BUSINESS INFORMATION

SYSTEM DESIGN
Week-2

GLOBAL E-BUSINESS AND COLLABORATION

PSMI Laboratory Ó 2022

Industrial and Systems Engineering Department - ITS
Outline

01 Business Process and

Information Systems 02 Types of Information
Systems

03 04
Systems for Collaboration The Information Systems
and Social Business Function in Business
Information systems and technologies are a major enabling tool for
firms to manage all their information, make better decisions, and
improve the execution of their business processes.

Business Process
Collection of activities describe how a company produces, delivers,
and sells a product or service to create wealth.
Business Process (2)
The unique ways in which organizations coordinate work, information, and
knowledge, and the ways in which management chooses to coordinate
work.

How well the business Business

process designed and
Performance
coordinated
3
Example of Functional Business Processes
Example of Order Fulfillment Processes

Fulfilling a customer order involves a complex set of steps that requires the close
coordination of the sales, accounting, and manufacturing functions.
 How IT Improves Business process

Increasing efficiency of existing process

Automating steps that were manual

Enabling entirely new processes

Change flow of information
Replace sequential steps with parallel steps
Eliminate delays in decision making
https://searchdatacenter.techtarget.com/definition/IT
Support new business models
 Types of Information Systems
TRANSACTION PROCESSING
SYSTEM (TPS) ENTERPRISE APPLICATIONS

SYSTEMS FOR SYSTEMS FOR

DIFFERENT MANAGEMENT GROUPS LINKING THE ENTERPRISE

Types of
Information
Systems

INTRANET AND EXTRANET

SYSTEMS FOR
BUSINESS INTELLEGENCE

E-BUSINESS, E-COMMERCE AND E-GOVERNMENT

 Information System Hierarchy

https://www.conceptdraw.com/examples/management-information-system
 What is Transaction Processing System?
A type of information system that collects, stores, modifies and retrieves the data
transaction of an enterprise.

Transaction:
A business activity between seller and buyer to exchange an asset for payment.
Ex: customer orders, purchase orders, receipts, invoices, payroll checks in an organization.

• Managers need TPS to monitor the
status of internal operations and the
firm’s relations with the external
environment.
• TPS are also major producers of
information for the other systems
and business functions.
• The principal purpose of systems at this level is to
answer routine questions and to track the flow of
transactions through the organization.
• How many parts are in inventory? What happened to
Mr. Smith’s payment?
• To answer these kinds of questions, information
generally must be easily available, current, and
accurate.
 What is Transaction Processing System?

Order Airline Ticket via Online

Order some foods at McD
Ticket Agency
 What is Transaction Processing System?
• A TPS for payroll
processing captures
employee payment
transaction data (such
as a time card).
• System outputs
include online and
hard-copy reports for
management and
employee paychecks.
 What is Business Intelligence?
SYSTEMS BUSINESS INTELLEGENCE

Data and software tools for organizing and analyzing data. It

is used to help managers and users make improved decisions

Management Decision Executive

Information Support Systems Support Systems
Systems (DSS) (ESS)
What is Management Information Systems?

Serve middle management

Provide reports on firm’s current performance,

based on data from TPS
MIS
Provide answers to routine questions
with predefined procedure for
answering them

Typically have little analytic capability

 What is Management Information Systems?

In the system illustrated by this diagram, three TPS supply summarized transaction data to the MIS
reporting system at the end of the time period. Managers gain access to the organizational data
through the MIS, which provides them with the appropriate reports.
 What is Management Information Systems?
Sample MIS Report

This report, showing summarized annual sales data, was produced by the MIS in previous slide
What is Decision Support System (DSS)?

Serve middle management

Support non-routine decision making

§ Example: What is the impact on
production schedule if December sales
doubled?
DSS
Model driven DSS
§ Voyage-estimating systems

Data driven DSS

§ Intrawest’s marketing analysis
systems
Voyage-Estimating Decision Support System

This DSS operates on a powerful PC. It is used daily by managers who must develop bids
on shipping contracts.
What is Executive Support System (ESS)?

Support Senior management

Address non-routine decision making

§ Requiring judgement, evaluation, and
insight
DSS
Incorporate data about external events as
well as summarized information from
internal MIS and DSS
Example
§ Digital dashboard with real-time of firm’s financial
performance: working capital, accounts receivable,
accounts payable, cash flow and inventory
 What is Enterprise Applications?
SYSTEMS FOR LINKING THE ENTERPRISE

Systems that span functional areas, focus on executing business processes across
the business firm, and include all levels of management. Enterprise applications
help businesses become more flexible and productive by coordinating their
business processes more closely and integrating groups of processes, so they
focus on efficient management of resources and customer service.

Supply Chain
Enterprise
Management
Systems
Systems

Knowledge
Customer Management
Relationship Systems
Management
Systems
What is Enterprise Applications?

Enterprise Application
Architecture
Enterprise applications automate
processes that span multiple
business functions and
organizational levels and may
extend outside the organization.
What is Enterprise System?

ERP
Integrate business processes in manufacturing and production, finance and
accounting, sales and marketing, and human resources into a single
software system.
Information that was previously fragmented in many different systems is
stored in a single comprehensive data repository where it can be used by
many different parts of the business.
What is Enterprise Systems?

Collecting data from different firm functions and

stores data in single central data repository

Resolves problem of fragmented data

ES
Enable:
§ Coordination of daily activities
§ Efficient response to customer orders
(production, inventory)
§ Help managers make decisions about
daily operations and long-term planning
What is Supply Chain Management?

Share information
Manage firm’s about:
relationships with • Orders, production,
suppliers inventory levels, delivery
of products and services

Goal:
• Right amount of products
to destination with least
amount of time and lowest
cost
What is Supply Chain Management?

Manage firm’s relationships with suppliers

Share information about:

§ Orders, production, inventory levels,
delivery of products and services
SCM
Goal:
§ Right amount of products to destination
with least amount of time and lowest cost
What is Customer Relationship Management?

Provide information to coordinate all of the

business processes that deal with customers
§ Sales
§ Marketing
§ Customer service
CRM
Helps firms identify, attract, and retain
most profitable customers
What is Knowledge Management System?

Support processes for capturing and applying knowledge

and expertise
§ How to create, produce, deliver products and services

Collect internal knowledge and

KMS experience within firm and make it
available to employees

Link to external sources of

knowledge
 Types of Information Systems

Also used to increase integration and Intranets:

expedite the flow of information ü Internal company
Web sites
accessible only by
employees

Extranets:
ü Company Web sites
accessible externally only
to vendors and suppliers
Information
Systems ü Often used to coordinate
supply chain
Systems for Collaboration and Teamwork
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
 Systems for Collaboration and Teamwork
• Social business
• Use of social networking platforms, internal and external
• Engage employees, customers, and suppliers
• Goal is to deepen interactions and expedite information sharing
• “Conversations”
• Requires information transparency
• Driving the exchange of information without intervention from executives or
others
Business benefits of collaboration and teamwork

Investments in collaboration technology

can bring organization improvements,
returning high ROI
C&T
Benefits:
ü Productivity
ü Quality
ü Innovation
ü Customer service
ü Financial performance
§ Profitability, sales, sales growth
Requirements for collaboration

Successful collaboration requires

an appropriate organizational
structure and culture, along with
appropriate collaboration
technology.
 Systems for Collaboration and Teamwork

Command and control organizations

§ No value placed on teamwork or
lower-level participation in decisions
Building a
collaborative culture
and business
processes
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 for Collaboration and Teamwork

Email and Virtual World Collaboration and social business

Wikis
platforms
instant
§ Virtual meeting systems (telepresence)
messaging § Google Apps/Google sites
§ Cyberlockers
§ Microsoft SharePoint
§ Lotus Notes
§ Enterprise social networking tools
Systems for Collaboration and Teamwork
Enterprise social networking software capabilities:

Profiles

Content sharing

Feeds and notifications

Groups and team workspaces

Tagging and social bookmarking

Permissions and privacy

 The Time/Space Collaboration Tool Matrix

Collaboration technologies can be classified in terms of whether they support interactions at

the same or different time or place or whether these interactions are remote or co-located.
 The Information Systems Function in Business

Information systems department:

üFormal organizational unit responsible for information
technology services
üOften headed by chief information officer (CIO), Other senior
positions include chief security officer (CSO), chief knowledge
officer (CKO), chief privacy officer (CPO)
üProgrammers
üSystems analysts
üInformation systems managers
 The Information Systems Function in Business
§ End users
üRepresentatives of other departments for whom applications
are developed
üIncreasing role in system design, development
§ IT Governance:
üStrategies and policies for using IT in the organization
üDecision rights
üAccountability
üOrganization of information systems function Centralized,
decentralized, and so on