Global E-Business and Collaboration PDF

Chapter 2 / global e-business and collaboration LO. Define and describe business processes and their relationship to information systems. Evaluate the role played by systems serving the various levels of management in a business and their relationship to eac...

Chapter 2 / global e-business and collaboration LO. Define and describe business processes and their relationship to information systems. Evaluate the role played by systems serving the various levels of management in a business and their relationship to each other. Explain how enterprise applications improve organizational performance. Assess the role of the information systems function in a business. Business processes involve flows of material, information, and knowledge. - They consist of sets of activities or steps. - Can be specific to a functional area (like finance) or involve multiple areas (cross- functional). - Businesses are collections of these processes. - Efficient processes can be assets, while inefficient ones may be liabilities. 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. The Order Fulfillment Process : involves multiple steps and coordination between different departments to complete a customer order: - Sales: Receives the order and processes it. - Accounting: Ensures payment is processed and recorded. - Manufacturing: Assembles and ships the product to the customer. All these functions work together to successfully fulfill the order. Types of Information Systems: - Transaction Processing Systems (TPS): Routine , structured , pre-defined Serve operational managers and staff. Handle and record daily routine transactions necessary for business operations. Examples: sales order entry, payroll, shipping. Help managers check the status of operations and external relations. Focus on predefined, structured goals and decision-making. A Transaction Processing System (TPS) for payroll processing: Captures transaction data: Records details like time cards for employee payments. Outputs: Generates online and hard-copy reports for management and issues employee paychecks. This system helps in accurate payroll management by handling and documenting all related transactions.  Types of Information SystemsL Enterprise applications : are software systems that connect different parts of a company to help them work together. They support various business processes and management levels. The four main types are: Enterprise systems: Manage core business activities. Supply Chain Management (SCM): Handle supplier and product delivery. Customer Relationship Management (CRM): Improve customer service and sales. 4.Knowledge Management Systems (KMS): Share company knowledge for better decisions. 1- Enterprise systems are software that gather data from various departments of a company and store it in a single, central location. This solves the issue of data being scattered in different system ( problem of fragmented data) They help with: Coordinating daily activities across the company. Responding efficiently to customer orders by managing production and inventory. Supporting decision-making for both daily operations and long-term planning. This integration improves efficiency and helps managers make better-informed decisions. 2- Supply Chain Management (SCM): systems help a company manage its relationships with suppliers. They allow the sharing of important information like orders, production, inventory levels, and product deliveries. The main goal of SCM systems: is to ensure the right amount of products reaches their destination in the shortest time and at the lowest cost.> This helps improve efficiency and reduce costs.  3- Customer Relationship Management (CRM) : systems help manage all interactions with customers, covering areas like sales, marketing, and customer service. The system: Provides information to streamline customer-related processes. Helps businesses identify, attract, and retain their most profitable customers. This leads to better customer satisfaction and loyalty. 4- Knowledge Management Systems (KMS): help capture and use a company’s knowledge and expertise. They support processes like: Creating, producing, and delivering products or services. Collecting and sharing internal knowledge and experience with employees. Connecting to external sources of knowledge. These systems ensure that valuable information is easily accessible to improve decision- making and efficiency across the company. E-business :involves using digital technology and the internet to manage and improve business processes. E-commerce: is a part of e-business that focuses on buying and selling goods and services online. E-government : uses internet technology to provide information and services to citizens, employees, and businesses. Both help streamline operations and improve access to services. E-business also helps increase integration and speed up the flow of information. Intranets: These are internal websites that only employees within the company can access. Extranets: These are company websites that can be accessed by external partners like vendors and suppliers. They are often used to coordinate the supply chain. Both tools enhance communication and collaboration within and outside the company. Information technology improves business processes by: Increasing efficiency: Automating tasks that were previously done manually. Enabling new processes: o Changing how information flows. o Allowing tasks to happen in parallel instead of one after another. o Reducing delays in decision-making. o Supporting the creation of new business models. This leads to faster, more efficient operations and new opportunities for growth. Business intelligence: refers to data and software tools that help organize and analyze information, enabling managers and users to make better decisions. Business intelligence systems include: - Management Information Systems (MIS): Provide regular reports for decision-making. - Decision Support Systems (DSS): Help with specific decisions using data analysis. -Executive Support Systems (ESS): Provide top-level managers with tools for strategic decisions. These systems aid in improving decision-making across all management levels. Management Information Systems (MIS) serve middle management by: 1. Providing reports on the company's current performance using data from Transaction Processing Systems (TPS). 2. Offering answers to routine questions through predefined procedures. 3. Typically having limited analytical capabilities, focusing more on generating regular reports rather than deep analysis. These systems help managers track ongoing operations and make informed decisions based on current data. Decision Support Systems (DSS) serve middle management by: o Supporting non-routine decision making, such as “What happens to the production schedule if December sales double?” o Using both external information and data from Transaction Processing Systems (TPS) or Management Information Systems (MIS). There are two types of DSS: o Model-driven DSS: Focus on complex calculations, like voyage-estimating systems for shipping. o Data-driven DSS: Use large data sets for analysis, like Intrawest’s marketing analysis systems. These systems help managers make more informed decisions in unique or changing situations. Executive Support Systems (ESS): are designed to assist senior management by: Supporting non-routine decisions that require judgment, evaluation, and insight. Using data about external events (like new tax laws or competitor actions) along with summarized information from internal Management Information Systems (MIS) and Decision Support Systems (DSS). An example of ESS is a digital dashboard that provides a real-time view of a company's financial performance, such as working capital, accounts receivable, accounts payable, cash flow, and inventory. This helps senior managers make strategic decisions. The Information Systems Department is a formal organizational unit responsible for managing a company's technology services. Key roles within the department include: Chief Information Officer (CIO): Leads the department and oversees IT strategy. Chief Security Officer (CSO): Focuses on IT security. Chief Knowledge Officer (CKO): Manages the company's knowledge resources. Chief Privacy Officer (CPO): Ensures data privacy and compliance. Programmers: Write and maintain software code. Systems Analysts: Design solutions for business problems. Information Systems Managers: Oversee IT teams and daily operations. This department ensures technology supports the company’s goals. End users are representatives from other departments who use the applications developed for them. They play an increasing role in the system design and development process to ensure the technology meets their needs. IT Governance involves: Creating strategies and policies for how IT is used within the organization. Defining decision rights and ensuring accountability for IT-related decisions. Organizing the information systems function, which can be centralized (controlled by a single unit) or decentralized (spread across different departments). This structure ensures effective management and alignment of IT with business goals. Hyperion 1- How does Hyperion help the CEO? Hyperion provides real-time dashboards (ESS) to help the CEO track key performance indicators and make strategic decisions. 2- How does Hyperion help the marketing & sales executive? Hyperion offers analytics and insights (DSS) to assist in setting sales targets and optimizing marketing strategies. 3- How does Hyperion support the COO? Hyperion provides reports and data (MIS) to help the COO manage operations, supply chain, and inventory efficiently. 4- Identify MIS, DSS, ESS systems in the video: ESS: CEO’s strategic decision-making. DSS: Marketing and sales analysis. MIS: COO’s operational management.