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ManagementInformationSystemsManagementInformationSystemsMANAGINGTHEDIGITALFIRM,12TH EDITION,GLOBALEDITION
Ch 2Chapter2
GLOBAL E‐BUSINESS AND COLLABORATIONCOLLABORATION
VIDEO CASESCase 1: How FedEx Works: Enterprise SystemsCase 2: Oracle's Austin Data Center Instructional Video 1: FedEx Improves
Customer Experience with Integrated Mapping and Location Data
ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
LearningObjectives
• Define and describe business processes and their relationship to information systems.p y
• Evaluate the role played by systems serving the various levels of management in a business andvarious levels of management in a business and their relationship to each other.
E l i h t i li ti ll b ti• Explain how enterprise applications, collaboration and communication systems, and intranets improve organizational performanceorganizational performance.
© Pearson Education 20122
ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
BusinessProcessesandInformationSystems
• Business processes:W kfl f t i l i f ti k l d– Workflows of material, information, knowledge
– Sets of activities, steps– May be tied to functional area or be cross‐functional
• Businesses: Can be seen as collection of business processesbusiness processes
© Pearson Education 20123
ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
BusinessProcessesandInformationSystems
• Examples of functional business processesM f t i d d ti– Manufacturing and production
• Assembling the productS l d k i– Sales and marketing
• Identifying customers– Finance and accounting
• Creating financial statements– Human resources
• Hiring employees
© Pearson Education 20124
ManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
BusinessProcessesandInformationSystems
h O d lfillThe Order Fulfillment Process
Fulfilling a customer order involves a complex set of steps that requires the close coordination of the sales, accounting, and manufacturing functions.
FIGURE 2‐1
© Pearson Education 20125
ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
BusinessProcessesandInformationSystems
• Information technology enhances business processes in two main ways:processes in two main ways:1. Increasing efficiency of existing processes
• Automating steps that were manual2. Enabling entirely new processes that are
capable of transforming the businesses• Change flow of information• Replace sequential steps with parallel steps• Eliminate delays in decision makingy g
© Pearson Education 20126
ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
TypesofInformationSystems
• Transaction processing systemsP f d d d il ti t ti– Perform and record daily routine transactions necessary to conduct business
E l l d t ll hi i• Examples: sales order entry, payroll, shipping– Allow managers to monitor status of operations
d l i i h l iand relations with external environment– Serve operational levels– Serve predefined, structured goals and decision making
© Pearson Education 20127
ManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
TypesofInformationSystems
A Payroll TPS
A TPS for payroll processing capturesprocessing captures employee payment transaction data (such as a time card). System outputs include online and hard copy reportsand hard‐copy reports for management and employee paychecks.
FIGURE 2‐2FIGURE 2 2
© Pearson Education 20128
ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
TypesofInformationSystems
• Management information systems– Serve middle management
–Provide reports on firm’s current–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
© Pearson Education 20129
ManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
TypesofInformationSystems
f i S Ob i h i f h O i i ’ SHow Management Information Systems Obtain Their Data from the Organization’s TPS
In the system illustrated by this diagram three TPS supply summarized transaction data to the MIS reportingFIGURE 2 3 In the system illustrated by this diagram, three TPS supply summarized transaction data to the MIS reporting system at the end of the time period. Managers gain access to the organizational data through the MIS, which provides them with the appropriate reports.
FIGURE 2‐3
© Pearson Education 201210
ManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
TypesofInformationSystems
S l SSample MIS Report
This report, showing summarized annual sales data, was produced by the MIS in Figure 2‐3.FIGURE 2‐4
© Pearson Education 201211
ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
TypesofInformationSystems
• Decision support systemsServe middle management– Serve middle management
– Support non‐routine decision making• Example: What is impact on production schedule if• Example: What is impact on production schedule if December sales doubled?
– Often use external information as well from TPS and MIS
– Model driven DSS• Voyage‐estimating systems (p. 79)
– Data driven DSS• Intrawest’s marketing analysis systems (a ski operator)
© Pearson Education 201212
ManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
TypesofInformationSystems
i i i i S SVoyage‐Estimating Decision Support System
This DSS operates on a powerful PC. It is used daily by managers who must develop bids on shipping contracts.FIGURE 2‐5
© Pearson Education 201213
ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
TypesofInformationSystems
• Business intelligence– Class of software applications
Analyze current and historical data to find– Analyze current and historical data to find patterns and trends and aid decision‐making
–Used in systems that support middle and senior management• Data‐driven DSS • Executive support systems (ESS)
© Pearson Education 201214
ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
TypesofInformationSystems
• Executive support systemsS t i t– Support senior management
– Address non‐routine decisions• Requiring judgment, evaluation, and insight
– Incorporate data about external events (e.g. new tax l tit ) ll i dlaws or competitors) as well as summarized information from internal MIS and DSSE l Di it l d hb d ith l ti i f– Example: Digital dashboard with real‐time view of firm’s financial performance: working capital, accounts receivable, accounts payable, cash flow, andaccounts receivable, accounts payable, cash flow, and inventory
© Pearson Education 201215
ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
TypesofInformationSystems
• Systems from a constituency (使用者)perspectiveperspective–Transaction processing systems: supporting operational level employees
–Management information systems andManagement information systems and decision‐support systems: supporting managersmanagers
– Executive support systems: supporting tiexecutives
© Pearson Education 201216
ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
TypesofInformationSystems
• Relationship of systems to one another–TPS: Major source of data for other systems
– ESS: Recipient of data from lower level– ESS: Recipient of data from lower‐level systems
–Data may be exchanged between systems
In reality most businesses’ systems are– In reality, most businesses systems are only loosely integrated (but they are getting better!)getting better!)
© Pearson Education 201217
ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
TypesofInformationSystems
• Enterprise applicationsSystems for linking the enterprise– Systems for linking the enterprise
– Span functional areasb i fi– Execute business processes across firm
– Include all levels of management– Four major applications:
• Enterprise systems• Supply chain management systems• Customer relationship management systems• Knowledge management systems
© Pearson Education 201218
ManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
TypesofInformationSystems
Enterprise Application Architecture
Enterprise applications automate processes that span multiple business functions andfunctions and organizational levels and may extend outside the organization.
FIGURE 2‐6
© Pearson Education 201219
ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
TypesofInformationSystems
• Enterprise systemsC ll t d t f diff t fi f ti d t– Collects data from different firm functions and stores data in single central data repositoryResolves problem of fragmented redundant data– Resolves problem of fragmented, redundant data sets and systemsEnable:– Enable:
• Coordination of daily activities• Efficient response to customer orders (production• Efficient response to customer orders (production, inventory)
• Provide valuable information for improving p gmanagement decision making
© Pearson Education 201220
ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
TypesofInformationSystems
• Supply chain management (SCM) systems –Manage firm’s relationships with suppliers– Share information about
• Orders, production, inventory levels, delivery of products and servicesdelivery of products and services
–Goal: • Right amount of products to destination with least amount of time and lowest cost
© Pearson Education 201221
ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
TypesofInformationSystems
• Customer relationship management systems:id i f i di ll f h– Provide information to coordinate all of the
business processes that deal with customers in sales marketing and service to optimize revenuesales, marketing, and service to optimize revenue, customer satisfaction, and customer retention
I fi i i h• It costs five times more to acquire a customer than to retain an old one.
f ’ l d d– Integrate firm’s customer‐related processes and consolidate customer information from multiple communication channelscommunication channels
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ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
TypesofInformationSystems
• Knowledge management systems (KMS)f i i i i– Support processes for acquiring, creating, storing,
distributing, applying, integrating knowledge
• How to create, produce, distribute products and services
– Collect internal knowledge and experience within firm and make it available to employeesp y
– Link to external sources of knowledge
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ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
TypesofInformationSystems
• Alternative tools that increase integration and expedite the flow of informationand expedite the flow of information– Intranets:
• Internal company Web sites accessible only by employees
– Extranets:
C W b it ibl t ll l• Company Web sites accessible externally only to vendors and suppliers
• Often used to coordinate supply chain© Pearson Education 201224
ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
TypesofInformationSystems
• E‐business– Use of digital technology and Internet to drive major– Use of digital technology and Internet to drive major business processes
• E commerce• E‐commerce– Subset of e‐business– Buying and selling goods and services through Internet
• E‐government:– Using Internet technology to deliver information and g gyservices to citizens, employees, and businesses
© Pearson Education 201225
ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
SystemsforCollaborationandTeamwork
• Types of Collaboration: – Short‐lived or long‐termShort lived or long term– Informal or formal (teams)
G i i t f ll b ti• 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
© Pearson Education 201226
ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
SystemsforCollaborationandTeamwork
• Business benefits of collaboration and teamworkInvestments in collaboration technology can produce– Investments in collaboration technology can produce organizational improvements returning high ROI
– Benefits:– Benefits:• Productivity• Quality• Quality• Innovation• Customer serviceCustomer service• Financial performance
– Profitability, sales, sales growthy, , g
© Pearson Education 201227
ManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
SystemsforCollaborationandTeamwork
i f C ll b iRequirements for Collaboration
Successful collaboration requires an appropriate organizational structure and culture, along with appropriate collaboration technology.
FIGURE 2‐7
© Pearson Education 201228
ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
SystemsforCollaborationandTeamwork
• Building a collaborative culture and business processesp– Before: “Command and control” organizations
• No value placed on teamwork or lower‐level• 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, systems rely on , p , g , p , y yteams
• Managers purpose is to build teams
© Pearson Education 201229
ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
SystemsforCollaborationandTeamwork
• Technology for collaboration and teamwork15 categories of collaborative software tools– 15 categories of collaborative software tools
Email and instant messaging
White boarding Collaborative writingmessaging writing
Web presenting Collaborative reviewing Work scheduling
Event scheduling Document sharing /wikis File sharing
Screen sharing Large audience Webinars (web based seminars)
Audio conferencing(web‐based seminars)
Co‐browsing Video conferencing Mind mapping
© Pearson Education 201230
ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
SystemsforCollaborationandTeamwork
• Technology for collaboration and teamwork (cont.)Social Networking: Facebook– Social Networking: Facebook
– Wikisi l ld ( d if )– Virtual Worlds (Second Life)
– Internet‐Based Collaboration Environments• Virtual meeting systems (telepresence)• Google Apps/Google sites: see p. 91 Table 2‐4• Microsoft SharePoint• Lotus Notes
© Pearson Education 201231
ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
SystemsforCollaborationandTeamwork
• Two dimensions of collaboration technologies– Space (or location) – remote or colocated– Space (or location) – remote or colocated– Time – synchronous or asynchronous
© Pearson Education 201232
ManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
SystemsforCollaborationandTeamwork
h i /S C ll b i l iThe Time/Space Collaboration Tool Matrix
Collaboration technologies can be classified in terms of whether they support interactions at the same or different time or place whether these interactions are remote or co‐located.
FIGURE 2‐8
© Pearson Education 201233
ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
TheInformationSystemsFunctioninBusiness
• Information systems department: F l i ti l it ibl f• Formal organizational unit responsible for information technology servicesOft h d d b hi f i f ti ffi (CIO)• Often headed by chief information officer (CIO)• Other senior positions include chief security officer (CSO) chief knowledge officer (CKO) chief privacy(CSO), chief knowledge officer (CKO), chief privacy officer (CPO)
• Programmers• Programmers• Systems analysts• Information systems managers
© Pearson Education 201234
ManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsManagementInformationSystemsCHAPTER 2: GLOBAL E‐BUSINESS AND COLLABORATION
TheInformationSystemsFunctioninBusiness
• End users• Representatives of other departments for whom• Representatives of other departments for whom applications are developed
• Increasing role in system design development• Increasing role in system design, development
• IT Governance (治理):• Strategies and policies for using IT in the organization• Decision rights• Accountability• Organization of information systems function g y
• Centralized, decentralized, etc.© Pearson Education 201235
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