4. An IS Framework for business Professionals By Rakesh Roshan Information System Information Systems Management System Information Technologies Business Applications Development Processes Foundation Concepts
7. The Fundamental Roles of IS in Business By Rakesh Roshan Support Strategies For Competitive Advantage Support Business Decision Making Support Business Processes and Operations
10. By Rakesh Roshan Types Of Information System The applications of IS that are implemented in today’s business world can be Classified in several different ways. Several types of IS can be classified as Either operations or management information system. Information System Operations Support System Management Support System Transaction Processing System Process Control Systems Enterprise Collaboration Systems Management Information Systems Decision Support System Executive Information System Support of Business Operation Support of Managerial Decision making Processing Business transactions Control of Industrial Processes Team and Workgroup Collaboration Prespecified Reporting For Managers Interactive Decision Support Information Tailored for Executives
17. By Rakesh Roshan ORGANIZATIONAL SYSTEM The Community Competitors Management Information system Economic Resources: People Money Material Machines Land Facilities Energy Information Business Process: Market , Develop , Produce and Deliver Products and Services Support Customers Other Processes Goods and services: Products Services Payments Contributions Information Other Effects Financial Institutions Labor Unions Input Processing Output
18. By Rakesh Roshan Ata People Resources (End users and IS Specialist Software Resources (Program and Procedure) Network Resources Communications Media and Network Support Hardware Resources Machines and Media Data Resources Data and Knowledge Bases Control of system performance Input and Data Resources Processing Data into Information Output of Information Products Storage of Data Resources Component of Information System
27. Architecture of Enterprise Application By Rakesh Roshan Suppliers Supply Chain Management Sourcing * Procurement Enterprise Resource Planning Customer Relationship Management Marketing*Sales*Service Customers Employees Partners Knowledge Management Collaboration*Decision support Partner Relationship Management Selling * distribution
29. HOW EAI WORKS: By Rakesh Roshan 1.An order comes in via the call center ,email , the Web or fax. 2.Customer information captured in the order process is sent to a “ new customer” process , which distributes the new customer information to multiple application and databases. 3.Once the order is validated,relevant details are sent to order fulfillment- which may pick the requested items from inventory ,schedule them for manufacture , or simply forward them. 4. Fulfillment return status and shipment info to the order entry system…… 5. …..and to the call center , which needs to know about outstanding orders. EAI Call Center Billing Finance Order & Fulfillment Routing Manufacturing Shipping 2 3 1 4 5 E-Mail Fax Web Call Center
36. How Manufacturing Information Systems support computer integrated manufacturing By Rakesh Roshan Shop Floor Control Computer Aided Design Process Control Machine Control Capacity Planning Production Cost Control Quality Control Robotics Control Material Requirements Planning Production Forecasting Production Scheduling Shop Floor Scheduling Computer Aided Engineering Computer Aided Process Planning Product Simulation and Prototyping Computer Integrated Manufacturing Manufacturing Resource Planning Systems Manufacturing Execution Systems Engineering Systems
41. By Rakesh Roshan Commit Schedule Make Deliver Strategic Sourcing and Procurement Forecast and Demand Planning Customer Order Fulfillment/Service Distribution Network and Warehouse Operations Production Logistics Transportation and Shipment Management Shared Market Data Collaborative Fulfillment The Internet Supplier Manufacturer Retailer Customer Supply Chain Life Cycle SCM Functional Processes SCM Integration Solution
44. By Rakesh Roshan E-Commerce Introduction to E-commerce E-commerce is changing the shape of competition , the speed of Action, and the streamlining of interactions, products and payments from customers to companies and from companies to suppliers. Categories of e-Commerce Many companies today are participating in or sponsoring three Basic categories of electronic commerce applications: 1. Business-to-Consumer(B2C) e-Commerce : In this form of electronic Commerce , businesses must develop attractive electronic marketplace to sell products and services to consumers. For example many companies offer e-commerce websites that provide virtual storefronts and multimedia catalogs, interactive order processing, secure electronic payment systems and online customer support.
46. By Rakesh Roshan Electronic Buying and Selling of goods and services Selling Process Buying Process Market/ Product Research Customer Service and Support Market Stimulation / Education Terms Negotiation Order Billing/ Payment Mgmt Order Receipts Order Scheduling/ Fulfillment delivery Order Selection and Priority Product Discovery Product Services and Support Product Evaluation Terms Negotiation Order Payment Order Placement Product Receipt Order Tracking
48. E-Commerce Applications and Issues By Rakesh Roshan E-Commerce is changing how companies do business both internally and externally with their customers, suppliers , and other business partners. How companies apply e-Commerce to their business is also subject to change As their managers confront a variety of e-Commerce alternatives. The application of e-Commerce by many companies have gone through several major stages as e-Commerce matures in the world of business. For Example, E-Commerce between businesses and Consumers(B2C) moved from merely offering multimedia company information at corporate websites to offering Products and services at web store front sides via electronic catalogs and online sales transactions. B2B e-Commerce , on the other hand , started with website Support to help business customers serve themselves ,and than moved toward automating intranet and extranet procurement systems.
49. By Rakesh Roshan High Business Value Low Time to Implement High B2C B2B Web Storefront & e-Catalog Interactive Marketing Interactive Web Store Self-Service Web Sales B2C Portal E-Business Empowerment B2B Portal Extranets And Exchanges Procurement Automation Customer Self-Service Short Term Project Operations automation Short Term Strategies Long Term Strategies SCM CRM Web Brochures Trends in B2C and B2B e-commerce
52. Competitive Forces and Strategies By Rakesh Roshan Cost Leadership Differentiation Innovation Growth Alliances Other Strategies Rivalry of Competitors Threats of New Entrants Threat of Substitutes Bargaining Power of Customers Bargaining Power of Suppliers
55. How a customer-focused business builds customer value and loyalty using Internet technologies? By Rakesh Roshan Let customers place orders directly Let customers place orders through distribution partners Link employee and distribution partners to databases and customers Let customers check order history and delivery status Make loyal customers feel special with websites personalization Give all employees a complete view of each customer Build a customer database segmented by preferences and profitability Build a Web community of customers, employees and partners Transaction Database Customer Database Internet Internet Internet Extranets Intranets Extranets Intranets
57. Value Chain of a firm By Rakesh Roshan Support Processes Primary Business Processes Inbound Logistics Automated Just-in-time Warehousing Operations Computer Aided Flexible Manufacturing Marketing and Sales Online Point-of-sale and order Processing Marketing and sales Targeted Marketing Customer Service CRM Competitive Advantage Administrative Coordination and support Services Collaborative Workflow Intranet Human resource Management Employee Benefits intranet Technology Development Product Development Extranet with Partners Procurement of Resources E-Commerce Web Portals for Suppliers
59. Business Improvement Vs Business Process reengineering By Rakesh Roshan Business Improvement Business Process Reengineering Level Of Change Incremental Radical Process Change Improved new version of process Brand new process Starting Point Existing Processes Clean slate Frequency of Change One-Time or continuous Periodic one-time change Time Required Short Long Typical Scope Narrow, within functions Broad, cross functional Horizon Past and present Future Participation Bottom-up Top-down Path to Execution Cultural Cultural, structural Primary Enabler Statistical control Information Technology Risk Moderate High
62. Role of Intranet By Rakesh Roshan Communicate and collaborate with e-mail, discussion forums, chat and conferencing. Secure , universal access to view and use corporate and external data . Author, publish and Share hypermedia documents Centrally administer Clients , servers, Security, directory And traffic Existing E-mail, voice- Mail Systems Existing Databases And Enterprise Applications HTML, MS Office XML, Java and Other Document Types Existing Hardware And Networks Intranet Enterprise Information Portal F I R E W A L L Internet Extranet Customers, Suppliers, And Partners Communication and Collaboration Business Operations and management Web Publishing Intranet Portal Management Employees
70. A business must meet the information and data analysis requirements of their stakeholders with more personalized and proactive Web-based decision support By Rakesh Roshan Business Stakeholder Requirements Information at your Fingertips Do-it-yourself Data Analysis Decision Support Response Personalized, Proactive Decision Analytics and Web-based Applications
72. Components of DSS By Rakesh Roshan Legacy Software Web Browser Other Software User Interface Functions Hyperlinked Multimedia ,3-D Visualization Data Management Functions Data Extraction, Validation, Sanitation, Integration, and replication Model Management Functions Analytical Modeling, Statistical Analysis Operational Data Customer Account Data Sales Data Market Data Data Mart and Other Databases
75. Activities and examples of the major types of analytical modeling (Using DSS) By Rakesh Roshan Type of Analytical Modeling Activities and examples What-if Analysis Observing how changes to selected variables affect other variables. Example : What if we cut advertising by 10 percent? What would happen to sales? Sensitivity analysis Observing how repeated changes to a single variable affect other variables. Example : Let’s cut advertising by $100 repeatedly so we can see its relationship to sales. Goal-Seek analysis Making repeated changes to selected variables until a chosen variable reaches a target value. Example : Let’s try increases in advertising until sales reach $1 million. Optimization analysis Finding an optimum value for selected variables, given certain constraints. Example : What’s the best amount of advertising to have, given our budget and choice of media?
78. Components of Enterprise Information Portal(EIP) By Rakesh Roshan Sales VP Managers Sales Reps Other Employees Suppliers Customers Engineering VP Managers Engineers Corporate VPs Managers Analysts Marketing VP Managers Analysts Universal Interface Components Search Query Calendaring Channels/News e-Mail/Chat APIs Administration Security Load Balancing Meta Data Management Contextualization Inferencing Dynamic Profiling Portal Gateway DSS Tools Data Mining OLAP Other Tools Hyperlinking Indexing Taxamony Search Agents Enterprise Portal Server Operational Database Analytic Database Data Warehouse Business Application Intranets Extranets Internet web
85. By Rakesh Roshan Components of an expert system……….. The Expert System Expert System Development User User Interface Programs Interface Engine Program Knowledge Base Knowledge Acquisition Program Knowledge Engineering Expert and/or Knowledge Engineer Workstations Expert System Software Workstations
90. Organizational Planning By Rakesh Roshan Analyze the Organization’s Environment Develop Strategies Policies Tactics Articulate the Organization’s Plan Develop Implementation Methods and Controls Forecast Internal And external Developments Evaluate Accomplishments And Resources Team Building Modeling and Consensus Establish Vision Mission Goals Objectives Feedback
93. By Rakesh Roshan Component of Business Model Questions for all Business Models Customer Value Is the firm offering its customers something distinctive or at a lower cost than its companies? Scope To which customers is the firm offering this value? What is the range of products/services offered that embody this value? Pricing How does the firm price the value? Revenue Source Where do the dollars come from? Who pays for what value and when? What are the margins in each market and what drives them? What drives value in each source? Connected activities What set of activities does the firm have to perform to offer this value and when? How connected are these activities? Implementation What organizational structure, systems, people and environment does the firm need to carry out these activities? What is the fit between them? Capabilities What are the firm’s capabilities and capabilities gaps that need to be filled? How does a firm fill these capabilities gaps? Is there something distinctive about these capabilities that allows the firm to offer the value better than other firms and that makes them difficult to imitate? What are the sources of these capabilities? Sustainability What is it about the firm that makes it difficult for other firms to imitate it? How does the firm keep making money? How does the firm sustain its competitive advantage?
102. By Rakesh Roshan End User Development In end user development, IS professionals play a consulting role, while you do your own application development. Sometimes a staff of user consultants may be available to help you and other end users with your application development efforts. This may include training in the use of application packages; selection of hardware and software ; assistance in gaining access to organization databases and of course , assistance in analysis, design and implementing the business application of IT that you read. Control What control are needed to protect against accidental loss or damage? Is there a need to control access to data used by the application? Processing What operations on the inputs are needed to produce the desired output? What software can most effectively support those operations? Storage Does the application use previously stored data? Does it create data that must be stored for future use by this or other applications? Output What information is needed by end users and in what form should the output be presented? Input What data are available, in what form?
104. Evaluating Hardware, Software and Services By Rakesh Roshan Companies may use a scoring system of evaluation when there are several competing proposals for a hardware or software acquisition. They give each evaluation factor a certain number of maximum possible points. Then they assign each competing proposal points of each factor, depending on how well it meets the user’s specifications. Scoring evaluation factors for several proposals helps organize and document the evaluation process. It also spotlights the strength and weaknesses of each proposals. Large companies frequently evaluating proposed hardware and software by requiring the processing of special benchmark test programs and test data. Benchmarking simulates the processing of typical jobs on several computers and evaluates their performances. Users can then evaluate test results to determine which hardware device or software package displayed the best performance characteristics.
105. By Rakesh Roshan Hardware Evaluation Factor Performance What is its speed, capacity and throughput? Cost What is its lease or purchase price? What will be its cost of operations and maintenance? Reliability What are the risk of malfunction and its maintenance requirements? What are its error control and diagnostics features? Compatibility Is it compatible with existing hardware and software? Is it compatible with hardware and software provided by competing suppliers? Technology In what year of its product life cycle is it? Does it use a new untested technology or does it run the risk of obsolescence? Ergonomics Has it been “ human factor engineered” with the user in mind? Is it user-friendly, designed to be safe ,comfortable and easy to use? Connectivity Can it be easily connected to wide area and local area networks that use different types of network technology and bandwidths alternatives? Scalability Can it handle the processing demands of a wide range of end users, transactions, queries and other information processing requirements? Software Is system and application software available that can best use this hardware? Support Are the services required to support and maintain it available?
106. By Rakesh Roshan Software Evaluation Factors Quality Is it bug free, does it have many errors in its program code? Efficiency Is the software is well developed system of program code that does not use much CPU time, memory capacity or disk space? Flexibility Can it handle our business process easily, without major modification? Security Does it provide control procedures for errors , malfunctions and improper use? Connectivity Is it web enabled so it is easily access internet, Intranet and extranets, on its own , or by working with web browsers or other network software? Maintenance Will new features and bug fixes be easily implemented by our own software developers? Documentation Is the software well documented ? Does it include help screens and helpful software agents? Hardware Does existing hardware have the features required to best use this software? Other Factors
107. By Rakesh Roshan Evaluation Factors for IS Services Performance What has been their past performance in view of their past promises? Systems Development Are websites and other e-business developers available? What are their quality and cost? Maintenance Is equipment maintenance provided? What are its quality and cost? Conversion What systems development and installation services will they provide during the conversion period? Training Is the necessary training of personnel provided? What are its quality and cost? Backup Are similar computer facilities available nearby for emergency backup purposes? Accessibility Does the vendor provide local or regional sites that offer sales, systems development and hardware maintenance services? Business Position Is the vendor financially strong, wit good industry market prospects? Hardware Software