Information technology enhances business processes in

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Information technology enhances businessprocesses in two main ways:Increasing efficiency of existing processesAutomating steps that were manualEnabling entirely new processes that are capable oftransforming the businessesChange flow of informationReplace sequential steps with parallel stepsEliminate delays in decision making
Transaction processing systemsPerform and record daily routinetransactions necessary to conductbusinessExamples: sales order entry, payroll, shippingAllow managers to monitor status ofoperations and relations with externalenvironmentServe operational levelsServe predefined, structured goals anddecision making
Management information systemsServe all levels of managementProvide reports on firm’s current performance,based on data from TPSProvide answers to routine questions withpredefined procedure for answering themTypically have little analytic capability
In the system illustrated by this diagram, three TPS supplysummarized transaction data to the MIS reporting systemat the end of the time period. Managers gain access to theorganizational data through the MIS, which provides themwith the appropriate reports.
This system pools data from diverse internal and externalsources and makes them available to executives in easy-to-useform.
Systems from a constituency perspectiveTransaction processing systems: supporting operationallevel employeesManagement information systems and decision-supportsystems: supporting managersExecutive support systems: supporting executivesRelationship of systems to one anotherTPS: Major source of data for other systemsESS: Recipient ofdata from lower-level systemsData may be exchanged between systemsIn reality, most businesses’ systems only looselyintegrated
Enterprise applicationsSpan functional areasExecute business processes across firmInclude all levels of managementFour major applications:Enterprise systemsSupply chain management systemsCustomer relationship management systemsKnowledge management systems
Enterprise applications automate processes that span multiplebusiness functions and organizational levels and may extendoutside the organization.
Enterprise systemsCollects data from different firm functions andstoresdata in single central data repositoryResolves problem of fragmented, redundant datasets and systemsEnable:Coordination of daily activitiesEfficient response to customer orders (production,inventory)Provide valuable information for improvingmanagement decision making
Enterprise systems integrate the key business processes of an entire firm into a single software system thatenables information to flow seamlessly throughout the organization. These systems focus primarily on internalprocesses but may include transactions with customers and vendors.

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Term
Spring
Professor
SrinarayanSharma
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