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22Chapter Chapter

Global E-Business:Global E-Business:How BusinessesHow Businesses

Use InformationUse Information

SstemsSstems

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!E"#$I$G %B&EC'I(ES

)ana*ement Information Sstems)ana*ement Information SstemsChapter 2 Global E-Business: How Businesses Use Information SstemsChapter 2 Global E-Business: How Businesses Use Information Sstems

• +efine an, ,esribe business proesses an,

their relationship to information sstems.

• +esribe the information sstems supportin* the

maor business funtions: sales an, mar/etin*0

manufaturin* an, pro,ution0 finane an,

aountin*0 an, human resoures.

• Ealuate the role plae, b sstems serin* the

arious leels of mana*ement in a business an,

their relationship to eah other.

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Business 8roesses an, Information Sstems

Business proesses:Business proesses:

• )anner in whih wor/ is or*ani4e,0 oor,inate,0)anner in whih wor/ is or*ani4e,0 oor,inate,0

an, fouse, to pro,ue a aluable pro,ut oran, fouse, to pro,ue a aluable pro,ut orserieserie

• Conrete wor/ flows of material0 information0 an,Conrete wor/ flows of material0 information0 an,

/nowle,*e<sets of atiities/nowle,*e<sets of atiities

• Uni=ue was to oor,inate wor/0 information0 an,Uni=ue was to oor,inate wor/0 information0 an,

/nowle,*e/nowle,*e

• 9as in whih mana*ement hooses to9as in whih mana*ement hooses to

oor,inate wor/oor,inate wor/

I$'EG#"'I$G >U$C'I%$S "$+ BUSI$ESS 8#%CESSES:

Intro,ution to Enterprise "ppliations

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5Continue,6

• Information sstems help or*ani4ationsInformation sstems help or*ani4ations

ahiee *reat effiienies b automatin* partsahiee *reat effiienies b automatin* partsof proessesof proesses

• IS also ontributes to ompletel rethin/in*IS also ontributes to ompletel rethin/in*

proesses.proesses.

• Business proesses tpiall span seeralBusiness proesses tpiall span seeral

,ifferent funtional areas.,ifferent funtional areas.



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E3amples of Business 8roesses

)anufaturin* an, pro,ution:

• "ssemblin* pro,ut0 he/in* =ualit0 pro,uin*bills of materials

Sales an, mar/etin*:

• I,entifin* ustomers0 reatin* ustomerawareness0 sellin*



Table 2.6

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>inane aountin*>inane aountin*:

• 8ain* re,itors0 reatin* finanial statements08ain* re,itors0 reatin* finanial statements0

mana*in* ash aountsmana*in* ash aounts

Human resouresHuman resoures: • Hirin* emploees0 ealuatin* performane0Hirin* emploees0 ealuatin* performane0

enrollin* emploees in benefits plansenrollin* emploees in benefits plans



E3amples of Business 8roesses 5Continue,6

Table 2.6 continued

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Cross->untional Business 8roesses:Cross->untional Business 8roesses:

• 'ransen, boun,ar between sales0 mar/etin*0'ransen, boun,ar between sales0 mar/etin*0

manufaturin*0 an, researh an, ,eelopmentmanufaturin*0 an, researh an, ,eelopment

• Group emploees from ,ifferent funtionalGroup emploees from ,ifferent funtionalspeialties to a omplete piee of wor/speialties to a omplete piee of wor/

E3ample: %r,er >ulfillment 8roessE3ample: %r,er >ulfillment 8roess



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SS'E)S >#%) " >U$C'I%$"! 8E#S8EC'I(E

Sales an, )ar/etin* Sstems

)aor funtions of sstems:

• Sales mana*ement0 mar/et researh0 promotion0priin*0 new pro,uts

)aor appliation sstems:

• Sales or,er info sstem0 mar/et researh sstem0priin* sstem

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)ana*ement Information Sstems)ana*ement Information SstemsChapter 2 Information Sstems in the EnterpriseChapter 2 Information Sstems in the Enterprise

SS'E)S >#%) " >U$C'I%$"! 8E#S8EC'I(E

Sales an, )ar/etin* Sstems

SS'E) +ESC#I8'I%$ %#G"$IF"'I%$"!

!E(E!

%r,er

proessin*

Enter0 proess0 an, tra/ or,ers %perational

8riin* analsis +etermine pries for pro,uts an,

series

)ana*ement

Sales tren,

foreastin*

8repare ;-ear sales foreasts Strate*i

Table 2-2

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SS'E)S >#%) " >U$C'I%$"! 8E#S8EC'I(E

)anufaturin* an, 8ro,ution Sstems


• She,ulin*0 purhasin*0 shippin*0 reeiin*0en*ineerin*0 operations


• )aterials resoure plannin* sstems0 purhaseor,er ontrol sstems0 en*ineerin* sstems0

=ualit ontrol sstems

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SS'E)S >#%) " >U$C'I%$"! 8E#S8EC'I(E

SS'E) +ESC#I8'I%$ %#G"$IF"'I%$"!

!E(E!

)ahine

ontrol

Control the ations of mahines an,

e=uipment

%perational

8ro,ution

plannin*

+ei,e when an, how man pro,uts

shoul, be pro,ue,

)ana*ement

>ailities

loation

+ei,e where to loate new pro,ution

failities

Strate*i

)anufaturin* an, 8ro,ution Sstems

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%eriew of an Inentor Sstem

>i*ure 2-

SS'E)S >#%) " >U$C'I%$"! 8E#S8EC'I(E

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SS'E)S >#%) " >U$C'I%$"! 8E#S8EC'I(E

>inanin* an, "ountin* Sstems


• Bu,*etin*0 *eneral le,*er0 billin*0 ostBu,*etin*0 *eneral le,*er0 billin*0 ostaountin*aountin*


• General le,*er0 aounts reeiable0 aountsGeneral le,*er0 aounts reeiable0 aountspaable0 bu,*etin*0 fun,s mana*ement sstemspaable0 bu,*etin*0 fun,s mana*ement sstems

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SS'E)S >#%) " >U$C'I%$"! 8E#S8EC'I(E

>inanin* "ountin* Sstems 5Continue,6

SS'E) +ESC#I8'I%$ %#G"$IF"'I%$-

"! !E(E!

"ounts

reeiable

'ra/s mone owe, the firm %perational

Bu,*etin* 8repares short-term bu,*ets )ana*ement

8rofit plannin* 8lans lon*-term profits Strate*i

Table 2-4

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SS'E)S >#%) " >U$C'I%$"! 8E#S8EC'I(E

Human #esoure Sstems


• 8ersonnel reor,s0 benefits0 ompensation0 labor8ersonnel reor,s0 benefits0 ompensation0 laborrelations0 trainin*relations0 trainin*


• 8aroll0 emploee reor,s0 benefit sstems08aroll0 emploee reor,s0 benefit sstems0areer path sstems0 personnel trainin* sstemsareer path sstems0 personnel trainin* sstems

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SS'E)S >#%) " >U$C'I%$"! 8E#S8EC'I(E

Human #esoure Sstems 5Continue,6

SS'E) +ESC#I8'I%$ %#G"$IF"'I%$"!

!E(E!

'rainin* an,,eelopment

'ra/s emploee trainin*0 s/ills0an, performane appraisals

%perational

Compensation

analsis

)onitors the ran*e an, ,istribution

of emploee wa*es0 salaries0 an,

benefits

)ana*ement

Human resoures

plannin*

8lans the lon*-term labor fore

nee,s of the or*ani4ation

Strate*i

Table 2-5

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Human #esoure Sstems 5Continue,6 "n Emploee #eor,/eepin* Sstem

>i*ure 2-;

SS'E)S >#%) " >U$C'I%$"! 8E#S8EC'I(E

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)"&%# '8ES %> SS'E)S I$ %#G"$IF"'I%$S

+ifferent in,s of Sstems

1. %perational-leel sstems: support operational mana*ers0/eepin* tra/ of the elementar atiities an,transations

2. )ana*ement-leel sstems: sere the monitorin*0

ontrollin*0 ,eision-ma/in*0 an, a,ministratie atiities

. Strate*i-leel sstems: help senior mana*ement ta/lean, a,,ress strate*i issues

'hree main ate*ories of information sstems sere

,ifferent or*ani4ational leels:

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)"&%# '8ES %> SS'E)S I$ %#G"$IF"'I%$S

)aor 'pes of Sstems

• 'ransation 8roessin* Sstems 5'8S6

• )ana*ement Information Sstems 5)IS6

• +eision-Support Sstems 5+SS6

• E3eutie Support Sstems 5ESS6

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)"&%# '8ES %> SS'E)S I$ %#G"$IF"'I%$S

'ransation 8roessin* Sstems 5'8S6

• Basi business sstems that sere the

operational leel

• " omputeri4e, sstem that performs an,

reor,s the ,ail routine transations neessar

to the on,ut of the business

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)"&%# '8ES %> SS'E)S I$ %#G"$IF"'I%$S

" Smboli #epresentation for a 8aroll '8S

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)"&%# '8ES %> SS'E)S I$ %#G"$IF"'I%$S

)ana*ement Information Sstems 5)IS6

)ana*ement leel

• Inputs: Hi*h olume transation leel ,ata

• 8roessin*: Simple mo,els

• %utputs: Summar reports

• Users: )i,,le mana*ers

E3ample: "nnual bu,*etin*

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)"&%# '8ES %> SS'E)S I$ %#G"$IF"'I%$S

)ana*ement Information Sstems 5)IS6 5ontinue,6

>i*ure 2-?

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)"&%# '8ES %> SS'E)S I$ %#G"$IF"'I%$S

)ana*ement Information Sstems 5)IS6 5ontinue,6

>i*ure 2-@

" sample )IS report

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)"&%# '8ES %> SS'E)S I$ %#G"$IF"'I%$S

+eision-Support Sstems 5+SS6

)ana*ement leel

• Inputs: 'ransation leel ,ata

• 8roessin*: Interatie

• %utputs: +eision analsis

• Users: 8rofessionals0 staff

E3ample: Contrat ost analsis

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)"&%# '8ES %> SS'E)S I$ %#G"$IF"'I%$S

EECU'I(E SU88%#' SS'E)S 5ESS6:

• Inputs: "**re*ate ,ata

• 8roessin*: Interatie

• %utputs: 8roetions

• Users: Senior mana*ers

E3ample: ; ear operatin* plan

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)"&%# '8ES %> SS'E)S I$ %#G"$IF"'I%$S

EECU'I(E SU88%#' SS'E)S 5ESS6 5Continue,6

• 'op !eel )ana*ement

• +esi*ne, to the in,ii,ual senior mana*er

• 'ies CE% to all leels

• (er e3pensie to /eep up

• E3tensie support staff

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)"&%# '8ES %> SS'E)S I$ %#G"$IF"'I%$S

#elationship of Sstems to %ne "notherInterrelationships amon* sstems

>i*ure 2-1D

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)"&%# '8ES %> SS'E)S I$ %#G"$IF"'I%$S

#elationship of Sstems to %ne "nother

In ontemporar ,i*ital firms0 the ,ifferent tpes of

sstems are losel lin/e, to one another. 'his is

the i,eal. In tra,itional firms these sstems ten, tobe isolate, from one another0 an, information ,oes

not flow seamlessl from one en, of the or*ani4ation

to the other. Effiien an, business alue ten, to

suffer *reatl in these tra,itional firms

) I f i S

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Sstems for Enterprise-9i,e 8roess Inte*ration

Enterprise appliations:

• +esi*ne, to support or*ani4ation-wi,e proess+esi*ne, to support or*ani4ation-wi,e proessoor,ination an, inte*rationoor,ination an, inte*ration



f S) t I f ti S t

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Consist ofConsist of :

• Enterprise sstems• Suppl hain mana*ement sstems

• Customer relationship mana*ement sstems

• nowle,*e mana*ement sstems


Sstems for Enterprise-9i,e 8roess Inte*ration

5Continue,6



) t I f ti S t) t I f ti S t

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Enterprise Sstems

• Enterprise sstems0 also /nown as enterpriseEnterprise sstems0 also /nown as enterprise

resoure plannin* 5E#86 sstems0 proi,e aresoure plannin* 5E#86 sstems0 proi,e a

sin*le information sstem for or*ani4ation-wi,esin*le information sstem for or*ani4ation-wi,eoor,ination an, inte*ration of /e businessoor,ination an, inte*ration of /e business

proesses.proesses.

• Information that was preiousl fra*mente, inInformation that was preiousl fra*mente, in,ifferent sstems an seamlessl flow,ifferent sstems an seamlessl flow

throu*hout the firm so that it an be share, bthrou*hout the firm so that it an be share, b

business proesses in manufaturin*0business proesses in manufaturin*0

aountin*0 human resoures0 an, other areas.aountin*0 human resoures0 an, other areas.




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'ra,itional SiloJ (iew of Information Sstems

9ithin the business:9ithin the business:

•'here are funtions0 eah hain* its uses of'here are funtions0 eah hain* its uses ofinformation sstemsinformation sstems

%utsi,e the or*ani4ations boun,aries:%utsi,e the or*ani4ations boun,aries:

• 'here are ustomers an, en,ors'here are ustomers an, en,ors

>untions ten, to wor/ in isolation>untions ten, to wor/ in isolation




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'ra,itional (iew of Sstems



) t I f ti S t)ana*ement Information Sstems

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Enterprise Sstems

>i*ure 2-12



)ana*ement Information Sstems)ana*ement Information Sstems

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Benefits of Enterprise Sstems

• Help to unif the firms struture an,Help to unif the firms struture an,

or*ani4ation:or*ani4ation: %ne or*ani4ation%ne or*ani4ation

• )ana*ement:)ana*ement: >irm wi,e /nowle,*e-base,>irm wi,e /nowle,*e-base,

mana*ement proessesmana*ement proesses

• 'ehnolo*:'ehnolo*: Unifie, platformUnifie, platform

• Business:Business: )ore effiient operations ustomer-)ore effiient operations ustomer-

,rien business proesses,rien business proesses




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Challen*es of Enterprise Sstems

• +iffiult to buil,:+iffiult to buil,: #e=uire fun,amental han*es in#e=uire fun,amental han*es in

the wa the business operatesthe wa the business operates

• 'ehnolo*:'ehnolo*: #e=uire omple3 piees of software#e=uire omple3 piees of software

an, lar*e inestments of time0 mone0 an,an, lar*e inestments of time0 mone0 an,

e3pertisee3pertise

• Centrali4e, or*ani4ational oor,ination an,Centrali4e, or*ani4ational oor,ination an,

,eision ma/in*:,eision ma/in*: $ot the best wa for the firms to$ot the best wa for the firms to

operateoperate



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• Helps in prourement of materials0Helps in prourement of materials0

transformation of raw materials into interme,iatetransformation of raw materials into interme,iate

an, finishe, pro,utsan, finishe, pro,uts

• Helps in ,istribution of the finishe, pro,uts toHelps in ,istribution of the finishe, pro,uts to

ustomersustomers

• Inlu,es reerse lo*istis - returne, items flow inInlu,es reerse lo*istis - returne, items flow in

the reerse ,iretion from the buer ba/ to thethe reerse ,iretion from the buer ba/ to the

seller seller

Suppl Chain )ana*ement 5SC)6




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Information from Suppl Chain )ana*ement

Sstems helps firms:

• +ei,e when an, what to pro,ue0 store0+ei,e when an, what to pro,ue0 store0

an, moean, moe

• #api,l ommuniate or,ers#api,l ommuniate or,ers

• 'ra/ the status of or,ers'ra/ the status of or,ers

• Che/ inentor aailabilit an, monitorChe/ inentor aailabilit an, monitor

inentor leelsinentor leels




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Information from Suppl Chain )ana*ement

Sstems helps firms: 5Continue,6

• #e,ue inentor0 transportation0 an,#e,ue inentor0 transportation0 an,

warehousin* ostswarehousin* osts

• 'ra/ shipments'ra/ shipments

• 8lan pro,ution base, on atual ustomer8lan pro,ution base, on atual ustomer,eman,,eman,

• #api,l ommuniate han*es in pro,ut ,esi*n#api,l ommuniate han*es in pro,ut ,esi*n




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Customer #elationship )ana*ement 5C#)6

• )ana*es all was use, b firms to ,eal with)ana*es all was use, b firms to ,eal with

e3istin* an, potential new ustomerse3istin* an, potential new ustomers

• Business an, tehnolo* ,isiplineBusiness an, tehnolo* ,isipline

• Uses information sstem to oor,inate entireUses information sstem to oor,inate entirebusiness proesses of a firmbusiness proesses of a firm




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Customer #elationship )ana*ement 5C#)6

5Continue,6

•8roi,es en,- to- en, ustomer are8roi,es en,- to- en, ustomer are

• 8roi,es a unifie, iew of ustomer aross the8roi,es a unifie, iew of ustomer aross the

ompanompan

• Consoli,ates ustomer ,ata from multipleConsoli,ates ustomer ,ata from multiple

soures an, proi,es analtial tools forsoures an, proi,es analtial tools for

answerin* =uestionsanswerin* =uestions




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nowle,*e )ana*ement Sstems

• Collets releant /nowle,*e an, ma/e it aailableCollets releant /nowle,*e an, ma/e it aailable

whereer an, wheneer it is nee,e,whereer an, wheneer it is nee,e,

• Support business proesses an, mana*ementSupport business proesses an, mana*ement

,eisions,eisions

• "lso lin/ the firm to e3ternal soures of"lso lin/ the firm to e3ternal soures of

/nowle,*e/nowle,*e

• Support proesses for a=uirin*0 storin*0Support proesses for a=uirin*0 storin*0

,istributin*0 an, applin* /nowle,*e,istributin*0 an, applin* /nowle,*e



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