Assignment 87

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Essentials of Management Information Systems

Thirteenth Edition

Chapter 2

Global E-business and Collaboration

Learning Objectives

2.1 What major features of a business are important for understanding the role of information systems?

2.2 How do systems serve different management groups in a business, and how do systems that link the enterprise improve organizational performance?

2.3 Why are systems for collaboration and social business so important, and what technologies do they use?

2.4 What is the role of the information systems function in a business?

2.5 How will M I S help my career?

Video Cases

Case 1: Walmart’s Retail Link Supply Chain

Case 2: CEMEX – Becoming a Social Business

Instructional Video 1: U S Foodservice Grows Market with Oracle C R M on Demand

Enterprise Social Networking Helps Innovate and Improve Quality (1 of 2)

Problem

Hierarchical top-down processes

Large geographically dispersed workforce

Solutions

Develop knowledge-sharing strategy and goals

Redesign knowledge and collaboration processes

Microsoft Yammer

Enterprise social networking

Enterprise Social Networking Helps Innovate and Improve Quality (2 of 2)

Use of new technology to engage employees and enabled knowledge gathering and sharing

Demonstrates how outdated processes can affect knowledge sharing and innovation

Illustrates why organizations rely on information systems to improve performance and remain competitive

Organizing a Business: Basic Business Functions (1 of 2)

Business: formal organization that makes products or provides a service in order to make a profit

Four basic business functions

Manufacturing and production

Sales and marketing

Finance and accounting

Human resources

Organizing a Business: Basic Business Functions (2 of 2)

Five basic business entities

Suppliers

Customers

Employees

Invoices/payments

Products and services

Figure 2.1 The Four Major Functions of a Business

Figure 2.1, Page 44.

Every business, regardless of its size, must perform four functions to succeed. It must produce the product or service; market and sell the product or service; keep track of accounting and financial transactions; and perform basic human resources tasks such as hiring and retaining employees.

Emphasize that each function is critical to any business, and explain that the product or service is at the center of the diagram because it “governs” the way each business approaches the four major business functions.

Business Processes

Logically related set of tasks that define how specific business tasks are performed

The tasks each employee performs, in what order, and on what schedule

E.g., Steps in hiring an employee

Some processes tied to functional area

Sales and marketing: identifying customers

Some processes are cross-functional

Fulfilling customer order

Figure 2.2 The Order Fulfillment Process

Figure 2.2, Page 45.

Fulfilling a customer order involves a complex set of steps that requires the close coordination of the sales, accounting, and manufacturing functions.

Emphasize that each rectangle represents one part of the larger business process of order fulfillment. Notice that this business process spans more than one type mentioned on the previous slide.

How I T Enhances Business Processes

Automation of manual processes

Change the flow of information

Replace sequential processes with simultaneous activity

Transform how a business works

Drive new business models

Managing a Business and Firm Hierarchies

Firms coordinate work of employees by developing hierarchy in which authority is concentrated at top.

Senior management

Middle management

Operational management

Knowledge workers

Data workers

Production or service workers

Each group has different needs for information.

Figure 2.3 Levels in a Firm

Figure 2.3, Page 46.

Business organizations are hierarchies consisting of three principal levels: senior management, middle management, and operational management. Information systems serve each of these levels. Scientists and knowledge workers often work with middle management.

The Business Environment

Businesses depend heavily on their environments for capital, labor, supplies, and more.

Global environment

Technology and science, economy, politics, international change

Immediate environment

Customers, suppliers, competitors, regulations, stockholders

Figure 2.4 The Business Environment

Figure 2.4, Page 47.

The Role of Information Systems in a Business

Firms invest in information systems in order to:

Achieve operational excellence

Develop new products and services

Attain customer intimacy and service

Improve decision making

Promote competitive advantage

Ensure survival

To accomplish business objectives, businesses develop and use information systems.

Systems for Different Management Groups

Transaction processing systems (T P S)

Keep track of basic activities and transactions of organization

Systems for business intelligence

Address decision-making needs of all levels of management

Management information systems (M I S)

Decision support systems (D S S)

Executive support systems (E S S)

Transaction Processing Systems

Serve operational managers

Principal purpose is to answer routine questions and to track the flow of transactions through the organization

E.g., inventory questions, granting credit to customer

Monitor status of internal operations and firm’s relationship with external environment

Major producers of information for other systems

Highly central to business operations and functioning

Figure 2.5 A Payroll T P S

Figure 2.5, Page 49.

A TPS for payroll processing captures employee payment transaction data (such as a timecard). System outputs include online and hard copy reports for management and employee paychecks.

Management Information Systems

Provide middle managers with reports on firm’s performance, to help monitor firm and predict future performance

Summarize and report on basic operations using data from T P S

Provide weekly, monthly, annual results, but may enable drilling down into daily or hourly data

Typically not very flexible systems with little analytic capability

Figure 2.6 How M I S Obtain Their Data from the Organization’s T P S

Figure 2.6, Page 50.

Figure 2.7 Sample M I S Report

Figure 2.7, Page 51.

Decision Support Systems

Serve middle managers

Support nonroutine decision making

Example: What is impact on production schedule if December sales doubled?

Often use external information as well from T P S and M I S

Model driven D S S

Voyage-estimating systems

Data driven D S S

Intrawest’s marketing analysis systems

Figure 2.8 Voyage-Estimating Decision Support System

Figure 2.8, Page 52.

Executive Support Systems

Serve senior managers

Address strategic issues and long-term trends

E.g., what products should we make in five years?

Address nonroutine decision making

Provide generalized computing capacity that can be applied to changing array of problems

Draw summarized information from M I S, D S S, and data from external events

Typically use portal with Web interface, or digital dashboard, to present content

Figure Digital Dashboard

Figure Page 53.

Systems for Linking the Enterprise

Enterprise applications

Systems that span functional areas, focus on executing business processes across the firm, and include all levels of management

Four major types

Enterprise systems

Supply chain management systems

Customer relationship management systems

Knowledge management systems

Figure 2.9 Enterprise Application Architecture

Figure 2.9 Page 55.

Enterprise Systems

Also called enterprise resource planning (E R P) systems

Integrate data from key business processes into single system

Speed communication of information throughout firm

Enable greater flexibility in responding to customer requests, greater accuracy in order fulfillment

Enable managers to assemble overall view of operations

Supply Chain Management (S C M) Systems

Manage relationships with suppliers, purchasing firms, distributors, and logistics companies

Manage shared information about orders, production, inventory levels, and so on

Goal is to move correct amount of product from source to point of consumption as quickly as possible and at lowest cost

Type of interorganizational system

Automating flow of information across organizational boundaries

Customer Relationship Management (C R M) Systems

Help manage relationship with customers.

Coordinate business processes that deal with customers in sales, marketing, and customer service

Goals:

Optimize revenue

Improve customer satisfaction

Increase customer retention

Identify and retain most profitable customers

Increase sales

Knowledge Management Systems

Manage processes for capturing and applying knowledge and expertise

Collect relevant knowledge and make it available wherever needed in the enterprise to improve business processes and management decisions

Link firm to external sources of knowledge

Intranets and Extranets

Technology platforms that increase integration and expedite the flow of information

Intranets:

Internal networks based on Internet standards

Often are private access area in company’s website

Extranets:

Company websites accessible only to authorized vendors and suppliers

Facilitate collaboration

E-Business, E-Commerce, and E-Government

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

What is Collaboration?

Growing importance of collaboration:

Changing nature of work

Growth of professional work

Changing organization of the firm

Changing scope of the firm

Emphasis on innovation

Changing culture of work and business

What is Social Business?

Use of social networking platforms to engage employees, customers, suppliers

Conversations to strengthen bonds

Requires information transparency

Seen as way to drive operational efficiency, spur innovation, accelerate decision making

Business Benefits of Collaboration and Social Business

Investment in collaboration technology can return large rewards, especially in sales and marketing, research and development

Productivity: Sharing knowledge and resolving problems

Quality: Faster resolution of quality issues

Innovation: More ideas for products and services

Customer service: Complaints handled more rapidly

Financial performance: Generated by improvements in factors above

Figure 2.10 Requirements for Collaboration

Tools and Technologies for Collaboration and Teamwork

Email and instant messaging (I M)

Wikis

Virtual worlds

Collaboration and social business environments

Virtual meeting systems (telepresence)

Cloud collaboration services

Google Drive, Dropbox

Microsoft SharePoint and I B M Notes

Enterprise social networking tools

Interactive Session

Class discussion

Discuss the features of FaceTime as a collaboration software

Why is it required a tool for collaboration? Was FaceTime a feasible option?

Name some other areas where such software can be useful. Discuss at least one such area.

Evaluating and Selecting Collaboration Tools

What are your firm’s collaboration challenges?

What kinds of solutions are available?

Analyze available products’ cost and benefits.

Evaluate security risks.

Consult users for implementation and training issues.

Select candidate tools and evaluate vendors.

Figure 2.11 The Time/Space Collaboration and Social Tool Matrix

Figure 2.11 Page 66.

The Information Systems Department

Programmers

Systems analysts

Principle liaisons to rest of firm

Information systems managers

Leaders of teams of programmers and analysts, project managers, physical facility managers, telecommunications managers, database specialists, managers of computer operations, and data entry staff

Senior managers

End users

Information Systems Services

Computing services

Telecommunications services

Data management services

Application software services

Physical facilities management services

I T management services

I T standards services

I T educational services

I T research and development services

How Will M I S Help My Career?

The Company: Comprehensive Supplemental Insurance U S A

Position Description

Job Requirements

Interview Questions