Lesson 2

L2 - Global E-Business and Collaboration
What are business processes? How are they related to information systems?
the collection of activities required to produce a product or service (Laudon & Laudon 2018)
time-logical sequence of activities that are required for working on a process-oriented business
object (Becker & Kahn 2011)
a structured, measured set of activities designed to produce a specific output for a particular
customer or market (Davenport 1993)
a set of functions which are carefully coordinated in a specific sequence to finally deliver value to the
end internal or external customer (Kirchmer 2017)
In the context of information systems, a business process is a set of business activities performed by
human actors and/or the information system to accomplish a specific outcome. A business process is
a logically related set of activities that defines how specific business tasks are performed, and it
represents a unique way in which an organization coordinates work, information, and knowledge.
Managers need to pay attention to business processes because they determine how well the
organization can execute its business, and they may be a source of strategic advantage. There are
business processes specific to each of the major business functions, but many business processes are
cross-functional. Information systems automate parts of business processes, and they can help
organizations redesign and streamline these processes.
How do systems serve the different management groups in a business? How do systems that link
the enterprise improve organizational performance?
Systems to run the business,

i.e., transaction processing systems
 Serve operational managers and staff
 Perform and record daily routine transactions necessary to conduct business
 Examples: Payroll system
 Allow managers to monitor status of operations and relations with external environment
Systems to steer the business,

i.e., business intelligence systems
 Serve middle and senior managers
 Support nonroutine decision making
 Examples: Management information systems, decision support systems, executive support
systems
 Allow managers to make improved decisions
Enterprise applications …
 Link the enterprise
 Span functional areas
 Execute business processes across the firm
 Include all levels of management
Enterprise Resource Planning (ERP) systems

• Collect data from different firm functions and store data in single central data repository
• Plan flow of material, resources, produced goods
• Resolve problems of fragmented data
• Example: SAP ERP, Oracle ERP, Microsoft Dynamics NAV
Supply Chain Management (SCM) systems
• Manage firm’s relationships with suppliers
• Share information about: Orders, production, inventory levels, delivery of products and
services
• Plan shipment of the right amount of products to destination with least amount of time and
lowest cost
• Example: SAP SCM, Oracle SCM, E2open
Customer Relationship Management (CRM) systems

• Provide information to coordinate all of the business processes that deal with customers
• Helps firms identify, attract, and retain most profitable customers
• Example: SAP CRM, Oracle CRM, salesforce.com
Why are systems for collaboration and social business so important? What technologies do they
use?
 Collaboration focuses on task or mission accomplishment and usually takes place in a

business/other organization or between businesses  Collaboration can be short-lived or long term,
depending on the nature of the task  Collaboration can be between a pair or between a group 
Collaboration may be informal or formal  Collaboration becomes more and more important
Next to providing collaboration technology, organizations also need to build the right environment.
 Investments in collaboration technology can bring organization improvements, returning high ROI
Telephone or video conferencing systems

 E-mail and instant messaging (IM)
 Wikis
 Virtual worlds
 Collaboration and social business platforms
 Virtual meeting systems (telepresence)
 Cloud collaboration services (Google Drive, Google Docs, etc.)
 Microsoft SharePoint and IBM Notes
 Enterprise social networking tools
What is the role of the information systems function in a business?
Generally, the application of computer information systems in a business helps to manage

operations, interact with customers and suppliers to compete with other business firms and
organisations. This motivates more companies to learn about information systems (IS) and to utilise it
for an added business advantage. Below are some of the key benefits that information systems can
offer:
 The IT department is often headed by a chief information officer (CIO)  The CIO might
be a member of the board, he might also report to other board members, e.g., the CFO or the
COO  Other senior positions within the IT department may include the chief information
security officer (CISO), chief knowledge officer (CKO), chief privacy officer (CPO), chief
data officer (CDO), and the chief digital officer (CDO)  Other roles include  Programmers
 Systems analysts  Information systems managers
Store and Analyse Information
Most information systems function as delivery vehicles for data stored in databases. Databases
support the operations and management aspects of a business. With a database, the collected data is
stored and organised. Examples of databases include employee records and product catalogues.
When it comes to analysing collections of stored data, data warehouses are built by information
systems from a number of data sources to analyse the data. These archival data are mined for
relevant information to develop and launch new products, reach out to potential customers as well
as to serve the existing customers with accuracy and efficiency.
2. Simplify Business Processes
The integration of information systems in a business enables easier management of certain business
processes so as to save on time and labour. For instance, buyers can have a seamless shopping
experience at an online retailer as they can select a particular product display based on best-selling
items, price range and customer ratings. With the help of information systems, these products are
neatly organised which enhances the shopping experience. Besides that, business managers can
utilise information systems for inventory management. That way, they can determine the inventory
needed, reorder with their suppliers in addition to track and receive shipments in a timely and
systematic manner.
3. Facilitate Decision-Making
In terms of decision-making, information systems such as group decision support systems (GDSS),
video conferencing and Internet-based networks assist in connecting business owners and
stakeholders regardless of location. As a sub-category of information systems, management
information systems (MIS) also aid in the decision-making process by providing relevant, accurate
and complete information. Basically, MIS is created to present an overview of the situation or to
highlight a missing piece of information. MIS features such as self-checking and cross-checking can
reduce errors. Enterprises that use management information systems ensure that all decision-makers
can work from the same set of data together and make their decisions based on identical
information. For business owners who want to track performance to see if it is aligned with present
business goals, it is good to explore all the features of management information systems to know
where the business stands among competitors in the same marketplace.
4. Access to Full Data Control
Companies can easily access a pool of data collected and control with full autonomy for business
purposes. As information systems store a large amount of private data and facilitate thousands of
business transactions on these data every day, a business must have a robust security system that
secures the information systems against external threats. If not careful, company and customer data
will be misused by unauthorised third-parties. Hence, companies and organisations should consider
hiring graduates of information system course programmes, especially those who possess a masters
in information systems or other postgraduate levels.
Understanding the complexities of information systems and how to utilise it can significantly benefit
organisations and enterprises in their business operations. At INTI International University &
Colleges, we offer a Master in Information Systems (MIS) course programme in collaboration with
SAS Institute to equip our students with in-depth technical knowledge and technology in the context
of the global economy.
IT governance includes the strategy and policies for developing and using IT in the organization 
Decision rights  Accountability  Organization of information systems function  Centralized,
decentralized, and so on

Lesson 2

Uploaded by

Copyright:

Available Formats

Lesson 2

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Lesson 2

Uploaded by

Copyright:

Available Formats

L2 - Global E-Business and Collaboration

Systems to run the business,

Systems to steer the business,

Enterprise Resource Planning (ERP) systems

Customer Relationship Management (CRM) systems

 Collaboration focuses on task or mission accomplishment and usually takes place in a

Telephone or video conferencing systems

Generally, the application of computer information systems in a business helps to manage

Store and Analyse Information

2. Simplify Business Processes

4. Access to Full Data Control

You might also like