IS-102 Unit-2 (ch02).pdf

Chapter 2 Global E-business and Collaboration College of Computer Science & Engineering Department of Information Systems  Foundations of Information Systems Chapter 2: Global E-business and Collaboration...

Chapter 2 Global E-business and Collaboration College of Computer Science & Engineering Department of Information Systems  Foundations of 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 in a business and their relationship to each other. Explain how enterprise applications improve organizational performance. 2.2  Foundations of Information Systems Chapter 2: Global E-business and Collaboration Learning Objectives (cont.) Explain the importance of collaboration and teamwork in business and how they are supported by technology. Assess the role of the information systems function in a business. 2.3  Foundations of 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 assets or liabilities 2.4  Foundations of 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  Foundations of Information Systems Chapter 2: Global E-business and Collaboration The Order Fulfillment Process Fulfilling a customer order involves a complex set of steps that requires the close FIGURE 2-1 coordination of the sales, accounting, and manufacturing functions. 2.6  Foundations of 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 2.7  Foundations of Information Systems Chapter 2: Global E-business and Collaboration Types of Information Systems Transaction processing systems (TPS) – 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 – Serve predefined, structured goals and decision making 2.8  Foundations of 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 and employee paychecks. FIGURE 2-2 2.9  Foundations of 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 (MIS) – Decision Support Systems (DSS) – Executive Support Systems (ESS) 2.10  Foundations of Information Systems Chapter 2: Global E-business and Collaboration Types of Information Systems Management Information Systems (MIS) – Serve middle management – Provide reports on firm’s current performance, based on data from TPS – Provide answers to routine structured questions with predefined procedure for answering them – Typically have little analytic capability 2.11  Foundations of Information Systems Chapter 2: Global E-business and Collaboration Types of Information Systems Decision support systems (DSS) – Serve middle management – Support non-routine decision making Semi-structured questions – Example: What is the impact on production schedule if December sales doubled? – May use external information as well TPS / MIS data – Example: Voyage-estimating systems (DSS) 2.12  Foundations of Information Systems Chapter 2: Global E-business and Collaboration Voyage-Estimating Decision Support System This DSS operates on a powerful PC. It is used daily by managers who must develop FIGURE 2-5 bids on shipping contracts. 2.13  Foundations of Information Systems Chapter 2: Global E-business and Collaboration Types of Information Systems Executive support systems (ESS) – Support senior management – Address non-routine decisions Unstructured questions 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, accounts payable, cash flow, and inventory – Example: Soccer club receives an offer to buy your best player for a huge amount of money. The club executives need to decide if this is in the best interest of their organization 2.14  Foundations of Information Systems Chapter 2: Global E-business and Collaboration Types of Information Systems Enterprise applications – Also known as Enterprise Resource Planning (ERP) systems – Systems for linking the enterprise – Span functional areas – Execute business processes across firm – Include all levels of management 2.15  Foundations of Information Systems Chapter 2: Global E-business and Collaboration Types of Information Systems Enterprise applications (cont.) – Four major applications: Enterprise systems Supply chain systems Customer relationship systems Knowledge systems 2.16  Foundations of 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 2.17  Foundations of 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 2.18  Foundations of 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 2.19  Foundations of 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 2.20  Foundations of 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 2.21  Foundations of 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 2.22  Foundations of Information Systems Chapter 2: Global E-business and Collaboration Systems for Collaboration and Teamwork Social business – Use of social networking platforms, internal and external – Engage employees, customers, and suppliers – Goal is to deepen interactions and expedite information sharing – “Conversations” – Requires information transparency Driving the exchange of information without intervention from executives or others 2.23  Foundations of Information Systems Chapter 2: Global E-business and Collaboration Systems for Collaboration and Teamwork Business benefits of collaboration and teamwork – Investments in collaboration technology can bring organization improvements, returning high return on investment (ROI) – Benefits: Productivity Quality Innovation Customer service Financial performance – Profitability, sales, sales growth 2.24  Foundations of Information Systems Chapter 2: Global E-business and 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 – 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. 2.25  Foundations of Information Systems Chapter 2: Global E-business and Collaboration Systems for Collaboration and Teamwork Tools for collaboration and teamwork – E-mail and instant messaging Billions of messages flow everyday between employees, managers, suppliers, and customers – Social networking More than just a way to socialize among friends, these tools give corporations another way for users to share ideas and collaborate with each other 2.26  Foundations of Information Systems Chapter 2: Global E-business and Collaboration Systems for Collaboration and Teamwork Tools for collaboration and teamwork (cont.) – Wikis A website (web application) or database developed collaboratively by a community of users, allowing any user to add and edit content Gaining popularity as a way to share knowledge and ideas among collaborators Much easier to use and manage than more sophisticated knowledge systems – Virtual worlds Able to house online meetings, training sessions, and lounges, this type of tool is gaining popularity as a way to meet, interact, and exchange ideas (e.g. Second Life, World of Warcraft) 2.27  Foundations of Information Systems Chapter 2: Global E-business and Collaboration Systems for Collaboration and Teamwork Tools for collaboration and teamwork (cont.) – Collaboration and social business platforms Virtual meeting systems (telepresence) Google Apps/Google sites – Share documents, calendars, and/or audio and video files Online file-sharing services (Cyberlockers) Microsoft SharePoint Lotus Notes – Similar to Google Apps/Google Sites and MS-SharePoint but with added social networking capabilities to develop own applications and security Enterprise social networking tools – These tools, like Jive and Yammer, help connect an organization’s members through profiles, updates, and notifications but are restricted to internal corporate uses 2.28  Foundations of Information Systems Chapter 2: Global E-business and Collaboration Systems for Collaboration and Teamwork Enterprise social networking software capabilities – Profiles – Content sharing – Feeds and notifications – Groups and team workspaces – Tagging and social bookmarking – Permissions and privacy 2.29  Foundations of Information Systems Chapter 2: Global E-business and Collaboration Systems for Collaboration and Teamwork 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. 2.30  Foundations of Information Systems Chapter 2: Global E-business and Collaboration The Time/Space Collaboration Tool Matrix Collaboration technologies can be classified in terms of whether they support FIGURE 2-8 interactions at the same or different time or place or whether these interactions are remote or co-located. 2.31  Foundations of 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 2.32  Foundations of 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 Larger companies and organizations develop an IT governance: – Strategies and policies for using IT in the organization – Decision rights – Accountability – Organization of information systems function Centralized, decentralized, and so on 2.33