global E business

1. Unit 2
MIS in an Enterprise

2. Business Process
● Business processes are the collection of activities required to produce
a product or service.
● Performance of a business firm depends on how well its business
processes are designed and coordinated
● Every business can be seen as a collection of business processes, some
of which are part of larger encompassing processes

5. IT &
BUSINESS PROCESSES
● Information systems automate many steps in business processes that
were formerly performed manually
● 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 be performed
simultaneously, and eliminating delays in decision making
● Technology keeps businesses safe.
● Improve flexibility , customer relationships and increase efficiency.

6. Major Types of Systems
in Organization

7. Types of Information System
SYSTEMS FOR DIFFERENT MANAGEMENT GROUPS
● Transaction Processing Systems
SYSTEMS FOR BUSINESS INTELLIGENCE
● Management information systems (MIS)
● Decision-support systems (DSS)
● Executive support systems (ESS)

8. Transaction Processing
Systems
● A transaction processing system is a computerized system that
performs and records the daily routine transactions necessary to
conduct business, such as sales order entry, hotel reservations,
payroll, employee record keeping, and shipping
●
● TPS answer routine questions.
● TPS is central to a business and failure can lead to a firm’s demise.
● Monitors the status of internal operations and the firm’s
relationships with the external environment
● TPS information are used by other systems too

10. Management Information
Systems
● MIS serves middle management. MIS provide middle managers
with reports on the organization’s current performance.
● MIS primarily provide weekly, monthly and yearly results But
sometimes it can be daily or hourly .And can also provide drill
down.
● Information is used to monitor and control the business and
predict future performance.
●
● MIS typically provide answers to routine questions that have been
specified in advance and have a predefined procedure for
answering them.
● Not flexible and have little analytical capability

12. Decision Support Systems
● Help managers make decision that are unique, rapidly changing
and not easily specified in advance
● Procedure to arrive at a solution may not be fully predefined in
advance
● Uses analytical models to analyze data or condense large amount
of data into a form in which they can be analyzed by decision
maker
● DSS use internal information from TPS and MIS, they often bring in
information from external sources, such as current stock prices or
product prices of competitors .Example : What would be the
impact on production schedules if we were to double sales this
month?

13. Decision Support Systems
A DSS should meet the following requirements:
Be interactive.
Incorporate the human element as well as hardware and software
Use both internal and external data.
Include mathematical and statistical models.
Support decision makers at all organizational levels.
Emphasize semistructured and unstructured tasks

14. Decision Support Systems

16. Decision Support System

17. DSS Capabilities
What-if analysis
Goal seeking
Sensitivity analysis
Exception reporting analysis
Optimization analysis

18. Executive Support Systems
EIS can put a wealth of analytical and decision-making tools at
managers’ fingertips and includes graphical representations of
data that help executives make critical decisions.
Increase managers’ productivity by providing fast and easy access
to relevant information.
Convert information into other formats, such as bar charts or
graphs, to help managers analyze different business scenarios and
see the effect of certain decisions on the organization.
Spot trends and report exceptions, such as gathering data on
profitability and production costs at a manufacturing plant to
determine whether closing the plant is more beneficial than
keeping it open.

19. Executive Support Systems
● Serve at strategic level of organization
● No predefined procedure to come to a solution
● Address non-routine decisions requiring judgment, evaluation and
insight
● ESS heavily make use of external data source
● Filter, compress and track critical data
● Employs the most advanced graphics software
● Not designed to solve specific and regular problems
● Provides a generalized computing communications capacity that
can be applied to a changing array of problems
● Enterprise portal are used to let senior managers access executive
information
● Interactive graphics to access historical and competitive data
● Ex: In what business should we be in 5 years?
● Mergers and acquisition

20. Type of IS Information Inputs Processing Information
Outputs
Users
ESS Aggregate data;
external , internal
Graphics;
Simulations;
Interactive
Projections;
Responses to
queries
Senior
managers
DSS Low-volume data or
massive databases
optimized for data
analysis, analysis
models and data
analysis tools
Interactive;
simulations;
analysis
Special reports;
decision
analysis,
responses to
queries
Professionals;
staff managers
MIS Summary
transaction data,
high-volume data,
simple models
Routine
reports, simple
models, low
–level analysis
Summary and
exception
reports
Middle
managers
TPS Transactions, events Sorting, listing,
merging,
updating
Detailed
reports, list,
summaries
Operations
personnel,
supervisors

21. SYSTEMS FOR LINKING THE
ENTERPRISE
Enterprise applications:
● Designed to support organization-wide process coordination
and integration
● for efficient management of resources and customer service
These systems are
● Cross-level
● Cross-functional
● Business process oriented
● Beyond the organization (suppliers & customers)
● Connected through intranet, extranets and internet

22. Enterprise-wide business
application
● Enterprise systems – ERP
● Supply chain management systems - SCM
● Customer relationship management systems –CRM
● Knowledge management systems - KMS

23. Enterprise Systems
● Enterprise system or ERP provide single information system for
enterprise-wide coordination and integration of key business processes
● ERP significantly reduces the fragmented systems
● Information from different systems can seamlessly flow throughout the
firm and can be shared by various business processes
● ERP collects data from many key business processes and stores them
in a single comprehensive data repository

24. Enterprise Systems

25. Supply Chain Management
systems
● Supply chain management (SCM) is the process of working with
suppliers and other partners in the supply chain to improve
procedures for delivering products and services

26. SCM
Procuring materials (in service organizations, can include resources and
information)
Transforming materials into intermediate and finished products or services
Distributing finished products or services to customers
Manufacturing firm’s SCM system
Product flow—Managing the movement of goods all the way from suppliers
to customers, including customer service and support
Information flow—Overseeing order transmissions and delivery status
updates throughout the order- processing cycle
Finances flow—Handling credit terms, payment schedules, and
consignment and title ownership arrangements

27. Supply Chain
This figure illustrates the major entities in Nike’s supply chain and the flow of information upstream and downstream
to coordinate the activities involved in buying, making, and moving a product. Shown here is a simplified supply chain,
with the upstream portion focusing only on the suppliers for sneakers and sneaker soles.

28. SCM
● Network of organizations and processes for:
○ Procuring materials, transforming them into products, and
distributing the products
● Upstream supply chain:
○ Firm’s suppliers, suppliers’ suppliers and processes for managing
relationships with them
● Downstream supply chain:
○ Organizations and processes responsible for delivering products to
customers
● Internal supply chain
○ Processes for transforming the materials into finished goods

29. Supply Chain Processes
● Plan
○ Consists of processes that balance the aggregate demand and
supply
○ to develop a course of action to meet sourcing, production and
delivery requirements
● Source
○ Consists of processes that procure goods and services
○ need to create a specific product or service
● Make
○ Consists of processes that transform a product into a finished state
○ to meet planned or actual demand

30. Supply Chain Processes
● Deliver
○ Consists of processes that provide finished goods and services
○ To meet actual or planned demand
○ Processes: order management, transportation management and
distribution management
● Return
○ Consists of processes associated with returning products
○ Receiving returned products, including post delivery customer
support

31. Information & SCM
● Inefficiencies in supply chain are caused by inaccurate or untimely
information
○ Underutilized plant capacity
○ Excessive finished goods inventory
○ Runway transportation costs
● Just-In-Time strategy
● However, Uncertainties might arise
● Safety stock as a buffer for lack of flexibility
● Just in Case Resulting to bullwhip effect

32. SCM Applications
● Central objective is Information Visibility
● Open and rapid communication and information sharing between
members of SC
● Correct movement of accurate information leads to timely ordering,
shipments and production
○ Minimizes stocking levels & expedite deliveries
● Two types of SCM softwares
○ Supply chain planning
○ Supply chain execution

33. SCM Applications
● Supply Chain Planning
○ Software to help businesses plan their SC
○ Enables firms to generate demand forecasts
○ Enables them to develop sourcing & manufacturing plans for that
product
○ Helps to determine the production output amount
○ Determining the inventory levels of raw materials
○ Determining where to store finished goods
○ Identify the transportation mode for delivery

34. SCM Applications
● Supply Chain Execution
○ Manages the flow of products through distribution centers and
warehouses
○ Ensures that products are delivered to the right locations in the
most efficient manner
○ Tracks the physical status of goods
○ Management of materials, warehouse and transportation
operations and financial information

35. Capabilities of Supply Chain planning systems
Order planning: Select an order fulfillment plan that best meets the desired
level of service to customer given existing transportation and
manufacturing constraints
Advanced scheduling and manufacturing : Provide detailed coordination of
scheduling based on analysis of changing factors, such as customer orders,
equipment outages or supply interruptions. Scheduling modules create job
schedules for the manufacturing process and supplier logistics
Demand Planning: Generate demand forecasts from all business units using
statistical tools and business forecasting techniques
Distribution Planning: Create operating plans for logistics managers for
order fulfillment, case on input from demand and manufacturing planning
modules
Transportation planning: Track and analyze inbound, outbound and
intracompany movement of materials and products to ensure that materials
and finished goods are delivered at the right time and place at the
minimum cost

36. Capabilities of Supply Chain Execution systems
Order commitments: Enable vendors to quote accurate delivery dates to
customers by providing more real-time detailed information on the status
of orders from availability of raw materials and inventory to production and
shipment status
Final production: Organize and schedule final subassemblies required to
make each final product
Replenishment: Coordinate component replenishment work so that
warehouses remain stocked with the minimum amount of inventory in the
pipeline
Distribution management: Coordinate the process of transporting goods
from the manufacturer to distribution centers to the final customer. Provide
online customer access to shipment and delivery data
Reverse distribution: Track the shipment and accounting for returned
goods or remanufactured products

37. Supply Chain
Figure 11-7

38. Customer Relationship
Management Systems
● Help to manage the relationships with the customers.
● CRM is an information system for managing customer relationships to
optimize revenue, profitability, customer satisfaction and customer
retention
● Tracks all the interactions with its customers
● Analyzes these interactions to maximize lifetime value of customers for
the company
● Maximizes customer satisfaction
● CRM helps companies to identify customers who cost little to attract
and to keep and who provide the greatest revenues

39. Customer Relationship
Management Systems
Some customers cost a great deal to attract and to service
● Good customer represents 80-90% of a company’s profit
● But good customer represent only 10-20% of the base
CRM focuses on ways of retaining profitable customers and maximizing
lifetime revenue from them
● It costs 6 times as much to acquire new customer
● Higher customer retention rates increases revenue and reduces costs
for the firm

40. CRM Applications
Sales Force Automation (SFA)
● Helps sales staff focus sales efforts on the most profitable customers
and increase their productivity
● CRM systems provide sales prospect and contact information, product
information, product configuration capabilities and sales quote
generation capabilities
● Assembles customer’s past purchase to make personalized
recommendation
● Helps share CRM information among sales, marketing and delivery
departments
● Reduces cost per sale, cost of acquiring new customers and retaining
old customers
● Helps in sales forecasting

41. CRM Applications
Customer Service (CS)
● CS module in CRM provide information and tools to make call centers,
help desks and customer support staff more efficient
● Manages and assigns customer service requests
○ Appointment or advice telephone line
○ Any service rep can handle the customer relationship
● Improved access to consistent and accurate customer information
● Helps call center handle more calls, decrease call duration of each call
● Less transaction time & higher quality of service at lower cost
● Web-based self-service capabilities

42. CRM Applications
Marketing
● Supports direct marketing campaigns by providing capabilities for
○ capturing prospect and customer data
○ Providing product and service information
○ Qualifying leads for targeted marketing
○ Scheduling and tracking direct-marketing mailings or e-mail
● Includes tools for analyzing marketing & customer data
○ Identifying profitable/unprofitable customer
○ Designing products and services to satisfy specific customer needs
○ Identify opportunities for cross-selling and up-selling & bundling
○ Siebel systems

43. Operational Vs. Analytical CRM
Operational CRM Analytical CRM
Campaign Management Develop customer segmentation strategies
E-Marketing Develop customer profiles
Account and contact
management
Analyze customer profitability
Lead management Analyze product profitability
Telemarketing Identify cross-selling and up-selling opportunities
Teleselling
Select the best marketing, service and sales channels
for each customer group
E-selling
Identify trends in sales cycle length, win rate and
average deal size
Customer care and help
desk
Analyze sales rep and customer service rep
productivity
Contract management Identify churn rate

44. 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.
● Knowledge management and knowledge management systems (KMS)
are fastest-growing areas of corporate and government software
investment.
● Link the firm to external sources of knowledge.

45. S/M for Collaboration &
TeamWork
Collaboration is working with others to achieve shared and explicit goals
● Collaboration can be short-lived, lasting a few minutes, or longer term,
depending on the nature of the task and the relationship among
participants.
● Team members need to collaborate on the accomplishment of specific
tasks and collectively achieve the team mission.
● Importance
Changing nature of work.
Growth of professional work
Changing organization of the firm
Emphasis on innovation.
Changing scope of the firm

46. Social Business
The use of social networking platforms, including Facebook, Twitter, and
internal corporate social tools—to engage their employees, customers, and
suppliers.

47. COLLABORATIVE CULTURE & BUSINESS
PROCESSES

48. Social Business
Tools and Technology
● E-mail and Instant Messaging (IM)
● Wikis
● Virtual Worlds
Platforms
● Virtual Meeting System
● Google App

49. IS FUNCTION IN BUSINESS
Information systems department is the formal organizational unit
responsible for information technology services.
Roles
● Programmers
● Analyst
● CIO
● CKO
● CSO
● End Users