Slide 1Slide 2Slide 3Slide 4Slide 6Slide 7Slide 8Slide 9Slide 10Slide 11Slide 12Slide 13Slide 14Slide 15Slide 17Slide 18Slide 19Slide 20Slide 21Slide 22Slide 23Slide 24Slide 25Slide 26Slide 27Slide 28Slide 292.1© 2007 by Prentice Hall2Chapter E-Business: How E-Business: How Businesses Use Businesses Use Information SystemsInformation SystemsE-Business: How E-Business: How Businesses Use Businesses Use Information SystemsInformation Systems2.2© 2007 by Prentice HallSTUDENT OBJECTIVESEssentials of Business Information SystemsEssentials of Business Information SystemsChapter 2 E-Business: How Businesses Use Information SystemsChapter 2 E-Business: How Businesses Use Information Systems•Identify and describe the major features of a business that are important for understanding the role of information systems.•Describe the information systems supporting the major business functions: sales and marketing, manufacturing and production, finance and accounting, and human resources.•Evaluate the role played by systems serving the various levels of management in a business and their relationship to each other.2.3© 2007 by Prentice Hall•Explain how enterprise applications and intranets promote business process integration and improve organizational performance.•Assess the role of the information systems function in a business.STUDENT OBJECTIVES (Continued)Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 2 E-Business: How Businesses Use Information SystemsChapter 2 E-Business: How Businesses Use Information Systems2.4© 2007 by Prentice HallInformation Systems Help Kia Solve Its Quality Problems•Problem: High level of defects in product, new government requirements for reporting defects.•Solutions: Improve quality and monitor defects so that defects and quality problems are easily identified.•Infogain data repository and Clarify CRM system link results in reduced costs and increased sales.•Demonstrates IT’s role in centralizing data, interfacing with customers, and improving production processes.•Illustrates digital technology’s role in improved quality and lower rate of defects leading to customer satisfaction and repeat business.Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 2 E-Business: How Businesses Use Information SystemsChapter 2 E-Business: How Businesses Use Information Systems2.6© 2007 by Prentice HallComponents of a Business•Four basic business functions: manufacturing and Four basic business functions: manufacturing and production, sales and marketing, finance and production, sales and marketing, finance and accounting, and human resourcesaccounting, and human resources•Five basic business entities: suppliers, customers, Five basic business entities: suppliers, customers, employees, invoices/payments, and products and employees, invoices/payments, and products and servicesservices Organizing a Business: Basic Business Functions Organizing a Business: Basic Business Functions Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 2 E-Business: How Businesses Use Information SystemsChapter 2 E-Business: How Businesses Use Information SystemsA business is a formal organization that makes products or provides a service in order to make a profit.2.7© 2007 by Prentice Hall•What tasks does each employee perform, in what What tasks does each employee perform, in what order, and on what schedule?order, and on what schedule? •How are raw materials transformed into products?How are raw materials transformed into products?•How are orders fulfilled?How are orders fulfilled?•How are bills paid?How are bills paid?•How are products marketed?How are products marketed?•How are employees hired?How are employees hired? Business ProcessesBusiness ProcessesComponents of a BusinessEssentials of Business Information SystemsEssentials of Business Information SystemsChapter 2 E-Business: How Businesses Use Information SystemsChapter 2 E-Business: How Businesses Use Information Systems2.8© 2007 by Prentice HallFigure 2-2Fulfilling a customer order involves a complex set of steps that requires the close coordination of the sales, accounting, and manufacturing functions.The Order Fulfillment ProcessThe Order Fulfillment ProcessComponents of a BusinessEssentials of Business Information SystemsEssentials of Business Information SystemsChapter 2 E-Business: How Businesses Use Information SystemsChapter 2 E-Business: How Businesses Use Information Systems2.9© 2007 by Prentice HallManaging a Business and Firm HierarchiesManaging a Business and Firm Hierarchies•Senior management•Middle management•Operational management•Knowledge workers•Data workers•Production or service workersComponents of a BusinessEssentials of Business Information SystemsEssentials of Business Information SystemsChapter 2 E-Business: How Businesses Use Information SystemsChapter 2 E-Business: How Businesses Use Information Systems2.10© 2007 by Prentice HallThe Business EnvironmentThe Business EnvironmentComponents of a BusinessEssentials of Business Information SystemsEssentials of Business Information SystemsChapter 2 E-Business: How Businesses Use Information SystemsChapter 2 E-Business: How Businesses Use Information Systems•Global environment Global environment factorsfactors•Technology and Technology and sciencescience•EconomyEconomy•PoliticsPolitics•International International changechange •Immediate Immediate environment factorsenvironment factors•CustomersCustomers•SuppliersSuppliers•Competitors Competitors •RegulationsRegulations•StockholdersStockholders2.11© 2007 by Prentice Hall•Information systems relate to the following business objectives: •Achieving operational excellence•Developing new products and services•Attaining customer intimacy and service•Improving decision making•Promoting competitive advantage•Ensuring survivalThe Role of Information Systems in a BusinessThe Role of Information Systems in a BusinessComponents of a BusinessEssentials of Business Information SystemsEssentials of Business Information SystemsChapter 2 E-Business: How Businesses Use Information SystemsChapter 2 E-Business: How Businesses Use Information Systems2.12© 2007 by Prentice Hall•Sales and marketing systems •Manufacturing and production systems •Finance and accounting systems•Human resources systems Systems from a