Sixteenth Edition: Global E-Business and Collaboration

Management Information Systems:
Managing the Digital Firm

Sixteenth Edition
Chapter 2
Global E-Business and
Collaboration
Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved
Learning Objectives
2.1 What are business processes? How are they related to
information systems?
2.2 How do systems serve the different management groups
in a business, and how do systems that link the
enterprise improve organizational performance?
2.3 Why are systems for collaboration and social business
so important, and what technologies do they use?
2.4 What is the role of the information systems function in a
business?
2.5 How will MIS help my career?
Enterprise Social Networking Helps
Sanofi Pasteur Innovate and Improve
Quality (1 of 2)
• Problem
– Hierarchical top-down processes
– Large geographically dispersed workforce
– Lack of collaboration and idea sharing
• Solutions
– Develop knowledge sharing strategy and goals
– Redesign knowledge and collaboration processes
– Change organizational culture
– Implement Microsoft Yammer collaboration software
Enterprise Social Networking Helps
Sanofi Pasteur Innovate and Improve
Quality (2 of 2)
• Use of new technology to engage employees and enabled
knowledge gathering and sharing
• Demonstrates how outdated processes can affect
knowledge sharing and innovation
• Illustrates why organizations rely on information systems to
improve performance and remain competitive
Business Processes (1 of 2)
• Business processes
– Flows of material, information, knowledge
– Logically related set of tasks that define how specific
business tasks are performed
– May be tied to functional area or be cross-functional
• Businesses: Can be seen as collection of business
processes
• Business processes may be assets or liabilities
Business Processes (2 of 2)
• 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
Figure 2.1 The Order Fulfillment
Process
How Information Technology
Improves Business Processes
• Increasing efficiency of existing processes
– Automating steps that were manual
• Enabling entirely new processes
– Changing flow of information
– Replacing sequential steps with parallel steps
– Eliminating delays in decision making
– Supporting new business models
Systems for Different Management
Groups (1 of 2)
• Transaction processing systems
– Serve operational managers and staff
– 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 predefined, structured goals and decision
making
Figure 2.2 A Payroll TP S
Systems for Different Management
Groups (2 of 2)
• Systems for business intelligence
– Data and software tools for organizing and analyzing
data
– Used to help managers and users make improved
decisions
• Management information systems
• Decision support systems
• Executive support systems
Management Information Systems
• Serve middle management
• Provide reports on firm’s current performance, based on
data from TP S
• Provide answers to routine questions with predefined
procedure for answering them
• Typically have little analytic capability
Figure 2.3 How Management
Information Systems Obtain Their
Data from the Organization’s TP S
Figure 2.4 Sample MI S Report
Consolidated Consumer Products Corporation Sales by
Product and Sales Region: 2019
Product Product Sales Actual Planned Actual
Code Description Region Sales Versus
Planned
4469 Carpet Cleaner Northeast 4,066,700 4,800,000 0.85
South 3,778,112 3,750,000 1.01
Midwest 4,867,001 4,600,000 1.06
West 4,003,440 4,400,000 0.91
Blank Total Blank 16,715,253 17,550,000 0.95
5674 Room Northeast 3,676,700 3,900,000 0.94
Freshener South 5,608,112 4,700,000 1.19
Midwest 4,711,001 4,200,000 1.12
West 4,563,440 4,900,000 0.93
Blank Total Blank 18,559,253 17,700,000 1.05
Decision Support Systems
• Serve middle management
• Support non-routine decision making
– Example: What is the impact on production schedule if
December sales doubled?
• May use external information as well TP S / MI S data
• Model driven DS S
– Voyage-estimating systems
• Data driven DS S
– Intrawest’s marketing analysis systems
Figure 2.5 Voyage-Estimating
Decision-Support System
Executive Support Systems
• Support senior management
• Address non-routine decisions
– Requiring judgment, evaluation, and insight
• Incorporate data about external events (e.g., new tax laws
or competitors) as well as summarized information from
internal MI S and DS S
• Example: Digital dashboard with real-time view of firm’s
financial performance
Enterprise Applications
• Systems for linking the enterprise
• Span functional areas
• Execute business processes across the firm
• Include all levels of management
• Four major applications
– Enterprise systems
– Supply chain management systems
– Customer relationship management systems
– Knowledge management systems
Figure 2.6 Enterprise Application
Architecture
Enterprise Systems
• Also called enterprise resource planning (ER P) systems
• Integrate data from key business processes into single
system.
• Speed communication of information throughout firm.
• Enable greater flexibility in responding to customer
requests, greater accuracy in order fulfillment.
• Enable managers to assemble overall view of operations.
Supply Chain Management (SC M)
Systems
• Manage relationships with suppliers, purchasing firms,
distributors, and logistics companies.
• Manage shared information about orders, production,
inventory levels, and so on.
• 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: Automating flow of
information across organizational boundaries
Customer Relationship Management
(CR M) Systems
• Help manage relationship with customers.
• Coordinate business processes that deal with customers in
sales, marketing, and customer service
• Goals:
– Optimize revenue
– Improve customer satisfaction
– Increase customer retention
– Identify and retain most profitable customers
– Increase sales
Knowledge Management Systems
(KMS)
• Some firms perform better than others because they have
better knowledge about how to create, produce, and deliver
products and services.
• 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
Intranets and Extranets
• Technology platforms that increase integration and
expedite the flow of information
• Intranets:
– Internal networks based on Internet standards
– Often are private access area in company’s Web site
• Extranets:
– Company Web sites accessible only to authorized
vendors and suppliers
– Facilitate collaboration
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
• E-government
– Using Internet technology to deliver information and
services to citizens, employees, and businesses
What is Collaboration?
• Collaboration
– Short lived or long term
– Informal or formal (teams)
• Growing importance of collaboration
– Changing nature of work
– Growth of professional work—“interaction jobs”
– Changing organization of the firm
– Changing scope of the firm
– Emphasis on innovation
– Changing culture of work
What is Social Business?
• Social business
– Use of social networking platforms (internal and
external) to engage employees, customers, and
suppliers
• Aims to deepen interactions and expedite information
sharing
• “Conversations” to strengthen bonds with customers
• Requires information transparency
• Seen as way to drive operational efficiency, spur
innovation, accelerate decision making
Business Benefits of Collaboration
and Teamwork
• Investment in collaboration technology can return large
rewards, especially in sales and marketing, research and
development
• Productivity: Sharing knowledge and resolving problems
• Quality: Faster resolution of quality issues
• Innovation: More ideas for products and services
• Customer service: Complaints handled more rapidly
• Financial performance: Generated by improvements in
factors above
Figure 2.7 Requirements for
Collaboration
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, and systems
rely on teams
– The managers purpose is to build teams
Tools and Technologies for
Collaboration and Social Business
• E-mail and instant messaging (I M)
• Wikis
• Virtual worlds
• Collaboration and social business platforms
– Virtual meeting systems (telepresence)
– Cloud collaboration services (Google Drive, Google
Docs, etc.)
– Microsoft SharePoint and I B M Notes
– Enterprise social networking tools
Checklist for Managers: Evaluating
and Selecting Collaboration and
Social Software Tools
• Time/space matrix
• Six steps in evaluating software tools
– Identify your firm’s collaboration challenges
– Identify what kinds of solutions are available
– Analyze available products’ cost and benefits
– Evaluate security risks
– Consult users for implementation and training issues
– Evaluate product vendors
Figure 2.8 The Time/Space
Collaboration and Social Tool Matrix
The Information Systems Department
• Often headed by chief information officer (CI O)
– Other senior positions include chief security officer
(CS O), chief knowledge officer (CK O), chief privacy
officer (CP O), chief data officer (CD O)
• Programmers
• Systems analysts
• Information systems managers
• End users
Organizing the Information Systems
Function
• I T governance
– Strategies and policies for using I T in the organization
– Decision rights
– Accountability
– Organization of information systems function
 Centralized, decentralized, and so on
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