Professional Documents
Culture Documents
Learning objectives
Define and describe business processes and their relationship to
information systems.
2. Information systems and Evaluate the role played by systems serving the various levels of
management in a business and their relationship to each other.
Alexander Nikov
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Examples of functional business processes Organizing a Business:
Basic Business Functions
Five basic business entities:
Suppliers
Customers
Employees
Invoices/payments
Products and services
Table 2.1
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Figure 2-1
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Informationtechnologyenhancesbusiness
processesintwomainways: Outline
1. Increasingefficiencyofexistingprocesses
Automatingstepsthatweremanual 1. Business Processes and Information Systems
2. Enablingentirelynewprocesses
Changeflowofinformation 2. Types of Information Systems
Replacesequentialstepswithparallelsteps
Eliminatedelaysindecisionmaking 3. The Information Systems Function in Business
Supportnewbusinessmodels
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A Payroll TPS Business intelligence and
Business intelligence systems
Figure 2-2
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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. Figure 2-3
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Sample MIS Report Decisionsupportsystems(DSS)
Servemiddlemanagement
Supportnonroutinedecisionmaking
Example:Whatisimpactonproductionscheduleif
This report,
Decembersalesdoubled?
showing
summarized OftenuseexternalinformationaswellfromTPSandMIS
annual sales ModeldrivenDSS
data, was
produced by
Voyageestimatingsystems
the MIS in DatadrivenDSS
Figure 2-3. Intrawestsmarketinganalysissystems
Supportseniormanagement
This DSS Addressnonroutinedecisions
operates on a
powerful PC. It is Requiringjudgment,evaluation,andinsight
used daily by Incorporatedataaboutexternalevents(e.g.newtax
managers who lawsorcompetitors)aswellassummarizedinformation
must develop bids
frominternalMISandDSS
on shipping
contracts. Example:Digitaldashboardwithrealtimeviewoffirms
financialperformance:workingcapital,accounts
receivable,accountspayable,cashflow,andinventory
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Systemsfromaconstituencyperspective Relationshipofsystemstooneanother
TPS:Majorsourceofdataforothersystems
Transactionprocessingsystems:supporting
operationallevelemployees ESS:Recipientofdatafromlowerlevelsystems
Managementinformationsystemsanddecision Datamaybeexchangedbetweensystems
supportsystems:supportingmanagers Inreality,mostbusinessessystemsareonlyloosely
Executivesupportsystems:supportingexecutives integrated(buttheyaregettingbetter!)
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Types of Information Systems Enterprise applications
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Collectsdatafromdifferentfirmfunctionsandstores
Enterprise datainsinglecentraldatarepository
applications
automate processes
Resolvesproblemoffragmented,redundantdatasets
that span multiple andsystems
business functions Enable:
and organizational
levels and may Coordinationofdailyactivities
extend outside the Efficientresponsetocustomerorders(production,
organization. inventory)
Providevaluableinformationforimproving
managementdecisionmaking
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Figure 2-6 32 Prentice Hall 2011
Supply Chain Management Systems Customer Relationship Management Systems
Manage firms relationships with suppliers Provide information to coordinate all of the business
Share information about processes that deal with customers
Orders, production, inventory levels, Sales
Marketing
delivery of products and services
Customer service
Goal: Helps firms identify, attract, and retain most profitable
Right amount of products to destination with customers
least amount of time and lowest cost
E.g., Saab CRM applications to achieve 360 degree view of
customers resulted in greater follow-up rate on sales leads
and increased customer satisfaction.
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E-Business, E-Commerce, and E-Government
Outline
E-business:
Use of digital technology and Internet to drive major business
processes
E-commerce:
1. Business Processes and Information Systems
Subset of e-business
2. Types of Information Systems
Buying and selling goods and services through Internet
E-government:
3. The Information Systems Function in Business
Using Internet technology to deliver information and services to
citizens, employees, and businesses
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2.List the types of information systems shown in the video. Can you
describe how systems that were not shown might be used at FedEx?
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1. List the business processes displayed in the video. 2. List the types of information systems shown in
the video. Can you describe how systems that were
not shown might be used at FedEx?
Types of systems included in the video are:
Business processes displayed in the video include: transaction processing systems,
picking up a package, management information systems (at the FedEx air control center,
transporting a package to a hub, MIS monitor the trucks and planes coming and going and the number
processing and sorting a package in a warehouse, of packages being handled).
shipping packages to airports, An executive might receive a report of the days activities via an
processing the package locally, and executive support system.
delivering the package. Customer complaints or questions might be resolved via a customer
relationship management system.
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3. The system displayed in the video is an enterprise 4. How important is technology to
system. Why is this true? Explain your answer. FedEx's business processes?
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