The second lesson on MIS will talk about the global e-business and collaboration, continuing from the previous lesson which talking about the changes and globalization. The purpose of collaboration will definitely want to increase their performance or creating something they cannot be done alone. Hence, collaboration is usually done between two different business sectors. By doing so, they can share each expert and knowledge to create a new innovation that other single business cannot do.
Before going further, we need to know the organization structure of an organization. Basically, it is divided into the primary division and secondary division. Primary division is the basic or core department that a business need, no matter what the size. Operations, finance accounting, and sales marketing are the primary division that a company needs. Meanwhile, the secondary division is including human resource, IT, audit, and etc. Usually, a large scale company that has a lot of employees will need a clear job description for each department from the primary until the secondary. On the other hand, a small business like restaurant may only need the primary division.
The next question is βhow do we achieve our company goals or objectives?β. There are several terms that we need to focus on in order to achieve the goals. The first is the efficiency measurement. By doing the evaluation, we can improve our efficiency level over the time. The second is getting the right product to the customer, following by making a better decision. And the last is deliver a good product at the least cost or cost control. The least cost will link us to one of the strategies in competition, what we know as cost leadership strategy. However, in a real practice, cost leadership strategy will not work to sustain in a long run. This strategy will only work for a few cycles until there will be always a competitor come at a lower price.
Moving on to the business process; a business process is the collection of activities required to produce a product or service between each division. Each type of the business has each business process. The business process is needed to measure the efficiency and mitigate the problem. It provides a clear Standard Operating Procedure (SOP). The business process is accompanied by the flowchart so that it is easier to understand and being identified. In making flowchart, there are standards symbol uses.
Business Process Management (BPM) cycle
1. Design: the first planning step in running a business. A business plan is made at this stage. The task involves here might be doing research to know the demand for the product.
2. Model: in the second stages, the result of the planning is being tested. The testing process can be in term of a questionnaire to know the will of the target customer to purchase the product or services or questionnaire to know the price that they are willing to pay. Besides questionnaire, some products may need in lab experiment testing in this stage.
3. Execute: in case the product or service passes the testing period, then the plan is ready to execute or another start running the business.
4. Monitor: after running a business, the monitoring process start. This stage is needed to evaluate and mitigate the problems that might occur.
5. Optimize: Finally, the result of the monitoring process will bring to the evaluation and optimize the business.
In this case, MIS help the business by identifying the bottleneck, the main of the problem or even the small things that might lead to a problem later on. For example is the automation. Automation will work well if the system had been set so that the input sensor will lead to the output we want. MIS provides the information needed to set the system.
Information needed from MIS is different from each management level due to functions to carry their duties, level of security access, and the frequency it needs to be accessible. For example, the highest level of management who control the whole business will have the access to all departments where he or she can get the information needed.
Basically, the information system can be classified as Transaction Processing System (TPS) and Business Intelligent System (BIS). A transaction process system (TPS) is an information processing system for business transactions involving the collection, modification, and retrieval of all transaction data. The example is the payroll system.
Types of the system used in the business:
Β· Enterprise system
Basically, the enterprise system manages the business processes, information flows, reporting, and data analytics. It works by gathering and storing information that was previously fragmented in many different systems into a single comprehensive data repository where it can be used by many different parts of the business. Types of applications use in the enterprise system are Oracle, Net Suite, and SAP.
Β· Supply chain management systems
Supply chain management systems manage the customer requirement processing, purchase order processing, sales and distribution, inventory, goods receipt and warehouse management and also supplier management or sourcing. These systems help suppliers, purchasing firms, distributors, & logistics companies share information about orders, production, inventory levels, & delivery of products & services. The app use is the SAP.
Β· Customer relationship management systems
Customer relationship management is used by the customer service officer to help manage their relationships with their customers regarding 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. The apps use are Dynamic CRM, SAP CRM.
Β· Knowledge management systems
Knowledge management systems is a pool based knowledge system. It manages the collection of information from internal and external sources, classification of content using grouping, and expertise location. The app uses are MyBase, Google Drive, and etc.
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