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Lecture on Global E-Business How Business use Information systems

Lecture on Global E-Business How Business use Information systems. www.AssignmentPoint.com. What is E-Business?. E- (Electronic ): means the computer uses electronic components to process information Businesses: Can be seen as collection of business processes

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Lecture on Global E-Business How Business use Information systems

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  1. Lecture on Global E-BusinessHow Business use Information systems www.AssignmentPoint.com www.assignmentpoint.com

  2. What is E-Business? E- (Electronic ):means the computer uses electronic components to process information Businesses: Can be seen as collection of business processes Business processes may be assets or liabilities E-businessrefers to a broader definition of e-commerce, not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, conducting e-learning, and processing electronic transactions. www.assignmentpoint.com

  3. Information Technology Computer technology is encountered in many places today and in many different forms. Information is the act of informing or the condition of being informed, the communication of knowledge derived from study, experience, or instruction Technology is the application of science, especially to industrial or commercial objectives Information Technology (IT) refers to the creation, gathering, processing, storage, and delivery of information and the processes and devices that make this possible. www.assignmentpoint.com

  4. What is a business process? Business processes: • Environmental factors and enterprise applications have forced businesses to examine their processes. • Manner in which work is organized, coordinated and focused to produce a valuable product or service • Concrete work flows of material, information, and knowledge—sets of activities • Information systems help organizations • Achieve great efficiencies by automating parts of processes • Rethink and streamline processes www.assignmentpoint.com

  5. Examples of Business Processes • Manufacturing and production: • Assembling product, checking quality, producing bills of materials • Sales and marketing: • Identifying customers, creating customer awareness, selling • Finance and accounting: • Paying creditors, creating financial statements, managing cash accounts • Human Resources: • Hiring employees, evaluating performance, enrolling employees in benefits plans www.assignmentpoint.com

  6. Examples: How IT Changes Business Process • Ordering a book • Tracking a package • Trading stocks • Paying bills • Developing a photograph • Designing an airplane/car • Registering for a class • Capturing and sharing employee knowledge www.assignmentpoint.com

  7. Integrating Functions & Business Processes: • Cross-Functional Business Processes: • Transcend boundary between sales, marketing, manufacturing, and research and development • Group employees from different functional specialties to a complete piece of work • Example: Order Fulfillment Process www.assignmentpoint.com

  8. The Order Fulfillment Process Figure 2-1 www.assignmentpoint.com

  9. What Are Information Systems? • An information system (IS) is a set of interrelated components working together to (1) facilitate operational functions and (2) support management decision making by producing information that enables managers to plan and control. • Components include hardware, software, data, people, and procedures • An (IS) is an organizational and management solution based on information technology to a challenge posed by the environment • Information technology (IT) includes computer hardware, software, storage technologies, and telecommunications/networks www.assignmentpoint.com

  10. Basic Functions of Information Systems • Information systems are models 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 www.assignmentpoint.com

  11. MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS • Transaction Processing Systems (TPS) • Management Information Systems (MIS) • Decision Support Systems (DSS) • Executive Support Systems (ESS) www.assignmentpoint.com

  12. Ways to Categorize Information Systems • By the groups they serve • Operational level • Management level • Strategic level • By functional area • Sales and marketing • Manufacturing and production • Finance and accounting • Human resources www.assignmentpoint.com

  13. The Four Major Types of Information Systems by the Groups They Serve & Functional Area www.assignmentpoint.com

  14. Transaction Processing Systems (TPS) • Basic business systems that serve the operational level • A computerized system that facilitates daily routine transactions necessary to the conduct of the business and captures and stores data associated with the transaction www.assignmentpoint.com

  15. A Symbolic Representation for a Payroll TPS www.assignmentpoint.com

  16. Management Information System (MIS) MIS serve the management level of the organization, providing managers with reports and online access to the organization’s current performance and historical records. • Inputs: High-volume data • Processing: Simple models • Outputs: Summary reports • Users: Middle managers Example: Annual budgeting www.assignmentpoint.com

  17. Management Information Systems (MIS) (continued) www.assignmentpoint.com

  18. Decision Support System (DSS) DSS serve the management level and help managers make decision that are unique, rapidly changing, and not easily specified in advance (use of mathematical models) • Inputs: Low-volume data • Processing: Interactive (e.g., what-if analysis), data-mining, OLAP • Outputs: Decision analysis • Users: Professionals, staff Example: Contract cost analysis www.assignmentpoint.com

  19. Decision-Support Systems (DSS) (Continued) Voyage-estimating decision-support system www.assignmentpoint.com

  20. Executive Support System (ESS) ESS support strategic level managers to help make decisions that are non-routine requiring judgment, evaluation, and insight. • Inputs: Aggregate data • Processing: Interactive • Outputs: Projections • Users: Senior managers Example: 5-year operating plan www.assignmentpoint.com

  21. Executive Support System (ESS) • Top level management • Designed to the individual • Ties CEO to all levels • Very expensive to keep up • Extensive support staff www.assignmentpoint.com

  22. Model of a Typical Executive Support System www.assignmentpoint.com

  23. Interrelationships Among Systems • TPS are typically a major source of data for other systems • MIS are sources for DSS and ESS • DSS is a source for ESS • Sometimes a single system serves many purposes • In contemporary digital firms, the different types of systems are closely linked to one another. This is the ideal. 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. www.assignmentpoint.com

  24. Relationship of Systems to One Another Interrelationships among systems www.assignmentpoint.com

  25. Organizing Systems by Functional Area • Sales and marketing • Manufacturing and production • Finance and accounting • Human resources www.assignmentpoint.com

  26. Sales and Marketing Systems • Major functions of systems: • Sales management, market research, promotion, pricing, new products • Major application systems: • Sales order info system, market research system, pricing system www.assignmentpoint.com

  27. SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL Order processing Enter, process, and track orders Operational Pricing analysis Determine prices for products and services Management Sales trend forecasting Prepare 5-year sales forecasts Strategic Sales and Marketing Systems www.assignmentpoint.com

  28. Manufacturing and Production Systems • Major functions of systems: • Scheduling, purchasing, shipping, receiving, engineering, operations • Major application systems: • Materials resource planning systems, purchase order control systems, engineering systems, quality control systems www.assignmentpoint.com

  29. SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL Machine control Control the actions of machines and equipment Operational Production planning Decide when and how many products should be produced Management Facilities location Decide where to locate new production facilities Strategic Manufacturing and Production Systems www.assignmentpoint.com

  30. Overview of an Inventory System www.assignmentpoint.com

  31. Financing and Accounting Systems • Major functions of systems: • Budgeting, general ledger, billing, cost accounting • Major application systems: • General ledger, accounts receivable, accounts payable, budgeting, funds management systems www.assignmentpoint.com

  32. Financing & Accounting Systems (Continued) SYSTEM DESCRIPTION ORGANIZATION-AL LEVEL Accounts receivable Tracks money owed the firm Operational Budgeting Prepares short-term budgets Management Profit planning Plans long-term profits Strategic www.assignmentpoint.com

  33. Human Resource Systems • Major functions of systems: • Personnel records, benefits, compensation, labor relations, training • Major application systems: • Payroll, employee records, benefit systems, career path systems, personnel training systems www.assignmentpoint.com

  34. SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL Training and development Tracks employee training, skills, and performance appraisals Operational Compensation analysis Monitors the range and distribution of employee wages, salaries, and benefits Management Human resources planning Plans the long-term labor force needs of the organization Strategic Human Resource Systems (Continued) www.assignmentpoint.com

  35. Human Resource Systems (Continued) An Employee Recordkeeping System www.assignmentpoint.com

  36. Organizational Challenges • E-commerce, e-business, and global competition force companies to bring products to market faster, improve customer service, and execute processes more efficiently. • These objectives require integrated information from different functional areas, levels of management, and coordination with business partners (e.g., customers and suppliers). www.assignmentpoint.com

  37. Overcome the Challenges: • Solution • Enterprise applications that coordinate, activities, and knowledge across intra- and inter- firm boundaries • Inter organizational systems that automate information flows across organizational boundaries (an inter-firm system) www.assignmentpoint.com

  38. Systems for Enterprise-Wide Process Integration • Enterprise applications: • Designed to support organization-wide process coordination and integratio • Consist of : • Enterprise systems • Supply chain management systems • Customer relationship management systems • Knowledge management systems www.assignmentpoint.com

  39. 1. Enterprise System • Enterprise systems, also known as enterprise resource planning (ERP) systems, provide a single information system for organization-wide coordination and integration of key business processes. • Information that was previously fragmented in different systems can seamlessly flow throughout the firm so that it can be shared by business processes in manufacturing, accounting, human resources, and other areas. www.assignmentpoint.com

  40. Traditional View of Systems www.assignmentpoint.com

  41. Enterprise Systems www.assignmentpoint.com

  42. Benefits of Enterprise System • Help to unify the firm’s structure and organization: One organization • Management: Firm wide knowledge-based management processes • Technology: Unified platform • Business: More efficient operations & customer-driven business processes www.assignmentpoint.com

  43. Challenges of Enterprise Systems • Difficult to build: Require fundamental changes in the way the business operates • Technology: Require complex pieces of software and large investments of time, money, and expertise • Centralized organizational coordination and decision making: Not the best way for the firms to operate www.assignmentpoint.com

  44. 2. Supply Chain Management (SCM) • Close linkage and coordination of activities involved in buying, making, and moving a product • Integrates supplier, manufacturer, distributor, and customer logistics time • Reduces time, redundant effort, and inventory costs • Network of organizations and business processes www.assignmentpoint.com

  45. 2. Supply Chain Management (SCM) • Helps in procurement of materials, transformation of raw materials into intermediate and finished products • Helps in distribution of the finished products to customers • Includes reverse logistics - returned items flow in the reverse direction from the buyer back to the seller www.assignmentpoint.com

  46. www.assignmentpoint.com

  47. Information from Supply Chain Management Systems helps firms: • Decide when and what to produce, store, and move • Rapidly communicate orders • Track the status of orders • Check inventory availability and monitor inventory levels • Reduce inventory, transportation, and warehousing costs • Track shipments • Plan production based on actual customer demand • Rapidly communicate changes in product design www.assignmentpoint.com

  48. 3. Customer Relationship Management (CRM) • Manages all ways used by firms to deal with existing and potential new customers • Both a business and technology discipline • Uses information system to coordinate entire business processes of a firm • Provides end- to- end customer care • Provides a unified view of customer across the company • Consolidates customer data from multiple sources and provides analytical tools for answering questions www.assignmentpoint.com

  49. www.assignmentpoint.com

  50. 4. Knowledge Management Systems • Collects relevant knowledge and make it available wherever and whenever it is needed • Support business processes and management decisions • Also link the firm to external sources of knowledge • Support processes for acquiring, storing, distributing, and applying knowledge www.assignmentpoint.com

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