e commerce (l6)

8/3/2019 E Commerce (L6)

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BBABBA

EE--CommerceCommerce

Week 6:Week 6:

The EThe E--Commerce PlatformCommerce Platform


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Management Information Systems

Management Information Systems (MIS) is the term given to thediscipline focused on the integration of computer systems with the aimsand objectives on an organisation.

When information systems are designed to provide information neededfor effective decision making by managers, they are called managementinformation systems.

MIS is a formal system for providing management with accurate andtimely information necessary for decision making.

An MIS is a subset of the overall internal controlsof a business covering the application of people,

documents, technologies, and procedures bymanagement accountants to solving businessproblems such as costing a product, service or abusiness-wide strategy.


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Management Information Systems

Academically, the term MIS iscommonly used to refer to thegroup of information managementmethodstied to the automation orsupport of human decisionmaking. Examples are, DecisionSupport Systems, Expert

systems, and Executiveinformation systems.

MIS make use of a knowledgebasewhich is a special kind ofdatabase used for knowledgemanagement. It provides themeans for the computerizedcollection, organization, andretrieval of knowledge.


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History of MIS

In their infancy, business computers wereused for the practical business of computingthe payroll and keeping track of accountspayable and accounts receivable.

As applications were developed that providedmanagers with information about sales,

inventories, and other data that would help inmanaging the enterprise, the term "MIS"arose to describe these kinds of applications.

For Example, a car manufacturer has toperform certain manufacturing activities. Itmust decide on:

how many and what type of cars to make nextmonth, or

what commissions to offer retailers, or what pumping stations to install in the next five

years.


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MIS vs. Information Systems

The terms MISand information systemare oftenconfused. Information systems include systems thatare not intended for decision making. The area ofstudy called MIS is sometimes referred to, in arestrictive sense, as information technologymanagement.

Management information systems are distinct fromregular information systems in that they are used toanalyze other information systems applied inoperational activities in the organization.

MIS has also some differences with Enterprise

Resource Planning (ERP) as ERP incorporateselements that are not necessarily focused ondecision support.


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Advantages of MIS

1. Improves Quality: MIS provides relevant information to the

managers with a total overall view of the organization to assesswhere they might be lacking.

2. Minimizes Information Overload: MIS change large volumes ofdata into summarized forms and thereby avoid over complexity.

3. Encourages Decentralization: Decentralization of authority is

possible when there are systems for monitoring activities &performances at lower levels.

4. Improves Coordination: By keeping each department aware ofthe problems/requirements of the other, an MIS facilities jointplanning via connecting all decision centres within theorganization.

5. Easier Control: Links managerial planning and control. Itimproves the ability of management to evaluate and improveperformances.

6. Staying Focused: Due to increase in the size and complexity oforganizations, managers often lose sight of overall companyobjectives. MIS help overcome that problem by presentingmanagers with the bigger picture.


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Enterprise Resource Planning

Enterprise resource planning (ERP) is acompany-wide computer software system usedto manage and coordinate all the resources,information, and functions of a business fromshared data stores.

An ERP system has a service-orientedarchitecture with modular hardware andsoftware units or "services" that communicateon a local area network.

The modular design allows a business to add

or reconfigure modules (perhaps from differentvendors) while preserving data integrity in oneshared database that may be centralized ordistributed.


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ERP Modules

Examples of modules in an ERP which formerly would havebeen stand-alone applications include:

Product lifecycle management

Supply chain management (e.g. Purchasing, Manufacturing andDistribution)

Warehouse Management Customer Relationship Management (CRM)

Sales Order Processing

Online Sales

Financials

Human Resources

Decision Support System

Controls

Access Controls

Customization Controls


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Enterprise Resource Planning


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ERP Disadvantages

1. Re-engineering of business processes to fit the "industry standard"prescribed by the ERP system may lead to a loss of competitiveadvantage.

2. ERPs are often seen as too rigid and too difficult to adapt to thespecific workflow and business process of some companiesthis is

cited as one of the main causes of their failure.

3. Some large organizations may have multiple departments withseparate, independent resources, missions, chains-of-command,etc, and consolidation into a single enterprise may yield limitedbenefits.

4. The system may be too complex measured against the actualneeds of the customers.

5. ERP Systems centralize the data in one place. This can increase

the risk of loss of sensitive information in the event of a securitybreach.


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ERP Software Packages

mySAP and SAP R/3 fromSAP

Microsoft Dynamics (AX, GP,NAV, SL) from Microsoft

PeopleSoft and Oracle e-Business Suite from Oracle

Accpac and SAGE ERP fromThe Sage Group


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Building an E-commerce Site:A Systematic Approach

Two most important managementchallenges in building asuccessful e-commerce site are:

Developing a clear understanding ofbusiness objectives

Knowing how to choose the righttechnology to achieve thoseobjectives


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Pieces of the Site-Building Puzzle

Main areas where you will needto make decisions in building asite include:

Human resources andorganizational capabilities creating a team that has the skillset to build and manage asuccessful site

Hardware

Software

Telecommunications

Site design


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Pieces of the E-commerceSite-Building Puzzle


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The Systems Development Life Cycle

Systems Development Life Cycle(SDLC) is a methodology forunderstanding the businessobjectives of a system anddesigning an appropriate solution

Five major steps in the SDLC are: Systems analysis/planning Systems design Building the system

(Development) Testing Implementation


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Systems Development Life Cycle


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System Analysis/Planning:

Identifying Business Objectives, System Functionality &Information Requirements

Business objectives: a list ofcapabilities you want your site to have

System functionalities: a list of the

types of information system capabilitiesyou will need to achieve your businessobjectives

Information requirements: theinformation elements that the systemmust produce in order to achieve thebusiness objectives

e commerce (l6)

Documents