2 Information Systems in the Enterprise - Main Web

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Employee master file Employee data (various departments) To payroll Data elements in employee master file: Employee: Number Name Address Department Age Marital status Sex Salary Educational background Job title Date of hire Date of termination Termination reason Human Resources System On-line queries Date 11/12/2000 12/1/2000 1/12/2001 Figure 2-11 An employee record keeping system.This system maintains data on the firm’s employees to support the human resources function. Chapter 2 ❙ INFORMATION SYSTEMS IN THE ENTERPRISE 17 Management reports Termination Report Name John Hansen Patricia Carlyle Ellen Quimby Number 29433 14327 21224 Reason Position eliminated Retired Left company hand, business processes are concrete workflows of material, information, and knowledge–sets of activities. On the other hand, business processes represent unique ways in which organizations coordinate work, information, and knowledge, and the ways in which management chooses to coordinate work. Table 2-6 describes typical business processes for each of the functional areas. Although each of the major business functions has its own set of business processes, many other business processes are cross-functional, transcending the boundaries between sales, marketing, manufacturing, and research and development. These cross-functional processes cut across the traditional organizational structure, grouping employees from different functional specialties to complete a piece of work. For example, the order fulfillment process at many companies requires cooperation among the sales function (receiving the order, entering the order), the accounting function (credit checking and billing for the order), and the manufacturing function (assembling and shipping the order). Figure 2-12 TABLE 2-6 Examples of Business Processes Functional Area Business Process Manufacturing and production Assembling the product Checking for quality Producing bills of materials Sales and marketing Identifying customers Making customers aware of the product Selling the product Finance and accounting Paying creditors Creating financial statements Managing cash accounts Human resources Hiring employees Evaluating employees’ job performance Enrolling employees in benefits plans
18 Part I ❙ ORGANIZATIONS, MANAGEMENT, AND THE NETWORKED ENTERPRISE Figure 2-12 The order fulfillment process. Generating and fulfilling an order is a multistep process involving activities performed by the sales, manufacturing and production, and accounting functions. Keying data from tax returns into the Internal Revenue Service computer system is an important activity in the tax collection process. Business processes coordinate work, information, and knowledge. Sales Accounting Manufacturing and production Generate order Submit order Check credit Approve credit Assemble product Generate invoice Ship product illustrates how this cross-functional process might work. Information systems support these cross-functional processes as well as processes for the separate business functions. Information systems can help organizations achieve great efficiencies by automating parts of these processes or by helping organizations rethink and streamline these processes. However, redesigning business processes requires careful analysis and planning. When systems are used to strengthen the wrong business model or business processes, the business can become more efficient at doing what it should not do. As a result, the firm becomes vulnerable to competitors who may have discovered the right business model. Therefore, one of the most important strategic decisions that a firm can make is not deciding how to use computers to improve business processes, but instead to first understand what business processes need improvement (Keen, 1997). Chapter 10 treats this subject in greater detail, because it is fundamental to systems analysis and design. Customer Relationship Management and Supply Chain Management Electronic commerce, global competition, and the rise of digital firms have made companies think strategically about their business processes for managing their relationships with customers and suppliers. Consumers can now use the Web to comparison shop and switch companies on a moment’s notice. To survive, businesses need to find ways of providing more value and service to customers at lower cost. Many believe the solution lies in improving their business processes for interacting with customers and for producing and delivering products or services.
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2 Information Systems in the Enterprise - Main Web

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