CHAPTER 2: GLOBAL E-BUSINESS

AND COLLABORATION
M A N A G E M E N T I N F O R M AT I O N S Y S T E M S
 LEARNING OBEJCTIVES

2.1 What are

2.3 Why are systems for
business processes?
collaboration and
How are
social business so
they related to
important, and what
information
technologies do they use?
systems?

2.2 How do systems serve the

different
management groups in a business, 2.4 What is the role
and of the information
how do systems that link the systems function in
enterprise a business?
improve organizational
performance?
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 CHAPTER OUTLINE

1. Business Processes and Information Systems

2. Types of Information Systems
3. System for Collaboration and Social Business
4. The Information Systems Function in Business

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 1. BUSINESS PROCESSES AND
INFORMATION SYSTEMS

Sub-chapters:

Business Processes

How Information Technology Improves Business Processes

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 1.1 BUSINESS PROCESSES

Informations about:
• Suppliers
• Customers
• Employees
businesses Dealt with
• Invoices
• Payments
• Products and
services

Information systems make it possible for firms to manage all their information, make
better decisions, and improve the execution of their business processes

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 1.1 BUSINESS PROCESSES

• Business processes refer to

 the manner in which work is organized, coordinated, and focused to
produce a valuable product or service.
 The unique ways in which organizations coordinate work,
information, and knowledge, and the ways in which management
chooses to coordinate work.

• Many business processes are tried to a specific functional area.

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1.1 BUSINESS PROCESSES

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 1.1 BUSINESS PROCESSES

• How about business processes cross many different functional

areas? It require coordination across departments.
• For example:
business process of fulfilling a customer order
require coordination from:

Sales department Accounting department

Manufacturing and production department

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1.1 BUSINESS PROCESSES

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 1.1 BUSINESS PROCESSES

• Last example above is a very complicated business process.

• All those steps can efficiently performed with a great deal of
information.
• The required information must flow rapidly both within the
firm from one decision maker to another.
• COMPUTER-BASED INFORMATION SYSTEMS MAKE
THIS POSSIBLE.

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 1.2 HOW INFORMATION TECHNOLOGY
IMPROVES BUSINESS PROCESSES

• New information technology frequently changes the way a

business works and supports entirely new business models.
• Examples:
Downloading an e-book
Downloading a music track (iTunes)
Buying a computer online
Etc
• That entirely new business processes based on new business
models that would be inconceivable (tidak dapat
dibayangkan) without today’s information technology.

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2. TYPES OF INFORMATION SYSTEMS

• Sub-chapters:

Systems for Different Management Groups

Systems for Linking the Enterprise

E-business, E-commerce, and E-government

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2. TYPES OF INFORMATION SYSTEMS

• Past: Today:
Functional systems that
Large-scale cross-
operate independently each
functional systems
other

Cannot easily share

Integrate the activities of
information to support
related business processes
cross-functional business
and organizational units
processes

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 2.1 SYSTEMS FOR DIFFERENT
MANAGEMENT GROUPS

TRANSACTION PROCESSING
SYSTEMS

SYSTEMS FOR BUSINESS

INTELLIGENCE

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 2.1.1 TRANSACTION PROCESSING
SYSTEMS
• Transaction processing systems (TPS) provide information of
the organizations’ elementary activities and transactions.
• TPS useful for operational managers (see chapter 1 – Level
of Firms).
• The principal purpose of systems at this level is:
to answer routine questions and
to track the flow of transactions through the organization

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2.1.1 TRANSACTION PROCESSING
SYSTEMS

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 2.1.2 SYSTEMS FOR BUSINESS
INTELLIGENCE
• Business intelligence systems that focus on delivering
information to support management decision making.
• Business intelligence is data and software tools for
organizing, analyzing, and providing access to data to help
managers and other enterprise users make more informed
decisions.

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 2.1.2 SYSTEMS FOR BUSINESS
INTELLIGENCE

Business
help
intelligence
Middle
management and
senior
management

to

Administrative
monitoring controlling Decision making
activities
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 2.1.2 SYSTEMS FOR BUSINESS
INTELLIGENCE
• Types of business intelligences:
Business intelligence for routine Management Information
decision making Systems (MIS)

Decision Support Systems

(DSS)
Business intelligence for non-routine
decision making
Executive Support Systems
(ESS)

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 2.1.2 SYSTEMS FOR BUSINESS
INTELLIGENCE

• Serving middle management.

• MIS provide middle managers with
reports on the organization’s current
performance.
MANAGEMENT • This information is used to monitor
INFORMATION and control the business and predict
SYSTEMS future performance.
• MIS summarize and report on the
company’s basic operations using data
supplied by transaction processing
systems.

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2.1.2 SYSTEMS FOR BUSINESS
INTELLIGENCE

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2.1.2 SYSTEMS FOR BUSINESS
INTELLIGENCE

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 2.1.2 SYSTEMS FOR BUSINESS
INTELLIGENCE

Focus on problems that are

DECISION SUPPORT unique and rapidly changing, for which the
SYSTEMS procedure for arriving at a solution may not
be fully predefined in advance.

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2.1.2 SYSTEMS FOR BUSINESS
INTELLIGENCE

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 2.1.2 SYSTEMS FOR BUSINESS
INTELLIGENCE

• Help senior management make these

decisions:
• They address non-routine
decisions requiring judgment,
EXECUTIVE SUPPORT evaluation, and insight because
SYSTEMS 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.

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2.1.2 SYSTEMS FOR BUSINESS
INTELLIGENCE

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 2.2 SYSTEMS FOR LINKING THE
ENTERPRISE

Systems that span functional areas,

focus on executing business processes
Enterprise Applications
across the firm, and include all levels
of management.

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 2.2 SYSTEMS FOR LINKING THE
ENTERPRISE
• Enterprise Applications:
o Refer to systems that focus on executing business processes across the
business firms, and include all level of managements.
o It also help businesses to coordinate their business processes more
closely and integrating groups of processes.
o Four major enterprise applications:

Enterprise systems

Supply chain management systems

Customer relationship management systems

Knowledge management systems

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2.2 SYSTEMS FOR LINKING THE
ENTERPRISE

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 2.2.1 ENTERPRISE SYSTEM

• Also known as Enterprise Resource Planning (ERP)

• Enterprise system integrate business processes (manufacturing
and production, finance and accounting, sales and marketing,
human resources) into a single software system.

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2.2.2 SUPPLY CHAIN MANAGEMENT

• Firms use supply chain management (SCM) systems to help

manage relationships with their suppliers.

• These systems help suppliers, purchasing firms, distributors,

and logistics companies share information about orders,
production, inventory levels, and delivery of products and
services so they can source, produce, and deliver goods and
services efficiently.

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 2.2.4 KNOWLEDGE MANAGEMENT
SYSTEMS
• Knowledge management systems (KMS) enable
organizations to better manage processes for capturing and
applying knowledge and expertise.

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INTRANET AND EXTRANET

internal company websites that are accessible

Intranet
only by employees.

company websites that are accessible to

authorized vendors and suppliers and are often
Extranet
used to coordinate the movement of supplies to
the firm’s production apparatus.

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E-BUSINESS, E-COMMERCE, AND E-
GOVERNMENT

the use of digital technology and the Internet to

E-business execute the major business processes in the
enterprise.

• The part of e-business that deals with the

buying and selling of goods and services
E-commerce over the Internet.
• It also encompasses activities supporting
those market transactions, such as
advertising, marketing, customer support,
security, delivery, and payment.

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E-BUSINESS, E-COMMERCE, AND E-
GOVERNMENT

the application of the Internet and networking

technologies to digitally enable government
E-government and public sector agencies’ relationships with
citizens, businesses, and other arms of
government.

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2-3 WHY ARE SYSTEMS FOR COLLABORATION AND SOCIAL
BUSINESS SO IMPORTANT, AND WHAT TECHNOLOGIES
DO THEY USE?

• Working with others to achieve shared and

explicit goals.,

Collaboration • Collaboration focuses on task or mission

accomplishment and usually takes place in
a business or other organization and
between businesses.

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2-3 WHY ARE SYSTEMS FOR COLLABORATION AND SOCIAL
BUSINESS SO IMPORTANT, AND WHAT TECHNOLOGIES
DO THEY USE?

The use of social networking platforms,

including Facebook, Twitter, and internal
Social Business
corporate social tools—to engage their
employees, customers, and suppliers.

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2-3 WHY ARE SYSTEMS FOR COLLABORATION AND SOCIAL
BUSINESS SO IMPORTANT, AND WHAT TECHNOLOGIES
DO THEY USE?

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2-3 WHY ARE SYSTEMS FOR COLLABORATION AND SOCIAL
BUSINESS SO IMPORTANT, AND WHAT TECHNOLOGIES
DO THEY USE?

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SYSTEMS
2-3 WHY ARE SYSTEMS FOR COLLABORATION AND SOCIAL
BUSINESS SO IMPORTANT, AND WHAT TECHNOLOGIES
DO THEY USE?

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2-3 WHY ARE SYSTEMS FOR COLLABORATION AND SOCIAL
BUSINESS SO IMPORTANT, AND WHAT TECHNOLOGIES
DO THEY USE?

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 2-4 WHAT IS THE ROLE OF THE INFORMATION
SYSTEMS FUNCTION IN A BUSINESS?

• The formal organizational unit

responsible for information technology
services.
• The information systems department is
Information Systems responsible for maintaining the
Department hardware, software, data storage, and
networks that comprise the firm’s IT
infrastructure.

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 2-4 WHAT IS THE ROLE OF THE INFORMATION
SYSTEMS FUNCTION IN A BUSINESS?

highly trained technical specialists who write the

Programmers software instructions for computers.

It is the systems analyst’s job to translate

Systems Analysts business problems and requirements
into information requirements and systems.

leaders of teams of programmers and analysts,

project managers, physical
facility managers, telecommunications
Information Systems managers, or database specialists, managers of
Managers computer operations and data entry staff,
external
specialists, such as hardware vendors and
manufacturers,
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 2-4 WHAT IS THE ROLE OF THE INFORMATION
SYSTEMS FUNCTION IN A BUSINESS?

Chief Information Head of information systems department

Officer (CIO)

responsible for enforcing the firm’s

information security policy, educating and
Chief Security Officer training users and information systems
(CSO) specialists about security, keeping
management aware of security threats and
breakdowns, and maintaining the tools and
policies chosen to implement security

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 2-4 WHAT IS THE ROLE OF THE INFORMATION
SYSTEMS FUNCTION IN A BUSINESS?

Chief Privacy Officer Responsible for ensuring that the company

(CPO) complies with existing data privacy laws.

Chief Knowledge Officer responsible for the firm’s knowledge

(CKO) management program.

responsible for enterprise-wide governance and

Chief Data Officer utilization of information to maximize the value
(CDO) the organization can realize from its data.

representatives of departments outside of the

information systems
End user group for whom applications are
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 2-4 WHAT IS THE ROLE OF THE INFORMATION
SYSTEMS FUNCTION IN A BUSINESS?

Organizing the Information Systems Function

• Includes the strategy and policies for using

information technology within an
organization.
IT Governance • It specifies the decision rights and framework
for accountability to ensure that the use of
information technology supports the
organization’s strategies and objectives.

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END OF CHAPTER 2

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