Chapter 2 Flashcards
(32 cards)
Business Processes
- Logically related set of tasks that define how specific business tasks are performed.
- May be tied to a functional area or be cross functional
- May be assets or liabilities
Business
Can be seen as a collection of business processes
What are examples of business processes?
Manufacturing and production/Assembling the product
Sales and marketing/Identifying customers
Finance and accounting/Creating financial statements
Human resources/Hiring employees
How does IT improve business processes?
Increasing efficiency of existing processes - Automating steps that were manual
Enabling entirely new processes
- Changing flow of information
- Replacing sequential steps with parallel steps
- Eliminating delays in decision making
-Supporting new business models
Transaction Processing Systems (TPS)
Preforms & Records daily routine transactions necessary to conduct business.
- Serves Operational Managers & Staff
- Allow managers to monitor the status of operations & relations with external environments
What are some examples of TPS?
Sales, order entry, payroll, shipping
Systems for Business intelligence
Data & Software tools for organizing and analyzing data.
- used to help managers and users make improved decisions.
What are the 3 Systems for Business Intelligence?
Management Information System (MIS) + Decision Support System (DSS) + Executive Support Systems (ESS)
Management Information Systems
Provide reports on firms current performance based on data from TPS.
- Serves middle management.
- Little analytic capabilty
- Provides answers to routine questions w/ pre-defined procedures for answering
Decision Support Systems
Supports non-routine decision making (focus on uncommon problems)
- Serves Middle Management
- May use external info + MIS +TPS data.
Executive Support System
Addresses non-routine decisions that require judgement evaluation & insight.
- Serves Senior managemet
- Incorporates data about external events (new tax law/ competition) as well as Summarized Info from MIS & DSS.
Enterprise Applications
Systems for linking the enterprise.
- executes business processes across the firm.
- includes all levels of management.
What are the 4 Enterprise Applications?
- Enterprise Resource Planning (ERP)
- Supply Chain Management Systems (SCM)
- Customer Relationship Management Systems (CRM)
- Knowledge Management Systems (KMS)
Enterprise Resource Planning
Integrate data from key business processes into single systems.
- Speeds communication of information throughout firm.
- allows for greater flexibility in responding to costumer requests, greater accuracy in order fulfilment
- enable managers to assemble overall view of operations.
Supply Chain Management Systems (SCM)
Manage relationships with supplies, purchasing firms distributors &logistic companies.
- Manage shared information about orders, production, inventory levels etc….
- Goal is to move the right amount of product from source to point of consumption as quickly and cheaply as possible.
- Is a type of inter-organizational system
Customer Relationship Management Systems (CRM)
Coordinate business processes that deal with customers in sales, marketing, and customer service.
- Helps manage relationships w/ customers.
- Goals are: Optimize revenue+ customer satisfaction+ customer retention + identify & retain profitable customers+ increase sales.
Knowledge Management Systems (KMS)
Manage processes for capturing & applying knowledge & expertise
- links firms to external sources of knowledge.
- collect relevant knowledge and make it available wherever needed in the enterprise to improve business processes and management decisions.
What are the Intranet & Extranet?
Technology platforms that increase integration & expedite the flow of information.
Intranet
Internal networks based on internet standards
- usually private access area in company’s website.
Extranet
Company website accessible only to authorized vendors & supplier
- Facilitate collaboration.
E-business
Use of digital technology & internet to drive major business processes.
E-commerce
Buying & selling goods and service through internet.
- Subset of E-business
E-governement
Using internet technology to deliver information & services to citizens, employees & businesses.
Why is collaboration important?
- Changing the nature and culture of work
- Growth of Professional work
- Changing organization & Scope of firm
- Emphasis on innovation
