CIS 2200 Chapter 2 Terms
Summary
2-1 What are business processes? How are they related to information systems? A business process is a logically related set of activities that defines how specific business tasks are performed, and it represents a unique way in which an organization coordinates work, information, and knowledge. Managers need to pay attention to business processes because they determine how well the organization can execute its business, and they may be a source of strategic advantage. There are business processes specific to each of the major business functions, but many business processes are cross-functional. Information systems automate parts of business processes, and they can help organizations redesign and streamline these processes. 2-2 How do systems serve the different management groups in a business, and how do systems that link the enterprise improve organizational performance? Systems serving operational management are transaction processing systems (TPS), such as payroll or order processing, that track the flow of the daily routine transactions necessary to conduct business. Management information systems (MIS) produce reports serving middle management by condensing information from TPS, and these are not highly analytical. Decision-support systems (DSS) support management decisions that are unique and rapidly changing using advanced analytical models. All of these types of systems provide business intelligence that helps managers and enterprise employees make more-informed decisions. These systems for business intelligence serve multiple levels of management and include executive support systems (ESS) for senior management that provide data in the form of graphs, charts, and dashboards delivered via portals using many sources of internal and external information. Enterprise applications are designed to coordinate multiple functions and business processes. Enterprise systems integrate the key internal business processes of a firm into a single software system to improve coordination and decision making. Supply chain management systems help the firm manage its relationship with suppliers to optimize the planning, sourcing, manufacturing, and delivery of products and services. Customer relationship management (CRM) systems coordinate the business processes surrounding the firm's customers. Knowledge management systems enable firms to optimize the creation, sharing, and distribution of knowledge. Intranets and extranets are private corporate networks based on Internet technology that assemble information from disparate systems. Extranets make portions of private corporate intranets available to outsiders. 2-3 Why are systems for collaboration and social business so important, and what technologies do they use? Collaboration is working with others to achieve shared and explicit goals. Social business is the use of internal and external social networking platforms to engage employees, customers, and suppliers, and it can enhance collaborative work. Collaboration and social business have become increasingly important in business because of globalization, the decentralization of decision making, and growth in jobs where interaction is the primary value-adding activity. Collaboration and social business enhance innovation, productivity, quality, and customer service. Tools for collaboration and social business include e-mail and instant messaging, wikis, virtual meeting systems, virtual worlds, cloud-based file-sharing services, corporate collaboration systems such as Microsoft SharePoint and IBM Notes, and enterprise social networking tools such as Chatter, Yammer, Jive, and IBM Connections. 2-4 What is the role of the information systems function in a business? The information systems department is the formal organizational unit responsible for information technology services. It is responsible for maintaining the hardware, software, data storage, and networks that comprise the firm's IT infrastructure. The department consists of specialists, such as programmers, systems analysts, project leaders, and information systems managers, and is often headed by a CIO.
Business Intelligence
Applications and technologies to help users make better business decisions.
transaction processing systems (tps)
Computerized systems that perform and record the daily routine transactions necessary to conduct the business; they serve the organization's operational level.
digital dashboard
Displays all of a firm's key performance indicators as graphs and charts on a single screen to provide one-page overview of all the critical measurements necessary to make key executive decisions.
Customer Relationship Management (CRM)
Information systems that track all the ways in which a company interacts with its customers and analyze these interactions to optimize revenue, profitability, customer satisfaction, and customer retention.
Enterprise Systems
Integrated enterprise-wide information systems that coordinate key internal processes of the firm.
information systems manager
Leaders of the various specialists in the information systems department.
information systems department
The formal organizational unit that is responsible for the information systems function in the organization.
electronic commerce (e-commerce)
The process of buying and selling goods and services electronically involving transactions using the Internet, networks, and other digital technologies.
electronic business (e-business)
The use of the Internet and digital technology to execute all the business processes in the enterprise. Includes e-commerce as well as processes for the internal management of the firm and for coordination with suppliers and other business partners.
Social Business
Use of social networking platforms, including Facebook, Twitter, and internal corporate social tools, to engage employees, customers, and suppliers.
E-government
Use of the Internet and related technologies to digitally enable government and public sector agencies' relationships with citizens, businesses, and other arms of government.
portal
Web interface for presenting integrated personalized content from a variety of sources. Also refers to a website service that provides an initial point of entry to the web.
collaboration
Working with others to achieve shared and explicit goals.
Telepresence
Telepresence is a technology that allows a person to give the appearance of being present at a location other than his or her true physical location.
Chief Security Officer (CSO)
Heads a formal security function for the organization and is responsible for enforcing the firm's security policy.
programmers
Highly trained technical specialists who write computer software instructions.
Decision Support System (DSS)
Information systems at the organization's management level that combine data and sophisticated analytical models or data analysis tools to support semi-structured and unstructured decision making.
Executive Support Systems (ESS)
Information systems at the organization's strategic level designed to address unstructured decision making through advanced graphics and communications.
interorganizational system
Information systems that automate the flow of information across organizational boundaries and link a company to its customers, distributors, or suppliers.
Supply Chain Management (SCM) systems
Information systems that automate the flow of information between a firm and its suppliers in order to optimize the planning, sourcing, manufacturing, and delivery of products and services.
end user
Representatives of departments outside the information systems group for whom applications are developed.
Chief Privacy Officer (CPO)
Responsible for ensuring the company complies with existing data privacy laws.
Chief Data Officer (CDO)
Responsible for enterprise-wide governance and utilization of information to maximize the value the organization can realize from its data.
Chief Information Officer (CIO)
Senior manager in charge of the information systems function in the firm.
system analyst
Specialists who translate business problems and requirements into information requirements and systems, acting as liaison between the information systems department and the rest of the organization.
Management Information Systems (MIS)
Specific category of information system providing reports on organizational performance to help middle management monitor and control the business.
IT governance
Strategy and policies for using information technology within an organization, specifying the decision rights and accountabilities to ensure that information technology supports the organization's strategies and objectives.
Enterprise Applications
Systems that can coordinate activities, decisions, and knowledge across many different functions, levels, and business units in a firm. Include enterprise systems, supply chain management systems, and knowledge management systems.
Knowledge Management Systems
Systems that support the creation, capture, storage, and dissemination of firm expertise and knowledge.
