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Business processes:
- -Workflows of material, information, knowledge
- -sets of activities, steps
- -maybe tied to functional area or be cross-functional
- businesses: can be seen as collection of business processes
- business processes may be assets or liabilities
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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
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Information technology enhances business processes in 2 main ways
- 1. increasing efficiency of existing processes
- -automating steps that were manual
- 2. enabling entirely new processes that are capable of transforming the businesses
- -change flow of information
- -replace sequential steps with parallel steps
- -eliminate delays in decision making
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Transaction processing systems
- 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 operational levels
- serve predefined, structured goals and decision making
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management information systems
- serve middle management
- provide reports on firm's current performance, based on data form TPS
- provide answers to routine questions with predefined procedure for answering them
- typically have little analytic capability
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Decision support systems
- serve middle management
- support non-routine decision making. Example: what is impact on production schedule if December sales doubled?
- often use external information as well from TPS and MIS
- Model driven DSS
- -voyage-estimating systems
- Data driven DSS
- -intrawest's marketing analysis systems
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Business intelligence
- class of software applications
- analyze current and historical data to find patterns and trends and aid decision-making
- used in systems that support middle and senior management
- -data-driven DSS
- executive support systems (ESS)
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Executive support systems
- Support senior management
- address non-routine 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 on firm's financial performance: working capital, accounts receivable, accounts payable, cash flow, and inventory
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Systems from a constituency perspective
- transaction processing systems: supporting operational level employees
- management information systems and decision-support systems: supporting managers
- executive support systems: supporting executives
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Relationship of systems to one another
- TPS: major source of data for other systems
- ESS: recipient of data from lower-level systems
- data may be exchanged between systems
- in reality, most businesses' systems are only loosely integrated (but they are getting better)
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enterprise applications
- systems for linking the enterprise
- span functional areas
- executive business processes across firm
- include all levels of management
- 4 major applications:
- -enterprise systems (ERP)
- -supply chain management systems
- -customer relationship management systems
- -knowledge management systems
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Enterprise systems
- 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
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Supply chain management (SCM) systems
- manage firm's relationships with suppliers
- share information about
- -orders, production, inventory levels, delivery of products and services
- Goal:
- -right amount of products to destination with least amount of time and lowest cost
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Customer relationship management 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
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knowledge management systems (KMS)
- support processes for acquiring, creating, storing, distributing, and 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
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Alternative tools that increase integration and expedite the flow of information
- intranets:
- -internal company web sites accessible only by employees
- extranets:
- -company web sites accessible externally only to vendors and suppliers
- often used to coordinate supply chain
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E-busines
use of digital technology and internet to drive major business processes
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E-commerce
- subset of e-business
- buying and selling goods and services through internet
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E-government
using internet technology to deliver information and services to citizens, employees, and businesses
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Systems for 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
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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
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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, systems rely on teams
- -managers purpose is to build teams
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technology for collaborative software tools. 15 categories of collaborative software tools
- email and instant messaging
- white boarding
- collabortive writing
- web presenting
- collaborative reviewing
- work scheduling
- document sharing/wikis
- file sharing
- mind mapping
- screen sharing
- large audience webinars
- audio conferencing
- co-browsing
- video conferencing
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Technology for collaboration and teamwork
- social networking
- wikis
- virtual worlds
- internet-based collaboration environments
- -virtual meeting systems (telepresence)
- -google apps/ google sites
- -microsoft sharepoint
- -lotus notes
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2 dimensions of collaboration technologies
- space (or location)- remoste or colocated
- time- synchronous or asynchronous
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6 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
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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
- systems analysts
- information systems managers
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End users
- representatives of other departments for whom applications are developed
- increasing role in system design, development
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IT governance
- strategies and policies for using IT in the organization
- decision rights
- accountability
- organization systems function
- -centralized, decentralized, etc
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