02 GlobalEBusiness PDF

Management Information Systems
Chapter 2 Global E-Business: How Businesses Use Information Systems

© 2007 Apprentice Hall
Global E-Business
How Businesses Use Information Systems
Fakultas Teknologi Informasi
Disusun oleh- Jay Idoan S
Disempurnakan dan diajarkan oleh Obaja Lumbanraja
Integrated Faith Learning
Dimulai dengan doa, ayat alkitab, doa tutup
Yeremia 29:11
“Sebab Aku ini mengetahui rancangan-rancangan apa yang

ada pada-Ku mengenai kamu, demikianlah firman TUHAN,
yaitu rancangan damai sejahtera dan bukan rancangan
kecelakaan, untuk memberikan kepadamu hari depan yang
penuh harapan.”
Page 2
LEARNING OBJECTIVES
• Define and describe business processes and

their relationship to information systems.
• Describe the information systems supporting the

major business functions: sales and marketing,
manufacturing and production, finance and
accounting, and human resources.
• Evaluate the role played by systems serving the

various levels of management in a business and
their relationship to each other.
Page 3
LEARNING OBJECTIVES (Continued)
• Explain how enterprise applications and intranets

promote business process integration and
improve organizational performance.
• Assess the role of the information systems

function in a business.
Page 4
Information Systems Join the Tupperware Party
• Problem: Continuing expansion and transition to

multilevel compensation structure.
• Solutions: Revised ordering processes and monitoring
service levels and sales increase sales.
• Oracle Collaboration Suite and Portal enable order entry
via Web interface, access to integrated corporate systems,
and personal e-commerce sites.
• Demonstrates IT’s role in designing compensation
structure and system integration.
• Illustrates the benefits of revising internal and customer-
related business processes.
Page 5
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:

Introduction to Enterprise Applications
Business Processes and Information Systems

Business processes:
• Manner in which work is organized, coordinated, and focused to
produce a valuable product or service
• Concrete work flows of material, information, and knowledge—

sets of activities
• Unique ways to coordinate work, information, and knowledge

• Ways in which management chooses to coordinate work
Page 6


(Continued)
• Information systems help organizations achieve great
efficiencies by automating parts of processes
• IS also contributes to completely rethinking processes.
• Business processes typically span several different

functional areas.
Page 7

Examples of Business Processes
Manufacturing and production:

• Assembling product, checking quality, producing
bills of materials
Sales and marketing:

• Identifying customers, creating customer
awareness, selling
Table 2.6
Page 8

Examples of Business Processes (Continued)
Finance & accounting:

• Paying creditors, creating financial statements, managing cash
accounts
Human resources:
• Hiring employees, evaluating performance, enrolling employees in
benefits plans
Table 2.6 continued
Page 9

Cross-Functional Business Processes:
• Transcend boundary between sales, marketing, manufacturing,

and research and development
• Group employees from different functional specialties to a

complete piece of work
Example: Order Fulfillment Process
Page 10

The Order Fulfillment Process
Figure 2-1 Page 11

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Sales and Marketing Systems
Major functions of systems:

• Sales management, market research, promotion,
pricing, new products
Major application systems:

• Sales order info system, market research system,
pricing system
Page 12
Sales and Marketing Systems

SYSTEM DESCRIPTION ORGANIZATIONAL
LEVEL
Order Enter, process, and track orders Operational

processing
Pricing analysis Determine prices for products and Management

services
Sales trend Prepare 5-year sales forecasts Strategic

forecasting
Table 2-2
Page 13
Manufacturing and Production Systems

• Scheduling, purchasing, shipping, receiving,
engineering, operations

• Materials resource planning systems, purchase
order control systems, engineering systems,
quality control systems
Page 14
Manufacturing and Production Systems

LEVEL
Machine Control the actions of machines and Operational

control equipment
Production Decide when and how many products Management

planning should be produced
Facilities Decide where to locate new production Strategic

location facilities
Page 15
Overview of an Inventory System
Figure 2-3 Page 16

Financing and Accounting Systems

• Budgeting, general ledger, billing, cost accounting

• General ledger, accounts receivable, accounts payable, budgeting,
funds management systems
Page 17
Financing & Accounting Systems (Continued)

SYSTEM DESCRIPTION ORGANIZATION-
AL LEVEL
Accounts Tracks money owed the firm Operational

receivable
Budgeting Prepares short-term budgets Management
Profit Plans long-term profits Strategic

planning
Table 2-4 Page 18

Human Resource Systems

• Personnel records, benefits, compensation, labor relations,
training

• Payroll, employee records, benefit systems, career path systems,
personnel training systems
Page 19
Human Resource Systems (Continued)

LEVEL
Training and Tracks employee training, skills, Operational

development and performance appraisals
Compensation Monitors the range and distribution Management

analysis of employee wages, salaries, and
benefits
Human resources Plans the long-term labor force Strategic

planning needs of the organization
Table 2-5
Page 20
Human Resource Systems (Continued) An Employee Recordkeeping System
Figure 2-5 Page 21

MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Different Kinds of Systems

Three main categories of information systems serve
different organizational levels:
1. Operational-level systems: support operational managers,

keeping track of the elementary activities and
transactions
2. Management-level systems: serve the monitoring,

controlling, decision-making, and administrative activities
3. Strategic-level systems: help senior management tackle

and address strategic issues
Page 22
Major Types of Systems
• Transaction Processing Systems (TPS)
• Management Information Systems (MIS)
• Decision-Support Systems (DSS)
• Executive Support Systems (ESS)
Page 23
Transaction Processing Systems (TPS)
• Basic business systems that serve the

operational level
• A computerized system that performs and

records the daily routine transactions necessary
to the conduct of the business
Page 24
A Symbolic Representation for a Payroll TPS
Page 25
Management Information Systems (MIS)

Management level
• Inputs: High volume transaction level data
• Processing: Simple models
• Outputs: Summary reports
• Users: Middle managers
Example: Annual budgeting

Page 26
Management Information Systems (MIS) (continued)
Figure 2-6 Page 27

Management Information Systems (MIS) (continued)

A sample MIS report
Figure 2-7 Page 28

Decision-Support Systems (DSS)

Management level
• Inputs: Transaction level data
• Processing: Interactive
• Outputs: Decision analysis
• Users: Professionals, staff
Example: Contract cost analysis Page 29

EXECUTIVE SUPPORT SYSTEMS (ESS):
• Inputs: Aggregate data
• Processing: Interactive
• Outputs: Projections
• Users: Senior managers
Example: 5 year operating plan

Page 30
EXECUTIVE SUPPORT SYSTEMS (ESS) (Continued)
• Top Level Management
• Designed to the individual senior manager
• Ties CEO to all levels
• Very expensive to keep up
• Extensive support staff

Page 31
Relationship of Systems to One Another

Interrelationships among systems
Figure 2-10 Page 32

Relationship of Systems to One Another
In contemporary digital firms, the different types of

systems are closely linked to one another. This is
the ideal. In traditional firms these systems tend to
be isolated from one another, and information does
not flow seamlessly from one end of the organization
to the other. Efficiency and business value tend to
suffer greatly in these traditional firms
Page 33
Too
Bad,
Class is over
Obaja M. Lumbanraja
Mobile Phone: +6285720080855 (Whatsapp)
email: obaja.lumbanraja@unai.edu
Others: Fb.me/olumbanraja
IG: @olumbanraja
Page 34
Integrated Faith Learning
Dimulai dengan doa, ayat alkitab, doa tutup
Mazmur 55:23
“Serahkanlah kuatirmu kepada Tuhan, maka Ia akan

memelihara engkau! Tidak untuk selama-lamanya
dibiarkan-Nya orang benar itu goyah. ”
Page 35

Systems for Enterprise-Wide Process Integration
Enterprise applications:
• Designed to support organization-wide process coordination and
integration
Page 36

Systems for Enterprise-Wide Process Integration

(Continued)
Consist of :
• Enterprise systems
• Supply chain management systems
• Customer relationship management systems
• Knowledge management systems
Page 37

Enterprise Systems
• Enterprise systems, also known as enterprise resource planning
(ERP) systems, provide a single information system for
organization-wide coordination and integration of key business
processes.
• Information that was previously fragmented in different systems

can seamlessly flow throughout the firm so that it can be shared
by business processes in manufacturing, accounting, human
resources, and other areas.
Page 38

Enterprise Application Architecture
Figure 2-11 Page 39


Traditional “Silo” View of Information Systems
Within the business:

• There are functions, each having its uses of information systems
Outside the organization’s boundaries:

• There are customers and vendors
Functions tend to work in isolation
Page 40

Traditional View of Systems
Page 41

Enterprise Systems
Figure 2-12 Page 42


Benefits of Enterprise Systems

• Help to unify the firm’s structure and organization: One
organization
• Management: Firm wide knowledge-based management

processes
• Technology: Unified platform
• Business: More efficient operations & customer-driven business

processes
Page 43

Challenges of Enterprise Systems

• Difficult to build: Require fundamental changes in the way the
business operates
• Technology: Require complex pieces of software and large

investments of time, money, and expertise
• Centralized organizational coordination and decision making: Not

the best way for the firms to operate
Page 44

Supply Chain Management (SCM)

• Close linkage and coordination of activities involved in buying,
making, and moving a product
• Integrates supplier, manufacturer, distributor, and customer

logistics time
• Reduces time, redundant effort, and inventory costs
• Network of organizations and business processes
Page 45

Supply Chain Management (SCM)

• Helps in procurement of materials, transformation of raw
materials into intermediate and finished products
• Helps in distribution of the finished products to customers
• Includes reverse logistics - returned items flow in the reverse

direction from the buyer back to the seller
Page 46

Information from Supply Chain Management

Systems helps firms:
• Decide when and what to produce, store, and move
• Rapidly communicate orders
• Track the status of orders
• Check inventory availability and monitor inventory levels
Page 47

Information from Supply Chain Management

Systems helps firms: (Continued)
• Reduce inventory, transportation, and warehousing costs
• Track shipments
• Plan production based on actual customer demand
• Rapidly communicate changes in product design
Page 48

Customer Relationship Management (CRM)
• Manages all ways used by firms to deal with existing and potential
new customers
• Business and technology discipline
• Uses information system to coordinate entire business processes

of a firm
Page 49

Customer Relationship Management (CRM)

(Continued)
• Provides end- to- end customer care
• Provides a unified view of customer across the company
• Consolidates customer data from multiple sources and provides

analytical tools for answering questions
Page 50

Knowledge Management Systems
• Collects relevant knowledge and make it available wherever and

whenever it is needed
• Support business processes and management decisions
• Also link the firm to external sources of knowledge
• Support processes for acquiring, storing, distributing, and
applying knowledge
Page 51
Any Questions?
Let’s discuss it 
Page 52
Too
Bad,
Class is over
Obaja M. Lumbanraja
Mobile Phone: +6285720080855 (Whatsapp)
email: obaja.lumbanraja@unai.edu
Others: Fb.me/olumbanraja
IG: @olumbanraja
Page 53
Soal
Silahkan jawab beberapa pertanyaan di bawah ini:
• Berdasarkan dari apa yang sudah kamu pelajari,
gambarkan dan jelaskan menurut pendapatmu mengenai
Piramida Organisasi dan hubungannya terhadap SCM dan
CRM. Serta jelaskan bagaimana cara sebuah organisasi
mengambil keputusan dari level terbawah ke atas, dan
menerapkan keputusan dari level teratas ke terbawah.
• Terdapat beberapa sistem yang berada dalam organisasi,
di antaranya adalah TPS, MIS, dll. Jelaskan menurut
pendapatmu bagaimana hubungan informasi antar
masing-masing sistem tersebut, dan mengapa Decision
Support Sytem membutuhkan masukan dari TPS dan
MIS?
Page 54
Aturan
• Tuliskan jawaban kamu di atas selembar kertas menggunakan
Ballpoint atau Pensil. Kemudian foto jawabanmu tersebut, dan
pastikan hasil jawabannya tidak Blur atau terpotong dan dapat
terbaca dengan baik. Hindari ukuran pengambilan foto 16:9
atau lebih, usahakan menggunakan ratio 3:2 atau 4:3 atau
Square. Gunakan format .jpg/.jpeg dan maksimal foto yang
dapat dikirimkan adalah sebanyak 5 foto. Pengumpulan
paling lambat Jumat 09 September 2022 17.00 WIB.
• Berusahalah untuk Jujur dan menggunakan sudut pandangmu
sendiri dibandingkan hanya menulis ulang apa yang ada dalam
slide. Ujian ini bersifat Open Source, jadi silahkan cari
referensi tambahan jikalau memang dibutuhkan tapi tetap
tuliskan menurut pemahaman kamu sendiri, bukan
pemahaman orang lain, apalagi jawaban teman kamu.
Page 55

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Management Information Systems

Chapter 2 Global E-Business: How Businesses Use Information Systems

“Sebab Aku ini mengetahui rancangan-rancangan apa yang

• Define and describe business processes and

• Describe the information systems supporting the

• Evaluate the role played by systems serving the

LEARNING OBJECTIVES (Continued)

• Explain how enterprise applications and intranets

• Assess the role of the information systems

Information Systems Join the Tupperware Party

• Problem: Continuing expansion and transition to

INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:

Business Processes and Information Systems

• Concrete work flows of material, information, and knowledge—

• Unique ways to coordinate work, information, and knowledge

INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:

Business Processes and Information Systems

• IS also contributes to completely rethinking processes.

• Business processes typically span several different

INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:

Examples of Business Processes

Manufacturing and production:

Sales and marketing:

INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:

Examples of Business Processes (Continued)

Finance & accounting:

Table 2.6 continued

INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:

Business Processes and Information Systems

Cross-Functional Business Processes:

• Transcend boundary between sales, marketing, manufacturing,

• Group employees from different functional specialties to a

Example: Order Fulfillment Process

INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:

The Order Fulfillment Process

Figure 2-1 Page 11

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Sales and Marketing Systems

Major functions of systems:

Major application systems:

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Sales and Marketing Systems

Order Enter, process, and track orders Operational

Pricing analysis Determine prices for products and Management

Sales trend Prepare 5-year sales forecasts Strategic

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Manufacturing and Production Systems

Major functions of systems:

Major application systems:

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Manufacturing and Production Systems

Machine Control the actions of machines and Operational

Production Decide when and how many products Management

Facilities Decide where to locate new production Strategic

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Overview of an Inventory System

Figure 2-3 Page 16

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Financing and Accounting Systems

Major functions of systems:

Major application systems:

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Financing & Accounting Systems (Continued)