Information Systems Application

Management Information System (MIS)

• A Management Information System(MIS) is an Information system used for decision-making , and for the coordination ,
control , analysis , and visualization of information in an organization. The study of the management information
systems involves people processes and technology in an organizational context.
Applications of MIS
1. Enterprise Resources Planning (ERP)
• Large companies often use ERP management information systems. However, this system can also be used on a small
scale. ERP is generally used in management and in integrated monitoring between business units.
2. Supply Chain Management (SCM)
• This system is beneficial for management because it can help to integrate material supply management from suppliers ,
mufacturers, retailers to final consumers.
3. Transaction Processing System (TPS)
• TPS is a Management Information valuable system for processing large amounts of data or multiple and routine
transactions.
• This program is widely used in payroll and inventory management.
4. Office Automation System (OAS)
• This application helps facilitate communication between departments within a company by integrating computer
servers for each company user.
• For Example , the use of email for various activities in the office every day.
5. Knowledge Work System (KWS)
• This system integrates new knowledge into an entity or organization/unit.
6. Informatic Management System (IMS)
• IMS helps support various tasks within the organization and analyses decision- making . This system can also
integrate various information functions with computer programs such as electronic shopping.
7. Decision Support System(DSS)
• This system helps executives make decisions by observing the business environment an example of this single
management information system is links electronic.
8. Expert System (ES) and Artificial Intelligent (AI)
• Both System use artificial Intelligence , which helps analyze a problem using expert energy knowledge.
9. Group Decision Support System (GDSS)
• If the Previous system was to analyze problems , this system is to find solutions to a problem through gathering
knowledge in a group , not per individual . Usually in the form of questionnaires , consultations and scenarios.
10. Computer-Support Collaborative Work System ( CSCWS)
• This system is a group of users who design a system to help work as a group and understand the impact of
technology on their work patterns.
11. Executive Support System(ESS)
• This System helps managers to interact with the corporate environment through graphics and other
communication tools.
.

Decision Support system components

A Decision Support System (DSS) typically comprises a database, a software system, and a user interface. These
components work together to provide decision-makers with the tools and information they need to make
informed choices.

Database:
• A DSS relies on a robust database to store and manage relevant information.
• This database should be able to store data from various sources, both internal and external.
• Data quality is crucial, ensuring accuracy, completeness, and timeliness.
Software System:
•The software system is the engine that powers the DSS, providing the tools for analysis and decision-making.
•This includes modeling capabilities, data analysis tools, and reporting features.
•It should be user-friendly and adaptable to changing needs.
User Interface:
•The user interface is the bridge between the user and the DSS, allowing them to interact with the system.
•It should be intuitive and easy to navigate, enabling users to access the information and tools they need
efficiently.
•A well-designed interface is crucial for user satisfaction and effective decision-making.
Development of DSS and Desirable Characteristics of DSS
1. DSS should aid the decision maker in decision-making.
2. DSS should able to address semi/unstructured decision-making situations.
3. DSS should support decision makers particularly at tactical/strategic levels.
4. DSS should be able to create general purpose models, simulation capabilities and other analytical tools
available to a decision maker.
5. DSS should enable users to use DSS without assistance from MIS professionals.
6. DSS should provide mechanism to enable rapid response to a decision maker’s request for information.
7. DSS should be readily adapted to meet information requirement for any decision environment.
8. DSS should have capability to interface with the corporate database.
9. DSS should be flexible to accommodate variety of management styles.
10. DSS should facilitate communication between/among various levels of decision making.
11. DSS should have in-built flexibility and ability to evolve as user sophistication grows.
12. Iterative methods are better advised.
DSS Approach
1. Raw data and status access
2. General analysis capabilities
3. Representation mode ( Financial Statements / casual models i.e. Forecasting , diagnosis)
4. Solutions suggestions , evaluation
5. Solution Selection
DSS Core Capability
6. Representations : Conceptualization of information used in making decisions such as graphs ,charts , lists , reports and
symbols
7. Operations : Logical and Mathematical manipulations of data such as assigning risks and values, simulating alternatives
etc.
8. Memory Aids : Databases, views of data , work spaces , libraries and other capabilities to refresh/ update memory.
9. Control Aids : Capabilities which allows users to control the DSS activities like software permitting user-control of
memory representations, operations, training , tutorials, menus, function keys , help commands etc.
Application of DSS
In an organization, DSS can provide information on comparative sales figures, projected revenue figures,
etc. DSS can be used in various sectors to facilitate efficient decision-making. The following are the
applications of DSS in different sectors:
• Medical: In the medical sector, clinical DSS are used for medical diagnosis.
• Banks: In banks, DSS helps loan officers to verify the credit of a loan applicant.
• Business and management: DSS enables managers to make optimal allocations of resources and make
quick decisions related to various business decisions.
• Agriculture: One major application of DSS is in agriculture production and marketing for sustainable
development.
• Railways: DSS provides information on worn-out or defective rails and requirements for equipment
testing.
Benefits of DSS
Apart from this, the following are some benefits of DSS:
• Facilitates quick decision-making; thereby increasing organizational efficiency.
• Increases organizational control and improves interpersonal communication
• Promotes learning by speeding up problem-solving in the organization.
• Automates managerial processes and enables the organization to achieve a competitive advantage.
Factors in DSS’s Success and failure
1. User training/Involvement
2. User Experience
3. Top Management Support
4. Orientation towards Top Management
5. Length of use
6. Novelty of Application
7. Return On Investment
The Structure Of Decision Support Systems
8. The Database and Its Management
9. The Model Base and its Management
10. The Hardware
11. The User System Interface
Fundamental DSS Programme Structure
• User interface with the Dialogue Management components , which is a set of programmes that manages the user
interface and translates the user’s requests into commands for the two components.
• The model management components maintains and executes models of business activity.
•
• It is used to create , store and modify model and to cause them to be involved.
• The data management components maintains DSS Data . Its task includes managing the DSS database, which
contains both intermediary and final results of DSS studies and managing interface to enterprise data , which is
external to the DSS and Data form external sources.
Model
Base

Model
Management

DSS Database
Dialogue
User Management
Enterprise Data
Data
Management
External Data
Source
Components Of DSS Programmes
1. Dialogue Management :
• It has three sub-systems. The user interface sub-system manages the physical user interface.it controls the
appearance of the screen , accepts input from the user and displays the results. It also checks the user
commands for correct syntax. The dialogue control sub-system maintains a processing context with the user.
• The request translator translates the user command into actions for the model management or data
management or data management components into a format and vocabulary understandable by the user.
• Since flexibility and user-friendliness are important in DSS . GUIs are becoming the standard for DSS applications
. Database is normally through SQL.
2. Model Management :
• The command processor receives the commands from the dialogue management components and delivers
those commands from the dialogue management components to either the model base management system or
the model execution system.
3. Database Management :
• Two functions of database management are, first , it stores and manipulates the database as directed by either
the model management component or the dialogue management component. Secondly , it maintains an
interface with data sources that are external to the DSS i.e , TSP database, inter-enterprise systems ,external
data utilities and other DSS applications.
MIS-Decision Support System: Comparison
MIS DSS

The focus is on Structured tasks and routine decisions. Focus is on semi /Unstructured tasks, which require
managerial judgement.
Identifies Information requirement. Establishes tools to be used for decision process.

Emphasis is on data storage. Emphasis is on data manipulation

Delivers systems based on frozen requirement. Follows iterative process hence current data can be used.

Provides only indirect access to data by managers. Managers have direct access to data.

Reliance on computer expert. Reliance on managerial Judgement.

Access to data possibly requiring a wait for manager’s turn. Direct access to computer and data, hence no waiting.

MIS manager may not completely understand the nature of Manager knows the nature of decision and decision-making
decision. environment.
Emphasis is on efficiency. Emphasis is on Effectiveness.
Group Decision Support Systems (GDSS)
• In an organization, many decisions require the collaboration and participation of multiple
employees. Take an example of a consumer durable product manufacturing company, which is
losing its market share to its competitors. The company needs to take a decision on whether to
keep selling its existing range of products or focus only on its best-selling products or add new
products. Making such decisions often require input from different departments within the
organization.
• For this, individuals from different departments need to collaborate, share information and discuss
decisions that need to be made. In such cases, meeting face-to-face is not always possible or
practical. To deal with such situations, technologies can be used that may help in sharing the
same information with everyone in the group so that they can reach to a better decision. Here
comes the role of the Group Decision Support System (GDSS), which supports groups in decision-
making by combining DSS and groupware technologies.
• Group Decision Support System (GDSS) can be defined as an information system that is designed
to support decisions made by groups in an organization. The main aim of GDSS is to facilitate
group communication and foster learning. A GDSS is helpful in situations involving meeting
scheduling and documentation; brainstorming; group discussions; visioning; planning; team
building; etc. Moreover, it enables users or group members to solve complex problems, formulate
detailed plans and proposals, manage conflicts, and effectively prioritize activities.
• GDSS helps group members not only make better decisions but also improve tasks in an improved
manner. Take the example of Groupware, a software, used to support groups in coordinating and
keeping track of ongoing projects and tasks. Groupware extends collaboration in a group and
assists the group members in completing tasks. GDSS is designed in such a way that they take
input from multiple users interacting concurrently with the systems to decide as a group.
Components of Group Decision Support System (GDSS)
GDSS performs operations through its various components.
Let us discuss these components in detail.
Hardware: It involves physical devices of a computer system, such as monitors, servers, electronic display boards,
keyboards, and audio-visual equipment. It also includes a conference facility for group discussion and teamwork.
Software: It includes several tools and techniques to operate GDSS. These tools are electronic questionnaires,
brainstorming tools, idea organizers, etc. The application of these tools helps in planning, organizing ideas, collecting
information, defining priorities, documenting meeting proceedings, taking decisions, and so on.
People: It involves group members, a trained facilitator who helps in the proceedings of meetings, and an expert staff to
operate and control hardware and software.
Model of Group Decision Support System (GDSS)
As mentioned earlier, GDSS supports groups in an organization in taking complex business decisions. The GDSS model
enables groups in planning, generating, organising, and assessing ideas for problem solving.
Let us discuss the functioning of GDSS.
•Electronic questionnaire: It is used by group members for planning meetings, and determining crucial issues and related
information for decision-making. By using electronic questionnaires, groups can acquire the required information for finding
optimal solutions and making effective decisions.
•Electronic brainstorming tools: Group members use these tools for providing suggestions, which help the management in
• Idea organizers: In meetings, individuals offer various ideas for problem-solving. Idea organizers
help in classifying idea providers so that it can be easier to consult the concerned personnel for
further clarifications.
• Prioritization tools: These tools are used for prioritizing ideas provided by group members during
brainstorming. For setting priorities, various methods are used, such as voting and ranking.
• Stakeholders’ identification and analysis tools: These tools are used to understand the impact
of emerging ideas on the functioning of an organization.
• Policy creation tools: These tools provide a platform to arrive at an agreement on the basis of the
policy statement established by the organization.
• Group dictionaries: These are used for recording all important terms associated with the proposed
project for future reference.
Advantages of Group Decision Support System (GDSS)
As discussed earlier, GDSS supports decisions by members of a group in an organization. The following
are the advantages of GDSS:
• GDSS helps managers to take better decisions even after a large organizational hierarchy.
• It facilitates group communication and eliminates the influence of a single decision-maker.
• GDSS provides a facility for videoconferencing, which enables members to hold meetings at a
common place from different geographical locations.
• It is user-friendly and can be accessed by people from a non-technical background.
Limitations of Group Decision Support System (GDSS)
Besides having various advantages, the system also has certain disadvantages:
• The implementation of GDSS requires huge costs, time, and effort.
• The chances of misuse or leakage of information are quite high as there are multiple users of GDSS.
• The risk of technical faults always remains there.
• GDSS is not helpful in situations that require one-to-many communication; for instance, a leader taking lectures in a group.
GDSS Features
• The GDSS is a group decision-facilitator and extension/expansion of DSS , most of the features/characteristic of the GDSS
are similar to that of the DSS.
In addition , GDSS must provide for :
• Anonymous inputs without identifying the source of inputs to enable group decision makers to concentrate on the merits
of the input without considering who gave it.
• Parallel communication(s) to enable every group member to address issues or make comments/suggestions
simultaneously.
• Automated record keeping by anonymously recording each comment that is entered into the PC by the group member , for
future review and analysis.
Factors In GDSS Success
The success of GDSS would depend upon the quality of the meetings/discussions/interface being “ productive” ensuring
more effective and efficient use of time and ability of the group-members to produce the desired results in fewer meeting/
interfaces.
This , in turn , would depend upon the following elements.
1. Improvement pre-planning.
2. Increased participation.
3. Open ,collaborative meeting (s) atmosphere.
4. Criticism free idea generation.
5. Idea , Organization and evaluation.
6. Setting priorities and making decisions accordingly.
7. Documentation/Record-keeping of meetings.
8. Access to external information , if and when required.
9. Preservation of organization memory.
GDSS Configuration

Model
Database Base

GDSS GDSS
Processor Software

Access to Intra/
Internet, network External
and computer External
Database
system Database
Access
Dialogue
Manager

User
Knowledge Management System
• In MIS , we start with data, move over to information, further to knowledge, Expertise, Insight , foresight and
finally, to wisdom.
• As MIS evolved, knowledge emerged as major intangible corporate asset. It was realized that some firms
perform better than others as they have better knowledge about how to create, produce, and deliver products
and services. This knowledge is peculiar/specific and unique to the firm and is difficult to imitate and can be
leveraged into strategic benefit over the long run.
• Knowledge Management Systems supported processes for creating as also acquiring storing, distributing and
applying knowledge. The KMS enabled organizations to better manage processes for capturing and applying
knowledge and expertise.
• The knowledge Management Systems are categorized into three broad categories:
1. Enterprise-wide Knowledge Management Systems (EKMS)
• The EKMS are general purpose firm-wide efforts to collect, store , disseminate and use digital content and
knowledge . these systems include capabilities for searching for information, storing both structured and
unstructured data , and locating employee expertise within the firm.
2. Knowledge Works System (KWS)
• The KWS are specialized workstations and systems that enables scientists , engineers and other knowedge
workers to create and discover new knowledge.
• Major knowledge work applications are CAD systems , Virtual Reality Systems for simulation and modelling and
financial workstations.
3. Intelligent Systems
• The Intelligent Techniques are tools for discovering pattern and applying knowledge to discrete decision and
knowledge domains.
• These techniques like Data Mining, Artificial Intelligence, Database Technology, Fuzzy Logic . Case-based
reasoning are used for capturing tacit knowledge and play an important role in contemporary knowledge
management.
• This leads to , and helps in , capturing tacit knowledge in a very specific and limited domain of human expertise
resulting in knowledge-Based Expert Systems (KBES)
Expert System
An expert system is a computer program that uses artificial intelligence (AI) to simulate the judgment and
behavior of a human expert in a specific field, aiming to solve complex problems and provide expert-level
recommendations.
• Expert systems are designed to mimic human expertise, offering solutions and insights in areas where human
experts are needed.
• They rely on a knowledge base containing facts, rules, and heuristics (rules of thumb) learned from human
experts.
• An inference engine uses the knowledge base to draw conclusions and make decisions based on the input
data.
• “ An Expert System is a computer programme that represents and reasons with knowledge of some specialist
subject with a view to solving problem or giving advice”.
Components of Expert System
Types of Expert Systems
• Rule-based: Use a set of rules to make decisions.
• Frame-based: Represent knowledge using frames, which are structured data representations.
• Fuzzy: Deal with uncertainty and vagueness in knowledge.
• Neural: Use artificial neural networks to learn and make decisions.
• Neuro-fuzzy: Combine fuzzy logic and neural networks.
Capability
• Capturing of expertise.
• Codifying the expertise.
• Duplicating and transferring the expertise.
• Saving the human expert’s time.
• Saving on maintenance and updating of the knowledge base.
Characteristics
• Ability to explain their reasoning or suggested decisions.
• Ability to display “ Intelligent behavior”.
• Ability to draw conclusions from complex relationships.
• Ability to provide ‘ portable knowledge’.
• Ability to deal with certainty.
• Not widely used or tested , due to difficulty of use.
• Limited to relatively narrow problems.
• Inability to deal with mixed knowledge.
• Inability to refine own knowledge base.
• Difficult to maintain.
Applications of Expert Systems
1. Medical Diagnosis: Expert systems assist doctors by analyzing symptoms and medical history to suggest possible
diagnoses or treatment options. For example, MYCIN, an early expert system, helped identify bacterial infections and
recommend antibiotics.
2. Financial Services: In finance, expert systems are used for credit scoring, fraud detection, and investment advice. They
analyze financial data and patterns to make informed decisions.
3. Technical Support: Expert systems can troubleshoot and provide solutions for technical issues. They guide users
through problem-solving steps based on pre-defined rules and knowledge.
4. Manufacturing: In manufacturing, expert systems help optimize production processes, perform quality control, and
manage inventory by analyzing data and making recommendations.
5.Customer Service: Systems can answer customer questions and troubleshoot problems.
6. Aerospace Technology (NASA)
7. Airline/Civil Aviation.
8.Food Industry.
9.Tax Planning.
10. Foreign Exchange Management.
11. Quality control and monitoring.
Benefits of Expert Systems
1. Consistency: Expert systems provide consistent and reliable recommendations, reducing the variability that can
occur with human decision-making.
2. Availability: They are available 24/7 and can handle multiple queries simultaneously, providing timely assistance
and support.
3. Cost-Effectiveness: By automating expert-level decision-making, organizations can save on the costs associated
with hiring and training human experts.
4. Knowledge Preservation: Expert systems preserve valuable knowledge and expertise, making it accessible even
if the original experts are no longer available.
5. Accessibility: They make expert knowledge accessible to a wider audience.
Limitations of Expert Systems
6. Knowledge Limitation: The effectiveness of an expert system depends on the completeness and accuracy of the
knowledge base. If the knowledge is outdated or incomplete, the system’s performance may be compromised.
2. Lack of Flexibility: Expert systems are limited to the rules and knowledge they are programmed with. They may
struggle with novel or ambiguous situations that fall outside their predefined rules.
3. Maintenance: Regular updates and maintenance are required to keep the knowledge base current and relevant,
which can be resource-intensive.
Why Are Expert Systems Important?
Expert systems are a game-changer in AI because they:
1.Preserving Expertise: They capture the knowledge of human experts and store it in a digital format.
This ensures that valuable expertise isn’t lost when an expert retires or leaves.
2.Improving Decision-Making: By relying on data and rules, expert systems provide consistent and
unbiased recommendations.
3.Saving Time and Money: They automate tasks that would otherwise require human intervention,
reducing costs and increasing efficiency.
4.Accessibility: Expert systems make expert-level knowledge available to non-experts, democratizing
access to specialized information.
• For instance, in the 1970s, the MYCIN system was developed to diagnose bacterial infections. While it
was never used in real hospitals, it demonstrated how expert systems could assist doctors in making
accurate diagnoses.
Enterprise Model System And E-Business
Enterprise Systems
• Enterprise systems are firm-wide information system that serve as a common, integrated information
infrastructure for basic business processes. Enterprise systems encompass the entire firm’s major transcation
processing systems within an integrated database.
• These systems provide a consistent , readily accessible repository of information used in business processes
such as purchasing , inventory control , manufacturing , sales , delivery , billing accounts receivables and
personnel.
• ERP takes part of its name from MRP , but changes “ Materials” to “Enterprise “. As such ERP Systems
encompass and support various business processes , which include, among others:
Manufacturing & Production Processes :
• Procurement Inventory Management , Purchasing , Shipping ,Production Planning/Scheduling , Material
Requirement Planning, Quality Control/Management , Distribution , Transportation Execution , Plant &
Equipment Maintenance , etc.
Financials :
• General Ledger , Accounts Receivables , Accounts Payables , Fixed Assets , Cash Management/ Forecasting , Cost
Accounting , Asset Accounting , Taxation , Profitability Analysis , etc.
Sales & Marketing
• Order management , Quotations , Contracts , product Configuration , Sales Planning/ Management , Pricing ,
Human Resources :
• Personnel Administration , Employee Timing Accounting (Time Office) , Payroll , Manpower Planning , Training &
Development , Compensation & Benefits Accounting, performance Management, Travel Expenses ,etc.
• Enterprise systems are challenging as they involve enormous efforts to define requirements , configure or
modify software & implement in the organization.
Business value of enterprise systems
• Enterprise systems provide value both by increasing operational efficiency and by providing firm-wide
information to help managers make better decisions.
• It also enables large multi-national , multi-locational companies having many operating units make use of
Enterprise Systems to enforce standard practices and date so that everyone does business the same way
worldwide.
• Enterprise systems help firms respond rapidly to consumer requests for information or products.
• As the system integrates order , manufacturing , and delivery data , manufacturing is better informed about
producing only what customers have ordered , procuring exactly the right amount of components or raw
materials to fill actual orders , staging production , and minimizing the time that components or finished
products are in inventory.
• Enterprise systems provide much valuable information for improving management decision-making.
What is E-Business
• The term E-Business was introduced by IBM, back in 1997 , and implied “ redesigning strategic business
processes and meeting the challenges of a new market increasingly characterized by globalization , and based
on new knowledge”.
• E-business encompasses all form of using digital information and communication technologies to support and
optimize business processes.
• E-business is the practice of performing and coordinating critical business processes such as designing products,
obtaining supplies , manufacturing , selling , fulfilling orders and providing services through extensive use of
computer and communication technologies and computerized data.
• E-business refers to the use of digital technology and the Internet to execute the major business processes in
the enterprise. E-Business includes activities for the internal management of the firm and for coordination with
suppliers and other business partners.( it also includes E-commerce).
• E-business simply means conducting business using the internet and online technology . It uses the power of
the internet to enhance other forms of business activity which includes servicing customers , payment
processing , managing production control , recruitment , collaborating with business partners , sharing
information , running automated employee services , recruiting etc.
• E-business involves running a physical store both online and offline in a mutually exclusive manner and it is
more efficient.
E-Business Models
• E-business has two significant forms / models employed by different types of business.
Pure Play Model
The pure-play E-business model applies to companies that work with only one line of products . This model is
well-loved by investors because they are easily analyzed. However , they are hard to identify since many
companies presently deal with more then one product. These businesses can operate both online or offline.
Bricks and Clicks
This is considered to be the most popular E-Business Model, in which a store operates both online and offline. It
also goes by the names “ click and mortar “ and “ clicks and bricks “.
The business model comprises a physical store (brick/brick and mortar)and an online store (clicks). Customers can
make purchases by visiting the physical store or by going through the online store.
Due to the emergence of the corona virus pandemic , many businesses now run the bricks and clicks business
model. Examples of big name companies running the business model include Target , WAKMART , Old Navy ,
NETCO , and DSW. All of them have retail stores. However , they are also accessible via their online stores.
Components of electronic business
The core components of E-business are Information , communication and transaction. Business partners use digital
networks ( i.e public or private communication networks) to conduct business process using innovative technologies
to improve efficiency.
The three key areas are particularly important for E-Business:
1. E-Procurement : The electronic sourcing of products and services by companies focused on reducing costs and
effort.
2. Online Stores : The electronic sale of products and service via appropriate platform , such as online stores.
3. Online marketplaces : electronic commerce via digital networks , connecting the buyers and supliers of products
and services.
In addition , there are two further areas of E-business:
4. Online Communities : Electronic communication network between individuals and organizations , which supports
data and knowledge sharing as well as the preparation of transaction decisions.
5. Online Companies : Electronic business cooperation for connecting individual company services , resulting in a
virtual business with a common transaction offer.
Market Participants in E-business
E-business can take place between a large number of market participants between businesses and consumers ,
various private individuals , public administrations, and other organizations such as NGOs.
Generally speaking, these various market participants can be divided into three distinct categories :
Difference Between E-business and E-commerce
E-commerce is only a sub-set of E-Business. While E-Commerce describe only the online trading of products and
services , unlike E-Commerce , E-Business is not exclusive to buying and selling products and services online.
The five major differences between the two can be stated as follows :
1. E-Commerce is a subset within an E-Business Superset : When comparing both terms , it is correct to say
that E-Commerce is a subset of E-Business. E-Business incorporates internet or online based electronic
business transactions, which is similar to the E-Commerce aspect.
2. Types of online activities : E-Commerce involves businesses and customers making commercial transactions
online. On the other hand , E-Business Involves making online commercial transactions , obtaining raw
materials , and educating customer.
3. Main benefactor : the person who benefits most from E-Commerce business is the customer who is making
the online purchase. However , there is a wide variety of people who are the main benefactor in E-Business.
This include customers , business partners , suppliers , etc.
4. Use Of The Internet : From the earlier discussion, it would be observed that E-Commerce is an electronic
business that only occurs on the Internet . However , in E-business , business processes can occur both online
using he internet, intranet and extranet electronic networks and offline.
5. Requirements : E-Commerce requires a business or customer to have access to a website. This depends on
the type of E-Commerce business model you are running on. However , there are E-Commerce platforms such
as eBay ,Selar , etc. that provide such templates . On the other hand , E-Business requires enterprises to
access a websites.
E-commerce
• E-commerce is the buying and selling of goods and services over the internet.
• It is conducted over computers, tablets, smartphones, and other smart devices.
• Almost anything can be purchased through e-commerce today, and it has lowered the barriers to entry for
many types of businesses, such as retailers.
• E-commerce can be a substitute for brick-and-mortar stores, though some businesses choose to maintain both.
• E-commerce operates in several market segments, including business-to-business, business-to-consumer,
consumer-to-consumer, and consumer-to-business.
• e-commerce is the process of buying and selling products and services online. But it involves more than simply a
buyer and a seller, relying on a vast, often invisible, infrastructure to keep it running.
• E-commerce has helped companies (especially those with a narrow reach, like small, local businesses) gain
access to a wider market by providing cheaper and more efficient sales and distribution channels for their
products or services.
• E-commerce refers to the sharing of business information , maintenance of business relationships and
conducting business transactions with the help of computers that are connected to a telecommunication
network , and without the use of paper documents.
• The terms of E-commerce refers to a Business Model ( like that of Amazon , Alibaba , Big Basket , Flipkart or
Zomato/ Swiggy allows companies and individuals to buy and sell goods and services over the Internet , using
computers , tablets , smartphones , and other smart devices.
Types of E-commerce
E-commerce companies can operate using several different business models.
Business-to-Consumer (B2C)
B2C e-commerce companies sell directly to the product's end-user instead of distributing goods through an
intermediary such as another retailer.
This type of business model may be used to sell products (like your local sporting goods store's website) or
services (such as a lawn care mobile app to reserve landscaping services). This is the most common
business model and the concept most people likely think about when they hear the term e-commerce.
Business-to-Business (B2B)
• Similar to B2C, an e-commerce business can sell goods to another company. B2B transactions often entail larger
quantities, more detailed specifications, and longer lead times. The buyer can also arrange for recurring orders
if the purchase is for ongoing manufacturing processes.
Consumer-to-Consumer (C2C)
Individuals can sell things to other individuals on their individual websites or through e-commerce platforms that
facilitate the process. Examples of the latter include Craigslist, eBay, Etsy, and many others.
Consumer-to-Business (C2B)
• Some platforms allow individuals to more easily engage with companies and offer their services, especially
related to short-term contracts, gigs, or freelance opportunities. Upwork is one example.
E-commerce Applications
1. Retail
• E-retailing or online retailing allows businesses to sell products directly to consumers through online platforms. This has
revolutionized shopping experiences for consumers across the globe.
• Amazon, Alibaba, eBay, and Flipkart are some prime examples of how retail has transformed from physical stores to digital
marketplaces. E-commerce retail stores are beneficial to business are they include lower overhead costs and the ability to reach a
wider audience. This makes it easier for them to compete with brick-and-mortar stores.
• Example: Amazon has set a benchmark for e-retailing. It offers a wide variety of products that range from books to electronics.
Among the primary appeal of Amazon, is its user-centricity. It has a minimal UI that is easy to use, one-click purchasing options, and
personalized recommendations.
2. Accounting
• The integration of e-commerce with financial services is nothing short of a revolution. It enables online banking, bill payments, and
stock trading.
• This allows for efficient financial management for both businesses and consumers. This allows businesses to track expenses, and
generate invoices in a streamlined manner.
• Example: Quick books is a popular accounting software. It integrates with various e-commerce platforms and allows businesses to
manage finances in real-time, providing valuable insights into cash flow and profitability.
3. Production
• In manufacturing, e-commerce platforms bring in streamlined processes. They enable electronic transactions and information
sharing among suppliers and distributors. This use case enhances supply chain efficiency and allows manufacturers to manage
inventory levels and production schedules effectively.
• Example: Alibaba is a platform that connects manufacturers with suppliers and retailers globally. It facilitates bulk purchasing of
goods and helps businesses to source materials. It gives them a wide variety of options to choose from, optimizing the production
process.
4. Trade
• Ecommerce has expanded trade opportunities beyond measure. It allows businesses to engage with global
markets, which helps them overcome geographical barriers. This provides equal opportunity across the border
and enhances competition.
• Example: eBay Global Shipping Platform allows sellers to ship their products internationally. This served as a big
win for several businesses, giving them new avenues of income. It handles customs and shipping logistics that
help smaller businesses tap into markets that weren’t possible earlier. It allows this business to be a part of the
bigger picture of trade without the complexities that come with international trade.
5. Online Marketing
• Onl͏ine ͏market͏ing revo͏l͏ves arou͏nd gathering valu͏able data ab͏out c͏ons͏umer behavior, preferences, buy͏i͏ng
pa͏tt͏e͏rns, and͏ ͏needs. Th͏is data͏enable͏s ͏bu͏sine͏sses to cre͏ate ͏highly pers͏o͏n͏alized marketin͏g str͏ate͏g͏ies, enhan͏ci͏n͏g
prod͏uct offer͏ings, setting competitive p͏rices͏,͏and building stronger͏cust͏ome͏r r͏elati͏onships.
• By ͏leveraging this dat͏a, e-commerce platforms can tailo͏r the shopp͏ing experience to indiv͏idua͏l customers,
leading to more͏meaningful interaction͏s. For instance, tool͏s like ͏Faceb͏ook͏Ads allow ͏busi͏n͏ess͏es to͏curat͏e
campaigns targ͏e͏ting ͏speci͏fic͏de͏mogr͏aphics, interest͏s, ͏and be͏haviors, of͏fering a highly cust͏omized approach ͏t͏o͏
reach potential customers͏and track cam͏paign effec͏tiveness ͏in re͏al-ti͏me.
6. Online Booking
• Earlier bookings for travel or movie tickets were tedious tasks. Consumers had to rise early to get the limited
tickets. But today, the situation is entirely different. Users can tap on their laptops or phones, access online
booking platforms, and book complete itineraries with ease.
• Example: Airbnb has disrupted the hospitality industry by allowing homeowners to rent out their spaces to anyone
traveling to their location. This peer-to-peer model has created new financial modes for short-term rent. It also
provides a unique experience for travelers.
7. Digital Shopping
• Digital shopping has brought the convenience of browsing and purchasing products online with ease. The e-
commerce applications that enable digital shopping often also provide user-friendly interfaces, secure payment
options, and streamlined delivery services.
• Example: Shopify is a leading e-commerce platform that allows business owners to create their digital shopping
store easily. It offers customizable templates and integrated payment solutions that simplify the digital shopping
experience.
8. Web and Mobile Applications
• Mobile commerce applications enhance the shopping experience by providing seamless experiences on phones and
tablets. Considering how the usage of mobiles is increasing for mobile devices, businesses today need to ensure
their websites and applications are mobile-friendly to capture this growing demand.
• Example: Wish is a mobile shopping app that offers a wide range of products. It has a user-friendly interface and
personalized shopping recommendations that make it a popular app for users.
9. Digital Media
• E-commerce also includes the sale of digital products such as e-books, music, and software through online
platforms. These applications allow creators to distribute their work globally without needing any physical inventory.
• Example: Spotify is a digital music streaming service. It allows users to access a vast library of songs and podcasts. Its
subscription model can ensure a steady stream of revenue for artists and offers a convenient way to experience
music for users.
10. Internet Banking
• Users can perform online financial transactions with this program. This improves the efficiency and accessibility
of banking. From the convenience of their homes, customers may pay bills, transfer money, and check their
balances. This lessens the need to physically visit the banks.
• Example: PayPal is an online payment application. It enables consumers to select a secure online transaction
app. It now serves as a dependable payment option for both consumers and sellers when making purchases
online, making it a favored technique.
11. Online Auction
• Some we͏bsite͏s ͏off͏er͏ ͏auct͏ion-style sa͏le͏s, allowing users ͏to͏ ͏buy and s͏ell products through ͏c͏o͏mp͏eti͏tive bidding.
This dyna͏mic approach gives buyers th͏e o͏pportunity to secure items at ͏potent͏i͏ally lower p͏rice͏s, while sellers͏
͏benefit from͏hi͏g͏her b͏ids͏ ͏driven by͏mar͏ket de͏mand.
• With the help of this application, buyers and sellers can take advantage of exclusive chances in a dynamic
marketplace where prices are set by supply and demand.
• Example: Sotheby's has modified its conventional auction format for the Internet to enable bidders to place
online bids on fine art and luxury goods. This app has drawn in a new customer base and broadened its reach.
Advantages and Disadvantages of E-commerce
Advantages
E-commerce offers buyers and sellers a number of advantages:
• Convenience: E-commerce can happen 24 hours a day, seven days a week. Consumers can buy at their convenience,
and business owners can make sales while they sleep.
• Increased selection: Many stores offer a wider array of products online than they could ever carry in their brick-and-
mortar counterparts. And many stores that solely exist online offer consumers exclusive inventory that is unavailable
elsewhere.
• Potentially lower start-up costs: E-commerce companies may require a warehouse or manufacturing site, but they
usually don't need a physical storefront. The cost to operate digitally is often less expensive than needing to pay rent,
insurance, building maintenance, and property taxes.
• International sales: As long as an e-commerce store can find a way to ship its products to its customers, it can sell to
anyone in the world and isn't limited by physical geography.
• Opportunity to collect valuable data: Willingly or unknowingly, consumers share a lot of information on their
interests and shopping habits when they buy or even just browse online. Site owners can monetize this data in a
number of ways, using it themselves and selling it to others.
Disadvantages
There are also some drawbacks that come with e-commerce. Those can include:
• Limited customer service: If you shop online for a computer, you cannot simply ask an employee to demonstrate a
particular model's features in person. And although some websites let you chat online with a staff member, that is
not a typical practice. A disadvantage for shoppers, this can also be a money-saver for retailers.
• Lack of instant gratification: When you buy an item online, you must wait for it to be shipped to
your home or office. However, e-tailers like Amazon now make the waiting game a little bit less painful by
offering same-day delivery as a premium option for select products.
• Inability to touch products: Online images do not necessarily convey the whole story about an
item, and e-commerce purchases can be disappointing when the items don't live up to the buyer's
expectations. Case in point: an item of clothing may be made from shoddier fabric than its online image
indicates.
• Dependence on technology: If a website crashes or must be temporarily taken down for any reason,
the business is effectively closed until things return to normal.
• Greater competition: Although the low cost of starting an e-commerce business can be an advantage,
it also means means competitors can just as easily enter the market.
Electronic Communication and Its Types
• The communication can be done using Morse code in the telegraphs. These telegraphs use Morse code for long-
distance communication over wires.
• Afterward, the wired telephone, the TV & the wireless radio was invented by the electronic industry. But at present,
the information can be shared easily with each other at any place and anytime using e-communication.
• The communication is mandatory in different fields for processing, controlling, making decisions, and planning. The
different fields are finance, accounting, establishment, personal, market, sales, purchase, production, etc. This
article discusses what is electronic-communication, types, protocols, and electronic communication applications.
What is an Electronic Communication?
Electronic communication can be defined as, the communication which uses electronic media to transmit the
information or message using computers, e-mail, telephone, video calling, FAX machine, etc. This
type of communication can be developed by sharing data like images, graphics, sound, pictures, maps, software,
and many things.
• Because of this e-communication, there is a lot of changes have occurred in work areas, society, etc. Thus, people
can simply access global communication with no physical movement. Please refer to this link to know about –
Electronic Communication Protocols
Types of Electronic Communication
• Electronic communication can be classified into different types like messaging, voice call, e-mail, social media, etc. We know
that e-communication has changed due to the way public interact and communicate with each other for different purposes
like personal or business. By using this, it is very simple to communicate with the world.
E-Mail
• E-Mail or electronic mail is the most used type of electronic communication. By using this communication, one can send a
message to another person through a mail immediately. For that, we need to create an account to send an e-mail, media files,
photos, documents, etc. This type of communication has replaced many conventional types of communication due to many
benefits.
• So this type of communication is more suitable for different methods of communication. The benefits of this communication
are ease of usage, completely free, etc. Additionally, this type of electronic communication doesn’t affect the surroundings.
Messaging
• This type of communication allows people to interact with others who are far away from us. This is possible only due to
technology as well as usage of the internet. There are different types of messengers are available like Skype, Windows Live,
Gmail, etc. These messengers help in chatting or sending messages to our beloved ones or friends.
• There are many benefits by using this kind of communication like the message which we sent & the response are immediate.
But in some cases, some files include nil although bug can stop the functioning of your computer by giving you lots of trouble.
Blogging
• At present, blogging is the most preferable communication method. This is a type of online journaling, which can be updated
daily, or many times a day. It covers all the information or a particular topic.
• By using such blogs, one can share, follow, or even post comments. This kind of communication is extremely
suitable. This is the reason why people utilize blogs very often. Additionally, by using the internet, people can
access, read & follow it worldwide.
Video Chat
This type of communication can be done by adding web cameras for video calling application. By using this
application, one can communicate with others and also they can observe with whom they are speaking. The
webcam can be connected to the computer externally and also we need to use applications like Skype,
Hangouts, etc.
There are many benefits to using video chatting. We can contact anybody immediately. We can communicate with
more than one person at a time by using the feature like business conference feature. Also, we can share PPTs,
data sheets online.
Social Networking
• Social media is one kind of communication between people, which is used with their general advantage
otherwise for relationships. In this, mostly Facebook, as well as LinkedIn, give places for people to work
together, sometimes in real-time. There is a Micro-blogging service namely Twitter, which allows the short
message of more than 140 characters to be transmitted to a huge audience.
• Not like text messages, it sends to simply tiny groups. The posts like Microblog are intended to be seen by all
the followers and users can repost texts that they desire to share with their followers. Therefore, a microblog
• post can reach rapidly and a viral post is s message which reports widely.
Telex
• This is a significant device for current electronic communication. This system uses a teleprinter to communicate
from one position to another using a machine. It includes mainly two parts like keyboard transmitter as well as a
receiver.
• Whenever a text is to be sent, then the user presses a push-button, and stays for the call tone, calls the number
preferred & enters the massage on a tiny paper strip at the end of receiver end because it is entered within the
creating office. This method is the quickest & most exact methods for exchanging written posts.
Fax
The Fax machine is a kind of communications and use of this is increasing gradually to transmit materials
which are visual like illustrations, diagrams, picture, etc. Here, this machine can be connected using a
telephonic.
• The transmitted document can be fed throughout the machine, after that it is scanned electronically &
signals are broadcasted to the end of receiver wherever an equal document copy is replicated on a plain
paper sheet using the receiving machine.
This machine has made it achievable to send important documents copies which include testimonials,
certificates, degrees, contracts, agreements from one location to another in a telephone call speed.
Multimedia
• The multimedia is one kind of communication system and it is an excellent innovation to improve the
communication system. This is a blend of several media which bring mutually to transmit messages. The
multimedia mainly includes a photo, graphics, voice, music, animation, and message. Whenever all these media
are located jointly otherwise computer screen then becomes multimedia. This can be used efficiently for
marketing and advertising campaigns. This type of communication is extremely powerful.
• Thus, this is all about electronic communication principles which include immediate messaging, websites, social
networking voicemail, e-mail, and text messaging. This communication has changed completely the way people
communicate with each other. This can be used for personal, business, etc. By using this, it is extremely simple to
communicate with the entire world. Here is a question for you, what are the strengths & weaknesses of the
electronic system?
Why use electronic Communication ?
1. The use of e-communication allows people to interact in different ways and combine many forms of media in
the process.
2. E-communication makes it easy to interact with groups through chat interfaces or video conferencing.
3. Companies use electronic communications to enhance their business and avoid obstacles , such as long-
distance communication with their clients or partners.
4. E-commerce is interactive so you can engage with your audience much better. This is achieved through using
pictures , sounds , graphics , videos and all of these can be combined into one single message.
5. E-communication allows one to communicate with anyone across the whole world and it is often immediate
( texts , chats , instant messaging , skype video) and it is two-way i.e there is a back and forth conversation.
6. E-Communication is “green & environment-friendly “, as it cuts down on the excessive use of paper products
( fax machines beings the only exception) , thereby reducing the number of trees needing to be cut down and also
reducing the amount of paper being burnt into the atmosphere.
7. E-Communication helps in cost reduction & cost effective.
8. E-Communication makes multi-tasking easier.
Business Process Re-engineering
• Business Process Re-engineering (BPR) is a management strategy aimed at improving organizational
performance by re-designing and optimizing business processes.
• BPR is a systematic and radical approach to change, focused on transforming and streamlining core business
processes to achieve dramatic improvements in quality, efficiency, and customer satisfaction. This article
focuses on discussing Business Process Re-engineering in detail.
What is Business Process Re-engineering (BPR)?
Business Process Re-engineering (BPR) is a strategic approach to improve an organization’s performance by
rethinking and redesigning its business processes. The goal of BPR is to achieve significant improvement in
parameters like cost, quality, service, and speed.
1. The aim is to improve customer satisfaction by improving the quality and speed of services delivered.
2. It involves questioning the basic assumptions and principles of current business processes.
3. It involves the collaboration of cross-functional teams to ensure all the aspects of the processes are considered.
4. Its successful implementation requires effective change management strategies to handle resistance to change.
Business Process
• “ Business process is a collection of activities that takes on one or more kinds of input and creates an output
that is of value to the customer”.
• A business process consists of a set of logically related tasks performed to achieve a defined business outcome.
Re-engineering
• re-engineering" (often referred to as Business Process Reengineering or BPR) means fundamentally rethinking and
radically redesigning core business processes to achieve dramatic improvements in performance, efficiency, and
effectiveness.
Re-engineering is different and has the following characteristics :
1. Several jobs are combined/ Integrated , vertically or horizontally.
2. Combination/ Integration of the jobs lead to better customer response satisfaction /delight & retention.
3. Activities are performed not in artificial order but in natural order.
4. Re-designing leads to job enrichment /enhancement.
5. This , in turn , leads to people empowerment.
6. Integrating the jobs reduces the errors , misunderstandings , delays.
7. Re-working , & administrative overheads ( Lean & mean & Fighting fit)
Re-engineering process
8. Organize around customers, not around tasks.
9. Have those who use the output of a process actually perform the process.
10. Treat geographically dispersed units as if they were centralized.
11. Link parallel activities during the process, rather than at the end of the process( not serial , but parallel
processing).
BPR Team Member Roles
1. Executive Sponsor: Responsible for overall direction and support for the BPR project.
2. BPR Project Leader: Responsible for leading and managing the project. The project leader is also responsible for
coordinating activities and ensuring that the project milestones are met.
3. Process Owners: They are responsible for providing in-depth knowledge of the current process.
4. BPR Team Members: They are responsible for collecting and analyzing data, conducting process analysis, and redesigning
activities.
5. IT Specialists: Responsible for identifying and implementing technology solutions to support new processes.
6. Finance Analysts: They are responsible for analyzing the financial implications of process changes.

When You Should Consider BPR?

7. Significant Performance Gaps: When there is a significant discrepancy between current performance and desired
outcomes then there is a need to implement BPR.
2. Shift in Market Dynamics: In response to changes in market conditions, such as changing customer demands, or emerging
technologies, that require rethinking of business operations.
3. Strategic Shift: When an organization undergoes a strategic shift such as launching new products or changing business
models, requiring alignment of processes with new strategic objectives.
4. Customer Dissatisfaction: When there is customer dissatisfaction due to poor quality, or slow service, thus indicating
process redesign to enhance customer experience.
5. Cost Reduction Needs: When there is a need to reduce operational costs without compromising quality, there is the
necessity of re-engineering processes to eliminate waste and improve efficiency.
.
Principles of BPR
Here are seven key principles of BPR:
1. Focus on Desired Outcomes: BPR emphasizes organizing processes based on desired outcomes, rather than
individual tasks and designing processes that achieve these outcomes efficiently.
2. Identify and Eliminate Non-Value-Adding Activities: BPR aims to eliminate non-value-added activities by
analyzing processes, thereby reducing waste and unnecessary bottlenecks.
3. Integrate Multiple Steps: BPR emphasizes combining multiple steps and ensures that information
processing occurs as a part of the actual work process. This helps to simplify the process and reduce delays.
4. Coordinate Geographically Dispersed Resources: BPR advocates to use of technology to integrate and treat
geographically dispersed resources as a centralized source to create a unified process and improve accuracy.
5. Link Parallel Activities: BPR focuses on integrating parallel activities to enable simultaneous processing and
thus reducing the wait time and errors.
6. Empower Employees: BPR advocates to empower employees so that they can make decisions at the point
where the work is performed, thus enabling faster and more efficient decision-making.
7. Capture Information Once at the Source: BPR emphasizes capturing information once and ideally at the
source to avoid duplication and errors. The same information can be used throughout the process.
Steps to BPR
Here is a brief overview of how BPR works:
1. Identify Processes: This step involves identifying processes for re-engineering that require the improvement
most and will offer the greatest benefit from re-engineering.
2. Understand Existing Processes: Conduct a thorough analysis of current processes to identify inefficiencies and
bottlenecks.
3. Define Objectives: Set clear and specific goals for the re-engineering process such as cost reduction, faster
service, improved quality, and many more.
4. Form a Cross-Functional Team: Form a team of members from various departments to bring diverse expertise
to the re-engineering process.
5. Redesign Processes: Rethink and redesign processes from the ground up, focusing on eliminating non-value-
adding activities.
6. Implement Changes: Execute new process designs and ensure that all necessary resources are available to
facilitate a smooth transition.
7. Monitor and Optimize: Continuously track the performance of re-engineered processes and make changes as
needed to ensure that they meet the desired outcomes
Benefits of BPR
Here are some key benefits that can significantly impact organizational performance and efficiency:
1. Increased Efficiency: It aims to streamline processes, reduce cycle times, and eliminate redundancies, leading to
improved operational efficiency.
2. Cost Reduction: Organizations can lower operational costs by optimizing processes and reducing costs.
3. Improved Quality: Redesigned processes include built-in quality checks, resulting in higher quality outputs and
fewer errors.
4. Improved Customer Satisfaction: It focuses on improving overall customer satisfaction by aligning the processes
with customer needs.
5. Employee Empowerment: Involving employees in process redesign leads to a more motivated workforce.
6. Improved Financial Performance: BPR can lead to improved financial performance through cost savings, better
resource utilization, and increased revenues.
7. Continuous Improvement: It encourages an environment of continuous improvement, enabling organizations to
be more adaptable to market changes.
Challenges in BPR
Here are common challenges in BPR initiatives:
1. High Costs: Implementing BPR can be a costly and time-consuming process, requiring significant investment in
resources, including technology, training, and consulting fees. This can be a significant barrier for small or cash-
strapped organizations.
2. Resistance to Change: Implementing BPR can be a difficult and complex process that requires significant
changes to an organization’s culture, processes, and people. Employees may resist the changes, especially if
they feel their job security is at risk, leading to decreased morale and increased turnover.
3. Focus on Short-term Goals: BPR initiatives may focus on short-term goals, such as reducing costs, without
considering the long-term impact on the organization’s overall strategy and goals.
4. Lack of Top Management Support: Without support from senior management, BPR initiatives may lack the
necessary resources and authority to succeed.
5. Unclear Objectives: Unclear goals can lead to confusion and difficulty in measuring success.
6. Risk of Failure: BPR is a high-risk strategy that can fail if not implemented properly. The failure to gain employee
support, lack of a clear strategy, or poor planning can all lead to a BPR initiative’s failure.
7. Disruption to Operations: Implementing BPR can disrupt the day-to-day operations of the organization, leading
to decreased productivity, customer dissatisfaction, and revenue loss.
Examples of BPR:
•Streamlining Customer Service:
•Shortening Response Times: Redesigning processes to quickly address customer inquiries and issues.
•Reducing Wait Times: Implementing technologies and strategies to minimize customer wait times.
•Optimizing Supply Chain Management:
•Optimizing Flow of Goods: Streamlining processes to improve the efficiency of the supply chain.
•Reducing Inventory Costs: Implementing strategies to optimize inventory levels and reduce storage costs.
•Enhancing IT Processes:
•Improving System Performance: Redesigning IT processes to enhance system speed and efficiency.
•Reducing Downtime: Implementing strategies to minimize system downtime and improve reliability.
•Enhancing Data Security: Implementing security measures to protect sensitive data.
•Other Examples:
•Financial Management: Streamlining financial reporting and reducing transaction costs.
•Human Resources: Automating HR functions and reducing paperwork.
•Marketing: Improving market research and developing more effective marketing strategies.
•Production: Improving efficiency, reducing costs, and increasing quality in the production process.
•Sales: Increasing sales productivity, shortening the sales cycle, and improving customer satisfaction.
Comparison between BPR and BPM
Business Process Reengineering (BPR):
• Focus:
• Radical redesign of processes to achieve dramatic improvements in performance, often involving a "clean slate"
approach.
• Scope:
• BPR typically involves a complete overhaul of existing processes, aiming to eliminate inefficiencies and create
entirely new workflows.
• Implementation:
• BPR projects are often large-scale and require significant resources and time.
• Goal:
• To achieve significant, transformative changes in performance, often with a focus on cost reduction, improved
quality, and faster cycle times.
• Example:
• Reimagining an entire customer order fulfillment process from start to finish, rather than just making minor
tweaks to existing steps.
Business Process Management (BPM):
• Focus:
• Continuous improvement and optimization of existing business processes through a structured, iterative
approach.
• Scope:
• BPM focuses on identifying and addressing bottlenecks, inefficiencies, and areas for
improvement within existing processes.
• Implementation:
• BPM projects are typically smaller and more manageable, allowing for incremental
improvements over time.
• Goal:
• To enhance operational performance, improve customer satisfaction, and achieve
ongoing efficiency gains.
• Example:
• Implementing a new reporting system to track process performance, or automating a
specific task within an existing workflow.