management information systems business processes, information, and information systems chapter 2
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Management Information SystemsManagement Information Systems
Business Processes, Information, and Information Systems
Chapter 2
2
This Could Happen to You
In order to get a budget approved for the blog:Needs specifics
Needs answers How will this blog impact the sales process?
How will the salespeople use it?
How will it help us gain sales?
3
Study Questions
Q1. How did this stuff get here?
Q2. What is a business process?
Q3. What are the components of the business process?
Q4. What is information?
Q5. What role does information play in business processes?
Q6. Hoe do information systems support business processes?
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Q1. How Did this Stuff Get Here?
Business processes must work together
Each business must Obtain payment
Cover costs
Make profit
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Q2. Business Processes (1)
Network of:Activities
Resources
Facilities
Information
Interact to achieve business function
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Business Processes (2)
Business systems
Examples:Inventory management processes
Manufacturing processes
Sales and support processes
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Inventory Management Business System (1)
Purchasing (activity) queries Inventory Database (facility) obtains QuantityOnHand (information)
If reorder needed, Purchasing generates PurchaseOrder (information) to Supplier (resource)
Order Placement (activity) sends copy to Receiving & Stocking (activity)
Receiving & Stocking puts goods into Inventory (facility)
Record (QuantityReceived) sent to Inventory Database and Payment (activity)
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Inventory Management Business System (2)
Supplier sends ShippingInvoice (information) to Payment
ShippingInvoice compared to Order, generates Check (information and resource)
Counter Sales (activity) interacts with Customer (resource), Inventory (resource), and Inventory Database
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Activities
Transforms resources and information form one type into another
Follows rules and procedures
Can be manual, automated, or combination
Example:Payment (activity) transforms QuantityReceived
(information) and ShippingInvoice (information) into PaymentToSupplier (resource)
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Facilities
Structures used within business process
Examples:Inventories
Databases
Factories
Equipment
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Information
Used by activities
Determine how to transform inputs into outputs
Difficult to define
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Q4. What is Information?
Knowledge derived from data
Data presented in meaningful context
Processed dataData processed by summing, ordering, averaging,
grouping, comparing
A difference that makes a difference
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Good Information (1)
AccurateCorrect and complete
Crucial for management
Cross-check information to ensure accuracy
TimelyProduced in time for intended use
RelevantContext
Subject
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Good Information (2)
Just Barely SufficientSufficient for purpose for which generated
Do not need additional, extraneous information
Worth its CostRelationship between cost and value
Information systems cost money to develop, maintain, and use
Must be worth the cost
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Q5. What is the Role of Information in Business Processes?
Business processes generate information:Brings together items of data in a context
May be higher level Useful for management and strategy decisions
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Q6. How Do Information Systems Support Business Processes?
Used by activities in a business processSeveral activities may use one system
Activity may have own system
Activity may use several systems
Systems designers determine relationship of activities to information systems Relationship determined during systems development
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Automation of Process Activity
Automation of processesTransfer work done by people to computers
People follow procedures
Computers follow software instructions
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Information System Supporting Counter Sales (2)
Fully automatedCashiers do not require extensive training
Cashiers do not work directly with programs on computer
Computer in cash register communicates with computer that hosts Inventory Database
Programs record sales and makes changes
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Information System to Support Payment (2)
Payment receives QuantityReceived and ShippingInvoice and produces SupplierPayment
Mostly manualAccounts Payable Clerk reads documents and issues
payment or investigates discrepancies
Processing exceptions complicated Programming expensive
Probably not effective
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Information System to Support Purchasing (2)
Purchasing clerk computer runs program that queries database and identifies stock levels and generates PurchaseOrder
Designers balanced work between automation and manual activitySearching database is repetitive
Automated process
Selecting suppliers is complicated Manual process
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Your Role in Information System
You are part of system (people)
Most important componentMust be able to use system
Quality of thinking
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Applying Chapter to Obtain Budget
Diagram sales processShow actors, information, and facility
A difference that makes a differenceUse blog to publish successful strategies
Create diagrams to summarize five components used when:Representatives access blog
Marketing Director creates blog
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Ethics Guide (1)
A problem is a perceived difference between what is and what ought to be
Information system development team must have common definition and understanding of the problem
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Ethics Guide (2)
Egocentric thinkingCenters on self
“Real view”
“What really is”
Empathetic thinkingView is one possible interpretation
Learn what others are thinking
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Ethics Guide (3)
“Professor Jones, I couldn’t come to class last Monday. Did we do anything important?”Egocentric
Doesn’t take into account professor’s view
Implies professor lectured on nothing important
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Ethics Guide (4)
“I couldn’t come to class, but I got the class notes from Mary. I read through them, and I have a question… Oh by the way, I’m sorry to trouble you with my problem.”Empathetic thinking
Minimize impact of absence on your professor
Consider situation from professor’s side
Professor must do something extra to help you recover
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Ethics Guide (5)
Suppose you buy a new laptop and it fails within a few days. Repeated calls to customer support produce short-term fixes, but your problem continues
Three different views:Customer service does not have data about prior customer
contacts
Customer support recommended a solution that did not work
Company is shipping too many defective laptops
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