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Management Information System Chapter 2

MANAGEMENT INFORMATION SYSTEMS ASSIGNMENT CHAPTER 2 “GLOBAL E-BUSINESS: HOW BUSINESS USE INFORMATION SYSTEMS” By: ANGGITA REBBICA HAMIDYA 040912196 – ENGLISH CLASS DEPARTMENT OF MANAGEMENT ECONOMIC AND BUSINESS FACULTY AIRLANGGA UNIVERSITY 2011 * BUSINESS PROCESS AND INFORMATION SYSTEMS Business processes are Manners in which work is organized, coordinated, and focused to produce a valuable product or service. They are concrete work flows of material, information, and knowledge—sets of activities.

They are also refer to unique ways to coordinate work, information, and knowledge, and the Ways in which management chooses to coordinate work. Many Business Processes may be tied to functional area or be cross-functional •Businesses can be seen as collection of business processes. Business processes may be assets or liabilities Information technology enhances business processes in two main ways: 1. Increasing efficiency of existing processes Automating steps that were manual 2. Enabling entirely new processes that are capable of transforming the businesses Change flow of information

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Replace sequential steps with parallel steps Eliminate delays in decision making * Types of Business Information Systems Systems from a FUNCTIONAL PERSPECTIVE 1. Sales and marketing systems Functional concerns: Sales management, customer identification market research, advertising and promotion, pricing, new products Examples: •Order processing (operational level) •Pricing analysis (middle management) •Sales trend forecasting (senior management) 2. Manufacturing and production systems Functional concerns: Managing production facilities, production goals, production materials, and scheduling Examples: Machine control (operational management) •Production planning (middle management) •Facilities location (senior management) 3. Finance and accounting systems Functional concerns: Managing financial assets (cash, stocks, etc. ) and capitalization of firm, and managing firm’s financial records Examples: •Accounts receivable (operational management) •Budgeting (middle management) •Profit planning (senior management) 4. Human resources systems Functional concerns: Identifying potential employees, maintaining employee records, creating programs to develop employee talent and skills Examples: Training and development (operational mgmt) •Compensation analysis (middle mgmt) •Human resources planning (senior mgmt) Systems from a CONSTITUENCY PERSPECTIVE 1. Transaction processing systems: supporting operational level employees * 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 2.

Management information systems and decision-support systems: supporting managers Management information systems * Serve middle management * Provide reports on firm’s current performance, based on data from TPS * Provide answers to routine questions with predefined procedure for answering them * Typically have little analytic capability Decision support systems * Serve middle management * Support nonroutine decision making, Example: What is impact on production schedule if December sales doubled? * Often use external information as well from TPS and MIS * Model driven DSS: Voyage-estimating systems Data driven DSS: Intrawest’s marketing analysis systems 3. Executive support systems: supporting executives * Support senior management * Address nonroutine decisions requiring judgment, evaluation, and insight * Incorporate data about external events (e. g. new tax laws or competitors) as well as summarized information from internal MIS and DSS Examples: ESS that provides minute-to-minute view of firm’s financial performance as measured by working capital, accounts receivable, accounts payable, cash flow, and inventory. Relationship of systems to one another TPS: Major source of data for other systems * ESS: Recipient of data from lower-level systems * Data may be exchanged between systems * In reality, most businesses’ systems only loosely integrated * SYSTEMS THAT SPAN THE ENTERPRISE Enterprise applications * Span functional areas * Execute business processes across firm * Include all levels of management * Four major applications: 1. Enterprise systems 2. Supply chain management systems 3. Customer relationship management systems 4. Knowledge management systems Enterprise systems Collects data from different firm functions and stores data in single central data repository * Resolves problem of fragmented, redundant data sets and systems * Enable: * Coordination of daily activities * Efficient response to customer orders (production, inventory) * Provide valuable information for improving management decision making * Supply chain management systems * Manage firm’s relationships with suppliers * Share information about Orders, production, inventory levels, delivery of products and services * Goal: Right amount of products to destination with least amount of time and lowest cost Customer relationship management systems: * Provide information to coordinate all of the business processes that deal with customers in sales, marketing, and service to optimize revenue, customer satisfaction, and customer retention. * Integrate firm’s customer-related processes and consolidate customer information from multiple communication channels * Knowledge management systems * Support processes for acquiring, creating, storing, distributing, applying, integrating knowledge * Collect internal knowledge and link to external knowledge * Include enterprise-wide systems for: Managing documents, graphics and other digital knowledge objects * Directories of employees with expertise Intranets: * Internal networks built with same tools and standards as Internet * Used for internal distribution of information to employees * Typically utilize private portal providing single point of access to several systems * May connect to company’s transaction systems Extranets: * Intranets extended to authorized users outside the company * Expedite flow of information between firm and its suppliers and customers * Can be used to allow different firms to collaborate on product design, marketing, and production

E-business (Electronic business): * Use of digital technology and Internet to execute major business processes in the enterprise * Includes e-commerce(electronic commerce): Buying and selling of goods overInternet E-government: The application of Internet and networking technologies to digitally enable government and public sector agencies’ relationships with citizens, businesses, and other arms of government * THE INFORMATION SYSTEMS FUNCTION IN BUSINESS Information systems department: Formal organizational unit responsible for information technology services * Includes programmers, systems analysts, project leaders, information systems managers * Often headed by chief information officer (CIO) End-users: * Representatives of other departments, for whom applications are developed * Small firm may not have formal information systems group * Larger companies typically have separate department which may be organized along one of several different lines: * Decentralized (within each functional area) * Separate department under central control Each division has separate group but all under central control E-Government (short for electronic government, also known as e-gov, digital government, online government, or connected government) is digital interactions between a: 1. government and citizens (G2C) — The G2C model apply the strategy of Customer Relationship Management (CRM) with business concept. By managing their customer (citizen) relationship, the business (government) can provide the needed products and services fulfill the needs from customer (citizen) 2. government and businesses/Commerce (G2B) 3. overnment and employees, and 4. government and governments /agencies (G2G). This digital interaction consists of governance, information and communication technology (ICT), business process re-engineering (BPR), and e-citizen at all levels of government (city, state/province, national, and international). E-government describes the use of technologies to facilitate the operation of government and the disbursement of government information and services. E-government, short for electronic government, deals heavily with Internet and non-internet applications to aid in governments.

E-government includes the use of electronics in government as large-scale to provide government-related information and services to the citizens. E-Government should enable anyone visiting a city website to communicate and interact with city employees via the Internet with graphical user interfaces (GUI), instant-messaging (IM), audio/video presentations, and in any way more sophisticated than a simple email letter to the address provided at the site” and “the use of technology to enhance the access to and delivery of government services to benefit citizens, business partners and employees”.

The focus should be on: * The use of Information and communication technologies, and particularly the Internet, as a tool to achieve better government. * The use of information and communication technologies in all facets of the operations of a government organization. * The continuous optimization of service delivery, constituency participation and governance by transforming internal and external relationships through technology, the Internet and new media. Disadvantages 1. Hyper-surveillance Increased contact between government and its citizens goes both ways.

Once e-government begins to develop and become more sophisticated, citizens will be forced to interact electronically with the government on a larger scale. This could potentially lead to a lack of privacy for civilians as their government obtains more and more information on them. 2. Cost Although “a prodigious amount of money has been spent” on the development and implementation of e-government, some say it has yielded only a mediocre product. The outcomes and effects of trial Internet-based governments are often difficult to gauge or unsatisfactory. 3. Inaccessibility

An e-government site that provides web access and support often does not offer the “potential to reach many users including those who live in remote areas, are homebound, have low literacy levels, exist on poverty line incomes. ” 4. False sense of transparency and accountability Opponents of e-government argue that online governmental transparency is dubious because it is maintained by the governments themselves. Information can be added or removed from the public eye. To this day, very few organizations monitor and provide accountability for these modifications.

Advantages 1. Democratization One goal of e-government will be greater citizen participation. Through the internet, people from all over the country can interact with politicians or public servants and make their voices heard. These technologies can create a more transparent government, allowing voters to immediately see how and why their representation in the capital is voting the way they are. Government transparency will give insight to the public on how decisions are made and hold elected officials or public servants accountable for their actions.. 2. Environmental bonuses

Proponents of e-government argue that online government services would lessen the need for hard copy forms. Due to recent pressures from environmentalist groups, the media, and the public, some governments and organizations have turned to the Internet to reduce this paper use. 3. Speed, efficiency, and convenience E-government allows citizens to interact with computers to achieve objectives at any time and any location, and eliminates the necessity for physical travel to government agents sitting behind desks and windows 4. Public approval Recent trials of e-government have been met with acceptance and eagerness from the public.

Citizens participate in online discussions of political issues with increasing frequency, and young people, who traditionally display minimal interest in government affairs, are drawn to e-voting procedures. I have chosen E-Government as my product that is related to chapter 2, especially the two official websites of Pemerintah Kota Surabaya (www. surabaya. go. id) and Pemerintah Kabupaten Banyuasin (http://banyuasinkab. go. id) These two websites facilitate the operation of government and the disbursement of government information and services using their official websites.

These 2 kinds of official website use the G2C model which applies the strategy of Customer Relationship Management (CRM). By managing their customer (citizen) relationship, government can provide the needed products and services fulfill the needs from customer (citizen). There are so many important informations for the citizens there, such as the information from PDAM that there was a problem on PDAM’s pipe. There are also the City Schedule, Tourism Objects detail informations, City Information, Sister City, City Map, Public Transportation Route and so on.

Not only about the city, these two website also provide some other important informations especially around the house living, for example an information about Jamkesmas, , Avian Influenza, Food Commodity Prices, Safety Riding, and etc.. There is a coloumn for the citizens who wanna do criticizing or sharing about their unsatisfaction about the city. But, here is the different between those two official websites. In PemKot Banyuasin’s, the citizens can just put their name and also identity number then share their opinion on that page, but PemKot Surabaya can’t either. We should make a call to share something there.

So, Public Complaints will only be displayed when the response had been given from the competent authority Then maybe PemKot Surabaya need to improve their website because PemKab Banyuasin’s website is better, PemKab Banyuasin’s website provide Online Chat, so we can talk with the admin directly. E government has to run two ways communication among the government and the citizenship. E government need to be very useful for the citizens because it’s one simple way for the citizens to get the information about their city and do complaining or sharing related to The Government’s service.

Because nowadays, E government such an important things and we are in a rush to hold this kind of information electronical system, because in 2009, the Ministry of State Apparatus Empowerment issued a circular requiring the Government to use legal software and directed to the Open Source, by the deadline December 31, 2011, meaning that on January 1, 2012 all government agencies must already make use of legal software and precedence Open Source.

Located at the Hotel Inna Kuta Beach Bali held the Equitablity of e-Government at the provincial level from the date of 12 April to 14 April 2011 which followed by the provincial representative in Indonesia.

The Equitability of e-Government Indonesia (PeGi) is an activity organized by the Directorate of e-Government, the Directorate General of Applications and Information Technology, Ministry of Communications and Information Technology, that held in order to view a map of the condition of the utilization of Information and Communication Technology (ICT) by government agencies nationally. REFERENCES http://en. wikipedia. org/wiki/E-Government http://www. surabaya. go. id/ http://banyuasinkab. go. id/ http://www. dinkes. banyuasinkab. go. id/ http://www. egovindonesia. org/home/


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