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Chapter 2

Global E-Business: How Businesses Use Information Systems
Lecturer:

Richard Boateng, PhD.
• • Lecturer in Information Systems, University of Ghana Business School Executive Director, PearlRichards Foundation, Ghana

Email:

richard@pearlrichards.org
2.1
© 2010 by Prentice Hall

Management Information Systems
Chapter 2 Global E-Business: How Businesses Use Information Systems

LEARNING OBJECTIVES

• Define and describe business processes and their relationship to information systems. • Evaluate the role played by systems serving the various levels of management in a business and their relationship to each other.

• Explain how enterprise applications, collaboration and communication systems, and intranets improve organizational performance.

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© 2010 by Prentice Hall

WHAT IS AN

ORGANIZATION?

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© 2010 by Prentice Hall

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Organizations and Information Systems
What Is an Organization?

Technical Definition • Stable, formal social structure that takes resources from the environment and processes them to produce outputs Behavioral Definition • A collection of rights, privileges, obligations, and responsibilities that are delicately balanced over a period of time through conflict and conflict resolution 2.4

© 2010 by Prentice Hall

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Organizations and Information Systems
What Is an Organization?

A collection of individuals if left unattended will largely purse individual goals and objectives 2.5
© 2010 by Prentice Hall

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Organizations and Information Systems
Unique Features of Organizations

All organizations have different:
Organizational type Environments Goals Power Constituencies Function Leadership Tasks Technology Business models Business processes

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© 2010 by Prentice Hall

Management Information Systems
Chapter 2 Global E-Business: How Businesses Use Information Systems

Business Processes and Information Systems

• Business processes:
• Workflows of material, information, knowledge • Sets of activities, steps

• May be tied to functional area or be crossfunctional
• Businesses: Can be seen as collection of business processes • Business processes may be assets or liabilities 2.7
© 2010 by Prentice Hall

Management Information Systems
Chapter 2 Global E-Business: How Businesses Use Information Systems

Business Processes and Information Systems

• Examples of functional business processes
– Manufacturing and production
• Assembling the product

– Sales and marketing
• Identifying customers

– Finance and accounting
• Creating financial statements

– Human resources
• Hiring employees

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© 2010 by Prentice Hall

Types of Information Systems
1. Executive Support System (ESS) 2. Decision Support Systems (DSS) 3. Management Information Systems (MIS)

Strategic-Level ManagementLevel

Plan and Project, Forecast - Senior Managers Decision Analysis; Summary Reports - Staff Managers & Middle Managers Models; Graphics; Documents & Mail -Professionals & Clerical Workers Sorting; lists; Detailed Reports; Pay Slips - Operations Personnel; Supervisors © 2010 by Prentice Hall

4. Knowledge Work Systems (OS)

KnowledgeLevel

5. Office Systems (OS)
6. Transaction Process Systems (TPS)
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Operational-Level

Systems that Span the Business

SAP ERP:

Human Resource Systems - Leave Request Example Executive Support Systems – Sales Planning and Forecasting http://www.sap.com/solutions/business-suite/erp/demos/index.epx

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© 2010 by Prentice Hall

Management Information Systems
Chapter 2 Global E-Business: How Businesses Use Information Systems

Types of Business Information Systems

• Transaction processing systems
– Perform and record daily routine transactions necessary to conduct business • Examples: sales order entry, payroll, shipping

– Allow managers to monitor status of operations and relations with external environment – Serve operational levels

– Serve...
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