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Global E-Business How businesses use information systems To keep price low “Save Money, Live Better” Walmart Economies of scale Low overhead Employ the least number of staffs to serve the most many of customers Information systems comes to play Hypermarkets Objectives of IT structure

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global e business

Global E-Business

How businesses

use information systems

To keep price low

“Save Money, Live Better” Walmart

Economies of scale

Low overhead

Employ the least number of staffs to serve the most many of customers

Information systems comes to play

Objectives of IT structure
    • Support daily operations
    • Support customer satisfaction
    • Attract & retain distinguished employees
    • Support decision making
    • Reinforce the relationship with suppliers
    • Reduce risk of operations
2.1 Business processes and Information systems

2.2 Types of business information systems

2.3 Systems that span the enterprise

2.4 The information systems function in business

2 1 business processes and information systems
2.1 Business processes and Information systems
  • Business process
    • The manner in which
      • work is organized, coordinated, and focused
      • to produce a valuable product and service
      • Hire employees
      • New products development
Business process
    • Source of competitive strength
    • Source of liabilities
    • Tied to a specific function area
      • Identify new customers
    • Cross many different functions
      • Order fulfillment process
How information technology enhances business processes:
    • Efficiency and transformation
      • Increase efficiency of existing processes
      • Enable entirely new processes
        • Change the flow of information
          • More people to access and share info
          • Replace sequential steps with simultaneously in parallel
          • Eliminating delays in decision making
2 2 types of business information systems
2.2 Types of business information systems
  • Even small firms have a collection of different systems
    • Two perspectives
      • By business functions
        • Sales & marketing
        • Manufacturing & production
        • Finance & accounting
        • Human resources
By the major organizational groups that info systems serve
    • Operational management
    • Middle management
    • Senior management
Transaction processing systems
    • Operational
    • Keep track of the elementary activities and transactions
      • POS, point-of-sale systems
    • Tasks, resources, and goals are predefined and highly structured
    • Central to a business
Management information systems and decision-support systems
    • Middle management
    • Monitoring, controlling, decision-making, and administrative activities
      • Reports on the organization’s current performance
    • Provide info to routine, specific in advance situations
  • DSS
    • Nonroutine, not fully predefined in advance situations
      • What …., if
      • WHAT would be the impact on the production schedules IF we were to double sales in the month of December?
Executive support systems
    • Senior management
    • Address strategic issues and long term trends
      • What product should we make in 5 years?
    • Incorporate data about external events
      • Use Portal as interface for senior management
    • Draw summarized information from internal MIS and DSS
2 3 systems that span the enterprise
2.3 Systems that span the enterprise
  • Enterprise applications
    • Execute business processes across the business firm
        • Span functional areas
        • Include all levels of management
      • Enterprise systems
      • Supply chain management systems
      • Customer relationship management systems
      • Knowledge management systems
Enterprise systems
    • ERP, enterprise resources planning
    • 企業資源規劃
        • MIS systems can not automatically exchange information to each other
        • Fragmentation of data
      • Collecting data from various key business processes 就源輸入

Information flow as Data flow


Sales information systems




Accounting info systems


Production info systems

Information flow with Data CENTRALIZED



Order Master File




Store data in a single CENTRAL data repository 資料庫
  • Speed communication of information throughout the company
    • A customer place an order
      • Sale dept
    • Data flow automatically to other part of company
      • Production dept
Supply chain management systems
    • Manage relationship with their suppliers
      • Automate the flow of info across organizational boundary






Ability to move products efficiently through the supply chain

    • Lower cost
    • Increase customer service
Interorganizational systems
    • Orbitz, Travelocity, Priceline
      • Airlines, hotels, rental cars, ….
    • Combine their capabilities to offer customers an integrated online shopping experience
haworth inc manufacturer and designer of office furniture
Haworth Inc. –manufacturer and designer of office furniture

Warehouse Management System

Transportation Management System

Customer Relationship management systems
    • Manage the relationships with customers
    • Provide information to coordinate all the business processes that deal with customers
      • Sales, marketing, service
      • Customer satisfaction
      • Customer retention

to optimize revenue

    • Engage customers through 3 channels
        • Dealer network
        • Customer assistance center
        • Lead management systems


      • Compartmentalized
      • Did not share essential customers info


    • Integrating the firm’s customer-related processes
    • Consolidating customers information from multiple communication channels
      • 360 degree of customer
    • Siebel systems
Knowledge management systems
    • Better management processes for capturing and applying knowledge and expertise
      • Create
      • Produce
      • Deliver

Product and service


Intranets and extranets
    • Information integration
    • Networks built with the same tools and communication standard

(internet technology)

      • Intranet: network for internal use
      • Extranet: Intranets extended to authorized users outside the company
        • network for internal use and customer, suppliers use
Collaboration & communication systems:
    • Knowledge economy
      • Primary value-added activity of jobs
        • Interaction
          • Talking,
          • Emailing,
          • Presenting,
          • Persuading
      • Require sharing information & interacting with other people
Face to face interactions
  • With information systems
    • Internet-based collaboration environments
      • Workgroup collaboration
      • Team documents
      • Email for team communications
      • Group calendar
      • Live video conference
        • IBM Lotus Sametime
        • Microsoft Office Live Meeting
        • Adobe Acrobat Connect
Email & Instant Messaging
  • Cell phone & Smartphone
    • Mobile platform
      • Blackberry
  • Social networking
    • Help people share their interests and interact
      • serving professional
    • Allow users to contribute and edit contents
      • Major repository for unstructured corporate knowledge
      • Inefficiency: people asking & answer the same question repeatedly
      • More dynamic & current
  • Virtual Worlds
    • Online virtual community
E-Business, E-Commerce, E-Government
    • Use of digital technology and the Internet to execute the major business processes
2 4 the information system function in business
2.4 The Information System Functionin Business
  • Formal organizational unit

responsible for information technology service


    • Programmer
    • System analyst
    • Information systems manager
    • Chief information officer (CIO)
    • End users
Organizing the information systems function
    • Decentralized
      • Each function has its own MIS department
      • Fig. 2-10(A)
    • Centralized
      • MIS operate as a separate department
      • Fig. 2-10(B)
    • Combined
      • “Fortune 1000”-size firms, Fig. 2-10 (C)
IT governance
    • Strategy & policies for using information technology within an organization
interactive session
Interactive session


  • Technology
    • Air Canada: Web_based system to enhance visibility of fleet_wide data around the world
    • P.80
  • Management
    • Printing & packaging company goes digital
    • P. 83