EBIZ-2100 Assignment 3
What Information Systems Are Used in E-Biz?
At the Operations Level:
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Transactions Processing Systems (TPS) compile and store vast quantities
of data from internal sources (such as inventory levels) as well
as from external sources (such as customer orders). The resulting
database is the companyís central information resource. The business
activities that a TPS handles include those related to:
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Orders
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Billing
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Payroll
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Suppliers
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Inventory
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Shipping
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Pricing
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Production
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Office Automation Systems are the nuts and bolts of a companyís
day-to-day communications, using the basic tools of todayís office:
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E-mail
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Word Processing
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Fax Machines
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Voice Mail
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Pagers
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Cell Phones
On the Strategic Level:
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Information Reporting Systems are the most basic of the management
support systems, where data collected on the TPS are compiled
into statistical reports for managers to use in making decisions. Reports
may be:
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Regularly scheduled or intermittently requested (Demand Reports)
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Operation-wide or selectively based (Exception Reports)
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General summaries or statistical comparisons
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Decision Support Systems (DSS) also help managers make decisions,
but they are more sophisticated than information reporting systems. By
using computer models based on real situations (such as demographics),
they allow managers to consider various business scenarios and prepare
the best strategies for the most likely possibilities. MS Knowledge
is a good example of a DSS. One type of ebiz, referred
to as e-merchandising employs DSS technology for ìdata-miningî,
a technique wherein information from a companyís database is matched
with customer profiles to identify potential new buyers for its
products (cross-selling). Typically, a DSS will include:
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Knowledge bases
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Frequently Asked Questions (FAQs)
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Solutions to common problems
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Executive Information Systems are like having a personalized DSS
for each decision-maker within an organization. Statistical information
from multiple sources is integrated into a report custom-designed for the
particular information needs of an executive (i.e. decision-maker). The
reports can be used for improving key business concerns such as:
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Accountability within functions
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Productivity
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Sales and marketing
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Performance compared to that of the competition
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Performance compared to previous performance
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Available supply and projected demand
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Expert Systems are similar to knowledge bases. By applying artificial
intelligence to information stored in the database, an expert system
creates a sort of ìvirtual expertî to reason and solve
problems. An example of an expert system in The Future Of Business,
by Larry J. Gitman and Carl McDaniel, comes from Bostonís Brigham
and Womenís Hospital. There, the data concerning a patientís
known allergies and potential adverse drug interactions is compared to
medicine as the doctor is prescribing it. If a problem is identified by
the expert system, the doctor is paged immediately so he can make the appropriate
adjustments.
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