Chapter 2: Global E-Business and Collaboration

Question 1

What is a business process?

Answer 1

logically related set of activities that defines how specific business tasks are performed

Question 2

What is the order fulfilment process and what business processes are involved?

Answer 2

Fulfilling a customer order involves a complex set of business processes that require the close coordination of
- Sales
- Accounting, and
- Manufacturing
Business processes.

Question 3

Describe the characteristics of Transaction processing systems (TPS) and the roles they play in business.

Answer 3

Transaction processing systems function at the operational level of the organization. Examples of transaction processing systems include order processing, material movement control, payroll, accounts payable, and employee recordkeeping.
purpose: answer routines questions & track flow of transactions

Question 4

Describe the characteristics of business intelligence systems (BI) and explain why it is important in terms of decision-making.

Answer 4

BI systems make use of data and software tools for organising and analysing data. Therefore they also used to help managers and users make improved decisions (on all management levels)

Question 5

What is a Management Information System (MIS) (belonging to BI systems)

Answer 5

produce reports serving middle management by condensing information from TPS, little analytical capability, track performance

Question 6

What is a Decision support system (DSS) (belonging to BI systems)

Answer 6

support unique and rapidly changing middle management decisions by using advanced analytical tools

Question 7

What is a Executive support system (ESS) (belonging to BI systems)

Answer 7

• Executive support systems support senior management
• address non routine decisions: requiring judgement, evaluation, insight
• incorporate data about external events as well as summarised information form internal MIS and DSS

Question 8

How does a digital dashboard work? (ESS)

Answer 8

shows real-time view of firm’s financial performance: working capital, accounts receivable, accounts payable, cash flow, and inventory

Question 9

Explain how and why an organization might want to implement enterprise applications.

Answer 9

-integrate business processes in the different functional areas of the firm
- systems for linking the enterprise, span functional areas
- execute business processes across firm, include all levels of management
- information is stored in a single comprehensive data base, which can be used by different parts of the firm
- integrated system: avoids storing the same information in different places

Question 10

Types of Enterprise applications

Answer 10

• Supply chain management system (SCM): manage relationships w suppliers, purchasing firms, distributors, and logistics companies.
• Customer relationship systems (CRM): help manage relationship w customers (feedback, profiling, cross-marketing)
• Knowledge management systems (KMS): manage processes for capturing and applying knowledge and expertise

Question 11

Define collaboration and explain why it has become so important today

Answer 11

Collaboration is working with others to achieve shared and explicit goals:
- changing nature of work
- growth of professional work
- changing organisation of the firm
- changing scope of the firm
- emphasis on innovation
- changing culture of work

overall: diversity, exchange, and interaction often drives better results

Question 12

Define social business and why it has become so important today

Answer 12

Social business makes use of internal and external social networking platforms to engage employees, customers and suppliers
- It aims to deepen interactions an expedite information sharing
- “conversations” are key to strengthen bonds with customers increase emotional involvement

seen as a way to drive operational efficiency, spur innovation and accelerate decision making.

Question 13

What are the business benefits of a collaboration and social business?

Answer 13

• productivity
• quality
• Innovation
• customer service
• financial performance

Question 14

What are the tools for collaboration and social business?

Answer 14

• e-mail and instant messaging (Slack instead of mail f.e.)
• wikis
• virtual worlds (virtual meetings, cloud-enabled file sharing, corporate collaboration systems)

Question 15

What are the benefits of intranets and extranets to the firm?

Answer 15

Intranets and extranets are used to increase integration and flow of information within the firm and with customers and suppliers.

Question 16

How does the information systems function support a business?

Answer 16

• it is responsible for maintaining hardware, software, data storage, and networks that comprise the firms IT department

Question 17

Identify and briefly describe the main roles in the IT department.

Answer 17

The main roles in an IT department include programmers, who write software and applications systems analysts, who serve as liaisons between the business groups and the IT department IS managers, who lead others in the IT department Chief Information Officer (CIO), often the head of the IT department Other roles may include Chief Security Officer (CSO), who is in charge of IS/IT security Chief Privacy Officer (CPO), who is responsible for compliance with privacy legislation Chief Knowledge Officer (CKO), who is responsible for knowledge management

Question 18

What is IT governance?

Answer 18

IT governance specifies the strategies and policies for using information technology in an organization, and it specifies the decision rights and frameworks for accountability around information technology use.