© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 1

Understanding Information and e-Business

Chapter

14

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 2

Management information system (MIS)• A system that provides managers and employees with the

information they need to perform their jobs as effectively as possible

Information technology officer• A manager at the executive level who is responsible for

ensuring that a firm has the equipment necessary to provide the information the firm’s employees and managers need to make effective decisions

What Is a Management Information System?

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 3

Management Information System (MIS)

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 4

A firm’s information requirements• Summary of future possibilities• Summary of present situation• Summary of past performance• Information about five areas of management:

finance, operations, marketing, human resources, and administration

Size and complexity of the system• Must be properly sized to provide sufficient

information resources without being too simple or too complex to be useful

Management Information System (cont.)

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 5

Every MIS must be tailored to the organization it serves and must perform five functions

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 6

Processing data• Data and Information are not the same thing.

• Data has to be analyzed and become meaningful and useful to be considered to be information.

• For example:

– 2012 Sales were $500,000 (this is Data)

– Means nothing unless we compare it to other years’ performance and then are possibly able to predict next year’s performance. (This is then useful information!)

How Do Employees Use a Management Information System? (cont.)

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 7

Seven Tips for Effective E-mail Communication

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 8

Using Computers and the Internet to Obtain Information (cont.)

Creating web sites• Reflects the company image• Should be kept current• Most companies manage their sites internally but some pay

an outside hosting service to provide site management

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 9

Tips for Web Site Development

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 10

Mr. Roger’s Neighborhood

An Example of a Web Site

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 11

E-business (electronic business)—the organized effort of individuals to produce and sell, for a profit, the products and services that satisfy society’s needs through the facilities available on the Internet

Defining e-Business

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 12

Satisfying needs online• The Internet has created new customer needs• E-business can satisfy those needs, as well as

traditional ones– Global access to information and entertainment– Virtually unlimited selection of products– Opportunities for interaction– Individually custom-tailored content

E-Business must Satisfy Needs like any other business

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 13

Creating e-business profit• Increasing sales revenue• Revenue stream—source of revenue flowing

into a firm. Examples of revenue streams:– Sales of merchandise online– Intelligent information systems to suggest

purchases to repeat online customers– Increased sales in physical stores because of

product information available online– Advertising on web pages– Subscription fees charged for access to online

services and content– Sale of company assets? Not a revenue stream.

Creating e-Business Profit

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 14

Creating e-business profit (cont.)• Reducing expenses

– Offering online services that:– Reduce transaction costs– Provide information– Provide customer assistance

– Reduces the costs of dealing with customers– Reduces the need for as many physical store

locations

Creating e-Business Profit (cont.)

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 15

Planning for a New Internet Business or Building an Online Presence for an Existing Business

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 16

The Internet and e-business will continue to expand along with related computer technologies.

Internet growth potential• Opportunity: only about 1.8 billion of the world’s nearly

7 billion people use the Web.• Americans comprise 12 percent of all users.• Internet growth potential in the U.S. is limited since

73 percent of Americans already use it.• Projections indicate worldwide users will exceed

2.1 billion by 2012.• Social network site—a Web site that functions like an online

community of Internet users who share personal information, messages, photos, friends.

The Future of Computer Technology, the Internet, and e-Business

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 17

Chapter Quiz

1. Data presented in a form useful for a specific purpose is

A. factual data.B. information.C. statistical data.D. a computer information base.E. a computer network.

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 18

Chapter Quiz

2. The term that refers to buying and selling activities conducted online is

a. Internet business.b. e-business.c. online sales.d. e-marketing.e. e-sales.