Information Systems

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Chapter 2

Global E-Business:
EHow Businesses Use
Information Systems

Management Information Systems

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

LEARNING OBJECTIVES



Define and describe business processes and their relationship to information systems
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.

1

Management Information Systems

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

LEARNING OBJECTIVES
(Continued)



Explain the difference between e-business, e-commerce, and
the difference between
and
e-government.



Assess the role of the information systems function in a
business.

Management Information Systems

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

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

Management Information Systems

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

Business Processes and Information Systems

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

Sales and marketing
customers
• Identifying customers

Finance and accounting
• Creating financial statements

Human resources
• Hiring employees

Management Information Systems

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

Business Processes and Information Systems

The Order Fulfillment Process

Fulfilling a customer order involves a complex set of steps that requires the close coordination of the sales, accounting, and manufacturing functions.

Figure 2-1

3

Management
Management Information Systems

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

Business Processes and Information Systems

• Information technology enhances
business processes in two main ways:
• Increasing efficiency of existing
processes
• Automating steps that were manual

• Enabling entirely new processes that are
capable of transforming the businesses
• Change flow of information
• Replace sequential steps with parallel steps
• Eliminate delays in decision making

Management Information Systems

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

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 predefined, structured goals and decision
making

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Management Information Systems

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

Types of Business Information Systems

A Payroll TPS

A TPS for payroll processing captures employee payment transaction data (such as a time card). System outputs include online and hard-copy reports for management and employee paychecks.

Figure 2-2

Management Information Systems

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

Types of Business Information Systems

Management information systems
Serve middle management
Provide reports on firm’s current
performance, based on data from TPS
Provide answers to routine questions with
predefined procedure for answering them
Typically have little analytic capability

5

Management Information Systems

Chapter 2...
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