CHAPTER 2: Information Systems and the Modern Organization

- Business Process:

A collection of related activities that produce a product or a service of value to the organization, its business partners, and/or its customers..

- Business Process Reengineering and Business Process Management:

*Business Process Reengineering (BPR):

a radical redesign of a business process that improves Its efficiency and effectiveness, often by beginning with a “clean sheet.”

Business Process Management (BPM):

A management technique that includes methods and tools to support the design, analysis, implementation, management, and optimization of business processes.

  

BPM and BPR can be considered as complimentary to each other rather than as a substitute. They both contribute to the value addition of the organization. Just the point to be noted here is that when BPR is done, even the mission and vision of the company could be redesigned and reconsidered. Therefore the deep change organizations go through could be sometime uncomfortable and very risky. It even shakes the prevailing culture in the company. On the contrary BPM is very flexible in nature and it concentrates one or more process at a time, mostly automating and making them simple. It is neither risky nor too expensive to implement.

Both of them have their own benefits and shortcomings. BPM contributes directly to the customer satisfaction by immediately working on it whereas BPR studies the organization process from the start and removes the processes which are barriers to the organizational growth. When the processes become very slow and is not able to fetch the desired result BPR comes in the scene.

n Business Process: a collection of related activities that produce a product or a service of value to the organization, its business partners, and/or its customers.

n One functional area

n Cross-functional

Business Process Reengineering (BPR) a radical redesign of a business process that improves Its efficiency and effectiveness, often by beginning with a “clean sheet.”

Business Process Management (BPM) a management technique that includes methods and tools to support the design, analysis, implementation, management, and optimization of business processes.

Strategic Systems

·       increase market share and/or profits

·       better negotiate with suppliers

·       prevent competitors from entering their markets.

Customer Focus

Retaining current customers and attracting new ones

Make-to-Order and mass customization

producing customized products and services

Reebok                                                         

Dell

E-business and E-commerce

Buying and selling products and services electronically.     

 E-business is a broader concept than e-commerce.

B2C , C2C, B2B

Competitive Advantage and Strategic Information Systems

þ Cost Strategy

Example: Using computer-aided manufacturing systems to lower production costs

                creating web sites for electronic commerce to lower marketing costs

þ Differentiation Strategy

Example: Providing fast and complete customer support services via the Internet

þ Innovation Strategy

Example : Introduce unique product/service that include IS compo net     Customer- orientation Strategy : concentrate on making customers happy 

http://bpmgeek.com/blog/business-process-management-vs-business-process-reengineering