Fundamentals of Is Week 4

Fundamentals of Information Systems
Global E-business
and Collaboration
DR. IDAVER SHERIFI

Learning Objectives
1. What are business processes? How are they related to information

systems?
2. How do systems serve the different management groups in a
business, and how do systems that link the enterprise improve
organizational performance?
3. Why are systems for collaboration and social business so important,
and what technologies do they use?
What are business processes? How are they related to information
systems?
flows of material,
information, assets or liabilities
knowledge
BUSINESS
PROCESSES
logically related set of

may be tied to functional
tasks that define how
area or be cross-
specific business tasks are
functional
performed
What are business processes? How are they related to information
systems?
Examples of functional business processes:

• Manufacturing and production (assembling the product)
• Sales and marketing (identifying customers)
• Finance and accounting (creating financial statements)
• Human resources (hiring employees)
How Information Technology Improves Business Processes
There are two ways by which IT can improve business processes:
• Increasing efficiency of existing processes
• Enabling entirely new processes

How do systems serve the different management groups in a
business?
A business firm has systems to support different groups or levels of

management.
• Transaction Processing Systems (TPS) serve to operational management level.

• Management Information Systems (MIS) and Decision Support Systems (DSS)
serve to middle management level.
• Executive Support Systems (ESS) serve to senior management level.
Transaction Processing Systems (TPS)
• Perform and record daily routine transactions necessary to conduct business
• Allow managers to monitor status of operations and relations with external

environment
• Serve predefined, structured goals and decision making

Transaction Processing Systems (TPS)
A Payroll TPS
Management Information Systems (MIS)
• Provide reports on firm’s current performance, based on data from TPS
• Provide answers to routine questions with predefined procedure for answering

them
• Typically have little analytic capability

Data flow from TPS to MIS

Sample MIS report

Decision Support Systems (DSS)
• Support non-routine decision making
• May use external information as well as TPS / MIS data
• Model driven DSS or Data driven DSS

Decision Support Systems (DSS)
Voyage Decision Support System

Executive Support Systems (ESS)
• Address non-routine decisions
• Incorporate data about external events as well as summarized

information from internal MIS and DSS
Executive Support Systems (ESS)
Digital dashboard
How do systems that link the enterprise improve organizational performance?
Enterprise applications are used to coordinate and integrate the information used in
TPS, MIS, DSS, and ESS systems and to ensure that they work together smoothly.
Enterprise Resource Planning (ERP)
Some functions of ERP systems consist in:
• Integration of data from key business processes into single system

• Speed communication of information throughout firm
• Enabling greater flexibility in responding to customer requests, greater
accuracy in order fulfillment
• Enabling managers to assemble overall view of operations
Supply Chain Management (SCM)
Some functions of SCM systems consist in:
• Movement of correct amount of product from source to point of

consumption as quickly as possible and at lowest cost
• Managing relationships with suppliers, purchasing firms, distributors,
and logistics companies
• Managing shared information about orders, production, inventory levels,
and so on
Customer Relationship Management (CRM)
Some functions of CRM systems consist in:
• Helping to manage relationship with customers

• Coordinate business processes that deal with customers in sales,
marketing, and customer service
• Optimize revenue; Improve customer satisfaction; Increase customer
retention; Identify and retain most profitable customers; Increase sales
Knowledge Management Systems (KMS)
Some functions of SCM systems consist in:
• Managing processes for capturing and applying knowledge and expertise

• Collecting relevant knowledge and make it available wherever needed in
the enterprise to improve business processes and management
decisions
• Linking firm to external sources of knowledge
Intranets, Extranets and Internet
Intranet, extranet and internet

E-business VS E-commerce
Buying and selling goods and

services through Internet; subset of
e-business
Use of digital technology and

Internet to drive major business
processes.
E-government
Usage of Internet technology to deliver information and services to

citizens, employees and businesses.
Why are systems for collaboration and social business so important, and what technologies do they
use?
Collaboration is crucial due to rapidly changing factors nature of work,

professional work (interaction jobs), organization of the firm, scope of the
firm, innovation, culture of work.
Teams have a specific mission that someone in the business assigned to them.
Social business can be defined as use of social networking platforms (internal

and external) to engage employees, customers and suppliers in order to
deepen interactions and expedite information sharing.
Why are systems for collaboration and social business so important, and
what technologies do they use?
Requirements for Collaboration

Applications of social business

Time/space matrix can assist managers in evaluating and selecting collaboration and
social software tools.
Time/space matrix
Case Study: Enterprise Social Networking Transforms Sharp Corporation into
a More Innovative Connected Organization
How are collaboration and employee engagement helping Sharp Corporation to be

more competitive?
How did using Yammer change corporate culture and the way work was performed at
Sharp corporation?
Case Study: Enterprise Social Networking Transforms Sharp Corporation into
a More Innovative Connected Organization
References
• Laudon, K. C., & Laudon, J. P. (2022). Global E-business and Collaboration. In Management
Information Systems: Managing the Digital Firm (17th ed., pp. 72-96). Pearson.
THANK YOU FOR YOUR QUESTIONS ?
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Fundamentals of Information Systems

DR. IDAVER SHERIFI

1. What are business processes? How are they related to information

logically related set of

Examples of functional business processes:

There are two ways by which IT can improve business processes:

• Increasing efficiency of existing processes

• Enabling entirely new processes

A business firm has systems to support different groups or levels of

• Transaction Processing Systems (TPS) serve to operational management level.

• Perform and record daily routine transactions necessary to conduct business

• Allow managers to monitor status of operations and relations with external

• Serve predefined, structured goals and decision making

• Provide reports on firm’s current performance, based on data from TPS

• Provide answers to routine questions with predefined procedure for answering

• Typically have little analytic capability

Data flow from TPS to MIS

Sample MIS report

• Support non-routine decision making

• May use external information as well as TPS / MIS data

• Model driven DSS or Data driven DSS

Voyage Decision Support System

• Address non-routine decisions

• Incorporate data about external events as well as summarized

Some functions of ERP systems consist in:

• Integration of data from key business processes into single system

Some functions of SCM systems consist in:

• Movement of correct amount of product from source to point of

Some functions of CRM systems consist in:

• Helping to manage relationship with customers

Some functions of SCM systems consist in:

• Managing processes for capturing and applying knowledge and expertise

Intranet, extranet and internet

Buying and selling goods and

Use of digital technology and

Usage of Internet technology to deliver information and services to

Collaboration is crucial due to rapidly changing factors nature of work,

Social business can be defined as use of social networking platforms (internal

Requirements for Collaboration

Applications of social business

How are collaboration and employee engagement helping Sharp Corporation to be

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