Chapter 2 Flashcards
Global E-Business and Collaboration
Business
Formal organization that makes products or provides a service in order to make a profit
Basic Business Functions
Manufacturing and production
Sales and marketing
Finance and accounting
Human resources
Five Basic Business Entities
Suppliers
Customers
Employees
Invoices/payments
Products and services
Business Processes
Logically related set of tasks that define how specific business tasks are performed
For example: Steps in hiring an employee
Type of Business Processes
Some processes tied to functional area (Sales and marketing)
Some processes are cross-functional(Fulfilling customer order
)
How IT Enhances Business Processes
Automation of manual processes
Change the flow of information
Replace sequential processes with simultaneous activity
Transform how a business works
Drive new business models
Business and Firm Hierarchies (Levels in a Firm
)
Senior management
Middle management
Operational management
Knowledge workers
Data workers
Production or service workers
Global environment factors
Technology and science
Economy
Politics
International change
Immediate environment factors
Customers Suppliers Competitors Regulations Stockholders
Why Firms invest in information systems
Achieve operational excellence.
Develop new products and services.
Attain customer intimacy and service.
Improve decision making.
Promote competitive advantage.
Ensure survival
Types of Business Information Systems
Transaction processing systems (TPS)
1- Keep track of basic activities and transactions of organization
Systems for business intelligence (Provide middle managers with reports)
1-Management information systems (MIS)
2-Decision support systems (DSS)
3-Executive support systems (ESS)
Serve senior managers.
Address strategic issues and long-term trends
Typically use portal with Web interface
Enterprise applications
Systems that span functional areas, focus on executing business processes across the firm, and include all levels of management
Four major types of Enterprise applications
1- Enterprise systems
2- Supply chain management systems
3- Customer relationship management systems
4- Knowledge management systems
Enterprise Systems
Also called enterprise resource planning (ERP) systems.
Speed communication of information throughout firm.
Enable managers to assemble overall view of operations.
Supply Chain Management (SCM) Systems
Manage relationships with suppliers, purchasing firms, distributors, and logistics companies
Manage shared information about orders, production, inventory levels, and so on.
