Aula 2 07032013 sii-v1

Sistemas de Informação
para a Indústria

Class 2

Impact of Informations Systems.
Typologies of IS.
Ano 2013

António Grilo
Prof. Auxiliar FCT-UNL

Sistemas de Informação para Indústria 1
Departamento de Engenharia Mecânica e Industrial © António Grilo 2013

DEFINING INFORMATION

What is an Information System?

A set of interrelated components that collect (or retrieve), process, store,
and distribute information to support decision making and control in an
organization. (Laudon, 2012)

Information systems are implemented within an organization for the
purpose of improving the effectiveness and efficiency of that organization.

Capabilities of the information system and characteristics of the
organization, its work systems, its people, and its development and
implementation methodologies together determine the extent to which that
purpose is achieved.


DATA, INFORMATION, KNOWLEDGE

Data, Information and Knowledge have different meanings:

Data: Streams of raw facts representing events such as business
transactions

Information: Clusters of facts that are meaningful and useful to human
beings in the processes such as making decisions

Knowledge: Capability to transform information in something that is
valuable to the person or organization.


INFORMATION SYSTEMS AS A SYSTEM…
Information systems have different functions:

Input: Captures raw data from organization or external environment
Processing: Converts raw data into meaningful form
Output: Transfers processed information to people or activities that use it
Feedback: Output returned to appropriate members of organization to
help evaluate or correct input stage

IMPACT OF INFORMATION SYSTEMS ON ORGANIZATIONS

There has been a widening Scope of Information Systems on organizations:



There is a growing interdependence between a firm’s information systems and its
business capabilities. Changes in strategy, rules, and business processes
increasingly require changes in hardware, software, databases, and
telecommunications. Often, what the organization would like to do depends on
what its systems will permit it to do.



Business firms invest heavily in information systems to achieve six
strategic business objectives:

• Operational excellence

• New products, services, and business models

• Customer and supplier intimacy

• Improved decision making

• Competitive advantage

• Survival


FLATENNING ORGANIZATIONS


SEPARTING WORK FROM LOCATION


REDESIGNING WORKFLOWS


REDEFINING ORGANIZATIONAL BOUNDARIES


INFORMATION SYSTEMS TYPOLOGIES


TRANSACTION PROCESSING SYSTEMS

• Perform and record daily routine transactions necessary to conduct
business, e.g. sales order entry, payroll, shipping

• Allow managers to monitor status of operations and relations with
external environment

• Serve operational levels

• Serve predefined, structured goals and decision making


MANAGEMENT INFORMATION SYSTEMS

• Serve middle management

• Provide reports on firm’s current performance, based on data from TPS
•
• Provide answers to routine questions with predefined procedure for
answering them

• Typically have little analytic capability


DECISION SUPPORT SYSTEMS

• Serve middle management

• Support non-routine decision making, e.g. What is impact on production
schedule if December sales doubled?

• Often use external information as well from TPS and MIS

• Model driven DSS, e.g. voyage-estimating systems

• Data driven DSS, e.g. marketing analysis systems


DECISION SUPPORT SYSTEMS


EXECUTIVE INFORMATION SYSTEMS


BUSINESS APPLICATIONS

Many information systems transcend boundary between functional areas like sales,
marketing, manufacturing, and research and development. Hence, group employees
from different functional specialties are required to a complete piece of work.


BUSINESS APPLICATIONS

Applications must not be islands of functionality and are indeed cross-functions.


BUSINESS APPLICATIONS ARE BASED ON PROCESSES


CLASSES OF BUSINESS APPLICATIONS

• Database Management Systems (DBMS)
• Enterprise Resource Planning (ERP)
• Customer Relationship Management (CRM)
• Supply Chain Management (SCM)
• Warehouse Management System (WMS)
• Radio-Frequency Identification and Tags (RFID)
• Electronic Document Management and Workflow (EDM-Wfl)
• Content Management Systems (CMS)
• Geospatial Information Systems (GIS)
• Project Management Information Systems (PMIS)
• Product Data Management Systems (PDMS)
• Computer Integrated Manufacturing (CIM)

ENTERPRISE RESOURCE PLANNING
Enterprise resource planning (ERP) systems integrate internal and external
management information across an entire organization, embracing
finance/accounting, manufacturing, sales and service, etc. ERP systems automate
this activity with an integrated software application. Their purpose is to facilitate the
flow of information between all business functions inside the boundaries of the
organization.


CUSTOMER RELATIONSHIP MANAGEMENT
Customer Relationship Management (CRM) is a widely implemented application for
managing a company’s interactions with customers, clients and sales prospects. It involves
using technology to organize, automate, and synchronize business processes—principally
sales activities, but also those for marketing, customer service, and technical support.


CUSTOMER RELATIONSHIP MANAGEMENT


SUPPLY CHAIN MANAGEMENT
Supply chain management (SCM) is the management of a network of interconnected
businesses involved in the ultimate provision of product and service packages required by
end customers. Supply chain management spans all movement and storage of raw
materials, work-in-process inventory, and finished goods from point of origin to point of
consumption (supply chain).



Supply chain planning systems
• Demand planning
• Order planning
• Advanced scheduling and manufacturing planning
• Distribution planning
• Transportation planning

Supply chain execution systems
Manage flow of products through distribution centers and warehouses to ensure
products delivered to right locations in most efficient manner
• Order commitments
• Final production
• Replenishment
• Distribution management
• Reverse distribution



Push-based model (Build-to-stock) - Production master schedules based on
forecasts or best guesses of product demand; products “pushed” to customers

Pull-based model (Demand-driven, build-to-order) - With IT, manufacturers can
use only order demand information to drive schedules and procurement of
components or raw materials

Sequential supply chains - Information, materials move sequentially

Concurrent supply chains - With IT, information moves in many directions
simultaneously


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