Summary
Summary Chapter 6 - Business Management 114
- Course
- Business Management 114
- Institution
- Stellenbosch University (SUN)
Summary of 4 pages for the course Business Management 114 at SUN
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Chapter 6 – Understanding information and e-Business
Information rule – same outcome emerges every time with similar
set of circumstances e.g. lower price = more sales
Data – numerical and verbal descriptions resulting from
measurements
Information – Data presented in a useful way.
Database – single collection of data and information that can be
used throughout organization to make decisions
Knowledge Management (KM) – how data is collected, used and
shared.
Management information system (MIS) – system that provides
managers and employees with the information needed to preform
jobs effectively. Size and complexity tailored for each business
Information technology (IT) officer – manager responsible to ensure
that an organization has necessary equipment to supply managers
and employees with info needed for effective decisions.
5 areas of management that require information
Financial managers
Operations managers
Marketing managers
Human resources managers
Administrative managers
How do employees use a MIS
Step 1: Collecting Data
o Internal sources – company records etc.
o External sources – customers etc.
o Cautions to take when collecting data
1. Cost
2. Accuracy of data
3. If data disagrees with your data re-check data
Step 2: Storing data
Step 3: Updating Data
Step 4: Processing Data
o Transformation of data into useful format
Step 5: Presenting information
o MIS must be capable of presenting information in a
useful format
, o Verbally presented – business reports
o Visually presented – types of graphs
Systems needed to make smart decisions
o Decision support systems – Computer program that only
presents relevant information.
o Executive Information system – Computer program that
facilitates and supports decision making needs by allowing
access to internal and external information.
o Expert system – uses artificial intelligence to think like human
and assist in decisions.
Groupware – allows large projects between geographically dispersed
employees.
Collaborative learning system – allows problem solving by using
entire team by posting a question on groupware system.
Telecommuting, Virtual Offices and Technology
Virtual offices – allows employees to work from anyplace with access
to computers and Internet.
Advantages of telecommuting
o Higher job satisfaction thus increased productivity
o Greater independence and flexibility
o Lower employee turnover
o New employment opportunities for employees with physical
disabilities
Types of networks
WAN – connects computers in different geographical areas
LAN – connects computers in close proximity
E-Business – organized effort by individuals to produce and sell for a
profit whilst satisfying societies needs online
Outsourcing – where outside vendors/suppliers provide professional
help/parts/materials at a lower cost.
Creating profit by using e-Businesses
Increasing sales revenue
Using intelligent information systems to display products
relevant to customers preferences
People all over the world has access to products 24/7
Exsistance of website could lead to increased sale in physical
stores
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