Open System view of Business Enterprise System Informational and physical work systems

Open System view of Business Enterprise System Informational and physical work systems - Transcript

Open System view of Business Enterprise System Informational and physical work systems

Vijay V Mandke
Research Leader Center for Information Integrity Research Delhi Center B 64 Gulmohar Park New Delhi 110 049 Pune Center Flat A 2 Nikash Skies Someshwar Wadi Pashan Pune 4110 08 Visit us at centerforinformationintegrityresearch org

Information Integrity Integrity Information System Management Information System Course Lecture 18

2006 2007
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Lecture 18 Open System view of Business Enterprise System Informational and physical work systems

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OVERVIEW
Traditional Business Enterprise Systems representation of an automated production system producing standard product in high volumes Modeling a business process A controls interpretation Shift from Energy based to Data driven Technologies and its implications for business enterprises A systems representation of a generic business process modeled as integral to a closed loop information and control system Systems representation of computer integrated business enterprise activities showing interrelationship between informational and physical work systems
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Traditional Business Enterprise
Seeking to produce only standard product in high volumes
Characterized by control systems tuned to fixed data information decisions Strategic advantage sought by emphasizing business objectives of operational optimization and cost efficiency Carries computerized information systems IS developed in isolation e g even if decision in product mix would certainly affect inventory investment the production control application and inventory control application did not communicate with each other the management emphasis being on integration minimization Requirement of business therefore in terms of automation of functions of hard components i e of mechanical or physical work wherein physical variables or rather material is transformed or processed or converted so as to add value to the product produced In other words there is no effort to optimize data or information for improved decision making
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Production Inputs programming

Production Equipments Processes automation

OutputStandard product in high volumes

Customer

Control Implementation optimization

Physical Work System

Performance Objectives Operational optimization Cost efficiency

Fixed Information Decision

Figure Systems representation of an automated production system producing standard product in high volumes
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Fixed Information Decision for control implementation

Third Level Process Control

Allocation of Machine Assignment problem Computerized IS

Allocation of HR Assignment problem Computerized IS

Inventory Control System Computerized IS

Second Level Process Control

Accounting Computerized IS

Monitoring of work in progress Time Motion Study

Quality Control Systems

First Level Control Data embedded controls
Controllers Pressure Flow Level Temperature Position Velocity Voltage Current System performance indicators

Plant Operations Data embedded automation
Material input Product output

Customer

Fig Modeling a business process A controls interpretation 1
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Fixed Information Decision for control implementation

Fifth Level Process Control

Production Control System Scheduling Control PERT CPM Techniques

Forth Level Process Control

Market Prediction Forecasting

Product Development R D

Investment Financial Mgt Risk Analysis Methods

Personnel Relations Manpower Database

CRM

Third Level Process Control

Allocation of Machine Assignment problem Computerized IS

Allocation of HR Assignment problem Computerized IS

Inventory Control System Computerized IS

Second Level Process Control

Accounting Computerized IS

Monitoring of work in progress Time Motion Study

Quality Control Systems

First Level Control Data embedded controls
Controllers Pressure Flow Level Temperature Position Velocity Voltage Current System performance indicators

Target Standard

Fig Modeling a business processA controls interpretation 2

Plant Operations Data embedded automation
Material input Product output

Customer

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Shift from Energy based to Data driven Technologies and its implications for business enterprises 1
However

with the reality of Net and of the flow of digital data throughout an enterprise and with pressures of achieving business objectives of effectiveness and efficiency the business enterprise has a further requirement for utilizing data information decisions smarter calls for automation of informational work carried out by the soft components of the enterprise so as to deliver information decision in the form of information to add value to the product As seen this is a networked computerized information system
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This

Business Process Parametric noise

Environmental

p as a result of Socio technical character Loosely coupled components and
elements

Services Products
Customer

input noise i Optimum Input

Business Activity Process Service Administration

Measurement

Control Information processing for flexible information decision

noise mn

Business System Objective

Customized Business Decision for Control implementation

Raw Data information in complex and changing environment characterized by uncertainty and hence errors

Uncertainty in information environment characterized by dynamism time pressure complexity uent uncertainty and risk

Figure A systems representation of a generic business process modeled as integral to a closed loop information and control system
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Shift from Energy based to Data driven Technologies and its implications for business enterprises 2
This is an application of flexible automation accounting for product innovation customer needs product requirements and constraints of costs and capabilities a structural variant from inflexible automation of 1950s Specifically the flexible automation is becoming possible due to a availability of online computers b computers providing capability for moment by moment optimization of processes and decision making and c availability of system integration capability so as to yield a computer integrated system for attaining business objectives Figure 1 What makes it possible now to put it all together in a total production and delivery system is technological reality of digital data as medium of information flow across the enterprise Further most importantly such systems can be applied to both hard components of production like processes machinery and equipment and soft components like information flow and data bases the informational work systems
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Production Inputs programming

Production Equipment Processes automation

Delivery Processes programming

Customer

Product innovation

Design automation

Planning Decision Making programming

Flexible Inform ation Decision

Control implementation optimization

Performance objectives Operational efficiency Cost efficiency Physical Work System

Cost Capabilities Need Product Requirements

Figure Systems representation of computer integrated business enterprise activities showing interrelationship between informational and physical work systems CIIR II IIS MISCOURSE2006 07

Informational Work System Business objectives of Effectiveness Efficiency Mass customization Agility focused on customer responsiveness IT driven market differentiation Supply chain synchronization for integration maximization Financial optimization 11

SUMMARY 1
Traditional business models seeking to produce standard product in high volumes emphasize physical work systems They have control systems tuned to fixed data information decisions to ensure business objectives of operational optimization and cost efficiency so as to achieve competitive advantage However with the technological shift in the form of the reality of the Net and the flow of digital data information throughout the enterprise the customer external as well as internal requirements are becoming increasingly instant and local
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SUMMARY 2
This calls for automation of informational work carried out by the soft components of the enterprise so as to deliver flexible information decision for control implementation and to add value to the product Delivering the flexible information decision i e flexible information is the act process of information origination For competitive advantage this is requiring to pass on the control baton to controlling Information Integrity of the information origination process and the flexible information there from in the presence uncertainty
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EXERCISES 1
E15 1 Successes in production automation precipitated various structured and periodic information processing control responses for standard product in high volume business models implemented in international market place Briefly explain E15 2 With innovations in IT the volume and speed of information processing and decision making undergoing sharp increases business enterprises for their competitive survival are looking for bigger business opportunities through delivering of products systems and services designed for localized internationalism of market place Briefly explain

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EXERCISES 2
15 3 In traditional business model why is there no requirement to optimize data or information for improved decision making E15 4 Develop a systems view of the physical work system under the business model E15 5 Develop a process controls interpretation of the traditional business process model
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EXERCISES 3
E15 6 Develop a systems representation of a generic business process modeled as integral to a closed loop information and control system E15 7 What do you understand by the term requirement to treat information decisions smarter E15 8 What is informational work system Why was it not possible to automate it earlier What makes it possible now
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EXERCISES 4
E15 9 What is a soft component of the system Hint Informational view makes a component soft E15 10 Compare performance objectives of physical work system PWS and informational work system IWS E15 11 Develop a systems representation of computer integrated business enterprise activities showing interrelationship between IWS and PWS
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THANK YOU

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