BDE303 : COMPUTER IN BUSINESS

CHAPTER 3: Information Systems In Business Functions

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Topic Outline

TOPIC: INFORMATION SYSTEMS IN BUSINESS FUNCTIONS 3.1.1 3.1.2 3.1.3 3.1.4 3.1.5 3.1.6 3.1.7 3.1.8 3.1.9 Effectiveness and Efficiency Accounting Finance Engineering Manufacturing and Inventory Control Marketing Sales and Customer Services Human Resources Enterprise, Resource Planning Groupware and Collaborative Work.

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Chapter Aims

At the end of this chapter, students will be able to: Identify the flow of information system within an organization Construct business organizational structure Describe information technology infrastructure. Differentiate between primary and secondary storage

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Topics

3.1.1 Introduction : E.g Information Systems Join the Tupperware Party

Problem: Changing business model caused unnecessary difficulty for Tupperware sales consultants.
Solutions: Implement Web-based order management system that simplifies order entry and other tasks.
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2.1.2 Organization : Examples Information Systems Join the Tupperware Party

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2.1.3 : Information in the organization :Components of a Business

Business: Formal organization that makes products or provides a service in order to make a profit Organizing a Business: Basic Business Functions

Four basic business functions

Manufacturing and production Sales and marketing Finance and accounting Human resources
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3.1.4 : Information Technology Systems in the Organization : Components of a Business

The Four Major Functions of a Business

Figure 3-1
Every business, regardless of its size, must perform four functions to succeed. It must produce the product or service; market and sell the product; keep track of accounting and financial transactions; and perform basic human resources tasks, such as hiring and retaining employees.

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3.1.3 : Types of Information Technology Systems in the Organization Components in Business of a Bu

The Order Fulfillment Process

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

Figure 2-2
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3.1.4 : Topic :Types of Business Information Systems

Systems from a Functional Perspective Sales and marketing systems

Support activities for selling and marketing firms products or services Senior management:
Monitor trends affecting products and sales, planning for new products and services, monitor performance of competitors Support market research, analyze marketing campaigns, pricing decisions, sales performance Locating and contacting prospective customers, process orders, provide customer service support

Middle management:

Operational management and employees:

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2..1. 4 Types of Business Information Systems

Systems from a Constituency Perspective

Transaction processing systems

Keep track of basic activities and transactions of organization (e.g. sales, receipts, cash deposits, payroll, credit decisions, flow of materials in a factory)

Management information systems and decisionsupport systems

Help with monitoring, controlling, decision-making, and administrative activities

Executive support systems:

Help address strategic issues and long-term trends, both in firm and in external environment
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2.1. 4 Types of Business Information Systems

Types of Business Information Systems

Systems from a Constituency Perspective

Transaction processing systems

Serve operational managers Principal purpose is to answer routine questions and to track the flow of transactions through the organization
E.g. Inventory questions, granting credit to customer

Monitor status of internal operations and firms relationship with external environment Major producers of information for other systems Highly central to business operations and functioning
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2.1.4 Systems That Span the Enterprise

How MIS Obtain Data from Organizations TPS

Figure 3-9
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.

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Types of Business Information Systems

Relationship of Systems to One Another

TPS: Major source of data for other systems

ESS: Primarily a recipient of data from lowerlevel systems

Other systems may exchange data as well

Exchange of data between functional areas
E.g. Sales order transmitted to manufacturing system

In most organizations, systems are loosely integrated

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Systems That Span the Enterprise

Interrelationships Among Systems

Figure 3-13
The various types of systems in the organization have interdependencies. TPS are major producers of information that is required by many other systems in the firm, which, in turn, produce information for other systems. These different types of systems have been loosely coupled in most organizations.

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Systems That Span the Enterprise

Enterprise Applications Enterprise applications are systems that span functional areas and automate processes for multiple business functions and organizational areas; they include:
Enterprise systems Supply chain management systems Customer relationship management systems Knowledge management systems

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Systems That Span the Enterprise

Enterprise Application Architecture

Figure 2-14
Enterprise applications automate processes that span multiple business functions and organizational levels and may extend outside the organization.

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Systems That Span the Enterprise

Enterprise Systems

Figure 3-15
Enterprise systems integrate the key business processes of an entire firm into a single software system that enables information to flow seamlessly throughout the organization. These systems focus primarily on internal processes but may include transactions with customers and vendors.

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Systems That Span the Enterprise

Supply Chain Management Systems

Manage relationships with suppliers, purchasing firms, distributors, and logistics companies
Manage shared information about orders, production, inventory levels, etc.
Goal is to move correct amount of product from source to point of consumption as quickly as possible and at lowest cost

Type of interorganizational system:

Automating flow of information across organizational boundaries
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Systems That Span the Enterprise

Example of a Supply Chain Management System

Customer orders, shipping notifications, optimized shipping plans, and other supply chain information flow among Haworths Warehouse Management System (WMS), Transportation Management System (TMS), and its back-end corporate systems.

Figure 3-16
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Systems That Span the Enterprise

Supply Chain Management Systems

Manage relationships with suppliers, purchasing firms, distributors, and logistics companies
Manage shared information about orders, production, inventory levels, etc.
Goal is to move correct amount of product from source to point of consumption as quickly as possible and at lowest cost

Type of interorganizational system:

Automating flow of information across organizational boundaries
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Systems That Span the Enterprise

Customer Relationship Management Systems

Help manage relationship with customers Coordinate business processes that deal with customers to optimize revenue and customer satisfaction, and increase sales Combine sales, marketing, and service record data from multiple communication channels to provide unified view of customer, eliminate duplicate efforts E.g. Saab CRM applications to achieve 360 view of customers resulted in greater follow-up rate on sales leads and increased customer satisfaction
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Systems That Span the Enterprise

Illustrated here are some of the capabilities of Salesforce.com, a market-leading provider of on-demand customer relationship management (CRM) software. CRM systems integrate information from sales, marketing, and customer service.

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Systems That Span the Enterprise

Knowledge Management Systems

Intangible knowledge assets

Knowledge about producing and delivering products Source of value and advantage for firms

Knowledge management systems:

Help capture, storage, distribute, and apply knowledge so that it can be leveraged for strategic benefit Include systems for: Managing and distributing documents, graphics, other digital knowledge objects Creating knowledge directories of employees with specialized expertise Distributing knowledge
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Essentials of Business Information Systems

Chapter 2 E-Business: How Businesses Use Information Systems Systems That Span the Enterprise

Intranets and Extranets Technology platforms that increase integration and expedite the flow of information Intranets:
Internal networks based on Internet standards Typically utilize a portal

Extranets:
Intranets extended for authorized use outside the company for partners, customers Facilitate collaboration
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Activity: [STUDENT QUESTION)

Activity Name STUDENT QUESTION (QA): 1. QA Session 2. Student. 3. Understanding the topic lectured. 4. Give the feed back regarding the topic that discuss in the classroom.

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Topics

Activity: [DISCUSSION GROUP]

Group Discussion and Presentation

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How can a transaction processing system help an organizations management system and decision support systems? Which of the four major types of information system do you think is the most valuable to an organization? Discuss the benefits and challenges of the enterprise systems and explain why a firm would want to build? Discuss how customer relationship Management system can improved a digital information data. Explain the value of wikis to a business. Discuss how your company could benefits from using it.

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Topics