Test3 Flashcards
Transaction
Recorded business event; needs to be recorded internally as well as externally (with date/time stamp), not optional due to the impact this information has on other operations of the organization and its stakeholder
Swimlane Diagram
Who does what taks, flows from one to another based on decision. Good for reegnineering; reads left to right. You identify what comes of the activity and what is next handling the output until reach the end, final deliverable of the process. Can have alternate flows & parallel flows (binary process, requires a trigger)
Reeingineering
Process redesign; radical redesign of business process, org structure, info systems and values of the organization to achieve a breakthrough in business results. Reduces delivery time, increase quality, revenues, enhance customer satisfaction
Automation
The use of machines, control systems, and information technologies to optimize productivity in the production of goods & delivery of services - of Existing work processes.
A repetitive task - execution delegated to a machine
4 necessary components of Automation/4 mental activities
Also used to explore whether the task CAN be automated from a technial viewpoint
- Goal setting type of activity
- Measuring/sensoring
- Comparing
- Deciding or choosing
Advantages of Automation
Speed, accuracy, availability (convenience, productivity, long-term cost reduction (replacing humans), privacy
Disadvantages of Automation
Limited application scope, inability to handle exceptions (smart = stupid sprinkers run in rain); lack of security, heavy upfront investment
Business impact Tennessee Valley Authority reengineering project
IS rengineering project to improve efficiency & reduce power costs. Allowed them to purchase in volume and save $23.5 million (big impact!)
Major accomplishment of Progressive Insurance
Immediate Response Claim Handling - worked out of vans rather than offices. Able to inspect vehicles within 9 hours of customer call before reengineering they were closer to the industry standar of 7-10 business days. Growth of 1.3 billion in 1991 to $9.5 billion in 202
Essential difference between Ford and Maza A/P system
Ford had A/P dept of >500 people vs. Mazda had 5 people. Ford did not have an expert computer system capable of rationalizing processes - did not have automated process of finding mismatches. Mazda eliminated mismatches from occurring in the first place. don’t send POs; entered into DB and match at time of receiving.
What should be explored regarding the type of function to be automated?
Automated input (caller ID, biometrics, webcam); Automated processing, automated outpute (audio output, biometrics)
Explore whether a task SHOULD be automated from an Economic standpoint…
Manual: Fixed costs are low; variable costs are very hight (payroll) vs.
Automated: Fixed costs are high (software, hardware, training); variable costs are low(?): maintenance, upgrades
Payback Period calculation
Fixed costs / (cost savings or revenue enhancements)/time period
Explore whether a task SHOULD be automated from a SOCIAL standpoint…
Are impacts on people acceptable? Amazon open 24/7
Explore whether a task SHOULD be automated from an MARKETING standpoint…
Does automated have positive image associated with it? (not if luxury goods)
Automation paradox
As automated systems become more reliable & efficient, the more likely it is human operators will mentally “switch off” and rely on automated systems. As automated systems become more complex, odds of accidents diminish, but severity of failure is amplified.
Understanding variables & understanding disruptions is paramount.
Typical Components of TPS in business
Sales, Shipping, Billing, A/R, Production, Inventory, Purchasing, Receiving, A/P, Payroll
Interconnected cyclic systems with output of one system often serving as input to another
Control Data
Data used for reporting/monitoring/improving the operations (Managerial Relevance)
Transaction data
Data used for running the operation (Operational Relevance)
Ripple Effect
Data traveling to other departments where needed - due to interdependec - what happens in one tends to impact other subsystems.
Documents
External proof of a transaction
Is a query a transaction?
If the query itself is meant to be tracked. When customers inquire on availability of an item it would usually be a read/access operation. However, mgmt may realize that they are a way of tracking demand.
TPS Characteristics
Large amounts of input/out Large number of users Huge storage requirements Low computational complexity Fast input/output, process capabilities High degree of concern - security High degree of concern - reliability/fault tolerance
Can a system be designed to meet first operational needs then try to meet managerial needs?
No!
TPS feeds management reporting systems about the effectivness & efficiency of the operations
What is the strategic significance of TPS?
Its direct correlation with customer satisfaction (product or service and process involved in acquiring).Customers most often interact with the TPS function of the organization - often focus is in the wrong area (higher levels)
ERP
Enterprise Resource Planning
Modular, integrated software application - spans all organizational functions and relies on ONE core database
Goal: integration of depts/functions to a single computer system
Software Concrete
Limitation of ERP is it is software concrete - offers high adapability not typical in off-the shelf applications but comes from configuration tables that can only be used during the implementation process (like concrete, adaptable moldable, but difficult to modify once it sets)
CRM
Customer Relationship Management
Puts customer at the center. CRM systems store all customer related information - relies on personal & transactional data to increase profitability. It is a strategic initiative
SCM
Supply Chain Management
Combo art/science that goes into improving the way companies find raw materials to make products/services & deliver to customers
5 Components: Plan, source, make, deliver, return
Harrah’s Use of CRM
Loyalty rewards card (opt-in); use CLV - customer lifetime value - determines present value of the likely future income stream generated by an individual purchaser - how to spend to keep them coming back
Barclay’s Use of CRM
Rapid access to loan information at customer point of contact - customers satisfied with fast response.
RFID
Radiofrequency identification ships in SCM - providing tools to enable integrated supply chain management. They provide lots of information - manuafactured, picked, packed, shipped. Ability to enable new processes & new applications
