ITM 100 Class 2 PDF

ITM 100 Class 2 Global E-business and Collaboration adapted from Kenneth C. Laudon, Jane P. Laudon, Management Information Systems: Managing the Digital Firm, 17th Edition ...

ITM 100 Class 2 Global E-business and Collaboration adapted from Kenneth C. Laudon, Jane P. Laudon, Management Information Systems: Managing the Digital Firm, 17th Edition  From Last Week ▪ Information systems (technology) help gain/sustain competitive advantage or survival by Improving operational excellence Enabling new products, services, and business models Enabling customer and supplier intimacy Improving decision making ▪ Information systems also help with Improving communication Improving collaboration Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 2  Learning Objectives 2.1 What are business processes? How are they related to information systems? 2.2 How do systems serve the different 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 © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems  Business Processes ▪ Business processes Flows of material, information, knowledge Sets of activities, steps May be tied to functional area or be cross-functional ▪ Sales and marketing ▪ Businesses Can be seen as collection of business processes ▪ Business processes may be assets or liabilities Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 4  Business Processes (Cont.) ▪ 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 © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 5  Example of a Cross-Functional Business Process The Order Fulfillment Process Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 6  How Information Technology Improves Business Processes ▪ Increasing efficiency of existing processes Automating steps that were manual ▪ Checking client’s credit, generating an invoice ▪ Enabling entirely new processes Example: Changing flow of information Replacing sequential steps with parallel steps Eliminating delays in decision making Supporting new business models Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 7  Types of Information Systems ▪ Transaction processing systems Serve operational managers and staff Perform and record daily routine transactions necessary to conduct business ▪ E.g., sales order entry, payroll, shipping Allow managers to monitor status of operations and relations with external environment Serve predefined, structured goals and decision making ▪ Imagine UPS without its package tracking system! Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 8  A Payroll TPS Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 9  Systems for Business Intelligence ▪ Business Intelligence (BI) A technology-driven process for analyzing data and presenting actionable information to help executives to make informed decisions ▪ Examples: Management information systems Decision support systems Executive support systems Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 10  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 Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 11  How Management Information Systems Obtain Their Data from the Organization’s TPS Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 12  Sample MIS Report Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 13  Decision Support Systems (DSS) ▪ Improved decision making ▪ 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 ▪ Types: Model driven DSS; e.g., Voyage-estimating systems Data driven DSS; e.g., Target marketing Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 14  Voyage-Estimating Decision-Support System Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 15  Executive Support Systems (ESS) ▪ 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 Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 16  ESS Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 17  Enterprise Applications ▪ Systems for linking the enterprise ▪ Span functional areas ▪ Execute business processes across the firm ▪ Include all levels of management ▪ Four major enterprise applications Enterprise Resource Planning (ERP) Supply Chain Management (SCM) Customer Relationship Management (CRM) Knowledge Management System (KMS) Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 18  Enterprise Application Architecture Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 19  Enterprise Systems ▪ Also known as enterprise resource planning (ERP) systems ▪ Collect data from different firm functions and store data in single central data repository ▪ Resolve problems of fragmented data ▪ Enable Coordination of daily activities Efficient response to customer orders (production, inventory) Decision making by managers about daily operations and longer-term planning Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 20  Supply Chain Management (SCM) Systems ▪ Manage firm’s relationships with suppliers ▪ Inter-organizational systems Automate the flows of information across organizational boundaries ▪ 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 Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 21  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 Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 22  Microsoft Dynamics CRM 2016 Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 23  Knowledge Management Systems (KMS) ▪ Support processes for capturing and applying knowledge and expertise How to create, produce, and deliver products and services ▪ Collect internal knowledge and experience within firm and make it available to employees ▪ Link to external sources of knowledge Include enterprise-wide systems for Managing documents, graphics and other digital knowledge objects Directories of employees with expertise Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 24  Exo Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 25  Intranets and Extranets ▪ Also used to increase integration and expedite the flow of information ▪ Intranets Internal company websites accessible only by employees ▪ Extranets Company websites accessible externally only to vendors and suppliers Often used to coordinate supply chain Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 26  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 © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 27  What Is Collaboration? ▪ Working with others to achieve shared and explicit goals ▪ Focus on task or mission accomplishment within or across organizations ▪ Teams have a specific mission that someone in the business assigned to them. ▪ Collaboration Short lived or long term Informal or formal (teams) Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 28  Collaboration is more important than ever ▪ Changing nature of work ▪ Growth of professional work ▪ Changing organization of the firm ▪ Changing scope of the firm ▪ Emphasis on innovation ▪ Changing culture of work and business Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 29  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 Driving the exchange of information without intervention from executives or others Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 30  Enterprise Social Networking Software Capabilities Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 31  Applications of Social Business Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 32  Business Benefits of Collaboration and Teamwork ▪ The more a business firm is “collaborative,” the more successful it will be. ▪ Benefits Productivity Quality Innovation Customer service Financial performance ▪ Profitability, sales, sales growth Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 33  The Time/Space Collaboration and Social Tool Matrix Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 34  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 IBM Notes Enterprise social networking tools ▪ PCs, smartphones and other smart devices Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 35  Checklist for Managers: Evaluating and Selecting Collaboration and Social Software Tools Six steps in evaluating software tools 1. Identify your firm’s collaboration challenges 2. Identify 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 Copyright © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 36  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 © 2018, 2017, 2016 Pearson Education, Inc. ITM 100 – Foundations of Management Information Systems 37