Chapter 2 Presentation Handouts PDF

Management Information Systems
Chapter 2: Global E-business and Collaboration

Chapter 2
Learning Objectives
• Define and describe business processes and

Global E-business and their relationship to information systems.
Collaboration • Evaluate the role played by systems serving
the various levels of management in a
business and their relationship to each other.
• Explain how enterprise applications improve
organizational performance.
2.2 Copyright © 2014 Pearson Education, Inc.
Management Information Systems Management Information Systems

Chapter 2: Global E-business and Collaboration Chapter 2: Global E-business and Collaboration
Learning Objectives (cont.) TELUS Embraces Social Learning
• Explain the importance of collaboration and • Problem: Need to capture employee knowledge as 40% of
workforce nears retirement
teamwork in business and how they are
supported by technology. • Solutions: New technology for collaborative knowledge
sharing
• Microsoft SharePoint Server 3010 provided companywide
• Assess the role of the information systems platform for collaboration, knowledge acquisition and
function in a business. transfer, and social tools
• Demonstrates IT’s role in collaboration and documenting
knowledge
• Illustrates the need for changing organizational culture and
business processes to use information systems effectively
2.3 Copyright © 2014 Pearson Education, Inc. 2.4 Copyright © 2014 Pearson Education, Inc.
1
Business Processes and Information Systems Business Processes and Information Systems
• Business processes: • Examples of functional business processes

– Flows of material, information, knowledge – Manufacturing and production
– Sets of activities, steps • Assembling the product
– May be tied to functional area or be cross- – Sales and marketing
functional • Identifying customers
– Finance and accounting
• Businesses: Can be seen as collection of • Creating financial statements
business processes – Human resources
• Business processes may be assets or • Hiring employees
liabilities

The Order Fulfillment Process Business Processes and Information Systems
• 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 with parallel steps
• Eliminate delays in decision making
• Support new business models
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.
2
Types of Information Systems A Payroll TPS
• Transaction processing systems

– Serve operational managers and staff
– Perform and record daily routine transactions
necessary to conduct business
A TPS for payroll processing
• Examples: sales order entry, payroll, shipping captures employee payment
transaction data (such as a time
– Allow managers to monitor status of operations card). System outputs include

online and hard-copy reports
and relations with external environment for management and employee

paychecks.
– Serve predefined, structured goals and decision FIGURE 2-2
making

Types of Information Systems Types of Information Systems
• Business intelligence • Management information systems

– Data and software tools for organizing and analyzing – Serve middle management
data
– Used to help managers and users make improved – Provide reports on firm’s current
decisions performance, based on data from TPS
• Business intelligence systems – Provide answers to routine questions with
– Management information systems predefined procedure for answering them
– Decision support systems – Typically have little analytic capability
– Executive support systems
3
How MIS Obtain Their Data from the Organization’s TPS Sample MIS Report
A1
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. FIGURE 2-4 This report, showing summarized annual sales data, was produced by the MIS in Figure 2-3.

Types of Information Systems Voyage-Estimating Decision Support System
• Decision support systems

– Serve middle management
– Support non-routine decision making
• Example: What is the impact on production schedule if
December sales doubled?
– May use external information as well TPS / MIS data
– Model driven DSS
• Voyage-estimating systems
– Data driven DSS
• Intrawest’s marketing analysis systems
FIGURE 2-5 This DSS operates on a powerful PC. It is used daily by managers who must develop bids on shipping
contracts.
4
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Author, 07-Jan-13
• Executive support systems • Enterprise applications

– Support senior management – Systems for linking the enterprise
– Span functional areas
– Address non-routine decisions
– Execute business processes across firm
• Requiring judgment, evaluation, and insight
– Include all levels of management
– Incorporate data about external events (e.g. new tax
– Four major applications:
laws or competitors) as well as summarized
• Enterprise systems (ERP)
information from internal MIS and DSS
• Supply chain management systems (SCMS)
– Example: Digital dashboard with real-time view of • Customer relationship management systems (CRMS)
firm’s financial performance: working capital, • Product Life cycle Management Systems (PLMS)
accounts receivable, accounts payable, cash flow, and • Knowledge management systems (KMS)
inventory

Enterprise Application Architecture Types of Information Systems
• Enterprise systems
– Collects data from different firm functions and stores
data in single central data repository
– Resolves problem of fragmented data
Enterprise applications
– Enable:
automate processes that span
multiple business functions and
• Coordination of daily activities
organizational levels and may
extend outside the • Efficient response to customer orders (production,
organization.
inventory)
FIGURE 2-6
• Help managers make decisions about daily operations
and longer-term planning
5
• Supply chain management (SCM) • Customer relationship management

systems systems:
– Manage firm’s relationships with suppliers – Provide information to coordinate all of the
business processes that deal with customers
– Share information about:
• Sales
•Orders, production, inventory levels, • Marketing
delivery of products and services • Customer service
– Goal: – Helps firms identify, attract, and retain most
• Right amount of products to destination profitable customers
with least amount of time and lowest cost

• Knowledge management systems (KMS) • Also used to increase integration and

expedite the flow of information
– Support processes for capturing and applying
knowledge and expertise – Intranets:
• How to create, produce, deliver products and • Internal company Web sites accessible only by
services employees
– Extranets:
– Collect internal knowledge and experience
within firm and make it available to employees • Company Web sites accessible externally only
to vendors and suppliers
– Link to external sources of knowledge
• Often used to coordinate supply chain
6
Types of Information Systems Systems for Collaboration and Teamwork
• E-business • Collaboration:
– Use of digital technology and Internet to drive major – Short-lived or long-term
business processes – Informal or formal (teams)
• E-commerce • Growing importance of collaboration:
– Subset of e-business – Changing nature of work
– Buying and selling goods and services through – Growth of professional work—“interaction jobs”
Internet – Changing organization of the firm
– Changing scope of the firm
• E-government: – Emphasis on innovation
– Using Internet technology to deliver information and – Changing culture of work
services to citizens, employees, and businesses

Systems for Collaboration and Teamwork Systems for Collaboration and Teamwork
• Social business • Business benefits of collaboration and

– Use of social networking platforms, internal and external teamwork
– Engage employees, customers, and suppliers – Investments in collaboration technology can bring
organization improvements, returning high ROI
– Goal is to deepen interactions and expedite information
sharing – Benefits:
• Productivity
– “Conversations”
• Quality
– Requires information transparency • Innovation
• Driving the exchange of information without intervention • Customer service
from executives or others • Financial performance
– Profitability, sales, sales growth
7
Requirements for Collaboration Systems for Collaboration and Teamwork
• Building a collaborative culture and business

processes
– “Command and control” organizations
• No value placed on teamwork or lower-level
participation in decisions
Successful collaboration
requires an appropriate
– Collaborative business culture
organizational structure
and culture, along with • Senior managers rely on teams of employees.
appropriate collaboration
technology. • Policies, products, designs, processes, and systems rely
on teams.
FIGURE 2-7
• The managers purpose is to build teams.

Systems for Collaboration and Teamwork Systems for Collaboration and Teamwork
• Tools for collaboration and teamwork • Enterprise social networking software

– E-mail and instant messaging capabilities
– Wikis – Profiles
– Virtual worlds – Content sharing
– Collaboration and social business platforms – Feeds and notifications
• Virtual meeting systems (telepresence) – Groups and team workspaces
• Google Apps/Google sites
• Cyberlockers – Tagging and social bookmarking
• Microsoft SharePoint – Permissions and privacy
• Lotus Notes
• Enterprise social networking tools
8
Systems for Collaboration and Teamwork The Time/Space Collaboration Tool Matrix
• Two dimensions of collaboration technologies

– Space (or location)—remote or co-located
– Time—synchronous or asynchronous
• Six steps in evaluating software tools
1. What are your firm’s collaboration challenges?
2. What kinds of solutions are available?
3. Analyze available products’ cost and benefits.
4. Evaluate security risks.
5. Consult users for implementation and training issues.
6. Evaluate product vendors.
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.

The Information Systems Function in Business The Information Systems Function in Business
• Information systems department: • End users

• Formal organizational unit responsible for – Representatives of other departments for whom
information technology services applications are developed
• Often headed by chief information officer (CIO) – Increasing role in system design, development
• Other senior positions include chief security officer • IT Governance:
(CSO), chief knowledge officer (CKO), chief privacy
officer (CPO) – Strategies and policies for using IT in the
• Programmers organization
– Decision rights
• Systems analysts
– Accountability
• Information systems managers – Organization of information systems function
• Centralized, decentralized, and so on
9
Management Information Systems
Chapter 2: Global E-business and Collaboration
2.37 Copyright © 2014 Pearson Education, Inc.
10

Chapter 2 Presentation Handouts PDF

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Management Information Systems

Chapter 2: Global E-business and Collaboration

• Define and describe business processes and

2.2 Copyright © 2014 Pearson Education, Inc.

Management Information Systems Management Information Systems

Learning Objectives (cont.) TELUS Embraces Social Learning

• Business processes: • Examples of functional business processes

Management Information Systems Management Information Systems

The Order Fulfillment Process Business Processes and Information Systems

• Information technology enhances business

Types of Information Systems A Payroll TPS

• Transaction processing systems

– Allow managers to monitor status of operations card). System outputs include

and relations with external environment for management and employee

– Serve predefined, structured goals and decision FIGURE 2-2

Management Information Systems Management Information Systems

Types of Information Systems Types of Information Systems

• Business intelligence • Management information systems

Management Information Systems Management Information Systems

Types of Information Systems Voyage-Estimating Decision Support System

• Decision support systems

A1 need new img

Types of Information Systems Types of Information Systems

• Executive support systems • Enterprise applications

Management Information Systems Management Information Systems

Enterprise Application Architecture Types of Information Systems

Types of Information Systems Types of Information Systems

• Supply chain management (SCM) • Customer relationship management

Management Information Systems Management Information Systems

Types of Information Systems Types of Information Systems

• Knowledge management systems (KMS) • Also used to increase integration and

Types of Information Systems Systems for Collaboration and Teamwork

Management Information Systems Management Information Systems

• Social business • Business benefits of collaboration and

Requirements for Collaboration Systems for Collaboration and Teamwork

• Building a collaborative culture and business

Management Information Systems Management Information Systems

• Tools for collaboration and teamwork • Enterprise social networking software

• Two dimensions of collaboration technologies

Management Information Systems Management Information Systems

• Information systems department: • End users

2.37 Copyright © 2014 Pearson Education, Inc.

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