Global E Business and Collaboration

 

GLOBAL E BUSINESS AND COLLABORATION BUSINESS PROCESSES AND INFORMATION SYSTEM In order to operate, businesses must deal with many different pieces of information about suppliers, customers, employees, invoices and payments, and their products and services. Information systems make it possible for firms to manage all their information, make better decisions, and improve the execution of their t heir business processes. Information systems automate many steps in business processes that were formerly performed perform ed manually, such as checking a client’s credit, or generating an invoice and shipping order. But today, information technology can do much more. New technology can actually change the flow of information, making it possible for many more people to access and share information, replacing sequential steps with tasks that can ca n be performed simultaneously, and eliminating delays in decision making. New information technology frequently changes the way a business works and supports entirely new business models. TRANSACTION PROCESSING SYSTEMS A transaction processing system is a computerized system that performs and records the daily routine transactions necessary to conduct business. The principal purpose of systems at this level is to answer routine questions and to track the flow of transactions through the organization. Managers need TPS to monitor the status of internal operations and the firm’s relations with the external environment. BUSINESS INTELLIGENCE SYSTEMS FOR DECISION SUPPORT Management Information Systems (MIS) designates a specific category of information systems serving middle management. MIS provide middle managers with reports on the organization’s current performance. This information is used to  to  monitor and control the business and predict future performance. In contrast, decision-support systems (DSS) support more non-routine decision making. They focus on problems that are unique and rapidly changing, for which the procedure for arriving at a solution may not be fully predefined in advance. Executive support systems (ESS) help senior management make these decisions. They address non-routine decisions requiring judgment, evaluation, and insight because there is no agreed-on procedure for arriving at a solution. ESS present graphs and data from many sources through an interface that is easy for senior managers to use. SYSTEMS FOR LINKING THE ENTERPRISE Enterprise applications are systems that span functional areas, focus on executing business processes across the business firm, and include all levels of management. There are four major enterprise applications: ENTERPRISE SYSTEMS Enterprise Systems, also known as enterprise resource planning (ERP) systems, integrate business processes in manufacturing and production, finance and accounting, sales and marketing, and human resources into a single software system.

 

SUPPLY CHAIN MANAGEMENT SYSTEMS Firms use supply chain management (SCM) systems to help manage relationships with their suppliers. The ultimate objective is to get the right amount of their products from their source to their point of consumption in the least amount of time and at the lowest cost. CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS Firms use customer relationship management (CRM) systems to help manage their relationships with their customers. CRM systems provide information to coordinate all of the business processes that deal with customers in sales, marketing, and service to optimize revenue, customer satisfaction, and customer retention. KNOWLEDGE MANAGEMENT SYSTEMS Knowledge management systems (KMS) enable organizations to better manage processes for capturing and applying knowledge and expertise. These systems collect all relevant knowledge and experience in the firm, and make it available wherever and whenever it is needed to improve business processes and management decisions. THE INFORMATION SYSTEMS FUNCTION IN BUSINESS The information systems department consists of specialists, such as programmers, systems analysts, project leaders, and information systems managers. There are many types of business firms, and there are many ways in which the IT function is organized within the firm. A very small company will not have a formal information systems group. Larger companies will have a separate information systems department, which may be organized along several different lines, depending on the nature and interests of the firm.