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Unit 2 role of information systems
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Unit 2 role of information systems

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  • 1. THE STRATEGIC ROLE OF INFORMATION SYSTEMS2.1
  • 2. LEARNING OBJECTIVES • ANALYZE ROLES OF 6 TYPES OF INFORMATION SYSTEMS • DESCRIBE TYPES OF INFORMATION SYSTEMS • EXAMINE COMPETITIVE FORCES, VALUE CHAIN MODELS *2.2
  • 3. LEARNING OBJECTIVES • EXPLAIN DIFFICULTIES OF BUILDING, SUSTAINING STRATEGIC INFORMATION SYSTEMS • DESCRIBE HOW INFORMATION SYSTEMS SUPPORT LEVELS OF BUSINESS STRATEGY2.3 *
  • 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 *2.4
  • 5. TYPES OF INFORMATION SYSTEMS KIND OF SYSTEM GROUPS SERVED STRATEGIC LEVEL SENIOR MANAGERS MANAGEMENT LEVEL MIDDLE MANAGERS KNOWLEDGE LEVEL KNOWLEDGE & DATA WORKERSOPERATIONAL OPERATIONALLEVEL MANAGERS SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN2.5 MARKETING RESOURCES
  • 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) *2.6
  • 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 *2.7 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 Systems2.8 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 *2.9 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 Systems2.10 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 System2.11 TPS *
  • 12. KNOWLEDGE WORK SYSTEMS (KWS) KNOWLEDGE LEVEL • INPUTS: DESIGN SPECS • PROCESSING: MODELLING • OUTPUTS: DESIGNS, GRAPHICS • USERS: TECHNICAL STAFF EXAMPLE: ENGINEERING WORK STATION2.12
  • 13. OFFICE AUTOMATION SYSTEMS (OAS) • TOWARD A “PAPERLESS” OFFICE • REDESIGN OF WORK FLOW • INTEGRATED SOFTWARE • ERGONOMIC DESIGN • BRIGHT, CHEERFUL WORK SPACE EXAMPLE: PRESENTATION GRAPHICS2.13
  • 14. MANAGEMENT INFORMATION SYSTEMS (MIS) MANAGEMENT LEVEL • INPUTS: HIGH VOLUME DATA • PROCESSING: SIMPLE MODELS • OUTPUTS: SUMMARY REPORTS • USERS: MIDDLE MANAGERS EXAMPLE: ANNUAL BUDGETING2.14
  • 15. MANAGEMENT INFORMATION SYSTEMS (MIS) • STRUCTURED & SEMI- STRUCTURED DECISIONS • REPORT CONTROL ORIENTED • PAST & PRESENT DATA • INTERNAL ORIENTATION • LENGTHY DESIGN PROCESS *2.15
  • 16. TPS DATA FOR MIS APPLICATIONS TPS MIS Order Processing SALES DATA System ORDER FILE UNIT PRODUCT Materials Resource COST MIS REPORTS Planning System PRODUCT CHANGE PRODUCTION MASTER FILE DATA General Ledger EXPENSE MANAGERS System DATA ACCOUNTING FILES MIS FILES2.16
  • 17. DECISION SUPPORT SYSTEMS (DSS) MANAGEMENT LEVEL • INPUTS: LOW VOLUME DATA • PROCESSING: INTERACTIVE • OUTPUTS: DECISION ANALYSIS • USERS: PROFESSIONALS, STAFF EXAMPLE: CONTRACT COST ANALYSIS2.17
  • 18. DECISION SUPPORT SYSTEMS (DSS) • FLEXIBLE, ADAPTABLE, QUICK • USER CONTROLS INPUTS/OUTPUTS • NO PROFESSIONAL PROGRAMMING • SUPPORTS DECISION PROCESS • SOPHISTICATED MODELING TOOLS *2.18
  • 19. EXECUTIVE SUPPORT SYSTEMS (ESS) STRATEGIC LEVEL • INPUTS: AGGREGATE DATA • PROCESSING: INTERACTIVE • OUTPUTS: PROJECTIONS • USERS: SENIOR MANAGERS EXAMPLE: 5 YEAR OPERATING PLAN2.19
  • 20. EXECUTIVE SUPPORT SYSTEMS (ESS) • TOP LEVEL MANAGEMENT • DESIGNED TO THE INDIVIDUAL • TIES CEO TO ALL LEVELS • VERY EXPENSIVE TO KEEP UP • EXTENSIVE SUPPORT STAFF *2.20
  • 21. INTERRELATIONSHIPS AMONG SYSTEMS ESS MIS DSS KWS TPS OAS2.21
  • 22. SYSTEMS FROM A FUNCTIONAL PERSPECTIVE • SALES & MARKETING SYSTEMS • MANUFACTURING & PRODUCTION SYSTEMS • FINANCE & ACCOUNTING SYSTEMS • HUMAN RESOURCES SYSTEMS *2.22
  • 23. STRATEGIC ROLE OF INFORMATION SYSTEMS STRATEGIC INFO SYSTEM: CAN CHANGE GOALS, OPERATIONS PRODUCTS, SERVICES ENVIRONMENT TO GAIN COMPETITIVE ADVANTAGE2.23
  • 24. COMPETITIVE FORCES MODEL NEW SUBSTITUTE MARKET PRODUCTS ENTRANTS & SERVICES TRADITIONAL THE FIRM COMPETITION SUPPLIERS CUSTOMERS2.24
  • 25. COUNTERING COMPETITIVE FORCES • PRODUCT DIFFERENTIATION • FOCUSED DIFFERENTIATION • DATAMINING • LINKING CUSTOMERS & SUPPLIERS • BECOMING LOW COST PRODUCER *2.25
  • 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, PROCUREMENT2.26 *
  • 27. IMPLICATIONS FOR MANAGERS & ORGANIZATIONS • STRATEGIC ALLIANCES, INFORMATION PARTNERSHIPS • INDUSTRY LEVEL STRATEGIC SYSTEMS • MANAGING STRATEGIC TRANSITIONS • IMPACT OF THE INTERNET *2.27
  • 28. INFORMATION SYSTEMS & QUALITY • QUALITY: Conformance to specifications, customer satisfaction • SIMPLIFY PRODUCT, PROCESS • BENCHMARKING • CUSTOMER DEMAND AS GUIDE • REDUCE CYCLE TIME • IMPROVE QUALITY & PRECISION *2.28

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