Managing Information Systems Seventh Canadian Edition. Laudon, Laudon and Brabston. CHAPTER 2 How Businesses Use Information Systems

Transcription

1 Managing Information Systems Seventh Canadian Edition Laudon, Laudon and Brabston CHAPTER 2 How Businesses Use Information Systems Copyright 2015 Pearson Canada Inc. 2-1

2 Business Processes and Information Systems Business processes The manner in which work is organized, coordinated, and focused to produce a valuable product or service Every business is a collection of business processes Information technology enhances business processes increases efficiency of existing processes enables new processes that can transform the business Copyright 2015 Pearson Canada Inc. 2-2

3 How Information Technology Improves Business Processes Business processes: The logically related tasks and behaviours that organizations develop over time to produce specific business results Unique manner in which these activities are organized or created May be tied to functional area or be crossfunctional (e.g. developing a new product) Business processes may be assets or liabilities Copyright 2015 Pearson Canada Inc. 2-3

4 [INSERT TABLE 2.1] Copyright 2015 Pearson Canada Inc. 2-4

5 [INSERT FIGURE 2.1] Copyright 2015 Pearson Canada Inc. 2-5

6 How Information Technology Improves Business Processes 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 employees Copyright 2015 Pearson Canada Inc. 2-6

7 How Information Technology Improves Business Processes 1. Increasing efficiency of existing processes Automating steps that were manual 2. 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 making Copyright 2015 Pearson Canada Inc. 2-7

8 Types of Information Systems 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 making Copyright 2015 Pearson Canada Inc. 2-8

9 [INSERT FIGURE 2.2] Copyright 2015 Pearson Canada Inc. 2-9

10 Systems for Business Intelligence Business Intelligence Systems for Decision Support Business intelligence: data and software tools for organizing, analyzing, and providing access to data to help managers and other enterprise users make more informed decisions. Management Information Systems (MIS) Decision Support Systems (DSS) Executive Support Systems (ESS) Copyright 2015 Pearson Canada Inc. 2-10

11 [INSERT FIGURE 2.3] Copyright 2015 Pearson Canada Inc. 2-11

12 Management Information Systems (MIS) Serve middle management Provide reports on firm s current performance, based on data from TPS Provide answers to routine questions with predefined procedure for answering them Copyright 2015 Pearson Canada Inc. 2-12

13 Decision Support Systems (DSS) Serve middle management Support nonroutine decision making Example: What is impact on production schedule if December sales doubled? Copyright 2015 Pearson Canada Inc. 2-13

14 Executive Support Systems (ESS) Support senior management Address nonroutine decisions requiring judgment, evaluation, and insight Copyright 2015 Pearson Canada Inc. 2-14

15 Systems for Linking the Enterprise Enterprise applications Enterprise systems (ERP) Supply Chain Management Systems (SCM) Customer Relationship Management Systems (CRM) Knowledge Management Systems (KMS) Intranets and Extranets Copyright 2015 Pearson Canada Inc. 2-15

16 Enterprise Systems Also known as enterprise resource planning (ERP) systems Collect data from different functions and store data in single central data repository Resolve problem of fragmented, redundant data Copyright 2015 Pearson Canada Inc. 2-16

17 Supply Chain Management (SCM) systems Manage firm s relationships with suppliers Interorganizational systems Share information about Orders, production, inventory levels, delivery of products and services Goal: Right amount of products to destination with least amount of time and lowest cost Copyright 2015 Pearson Canada Inc. 2-17

18 Customer relationship management (CRM) 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 firm s customer-related processes and consolidate customer information from multiple communication channels Copyright 2015 Pearson Canada Inc. 2-18

19 [INSERT FIGURE 2.6] Copyright 2015 Pearson Canada Inc. 2-19

20 Knowledge management systems (KMS) Support processes for acquiring, creating, storing, distributing, applying, integrating knowledge Collect internal knowledge and link to external knowledge Include enterprise-wide systems for: Managing documents, graphics and other digital knowledge objects Directories of employees with expertise Copyright 2015 Pearson Canada Inc. 2-20

21 Intranets and Extranets Internal networks built with same tools and standards as Internet Used for internal distribution of information to employees May connect to company s transaction systems Copyright 2015 Pearson Canada Inc. 2-21

22 E-Business, e-commerce, and e-government E-business Use of digital technology and Internet to drive major business processes E-commerce Subset of e-business Buying and selling goods and services through Internet Continued Copyright 2015 Pearson Canada Inc. 2-22

23 E-Business, e-commerce, and e-government (cont.) E-government: Using Internet technology to deliver information and services to citizens, employees, and businesses Copyright 2015 Pearson Canada Inc. 2-23

24 Systems for Collaboration and Social Business Interaction jobs a major part of global economy Methods include: Internet-based collaboration environments and instant messaging (IM) Cell phones and smartphones Social networking Wikis Virtual worlds Copyright 2015 Pearson Canada Inc. 2-24

25 What is Social Business? The goal of social business is to deepen interactions with groups inside and outside the firm to expedite and enhance information-sharing, innovation, and decision making. Copyright 2015 Pearson Canada Inc. 2-25

26 [INSERT TABLE 2.2] Copyright 2015 Pearson Canada Inc. 2-26

27 Business Benefits Investments in collaboration technology can produce organizational improvements returning high ROI Benefits: Productivity Quality Innovation Customer service Financial performance Profitability, sales, sales growth Copyright 2015 Pearson Canada Inc. 2-27

28 [INSERT TABLE 2.3] Copyright 2015 Pearson Canada Inc. 2-28

29 Building a Collaborative Culture and Business Processes Command and control organizations No value placed on teamwork or lower-level participation in decisions Collaborative business culture Senior managers rely on teams of employees Policies, products, designs, processes, systems rely on teams Managers purpose is to build teams Copyright 2015 Pearson Canada Inc. 2-29

30 [INSERT Figure 2.8] Copyright 2015 Pearson Canada Inc. 2-30

31 The Information Systems Department Formal organizational unit responsible for information technology services Often headed by chief information officer (CIO) Other senior positions include chief security officer (CSO), chief knowledge officer (CKO), chief privacy officer (CPO) Programmers Continued Copyright 2015 Pearson Canada Inc. 2-31

32 The Information Systems Department (cont.) Systems analysts Information systems managers End users Copyright 2015 Pearson Canada Inc. 2-32

33 Organizing the Information Systems Function IT Governance: Strategies and policies for using IT in the organization Organization of information systems function Centralized, decentralized, etc Copyright 2015 Pearson Canada Inc. 2-33

34 Managing Information Systems Seventh Canadian Edition Laudon, Laudon and Brabston CHAPTER 2 How Businesses Use Information Systems Copyright 2015 Pearson Canada Inc. 2-34