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3/5/2013

Chapter 2

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration STUDENTLEARNING OBJECTIVES

GlobalEBusinessand Collaboration
Video Cases: Case 1 How FedEx Works: Enterprise Systems Case 2 IT and Geo-Mapping Help a Small Business Succeed Instructional Videos: Instructional Video 1 US Foodservice Grows Market with Oracle CRM on Demand Instructional Video 2 Comverse One Billing and Active Customer Management Instructional Video 3 Deliver Field Service Excellence

Whatarethemajorfeaturesofabusinessthatareimportantfor understandingtheroleofinformationsystems?

Howdosystemsservedifferentmanagementgroupsinabusiness? Howdosystemsthatlinktheenterpriseimproveorganizational performance?

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration STUDENTLEARNING OBJECTIVES

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration AmericasCup2010:USAWinswithInformationTechnology

Whyaresystemsforcollaborationandteamworksoimportantandwhat technologiesdotheyuse? Whatistheroleoftheinformationsystemsfunctioninabusiness?

Problem: Using IT to win the Americas Cup race Solutions: New technology for physical engineering of boat; sensor network to monitor conditions, and data analysis to improve the performance of sails and more

3/5/2013

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration AmericasCup2010:USAWinswithInformationTechnology

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration AmericasCup2010:USAWinswithInformationTechnology

IBM Oracle Database 11g data management software provided real time analysis of boats sensor data Demonstrates ITs role in fostering innovation and improving performance Illustrates the benefits of using data analysis and IT to improve products

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration ComponentsofaBusiness

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration ComponentsofaBusiness

Business:formalorganization thatmakesproducts orprovides aserviceinorderto makeaprofit

The Four Major Functions of a Business

Organizing a Business: Basic Business Functions Fourbasicbusinessfunctions Manufacturingandproduction Salesandmarketing Financeandaccounting Humanresources

Everybusiness,regardlessofitssize, mustperformfourfunctionstosucceed succeed. Itmustproducetheproductorservice; marketandselltheproduct;keeptrack ofaccounting andfinancialtransactions; andperformbasichumanresources tasks,suchashiringandretaining employees.

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Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration ComponentsofaBusiness

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration ComponentsofaBusiness

Five Basic Business Entities

Business Processes Logicallyrelatedsetoftasksthatdefinehowspecificbusinesstasksare performed

Suppliers Customers Employees Invoices/payments Productsandservices


Thetaskseachemployee performs, inwhatorder, andonwhat schedule E.g.,stepsinhiringanemployee


Someprocessestiedtofunctionalarea

Salesandmarketing: identifying customers


Some processes ar re crossfunctional

Fulfilling customerorder

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration ComponentsofaBusiness

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration ComponentsofaBusiness

The Order Fulfillment Process

Managing a Business and Firm Hierarchies

Fulfillingacustomerorder involvesacomplexsetofsteps thatrequirestheclose coordinationofthesales, accounting, andmanufacturing functions.

Firms coordinate work of employees by developing hierarchy in which authority is concentrated at top.
Senior management Middle management Operational management Knowledge workers Data workers Production or service workers

Each group has different needs for information.


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Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration ComponentsofaBusiness

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration ComponentsofaBusiness

Levels in a Firm
Businessorganizations are hierarchiesconsistingofthree principallevels: seniormanagement,middle management andoperational management, management.Informationsystems serveeachoftheselevels. Scientistsandknowledgeworkers oftenworkwithmiddle management.

The Business Environment

Global environment factors Technology and science Economy Politics International change

Immediate environment factors Customers Suppliers Competitors Regulations Stockholders

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Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration ComponentsofaBusiness

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration ComponentsofaBusiness

The Business Environment


Tobesuccessful, anorganization must constantlymonitorandrespondto orevenanticipatedevelopments in itsenvironment.Afirmsenvironment includesspecific p g groups p withwhich thebusinessmustdealdirectly, such ascustomers,suppliers,and competitorsaswellasthebroader generalenvironment,including socioeconomictrends,political conditions,technological innovations, andglobalevents.

The Role of Information Systems in a Business Firmsinvestininformationsystemsinorderto: Achieveoperationalexcellence Developnewproductsandservices Attaincustomerintimacyandservice Improvedecisionmaking Promotecompetitiveadvantage Ensuresurvival

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Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration TypesofBusinessInformationSystems

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration TypesofBusinessInformationSystems

Systems for Management Decision Making and Business Intelligence Transactionprocessingsystems(TPS)

Transaction processing systems:

Keeptrackofbasicactivities andtransactions oforganization


Systemsforbusinessintelligence

Serve operational managers Principal purpose is to answer routine questions and to track the flow of transactions through the organization
E.g., inventory questions, granting credit to customer

Addressdecisionmaking needsofalllevels ofmanagement


Managementinformationsystems(MIS) Decisionsupportsystems(DSS) Executivesupportsystems(ESS)

Monitor status of internal operations and firms relationship with external environment Major producers of information for other systems Highly central to business operations and functioning

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration TypesofBusinessInformationSystems

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration TypesofBusinessInformationSystems

A Payroll TPS
ATPSforpayroll processingcaptures employeepayment transactiondata(suchas atimecard).System outputsincludeonline andhardcopyreports for managementand employeepaychecks.

Management information systems:

Provide middle managers with reports on firms performance To monitor firm and help p predict p future performance


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Summarize and report on basic operations using data from TPS Provide weekly, monthly, annual results, but may enable drilling down into daily or hourly data Typically not very flexible systems with little analytic capability

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Chapter 2 Global E E-Business and Collaboration TypesofBusinessInformationSystems

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration TypesofBusinessInformationSystems

How MIS Obtain Their Data from TPS

Sample MIS Report

Thisreport, showing summarized annualsales data,was producedby theMISin Figure26.

Figure27 Figure26

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration TypesofBusinessInformationSystems

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration TypesofBusinessInformationSystems

Interactive Session: Technology Can Airlines Solve Their Baggage Handling? Read the Interactive Session and then discuss the following questions: What types of transactions do baggage handling systems handle? What are the people, organization, and technology components of baggage handling systems? What is the problem these baggage handling systems are trying to solve? What is the business impact of this problem? Are todays handling systems a solution? What kinds of management reports are generated from these systems?

Decisionsupportsystems(DSS):
Servemiddlemanagers Supportnonroutinedecisionmaking

E.g.,Whatisimpactonproduction schedule ifDecember salesdoubled?


Often useexternalinformationaswellfromTPSandMIS Model drivenDSS

Voyageestimating systems
DatadrivenDSS

Intrawestsmarketing analysis systems

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Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration TypesofBusinessInformationSystems

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration TypesofBusinessInformationSystems

VoyageVoyage -Estimating Decision Support System

Executivesupportsystems(ESS):

Serveseniormanagers Addressstrategicissues andlongtermtrends


ThisDSSoperates p ona powerfulPC.Itisused dailybymanagerswho mustdevelopbidson shippingcontracts.

E.g.,Whatproductsshouldwemakeinfiveyears?

Addressnonroutinedecisionmaking Providegeneralizedcomputingcapacitythatcanbeapplied tochangingarrayofproblems Drawsummarized informationfromMIS,DSS,anddatafrom externalevents

Figure28

TypicallyuseportalwithWebinterface,ordigitaldashboard, topresentcontent

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration TypesofBusinessInformationSystems

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration TypesofBusinessInformationSystems

Digital Dashboard
Adigitaldashboard deliverscomprehensive andaccurateinformation fordecisionmaking oftenusingasingle screen.Thegraphical overview ofkey performance indicatorshelps managersquickly spotareasthatneed attention.

Interactive Session: Organizations Piloting Valero with RealReal-Time Management Read the Interactive Session and then discuss the following questions: What people, organization, and technology issues had to be addressed when developing Valeros dashboard? What Wh t measurements t of f performance f do d dashboards d hb d display? di l ? What Wh t management decisions would benefit from Valero Valeros s dashboard? What kinds of information systems are required for Valero to operate its refining dashboard? How effective are Valeros Valeros dashboards in helping management? Should Valero develop a dashboard to measure the factors in its environment which it doesnt control?

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Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration TypesofBusinessInformationSystems

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration TypesofBusinessInformationSystems

Systems for Linking the Enterprise Enterpriseapplications Systemsthatspanfunctionalareas,focusonexecutingbusinessprocesses acrossthefirm,andincludealllevelsofmanagement Fourmajortypes

Enterprise Application Architecture

1. Enterprisesystems 2. Supplychainmanagementsystems 3. Customerrelationshipmanagementsystems 4. Knowledgemanagementsystems

Enterpriseapplications automateprocessesthat spanmultiple lti l b business i functionsandorganizational levelsandmayextend outsidetheorganization.

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Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration TypesofBusinessInformationSystems

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration TypesofBusinessInformationSystems

Enterprise Systems Alsocalledenterpriseresourceplanning(ERP)systems Integratedatafromkeybusinessprocessesintosinglesystem Speedcommunicationofinformationthroughoutfirm Enablegreaterflexibilityinrespondingtocustomerrequests,greateraccuracy inorderfulfillment Enablemanagerstoassembleoverallviewofoperations

Supply Chain Management Systems Managerelationshipswithsuppliers,purchasingfirms,distributors,and logisticscompanies Managesharedinformationaboutorders,production,inventorylevels,andso on

Goalistomovecorrectamountofproductfromsourcetopointof consumptionasquicklyaspossible andatlowestcost


Typeofinterorganizationalsystem:

Automatingflowofinformationacrossorganizationalboundaries

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Chapter 2 Global E E-Business and Collaboration TypesofBusinessInformationSystems

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration TypesofBusinessInformationSystems

Customer Relationship Management Systems Helpmanagerelationshipwithcustomers Coordinatebusinessprocessesthatdealwithcustomersinsales,marketing, andcustomerservice Goals: Optimizerevenue Improvecustomersatisfaction Increasecustomerretention Identifyandretainmostprofitablecustomers

Knowledge Management Systems

Manageprocessesforcapturingandapplying knowledgeandexpertise Collectrelevantknowledgeandmakeitavailable whereverneededintheenterprisetoimprove businessprocessesandmanagementdecisions Linkfirmtoexternalsourcesofknowledge

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration TypesofBusinessInformationSystems

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration TypesofBusinessInformationSystems

Intranets and Extranets Technologyplatformsthatincreaseintegrationandexpeditetheflowof information Intranets: Ebusiness:

E-Business, E E-Commerce, and EE-Government

UseofdigitaltechnologyandInternettodrivemajorbusiness processes
Ecommerce:

Internalnetworks basedonInternetstandards OftenareprivateaccessareaincompanysWebsite


Extranets:

Subsetofebusiness BuyingandsellinggoodsandservicesthroughInternet
Egovernment:

CompanyWebsitesaccessibleonlytoauthorizedvendors andsuppliers Facilitatecollaboration

UsingInternettechnologytodeliverinformationandservicesto citizens,employees,andbusinesses

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Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration SystemsforCollaboration andTeamwork

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration SystemsforCollaboration andTeamwork

What Is Collaboration? GrowingImportanceofcollaboration: Changingnatureofwork G Growth thof fprofessional f i lwork k Changingorganizationofthefirm Changingscopeofthefirm Emphasisoninnovation Changingcultureofworkandbusiness

Business Benefits of Collaboration and Teamwork Recentsurveysfindthatinvestmentincollaborationtechnologycanreturn largerewards,especiallyin:

Salesandmarketing Research R hand ddevelopment d l


Older,commandandcontrol, hierarchicalmanagementallowedlittle horizontalcommunication Today,businessesrelymoreonteamsatalllevels

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration SystemsforCollaboration andTeamwork

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration SystemsforCollaboration andTeamwork

Tools and Technologies for Collaboration and Teamwork


Figure210 RequirementsforCollaboration Successfulcollaboration requiresanappropriate organizationalstructure andculture, alongwith appropriatecollaboration technology.

Emailandinstantmessaging(IM) Socialnetworking Wikis Virtualworlds Internetbasedcollaborationenvironments Virtualmeetingsystems(telepresence) GoogleApps/GoogleSites MicrosoftSharePoint LotusNotes

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Chapter 2 Global E E-Business and Collaboration TheInformationSystemsFunction inBusiness
Socialtext'senterprise socialnetworking productsincluding microblogging,blogs, wikis,profiles,and socialspreadsheets enableemployeesto sharevitalinformation andworktogetherin realtime.Builtona flexibleWeboriented architecture,Socialtext integrateswithvirtually anytraditionalsystemof record,suchasCRMand ERP,enablingcompanies todiscuss,collaborate, andtakeactiononkey businessprocesses.

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration SystemsforCollaboration andTeamwork

TheTime/Space CollaborationTool Matrix g Collaboration technologies canbeclassifiedin termsofwhetherthey supportinteractions at thesameordifferent timeorplace,and whethertheseinteractions areremoteorcolocated.

Figure211

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration SystemsforCollaboration andTeamwork

Essentials of Management Information Systems


Chapter 2 Global E E-Business and Collaboration TheInformationSystemsFunction inBusiness

EvaluatingandSelectingCollaborationSoftwareTools 1. Whatareyourfirmscollaborationchallenges? 2. Whatkindsofsolutionsareavailable? 3. Analyzeavailableproductscostandbenefits. 4. Evaluatesecurityrisks. 5. Consultusersforimplementationandtrainingissues. 6. Selectcandidatetoolsandevaluatevendors. Programmers

The Information Systems Department

Systemsanalysts

Principleliaisonstorestoffirm
Informationsystemsmanagers

Leadersofteamsofprogrammersandanalysts,project managers,physicalfacilitymanagers,telecommunications managers,databasespecialists,managersofcomputer operations,anddataentrystaff


Seniormanagers:CIO,CPO,CSO,CKO Endusers

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Chapter 2 Global E E-Business and Collaboration TheInformationSystemsFunction inBusiness

Information Systems Services Computingservices Telecommunicationsservices Datamanagementservices Applicationsoftwareservices Physicalfacilitiesmanagementservices ITmanagementservices ITstandardsservices ITeducationalservices ITresearchanddevelopmentservices

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