4. Electronic Business Systems
4. Electronic Business Systems
IT1106
Level I - Semester 1
4. Electronic Business Systems
4.1. Organizational Structure and Information Systems
4.1.1. Transaction Processing Systems
4.1.2. Management Information Systems
4.1.3. Decision Support Systems
4.1.4. Executive Support Systems
4.2. Functional Information Systems
4.2.1. Marketing and Manufacturing Systems
4.2.2. Human Resource Management Systems
4.2.3. Finance and Accounting Systems
4.3. Cross-Functional Systems
4.3.1. Introduction to Cross-Functional Systems
4.3.2. Enterprise Resource Planning Systems
4.3.3. Supply Chain Management Systems
4.3.4. Customer Relationship Management Systems
4.3.5. Knowledge Management Systems
4.1. Organizational Structure and Information Systems
•Transaction Processing Systems
• Management Information Systems
• Decision Support Systems
•Executive Support Systems
4.1.1. Transaction Processing Systems
• captures and processes the detailed data necessary to update
records about the fundamental business operations.
• a cross-functional information system that support routine
operations associated with business processes.
• provides input to higher level information Systems
4.1.1. Transaction Processing Cycle
•Input - customer orders, purchase orders, receipts, time cards,
invoices, and customer payments.
•Process - data collection, data editing, data correction, data
processing, data storage, and document production.
•Output (Result) - organization’s records are updated to reflect the
status of the operation at the time of the last processed transaction
4.1.2. Management Information Systems
•An organized collection of people, procedures, software,
databases, and devices that provides routine information to
managers and decision makers.
•An MIS typically provides standard reports generated using data
from a TPS.
TPS & MIS Relationship
4.1.2. Reports generated by MIS
•Periodic Scheduled Reports - Provided on a regular basis
•Exception Reports - Produced under exceptional conditions
• Demand Reports and Responses - Produced when demanded
•Push Reporting - Information is pushed to manager's dashboard
Types of function specific MIS
• Marketing Information System
• Human Resource Information System
• Financial Management Information System
• Production Management Information System
1.3. Decision Support Systems (DSS)
•Provides interactive information
support to managers and business
professionals during the
decision-making process.
• Designed to be ad hoc,
quick-response systems that are
initiated and controlled by business
decision makers.
4.1.3. Architecture of a DSS
4.1.4. Executive Support Systems (ESS)
• A specialized DSS consisting of people, procedures, software,
databases, and devices to assist senior-level executives in an
organization.
• Often information is delivered through a portal
• Addresses non routine decisions requiring judgment, evaluation, and
insight
• There is no agreed-on procedure for arriving at decisions
• Designed to incorporate data about external events such as new tax
laws or competitors and draw summarized information from internal
MIS and DSS
About ESS
• Top level management
• Designed to the individual
• Ties CEO to all levels
• Sophisticated data analysis and modeling tools
• Flexibility
• Quick response time
Interrelationship among Systems
Summary of Types of Information Systems
4.2 Functional Information Systems
• Marketing and
Manufacturing Systems
• Human Resource
Management Systems
• Finance and Accounting
Systems
4.2.1. Marketing Systems
•A formal system that provides information technologies that support
major components of the marketing function.
•Provide an organized, regular flow of relevant information for use
and analysis by marketing decision-makers.
• Uses information collected from both internal and external sources.
4.2.1. Components of Marketing Systems
4.2.1. Manufacturing Systems
•Support the
production/operations
function production.
• Manufacturing information
systems help to;
• simplify, automate, and
integrate many of the
activities needed for
production.
4.2.2. Human Resource Management Systems
• HRM systems support the effective and efficient use of the human
resources of a company.
•It assists functions such as the recruitment, placement, evaluation,
compensation, and development of the employees
•Intranet technologies allow companies to process most common
HRM applications over their corporate intranets.
4.2.2. Functions of HRM Systems
4.2.3. Financial Management Systems
•Financial management systems support managers in decisions
concerning the financing of a business and the allocation and
control of financial resources within a business.
• e.g. cash and investment management, capital budgeting,
financial forecasting, and financial planning.
4.2.3. Accounting Systems
• Accounting systems record and report
the flow of funds through an organization
on a historical basis and produce
important financial statements and
forecasts of future conditions.
• Operational accounting systems
include transaction processing
systems.
• Management accounting systems
focus on the planning, controlling,
reporting and costing of business
operations, decision making and
performance evaluation.
4.3.1. Cross-Functional Systems
• Cross-functional systems were designed to integrate the activities
of the entire business process.
•It involves multiple divisions and is a strategic way to use
information technology to share information resources and improve
the efficiency and effectiveness of business processes.
4.3.1. Cross-Functional Systems Architecture
4.3.2. Enterprise Resource Planning Systems
•A cross-functional enterprise system driven by an integrated suite
of software modules that supports the basic internal business
processes.
•ERP gives a company an integrated real-time view of its core
business processes.
•It is important to evaluate the benefits against the costs and
challenges of implementing an ERPS, and identify reasons for
failure
4.3.2. Components of ERPS
4.3.3. Supply Chain Management Systems
•A is a cross-functional inter-enterprise system that supports the
activities in a supply chain.
•The system support and manage the links between the company’s
suppliers, customers, and business partners.
4.3.4. Customer Relationship Management Systems
•An enterprisewide system that integrates and automates many
aspects of the customer-serving processes in customer-related
services.
• CRM software automates and integrates the functions of sales,
marketing, and service in an organization.
4.3.4. Key Features of CRM Systems
• Contact management
• Sales management
• Customer support
• Marketing automation
• Analysis
• Social networking
• Access by mobile devices
•Import contact data
4.3.5. Knowledge Management Process
4.3.5. Knowledge Management Systems
•Knowledge management systems (KMS) help gather, organize,
and share business knowledge within an organization.
•The goal is to improve the creation, retention, sharing, and reuse of
knowledge.
•Knowledge management systems also facilitate organizational
learning and knowledge creation.