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Management Information SystemsMANAGING THE DIGITAL FIRM, 12TH EDITION, GLOBAL EDITIONGLOBAL E-BUSINESS AND COLLABORATIONChapter 2VIDEO CASESCase 1: How FedEx Works: Enterprise SystemsCase 2: Oracles Austin Data Center Instructional Video 1: FedEx Improves Customer Experience with Integrated Mapping and Location DataManagement Information SystemsCHAPTER 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 Pearson Education 20122Management Information SystemsCHAPTER 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.) Pearson Education 20123Management Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION Problem: Using IT to win the Americas 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 boats sensor data. Demonstrates ITs role in fostering innovation and improving performance. Illustrates the benefits of using data analysis and IT to improve productsAmericas Cup 2010: USA Wins with Information Technology Pearson Education 20124Management Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION Business processes:Workflows of material, information, knowledgeSets of activities, stepsMay be tied to functional area or be cross-functional Businesses: Can be seen as collection of business processes Business processes may be assets or liabilitiesBusiness Processes and Information Systems Pearson Education 20125Management Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION Examples of functional business processes Manufacturing and production Assembling the product Sales and marketing Identifying customers Finance and accounting Creating financial statements Human resources Hiring employeesBusiness Processes and Information Systems Pearson Education 20126Management Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONBusiness Processes and Information SystemsThe Order Fulfillment ProcessFulfilling a customer order involves a complex set of steps that requires the close coordination of the sales, accounting, and manufacturing functions.FIGURE 2-1 Pearson Education 20127Management Information SystemsCHAPTER 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 manual2. 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 makingBusiness Processes and Information Systems Pearson Education 20128Management Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION Transaction processing systems Perform and record daily routine transactions necessary to conduct business Examples: sales order entry, payroll, shipping Allow managers to monitor status of operations and relations with external environment Serve operational levels Serve predefined, structured goals and decision makingTypes of Information Systems Pearson Education 20129Management Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONTypes of Information SystemsA Payroll TPSA 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 Pearson Education 201210Management Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION Management information systemsServe middle managementProvide reports on firms current performance, based on data from TPSProvide answers to routine questions with predefined procedure for answering themTypically have little analytic capabilityTypes of Information Systems Pearson Education 201211Management Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONTypes of Information SystemsHow Management Information Systems Obtain Their Data from the Organizations TPSIn 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 Pearson Education 201212Management Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONTypes of Information SystemsSample MIS ReportThis report, showing summarized annual sales data, was produced by the MIS in Figure 2-3.FIGURE 2-4 Pearson Education 201213Management Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION Decision support systems Serve middle management Support non-routine decision making Example: What is impact on production schedule if December sales doubled? Often use external information as well from TPS and MIS Model driven DSS Voyage-estimating systems Data driven DSS Intrawests marketing analysis systemsTypes of Information Systems Pearson Education 201214Management Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONTypes of Information SystemsVoyage-Estimating Decision Support SystemThis DSS operates on a powerful PC. It is used daily by managers who must develop bids on shipping contracts.FIGURE 2-5 Pearson Education 201215Management Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION Business intelligenceClass of software applicationsAnalyze current and historical data to find patterns and trends and aid decision-makingUsed in systems that support middle and senior management Data-driven DSS Executive support systems (ESS)Types of Information Systems Pearson Education 201216Management Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION Executive support systems Support senior management Address non-routine decisions Requiring judgment, evaluation, and insight Incorporate data about external events (e.g. new tax laws or competitors) as well as summarized information from internal MIS and DSS Example: Digital dashboard with real-time view of firms financial performance: working capital, accounts receivable, accounts payable, cash flow, and inventoryTypes of Information Systems Pearson Education 201217Management Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION Systems from a constituency perspectiveTransaction processing systems: supporting operational level employeesManagement information systems and decision-support systems: supporting managersExecutive support systems: supporting executivesTypes of Information Systems Pearson Education 201218Management Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION Relationship of systems to one anotherTPS: Major source of data for other systemsESS: Recipient of data from lower-level systemsData may be exchanged between systemsIn reality, most businesses systems are only loosely integrated (but they are getting better!) Types of Information Systems Pearson Education 201219Management Information SystemsRead the Interactive Session and discuss the following questionsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION Describe RocketThemes business model and business strategy. What challenges is it facing? What systems have the company used or planned to use to overcome these challenge? What types of systems are they? What role will each play in helping RocketTheme overcome these challenges? What other types of system could help RocketTheme overcome its challenges?Types of Information SystemsROCKETTHEME: THRIVING ON THE WEB Pearson Education 201220Management Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION Enterprise applications Systems for linking the enterprise Span functional areas Execute business processes across firm Include all levels of management Four major applications: Enterprise systems Supply chain management systems Customer relationship management systems Knowledge management systemsTypes of Information Systems Pearson Education 201221Management Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATIONTypes of Information SystemsEnterprise Application ArchitectureEnterprise applications automate processes that span multiple business functions and organizational levels and may extend outside the organization.FIGURE 2-6 Pearson Education 201222Management Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION Enterprise systems Collects data from different firm functions and stores data in single central data repository Resolves problem of fragmented, redundant data sets and systems Enable: Coordination of daily activities Efficient response to customer orders (production, inventory) Provide valuable information for improving management decision makingTypes of Information Systems Pearson Education 201223Management Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION Supply chain management (SCM) systems Manage firms relationships with suppliersShare information aboutOrders, production, inventory levels, delivery of products and servicesGoal: Right amount of products to destination with least amount of time and lowest costTypes of Information Systems Pearson Education 201224Management Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION Customer relationship management 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 Integrate firms customer-related processes and consolidate customer information from multiple communication channelsTypes of Information Systems Pearson Education 201225Management Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION Knowledge management systems (KMS) Support processes for acquiring, creating, storing, distributing, applying, integrating knowledge How to create, produce, distribute products and services Collect internal knowledge and experience within firm and make it available to employees Link to external sources of knowledgeTypes of Information Systems Pearson Education 201226Management Information SystemsCHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION Alternative tools that increase integration and expedite the flow of information Intranets: Internal company Web sites accessible only by employees Extranets: Company Web sites accessible externally only to vendors and suppliers Often used to coordinate supply chainTypes of Information Systems Pearson Education 201227Management Info

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