A business process is a network of activities by putting inputs into outputs. There are two broad categories for process: structured process and dynamic process. Structured process is a standardized process that consist of everyday operations such as making an order, accepting returns, purchase materials, ect… Whereas dynamic processes are informal and adaptive processes that are often used in managerial decisions. Dynamic processes requires human judgement as they are strategic decisions. A workgroup process helps a department fulfills the charter and goals. An example would be the doctor’s office. Enterprise processes multiple departments such as hospitals. They often have 100-1000 users. Inter-enterprise span two or more independent organizations.
Process can be improved by 3 ways: change the process structure, change the process resources, change both process structure and resources. Changing the process might be efficient if the company just need to reorganize the process by switching the order of the steps. For example. Instead of checking inventory first, we can change to checking customer’s credit first so company doesn’t waste money on credit checking customer that got denied. If the process is not effective because it takes to long, then change the resources or add more resources. If there is a long wait at cash register, then we should add more cashier to make business more effective. Process efficiency is the ratio of output to inputs. Process effectiveness is how well a process achieve organizational strategy. Information system can improve process quality by performing an activity, augmenting a human who is performing an activity, and controlling data quality and process flow.
Business process re-engineering (BPR) is the activity of altering existing and designing new business processes to take advantage of new information system. Create more effective linkages in value chains. It is known for difficulty, slow and expensive. Inherent processes are predesigned procedures for using the software products, saved organizations from the expense, delays, and risks of business process reengineering. Customer life cycle inlcudes marketing (attract), customer acquisition(sell), relationship management(support and resell), and loss/churn (categorize). CRM database functions includes lead management apps, sales apps, relationship management apps, customer support apps. This design eliminates duplicated data and removes the possibility of inconsistent data.This database will allow the company to know not to provide $1000 labor support to a $300 customer. Enterprise resource planning is suite of apps called modules and a set of inherent processes for consolidating business operations into a single and consistent platform. It Includes functions of CRM system but also incorporate accounting, manuf, inventory, and HR apps.
ERP apps programs by ERP vendors design apps programs to be configurable so that development teams can alter them to meet an organization’s requirement without changing program code. ERP Databases develop ERP solution includes a database design as well as configuration data. Business Process Procedure is a set of inherent procedures that implement standard business processes. Training and consulting are necessary because of its complexity, ERP vendors have developed training curricula and classes.Enterprise apps integration are developed to solve those problems especially in manufacturing companies. Function of EAI includes connect system island via new layer of software/system, enable existing apps to communicate and share data, provides integrated info, leverage existing systems-leaving function apps as is but provide integration layer, enables a gradual move to ERP. When the CRM apps send data to the manufacturer app system, the CRM system sends its data to an EAI software program. EAI makes the conversion
Industry-specific solution allows ERP vendors to provide starter kits for specific industries. These solutions contain program and database configuration files as well as process blueprints that apply implementations in specific industries. Challenges of implementing enterprise information system includes collaborative management, requirement gaps, transition problems, employee resistance, new technology. Some of the problems of information Silos are data duplicated, inconsistency, isolated, disjointed processes. It is Inefficient as decisions are made in isolation. Also Increase cost. To fix the problem companies need to integrate into single database, revise apps, allow isolation manage.
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