1.3 Operations within businesses

	The increased application of IS helps create a synergy among the different aspects within the business environment.
	The increased application of IS helps create a synergy among the different aspects within the business environment.
	In addition, more use of IS results in a more flat organizational structures within businesses.

This is where autonomy is spread among the different levels of the organizational hierarchy.

	This is in contrast to the more traditional narrow organizational structure where autonomy is reserved for top management at the higher ranks of the hierarchy.
	Spreading autonomy among the different levels of the organizational hierarchy motivates employees and grants them a sense of responsibility and involvement in the business affairs.
	This concept leads organizations to place more emphasis on team work, with a clear focus on the set goals.
	Figure 1.2 gives an illustration for the flat organizational structure.

1.3 Operations within businesses

Figure 1.2: Flat Organizational Structure

IS makes collecting, processing and storing data much easier and less time consuming.

		Information is passed on and communicated among business staff in a faster and a more convenient way.
		This results in a more effective and efficient flow of information in business.

The deployment of the most appropriate IS in a business saves on operational costs.

IS aid in setting, applying and constant reviewing of the operational business goals.

	If implemented in the way that best suits the business, IS facilitates a more calculated and comprehensive operational targets to be set and actually worked for.
	Examples of using IT systems in supporting businesses operations include:

1.3 Operations within businesses

Communication:

			Internal and external communication required to support various business operations is usually heavily based on email.
			This includes internal communication between employees.
			External communication with suppliers and customers is more and more dependent on email.
			Companies have been also using other more advanced communication tools including live chat systems, video conferencing.
			Business organizations are increasingly using VoIP (Voice over Internet Protocol) technologies and systems (such as Skype) as a replacement of traditional PSTN (Public Switched Telephone Network) communication.
			The use of IS in supporting the communication needs of a business offers many advantages including cost savings, and convenience.

1.3 Operations within businesses

Inventory Management:

			Businesses need to maintain the required stock that meets customer demands.
			Excessive stock can lead to losses due to, e.g. goods expiry.
			Under stock can cause the inability to meet customer requirements on time which leads to customer dissatisfaction and business loss.
			An inventory system manages the stock allowing the tracking the quantities of every product the company provides.
			The system can automatically triggers an order from a supplier when the quantity goes below a pre-defined amount.
			The inventory system can be connected to a Point Of Sale (POS) system so that quantities are updated based on what is being sold.

Human Resources Management Systems (HRMS):

			Such systems support the different operations performed by the Human Resources (HR) department in a company.
			This includes maintaining staff personal information, payroll, staff attendance, staff recruitment process, etc.

1.3 Operations within businesses

Workflow Management Systems:

			Such systems support the automation of business processes within a company by considering each process as a workflow. Each workflow is defined as a set of tasks.
			Each task is performed by a user (or a number of users) and involves the manipulation of a document or a set of documents.
			Once the workflow is defined, the workflow management system supports the execution of the workflow.
			For example, consider the process of managing an employee leave in a company.
			A workflow management system can be used to define the employee leave as a workflow composed of different stages such as: make leave request, manager approval, human resources department approval and company director approval.
			Users could be assigned to be responsible for each stage.
			Forms can also be assigned to each stage. Once the workflow is defined in the system, an employee can initiate the workflow execution by triggering a make leave request.
			The system would manage the process according to the workflow definition.
			Commonly used workflow management systems include Microsoft's SharePoint and IBM's File Net.