Management Information Systems - Chapter 2
- 1. Management Information System with Internet Technologies Part 1 Organizations, Management and the Networked Enterprise Chapter 2 Business Processes and Information Systems
- 2. Chapter 2 Business Processes and Information Systems
- 3. Business Processes • Business processes refer to the manner in which work is organized, coordinated, and focused to produce a valuable product or service. • Business processes are the collection of activities required to produce a product or service. • Asset or Liability?
- 4. EXAMPLES OF FUNCTIONAL BUSINESS PROCESSES
- 5. How Information Technology Improves Businesses Processes • Information systems automate many steps in business processes that were formerly performed manually, such as checking a client’s credit, or generating an invoice and shipping order. • But Information Technology can do so much more.
- 6. Information Technology can do more • New technology can actually change the flow of information, making it possible for many more people to access and share information, replacing sequential steps with tasks that can be performed simultaneously, and eliminating delays in decision making. • New information technology frequently changes the way a business works and supports entirely new business models.
- 7. Independence vs. Cross-functionality • A typical business organization has systems supporting processes for each of the major business functions—systems for sales and marketing, manufacturing and production, finance and accounting, and human resources. • Independent Functional Systems vs. Large-scale Cross-functional Systems
- 8. Types of Information Systems • Transaction Processing Systems • Management Information Systems • Decision Support Systems • Execute Support Systems
- 9. Transaction Processing Systems • A transaction processing system is a computerized system that performs and records the daily routine transactions necessary to conduct business, such as sales order entry, hotel reservations, payroll, employee record keeping, and shipping. • The principal purpose of systems at this level is to answer routine questions and to track the flow of transactions through the organization.
- 10. A TYPICAL PAYROL TPS
- 11. Management Information Systems • Management information systems (MIS) also designates a specific category of information systems serving middle management. • MIS provide middle managers with reports on the organization’s current performance.
- 12. HOW MANAGEMENT INFORMATION SYSTEMS OBTAIN THEIR DATA FROM THE ORGANIZATION’S TPS
- 14. Decision Support Systems • Decision-support systems (DSS) support more non-routine decision making. • They focus on problems that are unique and rapidly changing, for which the procedure for arriving at a solution may not be fully predefined in advance.
- 16. Executive Support Systems • Executive support systems (ESS) help senior management make these decisions. • They address non-routine decisions requiring judgment, evaluation, and insight because there is no agreed-on procedure for arriving at a solution.
- 17. Dundas Data Visualization’s digital dashboard delivers comprehensive and accurate information for decision making. The graphical overview of key performance indicators helps managers quickly spot areas that need attention.
- 18. Enterprise Applications • Enterprise Applications – systems that span functional areas, focus on executing business processes across the business firm, and include all levels of management. • Help businesses become more flexible and productive by coordinating their business processes more closely and integrating groups of processes so they focus on efficient management of resources and customer service.
- 20. Major Enterprise Applications • Enterprise systems, • Supply chain management systems • Customer relationship management systems • Knowledge management systems
- 21. Enterprise Systems • Also known as Enterprise Resource Planning (ERP) Systems. • Integrate business processes in manufacturing and production, finance and accounting, sales and marketing, and human resources into a single software system.
- 22. Supply Chain Management Systems • These systems help suppliers, purchasing firms, distributors, and logistics companies share information about orders, production, inventory levels, and delivery of products and services so that they can source, produce, and deliver goods and services efficiently.
- 23. Customer Relationship Management Systems • CRM systems provide information to coordinate all of the business processes that deal with customers in sales, marketing, and service to optimize revenue, customer satisfaction, and customer retention.
- 24. Knowledge Management Systems • Enable organizations to better manage processes for capturing and applying knowledge and expertise. • These systems collect all relevant knowledge and experience in the firm, and make it available wherever and whenever it is needed to improve business processes and management decisions.
- 25. Intranets and Extranets • Intranets are simply internal company Web sites that are accessible only by employees. • The term “intranet” refers to the fact that it is an internal network, in contrast to the Internet, which is a public network linking organizations and other external networks. • Extranets are company Web sites that are accessible to authorized vendors and suppliers, and often used to coordinate the movement of supplies to the firm’s production apparatus.
- 26. E-Business or Electronic Business • Refers to the use of digital technology and the Internet to execute the major business processes in the enterprise • E-business includes activities for the internal management of the firm and for coordination with suppliers and other business partners.
- 27. E-Commerce or Electronic Commerce • E-commerce is the part of e-business that deals with the buying and selling of goods and services over the Internet. • It also encompasses activities supporting those market transactions, such as advertising, marketing, customer support, security, delivery, and payment.
- 28. E-Government or Electronic Government • E-government refers to the application of the Internet and networking technologies to digitally enable government and public sector agencies’ relationships with citizens, businesses, and other arms of government.
- 29. Collaboration • Collaboration is working with others to achieve shared and explicit goals. • Collaboration focuses on task or mission accomplishment and usually takes place in a business, or other organization, and between businesses. • Collaboration can be short-lived, lasting a few minutes, or longer term, depending on the nature of the task and the relationship among participants.
- 30. Importance of Collaboration • Changing nature of work. • Growth of professional work. • Changing organization of the firm. • Changing scope of the firm. • Emphasis on innovation. • Changing culture of work and business.
- 31. Business Benefits of Collaboration and Teamwork
- 33. Tools and Technologies for Collaboration and Teamwork • A collaborative, team-oriented culture won’t produce benefits if there are no information systems in place to enable collaboration.
- 34. Internet-Based Collaboration Environments • Virtual Meeting Systems • Google Apps/Google Sites • Microsoft Sharepoint
- 35. Virtual Meeting Systems • Video Conferencing and Web Conferencing Technologies • An important feature of leading-edge high-end videoconferencing systems is telepresence technology, an integrated audio and visual environment that allows a person to give the appearance of being present at a location other than his or her true physical location.
- 36. Google Apps/Google Sites • One of the most widely used “free” online services for collaboration is Google Apps/Google Sites. • Google Sites allows users to quickly create online, group-editable Web sites. • Google Sites is one part of the larger Google Apps suite of tools. • Google Sites users can design and populate Web sites in minutes and, without any advanced technical skills, post a variety of files including calendars, text, spreadsheets, and videos for private, group, or public viewing and editing.
- 38. Microsoft Sharepoint • Microsoft SharePoint is the most widely adopted collaboration system for small and medium- sized firms that use Microsoft server and networking products. • SharePoint has a Web-based interface and close integration with everyday tools such as Microsoft Office desktop software products
- 40. See you next chapter