Podcast
Questions and Answers
What is one of the primary roles of information technology in business processes?
What is one of the primary roles of information technology in business processes?
- It eliminates the need for automated transactions.
- It automates manual steps to enhance efficiency. (correct)
- It increases the number of sequential steps in processes.
- It complicates the flow of information.
Which of the following is NOT a characteristic of business processes?
Which of the following is NOT a characteristic of business processes?
- Flows of material, information, knowledge
- Sets of activities and steps
- May be cross-functional
- Strictly limited to one functional area (correct)
Which example illustrates a transaction processing system (TPS)?
Which example illustrates a transaction processing system (TPS)?
- Processing payroll for employees (correct)
- Developing a marketing strategy
- Generating monthly financial reports
- Conducting market research for a new product
How does information technology support new business models?
How does information technology support new business models?
What decision-making feature is associated with transaction processing systems?
What decision-making feature is associated with transaction processing systems?
What is the primary goal of the systems that help suppliers, purchasing firms, and logistics companies?
What is the primary goal of the systems that help suppliers, purchasing firms, and logistics companies?
What are customer relationship management (CRM) systems designed to optimize?
What are customer relationship management (CRM) systems designed to optimize?
How do knowledge management systems (KMS) assist organizations?
How do knowledge management systems (KMS) assist organizations?
Which of the following is NOT a benefit of using CRM systems?
Which of the following is NOT a benefit of using CRM systems?
What role do systems for sharing information play in supply chain management?
What role do systems for sharing information play in supply chain management?
What is the primary purpose of an intranet within a company?
What is the primary purpose of an intranet within a company?
How does e-commerce differentiate itself from e-business?
How does e-commerce differentiate itself from e-business?
What is a key benefit of using an extranet?
What is a key benefit of using an extranet?
What does collaboration primarily focus on in a business context?
What does collaboration primarily focus on in a business context?
Why is teamwork considered more important today than in previous eras?
Why is teamwork considered more important today than in previous eras?
Which statement accurately describes e-government?
Which statement accurately describes e-government?
What role do enterprise-wide systems play in knowledge management?
What role do enterprise-wide systems play in knowledge management?
How are teams typically characterized within a business?
How are teams typically characterized within a business?
What is the primary function of Business Intelligence tools?
What is the primary function of Business Intelligence tools?
What type of system focuses on nonroutine decision making and incorporates both internal and external data?
What type of system focuses on nonroutine decision making and incorporates both internal and external data?
Which system provides reports based on current performance derived from transactional data?
Which system provides reports based on current performance derived from transactional data?
What is a primary benefit of Enterprise Resource Planning (ERP) systems?
What is a primary benefit of Enterprise Resource Planning (ERP) systems?
What is a characteristic of Executive Support Systems (ESS)?
What is a characteristic of Executive Support Systems (ESS)?
How do supply chain management (SCM) systems primarily function?
How do supply chain management (SCM) systems primarily function?
Which of the following is NOT a benefit of using Enterprise Resource Planning (ERP) systems?
Which of the following is NOT a benefit of using Enterprise Resource Planning (ERP) systems?
Which type of decision-making does a Model-driven Decision-Support System (DSS) typically target?
Which type of decision-making does a Model-driven Decision-Support System (DSS) typically target?
What is a significant characteristic of professional jobs today compared to the industrial age?
What is a significant characteristic of professional jobs today compared to the industrial age?
How has the organization of work changed in contemporary firms?
How has the organization of work changed in contemporary firms?
Which of the following best describes the impact of social business?
Which of the following best describes the impact of social business?
In a traditional command and control firm, what was the typical communication structure?
In a traditional command and control firm, what was the typical communication structure?
What underpins the effectiveness of diverse teams in a collaborative business culture?
What underpins the effectiveness of diverse teams in a collaborative business culture?
What technological tools facilitate collaboration in modern workplaces?
What technological tools facilitate collaboration in modern workplaces?
Which of the following describes a key step in evaluating software tools for collaboration?
Which of the following describes a key step in evaluating software tools for collaboration?
What is the primary aim of social networking platforms in a business context?
What is the primary aim of social networking platforms in a business context?
What kind of management style does a collaborative business culture promote?
What kind of management style does a collaborative business culture promote?
What change has occurred regarding the scope of modern firms?
What change has occurred regarding the scope of modern firms?
Study Notes
Business Processes
- Definition: The way work is organized, coordinated, and focused to produce a valuable product or service.
- Elements: Flows of material, information, and knowledge.
- Structure: Sets of activities and steps.
- Scope: Can be tied to a specific functional area or be cross-functional.
Information Technology and Business Processes
- Efficiency Enhancement: Automates manual steps, improving existing processes.
- Examples: Checking client credit, generating invoices.
- Process Improvement: Changes information flow, replaces sequential steps with parallel steps, eliminates decision-making delays, and supports new business models.
Transaction Processing Systems (TPS)
- Purpose: Performs and records routine transactions necessary for business operations.
- Examples: Sales order entry, hotel reservations, payroll, employee record keeping, and shipping.
- Management Benefits: Allows monitoring of operational status and external relationships.
- Decision Making: Serves predefined, structured goals and decision-making.
- Example: Credit approval based on predefined criteria, requiring only a check against those criteria.
Business Intelligence and Management Information Systems (MIS)
- Purpose: Provides data and tools for organizing, analyzing, and accessing data to support informed decision-making.
- Focus: Serves middle management.
- Functionality: Reports on current performance, answers routine questions with predefined procedures, and has limited analytic capability.
Decision Support Systems (DSS)
- Purpose: Helps address unique, rapidly changing problems with undefined solutions.
- Focus: Serves middle management.
- Functionality: Supports non-routine decision-making, utilizes external information, and leverages data from TPS/MIS.
- Types:
- Model-driven DSS: Examples include voyage-estimating systems.
- Data-driven DSS: Examples include target marketing systems.
Executive Support Systems (ESS)
- Purpose: Supports senior management in addressing non-routine decisions requiring judgment, evaluation, and insight where no standard solution exists.
- Functionality: Provides information through portals with integrated and personalized business content.
- Sources of Data: Incorporates both internal MIS and DSS data, as well as external information like new tax laws or competitor data.
- Example: Digital dashboard with real-time financial performance view.
Enterprise Applications
- Scope: Systems that span functional areas, focus on executing business processes across the firm, and involve all levels of management.
- Enterprise Resource Planning (ERP): Integrates business processes in manufacturing, finance, sales, and human resources into a single software system.
- Benefits: Consolidates fragmented information into a central data repository, enabling coordinated daily activities, efficient customer order responses, and informed decision-making by managers.
Supply Chain Management (SCM) Systems
- Purpose: Manages relationships with suppliers.
- Functionality: Facilitates information sharing among suppliers, purchasing firms, distributors, and logistics companies regarding orders, production, inventory, and delivery.
- Objective: To optimize product delivery from source to consumption by minimizing time and cost.
Customer Relationship Management (CRM) Systems
- Purpose: Manages relationships with customers.
- Functionality: Coordinates business processes related to customer interactions in sales, marketing, and service.
- Benefits: Identifies and attracts profitable customers, enhances existing customer service, and increases sales.
Knowledge Management Systems (KMS)
- Purpose: Manages processes for capturing and applying knowledge and expertise.
- Functionality: Collects relevant knowledge and experience within the organization and makes it accessible for improving business processes and decision-making.
- Scope: Includes enterprise-wide systems for managing documents, graphics, employee expertise directories, and external knowledge sources.
Intranets and Extranets
- Intranet: Internal company website accessible only to employees.
- Extranet: Company website accessible to authorized vendors and suppliers, used for coordinating supply chain activities.
Electronic Business (E-Business)
- Definition: Use of digital technology and the Internet to execute major business processes within the enterprise.
- Scope: Includes internal management and coordination with suppliers and business partners.
Electronic Commerce (E-Commerce)
- Definition: Buying and selling goods and services over the Internet.
- Scope: Encompasses activities supporting market transactions, such as advertising, marketing, customer support, security, delivery, and payment.
E-Government
- Definition: Application of Internet and networking technologies to digitally enable government interactions with citizens, businesses, and other government entities.
Collaboration and Teamwork
- Definition: Working together towards shared and explicit goals, typically within a business or other organization.
- Duration: Can be short-term or long-term, depending on the task and participant relationships.
- Team Structure: Groups with specific missions assigned by the business, requiring members to collaborate on tasks and achieve collective goals.
- Importance: Driven by changing nature of work, growth of professional work, changing organizational structure, expanding firm scope, emphasis on innovation, and shifting work culture.
Social Business
- Definition: Use of social networking platforms by businesses to engage employees, customers, and suppliers.
- Goal: Deepen interactions and expedite information sharing.
- Benefits: Strengthens bonds, increases emotional involvement, drives operational efficiency, spurs innovation, and accelerates decision-making.
- Requirement: Information transparency for open sharing of opinions and facts.
Collaborative Business Culture
- Key Traits: Collaboration and teamwork are vital to the organization.
- Implementation: Policies, products, designs, processes, and systems are developed by teams at all levels.
- Rewards: Teams are rewarded for collective performance.
- Middle Management Role: Builds teams, coordinates their work, and monitors their performance.
Tools and Technologies for Collaboration and Social Business
- Communication: Email, instant messaging.
- Knowledge Sharing: Wikis.
- Virtual Environments: Virtual worlds, virtual meeting systems (including videoconferencing with telepresence technology), cloud collaboration services (Google Drive, Google Docs, etc.).
- Platform Specific: Microsoft SharePoint, IBM Notes, and enterprise social networking tools.
Evaluating Software Tools
- Step 1: Identify your firm's collaboration challenges.
- Step 2: Identify available solutions.
- Step 3: Analyze cost and benefits of available products.
- Step 4: Evaluate security risks.
- Step 5: Consult users for implementation and training issues.
- Step 6: Evaluate product vendors.
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