THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT

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CHAPTER 1THE MODERN ORGANIZATION FUNCTIONING IN
A GLOBAL ENVIRONMENT
TECHNOLOGY AND INFORMATION SYSTEMS DDC 1583

• THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL
  ENVIRONMENT
• Business Processes and Business Process
  Management
• Information system Concept and Definitions.
• The Global Web- Based Platform
• Business Pressures, Organizational Responses and
  IT Support.
• Why Are Information System Important to Me?
• The Plan of the Book

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Business Processes Business Process Management
BUSINESS PROCESSES

• A business process is an ongoing collection of
  related activities
• that create a product or a service of value to
  the organization, its business
• partners and / or its customer.
• A process has inputs and outputs and its
  activities can be measured
• Many processes cross functional areas in an
  organization

Example
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Business Processes Business Process Management
BUSINESS PROCESSES
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Business Processes Business Process Management
BUSINESS PROCESSES
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Business Processes Business Process Management
BUSINESS PROCESSES
EXAMPLES OF BUSINESS PROCESSES
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Business Processes Business Process Management
BUSINESS PROCESSES

• Cross- Functional Processes
• - Cross Functional Processes meaning that no
  single functional area is
• responsible for their execution.
• - Multiple functional area collaborate to
  perform the process.
• - Each functional are must execute its
  specific process steps in a coordinated,
• collaborative way.

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Business Processes Business Process Management
BUSINESS PROCESSES

• Cross- Functional Processes
• Procurement Process
• includes all of the tasks involved in
  acquiring needed materials externally from
• vendor.
• Comprises 5 steps that are completed in
  three different functional areas of
• the firm warehouse, purchasing and
  accounting.

1 The warehouse documents this need with a
purchase requisition, which it sends to the
purchasing department
2 In turn, the purchasing department identifies
a suitable vendor, creates a purchase order based
on the purchase requisition, and sends the order
to the vendor
3 When the vendor receives the purchase order, it
ships the materials, which are received in the
warehouse
4 The vendor then send an invoice which is
received by the accounting department
5 Accounting sends payment to the vendor, thereby
completing the procurement process
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Business Processes Business Process Management
BUSINESS PROCESSES

• Cross- Functional Processes
• Fulfillment Process
• is concerned with efficiently processing
  Customer Order.
• is triggered by a Customer Purchase Order
  that is received by the sales
• department.
• Sales then validates the purchase order
  and creates a sales order.
• The sales order communicate date related
  to the order functional areas within
• the organization, and it tracks the
  progress of the offer.
• The warehouse prepares and sends the
  shipment to the customer.
• The customer then makes a payment, which
  account records.

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Business Processes Business Process Management
BUSINESS PROCESSES
An organizations business process can create a
competitive advantage if they Enable the company
less responsive and efficient.
Example
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BUSINESS PROCESS MANAGEMENT

• Excellence in executing business processes is
  widely recognized as the underlying basic for all
  significant measures of competitive performance
  in an organization.
• Consider these measures, for example-

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BUSINESS PROCESS MANAGEMENT

• Business Process Management (BPM) is a management
  technique that includes-
• Methods
• Tools
• Helps companies improve profitability by
  decreasing costs and increasing revenues.
• Over time BPM can create a competitive advantage
  by improving organizational
• flexibility.
• BPM can provide cost benefits and increase
  customer satifaction

To support the design, analysis, implementation,
management and optimization of business process
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INFORMATION SYSTEM Concepts Definitions
DATA, INFORMATION AND KNOWLEADGE

• Data items refer to an elementary description of
  things, events, activities, and transactions that
  are recorded, classified, and stored but not
  organized to convey meaning
• Information refers to data that have been
  organized so that they have meaning and value to
  the recipient
• Knowledge consists of data and/or information
  that have been organized and processed to convey
  understanding, experience, accumulated learning,
  and expertise as they apply to a current business
  problem

KNOWLEDGE
DATA
INFORMATION
Binary code, the foundation of information and
knowledge, is the key to making complex decision
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INFORMATION SYSTEM Concepts Definitions
INFORMATION TECHNOLOGY ARCHITECTURE

• An organizations information technology
  architecture is a high-level map or plan of the
  information assets in an organization

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INFORMATION SYSTEM Concepts Definitions
INFORMATION TECHNOLOGY INFRASTRUCTURE

• An organizations information technology
  infrastructure consists of the physical
  facilities, IT components, IT services, and IT
  personnel that support the entire organization
• Modern organizations operate within a global,
  Web-based platform, which is discussed next.

DATABASE
HARDWARE
procedures
procedures
SOFTWARE
NETWORK
procedures
procedures
It takes technology (hardware, software,
databases and network) with appropriate
procedures to make a CBOS useful for people
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THE GLOBAL WEB-BASED PLATFORM

• The global, Web-based platform that has recently
  emerged spans the world and is best represented
  by the Internet and the functionality of the
  World Wide Web
• The platform enables individuals to connect,
  compute, communicate, collaborate, and compete
  anywhere and at any time.
• One of the biggest impacts this platform has had
  is the creation of new globalization
  opportunities.
• The three stages of globalization
• Globalization 1.0 (1492 to 1800) countries
• Globalization 2.0 (1800 to 2000) multinational
  companies
• Globalization 3.0 (2000 and beyond) groups and
  individuals

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BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES AND
IT SUPPORT

• What external business pressures create threats
  and opportunities for todays businesses?
• How have organizations responded to these
  pressures?
• How does IT support these organizational
  responses?

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Business Pressures Market
BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES AND
IT SUPPORT
BUSINESS PRESSURES

• Global economy and strong competition
• NAFTA, EU, etc.
• Rise of India and China
• Global labor costs
• Need for real-time operations
• The online marketplace never closes and
  up-to-the-minute information is required for
  organizational decision making
• The changing nature of the workforce
• The workforce is becoming more diverse and
  includes increasing numbers of women, single
  parents, minorities, and persons with
  disabilities
• Powerful customers
• Customers have access to vast amounts of
  information and have access to a large number of
  retailers and service providers

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Business Pressures Technology
BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES AND
IT SUPPORT
BUSINESS PRESSURES

• Technological innovation and obsolescence
• New technologies are constantly being developed
• These new technologies must be considered when
  creating new innovative products, services, and
  processes
• Old technology rapidly becomes obsolete
• Information overload
• The amount of information collected, stored, and
  made accessible to organizations and individuals
  continues to grow
• Without proper IT tools, the information flood
  can be overwhelming
• ITs such as search engines and data mining tools
  provide support for incorporating this vast
  amount of information into real-time
  organizational decision making

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Business Pressures Societal/Political/Legal
BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES AND
IT SUPPORT
BUSINESS PRESSURES

• Social responsibility
• Responsibility not only to traditional
  organizational stakeholders, but also society as
  a whole
• Compliance with government regulations and
  deregulation
• Protection against terrorist attacks
• Ethical issues
• Ethics relates to general standards of right and
  wrong
• Information ethics relates specifically to
  standards of right and wrong in
  information-processing practices (or other online
  activities)

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BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES AND
IT SUPPORT
ORGANIZATIONAL RESPONSES

• Strategic systems
• Customer focus and service (CRM), self-service
• Continuous improvement and business process
  reengineering
• Make-to-order and mass customization
• Better data management
• Business alliances
• E-business and e-commerce

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BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES AND
IT SUPPORT
IT SUPPORT FOR ORGANIZATION RESPONSES

• IT support for business activities has evolved
  quite dramatically from the 1950s through today
• This topic is discussed in more detail in the
  following chapter

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Example Grocery Store Checkout

• Old Process

• New Process

• In the old-old economy, when you visited retail
  stores you placed your items in a shopping cart
  and proceeded to checkout
• The clerk manually entered the price for each
  item and you paid for them in cash
• The store gathered no information about the
  transaction other than receiving payment

• In the new economy you take your items to a
  self-service kiosk where you swipe the barcode
  for each item over a reader and then pay by cash,
  credit card or debit card
• In the coming generation of checkout technology
  all items with have wireless RFID tags allowing
  you to simply walk your cart through a device to
  total up the price and make payment

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Example Photography

• Old Process

• New Process

• You buy film at the store, insert it into your
  camera, and take pictures
• Once you complete the film, sometimes weeks or
  months after you began the roll, you take it to
  the store (or mail it) for processing
• Go back to the store and pay for enlargements and
  duplications
• Send photos by mail to family and friends
• Video requires a second, different, camera

• Use a digital camera that can also take videos
• No film is needed, and no processing is required
• You can see the results immediately and enlarge
  and print photos quickly
• In minutes you can electronically send the
  pictures to your family and friends
• You can view the pictures on personal computers,
  personal digital assistants (PDAs), and other
  digital devices

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WHY ARE INFORMATION SYSTEM IMPORTANT TO ME?

• Information systems are important to you for a
  variety of reasons-
• First, information systems and information
  technologies are integral to your life.
• Second, the IS field offers many career
  opportunities.
• Finally, all functional areas in an organization
  utilize information systems.

INFORMATION SYSTEM AND INFORMATION TECHNOLOGY ARE
INTEGRAL TO YOUR LIVES

• There are many examples of the ways in which
  information systems and technologies
• are embedded in your lives. For example, thinks
  of all you can do online
• Register for classes
• Take classes, and not just classes from
  your university 
• Access class syllabi, information,
  PowerPoints, and lectures
• Research class papers and
  presentations
• Conduct banking
• Pay your bills
• Research, shop, and buy products from
  companies or other people
• Sell your stuff

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WHY ARE INFORMATION SYSTEM IMPORTANT TO ME?
INFORMATION SYSTEM AND INFORMATION TECHNOLOGY ARE
INTEGRAL TO YOUR LIVES
Search for, and apply for, jobs Make your
travel reservations (hotel, airline, rental
car) In addition to all the activities you can
perform online, there are other examples of how
information systems and information technologies
are essential to your daily living. For
example you may not use a regular wire line
telephone. Rather, you
use a smart phone that has a calendar, an address
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WHY ARE INFORMATION SYSTEM IMPORTANT TO ME?
IT OFFERS CAREER OPPORTUNITIES

• Because information technology is vital to the
  operation of modern businesses, it
• offers many employment opportunities.
• The demand for traditional IT staff- programmers,
  business analysts, system
• analyst and designers.
• The information system field includes the people
  in organizations who design and
• build information systems, the people who use
  those systems, and the people
• responsible for managing those systems.

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WHY ARE INFORMATION SYSTEM IMPORTANT TO ME?
MANAGING INFORMATION RESOUCES

• Managing Information System in modern
  organizations is difficult, complex task.
• Information Systems have enormous strategic value
  to organizations.
• Information Systems are very expensive to
  acquire, operate and maintain.
• Factor contributing to the difficulty in managing
  information systems is the evolution
• of the management systems (MIS) function within
  the organization.