Business Process
Can be seen as collection of business processes
Businesses
• Assembling the product
• Checking for quality
• Producing bills of materials
Manufacturing and production
• Identifying customers
• Making customers aware of the product
• Selling the product
Sales and marketing
• Creating financial statements
• Paying creditors
• Managing cash accounts
Finance and accounting
• Hiring employees
• Evaluating employees’ job performance
• Enrolling employees in benefits plans
Human resources
Perform and record daily routine
transactions necessary to conduct
business
• Examples: sales order entry, payroll,
shipping
- Major source of data for other systems
Transaction processing systems (TPS)
Payroll TPS
– Serve middle management
– 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
Management information systems
– Serve middle management
– Support non-routine decision making
• Example: What is the impact on the production schedule if December sales doubled?
– Often use external information as well from TPS and MIS
Decision support systems
Voyage-estimating systems
Model-driven DSS
Intrawest’s marketing analysis systems
Data-driven DSS
– Senior management Dashboard
– Dashboards
– Incorporate data about external events (e.g. new tax laws or competitors) as well as summarized information from internal MIS and DSS
– Example: Digital dashboard with real-time view of
firm’s financial performance: working capital, accounts receivable, accounts payable, cash flow, and inventory
- Recipient of data from lower-level systems
Executive support systems
– Systems for linking the enterprise
– Span functional areas
– Execute business processes across firm
– Include all levels of management
– Four major applications:
• Enterprise systems
• Supply chain management systems
• Customer relationship management systems
• Knowledge management systems
Enterprise applications
– Collects data from different firm functions and stores
data in single central data repository
– Resolves problem of fragmented, redundant data
sets and systems
– Enable:
• Coordination of daily activities
• Efficient response to customer orders (production,
inventory)
• Provide valuable information for improving
management decision making
Enterprise systems
one type of interorganizational system because they automate the flow of
information across organizational
boundaries.
Supply chain management (SCM) systems
– Provide information to coordinate all of the
business processes that deal with customers in
sales, marketing, and service to optimize revenue, customer satisfaction, and customer retention
– Integrate firm’s customer-related processes and
consolidate customer information from multiple communication channels
Customer relationship management systems
– Support processes for acquiring, creating,
storing, distributing, applying, integrating
knowledge
• How to create, produce, distribute products
and services
– Collect internal knowledge and experience
within firm and make it available to employees
– Link to external sources of knowledge
Knowledge management systems (KMS)
Collaboration & Teamwork
Information systems department