BIA - Chapter 7: Organizations and Information Systems

what are the problems of information silos?

- Duplicated Data - Data Inconsistency - when an organization has inconsistent duplicated data, it is said to have a data integrity problem. - disjointed processes - when applications are isolated, business processes are disjointed. - a consequence of such disjointed activities is the lack of integrated enterprise information. - inefficiency. (when using isolated functional applications, decisions are made in isolation.) - w/o integration, the left hand of the organization doesn't know what the right hand is doing. - increased cost for the organization. (duplicated data, disjointed systems, limited information, and inefficiencies all mean high costs!!!!)

whether from a new implementation or an upgrade, expense and risks arise from four primary factors:

- collaborative management - requirement gaps - transition problems - employee resistance

how do CRM, ERP, and EAI support enterprise systems?

- help organizations rethink how they do work - inherent processes - eliminate costs of developing complex applications in-house.

CRM Applications

- solicitation and lead management application - sales applications - relationship management applications - customer support applications

four phases of the customer life cycle:

1. Marketing 2. Customer Acquisition 3. Relationship Management 4. Loss/Churn

How do Information Systems vary by scope? --> through the 4 types of Information Systems:

1. Personal 2. Workgroup 3. Enterprise 4. Inter-Enterprise

How do enterprise systems solve the problems of departmental silos?

1. Sales and Marketing 2. Operations 3. Manufacturing 4. Customer Service 5. Human Resources 6. Accounting It's completely natural for a workgroup to develop information systems solely for its own needs, but, over time, the existence of these separate systems will result in information silos that cause numerous problems.

what are the challenges when implementing enterprise systems? [FOUR PRIMARY FACTORS]

1. collaborative management using committees and steering groups 2. identify requirement gaps 3. transition problems - implement while continuing to run the business 4. managing employee resistance via communication, self-efficacy, positive incentives.

how do organizations solve the problems of information silos?

By integrating the data into a single database and revise applications (and business processes) to use that database! --> use enterprise-wide applications If that isn't practical, another remedy is to allow the isolation, but to manage it to avoid problems.

Problems of information systems?

Duplicate Data which can lead to data inconsistency between two different departments Disjointed business process due to isolated applications. limited information and lack of integrated information isolated decisions which lead to organizational inefficiency higher costs

what is an inter-enterprise information system?

Information systems that are shared by two or more independent organizations. ex: the PRIDE system that's shared among patients, healthcare providers, health clubs, insurance companies, and employees. - 100-1000 users -formalized procedures - problems effect multiple organizations -difficult to change

what is an personal information system?

Information systems used by a single individual. ex: A Drug Salesperson, contacts in your iPhone. simple procedures that are not documented in a formalized way problems are isolated easy to manage and change

what's an information silo?

It's the condition that exists when data are isolated in separated information systems. Silos come into existence as entities at one organizational level create information systems that meet only their particular needs.

what do the separate IS for each department create?

Silos which can end up causing problems

what is departmental information systems?

Workgroup information systems that support a particular department. ex: the accounts payable system that is used by the accounts payable department.

what is a customer relationship management (CRM) system?

a suite of applications, a database, and a set of inherent processes for managing all the interactions with the customer (life cycle), from lead generation to customer service. every contact and transaction with customer is recorded in CRM database supports customer-centric organization

what is enterprise application integration (EAI)?

a suite of software applications that integrates existing systems by providing layers of software that connect applications together. - it connects system "islands" via a new layer of software system - it enables existing applications to communicate and share data - it leverages existing systems - leaving functional applications as is, but providing an integration layer over the top - it enables a gradual move to ERP links departmental silos together enables communication and sharing data provides integrated info provides integrated layer-over top of existing applications enables gradual move to full ERP

what is workgroup information systems?

an information system that facilitates the activities of a group of people. These IS support 10 to 100 users. ex: A Physician Partnership - departmental IS - functional IS procedures are understood within the entire group problem solutions within the group. sort of difficult to change used to manage patient appointments, keep patient records.

what is enterprise resource planning (ERP)?

it is a suite of applications, a database, and a set of inherent processes for consolidating business operations into a single, consistent computing platform. ERP systems are used to forecast sales and to create manufacturing plans and schedules to meet those forecasts. EXAMPLE - sales applications - relationship management applications - customer support applications - accounting applications - manufacturing application(s) - inventory applications (s) - human resource application (s) - solicitation and lead management application

what does data inconsistency cause?

lack of data integrity

what are functional information systems?

other workgroup information systems that support a particular business function. ex: a sales application like the Zulily app shown in chapter extension 8.

what are inherent processes?

predesigned/prebuilt procedures based upon "industry best practices" for using the software products. saves organizations from expensive and time-consuming business process reengineering.

what is business process reengineering (BPR)?

the activity of altering existing and designing new business processes to take advantage of new information systems. it is difficult, slow and exceedingly expensive. systems analysts interview key personnel throughout organization requires high-level, expensive skills and considerable time BMP set stage for emergence of three major enterprise applications

what are enterprise information systems?

they are IS's that span an organization and support activities of people in multiple departments. At a hospital, doctors, nurses, the pharmacy, the kitchen, and others use IS to track patients, treatments, medications, diets, room assignments, etc. These IS typically have hundreds to thousands of users. Ex: Hospital