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Business processes

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A business process is a logically related set of activities that define how specific business tasks are performed. A business can be viewed as a collection of business processes.

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How information technology enhances business processes: efficiency and transformation

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1.Increasing the efficiency of existing processes
2.Enabling entirely new processes that are capable of transforming the business.(Amazon, Dell and Apple).

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Systems from a functional perspective

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Sales and marketing systems

Manufacturing and production systems

Finance and accounting systems

Human resources systems

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Systems from a constituency perspective

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Transaction processing systems

Management information systems and decision-support systems

Executive support systems

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Transaction processing systems

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The transaction processing system records the data from everyday operations throughout every division or department in the organization. Each division is tied together through the TPS to provide useful information to management levels throughout the company.

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Management information systems and decision-support systems

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A management information system is used by managers throughout the organization to help them in directing, planning, coordinating, communicating, and decision making. The MIS will help answer structured questions on a periodic basis.

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Executive support systems

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An executive support system helps manager make strategic decisions affecting the entire company. The decisions use internal and external data to give executive the information they need to determine the proper course of action in unstructured situations

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Enterprise applications:
Enterprise systems

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Also known as enterprise resource planning (ERP) systems, is used to bridge the communication gap between all departments and all users of information within a company.

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Enterprise applications:
Knowledge management systems

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Enable organizations to better manage processes for capturing and applying knowledge and expertise.

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Enterprise applications:
Customer relationship management systems

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CRM systems involve business processes in all the functional areas and every management level of a firm. The ideal CRM systems provides end-to-end customer care from receipt of order through product delivery.

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Enterprise applications:
Supply chain management systems

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Offers new opportunities for companies to integrate with suppliers and customers and lower costs for everyone.

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Intranets and extranets

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Intranets and extranets use internet technology and standards to assemble information from various systems and present it to the user in a Web page format. Extranets make portions of private corporate intranets available to outsiders.

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E-business:

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the use of digital technology and the internet to execute the major business processes in the enterprise. E-business includes activities for the internal management of the firm and for coordination with suppliers and other business partners.

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E-Commerce:

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deals with buying and selling of goods and services over the internet. E.g. Amazon, Ebay

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E-Government:

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the application of the internet and networking technologies to digitally enable government and public sector agencies’ relationships with citizens, businesses and other arms of government.

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The information systems department

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Programmers
Systems analysts
Information systems managers
Chief Information Officer
End users

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Enterprise applications

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a system that can coordinate activities, decisions, and knowledge across many different functions, levels, and business management systems, and knowledge management systems

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Executive support systems (ESS)

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information systems at the organization’s strategic level designed to address unstructured decision making through advanced graphics and communications.

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Interorganizational system

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information systems that automate the flow of information across organizational boundaries and link a company to its customers, distributors, or suppliers.

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Management information systems (MIS)

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the study of information systems focusing on their use in business and management.

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Portal

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Web interface for presenting integrated personalized content from a variety of sources. Also refers to a Web site service that provides an initial point of entry to the Web.

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Systems analysts

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the analysis of a problem that the organization will try to solve with an information system.

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Transaction processing systems (TPS)

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computerized systems that perform and record the daily routine transactions necessary to conduct the business; they serve the organization’s operational level.

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Sales and marketing information systems

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help the firm identify customers for the organizations products and services, develop products and services to meet customers’ needs, promote the products and services, sell the products and services, and provide ongoing customer support. Specific sales and marketing information systems include order processing, pricing analysis, and sales trend forecasting.

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Manufacturing and production information systems

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provide information for planning, product development, production or service scheduling, and controlling the flow of products and services. Specific manufacturing and production information systems include machine control, production planning, and facilities location.

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Finance and accounting information systems

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track the organizations financial assets and fund flows. Financial and accounting systems include accounts receivable, budgeting, and profit planning.

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Human resources information systems

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maintain employee records; track employee skills, job performance, and training; and support planning for employee compensation, including pensions and benefits, legal and regulatory requirements, and career development. Systems include training and development, compensation analysis, and human resources planning.

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how does MIS differ from TPS

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MIS differs from TPS in that MIS deals with summarized and compressed data from the TPS and sometimes analysis of that summarized data.

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How does MIS differ from DSS

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While MIS have an internal orientation, DSS will often use data from external sources, as well as data from TPS and MIS. DSS supports “right now” analysis rather than the long-term structured analysis of MIS. MIS are generally not flexible and provide little analytical capabilities. In contrast, DSS are designed for analytical purposes and are flexible.

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Decision Support Systems (DSS)

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Decision-support systems (DSS) support nonroutine decision making for middle managers.
•DSS provide sophisticated analytical models and data analysis tools to support semi structured and unstructured decision-making activities.
•DSS use data from TPS, MIS, and external sources, provide more analytical power than other systems, combine data, and are interactive.
•DSS 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.
•DSS use a variety of models to analyze data, or they condense large amounts of data in a form in which decision makers can analyze them. Typically, they provide the ability to do “what if” analysis.
•DSS use data from TPS, MIS, and external sources, provide more analytical power than other systems, combine data, and are interactive.
•DSS are designed so that users can work with them directly; these systems explicitly include user-friendly software.

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Executive support systems (ESS)

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Executive support systems help senior managers address strategic issues and long-term trends, both in the firm and in the external environment.
•ESS address nonroutine decisions requiring judgment, evaluation, and insight because there is no agreed-on procedure for arriving at a solution.
•ESS provide a generalized computing and communications capacity that can be applied to a changing array of problems.
•ESS are designed to incorporate data about external events, such as new tax laws or competitors, but they also draw summarized information from information from internal MIS and DSS.

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6.Describe the relationship between TPS, MIS, DSS, and ESS.

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The various types of systems in the organization exchange data with one another. TPS are typically a major source of data for other systems, especially MIS and DSS. TPS are operational-level systems that collect transaction data. Examples of these are payroll or order processing that track the flow of the daily routine transactions that are necessary to conduct business. TPS provide data that are required by MIS and DSS, although these systems may also use other data. DSS not only use data from TPS but also from MIS. MIS rely heavily on data from TPS. ESS are primarily a recipient of data from lower- level systems. They obtain most of their internal data from MIS and DSS.