ISTP TU02 - Global E-business and Collaboration PDF

INFORMATION SYSTEMS: THEORY & PRACTICE TU2: Global E-business and Collaboration Prof. Dr. Paul Drews Teaching Unit 2 – Learning Objectives ▪ What are business processes? How are they related to information systems? ▪ How do systems serve the different management groups in a business, and ho...

INFORMATION SYSTEMS: THEORY & PRACTICE TU2: Global E-business and Collaboration Prof. Dr. Paul Drews Teaching Unit 2 – Learning Objectives ▪ What are business processes? How are they related to information systems? ▪ How do systems serve the different management groups in a business, and how do systems that link the enterprise improve organizational performance? ▪ Why are systems for collaboration and social business so important and what technologies do they use? ▪ What is the role of the information systems function in a business? 2 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Chapter 2: Opening Case Study 3 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Enterprise Social Networking Transforms Sharp Corporation into a More Innovative Connected Organization (1 of 2) ▪ Problem ▪ Hierarchical top-down processes ▪ New competitors ▪ Lack of collaboration and idea sharing ▪ Solutions ▪ Develop knowledge-sharing strategy and goals ▪ Redesign knowledge-sharing and collaboration processes ▪ Change organizational culture ▪ Implement Microsoft Yammer collaboration software 4 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Enterprise Social Networking Transforms Sharp Corporation into a More Innovative Connected Organization (2 of 2) ▪ Use of new information systems to improve performance and remain competitive ▪ Demonstrates importance of teamwork and collaboration for innovation and profit growth ▪ Illustrates importance of organizational culture and business processes for knowledge dissemination 5 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Agenda 1. Business processes and information systems 2. Information systems for different management groups 3. Systems for collaboration and social business 4. Role of the information systems department 6 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Business Processes and Information Systems Business processes ▪ Flows of material, information, knowledge ▪ Logically related set of tasks that define how specific business tasks are performed ▪ 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 7 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Source: unicorn-solutions.com/img/UnicornWorkflow-Design.png Business Processes and Information Systems Examples of functional business processes Manufacturing and Assembling the production product Identifying Sales and marketing customers Finance and Creating financial accounting statements Human resources Hiring employees 8 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS The Order Fulfillment Process Fulfilling a customer order involves a complex set of steps that requires the close coordination of the sales, accounting, and manufacturing functions. FIGURE 2-1 9 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Process Categories (Dumas et al. 2018) Management Processes Define Vision Develop Strategy Implement Manage Risk Strategy Core Processes Manage Procure Procure Market Deliver Customer Materials Products Products Products Service Support Processes Manage Manage Personnel Information Manage Assets 10 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Process Architecture (Dumas et al. 2018) Generic Process Architecture British Telecom Model structure, methodology and Meta modelling standards Level 1 Level Defines business activities Operations Levels Process Levels Business Levels Level A Distinguishes operational customer Process Business Activities oriented processes from management and strategic process Landscape Shows groups of related business Level B Logical (incl. Value Chains) Process Groupings Levels functions and standard end-to-end processes (e.g. Service Streams) Level C Core processes that combine together to Level 2 Core Processes deliver Service Streams and other end- to-end processes Business Processes Level D Decomposition of core processes into (e.g. BPMN) Business Process Flows detailed ‘success model’ business process flows Detailed operational process flows Level E Level 3+ Operational Process Flows Physical with error conditions and product and geographical variants (where Levels required). Sub-processes and Tasks Level F Further decomposition of detailed (e.g. BPMN) Detailed Process Flows operational where required © British Telecommunications (2005) 11 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Process model vs process instances: The tokens game (Dumas et al. 2018) Order #1 Order #2 Order #3 Reject order Items not in Order stock rejected Check stock availability Purchase order Items in received stock Confirm Emit Archive Ship goods order invoice order Order fulfilled 12 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS 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 13 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Agenda 1. Business processes and information systems 2. Information systems for different management groups 3. Systems for collaboration and social business 4. Role of the information systems department 14 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS 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 15 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Source: csbapp.uncw.edu/mis213/10/images/10-1-1.jpg Transaction processing systems (TPS) / Example Amazon Bildquelle: https://www.hersfelder-zeitung.de/bad-hersfeld/amazon-eichhof-13-millionen-fuer-die-zukunft-90040579.html 16 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS 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 17 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Types of Information Systems – Business Intelligence Systems (BI) ▪ Systems for business intelligence ▪ Data and software tools for organizing and analyzing data ▪ Used to help managers and users make improved decisions ▪ Types of business intelligence systems ▪ Management information systems ▪ Decision support systems ▪ Executive support systems 18 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS 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 questions with predefined procedure for answering them ▪ Typically have little analytic capability 19 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS How MIS Obtain Their Data from the Organization’s TPS 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 2-3 20 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Sample MIS Report Consolidated Consumer Products Corporation Sales by Product and Sales Region: 2020 Sample MIS Report FIGURE 2-4 21 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Types of Information Systems – Decision support systems (DSS) ▪ Serve middle management ▪ Support nonroutine 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 ▪ Example: Voyage-estimating systems ▪ Data driven DSS ▪ Example: Intrawest’s marketing analysis systems 22 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Voyage-Estimating Decision Support System This DSS operates on a powerful PC. It is used daily by managers who must develop bids on shipping contracts. FIGURE 2-5 23 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Types of Information Systems – Executive support systems (ESS) ▪ Support senior management ▪ Address nonroutine 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, accounts payable, cash flow, and inventory 24 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS A Digital Dashboard as an ESS example 25 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Tool Example: Microsoft Power BI 26 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Source: powerbi.microsoft.com Types of Information Systems – Enterprise Applications ▪ Systems for linking the enterprise ▪ Span functional areas ▪ Execute business processes across firm ▪ Include all levels of management ▪ Four major applications: ▪ Enterprise systems / Enterprise resource planning systems (ERP) ▪ Supply chain management systems ▪ Customer relationship management systems ▪ Knowledge management systems 27 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Enterprise Application Architecture Enterprise applications automate processes that span multiple business functions and organizational levels and may extend outside the organization. FIGURE 2-6 28 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Types of Information Systems – Enterprise systems ▪ Also called enterprise resource planning (ERP) 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. 29 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Types of Information Systems – Supply chain management (SCM) 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 Figure 9.3 30 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Types of Information Systems – Customer relationship management systems (CRM) ▪ Help manage relationship with customers. ▪ Coordinate business processes that deal with customers in sales, marketing, and customer service ▪ Goals: ▪ Optimize revenue Service Marketing ▪ Improve customer satisfaction ▪ Increase customer retention ▪ Identify and retain most profitable customers Sales ▪ Increase sales 31 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Types of Information Systems – Knowledge management systems (KMS) ▪ 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 32 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Source: pbs.twimg.com/media/CnpRdtmXYAAMOr2.jpg Types of Information Systems – Intranets ▪ 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 Web site 33 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Source: blog.capterra.com/wp-content/uploads/2014/09/bigstock-Database-Laptops-Manikins-45617329-720x508.jpg Example: The Leuphana intranet 34 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Types of Information Systems – Extranets ▪ Extranets: ▪ Company Web sites accessible only to authorized vendors and suppliers ▪ Facilitate collaboration 35 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Source: en.vivaintra.com/uploads/blog/max/phpxjSuyh_55426d8fa7fc9.png Example: KN Login – Extranet of Kühne + Nagel & App 36 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Source: kuehne-nagel.com Types of Information Systems: 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 37 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Agenda 1. Business processes and information systems 2. Information systems for different management groups 3. Systems for collaboration and social business 4. Role of the information systems department 38 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Social Network for Enterprises: Yammer 39 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Systems for Collaboration and Social Business ▪ Collaboration: ▪ Short lived or long term ▪ Informal or formal (teams) ▪ Growing importance of collaboration: ▪ Changing nature of work ▪ Growth of professional work — “interaction jobs” ▪ Changing organization of the firm ▪ Changing scope of the firm ▪ Emphasis on innovation ▪ Changing culture of work 40 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Source: aiim.org/~/media/AIIM_Real_Images/600x400/Collaboration_lightbulb-illustration.jpg Social Business Applications (Table 2.2) 41 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Systems for Collaboration and Social Business Social business ▪ Use of social networking platforms, internal and external to engage employees, customers, and suppliers ▪ Aims to deepen interactions and expedite information sharing ▪ “Conversations” to strengthen bonds with customers ▪ Requires information transparency ▪ Seen as way to drive operational efficiency, spur innovation, accelerate decision making 42 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Systems for Collaboration and Social Business Business benefits of collaboration and teamwork ▪ Investment in collaboration technology can return large rewards, especially in sales and marketing, research and development ▪ Benefits: ▪ 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 Source: nextpoint.com/blog/wp-content/uploads/2014/09/collaboration_litigation1.png 43 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Requirements for Collaboration Successful collaboration requires an appropriate organizational structure and culture, along with appropriate collaboration technology. FIGURE 2-7 44 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Systems for Collaboration and Social Business 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. 45 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Systems for Collaboration and Social Business Tools for collaboration and teamwork ▪ E-mail and instant messaging ▪ Wikis ▪ Virtual worlds ▪ Collaboration and social business platforms ▪ Virtual meeting systems (telepresence) ▪ Cloud collaboration services (Google Drive, Google Docs, etc.) ▪ Microsoft SharePoint ▪ IBM Notes ▪ Enterprise social networking tools 46 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Systems for Collaboration and Social Business Enterprise social networking software capabilities ▪ Profiles ▪ Groups and team workspaces ▪ Content sharing ▪ Tagging and social bookmarking ▪ Feeds and notifications ▪ Permissions and privacy 47 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Source: tibco.com/blog/wp-content/uploads/2013/11/SocialPaths-001.jpg Checklist for Managers: Evaluating and Selecting Collaboration and Social Software Tools Time/space matrix: Two dimensions of collaboration technologies ▪ Space (or location)—remote or co-located ▪ Time—synchronous or asynchronous Six steps in evaluating software 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. ▪ Evaluate product vendors. 48 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS The Time/Space Collaboration Tool Matrix 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. FIGURE 2-8 49 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Agenda 1. Business processes and information systems 2. Information systems for different management groups 3. Systems for collaboration and social business 4. Role of the information systems department 50 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS The Information Systems Department 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), chief data officer (CDO) ▪ Programmers ▪ Systems analysts ▪ Information systems managers ▪ End users 51 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS The Information Systems Department 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 function ▪ Centralized, decentralized, and so on 52 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS Tasks for this week T2-1. Please actively read chapter 2 - including the case studies. For this week, I uploaded a PDF of chapter 2 (see folder "Downloads" below). Please make sure for the upcoming weeks that you have access to a printed copy or the eBook of the textbook. (~2 hours) T2-2. Discussion Question 2-7 (time/space collaboration and social tool matrix) Use the time/space collaboration and social tool matrix to classify the collaboration and social technologies used in the opening case of chapter 2. You do not need to upload or share your results. We will discuss it in class. T2-3. A social network for Leuphana? Leuphana offers several tools for supporting teaching, research and administration. So far, Leuphana does not offer an “enterprise” social network. Please post your answers to the following questions in the forum “A social network for Leuphana?” as a single post: (15-30 minutes) T2-3.1: Which tools are offered by Leuphana for supporting communication and collaboration? T2-3.2: Which additional social network features could be offered by Leuphana? How could they support teaching and administration? T2-3.3: Do you see any problems or risks if Leuphana offers an internal social networking platform? T2-3.4: What is your recommendation for Leuphana regarding the implementation of a social networking tool? 53 | ISTP | TU 2 | GLOBAL E-BUSINESS AND COLLABORATION | PROF. DR. PAUL DREWS CONTACT PROF. DR. PAUL DREWS Institute of Information Systems Universitätsallee 1 | 21335 Lüneburg Fon 04131.677-1993 | [email protected] www.leuphana.de/institute/iis/personen/paul-drews