MIS SPPU Unit 4

1. MIS structure of digital firm
• Term E-business was coined to convey use of
internet and IT in key resource management
processes and to transact the business with
customers, suppliers business partners
• With advancement of internet, web
communication, network and information
technology , business process management
crossed the boundaries of the organization and
embraced every aspect of business making ,
making all its operations Digital

2. • All processes included in supply chain are digital
nature. It starts from taking order from customer,
scheduling the production, sourcing raw material,
dispatching goods and taking feedback from customer.
Thus it covers ERP, SCM, CRM
• The nature is real time actionable information or just in
time actionable information

3. ERP,SCM,CRM
Data warehousing andmining
Knowledge management
system
Executive Information
Dash
Board
Basic data and information capturing
and transaction processing system
MIS model of digital firm

4. ERP,SCM,CRM
Periodical reporting system
Exception reporting
system
Data warehousing and
mining
EIS
Basic data and information capturing
and transaction processing system
IS structure of conventional Design
of MIS

5. New organisational structure
• Traditional organization that has been developed
before the information technology era is characterized
by clear division of labor leading to inflexibility in terms
of responding to need for change and reorganization.
Organizations change continuously in the way they do
things or in products and services they offer.
• Conventional organization in the information age may
be less competitive than the new entrants to the
market in global economy because it may be slow to
respond to potentials for new markets, the need to
develop new products and services, reconfigure
business processes for better efficiency and more
effective customer management.

6. • Traditional organization has a rigid hierarchical
structure. Pyramid shape of the organization
demonstrates many levels of middle management.
In order to compete, many of these types of company
have had to downsize, reducing the number of
employees and the management layers.

7. • These changes have to be accompanied by other
developments such as a shift in working culture and enabling
the employees to take advantage of opportunities for
personal growth or to allow them to manage themselves.
This though has not always been the case.

8. • The hierarchical structure of the organization does not
disappear and it persists with the contemporary firm. In
digital firm, the level of hierarchy is greatly reduced leading to
flatter hierarchical organization. In designing a digital firm we
endeavor to optimize the level of hierarchy to achieve
balanced distribution of power among the various layers.

9. • Delegation of decision making and distribution
of power is extended to the lower layers of
the organization and lower level employees
are given greater powers to manage
themselves and more authority to make
decisions than in the past.

10. • A shift in culture takes place where employees are no longer required to
work specified hours. Employees become outcome driven and their
performance is measured against requirements and achievements as
oppose to presence. Employees are much more likely to work flexible
hours through the use of information technology. Working from home
becomes more fashionable through provision of information and opening
access to internal organisational infrastructure.

12. Benefits/differences over traditional/conventional
structure
• Flat structure
• Separation of work and workplace
• Paperless
• Low overheads due to lean organization
• Flexible /agile organization