Chapter-2

Global E-business and

Collaboration
SUMAY BINTA JUNNAT
LECTURER
GREEN BUSINESS SCHOOL
 Business Processes and Information
Systems
• Business Process:
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.
• Information Systems:
Information systems automate parts of business processes, and they can help organizations
redesign and streamline these processes, such as checking a client’s credit, or generating an
invoice and shipping order. 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. New
information technology frequently changes the way a business works and supports entirely new
business models.
Examples of Functional Business
Processes
 Types of Information Systems
A business firm has systems to support different groups or levels of management. They are:
• Transaction Processing Systems (TPS):
Systems serving operational management are transaction processing systems (TPS), such as pay- roll or
order processing, that track the flow of the daily routine transactions necessary to conduct business. 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.
• Management Information Systems (MIS):
Management information systems (MIS) produce reports serving middle management by condensing
information from TPS, and these are not highly analytical. MIS provide middle managers with reports on
the organization’s current performance. This information is used to monitor and control the business and
predict future performance. MIS summarize and report on the company’s basic operations using data
supplied by transaction processing systems.
 Types of Information Systems(Cont’d)
• Decision Support Systems (DSS):
Decision-support systems (DSS) support more non-routine decision making.It
support management decisions that are unique and rapidly changing using
advanced analytical models. Although DSS use internal information from TPS and
MIS, they often bring in information from external sources. These systems use a
variety of models to analyze the data and are designed so that users can work with
them directly.
• Business intelligence:
Business intelligence is a contemporary term for data and software tools for
organizing, analyzing, and providing access to data to help managers and other
enterprise users make more informed decisions.
 Types of Information Systems(Cont’d)
• Executive Support Systems (ESS):
Executive support systems (ESS) help senior management make these decisions.
They address non-routine decisions requiring judgment, evaluation, and insight
because there is no agreed-on procedure for arriving at a solution. ESS present
graphs and data from many sources through an interface that is easy for senior
managers to use. Often the information is delivered to senior executives through
a portal, which uses a Web interface to present integrated personalized business
content.
 Enterprise Applications and Major
Applications

• Enterprise Applications:
These are systems that span functional areas, focus on executing business processes
across the business firm, and include all levels of management. Enterprise applications
help businesses become more flexible and productive by coordinating their business
processes more closely and integrating groups of processes so they focus on efficient
management of resources and customer service.
• There are four major enterprise applications:
◦ Enterprise systems
◦ Supply chain management systems
◦ Customer relationship management systems
◦ Knowledge management systems
 Enterprise Applications and Major
Applications (Cont’d)
1. Enterprise Systems/ Enterprise Resource Planning (ERP):
Firms use enterprise systems, also known as enterprise resource planning (ERP)
systems are designed to coordinate multiple functions and business processes.
Enterprise systems integrate the key internal business processes of a firm into a
single software system to improve coordination and decision making. For
example- They can integrate business processes in manufacturing and
production, finance and accounting, sales and marketing, and human resources
into a single software system. Information that was previously fragmented in
many different systems is stored in a single comprehensive data repository
where it can be used by many different parts of the business.
 Enterprise Applications and Major
Applications (Cont’d)
2. Supply Chain Management (SCM) Systems :
Firms use supply chain management (SCM) systems to help manage relationships with
their suppliers. These systems help suppliers, purchasing firms, distributors, and
logistics companies share information about orders, production, inventory levels, and
delivery of products and services so that they can source, produce, and deliver goods
and services efficiently. The ultimate objective is to get the right amount of their
products from their source to their point of consumption in the least amount of time
and at the lowest cost.
3. Customer Relationship Management (CRM) Systems:
Firms use customer relationship management (CRM) systems to help manage their
relationships with their customers. CRM systems provide information to coordinate all
of the business processes that deal with customers in sales, marketing, and service to
 Enterprise Applications and Major
Applications (Cont’d)
optimize revenue, customer satisfaction, and customer retention. This information
helps firms identify, attract, and retain the most profitable customers; provide better
service to existing customers; and increase sales.
4. Knowledge Management Systems (KMS):
Some firms perform better than others because they have better knowledge about
how to create, produce, and deliver products and services. This firm knowledge is
difficult to imitate, unique, and can be leveraged into long-term strategic benefits.
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 it is needed to improve business processes and management
decisions. Knowledge management systems enable firms to optimize the creation,
sharing, and distribution of knowledge. Intranets and extranets are private corporate
networks based on Internet technology that assemble information from disparate
systems. Extranets make portions of private corporate intranets available to
outsiders.
 E-business, E-commerce, E-government

• E-business:
Electronic business, or e-business, refers to the use of digital technology and the Internet to execute
the major business processes in the enterprise. E-business includes activities for the internal
management of the firm and for coordination with suppliers and other business partners.
• E-commerce:
E-commerce is the part of e-business that deals with the buying and selling of goods and services
over the Internet. It also encompasses activities supporting those market transactions, such as
advertising, marketing, customer support, security, delivery, and payment.
• E-government:
E-government refers to the application of the Internet and networking technologies to digitally
enable government and public sector agencies’ relationships with citizens, businesses, and other
arms of government.
 Collaboration and Its Benefits
Collaboration is working with others to achieve shared and explicit goals. Collaboration
and teamwork have become increasingly important in business because of globalization,
the decentralization of decision making, and growth in jobs where interaction is the
primary value adding activity.
• Collaboration:
Collaboration is working with others to achieve shared and explicit goals. Collaboration
focuses on task or mission accomplishment and usually takes place in a business, or other
organization, and between businesses. You collaborate with a colleague in Tokyo having
expertise on a topic about which you know nothing.
• Team:
Teams have a specific mission that someone in the business assigned to them. They have
a job to complete. The members of the team need to collaborate on the accomplishment
of specific tasks and collectively achieve the team mission.
 Collaboration and Its Benefits
• Team:
Teams have a specific mission
that someone in the business
assigned to them. They have a
job to complete. The
members of the team need to
collaborate on the
accomplishment of specific
tasks and collectively achieve
the team mission.
 The Information Systems Department
The information systems department is the formal organizational unit responsible for
information technology services. It is responsible for maintaining the hardware,
software, data storage, and networks that comprise the firm’s IT infrastructure. The
department consists of specialists, such as:
• Programmers:
Programmers are highly trained technical specialists who write the software instructions
for computers.
• Systems analysts:
They constitute the principal liaisons between the information systems groups and the
rest of the organization. It is the systems analyst’s job to translate business problems
and requirements into information requirements and systems.
 The Information Systems Department
(Cont’d)
• Information systems managers:
Information systems managers are leaders of teams of programmers and analysts,
project managers, physical facility managers, telecommunications managers, or
database specialists. They are also managers of computer operations and data
entry staff.
• Chief Information Officer (CIO):
The information systems department is headed by a chief information officer
(CIO). The CIO is a senior manager who oversees the use of information
technology in the firm. Today’s CIOs are expected to have a strong business
background as well as information systems expertise and to play a leadership role
in integrating technology into the firm’s business strategy.
 The Information Systems Department
(Cont’d)
• Chief Security Officer (CSO):
The chief security officer (CSO) is in charge of information systems security for
the firm and is responsible for enforcing the firm’s information security policy.
The CSO is responsible for educating and training users and information systems
specialists about security, keeping management aware of security threats and
breakdowns, and maintaining the tools and policies chosen to implement
security.
• Chief Privacy Officer (CPO):
The CPO is responsible for ensuring that the company complies with existing
data privacy laws.
 The Information Systems Department
(Cont’d)
• Chief Knowledge Officer (CKO):
The chief knowledge officer (CKO) is responsible for the firm’s knowledge
management program. The CKO helps design programs and systems to find new
sources of knowledge or to make better use of existing knowledge in
organizational and management processes.
• End user:
End users are representatives of departments outside of the information
systems group for whom applications are developed. These users are playing an
increasingly large role in the design and development of information systems.
 IT Governance
IT governance includes the strategy and policies for using information
technology within an organization. It specifies the decision rights and
framework for accountability to ensure that the use of information technology
supports the organization’s strategies and objectives.