CH02 Efficient Business Operation Through IS (LMS) PDF

DSC4023 Information Technology in Business Chapter 2 Efficient Business Operation Through Information Systems Outline 2.1 Role of Information Systems in business efficiency 2.2 Information Systems in decision-making 2.3 Information Systems in marketing and business growth 2.4 Information Syste...

DSC4023 Information Technology in Business Chapter 2 Efficient Business Operation Through Information Systems Outline 2.1 Role of Information Systems in business efficiency 2.2 Information Systems in decision-making 2.3 Information Systems in marketing and business growth 2.4 Information Systems in customer support and satisfaction 2.5 Information Systems in resource management and optimization 2.6 Globalization and remote work enablement  Efficient Business Operation Through Information Systems Definition Efficient business operation through Information Systems refers to leveraging digital tools and software solutions to streamline, optimize and enhance various business processes. Information systems integrate technology into everyday operations, enabling businesses to function more effectively and reduce inefficiencies Role of Information Systems in Business Efficiency Automating routine tasks Information systems streamline and automate repetitive tasks like data entry, payroll processing and reporting. It minimizes errors, allowing employees to focus on higher- value work and strategic initiatives Enhance data management and analysis Centralized data storage and powerful analysis tools enable businesses to quickly access and interpret data, identifying trends and make data-driven decisions. This improves decision-making accuracy and allows for optimized operations and cost savings Role of Information Systems in Business Efficiency (cont.) Streamlining supply chain management Real-time tracking and inventory management through information systems improve supply chain efficiency. By enabling quick response to demand changes and optimizing inventory levels, businesses can reduce costs and better meet customer demands Improving Customer Relationship Management (CRM) CRM systems enhance interactions with customers by managing communication, personalizing marketing and providing valuable insights into customer needs. This leads to improved customer satisfaction, increased sales and stronger customer loyalty Information Systems in Decision-Making What is Decision-Making? Decision-making is the process of selecting a choice among multiple options or actions based on specific criteria or preferences. It involves evaluating information, weighing possible outcomes, and choosing a course of action to achieve a desired goal. This process can vary in complexity from simple, quick choices to more complex, strategic decisions. Information systems play a pivotal role in decision-making, providing business leaders with critical insights and tools that enable them to make informed, strategic and timely decisions.  Information Systems in Decision-Making Types of decision Strategic decisions Tactical decisions o Mid-level and support strategic o High-level, long-term decisions objectives by efficiently that set the overall direction of managing resources and an organization or project achieving short-term goals o Typically made by top o Often made by middle executives or leaders to shape management to deal with the mission, vision and long- resource allocation, project term goals planning and specific initiatives  Information Systems in Decision-Making Types of decision Operational decisions Non-programmed decisions o Day-to-day, routine decisions o Unique and unstructured, focused on executing and usually made in response to supporting tactical and new or unexpected situations strategic goals that lack a predefined solution o Typically made by lower-level o Require critical thinking, managers or frontline judgment and often creativity, employees, operational as these decisions address decisions are essential for daily complex or one-off challenges business functions  Simulation and scenario planning Access to real-time data 4 ways Information Systems enhance decision-making: Support for predictive analysis Enhance data analysis and business intelligence  Information Systems in Decision-Making Examples Customer Relationship Management (CRM) Systems Compile customer data from various interactions, enabling companies to make customer-centric decisions. Enterprise Resource Planning (ERP) Systems Integrate core business processes, from inventory to finance, providing a comprehensive view of operations. Managers use ERP data to make decisions related to resource allocation, supply chain management and production scheduling, improving overall efficiency and productivity  Information Systems in Decision-Making Examples Financial Information Systems Collect and analyze financial data to assist with budgeting, forecasting and financial planning. They provide insights into cash flow, profitability and financial performance, supporting decisions that align with the company’s financial goals. Supply Chain Management (SCM) Systems Optimize logistics and inventory, helping businesses make decisions about procurement, warehousing and distribution. This improve inventory turnover, reduces costs and enhances customer satisfaction by ensuring timely product delivery Information Systems in Marketing and Business Growth Information systems play a foundational role in modern marketing and business growth by providing tools that streamline operations, enhance customer engagement, and allow for data-driven decision-making. From CRM systems that personalize marketing efforts to BI tools that offer market insights, these systems empower businesses to compete effectively, reach more customers, and grow sustainably. With advancements in data analytics, automation, and digital platforms, information systems will continue to be pivotal in shaping the future of marketing and business expansion.  Customer Relationship Social media and Management (CRM) digital marketing Systems platform 4 ways Information Systems used in marketing and business growth: Data Analytics and Business Marketing Automation Intelligence tools Systems Information Systems in Marketing and Business Growth Pros and Cons Pros Cons IS provides real-time insights, IS can be costly to set up and enabling smarter, data-based maintain, especially for small decisions businesses IS enables personalized marketing, Integrating various IS can be leading to more satisfied, loyal complicated and may disrupt customers workflows Automation saves time, allowing Using IS raises risks of data teams to focus on creative work breaches, requiring strong security protocols IS enables growth without a large Heavy dependence on IS can limit increase in costs creativity and reduce personal connections with customers Information Systems in Customer Support and Satisfaction Information Systems in Customer Support and Satisfaction refers to the use of technology and data management tools to enhance the way businesses interact with, support and satisfy their customers. Through features like multi-channel support, real-time data analytics, customer feedback collection, and self-service portals, information systems allow companies to be more responsive and proactive in meeting customer needs.  Information Systems in Customer Support and Satisfaction Improved Communication Channels Multi channel support 24/7 availability with Unified customer chatbots interaction history IS enables businesses to Many companies use IS tools centralize offer support through AI-powered chatbots customer various channels (email, for instant support, communication history, live chat, phone, answering common so support teams can socmed) allowing questions and resolving quickly access past customers to reach out issues at any time interactions, ensuring in ways that are most customers do not have convenient for them to repeat themselves  Information Systems in Customer Support and Satisfaction Personalized and Proactive Support Customer data Proactive notifications Predictive insights integration and alerts IS such as CRM IS enables businesses to By analyzing customer platforms store detailed proactively inform data, IS can predict customer profiles, customers about order common issues or purchase history and status updates, service needs, allowing preferences, enabling interruptions or companies to reach out support teams to subscriptions renewals, proactively with provide personalized enhancing customer solutions, assistance satisfaction by keeping recommendations or them informed preventive advice  Information Systems in Customer Support and Satisfaction Efficient Issue Resolution and Follow Up Automated ticketing Knowledge base and Feedback collection and workflow systems self-service portals and continuous improvement IS automates support Many IS platforms offer ticket generation, self-service options like IS tools make it easy to prioritization and FAQs and knowledge collect and analyze assignment, reducing bases that empower customer feedback response times and customers to solve after interactions, ensuring that inquiries issues independently, helping companies are handled efficiently leading to faster improve their support by the right team resolution and processes and address members increased satisfaction recurring issues Information Systems in Resource Management and Optimization Information Systems in Resource Management and Optimization refers to the use of technology and data driven systems to efficiently manage and allocate a company’s resources, such as personnel, equipment, inventory and finances. By integrating and analyzing data from various departments, these systems help organizations optimize the use of their resources, ensuring they are used in the most cost-effective and productive way. Information Systems in Resource Management and Optimization Key Types of IS in Resource Management Enterprise Resource Planning (ERP) Integrate core business functions such as finance, HR, supply chain and operations into a single system, allowing businesses to manage resources more effectively Supply Chain Management (SCM) Help businesses optimize the flow of materials, goods and information from suppliers to customers, ensuring that the right resources are available at the right time and at the right place Human Resource Management Systems (HRMS) Help businesses optimize the management of their human resources, including recruitment, training, performance management and payroll Information Systems in Resource Management and Optimization Improve Streamlined efficiency operations Benefits Cost Streamlined reduction operations Better decision- making Globalization and Remote Work Enablement Globalization in Business refers to the Key aspects: process by which businesses expand their operations, markets and influence  International trade and beyond their national borders to investment operate in multiple countries.  Global supply chains It involves the integration of markets, supply chains and industries, driven by  Access to global advancements in technology, workforce communication and international trade.  Cultural exchange  Globalization and Remote Work Enablement Impact of Globalization on Business Market expansion Outsourcing and offshoring Businesses can now reach Companies can now outsource of customers worldwide, resulting in offshore business processes to larger markets and more diverse countries where labor and customer base production costs are lower Competition Supply Chain Management Globalization increases Global supply chains have competition as businesses face become more complex, as not just local but international businesses source materials and players products from different parts of the world Globalization and Remote Work Enablement Introduction to Remote Work Enablement Technological enablers:  Cloud computing Remote work refers to employees working from locations outside the  Communication tools traditional office environment, often from home or other flexible locations  Project management tools  Cybersecurity solutions Globalization and Remote Work Enablement The Role of Globalization in Remote Work Enablement Global talent pool Globalization allows companies to tap into a wider talent pool, hiring employees from different parts of the world without the need to relocate them Time zone flexibility With teams across different time zones, remote work can enable continuous productivity (following a “follow-the-sun” model), where work progresses around the clock Cost efficiency Companies can save on office space, utilities and overhead costs by hiring remote workers and allowing employees to work from anywhere  Globalization and Remote Work Enablement Benefits of Remote Work in the Globalized Economy Increased productivity Work-life balance Many employees report higher Remote work allows employees to productivity when working better balance personal and remotely due to fewer distractions, professional responsibilities, flexible working hours and better leading to greater job satisfaction work-life balance and retention Reduced overhead costs Access to diverse talent Companies can save on office With remote work, companies are rent, utilities and other physical no longer limited to local talent infrastructure expenses pools, and they can hire the best candidates from anywhere in the world  Globalization and Remote Work Enablement Challenges of Globalization and Remote Work Cultural differences Data security and privacy Remote teams from different parts Protecting company data and of the world may face challenges ensuring privacy become more related to language barriers, challenging, requiring robust cultural misunderstandings, and cybersecurity measures different work styles Communication & Management and collaboration accountability Remote work can sometimes lead Managers may find it harder to to feelings of isolation, monitor employee performance miscommunication, or difficulty or maintain team engagement coordinating work across time when team members work zones remotely Summary Information Systems (IS) are vital for enhancing business efficiency, decision- making, customer satisfaction, and marketing. Tools like ERP, CRM, and BI streamline operations, optimize resources, and enable data-driven strategies. In marketing, IS supports targeted campaigns and performance tracking, while in customer support, it enhances response times and personalization. For global expansion and remote work, IS facilitates communication, secures data, and ensures team collaboration. By leveraging IS effectively, businesses can optimize processes, meet customer demands, and achieve sustainable growth in a competitive, globalized market. DSC4023 Information Technology in Business Chapter 2 Efficient Business Operation Through Information Systems