IS Implementation in Business
In the last decade, we have seen a lot of changes that happen in business process. In the past, all of the business process has been done in traditional ways. But nowadays, a lot of company already leave the old ways and try to implement a new & modern ways in their business process. Company try to using technology to improve their productivity. By using technology, company can save times and make the business process more efficient. Technology also can minimize human errors when it comes to managing data. This is the reason why company should start to implement information systems in business.
- Definition & Background
Business process is a collection of related activities that produce a product or a service of value to the company, it’s business partners, and/or its customers. There are many process that occurs in business, for example, accounting business processes, finance business processes, marketing business processes, etc. Because there are a lot of process that occurs in business, it is important to have an integrated system between each department.
- Types of Business Process
BPI (Business Process Improvement) is an incremental approach to enhancing the efficiency and effectiveness of a process. The purpose is to improve productivity, workflow efficiency, and minimize threads. It has lower risk and takes less time than BPR.
BPR (Business Process Reengineering) is a radical redesign of an organization’s business process, and the goal is to improve the efficiency and effectiveness of these processes. The key is to examine business processes and then determine how they could best reconstruct those processes to improve their business functions. It is harder to implement and it’s also has higher risk and takes more time time than BPI.
BPM (Business Process Management) is a management technique that includes methods and tools to support the documentation, design, analysis, implementation, management, and optimization of business processes.
Nowadays, company use digital platform in their business processes. For example, the marketing department use the internet to advertise products/services in social media. But before the company advertise they products/services in the internet, they usually make an analysis of internet users behaviour, so the company can have the right target market for their advertisement. This analysis is related to information systems management. The set of data that has been stored in the internet can be transformed into an information that is useful for company to make the right decision.
That is for the information management, and for the information systems implementation in business process, company can use ERP (Enterprise Resource Planning). Enterprise Resource Planning (ERP) is an integrated systems that integrate the planning, management and use of all resources of the organization. Usually ERP is used by a big company that stored a lot of information. By using ERP, each department in company can access all the data easily without any boundary with the other department. It offers more flexibility between each department in the company. One of the most used ERP software in the world is SAP. One main limitation of ERP systems is it’s expensive cost, and it needs a lot of time to implement.
Besides ERP, company also can use CRM (Customer Relationship Management). Basically, it is an strategy focusing on the customer. It collects information about customer and use that information to increase customer satisfication and loyalty. So, the company can have a longer and more profitable relationship with the customer.
Technologies are very important nowadays, especially for the business. It can improve the efficiency of time and minimize human errors that often occurs in company. But technology implementation in business also has a high risk if the company didn’t analyze the technology itself before implementing it. The company must choose wisely whether they need to implement those technologies in their business process or not. Because in this case, one decision can make a big impact for the company, whether it is good or bad.