Management Information Systems

Dr. Md. Rakibul Hoque

University of Dhaka
 Chapter 2

Global E-business and

Collaboration
 Learning Objectives

 What are business processes? How are they

related to information systems?
 How do systems serve the different
management groups in a business and how do
systems that link the enterprise improve
organizational performance?
 Why are systems for collaboration and social
business so important and what technologies
do they use?
 What is the role of the information systems
function in a business?
 Business Processes and
Information Systems
 Business process refer to the manner in which
work is organized, coordinated, and focused to
produce a valuable product or service.
 Business processes:
 Flows of material, information, knowledge
 Sets of activities, steps
 May be tied to functional area or be cross-functional
 Businesses: Can be seen as collection of business
processes
 Business processes may be assets or liabilities
 Business Processes and
Information Systems

 Examples of functional business processes

 Manufacturing and production
 Assembling the product
 Sales and marketing
 Identifying customers
 Finance and accounting
 Creating financial statements
 Human resources
 Hiring employees
 The Order Fulfillment Process

Fulfilling a customer order involves a complex set of steps that requires the
close coordination of the sales, accounting, and manufacturing functions.
 Business Processes and
Information Systems
 Information technology enhances business
processes by:
 Increasing efficiency of existing processes
 Automating steps that were manual
 Enabling entirely new processes
 Change flow of information
 Replace sequential steps with parallel steps
 Eliminate delays in decision making
 Support new business models
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Types of Information Systems

8
 Types of Information Systems
(Systems for Managers)

 Transaction Processing Systems (TPS)

 Business intelligence systems
 Management information systems
 Decision support systems
 Executive support systems
 Types of Information
Systems
• Transaction Processing Systems (TPS) is
a computerized system that performs and
records the daily routine transactions
necessary to the conduct business.
• record and process data resulting from
business transactions, update operational
databases, and produce business documents
(sales order entry, hotel reservation, payroll,
shipping, employee record keeping)
 Types of Information
Systems
 Transaction processing systems
 Serve operational managers and staff
 Perform and record daily routine transactions
necessary to conduct business
 Examples: sales order entry, payroll, shipping
 Allow managers to monitor status of operations
and relations with external environment
 Serve predefined, structured goals and decision
making
 A Payroll TPS

A TPS for payroll

processing
captures
employee
payment
transaction data
(such as a time
card). System
outputs include
online and hard-
copy reports for
management
and employee
paychecks.
 Types of Information
Systems
 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 improved decisions.
 Business intelligence systems
 Management information systems
 Decision support systems
 Executive support systems
 Types of Information
Systems
 Management Information Systems is the
study of information systems in business
and management.
 MIS summarize and report on the
company’s basic operations using data
supplied by transaction processing systems.
 Management Information Systems (MIS)
– provide information in the form of pre-
specified reports and displays to support
business decision making.
 Types of Information
Systems
 Management information systems
 Serve middle management
 Provide reports on firm’s current performance, based
on data from TPS
 The output of MIS is used to monitor and control the
business and predict future performance.
 Provide answers to routine questions with predefined
procedure for answering them
 Typically have little analytic capability
 Summarize transaction
 How MIS Obtain Their Data
from the Organization’s TPS

In the system illustrated by this diagram, three TPS supply summarized transaction data to the MIS reporting system at the
end of the time period. Managers gain access to the organizational data through the MIS, which provides them with the
appropriate reports.
 Sample MIS Report

This report, showing summarized annual sales data, was produced by the MIS in Figure 2-3.
 Types of Information
Systems
 Decision Support Systems (DSS) focus on
problem that are unique and rapidly
changing, for which the procedure for
arriving at a solution may not be fully
predefined in advance.
 Decision Support Systems (DSS) – give
direct computer support to managers during
the decision making process.
 Types of Information
Systems
 Decision support systems
 Serve middle management
 Support nonroutine decision making
 Example: What is the impact on production
schedule if December sales doubled?
 May use external information as well TPS / MIS
data
 Model driven DSS
 Voyage-estimating systems
 Data driven DSS
 Intrawest’s marketing analysis systems
 Voyage-Estimating Decision
Support System

This DSS operates on a powerful PC. It is used daily by managers who must develop bids on
shipping contracts.
 Types of Information
Systems
 Executive support Systems (ESS) address
non-routine decision requiring judgement,
evaluation, and insight because there is no
agreed-on procedure for arriving at a solution.
 Executive support Systems (ESS) – provide
critical information from a wide variety of
internal and external sources (MIS, DSS,
and other sources) in easy-to-use displays to
executives and managers and tailored to the
information needs of executives.
 Types of Information
Systems
 Executive support systems
 Support senior management
 Address nonroutine decisions
 Requiring judgment, evaluation, and insight
 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
INTERRELATIONSHIPS AMONG SYSTEMS
 Types of Information
Systems (Functions)

Marketing Information Systems

Human Resource Information Systems

Financial Management Information

Systems
Production Management Information
Systems
 Types of Information
Systems (Functions)

 Marketing information systems process

data such as sales figures, past trends and
government policies to get the useful
information that can be utilized by
managers for taking decisions.
 Marketing information systems provide
information that relates to the firm’s
marketing activities. It help manager
identify key customers.
 INFORMATION SYSTEMS FROM A FUNCTIONAL
PERSPECTIVE

Marketing Systems

SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

ORDER PROCESSING ENTER, PROCESS, TRACK ORDERS OPERATIONAL

MARKET ANALYSIS IDENTIFY CUSTOMERS & MARKETS KNOWLEDGE

PRICING ANALYSIS DETERMINE PRICES MANAGEMENT

SALES TRENDS PREPARE 5-YEAR FORECASTS STRATEGIC

26
 Types of Information
Systems (Functions)
 Human resource information systems
(HRIS) aids HR managers perform different
activities related to the human resources of
their organizations.
 HRIS uses information technology to perform
various HR process, so as to eliminate the
complexity of performance of those tasks
manually.
 HRIS provide information to managers throughout
the firm concerning the firm’s human resources.
 INFORMATION SYSTEMS FROM A FUNCTIONAL
PERSPECTIVE

Human Resource Systems

SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

TRAINING & DEVELOPMENT TRACK TRAINING, SKILLS, APPRAISALS OPERATIONAL

CAREER PATHING DESIGN EMPLOYEE CAREER PATHS KNOWLEDGE

COMPENSATION ANALYSIS MONITOR WAGES, SALARIES, BENEFITS MANAGEMENT

HUMAN RESOURCES PLANNING PLAN LONG-TERM LABOR FORCE NEEDS STRATEGIC

28
 Types of Information
Systems (Functions)

 Financial Management Information

Systems (FMIS) finds extensive
application in managing the financial
matters of an organization. The finance
department of a firm handles function
related to capital structuring, budgeting
and control of funds.
 FMIS provide information to managers
throughout the firm concerning the firm’s
financial activities.
 Types of Information
Systems (Functions)

 Production Management Information

Systems (PMIS) provide information to
managers throughout the firm concerning
the firm’s manufacturing operations.
 Production management is concerned with
the planning and control of all those
activities that transform input into output,
by adding some value. PMIS helps a firm
accomplish these objectives.
 INFORMATION SYSTEMS FROM A FUNCTIONAL
PERSPECTIVE
Manufacturing and Production Systems

SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

MACHINE CONTROL CONTROL ACTIONS OF EQUIPMENT OPERATIONAL

COMPUTER-AIDED-DESIGN DESIGN NEW PRODUCTS KNOWLEDGE

PRODUCTION PLANNING DECIDE NUMBER, SCHEDULE OF PRODUCTS MANAGEMENT

FACILITIES LOCATION DECIDE WHERE TO LOCATE FACILITIES STRATEGIC

31
 Types of Information
Systems (User)

 Individual information systems

 Workgroup information systems
 Organizational information systems
 Interorganizational information systems
 Global information systems
 Types of Information
Systems
 Individual information systems: Many
information systems affect the work of only a
single person, so they are called individual or
personal information systems. Usually these
types of systems operate on personal
computers used by one person at a time.
 Word Processing
 Spreadsheet or financial analysis
 Database
 Graphics or presentation software
 Types of Information
Systems
 Workgroup information systems: Information
systems often affect group of individuals
work together, such as the employees on a
team or in a department of a business. Such
workgroup, or group, information systems often
operate on nearby personal computers that that
are connected in a LAN so that people at
different computers can work with each other.
 Local area network (LAN)
 Types of Information
Systems
 Organizational information systems:
An information systems that affects
many people throughout a business or
organization, not just an individual or the
people in a single group, is called
organizational or enterprise information
system.
 Mainframe computers
 Types of Information
Systems
 Interorganizational information systems:
Interorganizational information systems
operate on groups of computers located in
different organizations and connected in
an inteorganizational network.
 Electronic Data Interchange (EDI)
 Electronic Funds Transfer (EFT)
 Types of Information
Systems

 Global information systems: Many

businesses, however, have facilities in
more than one country. Such
international business often have
information systems that span national
borders. These systems are called Global
information systems.
 World Wide Web
 Types of Information
Systems
 E-business
 Use of digital technology and Internet to drive major
business processes
 E-commerce
 Subset of e-business
 Buying and selling goods and services through
Internet
 E-government:
 Using Internet and networking technologies to
deliver information and services to citizens,
employees, and businesses
 Electronic 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. It also includes
electronic commerce, or e-commerce.
 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.
 Online buying, selling and paying for
product and services is known as e-
commerce.
 E-government
 Governments on all levels are using Internet
technology to deliver information and
services to citizens, employees, and
businesses with which they work. 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

 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. You collaborate with
many colleagues in publishing a company
blog.
 Collaboration

 If you’re in a law firm, you collaborate with

accountants in an accounting firm in
servicing the needs of a client with tax
problems.
 Collaboration can be short-lived, lasting a
few minutes, or longer term, depending on
the nature of the task and the relationship
among participants. Collaboration can be
one-to-one or many-to-many.
 Collaboration

 Employees may collaborate in informal groups that

are not a formal part of the business firm’s
organizational structure or they may be organized
into formal teams. Teams are part of the
organization’s business structure for getting things
done. 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
 Systems for Collaboration
and Social Business
 Collaboration:
 Short lived or long term
 Informal or formal (teams)
 Growing importance of collaboration:
 Changing nature of work
 Growth of professional work—“interaction jobs”
 Changing organization of the firm
 Changing scope of the firm
 Emphasis on innovation
 Changing culture of work
 Importance of collaboration

 Changing nature of work

 Growth of professional work –
“interaction jobs”
 Changing organization of the firm
 Changing scope of the firm
 Emphasis on innovation
 Changing culture of work
 Requirements for
Collaboration

Successful
collaboration
requires an
appropriate
organizationa
l structure
and culture,
along with
appropriate
collaboration
technology.
 Systems for Collaboration and
Social Business

 Social business
 Use of social networking platforms, including
Facebook, Twitter, and internal corporate social
tools-to Engage employees, customers, and suppliers
 Goal is to deepen interactions and expedite information
sharing
 “Conversations”
 Requires information transparency
 Driving the exchange of information without intervention
from executives or others
 Systems for Collaboration and
Social Business
 Building a collaborative culture and business
processes
 “Command and control” organizations
 No value placed on teamwork or lower-level
participation in decisions
 Collaborative business culture
 Senior managers rely on teams of employees.
 Policies, products, designs, processes, and systems
rely on teams.
 The managers purpose is to build teams.
 Application of Social
Business
Social Business Description
Application
Social Network Connect through personal
and business profile
Crowdsourcing Harness collective
knowledge to generate new
ideas and solution
Shared Workspaces Coordinate project and tasks;
co-create content
Blogs and Wikis Publish and rapidly access
knowledge; discuss opinions
and experience
 Application of Social
Business
Social Business Description
Application
Social Commerce Share opinions about purchasing
or purchase on social platforms
File Sharing Upload, share, and comment on
photos, videos, audio, text
documents.
Social Marketing Use social media to interact with
customers; derive customer
insights
Communities Discuss topics in open forums;
share expertise
 Crowdsourcing
 Crowdsourcing is the process of obtaining needed
services, ideas, or content by soliciting contributions
from a large group of people, and especially from an
online community, rather than from traditional
employees or suppliers.
 Wikipedia – perhaps the pioneers of
crowdsourcing. The not-for-profit Wikipedia
Foundation launched its free, web-based,
multilingual and collaborative encyclopedia in
2001. It has over 17m articles written collaboratively
by the community and is the most popular reference
site on the internet.
 Crowdsourcing

 Top brands like Pepsi, Coca-Cola and Oreo are

turning to the crowd. It’s not only the popular (and
cheap) thing to do. It’s good marketing.
 Last year Coke made a big splash when it
announced that it would shift it’s business model to
be more open. Since then the company has been
working with customers to enhance communications
and even rely on consumers for product
development. Last year the company asked its 50
million fans on Facebook (at the time) to suggest an
invention, cause or social app that could spread
happiness.
 Crowdsourcing

 Starbucks – an ideas forum where

customers are invited to share, vote, discuss
and see – “You know better than anyone
else what you want from Starbucks. So tell
us. What’s your Starbucks Idea?
Revolutionary or simple – we want to hear it.
Share your ideas, tell us what you think of
other people’s ideas and join the discussion.
We’re here, and we’re ready to make ideas
happen. Let’s get started.”
Big Brand Crowdsourcing
Campaigns
Types of Crowdsourcing
 Business benefits of
collaboration and teamwork

 Investments in collaboration technology can

produce organizational improvements returning
high ROI
 Benefits:
 Productivity
 Quality
 Innovation
 Customer service
 Financial performance
 Profitability, sales, sales growth
Tools and Technologies for
Collaboration/Methods

• E-mail and instant messaging (IM)

• Cell phones and smartphones
• Social networking
• Wikis
• Virtual worlds
• Internet-based collaboration
environments
 Tools and Technologies for
Collaboration/Methods
 E-mail and instant messaging (IM): E-mail
and instant messaging have been embraced by
corporations as a major communication and
collaboration tool supporting interaction
jobs.Their software operates on computers, cell
phones, and other wireless handheld devices
and includes features for sharing files as well
as transmitting messages. Many instant
messaging systems allow users to engage in
real-time conversations with multiple
participants simultaneously.
 Tools and Technologies for
Collaboration/Methods
 15 categories of collaborative software tools
Email and instant messaging
White boarding
Collaborative writingWeb presenting
Collaborative reviewing
Work scheduling
Event scheduling
Document sharing /wikis
 Tools and Technologies for
Collaboration/Methods
 15 categories of collaborative software tools
File sharing
Mind mapping
Screen sharing
Large audience
Webinars
Audio conferencing
Co-browsing
Video conferencing
 Tools and Technologies for
Collaboration/Methods

 Social networking: We’ve all visited social

networking sites such as MySpace and Facebook,
which feature tools to help people share their
interests and interact. Social networking tools are
quickly becoming a corporate tool for sharing ideas
and collaborating among interaction-based jobs in
the firm. Social networking sites such as
Linkedin.com provide networking services to
business professionals, while other niche sites have
sprung up to serve lawyers, doctors, engineers, and
even dentists.
 Tools and Technologies for
Collaboration/Methods
 Wikis: Wikis are a type of Web site that makes
it easy for users to contribute and edit text
content and graphics without any knowledge
of Web page development or programming
techniques. The most well-known wiki is
Wikipedia, the largest collaboratively edited
reference project in the world. It relies on
volunteers, makes no money, and accepts no
advertising. Wikis are ideal tools for storing
and sharing company knowledge and insights.
 Tools and Technologies for
Collaboration/Methods
 Virtual worlds: Virtual worlds, such as
Second Life, are online 3-D environments
populated by “residents” who have built
graphical representations of themselves
known as avatars. Organizations such as IBM
and INSEAD, an international business
school with campuses in France and
Singapore, are using this virtual world to
house online meetings, training sessions, and
“lounges.”
 Tools and Technologies for
Collaboration/Methods
 Internet-based collaboration environments:
There are now suites of software products
providing multi-function platforms for workgroup
collaboration among teams of employees who
work together from many different locations.
Numerous collaboration tools are available, but the
most widely used are Internet-based audio
conferencing and video conferencing systems,
online software services such as Google
Apps/Google Sites, and corporate collaboration
systems such as Lotus Notes and Microsoft
SharePoint.
 Tools and Technologies for
Collaboration/Methods
 GOOGLE APPS/GOOGLE SITES CAPABILITY
DESCRIPTION
 Google Calendar Private and shared calendars;
multiple calendars
 Google Gmail Google’s free online e-mail service,
with mobile access capabilities
 Google Talk Instant messaging, text and voice chat
 Google Docs Online word processing,
presentation, spreadsheet, and drawing software;
online editing and sharing
 Tools and Technologies for
Collaboration/Methods
 GOOGLE APPS/GOOGLE SITES CAPABILITY
DESCRIPTION
 Google Sites Team collaboration sites for
sharing documents, schedules, calendars;
searching documents and creating group wikis
 Google Video Private hosted video sharing
 Google Groups User-created groups with mailing
lists, shared calendars, documents, sites, and
video; searchable archives
 Tools and Technologies for
Collaboration/Methods
 OTHER POPULAR ONLINE
COLLABORATION TOOLS
 Socialtext An enterprise server-based collaboration
environment which provides social networking,
Twitter-like micro-blogging , wiki workspaces, with
integrated weblogs, distributed spreadsheets, and a
personal home page for every user. Delivered in a
variety of hosted cloud services, as well as on-site
appliances to provide enterprise customers with
flexible deployment options that meet their security
requirements.
 Tools and Technologies for
Collaboration/Methods
 OTHER POPULAR ONLINE
COLLABORATION TOOLS
 Zoho Collecting and collaborating on text, line
drawings, images,Web pages, video, RSS feeds.
Project management (includes task management,
work flow, reports, time tracking, forums, and file
sharing). Free or monthly charge for premium
service.
 BlueTie Online collaboration with e-mail, scheduling,
to-do lists, contact management, file sharing. $4.99
per user per month.
 Tools and Technologies for
Collaboration/Methods
 OTHER POPULAR ONLINE
COLLABORATION TOOLS
 Basecamp Sharing to-do lists, files, message
boards, milestone tracking. Free for a single
project, $24/month for 15 projects with 5 gigabytes
of storage.
 Onehub Sharing documents, calendars, Web
bookmarks; e-mail integration and IM. Manage hub
resources; bulletin board.
 WorkZone Collaboration with file sharing; project
management; customization; security.
 Collaboration and social
business platforms

 Collaboration and social business

platforms
 Virtual meeting systems (telepresence)
 Cloud collaboration services (Google
Tools, cyberlockers)
 Microsoft SharePoint
 IBM Notes
 Enterprise social networking tools
 Enterprise social networking
software capabilities

 Enterprise social networking software

capabilities
 Profiles
 Content sharing
 Feeds and notifications
 Groups and team workspaces
 Tagging and social bookmarking
 Permissions and privacy
 Systems for Collaboration and
Social Business
 Two dimensions of collaboration technologies
 Space (or location)—remote or co-located
 Time—synchronous or asynchronous
 Six steps in evaluating software tools
1. What are your firm’s collaboration challenges?
2. What kinds of solutions are available?
3. Analyze available products’ cost and benefits.
4. Evaluate security risks.
5. Consult users for implementation and training issues.
6. Evaluate product vendors.
The Time/Space Collaboration
Tool Matrix

Collaboration technologies can be classified in terms of whether they

support interactions at the same or different time or place or whether these
interactions are remote or co-located.
 Information Systems
Department

• Formal organizational unit responsible for

information technology services
• Often headed by chief information officer (CIO)
• Other senior positions include chief security
officer (CSO), chief knowledge officer (CKO),
chief privacy officer (CPO)
• Programmers are highly trained technical
specialists who write the software instructions for
computers.
 Information Systems
Department

• Systems analysts constitute the principal liaisons

between the information systems groups and the
rest of the organization.
• Information systems managers are leaders of
teams of programmers and analyst, project
managers, physical facility managers,
telecommunications managers, or database
specialist.
 Information Systems
Department

• Chief Information Officer The CIO is a senior

manager who oversees the use of information
technology in the firm.
• Chief Security Officer is in charge of information
systems security for the firm and is responsible for
enforcing the firm’s information security policy .
• Chief privacy Officer is responsible for ensuring
that the company complies with existing data
privacy laws.
 Information Systems
Department

• Chief Knowledge Officer is responsible for the

firm’s knowledge management program.
• Chief data Officer is responsible for enterprise
wide governance and utilization of information to
maximize the value the organization can realize
from its data.
 The Information Systems
Function in Business
 End users
 Representatives of other departments for whom
applications are developed
 Increasing role in system design, development
 IT Governance:
 Strategies and policies for using IT in the
organization
 Decision rights
 Accountability
 Organization of information systems function
 Centralized, decentralized, and so on
Thank
You