Organzational Information systems and their impact

16 important questions on Organzational Information systems and their impact

What are functional systems?

Functional systems are expressly designed to support the specific needs of individuals in the same functional area (like product planning systems) .Functional systems worked well until the upcoming of ERP systems.

What are limitations of functional and hierarchical systems?

Their lack of integration and considerable redundancy of data

What is Business process re-engineering?

BPR is a managerial approach that employs a process view of organizational activities. BPR is a method to seek internal business integration with performance improvements, looking for duplication of efforts accros separate functions and eliminate them.
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What are the risks of BPR?

BPR requires third order change (see chapter 2) and leads to down-sizing and lay-offs (resistance). Because of the high degree of change, BPR is also very expensive to implement

What are the dimension of integration?

Object and Locus. Locus can either be internal (inside the companies boundaries) or external (outside). Object means; what assets the firm is looking to unify or combine. This can be differentiated into business integration and system integration.

What is business integration?

Bussiness integration is unification or the creation of tight linkages among the diverse, but connected business activities carried out by individuals, groups or departments within in organization. Business must:

  • Provide "one face" to the customer > services based on customers needs
  • Providing coordinated solutions > provide solutions, not only services or product
  • Achieving global inventory visibility > Customers want to make modification on your products of service and they want their question be answered quick

What is system integration?

First: Business integration can not work without system integration because we need the linked infrastructure.

System integration refers to the unification of tight linkage of IT-enabled information systems and databases. Goal; IS underpinning the technology component of business integration strategies. Outcome = connect compatible systems that regurarly exchange information.

Application integration is connection between different software programs.
Database integration is between several databases.

What are he integration trade-offs?

Benefits; reduction of duplication and redunancy
Acces to info, speed and response time
Drawbacks;
Increased coordination costs
Reduced local flexibility

What are the principal characteristics of an enterprise system?

Modularity; which functionaliteits do you want to use and which not
application integration; native integration
Data integration; one database
Configurability; parameterized, setting parameters for each organization

What are the advantages and disadvantages of ERP?

ADV:
  • efficiency
  • responsiveness
  • knowledge infusion
  • Adaptability
DIS:
  • standardization and flexibility
  • Is the best practice from the ERP perspective really the best?
  • Strategic clash: What if unique business proces, you see as competitive differation, will not be supported?
  • High costs and risks

How can we categorize knowledge, with respect to its object?

  • Knowing what (MBO); ability to collect, categorize and assimilate information
  • Knowing how (HBO); ability to recognize or create the sequence of steps that are needed to complete a task or carry out an activity
  • knowing why (UNI); understanding the cause-effect relationships and the laws that govern an give phenomen.

How can we categorize knowledge, with respect to its type?

  • Explicit knowledge; can be articulated, codified and transfered with relative ease. > Training manual
  • Tactical knowledge; individuals posess this knowledge but find it difficult to articulate, codify and transfer. (instinct).

Firms find it easer to handle explicit knowledge than tactical knowledge.

What is BI (business intelligence)?

Intelligence; the ability to gather and make sense of information about your business
BI encompasses a set of techniques, processes and technologies designed to enable managers to gain superior insights and understandig.

Goal of bi: designed to enable better decisions

What is BI infrastructure?

the set of applications and technologies designed to create, manage, and analyse large repositories of data in an effort to extract value from them.

Can consists of:
  • Data warehouse  >  collect and consolidates data from different source systems
  • Data mart > scaled down version of data warehouse that focuses on specific audiances. Disadvantages: potentially data redundancy and lack of data consilidation
  • online analytical processing > Enables a knowledge worke rto easily and selectively extract and view data from an analytical database
  • Data mining > automatically discover non-obvious relationships in large databases

What are the limitations of CRM?

  • Firm centric: only relies on transactionals and bahavioral customer data it owns
  • Limited predictive ability; crm relies on historical data, where only the customer knows about future plans

What is the best-of-breed approach while looking at IS systems?

Best-of-breed approach is designed to enable the firm to retain a high degree of flexibility with respect to the applications it decides to adopt, while stile being able to achieve tight integration between them. It comes with the term enterprise application integration by which systems are linked with interfaces. This approach allow the firm to implement the module or application that best suits its information processing needs.

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