Management Information Systems: Managing the Digital Firm PDF

Management Information Systems: Managing the Digital Firm Sixteenth Edition Chapter 2 Global E-Business and Collaboration Copyright © 2020, 2018, 2016 Pearson...

Management Information Systems: Managing the Digital Firm Sixteenth Edition Chapter 2 Global E-Business and Collaboration Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Learning Objectives 2.1 What are business processes? How are they related to information systems? 2.2 How do systems serve the different management groups in a business, and how do systems that link the enterprise improve organizational performance? 2.3 Why are systems for collaboration and social business so important, and what technologies do they use? 2.4 What is the role of the information systems function in a business? Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Business Processes (1 of 2) 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 Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Business Processes (2 of 2) 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 Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Figure 2.1 The Order Fulfillment Process Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved How Information Technology Improves Business Processes Increasing efficiency of existing processes – Automating steps that were manual Enabling entirely new processes – Changing flow of information – Replacing sequential steps with parallel steps – Eliminating delays in decision making – Supporting new business models Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved 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 Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Figure 2.2 A Payroll TPS Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved 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 Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved 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 Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Figure 2.3 How Management Information Systems Obtain Their Data from the Organization’s TPS Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Figure 2.4 Sample MIS Report Consolidated Consumer Products Corporation Sales by Product and Sales Region: 2019 Product Product Sales Actual Planned Actual Code Description Region Sales Versus Planned 4469 Carpet Cleaner Northeast 4,066,700 4,800,000 0.85 South 3,778,112 3,750,000 1.01 Midwest 4,867,001 4,600,000 1.06 West 4,003,440 4,400,000 0.91 Blank Total Blank 16,715,253 17,550,000 0.95 5674 Room Northeast 3,676,700 3,900,000 0.94 Freshener South 5,608,112 4,700,000 1.19 Midwest 4,711,001 4,200,000 1.12 West 4,563,440 4,900,000 0.93 Blank Total Blank 18,559,253 17,700,000 1.05 Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved 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 TPS / MIS data Model driven DSS – Voyage-estimating systems Data driven DSS – Intrawest’s marketing analysis systems Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Figure 2.5 Voyage-Estimating Decision-Support System Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Executive Support Systems 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 D S S Example: Digital dashboard with real-time view of firm’s financial performance Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved 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 Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Figure 2.6 Enterprise Application Architecture Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved 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. Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Supply Chain Management (S CM) 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 Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Customer Relationship Management (C RM) 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 Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Knowledge Management Systems (K MS) 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 Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved 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 Web site Extranets: – Company Web sites accessible only to authorized vendors and suppliers – Facilitate collaboration Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved 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 Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved 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 Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved 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 Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved 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 Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Figure 2.7 Requirements for Collaboration Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved 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 Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved 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 (telepresence) – Cloud collaboration services (Google Drive, Google Docs, etc.) – Microsoft SharePoint and IB M Notes – Enterprise social networking tools Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved 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 Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Figure 2.8 The Time/Space Collaboration and Social Tool Matrix Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved The Information Systems Department Often headed by chief information officer (C IO) – Other senior positions include chief security officer (CS O), chief knowledge officer (CKO), chief privacy officer (C PO), chief data officer (CDO) Programmers Systems analysts Information systems managers End users Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved 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 Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved