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Chapter 2
Global E-business and
Collaboration Management Information Systems Chapter 2: Global E-business and Collaboration
Learning Objectives
• What are business processes? How are they related
to information systems? • How do systems serve the different management groups in a business and how do systems that link the enterprise improve organizational performance? • Why are systems for collaboration and social business so important and what technologies do they use? • What is the role of the information systems function in a business?
Management Information Systems Chapter 2: Global E-business and Collaboration
Business Processes and Information Systems
• Business processes: – Flows of material, information, knowledge – Sets of activities, steps – May be tied to functional area or be cross- functional. • Businesses: Can be seen as collection of business processes.
Management Information Systems Chapter 2: Global E-business and Collaboration
Business Processes and Information Systems
• Examples of functional business processes
– Manufacturing and production • Assembling the product – Sales and marketing • Identifying customers – Finance and accounting • Creating financial statements – Human resources • Hiring employees
Management Information Systems Chapter 2: Global E-business and Collaboration
The Order Fulfillment Process
FIGURE 2-1
Fulfilling a customer order involves a complex set of steps that requires the close coordination of the sales, accounting, and manufacturing functions.
Management Information Systems Chapter 2: Global E-business and Collaboration
Business Processes and Information Systems
• (IT) Information technology enhances
business processes by: – Increasing efficiency of existing processes • Automating steps that were manual – Enabling entirely new processes • Change flow of information • Replace sequential steps • Eliminate delays in decision making • Support new business models
Types of Information Systems (according to levels of management) Transaction Processing Systems (TPS) TPS serve operational managers and staffs. Operational manager needs TPS to keep records of the elementary activities & transactions of the organization.
TPS records the daily routine transactions like: sales, cash
deposit, payroll.
Manager needs TPS to monitor the internal operations & the
firm’s relations with external environment.
Example: Walton Ltd daily sales record.
Management Information Systems Chapter 2: Global E-business and Collaboration
A Payroll TPS
A TPS for payroll processing
captures employee payment transaction data (such as a time card). System outputs include online and hard-copy reports for management and employee paychecks.
Management Information Systems Chapter 2: Global E-business and Collaboration
Business Intelligence Systems (BIS)
BIS focus on delivering information to support
management decision making.
Business Intelligence is a contemporary term for data &
software tools for organizing, analyzing & providing real time access to data & software to help manager & other relevant users making informed decisions.
Management Information Systems(MIS) Middle management needs MIS to help monitoring, controlling & decision making.
MIS provides reports to the middle managers about
the organization’s current performance.
This information is needed to control & monitor the
business & to predict future performance.
Example: Pricing of Walton refrigerator.
Management Information Systems Chapter 2: Global E-business and Collaboration
How MIS Obtain Their Data from the Organization’s TPS
FIGURE 2-3 In the system illustrated by this diagram, three TPS supply summarized transaction data to the MIS reporting system at the end of the time period. Managers gain access to the organizational data through the MIS, which provides them with the appropriate reports.
Decision Support Systems (DSS) Serve middle management Non routine decision making Focus on new emerging situations & problems Case based situation
Example: GP (10Tk, 1GB, 1 Day Validity)
Airtel (1Tk, 100MB, 1 Day Validity) Executive Support Systems (ESS) Top level managers uses ESS to handle strategic issues & long term trends.
ESS deals with external environment.
Take helps from the TPS & MIS.
Example: Sales trend forecasting for the next 5 years
of Walton Ltd. Management Information Systems Chapter 2: Global E-business and Collaboration
Types of Information Systems
• Enterprise applications – Systems for linking the enterprise – Span functional areas – Execute business processes across firm – Include all levels of management – Four major applications: • Enterprise systems (also known as ERP Systems) • Supply chain management systems • Customer relationship management systems • Knowledge management systems
Management Information Systems Chapter 2: Global E-business and Collaboration
Types of Information Systems
• Enterprise systems – Collects data from different functions of a firm and stores data in single central data repository – Resolves problem of fragmented data – Enable: • Coordination of daily activities • Efficient response to customer orders (production, inventory) • Help managers make decisions about daily operations and longer-term planning
Management Information Systems Chapter 2: Global E-business and Collaboration
Types of Information Systems
• Supply chain management (SCM) systems
– Manage firm’s relationships with suppliers – Share information about: • Orders, production, inventory levels, delivery of products and services – Goal: • Right amount of products to destination with least amount of time and lowest cost
Management Information Systems Chapter 2: Global E-business and Collaboration
Types of Information Systems
• Customer relationship management
systems: – Provide information to coordinate all of the business processes that deal with customers • Sales • Marketing • Customer service – Helps firms identify, attract, and retain most profitable customers
Management Information Systems Chapter 2: Global E-business and Collaboration
Types of Information Systems
• Knowledge management systems (KMS)
– Support processes for capturing and applying knowledge and expertise • How to create, produce, deliver products and services – Collect internal knowledge and experience within firm and make it available to employees – Link to external sources of knowledge
Management Information Systems Chapter 2: Global E-business and Collaboration
Types of Information Systems
– Intranets: • Internal company Web sites accessible only by employees – Extranets: • Company Web sites accessible externally only to vendors and suppliers • Often used to coordinate supply chain
Management Information Systems Chapter 2: Global E-business and Collaboration
Types of Information Systems
• E-business – Use of digital technology and Internet to drive major business processes • E-commerce – Subset of e-business – Buying and selling goods and services through Internet • E-government: – Using Internet technology to deliver information and services to citizens, employees, and businesses
– Use of social networking platforms, internal and external – Engage employees, customers, and suppliers – Goal is to deepen interactions and expedite information sharing – Conversations & Interaction among groups
Management Information Systems Chapter 2: Global E-business and Collaboration
Systems for Collaboration and Social Business
• Building a collaborative culture and business
processes – “Command and control” organizations • No value placed on teamwork or lower-level participation in decisions Vs – Collaborative business culture • Senior managers rely on teams of employees. • Policies, products, designs, processes, and systems rely on teams. • The managers purpose is to build teams.
Management Information Systems Chapter 2: Global E-business and Collaboration
Systems for Collaboration and Social Business
• Tools for collaboration and teamwork
– E-mail and instant messaging – Wikis – Virtual worlds (Online Environment) – Collaboration and social business platforms • Virtual meeting systems (telepresence) • Cloud collaboration services (Google Tools, Google Drive- cyberlockers, Google talks, Google docs) • Microsoft SharePoint • IBM Notes • Enterprise social networking tools
Management Information Systems Chapter 2: Global E-business and Collaboration
The Time/Space Collaboration Tool Matrix
FIGURE 2-8 Collaboration technologies can be classified in terms of whether they support interactions at the same or different time or place or whether these interactions are remote or co-located.
Management Information Systems Chapter 2: Global E-business and Collaboration
The Information Systems Function in Business
Information systems department:
Formal organizational unit responsible for information technology (IT) & Information systems (IS) services
• Often headed by chief information officer (CIO)
• Other senior positions include chief security officer (CSO), chief knowledge officer (CKO), chief privacy officer (CPO) • Programmers • Systems analysts: That person works with how systems interact with organization & organizational Structure. • Information systems managers
