CHAPTER 2 GLOBAL E-BUSINESS AND COLLABORATION Flashcards
make it possible for firms to manage all their information, make better decisions, and improve the execution of their business processes.
Information systems
Can be a source of competitive strength if they enable the company to innovate or to execute better than its rivals. Can also be liabilities if they are based on inefficient ways of working that impede organizational responsiveness and efficiency.
Business processes
Computerized system that performs and records the daily routine transactions necessary to conduct business, such as sales order entry, hotel reservations, payroll, employee record keeping, and shipping.
Transaction processing systems (TPS)
Formal organization that makes products or provides a service in order to make a profit.
Business
Four Major Functions of a Business
- Manufacturing and production;
- Sales and marketing;
- Human resources;
- finance and accounting
Steps and tasks that describe how work is organized in a business.
Business Process
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
Levels of management
senior management; middle management; operational management
Global environment factors
technology and science; economy; politics; international change
Immediate environment factors
customers; suppliers; competitors; regulations; stockholders; employees
The role of information systems in a business
achieve operational excellence; develop new products and services; attain customer intimacy and service; improve decision making; promote competitive advantage; ensure survival
The foundation for data collection
Transaction Processing System
Address decision-making needs of all level of management:
Management Information Systems (MIS);
Decision Support Systems (DIS);
Executive Support systems (ESS);
Systems for business intelligence
provide middle managers with reports on basic operations using data supplied by transaction processing systems using simple routines, such as summaries and comparisons
Management information systems (MIS)
serve middle managers; support nonroutine decision making; often use external information as well from TPS and MIS; Model driven DSS; Data driven DSS
Decision Support systems (DIS)
Serve senior managers; address strategic issues and long-term trends; address nonroutine decision making; provide generalized computing capacity that can be applied to changing array of problems
Executive support systems (ESS)
delivers comprehensive and accurate info for decision making often using a single screen with graphical overviews of key performance indicators
Digital Dashboard
Systems for Linking the Enterprise
- Enterprise systems;
- Supply chain management systems;
- Customer relationship management systems;
- Knowledge management systems
Also called enterprise resource planning (ERP) systems;
Integrate data from key business processes into a single system;
speed communication of information throughout firm;
enable greater flexibility in responding to customer requests, greater accuracy in order fulfillment
Enterprise Systems
manage relationships with suppliers, purchasing firms, distributors, and logistics companies;
manage shared information about orders, production, inventory levels, and so on;
Type of interorganizational system (automating flow of info across organizational boundaries)
Supply Chain Management (SCM) 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
Customer Relationship Management (CRM) Systems
Internal networks based on internet standards;
often are private access area in company’s web site
Intranet
company web sites accessible only to authorized vendors and suppliers;
facilitate collaboration
Extranet