1. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 1 Understanding Information and e-Business Chapter14

2. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 2  Management information system (MIS) A system that provides managers and employees with the information they need to perform their jobs as effectively as possible  Information technology officer A manager at the executive level who is responsible for ensuring that a firm has the equipment necessary to provide the information the firm’s employees and managers need to make effective decisions What Is a Management Information System?

3. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 3 Management Information System (MIS)

4. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 4  A firm’s information requirements Summary of future possibilities Summary of present situation Summary of past performance Information about five areas of management: finance, operations, marketing, human resources, and administration  Size and complexity of the system Must be properly sized to provide sufficient information resources without being too simple or too complex to be useful Management Information System (cont.)

5. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 5  Every MIS must be tailored to the organization it serves and must perform five functions

6. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 6  Processing data Data and Information are not the same thing. Data has to be analyzed and become meaningful and useful to be considered to be information. For example: – 2012 Sales were $500,000 (this is Data) – Means nothing unless we compare it to other years’ performance and then are possibly able to predict next year’s performance. (This is then useful information!) How Do Employees Use a Management Information System? (cont.)

7. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 7 Seven Tips for Effective E-mail Communication

8. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 8 Using Computers and the Internet to Obtain Information (cont.)  Creating web sites Reflects the company image Should be kept current Most companies manage their sites internally but some pay an outside hosting service to provide site management

9. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 9 Tips for Web Site Development

10. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 10  Mr. Roger’s Neighborhood An Example of a Web Site

11. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 11  E-business (electronic business)—the organized effort of individuals to produce and sell, for a profit, the products and services that satisfy society’s needs through the facilities available on the Internet Defining e-Business

12. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 12  Satisfying needs online The Internet has created new customer needs E-business can satisfy those needs, as well as traditional ones – Global access to information and entertainment – Virtually unlimited selection of products – Opportunities for interaction – Individually custom-tailored content E-Business must Satisfy Needs like any other business

13. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 13  Creating e-business profit Increasing sales revenue Revenue stream—source of revenue flowing into a firm. Examples of revenue streams: – Sales of merchandise online – Intelligent information systems to suggest purchases to repeat online customers – Increased sales in physical stores because of product information available online – Advertising on web pages – Subscription fees charged for access to online services and content – Sale of company assets? Not a revenue stream. Creating e-Business Profit

14. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 14  Creating e-business profit (cont.) Reducing expenses – Offering online services that: – Reduce transaction costs – Provide information – Provide customer assistance – Reduces the costs of dealing with customers – Reduces the need for as many physical store locations Creating e-Business Profit (cont.)

15. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 15 Planning for a New Internet Business or Building an Online Presence for an Existing Business

16. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 16  The Internet and e-business will continue to expand along with related computer technologies.  Internet growth potential Opportunity: only about 1.8 billion of the world’s nearly 7 billion people use the Web. Americans comprise 12 percent of all users. Internet growth potential in the U.S. is limited since 73 percent of Americans already use it. Projections indicate worldwide users will exceed 2.1 billion by 2012. Social network site—a Web site that functions like an online community of Internet users who share personal information, messages, photos, friends. The Future of Computer Technology, the Internet, and e-Business

17. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 17 Chapter Quiz 1. Data presented in a form useful for a specific purpose is A. factual data. B. information. C. statistical data. D. a computer information base. E. a computer network.

18. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 14 | Slide 18 Chapter Quiz 2. The term that refers to buying and selling activities conducted online is a. Internet business. b. e-business. c. online sales. d. e-marketing. e. e-sales.