Management Information Systems: Managing the Digital Firm PDF

Management Information Systems: Managing the Digital Firm Fifteenth edition Chapter 2 Global E-business and Collaboration Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved Learning Objec...

Management Information Systems: Managing the Digital Firm Fifteenth edition Chapter 2 Global E-business and Collaboration Copyright © 2018, 2017, 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 © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved Business Processes 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. All Rights Reserved Figure 2.1: The Order Fulfillment Process Copyright © 2018, 2017, 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 © 2018, 2017, 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 © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved Figure 2.2: A Payroll TPS Copyright © 2018, 2017, 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 © 2018, 2017, 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 © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved Figure 2.3: How Management Information Systems Obtain Their Data from the Organization’s TPS Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved Figure 2.4: Sample MIS Report Copyright © 2018, 2017, 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 © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved Figure 2.5: Voyage-Estimating Decision- Support System Copyright © 2018, 2017, 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 DSS Example: Digital dashboard with real-time view of firm’s financial performance Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved Enterprise Applications Four major applications – Enterprise systems – Supply chain management systems – Customer relationship management systems – Knowledge management systems Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved Enterprise 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. All Rights Reserved 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 Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 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. All Rights Reserved 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 Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 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. 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 © 2018, 2017, 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 © 2018, 2017, 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” Requires information transparency – Driving the exchange of information without intervention from executives or others Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved Business Benefits of Collaboration and Teamwork Investments in collaboration technology can bring organization improvements, returning high ROI Benefits – Productivity – Quality – Innovation – Customer service – Financial performance  Profitability, sales, sales growth Copyright © 2018, 2017, 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 IBM Notes – Enterprise social networking tools Copyright © 2018, 2017, 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 © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved Figure 2.8: The Time/Space Collaboration and Social Tool Matrix Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved The Information Systems Department 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 Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved