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MIS Chapter 7- Business Process Management

IS Roles
-To implement business process activities
-May be entirely manual, automated, or mixed IS
Calculation System
1st IS to relieve workers of tedious, repetitive calculations
Business Process
Manner in which work is organized, coordinated, & focused to produce valuable product/service
Why is Business Process Important?
-Processing an order crosses departmental boundaries
-credit card processing, shipping,
Business Process Management
Systematic process of creating, assessing, altering business processes
How IS helps enhance business processes?
-Achieve great efficiencies by automating parts of processes
rethink streamline process
4 steps of BPM
-Create model of business process components
-Create system components
-Implement business process
-Create policy for ongoing assessment of process effectiveness
Functional Processes
-Involves activities within a single department or function
-Easier to use BPM with this
PROBLEM: Thier information silos
Islands of automation/information silos
Work in isolation form one another
Cross Functional Processes
-Involve activities among several, or even many business management
More difficult
-Example: Customer Relationship Management (CRM)&ERP most common
Problem of Functional Systems
-Business processes are disjointed
-Inefficiency
-increase costs of system due to various issues
Inter-organizational systems
-Activities that process credit card transactions and activities with the shipper
-SUPPLY CHAIN MANAGEMENT (SCM)
Inventory
-IS facilitates inventory control, management & policy
-Track goods
-Uses past data and compute various things
RFID (radio frequency identification
-Also called dedicated short range communication
-similar to bar code ID
-antenna
-transceiver
– Way to track inventory
Just-in-time (JIT)
-Inventory Policy seeks to have production inputs and delivered to the manufacturing site just as they are needed
CRM
Supports/enables a set of business processes for attracting, selling, managing,supporting customers
Customer life cycles
1) Solicitation: marketing &attraction..targeting
2) Lead Tracking (presale): customer acquisition, sell, prospect
3)Relationship Management Processes(post-sale): support and re-sale
-Low and High customers
4) Loss/Churn : categorize
Enterprise Resource Planning
-Integrates all of the organization principal processes
-More integration than CRM, adds human resources and accounting activities
Characteristics of ERP
-Efficient business processes
-Inventory reduction
-lead-time reduction
-improved customer service
-higher profitability
Service-Oriented Architecture (SOA)

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