2. What is E-Business? Businesses:
E- (Electronic ): means the computer uses electronic components to process information
Businesses:
Can be seen as collection of business processes
Business processes may be assets or liabilities
E-business refers to a broader definition of e-commerce, not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, conducting e-learning, and processing electronic transactions.

3. Information Technology
Computer technology is encountered in many places today and in many different forms.
Information is the act of informing or the condition of being informed, the communication of knowledge derived from study, experience, or instruction
Technology is the application of science, especially to industrial or commercial objectives
Information Technology (IT) refers to the creation, gathering, processing, storage, and delivery of information and the processes and devices that make this possible.

4. What is a business process?
Business processes:
Environmental factors and enterprise applications have forced businesses to examine their processes.
Manner in which work is organized, coordinated and focused to produce a valuable product or service
Concrete work flows of material, information, and knowledge—sets of activities
Information systems help organizations
Achieve great efficiencies by automating parts of processes
Rethink and streamline processes

5. Examples of Business Processes
Manufacturing and production:
Assembling product, checking quality, producing bills of materials
Sales and marketing:
Identifying customers, creating customer awareness, selling
Finance and accounting:
Paying creditors, creating financial statements, managing cash accounts
Human Resources:
Hiring employees, evaluating performance, enrolling employees in benefits plans

6. Examples: How IT Changes Business Process
Ordering a book
Tracking a package
Trading stocks
Paying bills
Developing a photograph
Designing an airplane/car
Registering for a class
Capturing and sharing employee knowledge

7. Integrating Functions & Business Processes:
Cross-Functional Business Processes:
Transcend boundary between sales, marketing, manufacturing, and research and development
Group employees from different functional specialties to a complete piece of work
Example: Order Fulfillment Process

8. The Order Fulfillment Process
Figure 2-1

9. What Are Information Systems?
An information system (IS) is a set of interrelated components working together to (1) facilitate operational functions and (2) support management decision making by producing information that enables managers to plan and control.
Components include hardware, software, data, people, and procedures
An (IS) is an organizational and management solution based on information technology to a challenge posed by the environment
Information technology (IT) includes computer hardware, software, storage technologies, and telecommunications/networks

10. Basic Functions of Information Systems
Information systems are models of physical systems
Information systems engage in four basic activities in order to support operations and management decision making
Input
Processing
Output
Feedback for operations and decision making
Feedback on the performance of IS
Storage

11. MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Transaction Processing Systems (TPS)
Management Information Systems (MIS)
Decision Support Systems (DSS)
Executive Support Systems (ESS)

12. Ways to Categorize Information Systems
By the groups they serve
Operational level
Management level
Strategic level
By functional area
Sales and marketing
Manufacturing and production
Finance and accounting
Human resources

13. The Four Major Types of Information Systems by the Groups They Serve & Functional Area

14. Transaction Processing Systems (TPS)
Basic business systems that serve the operational level
A computerized system that facilitates daily routine transactions necessary to the conduct of the business and captures and stores data associated with the transaction

15. A Symbolic Representation for a Payroll TPS

16. Management Information System (MIS)
MIS serve the management level of the organization, providing managers with reports and online access to the organization’s current performance and historical records.
Inputs: High-volume data
Processing: Simple models
Outputs: Summary reports
Users: Middle managers
Example: Annual budgeting

17. Management Information Systems (MIS) (continued)

18. Decision Support System (DSS)
DSS serve the management level and help managers make decision that are unique, rapidly changing, and not easily specified in advance (use of mathematical models)
Inputs: Low-volume data
Processing: Interactive (e.g., what-if analysis), data- mining, OLAP
Outputs: Decision analysis
Users: Professionals, staff
Example: Contract cost analysis

19. Decision-Support Systems (DSS) (Continued)
Voyage-estimating decision-support system

20. Executive Support System (ESS)
ESS support strategic level managers to help make decisions that are non-routine requiring judgment, evaluation, and insight.
Inputs: Aggregate data
Processing: Interactive
Outputs: Projections
Users: Senior managers
Example: 5-year operating plan

21. Executive Support System (ESS)
Top level management
Designed to the individual
Ties CEO to all levels
Very expensive to keep up
Extensive support staff

22. Model of a Typical Executive Support System

23. Interrelationships Among Systems
TPS are typically a major source of data for other systems
MIS are sources for DSS and ESS
DSS is a source for ESS
Sometimes a single system serves many purposes
In contemporary digital firms, the different types of systems are closely linked to one another. This is the ideal. In traditional firms these systems tend to be isolated from one another, and information does not flow seamlessly from one end of the organization to the other. Efficiency and business value tend to suffer greatly in these traditional firms.

24. Relationship of Systems to One Another
Interrelationships among systems

25. Organizing Systems by Functional Area
Sales and marketing
Manufacturing and production
Finance and accounting
Human resources

26. Sales and Marketing Systems
Major functions of systems:
Sales management, market research, promotion, pricing, new products
Major application systems:
Sales order info system, market research system, pricing system

27. Sales and Marketing Systems
SYSTEM
DESCRIPTION
ORGANIZATIONAL LEVEL
Order processing
Enter, process, and track orders
Operational
Pricing analysis
Determine prices for products and services
Management
Sales trend forecasting
Prepare 5-year sales forecasts
Strategic

28. Manufacturing and Production Systems
Major functions of systems:
Scheduling, purchasing, shipping, receiving, engineering, operations
Major application systems:
Materials resource planning systems, purchase order control systems, engineering systems, quality control systems

29. Manufacturing and Production Systems
SYSTEM
DESCRIPTION
ORGANIZATIONAL LEVEL
Machine control
Control the actions of machines and equipment
Operational
Production planning
Decide when and how many products should be produced
Management
Facilities location
Decide where to locate new production facilities
Strategic

30. Overview of an Inventory System

31. Financing and Accounting Systems
Major functions of systems:
Budgeting, general ledger, billing, cost accounting
Major application systems:
General ledger, accounts receivable, accounts payable, budgeting, funds management systems

32. Financing & Accounting Systems (Continued)
DESCRIPTION
ORGANIZATION-AL LEVEL
Accounts receivable
Tracks money owed the firm
Operational
Budgeting
Prepares short-term budgets
Management
Profit planning
Plans long-term profits
Strategic

33. Human Resource Systems
Major functions of systems:
Personnel records, benefits, compensation, labor relations, training
Major application systems:
Payroll, employee records, benefit systems, career path systems, personnel training systems

34. Human Resource Systems (Continued)
SYSTEM
DESCRIPTION
ORGANIZATIONAL LEVEL
Training and development
Tracks employee training, skills, and performance appraisals
Operational
Compensation analysis
Monitors the range and distribution of employee wages, salaries, and benefits
Management
Human resources planning
Plans the long-term labor force needs of the organization
Strategic

35. Human Resource Systems (Continued) An Employee Recordkeeping System

36. Organizational Challenges
E-commerce, e-business, and global competition force companies to bring products to market faster, improve customer service, and execute processes more efficiently.
These objectives require integrated information from different functional areas, levels of management, and coordination with business partners (e.g., customers and suppliers).

37. Overcome the Challenges:
Solution
Enterprise applications that coordinate, activities, and knowledge across intra- and inter- firm boundaries
Inter organizational systems that automate information flows across organizational boundaries (an inter-firm system)

38. Systems for Enterprise-Wide Process Integration
Enterprise applications:
Designed to support organization-wide process coordination and integratio
Consist of :
Enterprise systems
Supply chain management systems
Customer relationship management systems
Knowledge management systems

39. 1. Enterprise System
Enterprise systems, also known as enterprise resource planning (ERP) systems, provide a single information system for organization-wide coordination and integration of key business processes.
Information that was previously fragmented in different systems can seamlessly flow throughout the firm so that it can be shared by business processes in manufacturing, accounting, human resources, and other areas.

40. Traditional View of Systems

41. Enterprise Systems

42. Benefits of Enterprise System
Help to unify the firm’s structure and organization: One organization
Management: Firm wide knowledge-based management processes
Technology: Unified platform
Business: More efficient operations & customer- driven business processes

43. Challenges of Enterprise Systems
Difficult to build: Require fundamental changes in the way the business operates
Technology: Require complex pieces of software and large investments of time, money, and expertise
Centralized organizational coordination and decision making: Not the best way for the firms to operate

44. 2. Supply Chain Management (SCM)
Close linkage and coordination of activities involved in buying, making, and moving a product
Integrates supplier, manufacturer, distributor, and customer logistics time
Reduces time, redundant effort, and inventory costs
Network of organizations and business processes

45. 2. Supply Chain Management (SCM)
Helps in procurement of materials, transformation of raw materials into intermediate and finished products
Helps in distribution of the finished products to customers
Includes reverse logistics - returned items flow in the reverse direction from the buyer back to the seller

47. Information from Supply Chain Management Systems helps firms:
Decide when and what to produce, store, and move
Rapidly communicate orders
Track the status of orders
Check inventory availability and monitor inventory levels
Reduce inventory, transportation, and warehousing costs
Track shipments
Plan production based on actual customer demand
Rapidly communicate changes in product design

48. 3. Customer Relationship Management (CRM)
Manages all ways used by firms to deal with existing and potential new customers
Both a business and technology discipline
Uses information system to coordinate entire business processes of a firm
Provides end- to- end customer care
Provides a unified view of customer across the company
Consolidates customer data from multiple sources and provides analytical tools for answering questions

50. 4. Knowledge Management Systems
Collects relevant knowledge and make it available wherever and whenever it is needed
Support business processes and management decisions
Also link the firm to external sources of knowledge
Support processes for acquiring, storing, distributing, and applying knowledge

52. MANAGEMENT OPPORTUNITIES & CHALLENGES
Management Challenges:
Integration and the whole firm view: Given the different interests and perspectives within a firm, it is difficult to achieve consensus about the need for the "whole firm" viewpoint.
Management and employee training: Training a large number of employees on many systems in a large organization involves commensurately large investments.
Accounting for the cost of systems and managing demands for systems: Given the large number of different types of systems in a firm, and the large number of people involved with using them, it is a complex task to understand which systems are truly necessary and productive with high returns on investment

53. Job Titles in the IS Area
Programmers
Systems analysts
Information systems managers
Chief information officer (CEO)
Chief security officer
Chief knowledge officer
Database administrator
Network administrator
End users