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Information systems in the enterprise

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  • 1. Management Information Systems - Chap 2 By: Prof. Y. Peter Chiu 2 / 2009
  • 2. Chap 2 Information Systems in the Enterprise 2.1 Key System Applications in the Organization 2.2 Systems from a Functional Perspective 2.3 Integrating Functions and Business Processes 2.4 International Information Systems
  • 3.
    • Fig 2.1: Types of Information Systems
  • 4. Different kinds of systems
    • Information systems that monitor the elementary activities and transactions of the organization .
    • Information systems that support knowledge and data workers in an organization.
    • 1 / 2
     Operational-level systems  Knowledge-level systems 2.1
  • 5.
    • Information systems that support the monitoring, controlling, decision making, and administrative activities of middle managers.
    •  Information systems that support the long-range planning activities of senior management .
    • 2 / 2
    Different kinds of systems  Strategic-level systems  Management-level systems 2.1
  • 6. Major Types of Systems
    • Executive Support Systems (ESS)
    • Decision Support Systems (DSS)
    • Management Information Systems (MIS)
    • Knowledge Work Systems (KWS)
    • Office Automation Systems (OAS)
    • Transaction Processing Systems (TPS)
  • 7.
    • Fig 2-2: The six major types of information systems.
  • 8.
    •  Computerized systems that perform and record the daily routine transactions necessary to conduct the business; they serve the organization’s operational level .
    Six Major Types of Systems  TPS – Transaction Processing Systems 2.1
  • 9.
    • Fig 2-4: Typical applications of TPS
  • 10. TYPICAL TPS APPLICATIONS Sales & Marketing Systems
    •  MAJOR FUNCTIONS OF SYSTEMS:
    •  Sales Management ;
    •  Market Research ;
    •  Promotion ; Pricing ; New Products
    •  MAJOR APPLICATION SYSTEMS:
    •  Sales Order Info System ;
    •  Market Research System ;
    •  Pricing System
    See Fig. 2-4 ( p.43 )
  • 11. TPS – Transaction Processing Systems
    •  Manufacturing
    •  Plant scheduling
    •  Material movement control
    •  Machine control
    •  Finance
    •  Securities trading
    •  Cash management
    2.1
  • 12.
    •  Accounting
    •  Payroll
    •  Account payable
    •  Account receivable
    •  Human Resources
    •  Compensation
    •  Training & development
    •  Employee record keeping
    TPS – Transaction Processing Systems 2.1
  • 13.
    • Fig 2-3: A symbolic representation for a payroll TPS.
    Payroll TPS 2.1 ◆
  • 14.
    •  Information systems that aid knowledge workers in the creation and integration of new knowledge in the organization .
    Six Major Types of Systems  KWS – knowledge work systems 2.1 Example: Engineering work station
  • 15.
    •  Computer systems, such as word processing, electronic mail systems, and scheduling systems, that are designed to increase the productivity of data workers in the office .
    Six Major Types of Systems  OAS – office automation systems 2.1
  • 16.
    •  Information systems at the management level of organization that serve the functions of planning, controlling, and decision making by providing routine summary and exception reports .
    Six Major Types of Systems  MIS – Management Information Systems 2.1 Example: Annual budgeting
  • 17.
    • Structured and semi-structured decisions
    • Report control oriented
    • Past and present data
    • Internal orientation
    MIS 2.1
  • 18. TPS DATA FOR MIS APPLICATIONS
    • Fig 2-5: How management information systems obtain their data the from the organization’s TPS .
  • 19.
    •  Information systems at the management level of an organization that combine data and sophisticated analytical models to support non-routine decision making .
    Six Major Types of Systems  DSS – Decision Support Systems 2.1 Example: Contract cost analysis
  • 20.
    • Fig 2-7: Voyage estimating decision-support system .
    Decision Support System (DSS) ◆
  • 21.
    •  Sales and marketing
    •  Sales management
    •  Sales region analysis
    • Manufacturing
    •  Inventory control
    •  Production scheduling
    MIS & DSS 2.1
  • 22.
    •  Finance
    •  Annual budgeting
    •  Cost analysis
    •  Accounting
    •  Capital investment analysis
    •  Pricing / profitability analysis
    •  Human Resource
    •  Relocation analysis
    •  Contract cost analysis
    MIS & DSS 2.1
  • 23.
    •  Information system at the organization’s strategic level designed to address unstructured decision making through advanced graphics and communications.
    Six Major Types of Systems  ESS – Executive Support Systems 2.1 Example: 5-year operating plan
  • 24.
    • Top level management
    • Designed to the individual
    • Ties CEO to all levels
    • Very expensive to keep up
    • Extensive support staff
    ESS 2.1
  • 25.
    • Fig 2-8: Model of a typical executive support system .
    Executive Support System (ESS) Figure 2-8
  • 26.
    •  Sales and marketing  Sales trend
    • forecasting
    •  Manufacturing  Operating plan
    •  Finance  Budget forecasting
    •  Accounting  Profit planning
    •  Human Resource  Personnel planning
    ESS 2.1
  • 27. Characteristics of Different Types of Information Systems
    •  Information inputs
    •  Processing
    •  Information outputs
    •  Users
    See Table 2-1 ( p.41 ) 2.1
  • 28.
    • Fig 2-9: Interrelationships among systems
    2.2 Systems from a Functional Perspective
  • 29.
    •  SALES & MARKETING SYSTEMS
    •  MANUFACTURING & PRODUCTION SYSTEMS
    •  FINANCE & ACCOUNTING SYSTEMS
    •  HUMAN RESOURCES SYSTEMS
    2.2 Systems from a Functional Perspective
  • 30. 2.2 Systems from a Functional Perspective
    • Major functions of systems:
    • Sales management, market research, promotion, pricing, new products
    • Major application systems:
    • Sales order info system, market research system, pricing system
    Sales and Marketing Systems
  • 31. Sales and Marketing Systems
  • 32. 2.2 Systems from a Functional Perspective
    • Major functions of systems:
    • Scheduling, purchasing, shipping, receiving, engineering, operations
    • Major application systems:
    • Materials resource planning systems, purchase order control systems, engineering systems, quality control systems
    Manufacturing and Production Systems
  • 33. Manufacturing and Production Systems
  • 34. 2.2 Systems from a Functional Perspective
    • Major functions of systems:
    • Budgeting, general ledger, billing, cost accounting
    • Major application systems:
    • General ledger, accounts receivable, accounts payable, budgeting, funds management systems
    Financing and Accounting Systems
  • 35. Financing and Accounting Systems
  • 36. 2.2 Systems from a Functional Perspective
    • Major functions of systems:
    • Personnel records, benefits, compensation, labor relations, training
    • Major application systems:
    • Payroll, employee records, benefit systems, career path systems, personnel training systems
    Human Resource Systems
  • 37. Human Resource Systems
  • 38.
    • Business processes
    • Manner in which work is organized, coordinated, and focused to produce a valuable product or service
    • Concrete work flows of material, information, and knowledge—sets of activities
    • Unique ways to coordinate work, information, and knowledge
    • Ways in which management chooses to coordinate work
    2.3 Business Processes and Information Systems
  • 39.
    • Manufacturing and production: Assembling product, checking quality, producing bills of materials
    • Sales and marketing: Identifying customers, creating customer awareness, selling
    Examples of Business Processes 2.3 Business Processes and Information Systems
  • 40. Cross-Functional Business Processes 2.3 Business Processes and Information Systems Fig. 2-12 The Order Fulfillment Process
  • 41.
    • Information systems help organizations
    • Achieve great efficiencies by automating parts of processes
    • Rethink and streamline processes
    2.3 Business Processes and Information Systems
  • 42.
    • Customer Relationship Management (CRM)
    • Manages all ways used by firms to deal with existing and potential new customers
    • Uses information system to coordinate entire business processes of a firm
    • Provides end-to-end customer care
    • Provides a unified view of customer across the company
    • Consolidates customer data from multiple sources and provides analytical tools for answering questions
    2.3 Business Processes and Information Systems
  • 43. 2.3 Business Processes and Information Systems Customer Relationship Management (CRM) Figure 2-13
  • 44. 2.3 Business Processes and Information Systems
    • Supply Chain Management (SCM)
    • Close linkage and coordination of activities involved in buying, making, and moving a product
    • Integrates supplier, manufacturer, distributor, and customer, logistics, time
    • Reduces time, redundant effort, and inventory costs
    • Network of organizations and business processes
    • Helps in procurement of materials, transformation of raw materials into finished products
    • Helps in distribution of the finished products to customers
    • Includes reverse logistics - returned items flow in the reverse direction from the buyer back to the seller
  • 45. 2.3 Business Processes and Information Systems Supply Chain Management Figure 2-14
  • 46.
    • Decide when, what to produce, store, move
    • Rapidly communicate orders
    • Communicate orders, track order status
    • Check inventory availability, monitor levels
    • Track shipments
    • Plan production based on actual demand
    • Rapidly communicate product design change
    • Provide product specifications
    • Share information about defect rates, returns
    2.3 How Information Systems Facilitate Supply Chain Management
  • 47. 2.3 Collaborative Commerce Figure 2-15
  • 48. 2.3 Enterprise System Figure 2-17
  • 49. Figure 2-18 2.4 Global System Configuration
  • 50. HOMEWORK Chap.2
    • # 1 # 2 # 3
    • # 7 # 8 # 9
    • # 10: What is CRM?
    • # 11: What is SCM?
    • # 12
    ~ THE END ~