E Business:

9
An Introduction and
Overview
9
 Data vs. Information
•Data consists of raw facts (i.e., a list of the numbers)
•Information is a collection of facts organized (or processed) in
9 such a way that they have additional value (i.e., a list of the
class grades based on the exam score
–In a way, information is data that has been transformed
into a more useful form
–Turning data into information is a process performed to
achieve a defined outcome and requires knowledge
 M1: Managing the Digital Firm (cont)

Hierarchy of Information

_______________________________________________________

Intelligence
9
_______________________________________________________ Charts

Knowledge

Information

Data & Infor

9
 Example (1): A Bank Statement
● 250 is DATA (because this figure is
meaningless when out of context)
9 ● Rs 250 on a bank statement is
INFORMATION because it is meaningful.
● "If I only have Rs 250 in my bank account, I
haven't got enough money to pay my bills" is
KNOWLEDGE
● “If you have more money you can pay more
bills-Principle”is INTELLIGENCE
Information
Systems & MIS
Information: The Good Kind
and the Other Kind
● Information
Module

9
A overload
● Valuable
information
● Information
reduction
Not all information is valuable, and all
too often, we’re overwhelmed with more
information than we can use.
9
9
9
 Putting Things in Context - I
● Information Technology - the hardware, software,
and networks that make Information Systems
9 possible.
● Information System - a system that uses
information technology to capture, transmit, store,
retrieve, manipulate, and display information.
● Business process - a related group of steps or
activities that use people, information, and other
resources, to create value for internal or external
customers.
 Putting Things in Context - II
● Firm (or organization) - consists of a large number
of interdependent business processes that work
9 together to generate products of services in a
business environment.
● Business environment - includes the firm and
everything else that affects its success, such as
competitors, suppliers, customers, regulatory
agencies, and demographic, social, and economic
conditions.
Putting Things in Context – The Picture
9
Information
Systems & MIS
Understanding Complex
Organizations: The Power Pyramid
● Functional divisions of an
Module

9
A organization
➤finance
➤marketing & sales
➤human resources
➤operation
➤information systems
 IS and Organisations
The Organisation and its Environment

9
 Information Systems
Personnel

9
 Major Roles of Information
Systems
Support of
Strategic
9 Advantage

Support of
Managerial
Decision Making

Support of
Business Operations
 History of the role of
Information Systems
1950-1960 1960-1970 1970-1980 1980-1990 1990-2000

Data Management Decision Strategic & Electronic

Processing Reporting Support End User Commerce

9
Electronic
Data Management
Processing Information
- TPS Decision
Systems
Support
Systems End User
- Ad hoc Computing
Reports Exec Info Sys Electronic
Expert Systems Business &
SIS Commerce
-Internetworked
E-Business &
Commerce
 Types of Information Systems
● Transaction Processing Systems (TPS).
● Management Information Systems (MIS).
● Decision Support Systems (DSS).
● Expert Systems (ES).
9
● Executive Information Systems (EIS).
● Office Automation Systems (including document
management systems).
● E-Commerce
● ERP(Enteprise Resourse Managament)
● CRM(Customer Relationship Management)
● M-Commerce
● and much more ….
 E-BUSINESS

EB = EC + BI + CRM + m Comm
+ERP
9
E-Commerce

Business Intelligence

Customer Relationship Management

E-Business =
Mobile Commerce

Enterprise Resource Planning

 EC Definitions & Concepts
● Electronic Commerce (EC) is the process of
buying, selling, or exchanging products, services,
9 and information via computer networks
● EC defined from these perspectives
– Communications
– Business process
– Service
– Online
– Collaborations
– Community
22
 EC Definitions & Concepts
(cont.)
● E-business is a broader definition of EC that
9 includes not just the buying and selling of
goods and services, but also
– Servicing customers
– Collaborating with business partners
– Conducting electronic transactions within an
organization

23
 ERP - Definition
Enterprise Resource Planning

“Software solution that addresses the

Enterprise needs, taking a process view of
9
the overall organization to meet the goals,
by tightly integrating all functions and
under a common software platform”
 Evolution of ERP
Enterprise Resource Planning

1960’s - Systems Just for Inventory Control

1970’s - MRP – Material Requirement Planning
9 (Inventory with material planning & procurement)
1980’s - MRP II – Manufacturing Resources Planning
(Extended MRP to shop floor & distribution Mgnt.)
Mid 1990’s - ERP – Enterprise Resource Planning
(Covering all the activities of an Enterprise)
2000 onwards – ERP II – Collaborative Commerce
(Extending ERP to external business entities)
 ERP – Expectations
Enterprise Resource Planning

Integrating all the functions

Integrating the systems running in all the locations

9
Transparency of information using a single
data source across the organization

Software must be responsive

Modular
Flexible
Easy to add functionalities
Provide growth path
 Major Suppliers

9
 EC Definitions & Concepts
● Electronic Commerce (EC) is the process of buying,
selling, or exchanging products, services, and
9
information via computer networks
● EC defined from these perspectives
– Communications
– Business process
– Service
– Online
– Collaborations
– Community
 Mobile Commerce: Overview
● Mobile commerce (m-commerce,
9 m-business)—any e-commerce done in a
wireless environment, especially via the
Internet
– Can be done via the Internet, private
communication lines, smart cards, etc.
– Creates opportunity to deliver new services to
existing customers and to attract new ones