Term Knowledge-Creating Company Definition Exploit two kinds of knowledge. This changes the work flow of an organization: Supply chain management systems help businesses manage relationships with their suppliers. Virtual company is an organization that uses information technology to link people, organizations, ideas and assets. Important business processes typically span several different functional areas or divisions in a business. Examples include what vessels to send to particular destinations to maximize profit, the optimal loading pattern for cargo, and the optimal rate at which vessels should travel to maximize efficiency while still meeting their schedules, and so forth. Different levels in a business firm: A business firm is divided into different levels according to the work to be done. It runs as per the instructions provided by us.
Through the use of information technology all the process of business can be brought together in a systematic structure, each process facilitating another process for efficient and effective results. They have limited analytical capabilities but can draw on sophisticated graphics software and many sources of internal and external information. Ask students for examples of firm knowledge; for instance, the knowledge required to run a fast food restaurant, or the knowledge required to operate a Web site like Amazon. Have students any experience of poor collaboration? Features of business and their importance in information systems Business and its functions: A business is a formal complex organization which produces products or services for its profit. Place and nature of product is very important to consider in order implementing best information technology to implement in order to get the competitive advantage. Term Strategic Information Systems Definition Information systems that provide a firm with competitive products and services that give it a strategic advantage over its competitors in the marketplace. Term Operational Level Definition employees develop business activities to run the day-to-day operations.
They are essentially password protected Web sites. Using e-business and e-commerce applications to gain a competitive advantage is a very good idea. If an organizations registers its site in an internet and informs all its concerned bodies about the registration, providing them the instructions to enter into it. You could ask students to recall and describe the different levels of management in a business, intranets, and business processes using information from the previous chapter. It must have knowledge of new technologies, and must respond to change in the global business environment. Term slice-and-dice Definition ability to look at information from different perspectives Term Strategic level Definition managers develop overall business strategies, goals, and objectives as part of the company's strategic plan.
However, it soon became apparent that many of the problems information systems set out to solve shared certain characteristics. Some are new — like enterprise wide systems. Term Benchmarking Definition The process of continuously measuring system results, comparing those results to benchmarks, and identifying steps to improve system performance. Generally, no one has enough time and often key people are not in the right place. Such systems are usually interactive and are used to solve un-structured problems.
Also, information systems that promote business innovation, improve business processes, and build strategic information resources for a firm. You could ask students to offer reasons why it might be difficult to do this. It becomes very hard for manufacturing department to learn about every other aspect, from marketing to service. Term Value Chain Definition Viewing a firm as a series, chain, or network of basic activities that adds value to its products and services and thus adds a margin of value to the firm. Actully, all the sources of competitive advantage are linked with each other.
Customer relationship management systems enable a business to better manage its relationships with existing and potential customers. These systems are a necessity for any business. If others follow our current technology to imitate we can always go for the advancement and develop something new. Enterprise applications, such as enterprise systems, supply chain management systems, customer relationship management systems, and knowledge management systems are designed to support organization-wide process coordination and integration so that the organization can operate efficiently. Middle management: These carry out the program and plans of senior management. Term Benchmarks Definition Baseline values the system need to attain Term bottlenecks Definition occur when resources reach full capacity and cannot handle any additional demands.
Ask students if they can name any other business processes that have been transformed in the last few years. Term Managerial level Definition employees evaluate company operations to hone the firm's ability to identify and leverage change. They need operational-level information, such as the number of hours worked a particular day by each employee. There are four major types of information systems in contemporary organizations serving operational, middle, and senior management. There are several brands of iPods but apple is the synonym to it. Consult users for implementation and training issues 6.
Enterprise systems integrate the key internal business processes of a firm into a single software system so that information can flow throughout the organization, improve coordination, efficiency, and decision making. Information technology plays major role in Business Process Reengineering. However, they soon realized that in order to do this, it was first necessary to be able to define how and where the information system would be used and why it was needed. If management understands the technology and provide instructions of operation as per the nature of technology in a right place and right time then the technology becomes useful, if not technology becomes failure. Term Sensitivity analysis Definition what is the impact on other variables when one variable is changed. In a constituency perspective, systems are distinguished on the basis of who uses the system— operational managers, middle management, senior management. A very small company will not have a formal information systems group.
With the growth of the Web, potential customers can easily comparison shop for retail and wholesale goods and even raw materials, so treating customers better has become very important. The information in such systems is often un-structured and comes from both internal and external sources. The key problems are time and location. Ask students to give examples of how collaboration can improve productivity, product quality, and customer service. There is nothing like one is important and another is less important. Firms can become more flexible and efficient by coordinating their business processes closely, and, in some cases, integrating these processes so they are focused on efficient management of resources and customer service. Are there any disadvantages to collaboration? The triangle represents the organization, with different colors for the four main business functions.
Distinguish these individual tools from Internet-based collaboration environments, which are suites of collected collaboration tools, enabling communication and data-sharing between tools. Term Project Definition temporary activity a company undertakes to create a unique product. Are there any businesses or business functions that benefit by less collaboration? Some of the concepts were introduced in Chapter 1. One source supports the existence of other. Term Model Definition a simplified representation or reality.