chapter 03 -mis as business management function.ppt

8/20/2019 CHAPTER 03 -MIS as Business Management Function.ppt

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2.1 © 2003 by Prentice Hall

3

MANAGEMENTMANAGEMENT

INFORMATIONINFORMATION

SYSTEMS IN THESYSTEMS IN THE

ENTERPRISEENTERPRISE

Chapter


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• What are the key system applications in aWhat are the key system applications in a

business? What role do they play?business? What role do they play?

• How do information systems support theHow do information systems support the

major business functions?major business functions?

• Why should managers pay attention toWhy should managers pay attention tobusiness processes?business processes?

Essentials of Management Information SstemsEssentials of Management Information SstemsChapter ! Information Sstems in the EnterpriseChapter ! Information Sstems in the Enterprise

O!"#$%&"'


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• What are the business benefits of usingWhat are the business benefits of using

collaborati)e commerce* pri)atecollaborati)e commerce* pri)ate

industrial networks and enterpriseindustrial networks and enterprise

systems?systems?

• What types of information systems areWhat types of information systems are

used by companies that operateused by companies that operateinternationally?internationally?


O!"#$%&"'


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1.1. %ntegration,%ntegration, -ifferent systems ser)e )ariety of-ifferent systems ser)e )ariety offunctions* connecting organiational le)elsfunctions* connecting organiational le)els

difficult* costlydifficult* costly

2.2. "nlarging scope of management thinking,"nlarging scope of management thinking, Huge system in)estments* long de)elopmentHuge system in)estments* long de)elopment

time must be guided by common objecti)estime must be guided by common objecti)es


/00"/"$ #H033""'


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$ypes of %nformation 'ystems

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/ajor $ypes of 'ystems

• "=ecuti)e 'upport 'ystems >"''"=ecuti)e 'upport 'ystems >"''

• -ecision 'upport 'ystems >-''-ecision 'upport 'ystems >-''

• /anagement %nformation 'ystems >/%'/anagement %nformation 'ystems >/%'• 7nowledge Work 'ystems >7W'7nowledge Work 'ystems >7W'

• Office 0utomation 'ystems >O0'Office 0utomation 'ystems >O0'

• $ransaction 9rocessing 'ystems >$9'$ransaction 9rocessing 'ystems >$9'

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$ransaction 9rocessing 'ystems >$9',$ransaction 9rocessing 'ystems >$9',

• asic business systems that ser)e theasic business systems that ser)e theoperational le)eloperational le)el

•0 computeried system that performs and0 computeried system that performs andrecords the daily routine transactionsrecords the daily routine transactions

necessary to the conduct of the businessnecessary to the conduct of the business


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$ypes of $9' 'ystems

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i f f i S


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7nowledge Work 'ystems >7W',

7nowledge le)el7nowledge le)el

• %nputs,%nputs, -esign specs-esign specs

• 9rocessing,9rocessing, /odeling/odeling

• Outputs,Outputs, -esigns* graphics-esigns* graphics

• Dsers,Dsers, $echnical staff $echnical staff

"=ample, "ngineering work station"=ample, "ngineering work station


7"8 '8'$"/ 0993%#0$%O' % $H" O:0%;0$%O

E i l f M I f i S



/anagement %nformation 'ystem >/%',

/anagement le)el/anagement le)el

• %nputs,%nputs, High )olume dataHigh )olume data

• 9rocessing9rocessing,, 'imple models'imple models

• Outputs,Outputs, 'ummary reports'ummary reports

• Dsers,Dsers, /iddle managers/iddle managers

"=ample, 0nnual budgeting"=ample, 0nnual budgeting


7"8 '8'$"/ 0993%#0$%O' % $H" O:0%;0$%O

E i l f M I f i SE ti l f M t I f ti S t


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5igure 264

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/anagement %nformation 'ystem >/%'

E ti l f M t I f ti S tE ti l f M t I f ti S t


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• 'tructured and semi6structured decisions'tructured and semi6structured decisions

• :eport control oriented:eport control oriented

•9ast and present data9ast and present data

• %nternal orientation%nternal orientation

• 3engthy design process3engthy design process


7"8 '8'$"/ 0993%#0$%O' % $H" O:0%;0$%O

/anagement %nformation 'ystem >/%'





-ecision 'upport 'ystem >-'',

/anagement le)el/anagement le)el

• %nputs,%nputs, 3ow )olume data3ow )olume data

• 9rocessing,9rocessing, %nteracti)e%nteracti)e

• Outputs,Outputs, -ecision analysis-ecision analysis

•Dsers,Dsers, 9rofessionals* staff

9rofessionals* staff

"=ample, #ontract cost analysis"=ample, #ontract cost analysis

7"8 '8'$"/ 0993%#0$%O' % $H" O:0%;0$%O



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-ecision 'upport 'ystem >-''



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5igure 26@

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-ecision 'upport 'ystem >-''

E ti l f M t I f ti S tEssentials of Management Information Sstems


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"=ecuti)e 'upport 'ystem >"'',

'trategic le)el'trategic le)el

• %nputs,%nputs, 0ggregate data0ggregate data

• 9rocessing,9rocessing, %nteracti)e%nteracti)e

• Outputs,Outputs, 9rojections9rojections

• Dsers,Dsers, 'enior managers'enior managers

"=ample, 46year operating plan"=ample, 46year operating plan

7"8 '8'$"/ 0993%#0$%O' % $H" O:0%;0$%O

Essentials of Management Information SstemsEssentials of Management Information Sstems


19/612.1B © 2003 by Prentice Hall


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"=ecuti)e 'upport 'ystem >"''

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20/612.2C © 2003 by Prentice Hall


• $op le)el management$op le)el management

• -esigned to the indi)idual-esigned to the indi)idual

• $ies #"O to all le)els$ies #"O to all le)els

•&ery e=pensi)e to keep up&ery e=pensi)e to keep up

• "=tensi)e support staff "=tensi)e support staff

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"=ecuti)e support system >"''





%$"::"30$%O'H%9' 0/O '8'$"/'

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/ajor functions of systems,/ajor functions of systems,

• 'ales management* market research*'ales management* market research*

promotion* pricing* new productspromotion* pricing* new products

/ajor application systems,/ajor application systems,

• 'ales order info system* market research'ales order info system* market research

system* pricing systemsystem* pricing system


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'ales and /arketing 'ystems



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'03"' $:"-' 9:"90:" 468"0: 5O:"#0'$' '$:0$"%#

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/ajor functions of systems,/ajor functions of systems,• 'cheduling* purchasing* shipping*'cheduling* purchasing* shipping*

recei)ing* engineering* operationsrecei)ing* engineering* operations

/ajor application systems,/ajor application systems,• /aterials resource planning systems*/aterials resource planning systems*

purchase order control systems*purchase order control systems*engineering systems* Fuality controlengineering systems* Fuality controlsystemssystems


/anufacturing and 9roduction 'ystems

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'8'$"/ -"'#:%9$%O O:0%;0$%O03 3"&"3

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50#%3%$%"' 3O#0$%O -"#%-" WH":" $O 3O#0$" 50#%3%$%"' '$:0$"%#

/anufacturing and 9roduction 'ystems

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O)er)iew of %n)entory 'ystems

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• udgeting* general ledger* billing* costudgeting* general ledger* billing* cost

accountingaccounting


• eneral ledger* accounts recei)able*eneral ledger* accounts recei)able*

accounts payable* budgeting* fundsaccounts payable* budgeting* funds

management systemsmanagement systems


5inancing and 0ccounting 'ystems

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'8'$"/ -"'#:%9$%O O:0%;0$%O03 3"&"3

0##OD$' :"#"%&03" $:0#7 /O"8 OW"- $O 5%:/ O9":0$%O03

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D-"$% 9:"90:" 'HO:$ $":/ D-"$' /00"/"$

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5inancing and 0ccounting 'ystems

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• 9ersonnel records* benefits*9ersonnel records* benefits*

compensation* labor relations* trainingcompensation* labor relations* training


• 9ayroll* employee records* benefit9ayroll* employee records* benefit

systems* career path systems* personnelsystems* career path systems* personnel

training systemstraining systems


'8'$"/' 5:O/ 0 5D#$%O03 9":'9"#$%&"

Human :esource 'ystems



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'8'$"/ -"'#:%9$%O O:0%;0$%O03 3"&"3

$:0%% E -"&"3O9/"$ $:0#7 $:0%%* '7%33'* 099:0%'03' O9":0$%O03

#0:"": 90$H% -"'% "/93O8"" #0:"": 90$H' 7OW3"-"

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HD/0 :"'OD:#"' 930% 930 3O6$":/ 30O: 5O:#" ""-' '$:0$"%#


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Essentials of Management Information Sstemssse s o ge e o o Ss e sChapter ! Information Sstems in the EnterpriseChapter ! Information Sstems in the Enterprise

5igure 2611


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usiness processesusiness processes

• /anner in which work is organied*/anner in which work is organied*coordinated* and focused to produce acoordinated* and focused to produce a)aluable product or ser)ice)aluable product or ser)ice

• #oncrete work flows of material*#oncrete work flows of material*information* and knowledgeIsets ofinformation* and knowledgeIsets ofacti)itiesacti)ities

sse t a s o a age e t o at o Sste sg Chapter ! Information Sstems in the EnterpriseChapter ! Information Sstems in the Enterprise

usiness 9rocesses and %nformation 'ystems

%$":0$% 5D#$%O' 0- D'%"'' 9:O#"''"'



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g g Chapter ! Information Sstems in the EnterpriseChapter ! Information Sstems in the Enterprise

%$":0$% 5D#$%O' 0- D'%"'' 9:O#"''"'

• DniFue ways to coordinate work*DniFue ways to coordinate work*

information* and knowledgeinformation* and knowledge

• Ways in which management choosesWays in which management chooses

to coordinate workto coordinate work




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%$":0$% 5D#$%O' 0- D'%"'' 9:O#"''"'

%nformation systems help organiations%nformation systems help organiations

• 0chie)e great efficiencies by automating0chie)e great efficiencies by automating

parts of processesparts of processes

• :ethink and streamline processes:ethink and streamline processes



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• /anufacturing and production,/anufacturing and production, 0ssembling product* checking Fuality*0ssembling product* checking Fuality*

producing bills of materialsproducing bills of materials

• 'ales and marketing,'ales and marketing, %dentifying%dentifyingcustomers* creating customer awareness*customers* creating customer awareness*

sellingselling


"=amples of usiness 9rocesses

%$":0$% 5D#$%O' 0- D'%"'' 9:O#"''"'



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• 5inance and accounting,5inance and accounting, 9aying9ayingcreditors* creating financial statements*creditors* creating financial statements*

managing cash accountsmanaging cash accounts

• Human :esources,Human :esources, Hiring employees*Hiring employees*e)aluating performance* enrollinge)aluating performance* enrolling

employees inemployees in benefits plansbenefits plans


"=amples of usiness 9rocesses

%$":0$% 5D#$%O' 0- D'%"'' 9:O#"''"'



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%$":0$% 5D#$%O' 0- D'%"'' 9:O#"''"'

#ross65unctional usiness 9rocesses#ross65unctional usiness 9rocesses

• $ranscend boundary between sales* marketing*$ranscend boundary between sales* marketing*

manufacturing* and research and de)elopmentmanufacturing* and research and de)elopment

• roup employees from different functionalroup employees from different functionalspecialties to a complete piece of workspecialties to a complete piece of work

"=ample, Order 5ulfillment 9rocess"=ample, Order 5ulfillment 9rocess




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g Chapter ! Information Sstems in the EnterpriseChapter ! Information Sstems in the Enterprise

5igure 2612

$he Order 5ulfillment 9rocess

%$":0$% 5D#$%O' 0- D'%"'' 9:O#"''"'



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Chapter ! Information Sstems in the EnterpriseChapter ! Information Sstems in the Enterprise

%$":0$% 5D#$%O' 0- D'%"'' 9:O#"''"'

#ustomer :elationship /anagement >#:/#ustomer :elationship /anagement >#:/

• /anages all ways used by firms to deal with/anages all ways used by firms to deal with

e=isting and potential new customerse=isting and potential new customers

• usiness and $echnology disciplineusiness and $echnology discipline

• Dses information system to coordinate entireDses information system to coordinate entirebusiness processes of a firmbusiness processes of a firm

#ustomer :elationship /anagement >#:/



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%$":0$% 5D#$%O' 0- D'%"'' 9:O#"''"'

• 9ro)ides end6to6end customer care9ro)ides end6to6end customer care

• 9ro)ides a unified )iew of customer9ro)ides a unified )iew of customer

across the companyacross the company

• #onsolidates customer data from multiple#onsolidates customer data from multiple

sources and pro)ides analytical tools forsources and pro)ides analytical tools foranswering Fuestionsanswering Fuestions




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%$":0$% 5D#$%O' 0- D'%"'' 9:O#"''"'


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%$":0$% 5D#$%O' 0- D'%"'' 9:O#"''"'

'upply #hain /anagement >'#/'upply #hain /anagement >'#/• #lose linkage and coordination of acti)ities#lose linkage and coordination of acti)ities

in)ol)ed in buying* making* and mo)ing ain)ol)ed in buying* making* and mo)ing a

productproduct

• %ntegrates supplier* manufacturer* distributor*%ntegrates supplier* manufacturer* distributor*and customer logistics timeand customer logistics time

• :educes time* redundant effort* and in)entory:educes time* redundant effort* and in)entorycostscosts

'upply #hain /anagement >'#/



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%$":0$% 5D#$%O' 0- D'%"'' 9:O#"''"'

'upply #hain'upply #hain

• etwork of organiations and businessetwork of organiations and business

processesprocesses

• Helps in procurement of materials*Helps in procurement of materials*

transformation of raw materials intotransformation of raw materials intointermediate and finished productsintermediate and finished products




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%$":0$% 5D#$%O' 0- D'%"'' 9:O#"''"'

• Helps in distribution of the finishedHelps in distribution of the finished

products to customersproducts to customers

• %ncludes re)erse logistics 6 returned items%ncludes re)erse logistics 6 returned items

flow in the re)erse direction from theflow in the re)erse direction from the

buyer back to the seller buyer back to the seller


Essentials of Management Information SstemsEssentials of Management Information SstemsC f i S i iCh ! I f i S i h E i


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%$":0$% 5D#$%O' 0- D'%"'' 9:O#"''"'

'upply #hain /anagement

5igure 261+

Essentials of Management Information SstemsEssentials of Management Information SstemsCh ! I f i S i h E iCh t ! I f ti S t i th E t i


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• -ecide when* what to produce* store* mo)e-ecide when* what to produce* store* mo)e

• :apidly communicate orders:apidly communicate orders

• #ommunicate orders* track order status#ommunicate orders* track order status

• #heck in)entory a)ailability* monitor le)els#heck in)entory a)ailability* monitor le)els• $rack shipments$rack shipments

• 9lan production based on actual demand9lan production based on actual demand

• :apidly communicate product design change:apidly communicate product design change

• 9ro)ide product specifications9ro)ide product specifications

• 'hare information about defect rates* returns'hare information about defect rates* returns


How %nformation 'ystems 5acilitate 'upply #hain /anagement

%$":0$% 5D#$%O' 0- D'%"'' 9:O#"''"'

Essentials of Management Information SstemsEssentials of Management Information SstemsCh t ! I f ti S t i th E t iCh t ! I f ti S t i th E t i


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%$":0$% 5D#$%O' 0- D'%"'' 9:O#"''"'

3imitations,3imitations,

• %nefficiencies can waste as much as 24J%nefficiencies can waste as much as 24J

of companyKs operating costsof companyKs operating costs

• ullwhip "ffect, %nformation about theullwhip "ffect, %nformation about the

demand for the product gets distorted asdemand for the product gets distorted asit passes from one entity to ne=tit passes from one entity to ne=t


Essentials of Management Information SstemsEssentials of Management Information SstemsCh t ! I f ti S t i th E t iCh t ! I f ti S t i th E t i


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%$":0$% 5D#$%O' 0- D'%"'' 9:O#"''"'

• 'upply chain planning system,'upply chain planning system, "nables"nablesfirm to generate forecasts for a product andfirm to generate forecasts for a product and

to de)elop sourcing and a manufacturingto de)elop sourcing and a manufacturing

plan for the productplan for the product

• 'upply chain e=ecution system,'upply chain e=ecution system,

/anages flow of products through/anages flow of products throughdistribution centers and warehousesdistribution centers and warehouses


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%$":0$% 5D#$%O' 0- D'%"'' 9:O#"''"'

• Dses digital technologies to enableDses digital technologies to enable

multiple organiations to collaborati)elymultiple organiations to collaborati)ely

design* de)elop* build* mo)e* and managedesign* de)elop* build* mo)e* and manage

productsproducts

• %ncreases efficiencies in reducing product%ncreases efficiencies in reducing product

design life cycles* minimiing e=cessdesign life cycles* minimiing e=cess

in)entory* forecasting demand* andin)entory* forecasting demand* and

keeping partners and customers informedkeeping partners and customers informed

#ollaborati)e #ommerce

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%$":0$% 5D#$%O' 0- D'%"'' 9:O#"''"'

9ri)ate %ndustrial etworks9ri)ate %ndustrial etworks

• Web6enabled networksWeb6enabled networks

• 3ink systems of multiple firms in an3ink systems of multiple firms in anindustryindustry

• #oordinate transorganiational business#oordinate transorganiational businessprocessesprocesses

%ndustrial etworks



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• Within the business,Within the business, $here are functions*$here are functions*each ha)ing its uses of information systemseach ha)ing its uses of information systems

• Outside the organiationKs boundaries,Outside the organiationKs boundaries, $here are customers and )endors$here are customers and )endors

5unctions tend to work in isolation5unctions tend to work in isolation


$raditional &iew of the 'ystems

%$":0$% 5D#$%O' 0- D'%"'' 9:O#"''"'



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• 5irm structure and organiation,5irm structure and organiation, OneOneorganiationorganiation

• /anagement,/anagement, 5irm6wide knowledge6based5irm6wide knowledge6basedmanagement processesmanagement processes

• $echnology,$echnology, Dnified platformDnified platform

• usiness,usiness, /ore efficient operations and/ore efficient operations andcustomer6dri)en business processescustomer6dri)en business processes


enefits of "nterprise 'ystems

%$":0$% 5D#$%O' 0- D'%"'' 9:O#"''"'



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• -ifficult to build,-ifficult to build, :eFuire fundamental:eFuire fundamentalchanges in the way the business operateschanges in the way the business operates

• $echnology,$echnology, :eFuire comple= pieces of:eFuire comple= pieces ofsoftware and large in)estments of time* money*software and large in)estments of time* money*and e=pertiseand e=pertise

• #entralied organiational coordination#entralied organiational coordinationand decision making,and decision making, ot the best way forot the best way forthe firms to operatethe firms to operate


#hallenges of "nterprise 'ystems

%$":0$% 5D#$%O' 0- D'%"'' 9:O#"''"'



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5our main ways of organiing businesses5our main ways of organiing businesses

internationally,internationally,

• -omestic "=porter,-omestic "=porter, Hea)y centraliation ofHea)y centraliation ofcorporate acti)ities in the home country of origincorporate acti)ities in the home country of origin

• /ultinational,/ultinational, 5inancial management and5inancial management andcontrol out of a central home base* production*control out of a central home base* production*sales and marketing operations decentraliedsales and marketing operations decentralied


%$":0$%O03 %5O:/0$%O '8'$"/'

5orms of lobal usiness Organiation



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• 5ranchiser,5ranchiser, 9roduct created* designed*9roduct created* designed*financed* and produced in the home country*financed* and produced in the home country*relies on foreign personnel for production*relies on foreign personnel for production*

marketing and human resourcesmarketing and human resources

• $ransnational,$ransnational, o national headFuartersLo national headFuartersL)alue6added acti)ities managed from a global)alue6added acti)ities managed from a global

perspecti)e* no reference to national borders*perspecti)e* no reference to national borders*sources of supply and demand and localsources of supply and demand and localcompetiti)e ad)antage optimiedcompetiti)e ad)antage optimied


%$":0$%O03 %5O:/0$%O '8'$"/'

5orms of lobal usiness Organiation



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5our types of system configuration,5our types of system configuration,

• #entralied 'ystems#entralied 'ystems

• -uplicated 'ystems-uplicated 'ystems

•-ecentralied 'ystems-ecentralied 'ystems

• etworked 'ystemsetworked 'ystems


%$":0$%O03 %5O:/0$%O '8'$"/'

lobal 'ystem #onfiguration



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3

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SYSTEMS IN THESYSTEMS IN THE

ENTERPRISEENTERPRISE

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chapter 03 -mis as business management function.ppt

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