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Management Information SystemsManagement Information SystemsMANAGING THE DIGITAL FIRM, 12TH EDITION
GLOBAL E-BUSINESS AND GLOBAL E-BUSINESS AND
COLLABORATIONCOLLABORATION
Chapter 2
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
Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Define and describe business processes and their relationship to information systems.
• Evaluate the role played by systems serving the various levels of management in a business and their relationship to each other.
• Explain how enterprise applications improve organizational performance.
Learning Objectives
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Explain the importance of collaboration and teamwork in business and how they are supported by technology.
• Assess the role of the information systems function in a business.
Learning Objectives (cont.)
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Problem: Using IT to win the America’s 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.
• IBM Oracle Database 11g data management software provided real time analysis of boat’s sensor data.
• Demonstrates IT’s role in fostering innovation and improving performance.
• Illustrates the benefits of using data analysis and IT to improve products
America’s Cup 2010: USA Wins with Information Technology
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Management Information SystemsManagement Information Systems
CHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Business processes:oWorkflows of material, information, knowledgeo Sets of activities, stepsoMay be tied to functional area or be cross-
functional
• Businesses: Can be seen as collection of business processes
• Business processes may be assets or liabilities
Business Processes and Information Systems
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Examples of functional business processeso Manufacturing and production• Assembling the product
o Sales and marketing• Identifying customers
o Finance and accounting• Creating financial statements
o Human resources• Hiring employees
Business Processes and Information Systems
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Management Information SystemsManagement Information Systems
CHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Examples of How IT Changes Business Processeso Renting a movie (transform)o Downloading a music track (brand new)o Ordering a book (brand new)o Returning a rental car (transform)o Tracking a package (brand new)o Tracking stocks (transform)o Paying bills (transform)o Paying bills(transform)o Designing a photograph(transform)o Designing an airplane/ car (transform)o Registering for a class (transform)o Capturing and sharing employee knowledge(new)
Business Processes and Information Systems
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Management Information SystemsManagement Information Systems
CHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Integrating Functions and Business Processes Cross-Functional Business Processes:
o Transcend boundary between sales, marketing, manufacturing and research and development
o Group employees from different functional specialties to a complete piece of work
Example : Order Fulfillment Process
Business Processes and Information Systems
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CHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
Business Processes and Information Systems
The 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
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Information technology enhances business processes in two main ways:1. Increasing efficiency of existing processes• Automating steps that were manual
1. 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 making
Business Processes and Information Systems
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
Business Processes and Information Systems
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• Basic Functions of Information Systems Information systems are model of physical systems Information systems engage in four basic activities
in order to support operations and management decision making Input Processing Output
• Feedback for operations and decision making• Feedback on the performance of IS
Storage
Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
Business Processes and Information Systems
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• Major Types of Systems In Organizations
1) Transaction Processing Systems(TPS)
2) Management Information Systems(MIS)
3) Decision Support Systems(DBS)
4) Executive Support Systems(ESS)
Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• By the groups the serve Operational level Management level Strategic level
• By functional area Sales and marketing Manufacturing and production Finance and accounting Human resources
Ways to Organize Information Systems
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CHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
The Four Major Types of Information Systems by the Groups They Serve and Functional Area
Enterprise Application Architecture
Enterprise applications automate processes that span multiple business functions and organizational levels and may extend outside the organization.FIGURE 2-6
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Transaction processing systemso Perform and record daily routine transactions
necessary to conduct business• Examples: sales order entry, payroll, shipping
o Allow managers to monitor status of operations and relations with external environment
o Serve operational levelso Serve predefined, structured goals and decision
making
Types of Information Systems
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CHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
Types of Information Systems
A Payroll TPS
A TPS for payroll processing captures employee payment transaction data (such as a time card). System outputs include online and hard-copy reports for management and employee paychecks.
FIGURE 2-2
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Management information systemsoServe middle management
oProvide reports on firm’s current performance, based on data from TPS
oProvide answers to routine questions with predefined procedure for answering them
oTypically have little analytic capability
Types of Information Systems
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CHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
Types of Information Systems
How 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 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
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CHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
Types of Information Systems
Sample MIS Report
This report, showing summarized annual sales data, was produced by the MIS in Figure 2-3.FIGURE 2-4
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Characteristics of Management Information System (MIS) Structured and semi-structured decisions Report control oriented Past and present data Internal oriented Lengthy design process
Types of Information Systems
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Decision support systemso Serve middle managemento Support non-routine decision making• Example: What is impact on production schedule if
December sales doubled?o Often use external information as well from TPS and
MISo Model driven DSS• Voyage-estimating systems
o Data driven DSS• Intrawest’s marketing analysis systems
Types of Information Systems
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CHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
Types of Information Systems
Voyage-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
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Business intelligenceoClass of software applications
oAnalyze current and historical data to find patterns and trends and aid decision-making
oUsed in systems that support middle and senior management• Data-driven DSS • Executive support systems (ESS)
Types of Information Systems
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Executive support systemso Support senior managemento Address non-routine decisions• Requiring judgment, evaluation, and insight
o Incorporate data about external events (e.g. new tax laws or competitors) as well as summarized information from internal MIS and DSS
o Example: Digital dashboard with real-time view of firm’s financial performance: working capital, accounts receivable, accounts payable, cash flow, and inventory
Types of Information Systems
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Systems from a constituency perspectiveoTransaction processing systems:
supporting operational level employeesoManagement information systems and
decision-support systems: supporting managers
oExecutive support systems: supporting executives
Types of Information Systems
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Relationship of systems to one anotheroTPS: Major source of data for other systems
oESS: Recipient of data from lower-level systems
oData may be exchanged between systems
o In reality, most businesses’ systems are only loosely integrated (but they are getting better!)
Types of Information Systems
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Enterprise applicationso Systems for linking the enterpriseo Span functional areaso Execute business processes across firmo Include all levels of managemento Four major applications:• Enterprise systems• Supply chain management systems• Customer relationship management systems• Knowledge management systems
Types of Information Systems
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Enterprise systemso Collects data from different firm functions and stores
data in single central data repositoryo Resolves problem of fragmented, redundant data
sets and systemso Enable: • Coordination of daily activities• Efficient response to customer orders (production,
inventory)• Provide valuable information for improving
management decision making
Types of Information Systems
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Supply chain management (SCM) systems oManage firm’s relationships with suppliersoShare information about• Orders, production, inventory levels,
delivery of products and servicesoGoal: • Right amount of products to destination with
least amount of time and lowest cost
Types of Information Systems
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Customer relationship management systems:o 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
o Integrate firm’s customer-related processes and consolidate customer information from multiple communication channels
Types of Information Systems
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Knowledge management systems (KMS)o Support processes for acquiring, creating,
storing, distributing, applying, integrating knowledge
• How to create, produce, distribute products and services
o Collect internal knowledge and experience within firm and make it available to employees
o Link to external sources of knowledge
Types of Information Systems
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Alternative tools that increase integration and expedite the flow of informationo Intranets: • Internal company Web sites accessible only by
employeeso Extranets: • Company Web sites accessible externally only
to vendors and suppliers• Often used to coordinate supply chain
Types of Information Systems
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• E-businesso Use of digital technology and Internet to drive major
business processes
• E-commerceo Subset of e-businesso Buying and selling goods and services through
Internet
• E-government:o Using Internet technology to deliver information and
services to citizens, employees, and businesses
Types of Information Systems
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Collaboration: o Short-lived or long-termo Informal or formal (teams)
• Growing importance of collaboration:o Changing nature of worko Growth of professional work – “interaction jobs”o Changing organization of the firmo Changing scope of the firmo Emphasis on innovationo Changing culture of work
Systems for Collaboration and Teamwork
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Business benefits of collaboration and teamworko Investments in collaboration technology can produce
organizational improvements returning high ROIo Benefits:• Productivity• Quality• Innovation• Customer service• Financial performance
o Profitability, sales, sales growth
Systems for Collaboration and Teamwork
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CHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
Systems for Collaboration and Teamwork
Requirements for Collaboration
Successful collaboration requires an appropriate organizational structure and culture, along with appropriate collaboration technology.
FIGURE 2-7
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Building a collaborative culture and business processeso “Command and control” organizations • No value placed on teamwork or lower-level
participation in decisionso Collaborative business culture• Senior managers rely on teams of employees• Policies, products, designs, processes, systems rely on
teams• Managers purpose is to build teams
Systems for Collaboration and Teamwork
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Technology for collaboration and teamworko 15 categories of collaborative software tools
Email and instant messaging White boardingCollaborative writing Web presentingCollaborative reviewing Work schedulingEvent scheduling Document sharing /wikisFile sharing Mind mappingScreen sharingLarge audience WebinarsAudio conferencing Co-browsingVideo conferencing
Systems for Collaboration and Teamwork
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Technology for collaboration and teamwork (cont.)o Social Networkingo Wikiso Virtual Worldso Internet-Based Collaboration Environments• Virtual meeting systems (telepresence)• Google Apps/Google sites• Microsoft SharePoint• Lotus Notes
Systems for Collaboration and Teamwork
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Management Information SystemsManagement Information Systems
Read the Interactive Session and discuss the following questions
CHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• What are the advantages of using videoconferencing technologies? What are the disadvantages?
• What is telepresence and what sorts of companies are best suited to use it as a communications tool?
• What kinds of companies could benefit from using videoconferencing? Are there any companies that might not derive any benefits from this technology?
Systems for Collaboration and Teamwork
VIRTUAL MEETINGS: SMART MANAGEMENT
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Two dimensions of collaboration technologieso Space (or location) – remote or colocatedo Time – synchronous or asynchronous
• Six steps in evaluating software tools1. What are your firm’s collaboration challenges?2. What kinds of solutions are available? 3. Analyze available products’ cost and benefits4. Evaluate security risks5. Consult users for implementation and training issues6. Evaluate product vendors
Systems for Collaboration and Teamwork
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CHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
Systems for Collaboration and Teamwork
The 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
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• Information systems department: • Formal organizational unit responsible for
information technology services• Often headed by chief information officer (CIO)
• Other senior positions include chief security officer (CSO), chief knowledge officer (CKO), chief privacy officer (CPO)
• Programmers• Systems analysts• Information systems managers
The Information Systems Function in Business
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Management Information SystemsManagement Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION
• End users• Representatives of other departments for whom
applications are developed• Increasing role in system design, development
• IT Governance:• Strategies and policies for using IT in the
organization• Decision rights• Accountability• Organization of information systems function
• Centralized, decentralized, etc.
The Information Systems Function in Business
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