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Chapter 2
- 1. 2 Chapter Global E-Business: How Businesses Use Information Systems
- 7. The Order Fulfillment Process Figure 2-1 Fulfilling a customer order involves a complex set of steps that requires the close coordination of the sales, accounting, and manufacturing functions. Business Processes and Information Systems Management Information Systems Chapter 2 Global E-Business: How Businesses Use Information Systems
- 10. A Payroll TPS Figure 2-2 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. Types of Business Information Systems Management Information Systems Chapter 2 Global E-Business: How Businesses Use Information Systems
- 13. How Management Information Systems Obtain Their Data from the Organization’s TPS Figure 2-3 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. Types of Business Information Systems Management Information Systems Chapter 2 Global E-Business: How Businesses Use Information Systems
- 14. Sample MIS Report Figure 2-4 This report, showing summarized annual sales data, was produced by the MIS in Figure 2-3. Types of Business Information Systems Management Information Systems Chapter 2 Global E-Business: How Businesses Use Information Systems
- 16. Model of an Executive Support System Figure 2-6 This system pools data from diverse internal and external sources and makes them available to executives in easy-to-use form. Types of Business Information Systems Management Information Systems Chapter 2 Global E-Business: How Businesses Use Information Systems
- 20. Enterprise Application Architecture Figure 2-7 Enterprise applications automate processes that span multiple business functions and organizational levels and may extend outside the organization. Systems That Span the Enterprise Management Information Systems Chapter 2 Global E-Business: How Businesses Use Information Systems
- 22. Enterprise Systems Figure 2-8 Enterprise systems integrate the key business processes of an entire firm into a single software system that enables information to flow seamlessly throughout the organization. These systems focus primarily on internal processes but may include transactions with customers and vendors. Types of Business Information Systems Management Information Systems Chapter 2 Global E-Business: How Businesses Use Information Systems
- 24. Example of a Supply Chain Management System Figure 2-9 Customer orders, shipping notifications, optimized shipping plans, and other supply chain information flow among Haworth’s Warehouse Management System (WMS), Transportation Management System (TMS), and its back-end corporate systems. Types of Business Information Systems Management Information Systems Chapter 2 Global E-Business: How Businesses Use Information Systems
- 26. Salesforce.com Executive Team Dashboard Illustrated here are some of the capabilities of Salesforce.com, a market-leading provider of on-demand customer relationship management (CRM) software. CRM systems integrate information from sales, marketing, and customer service. Types of Business Information Systems Management Information Systems Chapter 2 Global E-Business: How Businesses Use Information Systems
- 34. Organization of the Information Systems Function Figure 2-10 There are alternative ways of organizing the information systems function within the business: within each functional area (A), as a separate department under central control (B), or represented in each division of a large multidivisional company but under centralized control (C). Types of Business Information Systems Management Information Systems Chapter 2 Global E-Business: How Businesses Use Information Systems
- 35. Organization of the Information Systems Function Figure 2-10 (cont) B: A separate department under central control Types of Business Information Systems Management Information Systems Chapter 2 Global E-Business: How Businesses Use Information Systems
- 36. Organization of the Information Systems Function Figure 2-10 (cont) C: Represented in each division of a large multidivisional company but under centralized control Types of Business Information Systems Management Information Systems Chapter 2 Global E-Business: How Businesses Use Information Systems
- 37. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Hinweis der Redaktion
- This chapter is designed to provide students quick overview of the kinds of systems found in a typical corporation. Some of the concepts were introduced in Chapter 1. You could ask students to recall and describe the different levels of management in a business, intranets, and business processes using information from the previous chapter. Some are new – like enterprise wide systems.
- Ask students what their impressions are of e-business, e-commerce, and e-government, and how they might be different.
- Prior to introducing this case, you could ask students whether they think it might be possible to buy a car for only $2,500. Then, after reviewing the Tata Nano case, emphasize the role of information systems in making such a car possible. What kind of market do students think this type of car would have? Consider the “product development cycle” as a business process and ask the students how this cycle was improved using the Dassault system.
- Business processes are at the heart of every business. Ask students if they can give any examples of business processes that they come in contact with everyday. This could include anything from ordering a hamburger at McDonalds, to applying for a driver’s license at the DMV. Emphasize that studying a firm’s business processes is an excellent way to learn a great deal about how that business actually works. How could a business process be a liability? Think of some dysfunctional business processes or ask the students to come up with some really poor business process.
- Other examples include checking the product for quality (manufacturing and production), selling the product (sales and marketing), paying creditors (finance and accounting), and evaluating job performance (human resources). You could ask students to contribute other examples of business processes and describe which of the four types they are.
- Emphasize that each rectangle represents one part of the larger business process of order fulfillment. Notice that this business process spans more than one type mentioned on the previous slide.
- Examples of entirely new business processes made possible by information technology are downloading a song from iTunes or buying a book from Amazon. You might also mention the Amazon book reader Kindle which is continuously connected to the Internet and allows customers to download books and pay for them using Amazon’s one click purchase method. Ask students if they can name any other similar processes.
- The purpose of these systems is to answer routine questions about the flow of transactions through the organization. These systems are a necessity for any business.
- Note that the outputs of the payroll system are useful not only within the company to managers, but also to regulatory agencies and other entities relying on the accuracy of the reported data.
- Emphasize to students that management information systems is a specific category of information systems for middle management. It has the same name, but a very different meaning from the term introduced in Chapter 1 (the study of information systems in business and management). In other words, the study of management information systems involves looking at all the systems used in business. An MIS system is a specific type of an IS. It’s easy to get the two confused.
- You could ask whether or not students understand what is meant by nonroutine decision making, as opposed to routine decision making, and why DSS are specifically designed to assist managers in making that type of decision. Ask students for examples of non-routine decisions they make.
- Emphasize the relationship between TPS and MIS here. MIS receive data from an organization’s TPS systems and create outputs that management can use to make strategic decisions.
- This graphic represents the “reports” portion of the previous figure, 2-3. Emphasize this to students, perhaps referencing that slide again to drive home that point. Students may not understand the decimals in the “ACTUAL versus PLANNED” category, where anything above 1.00 represents more sales than planned and anything less represents a disappointing result of fewer sales than planned.
- Emphasize the connection between ESS, MIS, and DSS. ESS rely on accurate inputs from a firm’s MIS and DSS to provide useful information to executives. These systems should not exist in isolation from one another. If they are isolated from each other, it is a kind of organizational dysfunction, probably inherited from the past.
- The digital dashboard is a common feature of modern-day ESS. Emphasize that a critical feature of ESS is ease of use and simplicity of display. Executives using an ESS want quick access to the most critical data affecting their firm.
- This slide is a recap of the previous slides describing these types of systems. In a constituency perspective, systems are distinguished on the basis of who uses the system– operational managers, middle management, senior management. Systems are often designed to fit the specific needs of each of these groups in a firm. These groups form “constituencies” that CIOs must appeal to for support.
- This slide once again emphasizes the relationship between different types of systems, but explain that actually achieving such a high level of integration is rare. You could ask students to offer reasons why it might be difficult to do this.
- Enterprise applications are used to manage the information used in the systems discussed previously. In other words, enterprise applications are used to ensure that TPS, MIS, DSS, and ESS work together smoothly.
- Representing an integrated enterprise system in a single graphic is very difficult. The basic point is that enterprise systems are very large and diverse databases that pull information from many parts of the firm, and many systems, and then dispense that information to a very wide variety of groups. This is precisely their advantage: one system, one company, one world. The multi-colored triangle represents an organization – the ovals represent the business functions and organizational levels affected by enterprise applications. The horizontal oval extends outside of the triangle because even business functions involving outside entities may be automated by enterprise applications.
- This slide emphasizes the singularity of enterprise systems (one system) that does everything – or most everything– and serves a wide variety of groups and purposes in the firm.
- Emphasize the central repository used in enterprise systems for all types of information collected and used by the business. Ask students what the difficulties of creating such a system might be (standardization across many business units, size of the system).
- Emphasize that SCM systems are interorganizational systems, automating the flow of information across organizational boundaries. This distinction is important because SCM systems must be designed with the business processes of potential partners and suppliers in mind.
- This example of Haworths supply chain management system features ‘middleware’ that connects company warehouses to its distributors. That way, both groups are able to get up-to-the-minute information about the stock of particular goods in their own warehouses as well as their partner’s.
- CRM systems are extremely important for both marketing and customer service. You could ask students if they’ve ever filled out a survey for a company. Then connect that to information systems, perhaps explaining that the information they entered was provided as input to a CRM system for analysis.
- Salesforce is a pioneer of the software-as-a-service business model, under which they provide their CRM services online to companies without proprietary CRM systems or companies looking to acquire useful marketing information at a reduced cost. Ask students if they can think of other Saas applications. How about iTunes? Photobucket.com, or a social network like MySpace. What kinds of applications can they find at these consumer sites?
- The idea that business firms are repositories of knowledge may be new to many students. Ask students for examples of firm knowledge, for instance, the knowledge required to run a fast food restaurant, or the knowledge required to operate a Web site like Amazon. Explain that knowledge management systems are useful for helping a firm’s employees understand how to perform certain business processes or how to solve problems. What might the consequences be for a firm with poor knowledge management systems?
- Intranets and extranets are technology platforms more so than applications, but they are critical to the function of all enterprise applications. Emphasize the ability of intranets to connect to a company’s TPS and related systems.
- What are some of the unique benefits of extranets compared to intranets?
- ‘ Interaction’ jobs refer to jobs in which talking, e-mailing, presenting, or persuading other people is the primary value-adding activity. Each of the listed systems make interaction with others easier in some way. Students are bound to be familiar with each of these methods, so ask them to give some examples of each. Do students see themselves as headed for an interaction job?
- You could ask students to describe some common business processes conducted or made possible using the Internet. Examples include advertising, customer support, and payment. E-government is the ability of government to provide information and services via the Internet to individuals and businesses. Ask students for examples or use your podium computer to illustrate a state or local government Web site.
- Defined simply, the information systems department of a firm is responsible for coordinating all of the systems previously mentioned in this chapter. You could also mention to users that end users play a prominent role in how information systems are designed as well as the role that the information systems department plays in a firm.
- You could ask students why small firms might be less likely to simply have smaller information systems groups as opposed to none at all. As a company gets larger and larger, the information systems get progressively more complicated and require more effort to maintain. Students may be interested to learn that this is why extremely large companies (“Fortune 1000”) might even have multiple information systems departments that deal with individual segments of the firm.
- This slide and the next two slides depict different methods of organizing the information systems function. In this organization each functional area of the business is monitored by distinct information systems departments.
- Under this organization, the information systems department is a unified department (shown here furthest to the right as VP CIO Information Systems) under the control of the CEO and Board of Directors.
- In this organization, usually found in very large companies, separate divisions each have their own information systems department dedicated to that division alone. These divisional groups are still centrally controlled. Ask students to explain what type of firm is best suited to each configuration.