Essentials of Management Information Systems Chapter 2 PDF

Essentials of Management Information Systems Fourteenth Edition, Global Edition Chapter 2 Global E-business and Collaboration Copyright © 2020 Pearson Education...

Essentials of Management Information Systems Fourteenth Edition, Global Edition Chapter 2 Global E-business and Collaboration Copyright © 2020 Pearson Education Ltd.  Management Information Systems Chapter 2: Global E-business and Collaboration Learning Objectives Define and describe business processes and their relationship to information systems. 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 2.2  Management Information Systems Chapter 2: Global E-business and Collaboration Learning Objectives (cont.) Assess the role of the information systems function in a business. 2.3  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 Business processes may be 2.4 assets or liabilities  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 2.5  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. 2.6  Management Information Systems Chapter 2: Global E-business and Collaboration Types of Information Systems Transaction processing systems – Serve operational managers and staff – Perform and record daily routine transactions necessary to conduct business Examples: sales order entry, payroll, shipping – Allow managers to monitor status of operations and relations with external environment 2.7  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. FIGURE 2-2 2.8  Management Information Systems Chapter 2: Global E-business and Collaboration FreshDirect Video Case Links: – FreshDirect: Tour their warehouse https://youtu.be/R5X2_gNnhps – SAP Customer Success: Fresh Direct http://youtu.be/y0ZxTFZPUSg Questions – What are the transaction systems in FreshDirect? Which business processes do they support? – How does ERP help FreshDirect run its operations? – How does ERP makes it possible to improve customer service? 2.9  Management Information Systems Chapter 2: Global E-business and Collaboration Types of Information Systems Enterprise applications – Systems for linking the enterprise – Span functional areas – Run business processes across firm – Include all levels of management – Four major applications: Enterprise systems Supply chain management systems Customer relationship management systems Knowledge management systems 2.10  Management Information Systems Chapter 2: Global E-business and Collaboration Enterprise Application Architecture Enterprise applications automate processes that span multiple business functions and organizational levels and may extend outside the organization. FIGURE 2-6 2.11  Management Information Systems Chapter 2: Global E-business and Collaboration 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 – Enable: Coordination of daily activities Efficient response to customer orders (production, inventory) Help managers make decisions about daily operations and longer-term planning 2.12  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: 2.13 Right amount of products to  Management Information Systems Chapter 2: Global E-business and Collaboration Types of Information Systems Customer relationship management (CRM) 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 2.14  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 2.15  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, 2.16 employees, and businesses  Management Information Systems Chapter 2: Global E-business and Collaboration Types of Information Systems Also used to increase integration and expedite the flow of information – 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 2.17  Management Information Systems Chapter 2: Global E-business and Collaboration 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 2.18  Management Information Systems Chapter 2: Global E-business and Collaboration Types of Information Systems Business intelligence – Data and software tools for organizing and analyzing data – Used to help managers and users make improved decisions Business intelligence systems – Management information systems – Decision support systems – Executive support systems 2.19  Management Information Systems Chapter 2: Global E-business and Collaboration Types of Information Systems Management information systems – Serve middle management – Provide reports on firm’s current performance, based on data from TPS – Provide answers to routine questions with predefined procedure for answering them 2.20  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. 2.21  Management Information Systems Chapter 2: Global E-business and Collaboration Sample MIS Report FIGURE 2-4 This report, showing summarized annual sales data, was produced by the MIS in Figure 2-3. 2.22  Management Information Systems Chapter 2: Global E-business and Collaboration Types of Information Systems 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 2.23  Management Information Systems Chapter 2: Global E-business and Collaboration Voyage-Estimating Decision Support System FIGURE 2-5 This DSS operates on a powerful PC. It is used daily by managers who must develop bids on shipping contracts. 2.24  Management Information Systems Chapter 2: Global E-business and Collaboration Types of Information Systems Executive support systems – Support senior management – Address non-routine decisions Requiring judgment, evaluation, and insight – Incorporate data about external events (e.g. new tax laws or competitors) as well as summarized information from internal MIS and DSS – Example: Digital dashboard with real-time view of firm’s financial performance: working capital, accounts receivable, 2.25 accounts payable, cash flow, and inventory  Management Information Systems Chapter 2: Global E-business and Collaboration Hyperion Business Performance Management Video Watch the Hyperion BPM video Questions – How does Hyperion help the CEO to achieve his strategic goals? – How does Hyperion help the marketing & sales executive? – How does Hyperion support the COO? – Identify MIS, DSS, ESS systems in the video when answer questions. 2.26  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 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 Information systems managers 2.27  Management Information Systems Chapter 2: Global E-business and Collaboration The Information Systems Function in Business End users – Representatives of other departments for whom applications are developed – Increasing role in system design, development IT Governance: – Strategies and policies for using IT in the organization – Decision rights – Accountability – Organization of information systems 2.28 function