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Information Systems in the Enterprise
1
Management
Information Systems
 Challenge: monthly changes in fashions; Mango has 731 stores in 72
countries
 Solutions. Inventory replenishment system tracks all sales and matches
stores with inventory.
 Design teams meet weekly to adjust to trends.
 Distribution system allocates bar-coded items to specific stores based on
store/product mix.
 Reduces time to market, increases agility
 Increases accuracy of decision making
Management Information Systems
Chapter - Information Systems in the Enterprise
Mango Case: Fast Fashion, Hot Systems
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
2
Management Information Systems
Chapter - Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Types of Information Systems
Figure 2-1
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
3
Management Information Systems
Chapter - Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Different Kinds of Systems
1. Operational-level systems: support operational managers,
keeping track of the elementary activities and
transactions
2. Management-level systems: serve the monitoring,
controlling, decision-making, and administrative activities
3. Strategic-level systems: help senior management tackle
and address strategic issues
Three main categories of information systems serve
different organizational levels:
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
4
Management Information Systems
Chapter - Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Major Types of Systems
• Transaction Processing Systems (TPS)
• Management Information Systems (MIS)
• Decision-Support Systems (DSS)
• Executive Support Systems (ESS)
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
5
Management Information Systems
Chapter - Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
The Four Major Types of Information Systems
Figure 2-2
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
6
Management Information Systems
Chapter - Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Transaction Processing Systems (TPS)
• Basic business systems that serve the
operational level
• A computerized system that performs and
records the daily routine transactions necessary
to the conduct of the business
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
7
Management Information Systems
Chapter - Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
A Symbolic Representation for a Payroll TPS
Figure 2-3
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
8
Management Information Systems
Chapter - Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Typical Applications of TPS
Figure 2-4
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
9
Management Information Systems
Chapter - Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Management Information Systems (MIS)
Management level
• Inputs: High volume transaction level data
• Processing: Simple models
• Outputs: Summary reports
• Users: Middle managers
Example: Annual budgetingChapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
10
Management Information Systems
Chapter - Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Management Information Systems (MIS) (continued)
Figure 2-5
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
11
Management Information Systems
Chapter - Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Management Information Systems (MIS) (continued)
Figure 2-6
A sample MIS report
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
12
Management Information Systems
Chapter - Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Decision-Support Systems (DSS)
Management level
• Inputs: Transaction level data
• Processing: Interactive
• Outputs: Decision analysis
• Users: Professionals, staff
Example: Contract cost analysis
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
13
Management Information Systems
Chapter - Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Decision-Support Systems (DSS) (Continued)
Voyage-estimating decision-support system
Figure 2-7
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
14
Management Information Systems
Chapter - Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
EXECUTIVE SUPPORT SYSTEMS (ESS):
• Inputs: Aggregate data
• Processing: Interactive
• Outputs: Projections
• Users: Senior managers
Example: 5 year operating planChapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
15
Management Information Systems
Chapter - Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Model of a Typical Executive Support System
Figure 2-8
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
16
Management Information Systems
Chapter - Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
EXECUTIVE SUPPORT SYSTEMS (ESS) (Continued)
• Top Level Management
• Designed to the individual senior manager
• Ties CEO to all levels
• Very expensive to keep up
• Extensive support staffChapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
17
Management Information Systems
Chapter - Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Relationship of Systems to One Another
Interrelationships among systems
Figure 2-9
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
18
Management Information Systems
Chapter - Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Relationship of Systems to One Another
In contemporary digital firms, the different types of
systems are closely linked to one another. This is
the ideal. In traditional firms these systems tend to
be isolated from one another, and information does
not flow seamlessly from one end of the organization
to the other. Efficiency and business value tend to
suffer greatly in these traditional firms
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
19
Management Information Systems
Chapter - Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Sales and 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
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
20
Management Information Systems
Chapter - Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Sales and Marketing Systems
SYSTEM DESCRIPTION ORGANIZATIONAL
LEVEL
Order
processing
Enter, process, and track orders Operational
Pricing analysis Determine prices for products and
services
Management
Sales trend
forecasting
Prepare 5-year sales forecasts Strategic
Table 2-2
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
21
Management Information Systems
Chapter - Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Manufacturing and 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
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
22
Management Information Systems
Chapter - Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
SYSTEM DESCRIPTION ORGANIZATIONAL
LEVEL
Machine
control
Control the actions of machines and
equipment
Operational
Production
planning
Decide when and how many products
should be produced
Management
Facilities
location
Decide where to locate new production
facilities
Strategic
Manufacturing and Production Systems
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
23
Management Information Systems
Chapter - Information Systems in the Enterprise
Overview of an Inventory System
Figure 2-10
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
24
Management Information Systems
Chapter - Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Financing and Accounting Systems
Major functions of systems:
• Budgeting, general ledger, billing, cost accounting
Major application systems:
• General ledger, accounts receivable, accounts payable, budgeting,
funds management systems
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
25
Management Information Systems
Chapter - Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Financing & Accounting Systems (Continued)
SYSTEM DESCRIPTION ORGANIZATION-
AL LEVEL
Accounts
receivable
Tracks money owed the firm Operational
Budgeting Prepares short-term budgets Management
Profit
planning
Plans long-term profits Strategic
Table 2-4
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
26
Management Information Systems
Chapter - Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Human Resource 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
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
27
Management Information Systems
Chapter - Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Human Resource Systems (Continued)
SYSTEM DESCRIPTION ORGANIZATIONAL
LEVEL
Training and
development
Tracks employee training, skills,
and performance appraisals
Operational
Compensation
analysis
Monitors the range and distribution
of employee wages, salaries, and
benefits
Management
Human resources
planning
Plans the long-term labor force
needs of the organization
Strategic
Table 2-5
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
28
Management Information Systems
Chapter - Information Systems in the Enterprise
Human Resource Systems (Continued) An Employee Recordkeeping System
Figure 2-11
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
29
Management Information Systems
Chapter - Information Systems in the Enterprise
Business Processes and Information Systems
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
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
30
Management Information Systems
Chapter - Information Systems in the Enterprise
Business Processes and Information Systems
(Continued)
• Information systems help organizations achieve great
efficiencies by automating parts of processes
• IS also contributes to completely rethinking processes.
• Business processes typically span several different functional
areas.
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
31
Management Information Systems
Chapter - Information Systems in the Enterprise
Examples of Business Processes
Manufacturing and production:
• Assembling product, checking quality, producing
bills of materials
Sales and marketing:
• Identifying customers, creating customer
awareness, selling
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
Table 2.6
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
32
Management Information Systems
Chapter - Information Systems in the Enterprise
Finance & accounting:
• Paying creditors, creating financial statements, managing cash
accounts
Human resources:
• Hiring employees, evaluating performance, enrolling employees in
benefits plans
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
Examples of Business Processes (Continued)
Table 2.6 continuedChapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
33
Management Information Systems
Chapter - Information Systems in the Enterprise
Business Processes and Information Systems
Cross-Functional Business Processes:
• Transcend boundary between sales, marketing, manufacturing, and
research and development
• Group employees from different functional specialties to a
complete piece of work
Example: Order Fulfillment Process
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
34
Management Information Systems
Chapter - Information Systems in the Enterprise
The Order Fulfillment Process
Figure 2-12
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
35
Management Information Systems
Chapter - Information Systems in the Enterprise
Systems for Enterprise-Wide Process Integration
Enterprise applications:
• Designed to support organization-wide process coordination and
integration
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
36
Consist of :
• Enterprise systems
• Supply chain management systems
• Customer relationship management systems
• Knowledge management systems
Management Information Systems
Chapter - Information Systems in the Enterprise
Systems for Enterprise-Wide Process Integration
(Continued)
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
37
Management Information Systems
Chapter - Information Systems in the Enterprise
Enterprise Systems
• Enterprise systems, also known as enterprise resource planning
(ERP) systems, provide a single information system for
organization-wide coordination and integration of key business
processes.
• Information that was previously fragmented in different systems
can seamlessly flow throughout the firm so that it can be shared by
business processes in manufacturing, accounting, human
resources, and other areas.
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
38
Management Information Systems
Chapter - Information Systems in the Enterprise
Enterprise Application Architecture
Figure 2-13
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
39
Management Information Systems
Chapter - Information Systems in the Enterprise
Traditional “Silo” View of Information Systems
Within the business:
• There are functions, each having its uses of information systems
Outside the organization’s boundaries:
• There are customers and vendors
Functions tend to work in isolation
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
40
Management Information Systems
Chapter - Information Systems in the Enterprise
Traditional View of Systems
Figure 2-14
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
41
Management Information Systems
Chapter - Information Systems in the Enterprise
Enterprise Systems
Figure 2-15
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
42
Management Information Systems
Chapter - Information Systems in the Enterprise
Benefits of Enterprise Systems
• Help to unify the firm’s structure and organization: One
organization
• Management: Firm wide knowledge-based management processes
• Technology: Unified platform
• Business: More efficient operations & customer-driven business
processes
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
43
Management Information Systems
Chapter - Information Systems in the Enterprise
Challenges of Enterprise Systems
• Difficult to build: Require fundamental changes in the way the
business operates
• Technology: Require complex pieces of software and large
investments of time, money, and expertise
• Centralized organizational coordination and decision making: Not
the best way for the firms to operate
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
44
Management Information Systems
Chapter - Information Systems in the Enterprise
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
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
45
Management Information Systems
Chapter - Information Systems in the Enterprise
• Helps in procurement of materials, transformation of raw
materials into intermediate and 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
Supply Chain Management (SCM)
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
46
Management Information Systems
Chapter - Information Systems in the Enterprise
Haworth’s Supply Chain Management Systems
Figure 2-16
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
47
Management Information Systems
Chapter - Information Systems in the Enterprise
Information from Supply Chain Management
Systems helps firms:
• Decide when and what to produce, store, and move
• Rapidly communicate orders
• Track the status of orders
• Check inventory availability and monitor inventory levels
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
48
Management Information Systems
Chapter - Information Systems in the Enterprise
Information from Supply Chain Management
Systems helps firms: (Continued)
• Reduce inventory, transportation, and warehousing costs
• Track shipments
• Plan production based on actual customer demand
• Rapidly communicate changes in product design
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
49
Management Information Systems
Chapter - Information Systems in the Enterprise
Customer Relationship Management (CRM)
• Manages all ways used by firms to deal with existing and potential
new customers
• Business and technology discipline
• Uses information system to coordinate entire business processes of
a firm
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
50
Management Information Systems
Chapter - Information Systems in the Enterprise
Customer Relationship Management (CRM)
(Continued)
• 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
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
51
Management Information Systems
Chapter - Information Systems in the Enterprise
Customer Relationship Management (CRM)
Figure 2-17
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
52
Management Information Systems
Chapter - Information Systems in the Enterprise
Knowledge Management Systems
• Collects relevant knowledge and make it available wherever and
whenever it is needed
• Support business processes and management decisions
• Also link the firm to external sources of knowledge
• Support processes for acquiring, storing, distributing, and applying
knowledge
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
53
Management Information Systems
Chapter - Information Systems in the Enterprise
• There are extraordinary opportunities to use information systems
to achieve business value, and increase profitability
MANAGEMENT OPPORTUNITIES, CHALLENGES, AND
SOLUTIONS
Management Opportunities:
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
54
Management Information Systems
Chapter - Information Systems in the Enterprise
• Integration and the whole firm view: Given the different interests
and perspectives within a firm, it is difficult to achieve consensus
about the need for the "whole firm" viewpoint.
• Management and employee training: Training a large number of
employees on many systems in a large organization involves
commensurately large investments.
MANAGEMENT OPPORTUNITIES, CHALLENGES, AND
SOLUTIONS
Management Challenges:
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
55
Management Information Systems
Chapter - Information Systems in the Enterprise
• Accounting for the cost of systems and managing demands for
systems: Given the large number of different types of systems in a
firm, and the large number of people involved with using them, it
is a complex task to understand which systems are truly necessary
and productive with high returns on investment
MANAGEMENT OPPORTUNITIES, CHALLENGES, AND
SOLUTIONS
Management Challenges: (Continued)
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
56
Management Information Systems
Chapter - Information Systems in the Enterprise
MANAGEMENT OPPORTUNITIES, CHALLENGES, AND
SOLUTIONS
Solution Guidelines:
• Inventory the firm’s information systems: Develop
a list of firm-wide information requirements to give
a 360-degree view of the most important
information needs of the firm.
• Employee and management education: Ensure that
you understand how much training is required.
• Account for the costs and benefits: Develop an
accounting system for information services firm-
wide.
Chapter: Information Systems in the Enterprise
Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon
57

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Information systems in the enterprise

  • 1. Information Systems in the Enterprise 1 Management Information Systems
  • 2.  Challenge: monthly changes in fashions; Mango has 731 stores in 72 countries  Solutions. Inventory replenishment system tracks all sales and matches stores with inventory.  Design teams meet weekly to adjust to trends.  Distribution system allocates bar-coded items to specific stores based on store/product mix.  Reduces time to market, increases agility  Increases accuracy of decision making Management Information Systems Chapter - Information Systems in the Enterprise Mango Case: Fast Fashion, Hot Systems Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 2
  • 3. Management Information Systems Chapter - Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Types of Information Systems Figure 2-1 Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 3
  • 4. Management Information Systems Chapter - Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Different Kinds of Systems 1. Operational-level systems: support operational managers, keeping track of the elementary activities and transactions 2. Management-level systems: serve the monitoring, controlling, decision-making, and administrative activities 3. Strategic-level systems: help senior management tackle and address strategic issues Three main categories of information systems serve different organizational levels: Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 4
  • 5. Management Information Systems Chapter - Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Major Types of Systems • Transaction Processing Systems (TPS) • Management Information Systems (MIS) • Decision-Support Systems (DSS) • Executive Support Systems (ESS) Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 5
  • 6. Management Information Systems Chapter - Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS The Four Major Types of Information Systems Figure 2-2 Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 6
  • 7. Management Information Systems Chapter - Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Transaction Processing Systems (TPS) • Basic business systems that serve the operational level • A computerized system that performs and records the daily routine transactions necessary to the conduct of the business Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 7
  • 8. Management Information Systems Chapter - Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS A Symbolic Representation for a Payroll TPS Figure 2-3 Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 8
  • 9. Management Information Systems Chapter - Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Typical Applications of TPS Figure 2-4 Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 9
  • 10. Management Information Systems Chapter - Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Management Information Systems (MIS) Management level • Inputs: High volume transaction level data • Processing: Simple models • Outputs: Summary reports • Users: Middle managers Example: Annual budgetingChapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 10
  • 11. Management Information Systems Chapter - Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Management Information Systems (MIS) (continued) Figure 2-5 Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 11
  • 12. Management Information Systems Chapter - Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Management Information Systems (MIS) (continued) Figure 2-6 A sample MIS report Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 12
  • 13. Management Information Systems Chapter - Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Decision-Support Systems (DSS) Management level • Inputs: Transaction level data • Processing: Interactive • Outputs: Decision analysis • Users: Professionals, staff Example: Contract cost analysis Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 13
  • 14. Management Information Systems Chapter - Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Decision-Support Systems (DSS) (Continued) Voyage-estimating decision-support system Figure 2-7 Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 14
  • 15. Management Information Systems Chapter - Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS EXECUTIVE SUPPORT SYSTEMS (ESS): • Inputs: Aggregate data • Processing: Interactive • Outputs: Projections • Users: Senior managers Example: 5 year operating planChapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 15
  • 16. Management Information Systems Chapter - Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Model of a Typical Executive Support System Figure 2-8 Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 16
  • 17. Management Information Systems Chapter - Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS EXECUTIVE SUPPORT SYSTEMS (ESS) (Continued) • Top Level Management • Designed to the individual senior manager • Ties CEO to all levels • Very expensive to keep up • Extensive support staffChapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 17
  • 18. Management Information Systems Chapter - Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Relationship of Systems to One Another Interrelationships among systems Figure 2-9 Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 18
  • 19. Management Information Systems Chapter - Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Relationship of Systems to One Another In contemporary digital firms, the different types of systems are closely linked to one another. This is the ideal. In traditional firms these systems tend to be isolated from one another, and information does not flow seamlessly from one end of the organization to the other. Efficiency and business value tend to suffer greatly in these traditional firms Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 19
  • 20. Management Information Systems Chapter - Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Sales and 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 Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 20
  • 21. Management Information Systems Chapter - Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Sales and Marketing Systems SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL Order processing Enter, process, and track orders Operational Pricing analysis Determine prices for products and services Management Sales trend forecasting Prepare 5-year sales forecasts Strategic Table 2-2 Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 21
  • 22. Management Information Systems Chapter - Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Manufacturing and 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 Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 22
  • 23. Management Information Systems Chapter - Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL Machine control Control the actions of machines and equipment Operational Production planning Decide when and how many products should be produced Management Facilities location Decide where to locate new production facilities Strategic Manufacturing and Production Systems Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 23
  • 24. Management Information Systems Chapter - Information Systems in the Enterprise Overview of an Inventory System Figure 2-10 SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 24
  • 25. Management Information Systems Chapter - Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Financing and Accounting Systems Major functions of systems: • Budgeting, general ledger, billing, cost accounting Major application systems: • General ledger, accounts receivable, accounts payable, budgeting, funds management systems Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 25
  • 26. Management Information Systems Chapter - Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Financing & Accounting Systems (Continued) SYSTEM DESCRIPTION ORGANIZATION- AL LEVEL Accounts receivable Tracks money owed the firm Operational Budgeting Prepares short-term budgets Management Profit planning Plans long-term profits Strategic Table 2-4 Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 26
  • 27. Management Information Systems Chapter - Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Human Resource 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 Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 27
  • 28. Management Information Systems Chapter - Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Human Resource Systems (Continued) SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL Training and development Tracks employee training, skills, and performance appraisals Operational Compensation analysis Monitors the range and distribution of employee wages, salaries, and benefits Management Human resources planning Plans the long-term labor force needs of the organization Strategic Table 2-5 Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 28
  • 29. Management Information Systems Chapter - Information Systems in the Enterprise Human Resource Systems (Continued) An Employee Recordkeeping System Figure 2-11 SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 29
  • 30. Management Information Systems Chapter - Information Systems in the Enterprise Business Processes and Information Systems 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 INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 30
  • 31. Management Information Systems Chapter - Information Systems in the Enterprise Business Processes and Information Systems (Continued) • Information systems help organizations achieve great efficiencies by automating parts of processes • IS also contributes to completely rethinking processes. • Business processes typically span several different functional areas. INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 31
  • 32. Management Information Systems Chapter - Information Systems in the Enterprise Examples of Business Processes Manufacturing and production: • Assembling product, checking quality, producing bills of materials Sales and marketing: • Identifying customers, creating customer awareness, selling INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Table 2.6 Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 32
  • 33. Management Information Systems Chapter - Information Systems in the Enterprise Finance & accounting: • Paying creditors, creating financial statements, managing cash accounts Human resources: • Hiring employees, evaluating performance, enrolling employees in benefits plans INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Examples of Business Processes (Continued) Table 2.6 continuedChapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 33
  • 34. Management Information Systems Chapter - Information Systems in the Enterprise Business Processes and Information Systems Cross-Functional Business Processes: • Transcend boundary between sales, marketing, manufacturing, and research and development • Group employees from different functional specialties to a complete piece of work Example: Order Fulfillment Process INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 34
  • 35. Management Information Systems Chapter - Information Systems in the Enterprise The Order Fulfillment Process Figure 2-12 INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 35
  • 36. Management Information Systems Chapter - Information Systems in the Enterprise Systems for Enterprise-Wide Process Integration Enterprise applications: • Designed to support organization-wide process coordination and integration INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 36
  • 37. Consist of : • Enterprise systems • Supply chain management systems • Customer relationship management systems • Knowledge management systems Management Information Systems Chapter - Information Systems in the Enterprise Systems for Enterprise-Wide Process Integration (Continued) INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 37
  • 38. Management Information Systems Chapter - Information Systems in the Enterprise Enterprise Systems • Enterprise systems, also known as enterprise resource planning (ERP) systems, provide a single information system for organization-wide coordination and integration of key business processes. • Information that was previously fragmented in different systems can seamlessly flow throughout the firm so that it can be shared by business processes in manufacturing, accounting, human resources, and other areas. INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 38
  • 39. Management Information Systems Chapter - Information Systems in the Enterprise Enterprise Application Architecture Figure 2-13 INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 39
  • 40. Management Information Systems Chapter - Information Systems in the Enterprise Traditional “Silo” View of Information Systems Within the business: • There are functions, each having its uses of information systems Outside the organization’s boundaries: • There are customers and vendors Functions tend to work in isolation INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 40
  • 41. Management Information Systems Chapter - Information Systems in the Enterprise Traditional View of Systems Figure 2-14 INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 41
  • 42. Management Information Systems Chapter - Information Systems in the Enterprise Enterprise Systems Figure 2-15 INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 42
  • 43. Management Information Systems Chapter - Information Systems in the Enterprise Benefits of Enterprise Systems • Help to unify the firm’s structure and organization: One organization • Management: Firm wide knowledge-based management processes • Technology: Unified platform • Business: More efficient operations & customer-driven business processes INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 43
  • 44. Management Information Systems Chapter - Information Systems in the Enterprise Challenges of Enterprise Systems • Difficult to build: Require fundamental changes in the way the business operates • Technology: Require complex pieces of software and large investments of time, money, and expertise • Centralized organizational coordination and decision making: Not the best way for the firms to operate INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 44
  • 45. Management Information Systems Chapter - Information Systems in the Enterprise 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 INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 45
  • 46. Management Information Systems Chapter - Information Systems in the Enterprise • Helps in procurement of materials, transformation of raw materials into intermediate and 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 Supply Chain Management (SCM) INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 46
  • 47. Management Information Systems Chapter - Information Systems in the Enterprise Haworth’s Supply Chain Management Systems Figure 2-16 INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 47
  • 48. Management Information Systems Chapter - Information Systems in the Enterprise Information from Supply Chain Management Systems helps firms: • Decide when and what to produce, store, and move • Rapidly communicate orders • Track the status of orders • Check inventory availability and monitor inventory levels INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 48
  • 49. Management Information Systems Chapter - Information Systems in the Enterprise Information from Supply Chain Management Systems helps firms: (Continued) • Reduce inventory, transportation, and warehousing costs • Track shipments • Plan production based on actual customer demand • Rapidly communicate changes in product design INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 49
  • 50. Management Information Systems Chapter - Information Systems in the Enterprise Customer Relationship Management (CRM) • Manages all ways used by firms to deal with existing and potential new customers • Business and technology discipline • Uses information system to coordinate entire business processes of a firm INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 50
  • 51. Management Information Systems Chapter - Information Systems in the Enterprise Customer Relationship Management (CRM) (Continued) • 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 INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 51
  • 52. Management Information Systems Chapter - Information Systems in the Enterprise Customer Relationship Management (CRM) Figure 2-17 INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 52
  • 53. Management Information Systems Chapter - Information Systems in the Enterprise Knowledge Management Systems • Collects relevant knowledge and make it available wherever and whenever it is needed • Support business processes and management decisions • Also link the firm to external sources of knowledge • Support processes for acquiring, storing, distributing, and applying knowledge INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 53
  • 54. Management Information Systems Chapter - Information Systems in the Enterprise • There are extraordinary opportunities to use information systems to achieve business value, and increase profitability MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS Management Opportunities: Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 54
  • 55. Management Information Systems Chapter - Information Systems in the Enterprise • Integration and the whole firm view: Given the different interests and perspectives within a firm, it is difficult to achieve consensus about the need for the "whole firm" viewpoint. • Management and employee training: Training a large number of employees on many systems in a large organization involves commensurately large investments. MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS Management Challenges: Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 55
  • 56. Management Information Systems Chapter - Information Systems in the Enterprise • Accounting for the cost of systems and managing demands for systems: Given the large number of different types of systems in a firm, and the large number of people involved with using them, it is a complex task to understand which systems are truly necessary and productive with high returns on investment MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS Management Challenges: (Continued) Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 56
  • 57. Management Information Systems Chapter - Information Systems in the Enterprise MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS Solution Guidelines: • Inventory the firm’s information systems: Develop a list of firm-wide information requirements to give a 360-degree view of the most important information needs of the firm. • Employee and management education: Ensure that you understand how much training is required. • Account for the costs and benefits: Develop an accounting system for information services firm- wide. Chapter: Information Systems in the Enterprise Source: Management Information Systems by Kenneth C. Laudon, Jane P. Laudon 57