Information system Management : Global E - business and Collaboration

  

Business processes are structured sequences of activities or tasks that produce a specific service or product for customers. They can be categorized into core processes (directly related to delivering value) and support processes (which facilitate core processes).

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

• Examples of functional business processes

a. Manufacturing and production

• Assembling the product

b. Sales and marketing

• Identifying customer

c. Finance and accounting

• Creating financial statements

d. Human resources

• Hiring employees

• Information technology enhances business processes by:

a. Increasing efficiency of existing processes

• Automating steps that were manual

b. Enabling entirely new processes

• Change flow of information

• Replace sequential steps with parallel steps

• Eliminate delays in decision making

• Support new business models

Managerial Level

Transaction Processing System (TPS)

• Characteristics:

• 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

TPS SUBSYSTEMS

Management information system (MIS)

Management information system is any type of computerized information system that focuses on the decision – oriented information needed by decision makers”

Characteristics :  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.