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Information systems in the enterprise

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Information systems in the enterprise

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

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