Management Information Systems S06 Global E-Business and Collaboration PDF

Management Information systems – S06 Global e-business and collaboration 1  Introduction Types of information systems Systems for linking enterprise e-business, e-commerce, e-governance Collaboration Syste...

Management Information systems – S06 Global e-business and collaboration 1  Introduction Types of information systems Systems for linking enterprise e-business, e-commerce, e-governance Collaboration Systems and tools for collaboration IS department and functions 2 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 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  Types of Information Systems Transaction Process Systems(TPS) – For operational managers. e.g Payroll transaction processing system Business Intelligence Systems(BI) – For middle level managers and will help in decision making – It is normally in the form of reports and dashboards – TPS supply summarized date to the BIS or MIS. – E.g. Informatica Decision Support Systems(DSS) – Support non-routine decision making – DSS bring in information from external sources such as current stock prices or product prices of competitors – Systems use a variety of models to analyze data. Executive Support Systems(ESS) – For senior level managers who use these along with BI – Reports and dash boards in form of charts and graphs – They are reviewed periodically( weekly ,monthly, quarterly etc.) 5 GLOBAL e-BUSINESS AND COLLABORATION: TYPES OF INFORAMTION SYSTEMS: ❑There are different interests, specialties and levels in an organizations, there are different kinds of systems. ❑No single systems can provide all the information an organization needs. TRANSACTION PROCESSING SYSTEM Employee Data Employee /File Database Operational mangers need systems that keep track of the elementary activities and transactions of the organizations such as sales, receipts, cash deposits, payroll, credit decision and the flow of material in the factory. Transaction processing system TPS provide all this. A TPS is a computerized systems that performs and records the daily routine transactions necessary to conduct business such as sales order entry, hotel reservation, payroll , employee record keeping and shipping. The principle purpose of this system answer routing questions: What is the stack as on today? What about Mr X. Payment. What happen to Mr.Y. To answer this kind of questions information's generally must be easily available, current and accurate. Fig shows this model in detail. Managers need TPS to monitor the status of internal operations and the firms related with the external environment. DECSISON SUPPORT SYSTEM: Middle management needs systems to help with monitoring, controlling, decision making and administrative activities. DSS-Decision Support system support more non routine decision making. They focus an problems that are unique and rapidly changing, solution may not be fully predefined in advance. They try to answer the questions: What would be the impact an production schedules if we were to double sales in the month of December? What would happen to our return on investment if a factory schedule were delayed for six month? DSS use internal information form TPS and MIS they often bring in information from external source such as current stack price or product price. Fig shows this model in detail. A DSS system shown in the fig calculates financial and technical details. Financial systems are – Ship cost, fuel, labor, capital rates for various types of cargo and port expenses. Technical Details are- Ship Cargo capacity, speed, port distance, Fuel and water consumption and loading patterns. ENTERPRISE SYSTEM: Enterprise system also called ERP system to integrate BP in manufacturing and production, finance and accounting, sales, and marketing and HR into a single S/w systems. Information that was previously fragmented in many different systems stored in a single comprehensive data repository where it can be used by many different parts of the business. For example customer place order …. E-BUSINESS SYSTEMS: The system and technology are transforming firms relationship with customers, employees, suppliers and logistic partners into digital relationship using N/w and internet. EB or e-Business refers to the use of digital technology and the internet to execute the major business process in the enterprise. E-Commerce is the part of e-Business that deals with the buying and selling of good and services over the internet. E-Govt. refers to the application of the internet and N/w technologies to digitally enable govt. and public sector agencies relationship with cities, business and other arms of government. COLLABORATION SYSTEM AND TOOLS: Collaboration is working with others to achieve shared and explicit goals. Collaboration can be short-lived ,listing a few minute or larger team depending on the nature of the task and the relationship among the participants. It can be one-to-one or one-to-many. Team have a specific mission that some one in the business assigned to them. Collaboration and team work as more important today for a variety of reasons: ❖ Changing nature of the work ❖ Changing organization of the firm.-Change to hierarchical to team. ❖ Changing the scope of the fir-Change in single location to multiple location. ❖ Changing culture of work and business-Most collaboration produce faster output than individual work nature. Collaboration Tools: Currently there are hundreds of tools designed to deal the fact that in order to succeed the jobs. They are: ❖ E-Mail and instant massaging (IM) ❖ Social Network ❖ Wikis- Edit text and graphic content with out knowledge eg. Wikipedia. ❖ Virtual worlds: eg. Avatars. IBM and INSEAD to conduct online meeting, training session. Internet –Based Collaboration environment.-Multifunction platform perform job in different location. Mostly used for audio conferencing , Video conferencing. ❖ Virtual meeting system ❖ Google Apps/ Google sites. INFORMATION SYSTEM FUCTIONS: Business needs Is to operate today(S/w, H/w, N/w, data storage).Who is responsible for making this properly, and are up- to- date. The information systems Department is the formal organization unit responsible for IT services. The information Department: It consists of Programmers System Analyst. Project Leader. Information system Manger. In many company ISD is headed by Chief Information Officer –CIO Chief security Officer-CSO. Chief knowledge officer- CKO Systems for Different Management Groups (1 of 2) 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 – Serve predefined, structured goals and decision making  Transaction Processing System A transaction processing system collects and stores data about transactions and sometimes controls decisions made as part of a transaction. The transaction is the activity that changes stored data, examples of such an activity would be using a credit card, making a reservation or making a cash withdrawal at an ATM. 16 Figure 2.2 A Payroll TPS Transaction Processing System 18 Systems for Different Management Groups (2 of 2) Systems for business intelligence – Data and software tools for organizing and analyzing data – Used to help managers and users make improved decisions Management information systems Decision support systems Executive support 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 Typically have little analytic capability Figure 2.3 How Management Information Systems Obtain Their Data from the Organization’s TPS  Figure 2.4 Sample MIS Report Consolidated Consumer Products Corporation Sales by Product and Sales Region: 2020  Decision Support Systems 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 as TPS / MIS data Model driven DSS – Voyage-estimating systems Data driven DSS – Intrawest’s marketing analysis systems Figure 2.5 Voyage-Estimating Decision-Support System Business Intelligence System ETL - Extract, Transform and Load 25  Decision Support System A decision support system (DSS) is a computer application that analyzes business data and presents it so that users can make business decisions more easily. 26  Executive Support System Executive Support System (ESS) is a reporting tool (software) that allows you to turn your organization's data into useful summarized reports. An executive information system (EIS), also known as an executive support system (ESS), is a type of management information system that facilitates and supports senior executive information and decision-making needs. It provides easy access to internal and external information relevant to organizational goals. 27  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  Enterprise Applications Systems for linking the enterprise Span functional areas Execute business processes across the firm Include all levels of management Four major applications – Enterprise systems – Supply chain management systems – Customer relationship management systems – Knowledge management systems  Systems for Linking Enterprise Specific to that organization ERP( Enterprise Resource Planning) systems Supply Chain Management (SCM) Systems – Inter organisational system Customer Relationship Management(CRM) Systems Used to optimise – Revenue and profits – Customer satisfaction – Customer retention – Customer expansion 30 Figure 2.6 Enterprise Application Architecture  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  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 inter-organizational system: Automating flow of information across organizational boundaries Supply Chain Management (SCM) 34  Customer Relationship Management (CRM) Systems Help manage relationship with customers Coordinate business processes that deal with customers in sales, marketing, and customer service Goals: – Optimize revenue – Improve customer satisfaction – Increase customer retention – Identify and retain most profitable customers – Increase sales  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  Systems for Linking Enterprise(contd.) Knowledge Management (KM) Systems – Knowledge acquisition – Knowledge retention – Knowledge dispersion/distribution – Proficiency building – Continual improvement – Customised knowledge building Intranet and Extranet for information sharing 37  Intranets and Extranets 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 website Extranets: – Company websites accessible only to authorized vendors and suppliers – Facilitate collaboration  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  Collaboration In simple term it is team work It is working with others to achieve shared goals or/and explicit goals Ranging from “one to one” to “many to many” It is dovetailed in all processes The extent and magnitude varies depending on task Could be internal to organisation or external or mix of both 40  What is Collaboration? 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  What is 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  Business Benefits of Collaboration and Teamwork Investment in collaboration technology can return large rewards, especially in sales and marketing, research and development Productivity: Sharing knowledge and resolving problems 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  Business benefits Improved productivity Improved Quality Innovation Improved customer service Improved customer base 44  Requirements for effective collaboration Collaboration capability – Open culture – Decentralized structure – Breadth of collaboration Collaboration Technology – For implementation and operations – For strategic planning Other extreme of good collaboration is “command and control” 45 Figure 2.7 Requirements for Collaboration  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 Tools and Technology for Collaboration e-mail Instant messaging Social network Blogs WiKi Virtual worlds 48  Tools and Technologies for Collaboration and Social Business E-mail and instant messaging (IM) Wikis Virtual worlds Collaboration and social business platforms – Virtual meeting systems: videoconferencing, telepresence) – Cloud collaboration services (Google Drive, Google Docs, etc.) – Microsoft SharePoint and IBM Notes – Enterprise social networking tools  Internet based collaboration environment Virtual meeting systems(skype) Google apps and sites Microsoft sharepoint Lotus notes 50  Checklist for Managers: Evaluating and Selecting Collaboration and Social Software Tools Time/space matrix Six steps in evaluating software tools – Identify your firm’s collaboration challenges – Identify 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  Figure 2.8 The Time/Space Collaboration and Social Tool Matrix  Time Space Matrix Same time Different time Same Team rooms, Place Face to face displays etc. Different Audio or video Asynchronous place conferencing conference groups 53  Evaluation of Collaboration Tools Requirement analysis Cost factor Feasibility analysis Time space matrix study Software requirement analysis wrt cost effectiveness Security considerations 54  Information Systems Department Also called IT department in some forms – Programmers – System analysts – Information system managers – Chief information officer – Chief security( information) officer – Chief Privacy officer – Chief knowledge officer There is no fixed organisation structure for IS. 55  The Information Systems Department Often headed by chief information officer (CIO) – Other senior positions include chief security officer (CS O), chief knowledge officer (CKO), chief privacy officer (CP O), chief data officer (CDO) Programmers Systems analysts Information systems managers End users  Organizing the Information Systems Function IT governance – Strategies and policies for using IT in the organization – Decision rights – Accountability – Organization of information systems function Centralized, decentralized, and so on  Summary Types of information systems Systems for linking enterprise e-business, e-commerce, e-governance Collaboration Systems and tools for collaboration IS department and functions 58