MIS Books - 2nd Semester Notes2ndsemesternotes.yolasite.com/resources/MIS Chapter - 07.pdf · MIS Books Text Book 1 ... Assignment + Class Performance + ... Section C, D (Computer,

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Compiled By: Muzammil Ahmad Khan and Kashif Shaikh

Sir Syed University of Engineering and Technology

Chapter No 7 Batch 2010Management Information Systems

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Management Information Systems

Chapter 7

Compiled By:

Muzammil Ahmad Khan

Muhammad Kashif Shaikh

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MIS Books

Text Book

1. Management Information System, 8th EditionBy: James A. O' Brien , George Marakas

Reference Books

1. Management Information System, 9th EditionBy: Kenneth C. Laudon, Jane P. Laudon

2. Introduction to Information Systems: Supporting and Transforming BusinessBy: Rainer, Turban, Potter, 1st Edition

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Marks Distribution

Mid Term ________ 15Assignment + Class Performance + Quiz + Presentation + Report ________ 5Semester Final Paper ________ 80Total Marks ________ 100

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Marks Distribution [ Sessional ]

Class Test ______________ 10 PointsAssignment ______________ 10 PointsClass Presentation ______________ 15 PointsProject ______________ 15 PointsTotal Points ______________ 50 Points

Performance Bonus ______________ 10 Points

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MIS Website

http://www.ssuet.edu.pk/courses/hs107/mis

http://taimoor/hs107/mis

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Course Instructors

Muhammad Kashif Shaikh [email protected] Professor, CEDRoom No: BS-04Section A, B,E (Computer, Batch 2009)

Muzammil Ahmad Khan [email protected] Professor, CEDRoom No: BS-04Section C, D (Computer, Batch 2009)

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Electronic Business Systems

Chapter

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Management Information Systems

Compiled By: Muzammil Ahmad Khan & Muhammad Kashif Shaikh

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Identify the following cross-functional enterprise systems, and give examples of how they can provide significant business value to a company

Enterprise application integrationTransaction processing systemsEnterprise collaboration systems

Learning Objectives

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Give examples of how Internet and other information technologies support business processes within the business functions of

AccountingFinanceHuman resource managementMarketingProduction Operations management

Learning Objectives

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Enterprise Business Systems

E-business means using the Internet, other networks, and IT to support

Electronic commerceEnterprise communications and collaborationWeb-enabled business processes

E-commerce is the buying, selling, and marketing of products, services, and information over the Internet and other networks

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Cross-Functional Systems

Cross the boundaries of traditional business functions

Used to reengineer and improve vital business processes all across the enterprise

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Enterprise Application Architecture

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Provides a conceptual frameworkHelps visualize the basic components, processes, and interfaces of major e-business applications

Focuses on accomplishing fundamental business processes in concert with

CustomersSuppliersPartnersEmployees

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Enterprise Resource Planning (ERP)Concentrates on the efficiency of internal production, distribution, and financial processes

Customer Relationship Management (CRM)Focuses on acquiring and retaining profitable customers via marketing, sales, and services

Partner Relationship Management (PRM)Aims at acquiring and retaining partners who can enhance the selling and distribution of products and services

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Supply Chain Management (SCM)Focuses on developing the most efficient and effective sourcing and procurement processes

Knowledge Management (KM)Focuses on facilitating internal group collaboration and decision support

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Enterprise Application Integration

EAI software connects cross-functional systemsServes as middleware to provide

Data conversionCommunication between systemsAccess to system interfaces

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How EAI Works

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Transaction Processing Systems

Cross-functional information systems that process data resulting from the occurrence of business transactions

Transactions include sales, purchases, deposits, withdrawals, refunds, and paymentsOnline transaction processing (OLTP) is a real-time system that captures transactions immediately

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Transaction Processing Systems

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The Transaction Processing Cycle

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Enterprise Collaboration Systems (ECS)

EC systems are cross-functional information systems that enhance team and workgroup

CommunicationCoordinationCollaboration

Systems may includeNetworked PC workstationsServersDatabasesGroupware and application packages

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ECS Tools

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Functional Business Systems

A variety of types of information systems that support the business functions of

AccountingFinanceMarketingOperations managementHuman resource management

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IT in Business

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Marketing Systems

Marketing systems are concerned withPlanning, promotion, and sale of existing products in existing marketsDevelopment of new products and new marketsBetter attracting and serving present and potential customers

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Marketing Information Systems

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Interactive Marketing

Interactive MarketingA customer-focused marketing processUses the Internet, intranets, and extranetsEstablishes two-way transactions between a business and its customers or potential customers

GoalProfitably use networks to attract and keep customersGet customers to help create, purchase, and improve products and services

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Targeted Marketing

An advertising and promotion management concept with five targeting components

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Targeted Marketing Components

Community: customized ads to appeal to specific virtual communitiesContent: ads placed on a variety of selected websites, aimed at a specific audienceContext: ads placed on web pages that are relevant to a product or serviceDemographic/Psychographic: web marketing aimed at specific types or classes of peopleOnline behavior: promotions tailored to each visit to a site by an individual

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Sales Force Automation

Outfit sales force with notebook computers, web browsers, and sales contact software

Connect them to marketing websites and the company intranet

GoalsIncrease personal productivitySpeed up capture and analysis of sales dataGain strategic advantage

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Manufacturing Information Systems

Supports the production/operations functionsIncludes all activities concerned with planning and control of the processes producing goods or services

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Computer-Integrated Manufacturing

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CIM Objectives

Simplify production processes, product designs, and factory organization

Automate production processes and the business functions that support them

Integrate all production and support processes using

NetworksCross-functional business softwareOther information technologies

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CIM Systems

Computer-aided manufacturing (CAM)Automate the production process

Manufacturing execution systems (MES)Performance monitoring information systems for factory floor operations

Process controlControl ongoing physical processes

Machine controlControls the actions of machines

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Human Resource Management (HRM)

Information systems designed to supportPlanning to meet personnel needsDevelopment of employees to their full potentialControl of all personnel policies and programs

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HRM Systems

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HRM and the Internet

Recruiting employees using the corporate website and commercial recruiting services

Posting messages in selected Internet newsgroups

Communicating with job applicants via e-mail

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HRM and Corporate Intranets

Corporate intranet usesProcess common HRM transactionsAllow around-the-clock HRM servicesDisseminate information faster than through previous company channelsCollect information from employees onlineAllow HRM tasks to be performed with little HRM department interventionTraining

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Employee Self-Service

Intranet applications can allow employees toView benefitsEnter travel and expense reportsVerify employment and salary informationAccess and update personal informationEnter time-sensitive data

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Accounting Information Systems

The oldest and most widely used information system in business

Records and reports business transactions and economic eventsProduces financial statementsForecasts future conditions

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Typically consists ofOrder processingInventory controlAccounts receivableAccounts payablePayrollGeneral ledger systems

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Financial Management Systems

Supports business managers and professionals making decisions concerning

The financing of a businessThe allocation and control of financial resources within a business

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Financial Management System Example

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ERP: The Business Backbone

ERP is a cross-functional enterprise backbone that integrates and automates processes within

ManufacturingLogisticsDistributionAccountingFinanceHuman resources

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What is ERP?

Enterprise resource planning is a cross-functional enterprise system

An integrated suite of software modulesSupports basic internal business processesFacilitates business, supplier, and customer information flows

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ERP Application Components

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ERP Process and Information Flows

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Benefits and Challenges of ERP

ERP Business BenefitsQuality and efficiencyDecreased costsDecision supportEnterprise agility

ERP CostsRisks and costs are considerableHardware and software are a small part of total costsFailure can cripple or kill a business

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Costs of Implementing a New ERP

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Causes of ERP Failures

Most common causes of ERP failureUnder-estimating the complexity of planning, development, trainingFailure to involve affected employees in planning and developmentTrying to do too much too fastInsufficient trainingInsufficient data conversion and testingOver-reliance on ERP vendor or consultants

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Introduction to e-Commerce

Electronic commerce encompasses the entire online process of

DevelopingMarketingSellingDeliveringServicingPaying for products and services

It relies on the Internet and other information technologies to support every step of the process

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Categories of e-Commerce

Business-to-ConsumerVirtual storefronts, multimedia catalogs, interactive order processing, electronic payment, online customer support

Business-to-BusinessElectronic business marketplaces, direct links between businesses, auctions and exchanges

Consumer-to-ConsumerOnline auctions, posting to newspaper sites, personal websites, e-commerce portals

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Electronic Payment Processes

Web Payment ProcessesShopping cart processCredit card payment processDebit and other more complex processes

Electronic Funds Transfer (EFT)Major payment system in banking, retailVariety of information technologies capture and process money and credit card transfersMost point-of-sale terminals in retail stores are networked to bank EFT systems

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Electronic Payment Example

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Securing Electronic Payments

Network sniffers easily recognize credit card formats

Encrypt data between customer and merchantEncrypt data between customer and financial institutionTake sensitive information off-line

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B2B E-Commerce

B2B is the wholesale and supply side of the commercial process

Businesses buy, sell, or trade with other businesses

Relies on multiple electronic information technologies

Catalog systemsTrading systemsData interchangeElectronic funds transfers

Documents

MIS Books - 2nd Semester Notes2ndsemesternotes.yolasite.com/resources/MIS Chapter - 07.pdf · MIS Books Text Book 1 ... Assignment + Class Performance + ... Section C, D (Computer,