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Chapter 2 Global E-business and Collaboration 101

Review Summary

1. What are business processes? How are they related to information systems?
A business process is a logically related set of activities that defines how specific business tasks are
performed, and it represents a unique way in which an organization coordinates work, information,
and knowledge. Managers need to pay attention to business processes because they determine how
well the organization can execute its business, and they may be a source of strategic advantage. There
are business processes specific to each of the major business functions, but many business processes
are cross-functional. Information systems automate parts of business processes, and they can help
organizations redesign and streamline these processes.

2. How do systems serve the different management groups in a business?
Systems serving operational management are transaction processing systems (TPS), such as payroll
or order processing, that track the flow of the daily routine transactions necessary to conduct business.
Management information systems (MIS) produce reports serving middle management by condensing
information from TPS, and these are not highly analytical. Decision-support systems (DSS) support
management decisions that are unique and rapidly changing using advanced analytical models. All of
these types of systems provide business intelligence that helps managers and enterprise employees
make more informed decisions. These systems for business intelligence serve multiple levels of
management, and include executive support systems (ESS) for senior management that provide data
in the form of graphs, charts, and dashboards delivered via portals using many sources of internal and
external information.

3. How do systems that link the enterprise improve organizational performance?
Enterprise applications are designed to coordinate multiple functions and business processes.
Enterprise systems integrate the key internal business processes of a firm into a single software system
to improve coordination and decision making. Supply chain management systems help the firm
manage its relationship with suppliers to optimize the planning, sourcing, manufacturing, and delivery
of products and services. Customer relationship management (CRM) systems coordinate the business
processes surrounding the firm’s customers. Knowledge management systems enable firms to optimize
the creation, sharing, and distribution of knowledge. Intranets and extranets are private corporate
networks based on Internet technology that assemble information from disparate systems. Extranets
make portions of private corporate intranets available to outsiders.

4. Why are systems for collaboration and social business so important and what technologies do they use?
Collaboration is working with others to achieve shared and explicit goals. Social business is the use
of internal and external social networking platforms to engage employees, customers, and suppliers,
and it can enhance collaborative work. Collaboration and social business have become increasingly
important in business because of globalization, the decentralization of decision making, and growth in
jobs where interaction is the primary value-adding activity. Collaboration and social business enhance
innovation, productivity, quality, and customer service. Tools for collaboration and social business
include e-mail and instant messaging, wikis, virtual meeting systems, virtual worlds, cyberlockers,
collaboration platforms such as Google Sites/Google Apps, Microsoft SharePoint, and Lotus Notes, and
enterprise social networking tools such as Chatter, Yammer, Jive, and IBM Connections.

5. What is the role of the information systems function in a business?
The information systems department is the formal organizational unit responsible for information
technology services. It is responsible for maintaining the hardware, software, data storage, and
networks that comprise the firm’s IT infrastructure. The department consists of specialists, such as
programmers, systems analysts, project leaders, and information systems managers, and is often
headed by a CIO.

MIS_13_Ch_02_Global.indd 101 1/18/2013 10:13:49 AM