UNIT 4 Flashcards
Business processes
Refer to the manner in which work is organized, coordinated, and focused to produce a valuable product or service. The performance of a business firm depends on how well its business processes are designed and coordinated.
Every business can be seen as a collection of business processes
Information systems
all about improving business processes which lie at the very heart of a business.
IS- some definitions
Information systems (IS) is the complementary networks of hardware and software that people and organizations use to collect, filter, process, create, and distribute data.”
“Information systems are combinations of hardware, software, and telecommunications networks that people build and use to collect, create, and distribute useful data, typically in organizational settings.”
“Information systems are interrelated components working together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization in an organization.”
Information systems make it possible for firms to manage all their information, make better decisions, and improve the execution of their business processes. Information system is an integrated set of components for collecting, storing, and processing data and for providing information, knowledge, and digital products. Are used by companies to manage their operations, interact with their customers and suppliers, and compete in the marketplace
The 4 components of information systems:
- Hardware: the part of an information system you can touch
- Software: set of instructions that tells the hardware what to do. Software is not tangible.
- Two main categories: operating-system software, which makes the hardware usable (Microsoft Windows or Android), and application software, which does something useful (Excel, or Angry Birds) - Data.
- Networking Communication.
Walmart- retail link
One of the keys to this success was the implementation of Retail Link, a supply-chain management system
This system, unique when initially implemented in the mid-1980s, allowed Walmart’s suppliers to directly access the inventory levels and sales information of their products at any of Walmart’s more than ten thousand stores.
Using Retail Link, suppliers can analyze how well their products are selling at one or more Walmart stores, with a range of reporting options. Further, Walmart requires the suppliers to use Retail Link to manage their own inventory levels.
If a supplier feels that their products are selling out too quickly, they can use Retail Link to petition Walmart to raise the levels of inventory for their products. This has essentially allowed Walmart to “hire” thousands of product managers, all of whom have a vested interest in the products they are managing. This revolutionary approach to managing inventory has allowed Walmart to continue to drive prices down and respond to market forces quickly.
Today, Walmart continues to innovate with information technology. Using its tremendous market presence, any technology that Walmart requires its suppliers to implement immediately becomes a business standard.
Sales and marketing function
is responsible for selling the organization´s products and services.
How do information systems enhance business processes?
- Increasing the efficiency of existing processes.
2. Enabling entirely new processes that are able to transform the business.
Marketing- task
is concerned with identifying the customers for the firm´s products or services, determining what customers need or want, planning and developing products and services to meet their needs, and advertising and promoting these products and services.
Sales
is concerned with contacting customers, selling the products and services, taking orders, and following up on sales.
Manufacturing and Productions systems
Responsible for producing the firm´s goods and services.
Manufacturing and production systems deal with:
- Planning, development
- Maintenance of production facilities
- Establishment of production goals
- Acquisition, storage, and availability of production materials
- Scheduling of equipment, facilities, materials, and labor required to fashion finished products.
Finance and Accounting information systems
Responsible for managing the firm´s financial assets, such as cash, stocks, bonds, and other investments, to maximize the return on these financial assets
Finance function systems deal with:
- Managing the capitalization of the firm (finding new financial assets in stocks, bonds, or other forms of debt).
- To determine whether the firm is getting the best return on its investments.
Sales and marketing IS- some examples of use
- Monitor trends affecting new products and sales opportunities
- Support planning for new products and services
- Monitor the performance of competitors.
- Supporting market research
- Analyzing advertising and promotional campaigns
- Pricing decisions
- Sales performance.
- Locating and contacting prospective customers
- Tracking sales
- Processing orders
- Prove customer service support.
Manufacturing and production IS- some examples of use
Firm`s long-term manufacturing goals:
- Where to locate new plants
- Invest in new manufacturing technology.
Analyze and monitor manufacturing and production costs and resources.
Status of production tasks.
Finance and accounting IS- some examples of use
Maintaining and managing the firm´s financial records –receipts, depreciation, payroll- to account for the flow of funds in a firm.
How to keep track of a firm´s financial assets and fund flows.
Current inventory of financial assets
Long-term investment goals for the firm and to provide long-range forecasts of the firm´s financial performance.
Oversee and control the firm´s financial resources.
Track the flow of funds in the firm through transactions.
Human Resources information systems
Responsible for attracting, developing, and maintaining the firm´s workforce.
Human resources systems deal with:
- Identifying potential employees
- Maintaining complete records on existing employees
- Creating programs to develop employees´ talents and skills.
