cis 32 business computing applications and ecommerce
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Learning Object Types of Business
Applications
CIS 32
Business Computing Applications and
eCommerce
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Key Elements1. Review Framework for Describing Business Applications
2. Examine Accounting Support Systems
3. Examine Manufacturing Support Systems
4. Examine Customer/supplier Support Systems
5. Examine Operating Personnel Support Systems
6. Examine Management Support Systems
(Includes Communication)
1. Examine Personal Support Systems
2. Consider major issues surrounding integration between
Functional Area Support Systems
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1. Describing Business Applications
The framework, presented in the last topic, willform the basis for describing the six specific
types of Business Applications to be reviewed in
this topic.
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1. Describing Business Applications (Cont.)Characteristics of Business Application
Functional (activities, tasks, subprocesses and processessupported)
Technological (hardware, software, procedures)
Information (and Data) Inputs (sources) Outputs (sinks)
People Interfacing with Business Application Indirectly affected by Business Application
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2. Accounting Support SystemsAccounting Departments generally provide two
types of report that can be distributed throughoutan organisation, or distributed to entities in theexogeneous environment.
The two types of reports are: those which show what has happened, and
those which attempt to predict the immediate future.Entities in the exogenous or "external"
environment are individuals and organisationssuch as accountants, bankers, Governmentauthorities and so forth.
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2. Accounting Support Systems (Cont.)
Functional Activities, Tasks, Subprocesses andProcesses Supported: Monthly Sales Report
Monthly Production Report
Annual Master Budget
Cost Analysis Reports
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2. Accounting Support Systems (Cont.)Technological Infrastructure
A given organisation may have a
combination of hardware, software and other
technology such as mainframe, mini or
personal computer systems, plus telephonesystems, fax machines, photocopiers and a
whole host of other office technology.
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2. Accounting Support Systems (Cont.) Information (and Data)
Inputs (sources)Some of the most valuable information an organisation
uses relates to its own business process.This information is obtained from records maintained
by all functional areas of the business. Information is also obtained from a wide variety ofsources outside the business.
This information is generated by Government bodies,suppliers, customers, competitors etc., and transmittedvia a variety of transmission methods.
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2. Accounting Support Systems (Cont.)
Information (and Data)Outputs (sinks)
Much of the information generated by the accounting
department is provided to individuals or groups in other
functional areas of a business organisation.
Information is also provided to external entities, e.g.
customer invoices and compliance returns required by
the ATO and the ACCC.
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2. Accounting Support Systems (Cont.)
Transmission methods generally fall into threebroad categories: Face to face communication
Print media, and
Electronic media.
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2. Accounting Support Systems (Cont.)People
There are two groups of people: the people who directly interface with the technology
that forms the Business Application the people that either provide information input, or use
the information output.
Interfacing with the Business ApplicationPeople in this category would mainly consists of data
input clerks and accountants employed in theAccounting Department.
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2. Accounting Support Systems (Cont.)People
Indirectly affected by Business ApplicationThis includes staff in all functional areas of the
organisation who either supply information for inputinto the Accounting Support System, or useinformation produced by it.
It also includes people outside the businessorganisation who supply information for input into theAccounting Support System, or use informationproduced by it.
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2. Accounting Support Systems (Cont.)
This analysis of an Accounting Support System isgrossly over-simplified.
Not all common information sources and people
have been identified and discussed. Even for a
relatively small organisation, the detail for an
Accounting Support System would run into many
pages / lectures.
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3. Manufacturing Support Systems
Many organisations with a manufacturingprocess share the same basic characteristics.
There is normally a warehouse operation for the
storage of both raw materials and finished
goods.
A manufacturing process combines the raw
materials using people, equipment, knowledge
and procedures into finished products for
internal and/or external customers.
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4. Customer/Supplier Support Systems
Customer Support Systems serve two basicpurposes: advise the availability of products and services
support after sales service.
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4a. Customer Support Systems
Web sites are becoming popular venues to advertiseand sell a wide range of products and services.
In the evolution of eCommerce so far we have seen
the Internet used to advertise and sell a wide range
of common goods and services.
However, in recent years we have seen the
beginning of the new range of products specifically
designed for sale and distribution over the Internet.
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4a. Customer Support Systems (Cont.)
One example is the sale and distribution of popularmusic via MP3 technology.
A number of businesses are now using Internet-
based after sales support systems to provide
information to customers about how to correctly use
their products, about making warranty claims and
how to arrange periodic servicing etc.
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4b. Supplier Support Systems
Supplier Support Systems support the interactionbetween businesses and suppliers of raw
materials or component parts.
Perhaps the best known examples are the
Japanese car manufactures using Just-In-Timeproduction processes.
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5. Operating Personnel Support Systems
A Personnel Department has the basicresponsibility of obtaining suitably qualified and or
experienced staff to perform the activities, tasks,
subprocesses and processes in every functional
area of an organisation.
Personnel Departments also typically have the
responsibility for payroll, and may oversee the
periodic assessment of individual employee's work
performance.
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6. Management Support Systems
The range of tasks that managers perform is wide.The specific range of activities, tasks,
subprocesses and processes that they perform, or
over which they bear responsibility, can be
extensive.
Basically, management is the process undertaken
by one or more individuals to coordinate the
activities of others to achieve results not
achievable by one individual acting alone (Donnelly,
Gibson and Ivancevich, 1990).
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6. Management Support Systems (Cont.)
Van Tassell and Keller (1991) stated thatmanagement has been commonly referred to as
the "decision-making process."
Osburn and Schneeberger (1983) refer to the
concept of management as a procedure, related to
scientific methods of approaching problem solving.
A system for providing information is vital to
business decision-making (Kast and Rosenweig,
1981).
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6. Management Support Systems (Cont.)
Basic Communication Concepts Social Context
It is the situation and relationships within which the
communication takes place.
It includes social presence, organisational position,
relationships, cultural norms, age, gender and thetopic being discussed.
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6. Management Support Systems (Cont.)Basic Communication Concepts
Personal, Impersonal and Anonymous CommunicationThe form and content of communication varies
depending on whether communication is personal,impersonal or anonymous.
The personal relationship between the sender andthe receiver affects the form and the content of
communication, even in business situations. In impersonal communication the specific identity of
the sender and the receiver affect thecommunication less, if at all.
In anonymous communication the sender's identify ishidden.
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6. Management Support Systems (Cont.)
Basic Communication Concepts Time, Place and Direction of CommunicationCommunication can be described in terms of whether
the sender and receiver are present at the same time,
whether they are present at the same place and
whether the communication is inherently one-way ortwo-way.
Alter, Table 5.3 classifies communication technologies
by the time and place of communication.
Approaches for Improving Communication
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Alter, Information Systems, Tbl 5.325
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6. Management Support Systems (Cont.)
Basic Communication Concepts Approach 1Use presentation technologies to present ideas more
effectively in same-time, same-place meetings.
Approach 2
Eliminate unnecessary person to personcommunication by substituting on-line data access.
An example is the use of ATMs by banks.
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6. Management Support Systems (Cont.)Basic Communication Concepts
Approach 3Making communication systematic reduces the effort
required to clarify the meaning of the communication.Communication between people tends to beunstructured. Usually there is little or no effort tomake the message confirm to a specific framework or
task. Approach 4
Through the process of convergence with computingtechnologies, electronic communication technologiesare rapidly being combined and expanded to provideenhanced mechanisms for communication.
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Alter, Information Systems, Fig. 5.128
Basic Decision-making Concepts
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6. Management Support Systems (Cont.)Basic Communication Concepts
Problem Finding Identifying problemsFormulating problemsClarifying problems
Problem Solving, consists of 4 stages: IntelligenceDesignChoice Implementation
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6. Management Support Systems (Cont.)Problem Solving and their key challenges
Intelligence is the collection and analysis of data related tothe problemKey challenges
Obtaining complete and accurate data sets Interpreting data accurately
Drawing realistic implications Design is a systematic study of the problemKey challenges
Set boundaries to the problem Generate workable alternatives Identify/ develop methods/ models for evaluating
alternatives
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6. Management Support Systems (Cont.)Problem Solving and their key challenges (Cont.)
Choice is selection of preferred alternativeKey challenges
Reconciling conflicting objectives/ interests Incorporating certainty, risk & uncertainty
Managing group discussion processes Implementation is putting the decision into effect
Key challenges Ensure the decision is understood Others understand their roles
Create commitment to follow through
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6. Management Support Systems (Cont.)Holsapple and Whinston (2001, p.p. 151 - 152)
suggest that: Management Support Systems canbe divided into subclasses which include: Management Information Systems (MIS) Transaction Processing Systems (TPS) Decision Support Systems (DSS) Communication Support Systems (CSS) Executive Information Systems (EIS) Group Decision Support Systems (GDSS) Organisation Decision Support Systems (ODSS)
Office Automation Systems (OAS).
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6. Management Support Systems (Cont.) The combination of characteristics a Management Support
System will embody a function of the range of activities, tasks,sub-processes and processes that all managers across the
organisation perform or are responsible for.
The specific range of activities, tasks, sub-processes and
processes that each manager is responsible for is a function of
their seniority within the organisation, who they communicatewith, and the nature of the decisions they make.
You should be aware that Management Support Systems will
generally transcend all functional areas of an organisation.
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7. Personal Support SystemsThey are primarily developed to support the
activities, tasks, subprocesses and processes thatare the responsibility of a single individual.Again they will normally be some combination of
characteristics found among: Management Information Systems (MIS)
Transaction Processing Systems (TPS) Decision Support Systems (DSS) Communication Support Systems (CSS) Executive Information Systems (EIS) Group Decision Support Systems (GDSS) Organisation Decision Support Systems (ODSS)
Office Automation Systems (OAS)
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7. Personal Support Systems (Cont.)Many Personal Support Systems are created by the
end-users themselves, and as such commonly
engender the advantages and disadvantages of this
form of system development.
Advantages of End-User Development
Less reliance on I.T. specialists (Lower overall costs) User involvement and satisfaction
Reduced application backlog
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7. Personal Support Systems (Cont.)Disadvantages of End-User Development
Non-compatible systems
Limited portability
Naive designs
Idiosyncratic designs
Lack of testing, security and controlsWays of Reducing the Disadvantages
Provide I.T. professionals as advisers/ reviewers
Enforce organisational standards
Provide end-user training
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7. Personal Support Systems (Cont.)
Should be aware that Personal Support Systems
generally support only a relatively narrow scope of
activities, tasks, sub-processes and processes within a
specific functional area of an organisation.
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8. Integration between Functional Area Support
Systems It is true that many Business Applications lack
integration with applications used in other
functional areas of organisations.
It is also true that this lack of integration was
encouraged, in part, by a wide spread
management policy to encourage competition
between functional areas.
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8. Integration between Functional Area Support
Systems (Cont.)But, it goes much deeper than this. Specific
functional areas were frequently staffed by
individuals engaged in particular professions or
trades.
Historically there has been a strong demarcation
between professions and trades that has also
contributed to wide spread lack of integration
between functional areas.
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8. Integration between Functional Area Support
Systems (Cont.) In recent years, the nature of the market spaces in
which many organisations operate has changed
dramatically.
Many markets have become highly competitive
and are characterised by a high degree of volatility
and uncertainty.
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8. Integration between Functional Area Support
Systems (Cont.) In order to remain viable in such markets business
organisations are forced to strive to establish or
maintain competitive advantage by continually
seeking to improve their own business performance
to at least keep pace with competitors.
Many organisations strive for competitive
advantage by encouraging collaboration between
all functional areas of the organisation.
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8. Integration between Functional Area SupportSystems (Cont.)Such collaboration promotes increased value of
products and services for both internal and externalcustomers.
Business Applications must therefore be more
integrated in order to support collaboration betweenfunctional areas. Integration is one of the major challenges facing
information technology and information systemprofessionals in the new millennium.
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Review of Key Elements Review Framework for Describing Business Applications
Examine Accounting Support Systems
Examine Manufacturing Support Systems
Examine Customer/supplier Support Systems
Examine Operating Personnel Support Systems
Examine Management Support Systems Examine Personal Support Systems
Consider major issues surrounding integration between
Functional Area Support Systems
Business Applications