.
This saves time, minimizes input errors, and utilizes automated data consolidation, centralized formulas, and key
performance indicators for generating comprehensive financial reports.
These reports offer insights into a company’s financial health and guide resource allocation decisions.
2. Commerce
ERP platforms provide omnichannel solutions that unify online, in-store, and back-office commerce activities.
By using automated inventory updates, order tracking, and accounting, companies can easily manage the different
facets of their business.
Some ERP systems even offer customer relationship management tools. These CRM capabilities manage customer
data, contact information, accounts, and service requests.
It can also help automate marketing, sales, and customer service processes.
ERP systems support human resource teams by consolidating employee data. They help HR automate manual
workflows, reduce errors, and improve collaboration.
By tracking employee data like contact information, job roles, and salary information, ERP systems ensure smarter
business decisions in a fraction of the time.
4. Supply chain
Supply chain management includes inventory, warehouse, vendor, and order management. ERP systems support all
of these functions by:
An ERP solution in SCM improves demand forecasting accuracy and reduces inventory costs during large-batch
production processes.
A lean inventory is essential to successfully address just-in-time production methods. You can keep your supply
chain flexible while reducing the overall cost of production.
ERPs for supply chains enable easy collaboration between internal processes and external suppliers.
A consolidated view of the supply chain with ERP enables business executives to make more informed decisions.
5. Manufacturing industry
Companies can also use ERP systems to help manage production schedules, track inventory levels, and control
quality.
ERP benefits
ERP systems offer a multitude of benefits that can significantly enhance business operations.
Cost savings
Streamlined processes: Automating tasks like data entry, reporting, and inventory management reduces
operational inefficiencies and minimizes manual intervention, cutting labor costs and enhancing
productivity.
Better resource management: Real-time visibility across finance, procurement, manufacturing, and sales
enables optimized resource allocation, prevents inventory overstocking or understocking, and reduces
carrying costs. Accurate financial forecasting and demand planning align production schedules with
customer demand, minimizing waste and excess inventory holding costs.
Reduced IT costs: Centralized data storage and standardized processes in ERP systems consolidate IT
systems, lowering maintenance, licensing, and upgrade expenses for long-term savings.
What is ecommerce?
Ecommerce is when individuals and companies buy or sell goods and services over the internet. Ecommerce can
happen through a website, smartphone app, social media platform, online marketplace, or other sales platform.
Common examples of ecommerce include online shopping, electronic payments, online auctions, and internet
banking. You can participate in ecommerce anywhere with an internet connection. The goal of ecommerce for a
seller is to drive sales using digital platforms and marketing strategies.
Ecommerce is also known as e-commerce or electronic commerce, and is often used to refer to the wide range of
tasks involved in selling online, from running digital ads to transferring payment data over a network.
Ecommerce platforms: Sellers choose an online sales platform like a website, marketplace, or social media
to list their products and allow customers to browse and place orders.
Payment processors: Customers pay using methods like credit cards or digital wallets at checkout.
Transactions are secured by online payment gateways.
Fulfillment and delivery: Sellers prepare, package, and ship products to customers. They may fulfill orders
themselves or partner with a fulfillment service that manages shipping. For digital products like ebooks or
online courses, the product is provided via a portal or download link.
Supporting services: Various services and industries support ecommerce, including product suppliers,
advertising platforms, and ecommerce apps that help sellers enhance the shopping experience.
What is business process reengineering (BPR)?
Business process reengineering (BPR) is the radical redesign of business processes to achieve dramatic
improvements in performance, efficiency, and effectiveness.
Business process engineering (BPR) is a strategic management approach that is focused on fundamentally rethinking
and redesigning core business processes to achieve significant improvements in performance and efficiency .