Chapter 2 - Chapter 2 Global E-Business How Businesses Use...

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Chapter 2 Global E-Business: How Businesses Use Information Systems Laudon and Laudon IM material adapted for CIS 615 by Dr. Kizzier for 09-10 AY, 11 th ed. Learning Objectives After reading and discussing the material related to this topic, you will be able to: Define and describe business processes and their relationship to information systems. Discuss how systems serve the various levels of management in a business. Assess how enterprise applications, collaboration and communication systems, and intranets improve organizational performance. Describe the difference between e-business, e-commerce, and e-government Define the role of the information systems function in a business Chapter Outline 2.1 Business Processes and Information Systems Business Processes How Information Technology Enhances Business Processes 2.1 B USINESS P ROCESSES AND I NFORMATION S YSTEMS The opening case, “The Tata Nano Makes History Using Digital Manufacturing,” illustrates how much companies today rely on information systems for running their business, driving growth and profitability. Rather than staying with its outdated manufacturing processes based on several manual efforts, Tata Motors wisely chose to implement a completely new system that could help it automate more business processes and integrate functions into a single environment. It adopted the Dassault Systems’ Digital Enterprise Lean Manufacturing Interactive Application software that automates processes in product design and production engineering planning. The software enabled the company to plan manufacturing processes, design plant layouts, and then simulate the repercussions of those plans. The data it provides to Tata’s enterprise resource planning system helps the company save money and time by reducing its reliance on expensive 33
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physical prototypes. Much of the planning work was accomplished via computers so design changes were easier and cheaper to incorporate into the prototypes. This vignette is a great way to help you understand the necessity of using information systems to automate and integrate business processes from the early stages of planning on into actual production. It’s important to note that Tata Motors was confronted with both a problem and an opportunity. It chose to take advantage of the opportunities through increased use of information technology and systems. Section 2.1, “Components of a Business.” Table 2-1 may help you understand that every business, large and small, uses the same basic business processes. Referring back to this table may help as you examine information needs for each functional area. Can you think of how your business incorporates the business processes discussed in this section in each of the basic functional areas? Also, you might want to use Figure 2-1 to compare how the order fulfillment process can be accomplished sequentially, as the figure shows, versus simultaneously as a new information system would allow. What would happen if you walked into work one day and the management told the employees
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Chapter 2 - Chapter 2 Global E-Business How Businesses Use...

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