Chapter 2: Global E-business and collaboration

Functional Area: Manufacturing and production

business process: -assembling the product -checking for quality -producing bills and material

Employees that assist with paperwork at all levels of the firm are called

data workers

How IT Enhances Business Processes

-Automation of manual processes -Change the flow of information -Replace sequential processes with simultaneous activity -Transform how a business works -Drive new business models

Five Basic Business Entities

1). Suppliers 2). Customers 3). Employees 4). Invoices/payments 5). Products and services

Systems for different management groups

A business firm has systems to support decision making and work activities at different levels of organization, which includes Transaction processing systems and systems for business intelligence

Transaction processing systems

A computerized system that performs and record the daily routine transactions necessary to conduct business such as a sales order entry, hotel reservation, payroll, employee record-keeping and shipping -answer routine questions Monitor status of internal operations and firms relationship with external environment - highly central to business operations and processes -Operational Management need systems that keep track of elementary activities and transactions of the organization such a sales receipt cash deposit payroll credit decisions and the flow of materials in the factory

Basic Business Functions

Business: formal organization that makes products or provides a service in order to make a profit Four basic business functions: -Manufacturing and production -Sales and marketing -Finance and accounting -Human resources

____ 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

CRM systems

________ support making decisions that are unique, rapidly changing, and not easily specified in advance

DSS

Systems for business intelligence

Data and software tools for organizing analyzing and providing access to data to help managers and other engrossed enterprise uses to make informed decisions; all levels of management

type of systems could be used to enable different firms to work collaboratively on a product

Extranet

Managing a Business and Firm Hierarchies

Firms coordinate work of employees by developing hierarchy in which authority is concentrated at top: -Senior management (makes long range strategic decisions about products and services and ensures financial performance of the firm) -Middle management (carries out the programs and plans of senior management) Knowledge workers (engineers, scientists, or architects, design products or servieces and create knowlegde for the firm) -Operational management (responsible for monitoring the daily activities of the business) Data workers ( secretaries, or clerks assit with admin work at all levels of the firm) Production or service workers (produce the product and deliver the service) Each group has different needs for information.

the business environment

Global environment factors -technology and science -economy -politics -International change immediate environment factors -customers -suppliers -competitors -regulations -stockholders

Executive support systems

Help senior managers -Address strategic and long term trends & non routine - draw summarized info from MIS, DSS, and data from external events -Use portal with web interface or digital dashboard top present content

Enterprise systems (ERP)

Integrate business processes that span multiple business functions and organizational levels Enable mangers to assemble overall view of operations

Business Processes

Logically related set of tasks that define how specific business tasks are performed (ways in work, info,and knowledge are coordinated in a specific organization) -The tasks each employee performs, in what order, and on what schedule (EX: Steps in hiring an employee) -Some processes tied to functional area (EX: Sales and marketing: identifying customers hr: responsible for hiring) -Some processes are cross-functional Fulfilling customer order

) A relocation control system that reports summaries on the total moving, house-hunting, and home financing costs for employees in all company divisions would fall into the category of a/an

MIS

Decision support systems (DSS)

Nonroutine Focus on problems that are unique and rapidly changing for which the procedure for arriving at a solution may not be fully predefinied in advance - often use external info as well from TPS and MIS -Model driven DSS (voltage estimating systems ; calculates financial and technical voyage details) -data driven dss (extract useful info from massive quantities of data use special software to analyze these data to determine the value, revenue,etc)

Management information systems (MIS)

Routine Provide middle managers with reports about The organization's current performance -information to Monitor and control of the business and predict future performance Summarize and reports on basic operations using data from TPS - provides weekly, monthly, annual results but May enable drilling down into daily or hourly data -typically not very flexible systems with little analytical capability

Enterprise applications

Systems that span functional areas, focus on executing business processes across the business firm, and includes all levels of management

Functional Area: Human resources

business process: -hiring employees -evaluating employees job performance -enrolling employees in benefits plans

Functional Area: Sales and marketing

business process: -identifying customers -making customers aware of the product -selling the product

Functional Area: Finance and accounting

business process: -paying creditors -creating financial statements -managing cash accounts

The use of digital technology and the Internet to execute the major business processes in the enterprise is called

e-business

The role of info systems in a business

firms invest in info 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

Suppliers, customers, employees, products and services, and ___ are the five basic components with which businesses must deal

invoices and payments

Engineers and scientists are examples of

knowledge workers

the goal of social commerce applications is to

share opinions about purchasing products or services

A computerized system that performs and records the daily activities necessary to conduct business is classified as a(n)

transaction processing system