1. CHAPTER 1 THE MODERN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT
TECHNOLOGY AND INFORMATION SYSTEMS
DDC 1583
CHAPTER 1 THE MODERN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT
THE MORDEN ORGANIZATION FUNCTIONING IN A GLOBAL ENVIRONMENT
Business Processes and Business Process Management
Information system : Concept and Definitions.
The Global Web- Based Platform
Business Pressures, Organizational Responses and IT Support.
Why Are Information System Important to Me?
The Plan of the Book

2. Business Processes & Business Process Management
A business process is an ongoing collection of related activities
that create a product or a service of value to the organization, its business
partners and / or its customer.
A process has inputs and outputs and its activities can be measured
Many processes cross functional areas in an organization
Example
Product development involves research, design, engineering, manufacturing, marketing and distribution

3. Business Processes & Business Process Management
Accounting Business Processes
Managing accounts payable
Managing accounts receivable
Reconciling bank account
Managing cash receipts
Managing invoice billings
Managing petty cash
Producing month-end close
Producing virtual close
Financial Business Processes
Managing account collection
Managing bank loan applications
Producing business forecasts
Applying customer credit approval and credit terms
Producing property tax assessments
Managing stock transactions
Generating financial cash flow reports
Marketing Business Processes
Managing post-sale customer follow up
Collecting sales taxes
Applying copyrights and treatmarks
Using customer satisfaction surveys
Managing customer service
Handling customer complain
Handling returned goods from customer

4. Business Processes & Business Process Management
Producing sales leads
Entering sales orders
Training sales personnel
Production / Operations management Business Processes
Processing bills of materials
Processing manufacturing change orders
Managing master parts list and files
Managing packing, storage, and distribution
Processing physical inventory
Managing purchasing
Managing quality control for finished goods
Auditing for quality assurance
Receiving, inspecting, and stocking parts and materials
Handling shipping and freight claims
Handling vendor selection, files and inspections
Human Resources Business Processes
Applying disability policies
Managing employee hiring
Handling employee orientation
Managing files and records
Applying healthcare benefits
Managing pay and payroll
Producing performance appraisals and salary adjustments
Managing resignations and terminations

5. Business Processes & Business Process Management
Applying training / tuition reimbursement
Managing travel and entertainment
Managing workplace rules and guidelines
Overseeing workplace safety
Management Information System Business Processes
Antivirus control
Computer security issues incident reporting
Training computer users
Computer user / staff training
Applying disaster recovery procedures
Applying electronic mail policy
Generating Internet use policy
Managing service agreements and emergency service
Applying user workstation standards
Managing the use of personal software.
EXAMPLES OF BUSINESS PROCESSES

6. Business Processes & Business Process Management
Cross- Functional Processes
- Cross Functional Processes meaning that no single functional area is
responsible for their execution.
- Multiple functional area collaborate to perform the process.
- Each functional are must execute its specific process steps in a coordinated,
collaborative way.

7. Business Processes & Business Process Management
Cross- Functional Processes
Procurement Process
* includes all of the tasks involved in acquiring needed materials externally from
vendor.
* Comprises 5 steps that are completed in three different functional areas of
the firm: warehouse, purchasing and accounting. 1
The warehouse documents this need with a purchase requisition, which it sends to the purchasing department 2
In turn, the purchasing department identifies a suitable vendor, creates a purchase order based on the purchase requisition, and sends the order to the vendor 3
When the vendor receives the purchase order, it ships the materials, which are received in the warehouse 4
The vendor then send an invoice which is received by the accounting department 5
Accounting sends payment to the vendor, thereby completing the procurement process

8. Business Processes & Business Process Management
Cross- Functional Processes
Fulfillment Process
* is concerned with efficiently processing Customer Order.
* is triggered by a Customer Purchase Order that is received by the sales
department.
* Sales then validates the purchase order and creates a sales order.
* The sales order communicate date related to the order functional areas within
the organization, and it tracks the progress of the offer.
* The warehouse prepares and sends the shipment to the customer.
* The customer then makes a payment, which account records.

9. Business Processes & Business Process Management
An organization’s business process can create a competitive advantage if they
Enable the company less responsive and efficient.
Example
Illustrates the e- ticket purchasing business process

10. BUSINESS PROCESS MANAGEMENT
Excellence in executing business processes is widely recognized as the underlying basic for all significant measures of competitive performance in an organization.
Consider these measures, for example:-
Customer satisfaction
The result of optimizing and aligning business process to fulfill customers needs, wants, and desires
Cost reduction
The result of optimizing operations and supplier process
Cycle and fulfillment time
The result of optimizing the manufacturing and logistics processes
Quality
The result of optimizing the design, development and production process
Differentiation
The result of optimizing the marketing and innovation processes
Productivity
The result of optimizing each individual’s work processes

11. BUSINESS PROCESS MANAGEMENT
Business Process Management (BPM) is a management technique that includes:-
Methods
Tools
Helps companies improve profitability by decreasing costs and increasing revenues.
Over time BPM can create a competitive advantage by improving organizational
flexibility.
BPM can provide cost benefits and increase customer satifaction
To support the design, analysis, implementation,
management and optimization of business process

12. INFORMATION SYSTEM: Concepts & Definitions
DATA, INFORMATION AND KNOWLEADGE
Data items refer to an elementary description of things, events, activities, and transactions that are recorded, classified, and stored but not organized to convey meaning
Information refers to data that have been organized so that they have meaning and value to the recipient
Knowledge consists of data and/or information that have been organized and processed to convey understanding, experience, accumulated learning, and expertise as they apply to a current business problem
KNOWLEDGE
DATA
INFORMATION
Binary code, the foundation of information and knowledge, is the key to making complex
decision

13. INFORMATION SYSTEM: Concepts & Definitions
INFORMATION TECHNOLOGY ARCHITECTURE
An organization’s information technology architecture is a high-level map or plan of the information assets in an organization

14. INFORMATION TECHNOLOGY INFRASTRUCTURE
INFORMATION SYSTEM: Concepts & Definitions
INFORMATION TECHNOLOGY INFRASTRUCTURE
An organization’s information technology infrastructure consists of the physical facilities, IT components, IT services, and IT personnel that support the entire organization
Modern organizations operate within a global, Web-based platform, which is discussed next.
DATABASE
HARDWARE
procedures
procedures
SOFTWARE
NETWORK
procedures
procedures
It takes technology (hardware, software, databases and network) with
appropriate procedures to make a CBOS useful for people

15. THE GLOBAL WEB-BASED PLATFORM
The global, Web-based platform that has recently emerged spans the world and is best represented by the Internet and the functionality of the World Wide Web
The platform enables individuals to connect, compute, communicate, collaborate, and compete anywhere and at any time.
One of the biggest impacts this platform has had is the creation of new globalization opportunities.
The three stages of globalization:
Globalization 1.0 (1492 to 1800) – countries
Globalization 2.0 (1800 to 2000) – multinational companies
Globalization 3.0 (2000 and beyond) – groups and individuals

16. BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES AND IT SUPPORT
What external business pressures create threats and opportunities for today’s businesses?
How have organizations responded to these pressures?
How does IT support these organizational responses?

18. Business Pressures: Market
BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES AND IT SUPPORT
BUSINESS PRESSURES
Business Pressures: Market
Global economy and strong competition
NAFTA, EU, etc.
Rise of India and China
Global labor costs
Need for real-time operations
The online marketplace never closes and up-to-the-minute information is required for organizational decision making
The changing nature of the workforce
The workforce is becoming more diverse and includes increasing numbers of women, single parents, minorities, and persons with disabilities
Powerful customers
Customers have access to vast amounts of information and have access to a large number of retailers and service providers

19. Business Pressures: Technology
BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES AND IT SUPPORT
BUSINESS PRESSURES
Business Pressures: Technology
Technological innovation and obsolescence
New technologies are constantly being developed
These new technologies must be considered when creating new innovative products, services, and processes
Old technology rapidly becomes obsolete
Information overload
The amount of information collected, stored, and made accessible to organizations and individuals continues to grow
Without proper IT tools, the information flood can be overwhelming
IT’s such as search engines and data mining tools provide support for incorporating this vast amount of information into real-time organizational decision making

20. Business Pressures: Societal/Political/Legal
BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES AND IT SUPPORT
BUSINESS PRESSURES
Business Pressures: Societal/Political/Legal
Social responsibility
Responsibility not only to traditional organizational stakeholders, but also society as a whole
Compliance with government regulations and deregulation
Protection against terrorist attacks
Ethical issues
Ethics relates to general standards of right and wrong
Information ethics relates specifically to standards of right and wrong in information-processing practices (or other online activities)

21. ORGANIZATIONAL RESPONSES
BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES AND IT SUPPORT
ORGANIZATIONAL RESPONSES
Strategic systems
Customer focus and service (CRM), self-service
Continuous improvement and business process reengineering
Make-to-order and mass customization
Better data management
Business alliances
E-business and e-commerce

22. IT SUPPORT FOR ORGANIZATION RESPONSES
BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES AND IT SUPPORT
IT SUPPORT FOR ORGANIZATION RESPONSES
IT support for business activities has evolved quite dramatically from the 1950s through today
This topic is discussed in more detail in the following chapter

23. Example: Grocery Store Checkout
Old Process
New Process
In the “old-old” economy, when you visited retail stores you placed your items in a shopping cart and proceeded to checkout
The clerk manually entered the price for each item and you paid for them in cash
The store gathered no information about the transaction other than receiving payment
In the new economy you take your items to a self-service kiosk where you swipe the barcode for each item over a reader and then pay by cash, credit card or debit card
In the coming generation of checkout technology all items with have wireless RFID tags allowing you to simply walk your cart through a device to total up the price and make payment

24. Example: Photography Old Process New Process
You buy film at the store, insert it into your camera, and take pictures
Once you complete the film, sometimes weeks or months after you began the roll, you take it to the store (or mail it) for processing
Go back to the store and pay for enlargements and duplications
Send photos by mail to family and friends
Video requires a second, different, camera
Use a digital camera that can also take videos
No film is needed, and no processing is required
You can see the results immediately and enlarge and print photos quickly
In minutes you can electronically send the pictures to your family and friends
You can view the pictures on personal computers, personal digital assistants (PDAs), and other digital devices

25. WHY ARE INFORMATION SYSTEM IMPORTANT TO ME?
Information systems are important to you for a variety of reasons:-
First, information systems and information technologies are integral to your life.
Second, the IS field offers many career opportunities.
Finally, all functional areas in an organization utilize information systems.
INFORMATION SYSTEM AND INFORMATION TECHNOLOGY ARE INTEGRAL TO YOUR LIVES
There are many examples of the ways in which information systems and technologies
are embedded in your lives. For example, thinks of all you can do online:
Register for classes
• Take classes, and not just classes from your university 
• Access class syllabi, information, PowerPoints, and lectures
• Research class papers and presentations
• Conduct banking
• Pay your bills
• Research, shop, and buy products from companies or other people
• Sell your “stuff” •

26. WHY ARE INFORMATION SYSTEM IMPORTANT TO ME?
INFORMATION SYSTEM AND INFORMATION TECHNOLOGY ARE INTEGRAL TO YOUR LIVES
• Search for, and apply for, jobs
• Make your travel reservations (hotel, airline, rental car)
In addition to all the activities you can perform online, there are other examples of how information systems and information technologies are essential to your daily living.
For example: you may not use a regular wire line telephone. Rather, you
use a smart phone that has a calendar, an address

27. IT OFFERS CAREER OPPORTUNITIES
WHY ARE INFORMATION SYSTEM IMPORTANT TO ME?
IT OFFERS CAREER OPPORTUNITIES
Because information technology is vital to the operation of modern businesses, it
offers many employment opportunities.
The demand for traditional IT staff- programmers, business analysts, system
analyst and designers.
The information system field includes the people in organizations who design and
build information systems, the people who use those systems, and the people
responsible for managing those systems.

29. MANAGING INFORMATION RESOUCES
WHY ARE INFORMATION SYSTEM IMPORTANT TO ME?
MANAGING INFORMATION RESOUCES
Managing Information System in modern organizations is difficult, complex task.
Information Systems have enormous strategic value to organizations.
Information Systems are very expensive to acquire, operate and maintain.
Factor contributing to the difficulty in managing information systems is the evolution
of the management systems (MIS) function within the organization.