Laudon Mis12 CHAPTER 02

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Management Information Systems
MANAGING THE DIGITAL FIRM, 12TH EDITION

Chapter 2
GLOBAL E-BUSINESS AND
COLLABORATION
VIDEO CASES
Case 1: How FedEx Works: Enterprise Systems
Case 2: Oracle's Austin Data Center Instructional Video 1: FedEx Improves Customer Experience with Integrated Mapping and Location Data

Management Information Systems
CHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION

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 improve
organizational performance.

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Management Information Systems
CHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION

Learning Objectives (cont.)

• Explain the importance of collaboration and
teamwork in business and how they are supported
by technology.
• Assess the role of the information systems function
in a business.

3

Management Information Systems
CHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION

America’s Cup 2010: USA Wins with Information Technology

• Problem: Using IT to win the America’s Cup race
• Solutions: New technology for physical engineering of
boat; sensor network to monitor conditions and data
analysis to improve the performance of sails and more.
• IBM Oracle Database 11g data management software
provided real time analysis of boat’s sensor data.
• Demonstrates IT’s role in fostering innovation and
improving performance.
• Illustrates the benefits of using data analysis and IT to improve products
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Management Information Systems
CHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION

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
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Management Information Systems
CHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION

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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Management Information Systems
CHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION

Business Processes and Information Systems
The Order Fulfillment Process

FIGURE 2-1

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

Management Information Systems
CHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION

Business Processes and Information Systems

• Information technology enhances business
processes in two main ways:
1. Increasing efficiency of existing processes
• Automating steps that were manual
2. 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
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Management Information Systems
CHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION

Types of 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 AND COLLABORATION

Types of Information Systems
A Payroll TPS
A TPS for payroll
processing captures
employee payment
transaction data (such as
a time card). System
outputs...
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