chapter 6 information systems for business operations and electronic commerce
TRANSCRIPT
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Chapter 6
Information Systems for Business Operations and Electronic Commerce
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Information Systems in Business
There are as many uses of information systems in business as there are problems and tasks to be performed
Business end users need to have a basic understanding and appreciation of the uses of information systems
There are a variety of information system types
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Cross Functional Information Systems
Information systems are usually grouped into functional areas
In the real world systems are usually integrated combinations that support business processes
Many traditional organizations are working hard to develop cross functional information system platforms
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Cont.
The cross functional platform is viewed as a strategic way to share resources and improve efficiency
Remember that the purpose of information systems is to support the strategic objectives of a business and to enable a sustainable competitive advantage
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Applications of Information Systems in Business
Information system uses in business Productions/Operations Marketing Financial Accounting Human Resources
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Cont.
Today, businesses are turning to Internet technology for additional uses including communication via intranets, coop arrangements via extranets, e-commerce sites, etc.
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Enterprise Resource Planning
Many companies moving from mainframe based systems to cross functional client/server system in an effort to focus on the movement of products or services through the supply chain or development cycle
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Marketing Information Systems
Marketing information systems provide for Interactive marketing through web
sites, etc. Sales force automation Assistance in product planning, pricing,
advertising, sales promotion, etc.
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Interactive Marketing
The use of intranets, extranets, and the Internet has changed the face of business
The goal of interactive marketing is to enable profitability through the use of technology
Several uses of interactive marketing
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Interactive Marketing
Source for marketing dataGet ideas for new products
(feedback, etc)High sales volumeChance to build strong customer
relationships
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Sales Force Automation
Within many companies the sales force is being equipped with a variety of high tech devices such as laptops, handhelds, smart phones
Productivity increases occurSpeeds up the capture of dataAllows for higher level of serviceStrategic advantage can develop
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Sales and Product Management
Provide for systems that can analyze data by product, area, customer group, cost, etc.
Can eliminate guessing about core customer group
More accurate target marketingDirect capture of data
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Cont.
Product managers can use systems to plan and control brands, product lines, sales areas
Offer modeling capabilities for what if analysis
Evaluate performance of products
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Advertising and Promotion
Decision makers use information to plan advertising media, promotion methods, allocate financial resources, control and evaluate results (measure)
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Target Marketing
Can develop web content to appeal to online communities
Can use links, banners, etc to get exposure on related web sites
Can use a “web cookie” to track site visitors habits, etc.
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Marketing Research and Forecasting
Assist managers in developing forecasts, strategies
Can use data warehousing to develop trends and patterns previously unknown
Use statistical analysis software to find inferential relationships
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Manufacturing Information Systems
Provide for the support and operations of a manufacturing site
Concerned with the support of planning and control of purchasing, inventories, flow of goods through the process
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Computer-Integrated Manufacturing
CIM is an overall concept that stresses Simplification or reengineering of business
processes Automation of production processes and
the business functions that support them Integration of production and support
processes using computers and networks
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CIM cont.
The overall goal of CIM is to create flexible, highly dynamic processes that can produce the highest quality possible while incurring the lowest possible cost
Basis for TQM (total quality management)
CAE, CAD, CAO, MRP, CAM
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Collaborative Manufacturing Networks
Computer aided manufacturing processes are typically a collaborative effort
Enabled by networks such as intranets, extranets, Internet
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Process Control
Defined as the use of cis to control ongoing processes Oil refineries Food mfg Pulp and paper mills Chemical plants Steel mills
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Machine Control
The use of computer to control the actions of a machine Typesetting Knitting Welding Machine tools (boring bars, presses, etc)
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Robotics
A machine that controls itself through a microcomputer
Used in manufacturing facilitiesGood for dangerous chemical plants,
nuclear plants, explosives
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Computer Aided Engineering
Engineers use CAE to analyze situations, materials needs, design alternatives
Can be used to refine “hard” drawings and convert to virtual images
Allows for multiple views
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Human Resource Management IS
HRM involves recruiting, placement, evaluation, compensation, and development of employees
HR IS allow for the planning of needs development plans policy control succession planning
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HR IS
Typically use information systems to produce payroll maintain employee records analyze resource use and needs recruitment selection performance appraisal benefit analysis
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Accounting Information Systems
Accounting systems were probably the first and most widely used systems
Used to report the flow of funds through an organization
Used to produce planning toolsEnable good record keepingAllow for the correct format of
governmental reporting
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Acct IS
Accounting systems can include several types of transaction processing order processing A/P and A/R Payroll GL
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Acct IS
Managerial accounting information systems emphasize cost accounting reports budgeting projections analytical reporting
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Electronic Commerce
Electronic commerce is more than buying or selling on the Internet
It is a process of developing, marketing, selling, servicing, and paying for goods and services in a new form
Reliant on the Internet's acceptance for future use
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E-commerce
Can include Marketing, selling, ordering, payment
processing over the Internet Access to databases by customers and
business partners Intranet access for field staff, customer
service persons
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B2C
Businesses create attractive, useful sites where consumers can order products and services
Offer easy payment methodsMake sure it is secure
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B2B
Commerce between businesses conducted on the Internet
EDI direct data transfers between companies eliminate many manual processes for billing
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Online Transaction Processing
5 step process data entry transaction processing file and database activities document and reporting inquiry processing
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Electronic Payments and Security
Vital step in the e processConcerned with securityVery complex because of payment
alternatives
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Secure Payments
Information is vulnerable due to network sniffers
Data encryption is best way to up security
Secure socket Layer (SSL) encrypts data between browser and merchants server
Digital Wallet is encryption of credit card information that can only be decoded by issuing financial institution
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Secure payments cont.
SET - secure electronic transaction that encrypts data and encloses it within another data stream
Offline transactions - Just make payments offline
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