MIS - Exam 2 Flashcards
Scope of Processes
- Operational -
- Routine/Everyday, Commonplace
- Use TPS (Transaction Processing System)
- Managerial -
- Concern with use of resources in pursuit of its objectives.
- Use MIS (Management Information System)
- Strategic -
- Resolve issues with long-range impact on the organization.
- Use ESS (Executive Support System)
4 Characteristics of Process
- Stability of Flow -
- Structured
- Dynamic
- Scope of Process -
- Operational
- Managerial
- Strategic
- Objectives of Process -
- Effectiveness
- Efficiency
- Value Chain -
- See other slide for 5 Value Chain operations
Value Chain Activities
- Inbound Logistics Processes
- Operational Processes
- Outbound Logistic Processes
- Sales & Marketing Processes
- Customer Service
Supporting-
- Human Resources Processes
- Technology Processes
- Infrastructure Processes
5 Ways IS can be used to Improve Processes (ADCAP)
- Improve Activity of a Process
- Improve Data Flow among activities
- Improve Control of Activities
- Use Automation
- Improve Procedures
Difference between Effectiveness and Efficiency
Effectiveness - achieve organizational strategy.
Efficiency - create more output with same input or same output with less input.
Business Process
A sequence of activities for accomplishing a function.
Activity -
A task within a business process.
Resource -
An item (people, computers, data, document collections) necessary to accomplish an activity.
Actor -
Resources that are either human or computer hardware.
Role -
A subset of activities in a business process that are performed by a particular actor.
2 Ways Management can improve Processes -
- Process Objectives
- Classify objectives as effective or efficient to overcome ambiguity.
- Make unstated objectives explicit.
- Ensure objective are appropriate for the Strategy.
- Process Measures -
- Reasonable - Valid and compelling
- Accurate - Exact and Precise
- Consistent - Reliable
6 Mgt Process Principles to Improve Processes (AUFBSO)
- Improve Activity
- Remove unproductive resources
- Improve feedback
- Remove bottlenecks
- Redesign the Structure
- Outsource the Activity
Information Silo
The data needed for a process activity is unavailable because it is stored in an isolated, separated information system.
What is ERP?
Enterprise Resource Planning- A suite of software, a database, and inherent processes for consolidating business operations into a single, consistent, information system.
What is EAI?
Enterprise Application Integration - Software that enables information silos to communicate with each other and share data.
5 Core Processes/Modules of an ERP?
- Supply Chain Management (SCM)
- Manufacturing
- Customer Relationship Management (CRM)
- HR Management
- Accounting
Also
Operations/Logistics
Sales/Marketing
3 Characteristics of an ERP -
- Create and use a single database consolidating the data.
- Provide industry leading integrated processes which increase speed & communication.
- Centralize activities increasing efficiencies
What is MRP and MRPII
Material Requirements Planning - used to manage inventory, production, and labor. Bill of materials.
MRPII - Added Financial tracking and; equipment/facility scheduling capabilities.
3 Types of Data
Think T-Mobile
- Transactional Data - Data related to events or transactions (qty, purchases, enrollment). 1 time occurrence.
- Master Data (Reference Data) - Data used within the organization that doesn’t change with each transaction. Has persistence /reusable. Customer, vendor, employee.
- Organizational Data - Data about the organization. Physical locations, names of Financial accounts, etc.
3 Types of People Involved in an ERP
- Users
- IT (System) Analyst
- Consultant
Access Control
Specified limits on who can interact with an IS resource.
5 Steps to Implementing an ERP-
- Re-examine Strategy
- Performs gap analysis.
- Develops Processes.
4 . Configure ERP software - Install - Write Procedures, testing , and training
- Determine industry structure using porters tools.
- What ERP System supports this strategy?
- How does the ERP integrate with the supply chain?
- Gap Analysis (expectations vs abilities)
- Define objectives and measures.
- Select Processes from the ERP vendor portfolio that aligns with your strategy/objectives.
- Write procedures to use ERP to achieve/execute these processes.
- Verify the ERP addresses and resolves issues and can achieve the objectives.
5 Benefits of an ERP -
- Real-time data sharing
- Implementation of integrated industry best practices.
- More data = dashboards = better management oversight
- No information silos
- Better supply chain integration = reduced costs and increased efficiencies
ERP Implementation Challenges (SGCDC)
- ERP Vendor selection
- Gap analysis
- Configuration
- Data Issues
- Cutover pressure - Old to New System
People Challenges
Management
- Premature
- Oversells
- Fails to anticipate cultural resistance
Team -
- Collaboration breaks down
Individual-
- Pain with no gain
Culture
The day to day work habits and practices that workers take for granted.
ERP Upgrade Challenge-(RJC-LTS)
- Surprise and resistance
- Justification
- Version lock from customization
- No long-term upgrade strategy
ABAP
SAPs application language
SAP Modules
Quality management Financial accounting Plant maintenance Human Resources Project Systems Production planning Controlling Sales & Distribution Materials Management Business intelligence
Procurement
The process of obtaining goods and services such as raw materials parts, and services.
3 Procurement Process Activities
- Order
- Receive
- Pay
3 Sales Process Activities
- Sell
- Ship
- Payment
SAP
A collection of interconnected & interdependent modules.
Module
A distinct and logical grouping of processes.
Purchase Order
A written document requesting delivery of a specified quantity of a product or service in return for payment.
Types of Inventory
Raw Materials
Finished Goods
3 Way Match
A match between the invoice, P.O., and goods receipt.
SRM
Supplier Relationship Management - automates, simplifies, and accelerates a variety of supply chain processes by reducing procurement costs, build supplier relationships, better supplier options, and improved time to market.
Returns Mgt Process
Manages returns of faulty products for businesses.
SCM
Supply Chain Management- the design, planning, execution, and integration of all supply chain processes by using a collection of tools, techniques and management activities to help business develop integrated supply chains that support organizational strategy.
Share real-time data
Improve integration
Bullwhip Effect
When companies order more supplies than are needed due to a sudden change in demand.
Process Integration / Synergy
Occurs when processes are mutually supportive thus fulfilling an objective of other processes.
Sales
An exchange of goods or services for money.
3 Functions of CRM
- Marketing
- Sales
- Customer service
2 Types of CRM
- Operational
2. Analytical
CRM
Customer Relationship Management - The administration of customer facing processes and managing all the interactions with customers.
Posting
When legal ownership of the material has changed.
Ecommerce
A multi firm process of buying and selling goods and services using internet technology.
Difference between Merchant and Non-Merchant Companies
Merchant companies own the goods they sell.
Non-Merchant companies do not own/possess the items they sell.
- Auctions
- Clearinghouses
- Electronic Exchanges
Disintermediation
The elimination of middle layers of distributors and suppliers. Cutting out the middle man.
3 Ways Ecommerce Improve Market Efficiency
- Disintermediation
- Data Flow - between buyers and sellers.
- Software - sharing of marketing data
3 Challenges of Improving a Group of Processes
- People are distracted from their most important process.
- Process change constantly.
- People must know objectives of many processes
CRM vs SCM Processes
CRM
- Sales
- Service
- Promotion
SCM
- Procurement
- Demand Management
- Returns Mgt
Bottleneck
Occurs when a limited resource greatly reduces the output of an integrated series of activities or processes.
Internal Control
Systematically limiting the actions and behaviors of employees, processes, and systems within the organization to safeguard assets and achieve objectives.
Procurement Objectives
Save time Save money Find reliable high quality suppliers Relationship maintenance Supporting other processes (sales & operations) Efficiency
