BUS1MIS Management Information Systems Semester 1, 2012 Week 2 Lecture 1.

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: [email protected]

http://www.mhhe.com/au/baltzan/

How does Business Operate?

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.

Before we can begin to understand MIS and how they can enhance the performance of a business, we must understand how business operates.


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 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


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


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


Company

`legal entity’

business owners(shareholders)

..with limited liability

board of directors

CEO

Managers/departments/employees

For example – Bendigo and Adelaide Bank



You could look at how it is organised

The Business

Accounting Finance

Human resources

Sales Marketing

Operations/production

Management InformationSystems See Appendix A “Business Basics” for a description of each


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.



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

A business process transforms a set of inputs into a set of outputs (goods or services) by using people and tools

… developing a new product


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.




3. Construct a process model




customers

suppliers

tax office

advertising agency

orders

manufactured goods

invoices/statements

purchase orders

raw materials/parts

product details

invoices

payments

payroll tax

tax return

4. Model the data flows




A typical supply chain

5. Study the supply chain




6. Study the documents



Customer Order

Customer to Business





Purchase Order

Business to Supplier





Invoice

Supplier to BusinessBusiness to Customer





Picking/Packing Slip

Accompanies transport of products

BUS1MIS Management Information Systems Semester 1, 2012 Week 2 Lecture 1.

Documents

Transcript of BUS1MIS Management Information Systems Semester 1, 2012 Week 2 Lecture 1.