CHAPTER 2

GLOBAL E-BUSINESS AND COLLABORATION

BUSINESS PROCESS:

•  Flows of material, information, knowledge.

•   Set of activities, steps.

•  May be tied to functional area or be cross functional.

•  Example of functional business processes:                                                                                                

                           a) Manufacturing and production

                                - Assembling the product, checking for quality

                              b) Sales and Marketing

                                - Identifying customers, selling the product

                                                        

                         c) Finance and Accounting

                              - Creating financial statements, paying creditors

                                                           

                   d) Human Resources

                            - Hiring employees, evaluating employee job performance

                                                              

      TYPES OF INFORMATION SYSTEM

    i) TRANSACTION INFORMATION SYSTEM (TPS)

       Function:

       - TPS are computerized system that perform and record daily transaction.

       - Answer routine question.

       - Major producer of information to other system.

       - Example: sales order entry, payroll cash deposit and credit decision.

    

    ii) BUSINESS INTELLIGENCE (BI) 

       Function:

       - Data and software tools for organizing and analyzing data.

       - Set of techniques and tools for the transformation of raw data into meaning

         full and useful information.

       - Divided by three system: 

   a) MANAGEMENT INFORMATION SYSTEM (MIS)

     Function:

   - Provide middle manager report and current performance of the organisation.

  - Summarize and report the company's basic operation using data supplied by TPS.

   - Manager primary interested in weekly, monthly, and yearly result.

   - Not flexible and have little analytical capability.

   - Use simple routine such as summarize and comparison.

   b) DECISION SUPPORT SYSTEM (DSS)

   Function:

   - DSS support non-routine decision making for middle manager.

  - Provide sophisticated analytical model and data analysis tools to support semi-structured  and unstructured decision making activities.

   - Focus on problem that are unique and rapidly changing.

   - This system include interactive, user-friendly software.

   c) EXECUTIVE SUPPORT SYSTEM (ESS)

   Function:

   - Support senior manager.

   - Address non-routine decision.

   - Requiring judgement, evaluation and insight.

  - Incorporate external data event (example: new tax law or competitors) as well as summarized information from internal MIS and DSS.

   - Example: Account payable.

    iii) ENTERPRISE APPLICATION 

   Function:

   - System for linking the enterprise.

   - Execute business process across firm.

   - Include all level of management.

   - Four major application:

   a) ENTERPRISE SYSTEM

- Collect the data from different firm function and store data single central data repository.
- Resolves problem of fragmented data.
- Enable :
   i) Coordination of daily activities.
  ii) Efficient respond to customer orders (production, inventory)
 iii) Help manager make decision about daily operation and longer term planning.

   b) SUPPLY CHAIN MANAGEMENT SYSTEM

- Manage firm relationship with suppliers.
- Share information about :
   i) Order, production, inventory level, delivery off product and services.

   c) CUSTOMER RELATIONSHIP MANAGEMENT SYSTEM

- Provide information to coordinate all of the business process that deal with customers.
   i) Sales
  ii) Marketing
 iii) Customer Service
- Help firms identify attract and retain most profitable customers.

   d) KNOWLEDGE MANAGEMENT SYSTEM

-Support process for capturing and applying and expertise.
   i) How to create, produce, deliver product and services.
- Collect internal knowledge and experience within firm and make it available to employees.
- Link to external sources of knowledge.
   i) useful for helping a firm employees understand how to perform certain business processes or how to solve problem.   
                                   
















                                             












    

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