4/17/20 Information Systems in Organizations and Society - Week 4

HOW INFORMATION SYSTEMS SUPPORT

BUSINESS AND BUSINESS PROCESSES

Course: CIS1003
Week 4 Presentation
Pages 35-47 ( 2.1, 2.3, 8.4, 11.1, 11.2, 11.5, 11.6, 11.7)

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 4/17/20 Information Systems in Organizations and Society - Week 4

1. What is a Business Process?

2. How does IT Support Business Process?

3. Supply Chain Management (SCM)

4. Three Parts of Supply Chain Management

5. Customer Relationship Management

6. Radio Frequency Identification (RFID)

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TableofContents
 4/17/20 Information Systems in Organizations and Society -
Week 4

1. Distinguish between activity and process

2. Stock & stock Level
3. Buying goods, purchasing.
4. SCM
5. POS
6. Internal V External
7. Upstream, Internal & Downstream
8. RFID & its uses/advantages
9. CRM

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Vocab/Abbreva
io
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it
4/17/20 Information Systems in Organizations and Society - Week 4

1) What is a Business
Process?

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 4/17/20 Information Systems in Organizations and Society - Week 4

1) What is a Business Process?

A business process is an activity or set of related activities that
will accomplish a specific organizational goal (e.g. creating a
product or service).

It also refers to the unique ways in which organisation

coordinate work, information.

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 4/17/20 Information Systems in Organizations and Society - Week 4

1) What is a Business Process?

Examples: Business Processes
Finance Business Processes:
1) Manage Bank Loan.
2) Manage Bill Payment
3) ATM Transaction Management

Human Resources Business Processes:

1) New Employee Hiring
2) Employee Training Management
3) Payroll Management
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 4/17/20 Information Systems in Organizations and Society - Week 4

1) What is a Business Process?

Process Activities Example:
Set of activities of “Manage Bill Payment (online)” Process:

1) System send bill to customer by email

2) Customer lookup account number and balance
3) Customer select type of payment (Credit card or Debit card)
4) Customer enters card number and security code
5) Customer submits payment
6) System sends payment confirmation to customer email 7
 Information Systems in Organizations and Society – Week 4

2) How Does IT Support Business Process

Advantages of IS in Business
Process
Execute process activities in a faster manner.
Store huge amount of data.
Help to monitor process status and take action
Improve the quality of organizations services.

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4/17/20 Information Systems in Organizations and Society - Week 4

3) Supply Chain
Management?

Very important

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 4/17/20 Information Systems in Organizations and Society - Week 4

Starbucks Supply Chain

Watch the video and answer the following
questions:
1- Which raw materials does Starbucks
produce?
2- Which raw materials does Starbucks buy
from other suppliers?
3- Summarize the story of how the cup of
coffee you order from Starbucks reaches you,
going all the way back to the coffee bean.

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 Information Systems in Organizations and Society - Week 4

3) Supply Chain Management

(SCM)?
While visiting Carrefour and Lulu Hypermarket, have you ever thought about how
goods get to Carrefour and Al Lulu shelves?

?
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 Information Systems in Organizations and
Society - Week 4

Carrefour Supply Chain

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 Information Systems in Organizations and
Society - Week 4

What is a Supply Chain?

 Supply chain: refers to the flow of materials, information,
money, and services from raw material suppliers, through factories
and warehouses, to the end consumers

• Chain is a network of retailers, distributors, transporters, storage facilities,

…etc.

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 Information Systems in Organizations and Society - Week 4

3) Supply Chain Management

(SCM)?
Supply chain Management: is to plan, organize the various activities performed along the
supply chain.

Why is it important? What is the benefit of SCM?

a) Reduce cost of business transactions
b) Improve quality of information flow (reduce errors/mistakes)
c) Reduce the time needed to complete business transactions
d) Share of information among organizations involved in the supply chain.

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 Information Systems in Organizations and
Society - Week 4

Upstream: Internal Downstream:

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4
T
)hree
components
o
S
fCM
system.
 Information Systems in Organizations and
Society - Week 4

4) Three components of SCM

system.
1. Upstream: sourcing or buying goods takes place.

2. Internal: packaging, assembly, or manufacturing of goods takes

place.

3. Downstream: distribution of goods to customers takes place.

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 Information Systems in Organizations and
Society - Week 4

• Upstream: Improve sale of stock between a company (e.g., manufacturer, assembler)

and its suppliers and their sub-suppliers, all the way to the origin of the materials.

Example:
• Car manufacturing company
purchase tyres from a tyre
manufacturing company.
• Tyre manufacturing company by
rubber from a rubber
manufactory.
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1.Upstream – Betweenacompanyandtsisuppelirs
 Information Systems in Organizations and Society -
Week 4

2.Internal- Inside a company

Internal: The flows and activities conducted within a company among its own departments. It includes the
processing of the materials.

• Supply Chain Management (SCM) software is used to support the activities of the chain.
Purpose: It helps in decision making and managing relationships with external partners.

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 Information Systems in Organizations and
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2.Internal - Inside a
company
Examples of Internal supply chain using Supply Chain Management software:

Manage shipping, receiving and delivering stock.

Control quantity of stock.

Select stock from stores. Manual or automated

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 Information Systems in Organizations and Society -
Week 4

Downstream: The flow of materials, products, and activities from the

manufacturing company to its distributors and to the consumer.

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 Information Systems in Organizations and
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5) Customer Relationship Management

(CRM)
CRM is a strategy where organizations concentrate on getting customers’
requirements for products and services and then providing high-quality products and
services to customers.
CRM is an example of downstream
CRM’s help businesses manage their relationship with customers.

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 Information Systems in Organizations and Society -
Week 4

CRM -Touching Applications

In customer-touching applications, customers interact directly with
online technologies and applications

Exmaples of CRM-Touch Apps:

 Emails

 Live chat online

 Automated call center

 Kiosk self service machines (ex. ATM, ... etc).

Source: © Spencer Grant/PhotoEdit
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 Information Systems in Organizations and Society -
Week 4

CRM -Touching Applications

Advantages of CRM-Touch Apps:

 Product search and comparison capabilities

 Technical support and services

 Customized products and services

 Loyalty programs

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 Information Systems in Organizations and Society -
Week 4

Summary
Supply chain management (SCM)

Internal

Upstream Downstream

Customer relationship
e-Procurement management (CRM)

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 Information Systems in Organizations and
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RFID: A method used to identify items using electronic tags (chips) that contains readable
information

To improve supply chain management companies use radio frequency identification (RFID)
technology.

RFID Vs. barcode

 In RFID Information can be read from a much greater distance (10 meters).
 Much more information can be stored on the RFID tag and it is more durable.

 Watch the video

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 Information Systems in Organizations and Society -
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Examples of Applications
using RFID

Shipments Tracking
Car Parking Entrance
Animal Tracking
Library Books Tracking

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 Information Systems in Organizations and Society -
Week 4

Quick tracking of items in real time (finding out where they are) – inventory tracking.
Finding out a lot of information about the item (or person or animal!).
Speed up the checkout of order process.

It is also used in:

 Transportation
 Hospitals
 Libraries

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Thebenefi
tsofRFID
 4/17/20 Information Systems in Organizations and
Society - Week 4

Review Questions (Multiple

Choices)
1. Starbucks worldwide uses an online survey link to collect customers feedback about the company’s
products and services. What type of IS used in this online link?

a. Customer Procurement
b. Customer Relationship Management
c. Management Information System.
d. Marketing Information System

2. A set of one or more activities that accomplish a particular organization's function or goal is called
what?

a. Tasks
b. Decisions
c. Business Process
d. Supply Chain

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Review Questions (Multiple

Choices)
3. Organizations use _________ segment to handle all manufacturing, and packaging activities..

a. Upstream
b. External
c. Internal
d. Downstream

4. (n) ____ tag can include the date of manufacturing, the plant (factory) in which the product was
made, lot number, expiration date, destination, and many other details that help track its movement
and sale.

a. UPC
b. EPC
c. RFID
d. ID

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Review Questions (Multiple

Choices)
5. __________ consists of three phases: procurement of raw materials, processing the materials into
intermediate and finished goods, and delivery of the goods to customers.

a. Sales Chain
b. Supply Chain
c. Supply Link
d. Sales Link

6. The main support provided by IT for the __________ is to improve procurement activities and
relationships with suppliers.

a. downstream supply chain

b. industry supply chain
c. interorganizational supply chain
d. upstream supply chain

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 4/17/20 Information Systems in Organizations and Society
- Week 4

Review Questions (Case

Study)
Example: Carrefour is a large hypermarket that has many branches all over the UAE. It stocks
many grocery including food items and non food items.
Q1: describe an example of one Business Process at Carrefour? Explain how the process works?

Answer:

Q2: describe an example of Supply Chain Management process at Carrefour?

Answer:

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Review Questions (Case

Study)
Q3: Describe in your own words the three segments of the supply chain. Use a local company or
college examples to illustrate your answer

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