Chapter 2: Global E - Business and Collabora1on

Chapter
2
Global E-‐business and

Collabora1on
VIDEO CASES
Case 1: Walmart’s Retail Link Supply Chain
Case 2: Salesforce.com: The Emerging Social Enterprise
Case 3: How FedEx Works: Inside the Memphis Hub
Instructional Video 1: US Foodservice Grows Market with Oracle CRM on Demand
Management Information Systems
Chapter 2: Global E-‐business and Collabora1on
Learning Objec1ves
•  Define and describe business processes and

their rela1onship to informa1on systems.
•  Evaluate the role played by systems serving
the various levels of management in a
business and their rela1onship to each other.
•  Explain how enterprise applica1ons improve
organiza1onal performance.
2.2 Copyright © 2014 Pearson Education, Inc.

Learning Objec1ves (cont.)
•  Explain the importance of collabora1on and

teamwork in business and how they are
supported by technology.
•  Assess the role of the informa1on systems

func1on in a business.

TELUS Embraces Social Learning
•  Problem: Need to capture employee knowledge as 40% of

workforce nears re1rement
•  Solu1ons: New technology for collabora1ve knowledge
sharing
•  MicrosoQ SharePoint Server 3010 provided companywide
plaTorm for collabora1on, knowledge acquisi1on and
transfer, and social tools
•  Demonstrates IT’s role in collabora1on and documen1ng
knowledge
•  Illustrates the need for changing organiza1onal culture and
business processes to use informa1on systems effec1vely
Business Processes and Informa1on Systems
•  Business processes:
–  Flows of material, informa2on, knowledge
–  Sets of ac2vi2es, steps
–  May be 2ed to func2onal area or be cross-‐
func2onal
•  Businesses: Can be seen as collec1on of
business processes
•  Business processes may be assets or
liabili1es
•  Examples of func1onal business processes

–  Manufacturing and produc1on
•  Assembling the product
–  Sales and marke1ng
•  Iden2fying customers
–  Finance and accoun1ng
•  Crea2ng financial statements
–  Human resources
•  Hiring employees

The Order Fulfillment Process

FIGURE 2-1 Fulfilling a customer order involves a complex set of steps that requires the close coordination of the sales,
accounting, and manufacturing functions.

•  Informa1on technology enhances business

processes by:
–  Increasing efficiency of exis1ng processes
•  Automa2ng steps that were manual
–  Enabling en1rely new processes
•  Change flow of informa2on
•  Replace sequen2al steps with parallel steps
•  Eliminate delays in decision making
•  Support new business models

Types of Informa1on Systems
•  Transac1on processing systems

–  Serve opera1onal managers and staff
–  Perform and record daily rou1ne transac1ons
necessary to conduct business
• Examples: sales order entry, payroll, shipping
–  Allow managers to monitor status of opera1ons
and rela1ons with external environment
–  Serve predefined, structured goals and decision
making

A Payroll TPS

A TPS for payroll processing

captures employee payment
transaction data (such as a time
card). System outputs include
online and hard-copy reports
for management and employee
paychecks.
FIGURE 2-2


•  Business intelligence
–  Data and soQware tools for organizing and analyzing data
–  Used to help managers and users make improved
decisions
•  Business intelligence systems
–  Management informa1on systems
–  Decision support systems
–  Execu1ve support systems

Interac8ve Session: Technology
CAN AIRLINES SOLVE THEIR BAGGAGE HANDLING PROBLEMS?

Read the Interactive Session and discuss the following questions
•  What types of transac1ons are handled by baggage handling

systems?
•  What are the management, organiza1on, and technology
components of baggage handling systems?
•  What is the problem these baggage handling systems are
trying to solve? Discuss the business impact of this problem.
Are today’s baggage handling systems a solu1on to this
problem?
•  What kinds of management reports can be generated from
the data from these systems?
•  Management informa1on systems

– Serve middle management
– Provide reports on firm’s current
performance, based on data from TPS
– Provide answers to rou1ne ques1ons with
predefined procedure for answering them
– Typically have licle analy1c capability

How MIS Obtain Their Data from the Organiza8on’s TPS

FIGURE 2-3 In the system illustrated by this diagram, three TPS supply summarized transaction data to the MIS reporting
system at the end of the time period. Managers gain access to the organizational data through the MIS, which
provides them with the appropriate reports.

Sample MIS Report

FIGURE 2-4 This report, showing summarized annual sales data, was produced by the MIS in Figure 2-3.

•  Decision support systems

–  Serve middle management
–  Support non-‐rou1ne decision making
•  Example: What is the impact on produc2on schedule if
December sales doubled?
–  May use external informa1on as well TPS / MIS data
–  Model driven DSS
•  Voyage-‐es2ma2ng systems
–  Data driven DSS
•  Intrawest’s marke2ng analysis systems

Voyage-‐Es8ma8ng Decision Support System

FIGURE 2-5 This DSS operates on a powerful PC. It is used daily by managers who must develop bids on shipping
contracts.

•  Execu1ve support systems

–  Support senior management
–  Address non-‐rou1ne decisions
•  Requiring judgment, evalua2on, and insight
–  Incorporate data about external events (e.g. new tax
laws or compe1tors) as well as summarized
informa1on from internal MIS and DSS
–  Example: Digital dashboard with real-‐2me view of
firm’s financial performance: working capital,
accounts receivable, accounts payable, cash flow, and
inventory
Interac8ve Session: Technology
PILOTING PROCTER & GAMBLE FROM DECISION COCKPITS

Read the Interactive Session and discuss the following questions
•  What management, organiza1on, and technology issues

had to be addressed when implemen1ng Business
Sufficiency, Business Sphere, and Decision Cockpits?
•  How did these decision-‐making tools change the way
the company ran its business? How effec1ve are they?
Why?
•  How are these systems related to P&G’s business
strategy?

•  Enterprise applica1ons
–  Systems for linking the enterprise
–  Span func1onal areas
–  Execute business processes across firm
–  Include all levels of management
–  Four major applica1ons:
•  Enterprise systems
•  Supply chain management systems
•  Customer rela2onship management systems
•  Knowledge management systems

Enterprise Applica8on Architecture

Enterprise applications
automate processes that span
multiple business functions and
organizational levels and may
extend outside the organization.
FIGURE 2-6

•  Enterprise systems
–  Collects data from different firm func1ons and stores
data in single central data repository
–  Resolves problem of fragmented data
–  Enable:
•  Coordina2on of daily ac2vi2es
•  Efficient response to customer orders (produc2on,
inventory)
•  Help managers make decisions about daily opera2ons
and longer-‐term planning

•  Supply chain management (SCM)

systems
– Manage firm’s rela1onships with suppliers
– Share informa1on about:
• Orders, produc2on, inventory levels,
delivery of products and services
– Goal:
• Right amount of products to des2na2on
with least amount of 2me and lowest cost
•  Customer rela1onship management

systems:
–  Provide informa1on to coordinate all of the
business processes that deal with customers
• Sales
• Marke2ng
• Customer service
–  Helps firms iden1fy, acract, and retain most
profitable customers

•  Knowledge management systems (KMS)

–  Support processes for capturing and applying
knowledge and exper1se
• How to create, produce, deliver products and
services
–  Collect internal knowledge and experience
within firm and make it available to employees
–  Link to external sources of knowledge

•  Also used to increase integra1on and

expedite the flow of informa1on
–  Intranets:
• Internal company Web sites accessible only by
employees
–  Extranets:
• Company Web sites accessible externally only
to vendors and suppliers
• OUen used to coordinate supply chain

•  E-‐business
–  Use of digital technology and Internet to drive major
business processes
•  E-‐commerce
–  Subset of e-‐business
–  Buying and selling goods and services through
Internet
•  E-‐government:
–  Using Internet technology to deliver informa2on and
services to ci2zens, employees, and businesses
Systems for Collabora1on and Teamwork
•  Collabora1on:
–  Short-‐lived or long-‐term
–  Informal or formal (teams)
•  Growing importance of collabora1on:
–  Changing nature of work
–  Growth of professional work—“interac2on jobs”
–  Changing organiza2on of the firm
–  Changing scope of the firm
–  Emphasis on innova2on
–  Changing culture of work


•  Social business
–  Use of social networking plaTorms, internal and external
–  Engage employees, customers, and suppliers
–  Goal is to deepen interac1ons and expedite informa1on
sharing
–  “Conversa1ons”
–  Requires informa1on transparency
•  Driving the exchange of informa2on without interven2on
from execu2ves or others

•  Business benefits of collabora1on and

teamwork
–  Investments in collabora1on technology can bring
organiza1on improvements, returning high ROI
–  Benefits:
•  Produc2vity
•  Quality
•  Innova2on
•  Customer service
•  Financial performance
–  Profitability, sales, sales growth

Requirements for Collabora8on

Successful collaboration
requires an appropriate
organizational structure
and culture, along with
appropriate collaboration
technology.
FIGURE 2-7

•  Building a collabora1ve culture and business

processes
–  “Command and control” organiza1ons
•  No value placed on teamwork or lower-‐level
par2cipa2on in decisions
–  Collabora1ve business culture
•  Senior managers rely on teams of employees.
•  Policies, products, designs, processes, and systems rely
on teams.
•  The managers purpose is to build teams.

•  Tools for collabora1on and teamwork

–  E-‐mail and instant messaging
–  Wikis
–  Virtual worlds
–  Collabora1on and social business plaTorms
•  Virtual mee2ng systems (telepresence)
•  Google Apps/Google sites
•  Cyberlockers
•  MicrosoU SharePoint
•  Lotus Notes
•  Enterprise social networking tools

•  Enterprise social networking soQware

capabili1es
–  Profiles
–  Content sharing
–  Feeds and no1fica1ons
–  Groups and team workspaces
–  Tagging and social bookmarking
–  Permissions and privacy

•  Two dimensions of collabora1on technologies

–  Space (or loca2on)—remote or co-‐located
–  Time—synchronous or asynchronous
•  Six steps in evalua1ng soQware tools
1.  What are your firm’s collabora2on challenges?
2.  What kinds of solu2ons are available?
3.  Analyze available products’ cost and benefits.
4.  Evaluate security risks.
5.  Consult users for implementa2on and training issues.
6.  Evaluate product vendors.

The Time/Space Collabora8on Tool Matrix

FIGURE 2-8 Collaboration technologies can be classified in terms of whether they support interactions at the same or
different time or place or whether these interactions are remote or co-located.

The Informa1on Systems Func1on in Business
•  Informa1on systems department:

•  Formal organiza1onal unit responsible for
informa1on technology services
•  OQen headed by chief informa1on officer (CIO)
•  Other senior posi2ons include chief security officer
(CSO), chief knowledge officer (CKO), chief privacy
officer (CPO)
•  Programmers
•  Systems analysts
•  Informa1on systems managers

The Informa1on Systems Func1on in Business
•  End users
–  Representa1ves of other departments for whom
applica1ons are developed
–  Increasing role in system design, development
•  IT Governance:
–  Strategies and policies for using IT in the
organiza1on
–  Decision rights
–  Accountability
–  Organiza1on of informa1on systems func1on
•  Centralized, decentralized, and so on

Chapter 2: Global E - Business and Collabora1on

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Chapter

Global E-­‐business and

• Deﬁne and describe business processes and

2.2 Copyright © 2014 Pearson Education, Inc.

Learning Objec1ves (cont.)

• Explain the importance of collabora1on and

• Assess the role of the informa1on systems

2.3 Copyright © 2014 Pearson Education, Inc.

TELUS Embraces Social Learning

• Problem: Need to capture employee knowledge as 40% of

Business Processes and Informa1on Systems

Business Processes and Informa1on Systems

• Examples of func1onal business processes

2.6 Copyright © 2014 Pearson Education, Inc.

The Order Fulﬁllment Process

2.7 Copyright © 2014 Pearson Education, Inc.

Business Processes and Informa1on Systems

• Informa1on technology enhances business

2.8 Copyright © 2014 Pearson Education, Inc.

Types of Informa1on Systems

• Transac1on processing systems

2.9 Copyright © 2014 Pearson Education, Inc.

A TPS for payroll processing

2.10 Copyright © 2014 Pearson Education, Inc.

Types of Informa1on Systems

2.11 Copyright © 2014 Pearson Education, Inc.

Interac8ve Session: Technology

CAN AIRLINES SOLVE THEIR BAGGAGE HANDLING PROBLEMS?

• What types of transac1ons are handled by baggage handling

Types of Informa1on Systems

• Management informa1on systems

2.13 Copyright © 2014 Pearson Education, Inc.

How MIS Obtain Their Data from the Organiza8on’s TPS

2.14 Copyright © 2014 Pearson Education, Inc.

Sample MIS Report

2.15 Copyright © 2014 Pearson Education, Inc.

Types of Informa1on Systems

• Decision support systems

2.16 Copyright © 2014 Pearson Education, Inc.

Voyage-­‐Es8ma8ng Decision Support System

2.17 Copyright © 2014 Pearson Education, Inc.

Types of Informa1on Systems

• Execu1ve support systems

Interac8ve Session: Technology

PILOTING PROCTER & GAMBLE FROM DECISION COCKPITS

• What management, organiza1on, and technology issues

2.19 Copyright © 2014 Pearson Education, Inc.

Types of Informa1on Systems

2.20 Copyright © 2014 Pearson Education, Inc.

Enterprise Applica8on Architecture

2.21 Copyright © 2014 Pearson Education, Inc.

Types of Informa1on Systems

2.22 Copyright © 2014 Pearson Education, Inc.

Types of Informa1on Systems

• Supply chain management (SCM)

Types of Informa1on Systems

• Customer rela1onship management

2.24 Copyright © 2014 Pearson Education, Inc.

Types of Informa1on Systems

• Knowledge management systems (KMS)

2.25 Copyright © 2014 Pearson Education, Inc.

Types of Informa1on Systems

• Also used to increase integra1on and

Global E-‐business and

•  Deﬁne and describe business processes and

•  Explain the importance of collabora1on and

•  Assess the role of the informa1on systems

•  Problem: Need to capture employee knowledge as 40% of

•  Examples of func1onal business processes

•  Informa1on technology enhances business

•  Transac1on processing systems

•  What types of transac1ons are handled by baggage handling

•  Management informa1on systems

•  Decision support systems

Voyage-‐Es8ma8ng Decision Support System

•  Execu1ve support systems

•  What management, organiza1on, and technology issues

•  Supply chain management (SCM)

•  Customer rela1onship management

•  Knowledge management systems (KMS)

•  Also used to increase integra1on and

•  Business beneﬁts of collabora1on and

•  Building a collabora1ve culture and business

•  Tools for collabora1on and teamwork

•  Enterprise social networking soQware

•  Two dimensions of collabora1on technologies

•  Informa1on systems department: