Assumption University of Thailand

Graduate School of Business and Advanced Technology Management

(GSB-ATM)

Management Information Systems

Global E-Business and
Collaboration

Dr. Poonphon Suesaowaluk

Objectives
• To describe business processes and their relationship to
information systems.
• To describe the various types of information systems and
the applications for which they would be used.
• To describe the importance of information systems and how
they might enhance a business's performance in general.
• To describe the purpose and role of using information
systems in a business..
Topics
• Business Process and Information Systems
• Systems for different management groups
• Systems for collaboration and social business
• The role of Information Systems function in a business
Business Processes and
Information Systems
Business Processes and Information Systems
• Businesses: Collection of business processes
• Business processes:
– Flows of material, information, knowledge, Sets of activities
– Logically related set of tasks that define how specific
business tasks are performed
– Example:
‣ 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

Sales Generate order Submit order

------------------------------------------------------------------------------------------------------------------------------

Check credit Approve credit Generate Invoice

Accounting

------------------------------------------------------------------------------------------------------------------------------

Manufacturing Assemble product Ship product

and Production
------------------------------------------------------------------------------------------------------------------------------

Source: Kenneth C Laudon, Jane P. Laudon, 2020

How Information Technology Improves
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
Systems for Different
Management Groups
Systems for Different Management Groups
Management Levels
1. Top/ Senior
2. Middle; Scientist and knowledge worker
3. Operational: Production, Service worker, data worker
Transaction Processing Systems (TPS)
• Serve operational managers and staff
• Perform and record daily routine transactions necessary,
e.g., sale order, payroll
• Monitor operations status and relations with external
environment
• Serve predefined, structured goals and decision making
A Payroll TPS
Employee Data To General Ledger

Payroll
Employee/File Management reports
System
Database

Employee Number To government agencies

Name
Address
Pay rate
Gross pay Employee paychecks
Federal tax
FICA
Medicare
State tax
Net pay
Earning (YTD) Online queries

Payroll data on master file Source: Kenneth C Laudon, Jane P. Laudon, 2022
System for Different Management Groups
• Systems for Business Intelligence
– Data and software tools for organizing and analyzing data
– Used to make more informed decisions

• Management Information Systems (MIS)

• Decision Support Systems (DSS)
• Executive Support Systems (ESS)
Management Information Systems (MIS)
• Serve middle management
• Provide reports of current performance based on the data
from TPS
• Have typically little analytic capability, use simple routines
such as summaries and comparisons
• Use to monitor and control the business and predict future
performance
How MIS Obtain Their Data from the Organization’s TPS

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.
Source: Kenneth C Laudon, Jane P. Laudon, 2022
 Figure 2.4 Sample M I S Report
Consolidated Consumer Products Corporation Sales by Product and
Sales Region: 2020

Source: Kenneth C Laudon, Jane P. Laudon, 2022

Decision Support Systems (DSS)
• Serve middle management
• Support non-routine decision making, e.g., the cause and
reason of sale volume of an interested period of time
• Data analysis may use the external information and TPS / MIS
data
• Example model
– model driven, Voyage-estimating systems
– data driven DSS, marketing analysis systems
Voyage-Estimating Decision-Support System

Source: Kenneth C Laudon, Jane P. Laudon, 2022

Executive Support Systems
• Support senior/ top management
• Address non-routine decisions
– Requiring judgment, evaluation, and insight
• Incorporate data from external events (e.g., new tax laws,
competitors) as well as summarized data from internal MIS
and DSS.
• Example: Digital dashboard with real-time view of financial
performance, including working capital, accounts receivable,
accounts payable, cash flow, and inventory.
Enterprise Applications
• Cooperation of all management levels
• TPS, MIS, DSS, and ESS work together
• Enhance the ability to pass information throughout the organization
with a low additional cost investment.
• Four major applications:
– Enterprise systems
– Supply chain management systems
– Customer relationship management systems
– Knowledge management systems
Enterprise Application Architecture

Source: Kenneth C Laudon, Jane P. Laudon, 2022

Enterprise Systems
• Also called enterprise resource planning (ERP) systems
• Integrate data from key business processes into single
system,
• Speed communication of information throughout firm
• Enable:
– Efficient response to customer orders (production, inventory)
– managers to assemble an overall view of operations
– Enable greater flexibility in responding to customer requests, and
greater accuracy in order fulfillment.
Supply Chain Management Systems (SCM)
• Manage relationships with suppliers, purchasing firms,
distributors, and logistics companies.
• Share information: orders, production, inventory levels,
delivery of products and services
– Goal:
‣ To deliver right amount of products to destination with
least amount of time and lowest cost, increase market
share and profit
‣ To win a competitive advantage
Customer Relationship Management Systems (CRM)
• Enable a business to better manage relationships with existing
and potential customers.
• Provide end-to-end customer care, from receive order through
delivery product or services with functions, Sales, Marketing,
Customer service
➢ Goal
‣ Optimize revenue
‣ Improve customer satisfaction
‣ Increase customer retention
‣ Identify and retain most profitable customers
‣ Increase sales
 Knowledge Management Systems (KMS)
• Integrated part of the overall organization’s information
• Manage processes for capturing and applying knowledge and
expertise
• Collect internal knowledge and experience within a firm and
make it available to employees.
• Link firm to external source of knowledge
• Business benefits:
– Integrate new knowledge into the organization for new
product development, product production, product delivery,
and service delivery.
Intranets and Extranets
• Technology platforms that increase integration and
expedite the flow of information
• Intranets:
- Internal company Web sites accessible internally by the
company’s employees or authorized persons
• Extranets:
- The company's Web site is accessible externally only to
authorized suppliers and customers.
- Often used to coordinate supply chain system
E-business, E-commerce and E-government
• E-business
– Utilization of digital technology and the Internet to carry out business
processes
– Example purpose: internal management of an organization with business
partners
• E-commerce
– Subset of e-business
– Buying and Selling goods and services through Internet
• E-government
– Using Internet technology to deliver information and services to citizens,
employees, and businesses
Systems for Collaboration
and Social Business
Systems for Collaboration and Social Business
Collaboration: is working with others to achieve shared and explicit
goals.
• Changing nature of work
– new jobs require interaction among employees, suppliers and customers
• Growth of professional work
– Professional jobs require close coordination and sharing of information to
each other
• Changing organization of the firm
– New organizations have been flattened and expertise decision making are
made by groups or team
Systems for Collaboration and Social Business (Cont.)

• Changing scope of the firm

– Organization are created in separated location, globalization require
close coordination
• Emphasis on innovation
– New innovative products almost come from teams
• Changing culture of work
– Diverse teams can deliver better outputs than individual
Systems for Collaboration and Social Business (Cont.)
• Social business
– Use of social networking platforms (internal and external) to engage
employees, customers, and suppliers
• Aims to deepen interactions and expedite information
sharing
• “Conversations” to strengthen bonds with customers
• Requires information transparency
• Seen as way to drive operational efficiency, spur innovation,
accelerate decision making
Systems for Collaboration and Social Business (Cont.)
Four Primary Purposes of Collaboration
1. Become informed
2. Make decisions (Operational Managerial, Strategic)
3. Solve problems
4. Manage projects
Criteria for Successful Collaboration
• Successful outcome
• Growth/ improve Team Capability
• Meaningful and Satisfying Experience

Copyright © 2017 Pearson Education, Ltd.

Business Benefits of Collaboration and Teamwork
• Collaboration capability + Technology → Collaboration
Quality → Firm Performance
• Benefits: organization improvements, returning high ROI
– Productivity
– Quality
– Innovation
– Customer service
– Financial performance; Profitability, sales, sales growth
Requirements for Collaboration
Social Networks as Value to Businesses
• Social Capital = Number of Relationships x Relationship Strength x
Entity Resources
• Strength of a relationship
– Likelihood other entities will do something that benefits your
organization
• Progressive organizations:
– Have: Facebook, LinkedIn, Twitter, TikTok, and other SN sites
– Encourage customers and interested parties to leave comments
– Risk – encouraging excessively critical feedback.
Social Business
• Improve interactions with group inside and outside the
organization, company employees, suppliers, and customers
• Enhance the ability of information sharing, innovation and
decision making
• Example:
– Blogs and Wikis: publish knowledge, discuss opinion and
experience
– File Sharing: upload, share and comment on photos, audio,
– Social network, face book, line
Building a Collaborative Culture and Business
Processes
• Hierarchical or “Command and control”
– Communication from management ladder to employees, Slow
communication
– Low level employees carry out orders without asking too many questions,
without responsibility to improve processes
• Collaborative business culture
– Senior managers are responsible for achieving results but rely on teams of
employees
– Policies, products, designs, processes, and systems are created by teams
– The managers build the teams, coordinate work, monitor performance
Tools, Technology for Collaboration and Social
Business
• E-mail and instant messaging
• Social Networking: social media; Face book, Twitter, You
Tube
• Wikis; knowledge sharing
• Virtual worlds; e.g., online meeting
• Collaboration and Social Business Platforms
Collaboration and Social Business Platforms
• Virtual meeting systems (telepresence), Google Hangouts, WebEx, Skype for
Business, Zoom.
• Google Apps/Google sites; set up the technology infrastructure,
communicate in real-time
• Microsoft SharePoint; developing website to stores and share information
• Lotus Notes; IBM product with high security, reliability and ability to keep
control sensitive information
• Enterprise social networking tools; connect organization’s member through
profile
• Webinar (webex.com)
Systems for Collaboration and Social Business
(Cont.)
Six steps in evaluating software tools
1. Search appropriate challenges in time/ Location
2. Select available solutions
3. Analyze available products which rely on cost and benefits
4. Evaluate security risks associate to the selected solution
5. Consider Implementation and training issues
6. Evaluate product vendors
The Time/Space Collaboration Tool Matrix

Two dimensions of collaboration

technologies;
1. Location-remote or co-located
2. Time-synchronous or
asynchronous

Source: Kenneth C Laudon, Jane P. Laudon, 2022

Collaboration technologies can be classified in terms of whether they support interactions at the same
or different times or place or whether these interactions are remote or co-located.
MUDs = Multi User Domains
The Role of Information
Systems Function in
a Business
Information Systems Function in Business
• Information systems department
– Formal organizational unit responsible for information
technology services
– Often headed by Chief Information Officer (CIO)
‣ Large IT organization may include;
‣ Chief Security Officer (CSO), Chief Data Officer (CDO),
Chief Knowledge Officer (CKO), Chief Privacy Officer (CPO)
– Programmers
– Systems Analysts
– Information Systems Managers
– End users
Information Systems Function in Business (Cont.)
• IT Governance
– Organize the best way of issues to be followed for all
beneficial
– Possible issues:
‣ Strategies and policies for using IT in the organization
‣ Decision right, the positive return on IT investment
‣ Accountability toward the strategies and objectives
‣ Organization of information systems function;
centralized, decentralized
Summary
Summary
• How Information Technology Improves Business Processes
• Types of Information Systems
– Transaction Processing Systems
– Business Intelligence Systems for Decision Support
‣ Management Information Systems
‣ Decision Support Systems
‣ Executive Support Systems
– Enterprise Applications, Enterprise Systems
‣ Supply chain management
‣ Customer relationship management
• Importance of Collaboration and Teamwork in Business
• Social Network and value of business
• Role of Information Systems Function in a Business
References
• Laudon, K.C., & Laudon, J.P. (2022). Management information
th
systems (17 ed.). Edinburgh Gate Harlow, London: Pearson.
• https://www.b2binternational.com/
Assignment Unit 2
From Assignment 1
Analyze business and define:
1. The Business Processes
2. Identify the essential information systems that should be
developed to support those business processes,
including the rationale for their development.