Management Information System

E-Business & Collaboration using Information Technology

 Our Team Layout
Ashutosh Baindoor - MFM

Nitesh Mahtani - MFM

Akansh Parwani - MFM

Faizan Shaikh - MMM Nishit Parmar - MFM

Hitesh Rathod - MMM Sanjana Sharma - MMM

 Global E-business and Collaboration

1 Introduction To E-
business
SECTION 1
OUTLINE 2 Case Study 1 - Telus
Embraces Social Learning

3 Case Study 2 - Schiphol

International Hub
 What is E-Business?
• E- Business is the term used to describe using the
internet to operate your business.

• E-Business represents only a fraction of worldwide

business, but is one of the fastest growing sector &
provides entrepreneurs with excellent opportunities
to enter the market.

• The rate of globalization has been significantly

impacted by the internet, making it easier for
people & organizations separated by distance to
communicate & interact with each other.
CASE 1: TELUS EMBRACES SOCIAL LEARNING
• TELUS is a Canadian telecommunications company. It’s goals is to ensure
that every Canadian is connected to the rest of the world, whether that
connection is through wireless devices, the Internet, television, or
traditional telephone lines. The company has 12.7 million customer
accounts.
• Management believes that good teamwork and employee learning are
vital for achieving this goal. Until recently, most employee learning at
TELUS took place in formal classroom settings outside the company.
• It also needed to find a way to capture and preserve employee
knowledge and expertise as 40 percent of its workforce neared
retirement age.
IMPLEMENTING MICROSOFT SHAREPOINY
SERVER 2010:
• TELUS introduced Microsoft SharePoint Server 2010, which provides team
members with a single point of entry to shared knowledge within the company
and the ability to search all the company’s learning assets simultaneously.

• Team members are able to see their positions and those of others in the
organizational hierarchy, connect with colleagues, and establish informal
groups with other people with similar skills. An Expert Search capability
provides ranked search results identifying TELUS employees with expertise in
specific areas.

• The new SharePoint system gives TELUS team members much faster access to
the specific skills and knowledge areas where they need help—they don’t need
to wait for the next formal learning class.
OUTCOME OF SHIFT FROM FORMAL LEARNING TOACQUIRING
KNOWLEDGE THROUGH EMPLOYEE COLLABORATION &
PARTICIPATION
• The new SharePoint system gives TELUS team members much faster access to the
specific skills and knowledge. Team members can immediately reach out to
colleagues who have expertise in a specific area, or they can read wikis and blogs,
watch videos, and participate in discussions to find answers.

• Implementing SharePoint reduced the TELUS learning budget from $28.5 to $21
million & further cost savings will occur as the new learning solutions take hold.

• The company implemented Microsoft SharePoint Server 2010 as a company-wide

platform for collaboration, knowledge acquisition, and knowledge transfer, and it
took advantage of the software’s new “social” tools to facilitate employee
collaboration and engagement.
Case 2 : SCHIPHOL INTERNATIONAL HUB

Schiphol International Airport in Amsterdam is one of the biggest airport hubs and busiest in t
he world.
Schiphol is trying to increase the revenue stream by optimizing the customer experience whil
e reducing cost per baggage and passengers wait time.
Key problem and business impact on revenue :

Problem Business Impact

Baggage handling : Loss of $2.5 billion eX`very year due to mishandling of bagga
ge and which annually effects 51 million passengers at this air
port.
No interconnected and intelligent syste Old and outdated baggage conveyors network and human int
m: ervention resulted in mishandling of baggage at security chec
ks and moving of baggage from gate to gate.
Increase efficiency in baggage handlin With the new system the management estimates this system
g: operates 99.9% of times while being able to minimize loss
and damage to 0.01%. If implemented successfully it can
save 0.1% of $2.5 billion.
 Realize a
monumental
1% Reduce cost per bag
maximum loss of Increase capacity from 40 without increasing wait
transfer baggage to 70 million bags time.
(against
the initial 22
million lost
baggage.
 Solution
In 2004, IBM Corporation, Vanderlande Industries and later Grenzebach Automation Syste
ms, jointly took up the challenge of renewing the Baggage Control System. Some of the adv
ance technology used in baggage handling systems includes -
Destination Coded Vehicles RFID tags Automatic high- tech conveyors
(DCV’s) bar code
scanners

 DCVs are unmanned carts that
can load and unload bags
without stopping movement.
These carts move on tracks like
miniature roller coasters along
the main “highway” tracks that
span the airport.
 Keeps track of the  Scanning of  Can optimize the route
location of each bag, bags once they taken by the carts to
its destination and the reach the gate. get the bags needed
time it is needed at most urgently to the
that destination. To destination fastest.
make sure the
baggage is not lost the
systems “reconciles”
baggage with its
owner.
 Operation Summary
Customer reaches the check-in desk and the bags are tagged.
The tag contains your flight information and a bar-code/RFID that the computers in the
baggage handling system can read.
When computers in the system scan the information it contains and determines where to
send the bag.
After being scanned (at least) once, the system always knows where your bag is at any
point, and is able to redirect it based on three parameters: (a) time of its flight; (b) priority;
(c) size.
Bags for immediate embarkation are considered “hot”. These are sent immediately to
aircraft stands while “cold” baggage (i.e. low priority, distant flight time) are quickly
rerouted away from the main “highway” tracks, directed towards various storage points in
the network.
DCVs are unmanned carts that can load and unload bags without stopping movement.
These carts move on tracks like miniature roller coasters along the main “highway” tracks
that span the airport.
Computers throughout the system keep track of the location of each bag, its destination,
and the time it is needed at that destination.
 Global E-business and Collaboration

1 BUSINESS PROCESSES AND

INFORMATION SYSTEMS

SECTION 2 2 TYPES OF INFORMATION

SYSTEMS
SYSTEMS FOR
OUTLINE 3 COLLABORATION AND SOCIAL
BUSINESS

4 THE INFORMATION SYSTEMS

FUNCTION IN BUSINESS
 What are business processes? How are they
related to information systems?
• In order to operate, businesses must deal with many different pieces of information about suppliers,
customers, employees, invoices, and payments, and of course their products and services.
• They must organize work activities that use this information to operate efficiently and enhance the overall
performance of the firm.
• Information systems make it possible for firms to manage all their information, make better decisions, and
improve the execution of their business processes.
 Business Processes
Activities are supported by
Collection of activities required
flows of material, information,
to produce a product or
and knowledge among the
service.
participants
Also refer to the unique ways
in which organizations
coordinate work, information,
and knowledge, and the ways
in which management chooses
to coordinate work.
 Examples of Functional Business Processes
FUNCTIONAL AREA
Manufacturing and production
Sales and marketing
Finance and accounting
Human resources
BUSINESS PROCESS
Assembling the product
Checking for quality
Producing bills of materials
Identifying customers
Making customers aware of the product
Selling the product
Paying creditors
Creating financial statements
Managing cash accounts
Hiring employees
Evaluating employees’ job performance
Enrolling employees in benefits plans
 The Order Fulfillment Process
To have an efficiency in fulfillment proc
ess required:
Information technology enhances busin
ess processes in two main ways:
 Increasing efficiency of existing pro
cesses
• Automating steps that were
manual
 Enabling entirely new processes th
at are capable of transforming the
businesses
• Change flow of information
• Replace sequential steps with
parallel steps
• Eliminate delays in decision
making
Fulfilling a customer order involves a complex set of steps that requir
es the close coordination of the sales, accounting, and manufacturing
functions.
 Types of Information Systems
SYSTEMS FOR DIFFERENT MANAGEMENT GROUPS

Transaction Processing Systems: (TPS)

 Perform and record daily routine transactions necessary to conduct business

Examples: sales order entry, payroll, shipping
 Allow managers to monitor status of operations and relations with external environment
 Serve operational levels
 Serve predefined, structured goals and decision making
 A PAYROLL TPS
A TPS for payroll processing captures
employee payment transaction data (
such as a time card).
System outputs include online and ha
rd-copy reports for management and
employee paychecks.
How do systems serve the different management groups in a busi
ness?
Is a contemporary term for data and software tools for organizing, analyzing, and providing access to data to help
managers and other enterprise users make more informed decisions.

• Management information systems

 Management information systems (MIS) summarizes and reports on the company's basic operations us
ing data supplied by transaction processing systems.
 The basic transaction data from TPS are compressed and usually presented in reports that are produce
d on a regular schedule.
• Today, many of these reports are delivered online. In contrast, decision-support syste
ms (DSS) support more non-routine decision making.
 They focus on problems that are unique and rapidly changing, for which the procedure for arriving at a s
olution may not be fully predefined in advance. Business intelligence is a contemporary term for data a
nd software tools for organizing, analyzing, and providing access to data to help managers and other en
terprise users make more informed decisions.
 How Management Information Systems Obtain Their Data from the Organization’s TPS

In the system illustrated by this diagram, three TPS supply summarized transaction data to the MIS reporting system
at the end of the time period. Managers gain access to the organizational data through the MIS, which provides them
with the appropriate reports
 Sample MIS Report

• This report, showing summarized annual sales data, was produced by the MIS.
VOYAGE-ESTIMATING DECISION-SUPPORT SYSTEM

This DSS operates on a powerful PC. It is used daily by managers who must develop bids on shipping
contracts.
Executive support systems (ESS)

• help senior management make these decisions.

• A digital dashboard displays on a single screen graphs and charts of key performance indicators for managing a
company.
• Digital dashboards are becoming an increasingly popular tool for management decision makers.

• ESS are designed to incorporate data about external events, such as new tax laws or competitors, but they also
draw summarized information from internal MIS and DSS.

• Example: Digital dashboard with real-time view of firm’s financial performance: working capital, accounts recei
vable, accounts payable, cash flow, and inventory
How do systems that link the enterprise improve orga
nizational performance?
Enterprise Applications
• Enterprise applications which are systems that span functional areas, focus on executing business processes ac
ross the business firm, and include all levels of management.
• Enterprise applications help businesses become more flexible and productive by coordinating their business pr
ocesses more closely and integrating groups of processes so they focus on efficient management of resources a
nd customer service.

Enterprise Systems Firms

• Enterprise Systems Firms use enterprise systems, also know as enterprise resource planning (ERP) systems,
• To integrate business processes in manufacturing and production, finance and accounting, sales and marketing
, and human resources into a single software system. Supply Chain Management Systems Frims use supply chai
n management (SCM) systems to help manage relationships with their suppliers.
• Customer Relationship Management Systems Firms use customer relationship management (CRM) systems to
help manage their relationships with their customers.
• Knowledge Management Systems (KMS) enable organizations to better manage processes for capturing and ap
plying knowledge and expertise.
 ENTERPRISE APPLICATION ARCHITECTURE

Enterprise applications automate process

es that span multiple business functions a
nd organizational levels and may extend o
utside the organization.
 Intranets and Extranets:

Alternative tools that increase integration and expedite the flow of information
• Intranets:
 Internal company Web sites accessible only by employees.

Internet:

A public network linking organization and other external networks.

• Extranets:

 Company Web sites accessible externally only to vendors and suppliers

 Often used to coordinate supply chain

 Why are systems for collaboration and social business so important a
nd what technologies do they use?
Collaboration:
• Collaboration is working with others to achieve shared and explicit goals.
• Collaboration focuses on task or mission accomplishment and usually takes place in a business, or other organiz
ation, and between businesses.
• Collaboration can be short-lived, lasting a few minutes, or longer term, depending on the nature of the task and
the relationship among participants.
• Collaboration can be one-to-one or many-to-many.

• Teams have a specific mission that someone in the business assigned to them. They have a job to complete. Tea
ms are often short-lived, depending on the problems they tackle and the length of time needed to find a solutio
n and accomplish the mission.

Importance of Collaboration:
• Changing nature of work.
• Growth of professional work.
• Changing organization of the firm.
• Changing scope of the firm.
• Emphasis on innovation
• Changing culture of work and busi
ness.
Systems for Collaboration and Social Business
Successful collaboration requires an appropriat
e organizational structure and culture, along wi
th appropriate collaboration technology
Tools and Technologies for Collaboration and Teamwork

Fifteen Categories of Collaborative Software Tools

E-mail and instant messaging White boarding
Collaborative writing Web presenting
Collaborative reviewing/editing Work scheduling
Event scheduling Document sharing (including wikis)
File sharing Mind mapping
Screen sharing Large audience Webinars
Audio conferencing Co-browsing
Video conferencing
 Collaboration and Social Business Platforms

Virtual Meeting Systems:

In an effort to reduce travel expenses, many companies, both large and small, are adopting videoconferencing an
d Web conferencing technologies.

Google Apps/Google Sites and Cloud Collaboration Services:

GOOGLE APPS/GOOGLE SITES COLLABORATION FEATURES
Checklist for Managers: Evaluating and Selecting Collaboration and Social Software
Tools
With so many collaboration tools and services available, how do you choose the right collaboration technology f
or your firm? To answer this question, you need a framework for understanding just what problems these tools a
re designed to solve. One framework that has been helpful for us to talk about collaboration tools is the time/sp
ace collaboration matrix developed in the early 1990s by a number of collaborative work scholars.

Two dimensions of collaboration technologies

Space (or location) – remote or colocated
Time – synchronous or asynchronous
Six steps in evaluating software tools
1.What are your firm’s collaboration challenges?
2.What kinds of solutions are available?
3.Analyze available products’ cost and benefits
4.Evaluate security risks
5.Consult users for implementation and training issues
6.Evaluate product vendors
The Time/Space Collaboration Tool Matrix

Collaboration and social tec

hnologies can be classified i
n terms of whether they su
pport interaction
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 servi
ces. It is responsible for maintaining the hardware, software, data storage, and networks that comprise the firm's I
T infrastructure.

the information systems department is headed by a chief information officer (CIO) who oversees the use of informati
on technology in the firm.

The chief security officer (CSO) is in charge of information systems security for the firm and is responsible for enforci
ng the firm's information security policy.

A chief privacy officer (CPO) is responsible for ensuring that the company complies with existing data privacy laws.

The chief knowledge officer (CKO) is responsible for the firm's knowledge management program who helps design pr
ograms and systems to find new sources of knowledge or to make better use of existing knowledge in organizational
and management processes.
The Information Systems Functions in Business

Programmers are highly trained technical specialists who write the software instructions for computers.

Systems analysts constitute the principal liaisons between the information systems groups and the rest of the organiz
ation.

Information systems managers are leaders of teams of programmers and analysts, project managers, physical facility
managers, telecommunications managers, or database specialists.

End users are representatives of departments outside of the information systems group for whom applications are de
veloped.
 Organizing The Information Systems Function

• There are many types of business firms, and there are many ways in which the IT function is organized within th
e firm.

• The question of how the information systems department should be organized is part of the larger issue of IT go
vernance.

• IT governance includes the strategy and policies for using information technology within an organization.

• It specifies the decision rights and framework for accountability to ensure that the use of information technolog
y supports the organization's strategies and objectives.