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ch02.ppt

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  • 1. CHAPTER 2. THE STRATEGIC ROLE OF INFORMATION SYSTEMS
  • 2. LEARNING OBJECTIVES
    • ANALYZE ROLES OF 6 TYPES OF INFORMATION SYSTEMS
    • DESCRIBE TYPES OF INFORMATION SYSTEMS
    • EXAMINE COMPETITIVE FORCES, VALUE CHAIN MODELS
    • *
  • 3. LEARNING OBJECTIVES
    • EXPLAIN DIFFICULTIES OF BUILDING, SUSTAINING STRATEGIC INFORMATION SYSTEMS
    • DESCRIBE HOW INFORMATION SYSTEMS SUPPORT LEVELS OF BUSINESS STRATEGY
    • *
  • 4. MANAGEMENT CHALLENGES
    • INTEGRATION:
      • ENTERPRISE RESOURCE MANAGEMENT
      • CONNECTING ORGANIZATIONAL LEVELS DIFFICULT, COSTLY
    • SUSTAIN COMPETITIVE ADVANTAGE:
      • INFO SYSTEMS MUST BE FLEXIBLE TO ENSURE LONG-TERM PROFITS
    • *
  • 5. TYPES OF INFORMATION SYSTEMS DATA WORKERS KIND OF SYSTEM GROUPS SERVED STRATEGIC LEVEL SENIOR MANAGERS MANAGEMENT LEVEL MIDDLE MANAGERS OPERATIONAL OPERATIONAL LEVEL MANAGERS KNOWLEDGE LEVEL KNOWLEDGE & SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN RESOURCES MARKETING
  • 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. 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
    • *
    TPS
  • 8. TYPICAL TPS APPLICATIONS Manufacturing & Production Systems
    • 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
    • *
    TPS
  • 9. TYPICAL TPS APPLICATIONS Finance & Accounting Systems
    • MAJOR FUNCTIONS OF SYSTEMS:
    • Budgeting; General Ledger; Billing: Cost Accounting
    • MAJOR APPLICATION SYSTEMS:
    • General Ledger; Accounts Receivable / Payable; Budgeting; Funds Management Systems
    • *
    TPS
  • 10. TYPICAL TPS APPLICATIONS Human Resources Systems
    • 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
    • *
    TPS
  • 11. TYPICAL TPS APPLICATIONS Other Types (e.g., University)
    • MAJOR FUNCTIONS OF SYSTEMS:
    • Admissions; Grade Records; Course Records; Alumni
    • MAJOR APPLICATION SYSTEMS:
    • Registration System; Student Transcript System; Curriculum Class Control System; Alumni Benefactor System
    • *
    TPS
  • 12.
    • KNOWLEDGE LEVEL
    • INPUTS: DESIGN SPECS
    • PROCESSING: MODELLING
    • OUTPUTS: DESIGNS, GRAPHICS
    • USERS: TECHNICAL STAFF
    • EXAMPLE: ENGINEERING WORK STATION
    KNOWLEDGE WORK SYSTEMS (KWS)
  • 13. OFFICE AUTOMATION SYSTEMS (OAS)
    • TOWARD A “PAPERLESS” OFFICE
    • REDESIGN OF WORK FLOW
    • INTEGRATED SOFTWARE
    • ERGONOMIC DESIGN
    • BRIGHT, CHEERFUL WORK SPACE
    • EXAMPLE: PRESENTATION GRAPHICS
  • 14.
    • MANAGEMENT LEVEL
    • INPUTS: HIGH VOLUME DATA
    • PROCESSING: SIMPLE MODELS
    • OUTPUTS: SUMMARY REPORTS
    • USERS: MIDDLE MANAGERS
    • EXAMPLE: ANNUAL BUDGETING
    MANAGEMENT INFORMATION SYSTEMS (MIS)
  • 15.
    • STRUCTURED & SEMI-STRUCTURED DECISIONS
    • REPORT CONTROL ORIENTED
    • PAST & PRESENT DATA
    • INTERNAL ORIENTATION
    • LENGTHY DESIGN PROCESS
    • *
    MANAGEMENT INFORMATION SYSTEMS (MIS)
  • 16. TPS DATA FOR MIS APPLICATIONS MIS MIS FILES SALES DATA UNIT PRODUCT COST PRODUCT CHANGE DATA EXPENSE DATA MIS REPORTS MANAGERS TPS Order Processing System Materials Resource Planning System General Ledger System ORDER FILE PRODUCTION MASTER FILE ACCOUNTING FILES
  • 17.
    • MANAGEMENT LEVEL
    • INPUTS: LOW VOLUME DATA
    • PROCESSING: INTERACTIVE
    • OUTPUTS: DECISION ANALYSIS
    • USERS: PROFESSIONALS, STAFF
    • EXAMPLE: CONTRACT COST ANALYSIS
    DECISION SUPPORT SYSTEMS (DSS)
  • 18.
    • FLEXIBLE, ADAPTABLE, QUICK
    • USER CONTROLS INPUTS/OUTPUTS
    • NO PROFESSIONAL PROGRAMMING
    • SUPPORTS DECISION PROCESS
    • SOPHISTICATED MODELING TOOLS
    • *
    DECISION SUPPORT SYSTEMS (DSS)
  • 19.
    • STRATEGIC LEVEL
    • INPUTS: AGGREGATE DATA
    • PROCESSING: INTERACTIVE
    • OUTPUTS: PROJECTIONS
    • USERS: SENIOR MANAGERS
    • EXAMPLE: 5 YEAR OPERATING PLAN
    EXECUTIVE SUPPORT SYSTEMS (ESS)
  • 20.
    • TOP LEVEL MANAGEMENT
    • DESIGNED TO THE INDIVIDUAL
    • TIES CEO TO ALL LEVELS
    • VERY EXPENSIVE TO KEEP UP
    • EXTENSIVE SUPPORT STAFF
    • *
    EXECUTIVE SUPPORT SYSTEMS (ESS)
  • 21. INTERRELATIONSHIPS AMONG SYSTEMS ESS TPS KWS OAS DSS MIS
  • 22. SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
    • SALES & MARKETING SYSTEMS
    • MANUFACTURING & PRODUCTION SYSTEMS
    • FINANCE & ACCOUNTING SYSTEMS
    • HUMAN RESOURCES SYSTEMS
    • *
  • 23. STRATEGIC ROLE OF INFORMATION SYSTEMS
    • STRATEGIC INFO SYSTEM:
    • CAN CHANGE GOALS, OPERATIONS
    • PRODUCTS, SERVICES
    • ENVIRONMENT
    • TO GAIN COMPETITIVE ADVANTAGE
  • 24. COMPETITIVE FORCES MODEL THE FIRM TRADITIONAL COMPETITION NEW MARKET ENTRANTS SUPPLIERS CUSTOMERS SUBSTITUTE PRODUCTS & SERVICES
  • 25.
    • PRODUCT DIFFERENTIATION
    • FOCUSED DIFFERENTIATION
    • DATAMINING
    • LINKING CUSTOMERS & SUPPLIERS
    • BECOMING LOW COST PRODUCER
    • *
    COUNTERING COMPETITIVE FORCES
  • 26. VALUE CHAIN MODEL
    • HIGHLIGHTS PRIMARY & SUPPORT ACTIVITIES THAT ADD VALUE TO PRODUCTS, SERVICES
    • PRIMARY: DIRECTLY RELATED TO PRODUCTION, DISTRIBUTION
    • SUPPORT: INFRASTRUCTURE, HUMAN RESOURCES, TECHNOLOGY, PROCUREMENT
    • *
  • 27. IMPLICATIONS FOR MANAGERS & ORGANIZATIONS
    • STRATEGIC ALLIANCES, INFORMATION PARTNERSHIPS
    • INDUSTRY LEVEL STRATEGIC SYSTEMS
    • MANAGING STRATEGIC TRANSITIONS
    • IMPACT OF THE INTERNET
    • *
  • 28. INFORMATION SYSTEMS & QUALITY
    • QUALITY: Conformance to specifications, customer satisfaction
    • SIMPLIFY PRODUCT, PROCESS
    • BENCHMARKING
    • CUSTOMER DEMAND AS GUIDE
    • REDUCE CYCLE TIME
    • IMPROVE QUALITY & PRECISION
    • *
  • 29. Connect to the INTERNET Laudon/Laudon Web site: http://www. prenhall .com/ laudon Additional Internet Resources related to this chapter: http://tools.org/EI/ICEIMT http://www. brint .com http://www. datawarehousing .com http://www. erpassist .com http://www.sap.com http://www. mysap .com © 2001 Laudon & Laudon, Essentials of Management Information Systems 4/e
  • 30. CHAPTER 2. THE STRATEGIC ROLE OF INFORMATION SYSTEMS