MIS Chapter 2 Terms
Knowledge Management Systems
- Enable organizations to better manage processes 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 - Basically a corporate library
Customer Relationship Management System
- Help businesses manage relationships with their customers -Coordinate business processes that deal with customers in sales, marketing, and customer service
Supply Chain Management System
- Manage relationships with suppliers, purchasing firms, distributors, and logistics companies - Manage shared information about orders, production, inventory levels = Goal is to move correct amount of product from source to point of consumption as quickly as possible and at lowest cost - Type of inter-organizational system
Six Roles of IS in Business
1) Achieve operational excellence 2) Develop new products / services 3) Attain customer intimacy and service 4) Improve decision making 5) Promote competitive advantage 6) Ensure survival
IT Enhances Business Process
1) Automation of manual processes 2) Change the flow the information 3) Enables simultaneous activities 4) Transform how a business works 5) Drive new business models
Importance of Collaboration
1) Changing the nature of work 2) Growth of professional work 3) Changing organization of the firm 4) Emphasis on innovation 5) Changing culture of work and business
Four Major Types of Enterprise Applications
1) Enterprise System 2) Supply Chain Management System 3) Customer Relationship Management System 4) Knowledge Management System
End User
Employees outside the IS group for whom applications are developed (p. 65)
ERP
Enterprise Resource Planning
ESS
Executive-support Systems
Decision-support Systems
Focus on problems that are unique and rapidly changing, for which the procedure for arriving at a solution may not be fully predefined in advance (p. 49) - PP: Support middle-managers - Often use external information as well from TPS and MIS
Information Systems Department
Formal organizational unit responsible for information technology services (ex. maintaining hardware, software, data storage and networks). (p. 65)
Executive-support Systems
Help senior management makes decisions; address non-routine decisions requiring judgment, evaluation and insight b/c there are no agreed upon procedures. Presented as easy to read graphs or data in a portal interface (p. 50) - PP: Addresses strategic issues and long-term trends - Draw summarized information from MIS, DSS, and data from external events.
Programmers
Highly trained technical specialists who write the software instructions for computers (p. 65)
Chief Security Officer
In charge of IS security and enforcing firms information security policy (p. 65)
Intranet
Internal networks based on Internet standards; often are private access area in company's Web site (PP)
KMS
Knowledge Management Systems
Business Process
Logically related set of activities that define how specific business tasks are performed. Could be functional (i.e. sales and marketing) or cross-functional (fulfilling a customer order) (p. 40)
Senior Management
Makes long range strategic decisions about products and services, as well as ensures the financial performance of the firm (p. 43)
MIS
Management Information Systems
Time/Space Collaboration Tool Matrix
Matrix to determine the best collaborative tool to use for specific situation
Electronic Commerce/E-Commerce
Part of E-Business that deals with the buying and selling of of goods and services over the Internet (p. 55)
System analysts
Principle liaison between the IS groups and the rest of the organization (p. 65)
Operational Management
Production and services, data workers - responsible for monitoring the daily activities of the business (p. 44)
Management Information Systems
Provides middle managers with reports on the organization's current performance, in order to monitor and control the business and predict future performance (p. 46) - PP: Summarize and report on basic operations using data from TPS. - Provide weekly, monthly, annual results, but may enable drilling down into daily or hourly data. - System not very flexible, little analytic capability
Chief Privacy Officer
Responsible for ensuring that the company complies with existing data privacy laws (p. 65)
Chief Knowledge Officer
Responsible for firms KMS; designs programs and systems to find new sources of knowledge (p. 65)
Middle Management
Scientists and knowledge workers - carries out the programs and plans of senior management (p. 44)
IS Pyramid Breakdown
Senior Management = ESS, Strategic Decisions Middle Management = MIS, Tactical Decisions Operational Management = TPS, Operational decisions
Chief Information Officer
Senior manager who oversees the use of information technology within the firm (p. 65)
SCM
Supply Chain Management
Enterprise Applications
Systems that span functional areas, focus on executing business processes across the business firm, and include all levels of management (p. 53)
TPS
Transaction Processing System
Electronic Business/E-Business
Use of digital technology and the Internet to execute the major business processes in the enterprise (p. 55)
E-Government
Using Internet technology to deliver information and services to citizens, employees, and businesses (PP)
Portal
Web interface to present integrated personalized business content
Goals of CRM
1) Optimize revenue 2) Improve customer satisfaction 3) Increase customer retention 4) Identify and retain most profitable customers 5) Increase sales
Three Levels of Management Hierarchy
1) Senior Management 2) Middle Management 3) Operational Management
5 Basic Business Entities
1) Suppliers 2) Customers 3) Employees 4) Invoices/Payments 5) Products and Services
Evaluating and Selecting Collaboration Software (6 Steps)
1) What are your firm's collaboration challenges? (see matrix) 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.
Production and Service Workers
Actually produce the product and deliver the service (p. 44)
Enterprise Systems
Also known as enterprise resource planning (ERP) - integrate business processes in manufacturing and production, finance and accounting, sales and marketing, and HR into a single software system = comprehensive data repository (p. 53) - PP: Enable greater flexibility in responding to customer requests, greater accuracy in order fulfillment. - Enable managers to assemble overall view of operations.
Data Workers
Assist with administrative work at all levels (p. 44)
Inter-organizational System
Automates the flow of information across organizational boundaries (ex. SCM)
CIO
Chief Information Officer
CKO
Chief Knowledge Officer
CPO
Chief Privacy Officer
CSO
Chief Security Officer
Extranet
Company Web sites accessible only to authorized vendors and suppliers; facilitate collaboration (PP)
Transaction Processing System
Computerized system that performs and records the daily routine transactions necessary to conduct business (ex. hotel reservations, payroll and shipping) (p. 45) - PP: Principal purpose is to answer routine questions and to track the flow of transactions through the organization. - Monitor status of internal operations and firm's relationship with external environment. - Major producers of information for other systems. - Highly central to business operations and functioning.
CRM
Customer Relationship Management
Business Inteligence
Data and software tools for organizing, analyzing and providing access to data to help managers and user make more informed decisions (p. 46)
DSS
Decision-support Systems
Knowledge Workers
Design products and services and create new knowledge for the firm (p. 44)
Digital Dashboard
Displays on a single screen graphs and charts of key performance indicators for managing a company (p. 51)
