BUS1MIS Management
Information Systems
Semester 1, 2012
Week 2 Lecture 1
Examples of IS and IT in Business
A movie called Opportunities for
Knowledge Workers will be displayed.
This movie contains some great
examples of companies that have used
IT and IS to gain a competitive
advantage.
You can access the movie through the
web site that accompanies your textbook
(http://www.mhhe.com/au/baltzan/).
If you have purchased a new textbook, check inside the cover of the
textbook for instructions on how to access the web site.
If you have purchased a second hand textbook you can pay to access the
web site by contacting Customer Service Australia - phone (Toll free in
Australia): 1800 646 572 or email: cservice_sydney@mcgraw-hill.com
How does Business Operate?
Before we can begin to understand MIS and how they can enhance the
performance of a business, we must understand how business operates.
Learning Objectives
•
•
•
•
Identify the three common business types.
List the seven departments commonly found in most business organisations.
Explain a business process model.
Describe the typical documentation used by a business.
How does Business Operate?
It is important to remember that the objective of any business is to maximise
profit.
i.e. maximise the difference between income and costs
How does Business Operate?
How might we view a business in order to understand what it does?
You could look at what type of business it is:
• Sole trader
• Partnership
• Company
Size and complexity
How does Business Operate?
Sole trader
Owned by a single person who is
responsible for all the profits and
losses of the business
For example - one person plumbing business
How does Business Operate?
Partnership
There is more than one owner. Each partner is responsible
for profits and losses. A partnership agreement is a legal
document that outlines the business issues
e.g.
•contribution (capital) of each partner
•how the profits and losses are to be shared
•how the partnership is to be dissolved
For example - corner shop run by 2 families
How does Business Operate?
Company
`legal entity’
business owners
(shareholders)
..with limited liability
board of directors
CEO
Managers/departments/employees
For example – Bendigo and Adelaide Bank
How does Business Operate?
How might we view a business in order to understand what it does?
You could look at how it is organised
The Business
Accounting
Finance
Sales
Human resources
Management Information
Systems
Marketing
Operations/production
See Appendix A “Business Basics” for a description of each
How does Business Operate?
The Management Information Systems (MIS) department collects and
stores:
•internal data from the accounting, operations, human resources and
sales/marketing departments and processes the data for output,
•as well as external data such as industry analysis/trends, competitor
analysis, etc.,
to support business processes and operations, and decision making.
How does Business Operate?
How might we view a business in order to understand what it does?
We could look at how it operates, for example …
1. identify the business processes
A business process is a set of standardised activities that accomplish
a particular business task
… processing a customer order
… customer checkout process in a supermarket
… developing a new product
A business process transforms a set of inputs into a set of outputs
(goods or services) by using people and tools
How does Business Operate?
How might we view a business in order to understand what it does?
We could look at how it operates, for example …
2. identify the business transactions and the data associated with them
A transaction is an exchange or transfer of goods, services, or funds that
involves two or more people or entities. Documents will record the data
associated with a transaction.
How does Business Operate?
How might we view a business in order to understand what it does?
We could look at how it operates, for example …
3. Construct a process model
How does Business Operate?
How does Business Operate?
How might we view a business in order to understand what it does?
We could look at how it operates, for example …
4. Model the data flows
customers
orders
invoices/statements
tax return
tax office
payroll tax
manufactured goods
product details
purchase orders
suppliers
raw materials/parts
payments
invoices
advertising agency
How does Business Operate?
How might we view a business in order to understand what it does?
We could look at how it operates, for example …
5. Study the supply chain
A typical supply chain
How does Business Operate?
How might we view a business in order to understand what it does?
We could look at how it operates, for example …
6. Study the documents
Customer Order
Customer to Business
How does Business Operate?
How might we view a business in order to understand what it does?
We could look at how it operates, for example …
6. Study the documents
Purchase Order
Business to Supplier
How does Business Operate?
How might we view a business in order to understand what it does?
We could look at how it operates, for example …
6. Study the documents
Invoice
Supplier to Business
Business to Customer
How does Business Operate?
How might we view a business in order to understand what it does?
We could look at how it operates, for example …
6. Study the documents
Picking/Packing Slip
Accompanies transport of products