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Text Preview Chapter 2
E:Business: How Businesses Use Information Systems

Student Objectives

1. Identify and describe the major features of a business that are important for understanding the role of information systems. 2. Describe the information systems supporting the major business functions: sales and marketing, manufacturing and production, finance and accounting, and human resources. 3. Evaluate the role played by systems serving the various levels of management in a business and their relationship to each other. 4. Explain how enterprise applications collaboration and communication systems, and intranets improve organizational performance. 5. Assess the role of the information systems function in a business.

Chapter Outline
2.1 Components of a Business
Organizing a Business: Basic Business Functions
Business Processes
Managing a Business and Firm Hierarchies
The Business Environment
The Role of Information Systems in a Business
2.2Types of Business Information Systems
Systems from a Functional Perspective
Systems from a Constituency Perspective
Relationship of Systems to One Another
2.3Systems That Span the Enterprise
Enterprise Applications
Intranets and Extranets
E-Business, E-Commerce and E-Government
2.4 The Information Systems Function in Business
The Information Systems Department
Organizing the Information Systems Function
2.5Hands-on MIS

Key Terms

The following alphabetical list identifies the key terms discussed in this chapter. The page number for each key term is provided.

Business, 41
Information systems department, 67
Business processes, 43
Information systems managers, 68
Chief information officer (CIO), 68
Interorganizational system, 61
Chief knowledge officer (CKO), 68
Knowledge management systems (KMS), 64
Chief privacy officer (CPO), 68
Knowledge workers, 45
Chief security officer (CSO), 68
Management information systems (MIS), 55
Customer relationship management (CRM) systems, 62
Manufacturing and production information systems, 49
Data workers, 45
Middle management, 45
Decision-support systems (DSS), 55
Operational management, 45
Electronic business (e-business), 67
Portal, 57
Electronic commerce (e-commerce), 67
Production or service workers, 45
E-government, 67
Programmers, 68
End users, 68
Sales and marketing information systems, 48
Enterprise applications, 59
Senior management, 45
Enterprise systems, 59
Supply chain management (SCM) systems, 61
Executive support systems (ESS), 57
Systems analysts, 68
Finance and accounting information systems, 50
Transaction processing systems (TPS), 54
Human resources information systems, 51

Teaching Suggestions

The opening case, “Information Systems Join the Tupperware Party”, illustrates how much companies today rely on information systems for running their business, driving growth and profitability. Tupperware’s unique business model using a dispersed, independent sales force requires a massive effort to gather, store, maintain, and disseminate data and information to its geographically separated users. Changing its corporate structure required it to change its inadequate information system. It had to find a way to reduce the workload on its sales force, improve communications, and provide the right information to the right users at the right time.

Rather than staying with its old information technology infrastructure, Tupperware wisely chose to implement a completely new system that could help it automate more business processes and integrate functions into a single secure environment that was scalable. Using the Oracle Collaboration Suite and Oracle Portal software provided avenues for continued expansion of collaborative efforts among its sales force and between the sales reps and management. Following the new system’s implementation, Tupperware immediately began enhancing the system to provide even more online collaboration and... Show More

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