 Support Decision Making of Different Management Level

 Supporting in processes of major business functions

Functional and Cross
Functional Business Process
Business Process Modelling
Value Addition
Simplification
Gaps and handoffs
Clean Sheet
Automation
Possible To-Be Model
 Graphical representation of activities and decisions
 To understand environment(Process, organization, technology)
of the process
 Provide a business context for the project(CIMB case)
 Provide all stakeholders with a common understanding of the
process
 Identify problems and potential improvements
 Provide basis for further discussions and analysis
TPS
Business intelligence / decision support systems
 Business intelligence >> aggregate data>> present data>> enrich
data>> inform decision
 BI applications >> DATA Mining application, digital dashboards, AI,
OLAP
 Management information system
 DSS
 Model Driven
 Data Driven
 ESS
 Digital Dashboards
• Data cleansing Business Understanding
• Data warehouses Data Understanding
• Task relevant data Data Preparation
• Data mining
Model Building
• Selection of data
Testing and Evaluation
• Pattern evaluation
Deployment
Buying pattern
Cross product analysis
Customer profiling
Customer requirements
Enterprise Application
 Enterprise System
 SCMS
 Inter-organizational Systems
 CRMS
 Knowledge Management System
 Gathers relevant information to improve the business process
E-Business
 Internal business activities based on internet
 not just the buying and selling of goods and services,
 but also servicing customers, collaborating with business
partners,
 and conducting electronic transactions within an organization.
E-Commerce
 Part of E-Business
 Online buying and selling
Business benefits of collaboration and team work
Productivity
Quality
Customer services
Innovation
Financial performances
Direction
Achieving competitive advantage
Resourcefulness
Fulfilment of expectations
New Entrants • Low cost leadership
Suppliers • Enter market niche
Customers • Product differentiation
Substitute Products
• Customer supplier intimacy
Competitors
 Innovative applications.
 Competitive weapons.
 Changes in processes.
 Links with business partners.
 Cost reductions.
 Relationships with suppliers and customers.
 New products
 Competitive intelligence.
 WHY DISPARATE SYSTEMS IN
ORGANIZATION?
Different system for different functions
Development trough organic growth
Developed via acquisition of smaller firms
 Span functional areas

 Execute business processes across firm

 Include all levels of management

 Coordination and Integration of all related business processes

 Work together as one corporate system.

 automate the flow of information across organizational

boundaries
 Suite of integrated software modules and a Common central
database
 Business processes (based on best Industry practices) are pre-
defined and embedded in the software
 Data collected mostly from all departments
 Information entered by one process is readily available to
other business processes
 Generate enterprise-wide reports for management decision
making
Integrations
Packages
Best Practices
Industry best practices
Accelerated SAP
Internal
 Integration
 Common data point
 Real time system
 Increased productivity
 Low operating costs
 Improved internal communication
 Foundation of future improvements
External
Improved customer services
Improved communication with supplier and
customer
Better competitive position
Increased Sales - profits
 Advantages • Disadvantages
• Complexity for coordinating and organizing • There is a longer project
the project and resources is reduced throughput time
• The quality of the projects improves because
the project members increase their
• Integration advantages of the
knowledge and skills project can only be used step
by step
• A team of internal consultants can be
established over time, reducing the cost of • Return on investment is
the project generally delayed
• There is a smoother changeover throughout
the company: people have time to adapt to
changes
• Costs are spread over a longer period of time
 Advantages
• No interfaces between legacy systems and the new
application are needed because all modules go live
at the same time
• There is a short throughput time
• It is highly efficient, because redundant customizing
is avoided
• There is optimal integration of all components under
consideration of the integrated business processes
Disadvantages
• The implementation is complex
due to the increased need for
coordination and integration
• It is resource intensive over a
short period of time
• Employees are subject to higher
stress levels at the same time
• A high degree of consulting
support is required
• High resistance from staff and
other stakeholders
Advantages
• There is valuable experience gained by project members
• Expertise is available for a fast implementation
• Costs are kept low because only limited resources are needed
• Standard business processes can be achieved by using a model
implementation and leveraging the same design
Disadvantages
• Site-specific requirements can be overlooked
1- Project Preparation
2- Business Blue-Prints
3- Realization
4- Final Preparation
5- GO Live & Support
 A new business model that uses IT in a
fundamental way to accomplish one or more of
three basic objectives: reach and engage customers
more effectively, boost employee productivity, and
improve operating efficiency. It uses converged
communication and computing technology in a way
that improves business processes.
 brick-and-mortar (old economy) Old-economy organizations
(corporations) that perform their primary business offline, selling
physical products by means of physical agents.

 virtual (pure-play) organizations

Organizations that conduct their business activities solely
online.(Google)

 click-and-mortar (click-and-brick) organizations

Organizations that conduct some e-commerce activities, usually as an
additional marketing channel.(Walmart)
MAJOR CHARACTERISTICS OF E-MARKETPLACES
–Greater information richness
–Lower search costs for buyers
–Diminished information asymmetry
–Greater temporal separation between time of
purchase and time of possession
–Ability of buyers and sellers to be in different
locations
TYPES OF E-COMMERCE
(TYPES OF E-
MARKETPLACES)
TYPES OF E-COMMERCE
E-GOVERNMENT
Business models are “stories that explain how
enterprises work. A good business model answers
Peter Drucker’s age old questions:
Who is the customer?
And what does the customer value? It also
answers the fundamental questions every manager
must ask: How do we make money in this business?
What is the underlying economic logic that explains
how we can deliver value to customers at an
appropriate cost?” (p. 4).
WHY A NEW IS?
Problems are undesirable situations that prevent the
organization from fully achieving its purpose, goals, and
objectives.
Problems may either be current, suspected, or anticipated.

An opportunity is a chance to improve the organization even in

the absence of specific problems.

Adirective is a new requirement that's imposed by

management, government, or some external influence.
 Framework for classifying problems, opportunities, and directives.
 It is called PIECES because each of the letters represent one of six
categories.
 P - the need to improve performance.
 I - the need to improve information (and data).
 E - the need to improve economics, control costs, or increase profits.
 C - the need to improve control or security.
 E - the need to improve efficiency of people and processes
 S - the need to improve service to customers, suppliers, partners,
employees, etc.
 Early application
Information Technology
 Replacement of manual steps
or processing or functions
 Assisting employees with
performing their tasks more
efficiently and effectively.
 Examples
 Payroll System
 Bank Deposit/Withdraw System
 Ticket Reservation System
 Low Risk and Low return
of  Rationalization is not only
automation but also
 The streamlining of existing Process
or standard operating
procedures(SOPs)
 CIMB Banks simplified the business
process for opening a customer
account.
 CIMB streamlined its workflow to
take advantage of Government
Multipurpose Card.
 The new process automatically
extract most of the identification
data from a MyKad card, to open an
account
Identify processes for change

Analyse existing processes

Design the new processes

 This more radical form of
business change
 Rethinking the nature of the
business The day I took on my new role I said that our industry does not

respect tradition – it only respects innovation. I also said that in

 Rethinking the nature of the
organization.
 Often fail because extensive
organizational change is so
difficult to orchestrate
order to accelerate our innovation, we must rediscover our soul –
our unique core.We must all understand and embrace what only
Microsoft can contribute to the world and how we can once again
change the world. I consider the job before us to be bolder and
more ambitious than anything we have ever done.

 But on other hand rewards are so

equally high
 Example:
 Rozenbluth International,
Systems development life cycle
(SDLC) – the overall process for
developing information systems
from planning and analysis
through implementation and
maintenance
 Planning phase - create a solid plan for developing your
information system

 Three primary planning activities:

1. Define the system to be developed

2. Set the project scope

 Project scope - clearly defines the high-level system requirements

3. Develop the project plan including tasks, resources, and timeframes

 Analysis phase - involves end users and IT specialists working
together to gather, understand, and document the business
requirements for the proposed system
 What is requirement?
 A condition or capability needed by a stakeholder to solve a
problem or achieve an objective”

 A condition or a capability that must be met or possessed by a

solution to solve a problem or achieve an objective
 Two primary analysis activities: 2. Prioritize the requirements
1. Gather the business requirements  Requirements definition
document – prioritizes the
 Business requirements - the detailed
business requirements and
set of knowledge worker requests that
places them in a formal
the system must meet in order to be
comprehensive document
successful
 Again, you probably can’t do
 Business requirements address the
everything, so prioritizing is
“why” and “what” of your
important
development activities
 Users sign off on this
 Workshop or Joint application
document which clearly sets
development (JAD) - knowledge
the scope for the project
workers and IT specialists meet,
sometimes for several days, to define
or review the business requirements
for the system
 Design phase - build a technical blueprint of
how the proposed system will work
 Two primary design activities:
1. Design the technical architecture
 Technical architecture - defines the hardware, software,
and telecommunications equipment required to run the
system
2. Design system models
 This includes GUI screens that users will interface with,
database designs, report formats, software steps, etc
 Development phase - take all of your detailed
design documents from the design phase and
transform them into an actual system
 Two primary development activities:
1. Build the technical architecture
2. Build the database and programs
 Both of these activities are mostly performed by IT
specialists
 Testing phase - verifies that the system works and meets all
of the business requirements defined in the analysis phase
 Two primary testing activities:
1. Write the test conditions
 Test conditions - the detailed steps the system must perform along with the
expected results of each step
2. Perform the testing of the system
 Unit testing – tests individual units of code
 System testing – verifies that the units of code function correctly when
integrated
 Integration testing – verifies that separate systems work together
 User acceptance testing (UAT) – determines if the system satisfies the
business requirements
 Implementation phase - distribute the system to all of the knowledge
workers and they begin using the system to perform their everyday
jobs
 Two primary implementation activities
1. Write detailed user documentation
 User documentation - highlights how to use the system
2. Provide training for the system users
 Online training - runs over the Internet or off a CD-ROM
 Workshop training - is held in a classroom environment and lead by an instructor
 Choose the right implementation method
 Parallel strategy,– use both the old and new system simultaneously
 Big bang implementation – discard the old system completely and use the new
 Pilot implementation – introduces the new system to only a limited area of the organization
 Phased implementation – implement the new system in phases
 Maintenance phase - monitor and support the new
system to ensure it continues to meet the business
goals
 Two primary maintenance activities:
1. Build a help desk to support the system users
 Help desk - a group of people who responds to knowledge
workers’ questions
2. Provide an environment to support system changes
•Network of organizations & business processes for
–Procuring raw materials,
–Transforming these materials into intermediate and finished
products,
–Distributing the finished products to customers.
•It links
–Suppliers, Manufacturing plants, Distribution Centers, Retail
outlets, and customers
–Supply goods and services from source through
consumption.
•Materials, information, and payments flow through the supply
chain in both directions
TWO STREAMS OF SUPPLY CHAIN?
• Upstream of supply chain
–It includes the company’s suppliers, the suppliers’
suppliers,
–the processes for managing relationships with
suppliers at all levels

• Downstream of supply chain

–It includes organizations and processes for
distributing and delivering products to the final
customers.
 One recurring problem in supply chain management is the bullwhip effect, in
which information about the demand for a product gets distorted as it passes
 from one entity to the next across the supply chain. A slight rise in demand for an
item might cause different members in the supply chain—distributors,
 manufacturers, suppliers, secondary suppliers (suppliers’ suppliers), and tertiary
suppliers (suppliers’ suppliers’ suppliers)—to stockpile inventory so each
 has enough “just in case.” These changes ripple throughout the supply chain,
magnifying what started out as a small change from planned orders, creating
 excess inventory, production, warehousing, and shipping costs (
• Supply Chain planning systems
–Model existing supply chain,
–Demand planning and forecasting
–Develop optimal sourcing and manufacturing plans
–Example: Cannondale Demand Planning System

• Supply Chain execution systems

– Manage the flow of products through distribution centres and warehouses
– Products delivery to the right locations in the most efficient manner.
– Tracking the physical status of goods
– the management of materials, warehouse and transportation operations
– Example: UPS Package Tracking System
 Customer Relationship Management Systems Firms use
customer relationship management
 (CRM) systems to help manage their relationships with their
customers. CRM systems provide information
 to coordinate all of the business processes that deal with
customers in sales, marketing, and
 service to optimize revenue, customer satisfaction, and
customer retention. This information helps
 firms identify, attract, and retain the most profitable customers;
provide better service to existing customers;
 and increase sales.

A shift in thinking
 Transaction  Learning relationship • Obsessing over our customers
 Mass Marketing  Individual
marketing
 Transaction Value  Life time value
 Product Life Cycle  Customer Life
Cycle
 Customer Satisfaction  Customer
Loyalty
 Share of the market  Share of the
customer
 Product differentiation  Customer
differentiation
• First, we will obsess over our
customers.
is everybody's job.
• I'm looking to the engineering
teams to build the experiences
our customers love.
• I'm looking to the sales and
marketing organizations to
showcase our unique value
propositions and drive
customer usage first and
Operational CRM
• Customer-facing applications, such as
–sales force automation
–Call centre and customer service support
– Marketing automation
Analytical CRM
• Applications that mine customer data generated by operational
CRM
• For improving business performance and decision making
ANALYTICAL CRM
Direct marketing:
Cross-product analysis

Customer profiling
 Measures Churn rate
 number of customers who stop using or purchasing products or services

Determine Customer lifetime value (CLTV)

– Revenue produced by a specific customer,
– Expenses incurred in acquiring and servicing that customer, and the
– Expected life of the relationship
Avoid the following Four Perils of CRM)
Peril 1: Implementing CRM Before Creating a Customer
Strategy

Peril 2: Rolling Out CRM Before Changing Your

Organization to Match

Peril 3: Assuming that More CRM Technology Is Better

Peril 4: Stalking, Not Wooing, Customers