International Business Overview

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Management Information System

Chapter 13: BUILDING INFORMATION SYSTEMS

Structural organizational changes enabled by IT

1. Automation

• Increases efficiency

• Replaces manual tasks

2. Rationalization of procedures

• Streamlines standard operating procedures

• Often found in programs for making continuous quality improvements

– Total quality management (TQM)

– Six sigma

3. Business process redesign

• Analyze, simplify, and redesign business processes

• Reorganize workflow, combine steps, eliminate repetition

4. Paradigm shifts

• Rethink nature of business

• Define new business model

• Change nature of organization

ORGANIZATIONAL CHANGE CARRIES RISKS AND REWARDS

The most common forms of organizational change are automation and rationalization. These relatively slow-moving and slow-changing strategies present modest returns but little risk. Faster and more comprehensive change—such as redesign and paradigm shifts—carries high rewards but offers substantial chances of failure.

Business process management (BPM)

– Variety of tools, methodologies to analyze, design, optimize processes

– Used by firms to manage business process redesign

Steps in BPM

– Identify processes for change (e.g. customer ordering a meal, kitchen preparing & delivering that meal, etc. )

– Analyze existing processes

– Design the new process

– Implement the new process

– Continuous measurement

Variety of tools for BPM, to

– Identify and document existing processes

• Identify inefficiencies

– Create models of improved processes

– Capture and enforce business rules for performing processes

– Integrate existing systems to support process improvements

– Verify that new processes have improved

– Measure impact of process changes on key business performance indicators

Systems development:

– Activities that go into producing an information system solution to an organizational problem or opportunity

– Systems analysis

– Systems design

– Programming

– Testing

– Conversion

– Production and maintenance

Systems analysis

– Analysis of problem to be solved by new system

• Defining the problem and identifying causes

• Specifying solutions

– Systems proposal report identifies and examines alternative solutions

• Identifying information requirements

– Includes feasibility study

• Is solution feasible and good investment?

• Is required technology, skill available?

– Establishing information requirements

• Who needs what information, where, when, and how

• Define objectives of new/modified system

• Detail the functions new system must perform

– Faulty requirements analysis is leading cause of systems failure and high systems development cost

Systems design

– Describes system specifications that will deliver functions identified during systems analysis

– Should address all managerial, organizational, and technological components of system solution

– Role of end users

• User information requirements drive system building

• Users must have sufficient control over design process to ensure system reflects their business priorities and information needs

• Insufficient user involvement in design effort is major cause...
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