Global E-Business: How Businesses Use Information Systems

Global E-Business: How Businesses

Use Information Systems

LEARNING OBJECTIVES

After reading this chapter, you

will be able to answer the

following questions:

1. What are business processes? How

are they related to information

systems?

2. HoNv do systems serve the various

levels of management in a

business?

3. How do enterprise applications,

collaboration and communication

systems, and intranets improve

organizational performance?

4. What is the difference between

e-business, c-commerce, and

e-government?

5. What is the role of the information

systems function in a business?

Interactive Sessions:

Air Canada Takes Off with

Maintenix

El-alamein For Printing And

Packaging Goes Digital

CHAPTER OUTLINE

2.1 BUSINESS PROCESSES AND INFORMATION

SYSTEMS

Business Processes

How Information Technology Enhances Business

Processes

2.2 TYPES OF INFORMATION SYSTEMS

r T ansaction Processing Systems

Management Information Systems and

Decision-Support Systems

Executive Support Systems for Senior Management

2.3 SYSTEMS THAT SPAN THE ENTERPRISE

Enterprise Applications

Intranets and Extranets

Collaboration and Communication Systems:

"Interaction" Jobs in a Global Economy

E-Business, E-Commerce, and E-Government

2.4 THE INFORMATION SYSTEMS FUNCTION IN

BUSINESS

The Information Systems Department

Organizing the Information Systems Function

2.5 HANDS-ON MIS PROJECTS

Management Decision Problems

Improving Decision Making: Use a Spreadsheet to

Select Suppliers

Achieving Operational Excellence: Use Internet

Software to Plan Efficient Transportation Routes

LEARNING TRACK MOD ULES

Systems from a Functional Perspective

Challenges of Using Business Information Systems

HYPERONE: SOLUTIONS TO ACHIEVE BUSINESS OBJECTIVES

yperone is the first fully Egyptian, combined hypermarket-department store in

H

the country, covering 40,000 square meters in the Sheikh Zayed District, a suburb

of Cairo. Established in 2005, the chain's success speaks for itself; it employs

more than 1,600 people and has an average of 45,000 visitors a day.

Hypermarkets use economies of scale to keep prices low. Their business model is based on

low overheads, a result of expansive stores located on the outskirts of cities (where property

prices are lower) coupled with sales of large volumes of goods at low profit margins. The

savings are passed along to the consumer. As Hyperone continues to move into big retail

prominence, the IT structure of the organization played a major role in this success story.

Hyperone's management has adopted a strategic plan for information systems. Three key

people, the CEO, the Information Systems Consultant, and the Information Systems Manager worked hard on achieving the seven major objectives of the plan. The objectives were:

Support daily operations: Create an effective, accurate, integrated and error free automated

system to support the complex and dynamic daily operations

Support customer satisfaction: Hyperone is keen to provide better quality products at low costs and a high standard of service through the analysis of sales and the understanding of the client's data after recording it in databases.

Attract and retain distinguished employees: Because the human element is a major factor of success, Hyperone took the necessary steps to maintain these elements by providing training, paying competitive salaries, and also providing an adequate work environment.

Support decision making: Raise the productivity of the institution through the support of deci-

sion-making by means of reliance on standard indicators called performance indicators or bal-

lot results.

Reinforce the direct and electronic relationship with suppliers: One of the characteristics of the

retail trade is the huge number of suppliers. This incited a lot of senior retail stores to focus on

those suppliers and improve