BUSINESS AND COLLABORATION

Business and Collaboration

Businesses must deal with a variety of data regarding their suppliers, clients, workers, invoices, payments, and of course, their goods and services. Businesses can manage all of their information, make better decisions, and improve the way their business processes are carried out thanks to information systems.

Business Processes

• Material, idea, information, and knowledge flow processes.
• Activities and steps in sets
• may be connected to a functional area or to multiple functional areas.
• The term "business process" relates to how work is planned, executed, and managed to provide an excellent good or service.
• The effectiveness of a company enterprise is largely dependent on how successfully its planning and business procedures are created and coordinated.

Illustrative of effective business procedures

• Manufacturing and Production
  • Assembling the product, evaluating its quality, and creating material bills of las
• Sales and Marketing
  • Recognizing or identifying buyers, alerting customers to the product, and then actually selling the product
• Finance and Accounting
  • Maintaining cash accounts, making the necessary financial statements, and paying creditors
• Human Resources
  • Hiring, assessing work performance, efficiency, and improvements, and enrolling employees in merit-based benefits.

There are two ways that information technology improves corporate operations:

• Increasing Efficiency of Existing Processes
  • Automating previously laborious processes
• Enabling Entirely New Processes
  • Alter the order or flow of the information
  • Switch out the sequential stages for parallel ones.
  • Get rid of delays or holdups in decision-making
  • Support innovative business concepts

Types of Information Systems

• Transaction Processing System (TPS)
  • A system that keeps track of basic organizational activities and transactions, such as sales, receipts, cash deposits, payroll, etc., is necessary for operational managers.
  • A TPS's main job is to track, manage, approve, summarize, validate, and store transactions that occur across a variety of functional business domains.
  • To capture and process data or run a business, transaction processing activities are required.
  • TPS offers a range of information outputs for use both internally and externally, including modifications to organizational files and databases.
  • TPS offers the kinds of computerized information systems that carry out and keep track of the regular everyday transactions required for commercial operations.
  • Helps managers keep an eye on the state of internal operations and the relationship of the company to the outside world.
  • Serves to support coordinated, pre-determined goals and decision-making.

Management Information System (MIS)

• It is a category of information system that is used by middle management.
• The purpose of MIS is to inform key members of the organization's staff.
• It makes use of the TPS output of previously processed transaction data and produces informative reports after processing data. Sales information systems, marketing information systems, and personnel information systems are a few examples.
• Summary reports and exception reports are the products of MIS.
• The summary report compiles information from various transactions and summarizes the outcomes.
• Any variations from the anticipated output are described in an exception report.
• Based on data from TPS, MIS gives middle managers reports on the company's present performance, which are used to monitor, regulate, and predict future performance.
• It particularly benefits managers who are focused on weekly, monthly, and annual performance.
• It includes details on common inquiries that are addressed explicitly in advance and have a set response strategy.
• Typically has limited analytical skills

Decision Support System (DSS)

• Concentrate on issues that are distinct and evolving quickly.
• A set of well-integrated, user-friendly computer-based tools known as DSS can be used to assess and resolve semi-structured and unstructured situations by fusing data with different decision-making models.
• DSS is easily adaptable to satisfy the information needs of any decision setting.
• DSS offers the tools necessary for a quick response to an information request from a decision maker.
• Middle management is served by DSS.
• DSS facilitates unconventional decision-making

Example

What would happen to the production plan if sales in June doubled?

How would a delayed factory schedule affect our return on investment?

• The corporate database can be interfaced with using DSS.
• The DSS is not carried out in line with a previously established manufacturing schedule.
• DSS is adaptable enough to accommodate different management philosophies.
• DSS encourages and supports communication between decision-making levels.
• DSS essentially aids the IS at the intelligence phase, where the goal is to pinpoint the issue before moving on to the design stage to find a solution.
• Crafted to address both semi-structured and unstructured issues.
• Supports decision makers at all levels, but the tactical and strategic levels are where it excels.
• Gives the decision maker access to general-purpose models, simulation capabilities, and other analytical tools.
• It draws on internal data from TPS and MIS, and they frequently add data from outside sources as well, such the current stock price.
• Led by Models DSS
  • It consists of systems that use representation, optimization, and accounting models. It incorporates the decision maker's data and parameters into the analysis. The conventional what-if analysis is the main use for these systems. For instance, voyage estimating systems
• Data Driven DSS
  • A data driven DSS is the first generic type of DSS. This system utilizes a sizable amount of data from the TPS and MIS of the business. They can freely flow data but lack a theory or model. This system consists of an analytical system, data warehousing system, and management repair system. EIS and unique DSS Access to and manipulation of a sizable database of structured data, particularly a time series of internal company data and occasionally external data, are the main topics covered. Examples include marketing analysis systems from Intrawest and business intelligence.

Business Intelligence

• oSftware program category
• Analyze past and current data to spot patterns and trends and inform decisions.
• Utilized in management assistance systems for middle and senior management

Executive Support Systems (ESS)

• Gives senior management support
• Gives extended computing and communication capabilities that can be used in a variety of contexts.
• Focuses on non-routine judgments that call for insight, judgment, and evaluation
• Assimilate information from the internal MIS as well as the DSS, as well as data on external events (such as new tax laws or competitors).
• The financial performance of the company, including working capital, accounts receivable, accounts payable, cash flows, and inventory, is displayed in real time on a digital dashboard, for instance.

Reference

Laudon, Laudon, "Management Information Systems Managing the Digital Firm", twelfth edition