1、2Chapter STUDENT LEARNING OBJECTIVES What major features of a business are important for understanding the role of information systems?How do systems serve different management groups in a business?How do systems that link the enterprise improve organizational performance?Why are systems for collabo
2、ration and teamwork so important and what technologies do they use?What is the role of the information systems function in a business?STUDENT LEARNING OBJECTIVESVIDEO CASES AND LEARNING TRACKS1.Systems from a Functional Perspective2.IT Enables Collaboration and Teamwork3.Challenges of Using Business
3、 Information Systems4.Organizing the Information Systems FunctionCase 1:Walmarts Retail Link Supply ChainCase 2:S:The Emerging Social EnterpriseCase 3:How FedEx Works:Inside the Memphis Super HubInstructional Video 1:US Foodservice Grows Market with Oracle CRM on DemandTELUS EMBRACES SOCIAL LEARNING
4、 Problem:40 percent of workforce retiring within 10 years,taking essential knowledge and expertise with them Solution:Employ new technologies for sharing and preserving employee experience and knowledge Microsoft SharePoint Server 2010 provided single point of entry to shared knowledge and assets,wi
5、th MySites for employee Web pages and blogs,Expert Search,My Communities for sharing content,and Tube for sharing videos Demonstrates ITs role in fostering community and sharing knowledge Illustrates the benefits of using data analysis and IT to improve corporate knowledgeTELUS EMBRACES SOCIAL LEARN
6、INGTELUS EMBRACES SOCIAL LEARNINGComponents of a Business Four basic business functions Manufacturing and production Sales and marketing Finance and accounting Human resourcesBusiness:formal organization that makes products or provides a service in order to make a profitFigure 2-1Every business,rega
7、rdless of its size,must perform four functions to succeed.It must produce the product or service;market and sell the product;keep track of accounting and financial transactions;and perform basic human resources tasks,such as hiring and retaining employees.Components of a BusinessComponents of a Busi
8、ness Suppliers Customers Employees Invoices/payments Products and services Logically related set of tasks that define how specific business tasks are performedThe tasks each employee performs,in what order,and on what schedule For example:Steps in hiring an employee Some processes tied to functional
9、 areaSales and marketing:identifying customers Some processes a e cross-functionalFulfilling customer orderComponents of a BusinessFigure 2-2Fulfilling a customer order involves a complex set of steps that requires the close coordination of the sales,accounting,and manufacturing functions.Components
10、 of a Business Automation of manual processes Change the flow of information Replace sequential processes with simultaneous activity Transform how a business works Drive new business modelsComponents of a Business Firms coordinate work of employees by developing hierarchy in which authority is conce
11、ntrated at top.Senior management Middle management Operational management Knowledge workers Data workers Production or service workers Each group has different needs for information.Components of a BusinessFigure 2-3Business organizations are hierarchies consisting of three principal levels:senior m
12、anagement,middle management,and operational management.Information systems serve each of these levels.Scientists and knowledge workers often work with middle management.Components of a BusinessComponents of a Business Figure 2-4To be successful,an organization must constantly monitor and respond too
13、r even anticipatedevelopments in its environment.A firms environment includes specific groups with which the business must deal directly,such as customers,suppliers,and competitors as well as the broader general environment,including socioeconomic trends,political conditions,technological innovation
14、s,and global events.Components of a Business Firms invest in information systems in order to:Achieve operational excellence.Develop new products and services.Attain customer intimacy and service.Improve decision making.Promote competitive advantage.Ensure survival.Components of a Business Transactio
15、n processing systems(TPS)Keep track of basic activities and transactions of organization Systems for business intelligence Address decision-making needs of all levels of management Management information systems(MIS)Decision support systems(DSS)Executive support systems(ESS)Types of Business Informa
16、tion Systems Transaction processing systems:Serve operational managers.Principal purpose is to answer routine questions and to track the flow of transactions through the organization.For example:inventory questions,granting credit to customer Monitor status of internal operations and firms relations
17、hip with external environment.Major producers of information for other systems.Highly central to business operations and functioning.Types of Business Information SystemsFigure 2-5A TPS for payroll processing captures employee payment transaction data(such as a timecard).System outputs include onlin
18、e and hard copy reports for management and employee paychecks.Types of Business Information Systems Management information systems:Provide middle managers with reports on firm s performance,to help monitor firm and predict future performance.Summarize and report on basic operations using data from T
19、PS.Provide weekly,monthly,annual results,but may enable drilling down into daily or hourly data.Typically not very flexible systems with little analytic capability.Types of Business Information SystemsFigure 2-6Types of Business Information SystemsTypes of Business Information SystemsFigure 2-7This
20、report,showing summarized annual sales data,was produced by the MIS in Figure 2-6.Decision support systems(DSS):Serve middle managers.Support nonroutine decision makingExample:What is impact on production schedule if December sales doubled?Often use external information as well from TPS and MIS Mode
21、l driven DSSVoyage-estimating systems Data driven DSSIntrawests marketing analysis systemsTypes of Business Information SystemsTypes of Business Information SystemsFigure 2-8This DSS operates on a powerful PC.It is used daily by managers who must develop bids on shipping contracts.Types of Business
22、Information Systems Executive support systems(ESS):Serve senior managers.Address strategic issues and long-term trends.For example:what products should we make in five years?Address nonroutine decision making.Provide generalized computing capacity that can be applied to changing array of problems.Dr
23、aw summarized information from MIS,DSS,and data from external events.Typically use portal with Web interface,or digital dashboard,to present contentTypes of Business Information SystemsA digital dashboarddelivers comprehensiveand accurate informationfor decision makingoften using a singlescreen.The
24、graphicaloverview of key performanceindicators helpsmanagers quicklyspot areas that needattention.Types of Business Information SystemsTypes of Business Information Systems Enterprise applications Systems that span functional areas,focus on executing business processes across the firm,and include al
25、l levels of management Four major types1.Enterprise systems2.Supply chain management systems3.Customer relationship management systems4.Knowledge management systemsTypes of Business Information SystemsFigure 2-9Enterprise applications automate processes that span multiple business functions and orga
26、nizational levels and may extend outside the organization.Types of Business Information Systems Also called enterprise resource planning(ERP)systems.Integrate data from key business processes into single system.Speed communication of information throughout firm.Enable greater flexibility in respondi
27、ng to customer requests,greater accuracy in order fulfillment.Enable managers to assemble overall view of operations.Types of Business Information Systems Manage relationships with suppliers,purchasing firms,distributors,and logistics companies.Manage shared information about orders,production,inven
28、tory levels,and so on.Goal is to move correct amount of product from source to point of consumption as quickly as possible and at lowest cost Type of interorganizational system:Automating flow of information across organizational boundariesTypes of Business Information Systems Help manage relationsh
29、ip with customers.Coordinate business processes that deal with customers in sales,marketing,and customer service Goals:Optimize revenue Improve customer satisfaction Increase customer retention Identify and retain most profitable customers Increase salesTypes of Business Information Systems Manage p
30、rocesses for capturing and applying knowledge and expertise.Collect relevant knowledge and make it available wherever needed in the enterprise to improve business processes and management decisions.Link firm to external sources of knowledge.Types of Business Information Systems Technology platforms
31、that increase integration and expedite the flow of information Intranets:Internal networks based on Internet standardsOften are private access area in companys Web site Extranets:Company Web sites accessible only to authorized vendors and suppliersFacilitate collaborationTypes of Business Informatio
32、n Systems E-business:Use of digital technology and Internet to drive major business processes E-commerce:Subset of e-businessBuying and selling goods and services through Internet E-government:Using Internet technology to deliver information and services to citizens,employees,and businessesTypes of
33、Business Information SystemsSystems for Collaboration and Teamwork Growing importance of collaboration:Changing nature of work Growth of professional work Changing organization of the firm Changing scope of the firm Emphasis on innovation Changing culture of work and businessSystems for Collaboratio
34、n and Teamwork Use of social networking platforms to engage employees,customers,suppliers Conversations to strengthen bonds Requires information transparency Seen as way to drive operational efficiency,spur innovation,accelerate decision makingSystems for Collaboration and TeamworkInvestment in coll
35、aboration technology can return large rewards,especially in sales and marketing,research and developmentProductivity:Sharing knowledge and resolving problemsQuality:Faster resolution of quality issuesInnovation:More ideas for products and servicesCustomer service:Complaints handled more rapidlyFinan
36、cial performance:Generated by improvements in factors aboveSystems for Collaboration and TeamworkFigure 2-10Requirements for CollaborationSuccessful collaborationrequires an appropriateorganizational structureand culture,along withappropriate collaborationtechnology.Systems for Collaboration and Tea
37、mwork E-mail and instant messaging(IM)Wikis Virtual worlds Collaboration and social business environments Virtual meeting systems(telepresence)Cloud collaboration services Google Drive,MS SkyDrive Microsoft SharePoint Lotus Notes Enterprise social networking toolsSystems for Collaboration and Teamwo
38、rkThe Time/SpaceCollaboration ToolMatrixCollaboration technologiescan be classified interms of whether theysupport interactions atthe same or differenttime or place,andwhether these interactionsare remote or colocated.Figure 2-11Systems for Collaboration and TeamworkEvaluating and Selecting Collabor
39、ation Software Tools1.What are your firms collaboration challenges?2.What kinds of solutions are available?3.Analyze available products cost and benefits.4.Evaluate security risks.5.Consult users for implementation and training issues.6.Select candidate tools and evaluate vendors.The Information Sys
40、tems Function in Business Programmers Systems analystsPrinciple liaisons to rest of firm Information systems managersLeaders of teams of programmers and analysts,project managers,physical facility managers,telecommunications managers,database specialists,managers of computer operations,and data entr
41、y staff Senior managers:CIO,CPO,CSO,CKO End usersThe Information Systems Function in Business Computing services Telecommunications services Data management services Application software services Physical facilities management services IT management services IT standards services IT educational services IT research and development services
