Global E-Business: How Businesses Use Information Systems

1. Global E-Business: How Businesses Use Information Systems CHAPTER 2

2. Business Processes and Information Systems • Business processes • How information technology enhances business processes: Efficiency and Transformation

3. Examples of Functional Business Processes

4. Cross-Functional Business Processes • Transcend boundary between sales, manufacturing, finance and accounting etc. • Group of employees from different functional specialties complete a piece of work • Example: Order Fulfillment Process

5. Cross-Functional Business Processes Order Fulfillment Process Fulfilling a customer order involves a complex set of steps that requires coordination of different functions.

6. Management Level

7. Management Level & Functional Areas

8. Types of Business Information Systems • Systems from a functional perspective • Sales and marketing systems • Manufacturing and production systems • Finance and accounting systems • Human resources systems • Systems from a constituency perspective • Transaction processing systems • Management information systems • Decision support systems • Executive support systems

9. Systems from a Functional Perspective • Sales and Marketing Systems • Help identify customers • Develop products and services • Promote products and services • Sell products and services • Provide ongoing customer support

10. Systems from a Functional Perspective (Contd.) • Example of Sales & Marketing Information systems

11. Systems from a Functional Perspective (Contd.) • Example of Sales Information systems

12. Systems from a Functional Perspective (Contd.) • Manufacturing and Production Systems • Planning, development, production of products and services • Maintenance of production facilities • Acquisition, storage, availability of materials • Scheduling materials, facilities, labor • Controlling the flow of production

13. Systems from a Functional Perspective (Contd.) • Example of Manufacturing & Production Information systems

14. Systems from a Functional Perspective (Contd.) • Inventory Management System for Manufacturing & Production Information systems This system provides information about available inventory to support production process

15. Systems from a Functional Perspective (Contd.) • Finance & Accounting Systems • Manage firm’s assets: cash, stocks, investments etc. • Manage capitalization of firm and finding new financial assets • Maintain and manage financial records

16. Systems from a Functional Perspective (Contd.) • Example of Finance & Accounting Information systems

17. Systems from a Functional Perspective (Contd.) An Accounts Receivable System

18. Systems from a Functional Perspective (Contd.) • Human Resources Systems • Identify potential employees • Maintain employee records • Track employee skills, job performance, and training • Support planning for employee compensation and career development

19. Systems from a Functional Perspective (Contd.) • Example of Human Resources Information systems

20. Systems from a Functional Perspective (Contd.) • Employee Record Keeping System for HRIS

21. Systems from a constituency perspective • Transaction Processing Systems (TPS) • Management Information Systems (MIS) • Decision-Support Systems (DSS) • Executive Support Systems (ESS)

22. Systems from a constituency perspective (Contd.) • TPS • Basic business systems that serve the operational level • Input: Transactions, events • Processing: Sorting, listing, merging, updating • Output: Detailed reports, lists, summaries • User: Operations personnel, supervisors

23. Systems from a constituency perspective (Contd.) • A Symbolic Representation for a Payroll TPS

24. Systems from a constituency perspective (Contd.) • MIS • Input: High volume transaction level data • Processing: Simple models • Output: Summary reports • User: Middle managers Example: Annual budgeting

25. Systems from a constituency perspective (Contd.) • MIS (continued)

26. Systems from a constituency perspective (Contd.) • MIS (continued) A sample MIS report

27. Systems from a constituency perspective (Contd.) • DSS • Input:Transaction level data • Processing: Interactive • Output: Decision analysis • User: Professionals staff Example: Contract cost analysis

28. Systems from a constituency perspective (Contd.) • ESS • Input: Aggregate data • Processing: Interactive • Output:Projections • User: Senior managers Example: 5 years operating plan

29. Systems from a constituency perspective (Contd.) • ESS (continued) Model of a typical ESS

30. Systems from a constituency perspective (Contd.) • Interrelationship among systems The various types of systems in the organization have interdependencies. TPS are major producers of information that is required by many other systems in the firm, which, in turn, produce information for other systems. These different types of systems are loosely coupled in most business firms, but increasingly firms are using new technologies to integrate information that resides in many different systems.

31. Relationship of Systems to One Another • In contemporary digital firms, the different types of systems are closely linked to one another. In traditional firms these systems tend to be isolated from one another, and information does not flow seamlessly from one end of the organization to the other. Efficiency and business value tend to suffer greatly in these traditional firms.

32. Enterprise Systems • Enterprise Application Architecture

33. Traditional View • Within the business: • There are functions, each having its uses of information systems • Outside the organization’s boundaries: • There are customers and vendors Functions tend to work in isolation

34. View of Enterprise Systems • Enterprise Systems