Post on 29-Dec-2015
Prepared by Mehmet Islamoglu
2.1 © 2006 by Prentice Hall
2Chapter
Information Systems Information Systems
in thein the
EnterpriseEnterprise
Information Systems Information Systems
in thein the
EnterpriseEnterprise
Prepared by Mehmet Islamoglu
2.2 © 2006 by Prentice Hall
Challenge: monthly changes in fashions, hard to predict what will sell,
how much, in which shop; Mango has 731 stores in 72 countries.
Customer preferences change a lot from one shop to another.
Solutions. Inventory replenishment system can tell not only how much
of a product is sold in total but also how much in each store.
Design teams meet weekly to adjust designs to sales trends.
Distribution system items are bar-coded and sent to specific stores in
specific amounts depending on monthly demand forecast.
Reduces time to market, increases responsiveness, reduces shelf-
time, end-of season sales, and unsold goods.
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
Mango Case: Fast Fashion, Hot Systems
Prepared by Mehmet Islamoglu
2.3 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
1. Transaction Processing Systems (are operational-level
systems, data input is sorted and categorized)
support operational managers, keeping track of the elementary
activities and transactions, e.g. At what day and time will the
express package sent by Mehmet Islamoglu (TRNC) be
delivered to Emre Islamoglu (Cambridge, UK)?
or
Mango sales is recorded as data input into Mango TPS which
categorizes them by product, shop, date, colour, customer
type, etc.
Prepared by Mehmet Islamoglu
2.4 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
2. Management Information Systems and
3. Decision Support Systems
(are management-level systems, categorized data is taken from
TPS and summary reports (daily, weekly, monthly) are prepared
by MIS, this internal data is then enriched with external data in
DSS to help managers make decisions): serve the monitoring,
controlling, decision-making, and administrative activities e.g.
How many packages did we deliver late, to what addresses,
how late, (internal data) why? What can we do to improve
delivery reliability ? (internal and external data)
Prepared by Mehmet Islamoglu
2.5 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
In case of Mango,
MIS system will take categorized data from TPS system (e.g. sales according to shop, sales according to product, sales according to dates, sales according to customer type)and will produce summary reports from thesee.g. a bar chart showing sales of each shop for all shops in a given country.
DSS also gathers external info on competitors, gift seasons, weather, etc. for each week, month etc.
Prepared by Mehmet Islamoglu
2.6 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
4. Executive Support Systems (are strategic-level systems):
help senior management tackle and address strategic issues,
e.g. in the next 5 to 10 years, how much shall we increase our
express package delivery capacity and in which cities and
countries ?
In case of Mango,data from MIS and DSS systems are input to the ESS system to give information to top executives such aschanges in income levels of various age groups over the past decade compared with how much of these customers come to Mango versus competitors
Prepared by Mehmet Islamoglu
2.7 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Relationship of Systems to One Another
Figure 2-9
Prepared by Mehmet Islamoglu
2.8 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
The Four Major Types of Information Systems
Prepared by Mehmet Islamoglu
2.9 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Transaction Processing Systems (TPS)
• A computerized system that performs and records the daily routine transactions necessary to serve the operational decisions and enquiries
Prepared by Mehmet Islamoglu
2.10 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Typical Applications of TPS
Figure 2-4
Prepared by Mehmet Islamoglu
2.11 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Management Information Systems (MIS)
Management level
• Inputs: High volume categorized data from TPS
• Outputs: Summary reports
• Users: Middle managers
Example: Weekly or monthly sales reports
Prepared by Mehmet Islamoglu
2.12 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Management Information Systems (MIS) (continued)
Figure 2-6
A sample MIS report
Prepared by Mehmet Islamoglu
2.13 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Decision-Support Systems (DSS)
Management level
• Inputs: internal categorized data from TPS and MIS and external data from various sources
• Outputs: Decision analysis, What-if scenarios
• Users: Middle managers
Example:
Prepared by Mehmet Islamoglu
2.14 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
EXECUTIVE SUPPORT SYSTEMS (ESS):
• Inputs: Aggregate (i.e. summary) data from DSS and MIS
• Outputs: Projections, forecasts
• Users: Senior managers
Example: 5 year operating plan
Prepared by Mehmet Islamoglu
2.15 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
So far, we learned that there are four major types of
information systems in an orgn, TPS, MIS, DSS, ESS.
Now, we shall look at how each department uses
information systems. These departments areSales and MarketingManufacturing and ProductionFinancing and AccountingHuman ResourcesEach department have their own TPS, MIS, DSS.There is only one ESS.
Prepared by Mehmet Islamoglu
2.16 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Sales and Marketing Information SystemsHelp in: • Sales management, market research, promotion,
pricing, new products
Prepared by Mehmet Islamoglu
2.17 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Sales and Marketing Information 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
Prepared by Mehmet Islamoglu
2.18 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Manufacturing and Production Information Systems
Help in: • Materials resource planning (MRP) (i.e.
purchasing, shipping, receiving all coordinated with production), and quality control.
Prepared by Mehmet Islamoglu
2.19 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL
Machine control
Control the actions of machines and equipment (robotics)
Operational
Production planning
Decide when and how many products should be produced (marginal cost etc)
Management
Facilities location
Decide where to locate new production facilities (near suppliers or customers?
Strategic
Manufacturing and Production Information Systems
Prepared by Mehmet Islamoglu
2.20 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Financing and Accounting Information Systems
Major functions of systems: • Budgeting, general ledger, billing, cost Budgeting, general ledger, billing, cost
accountingaccounting
Major application systems: • General ledger, accounts receivable, accounts General ledger, accounts receivable, accounts
payable, budgeting, funds management systemspayable, budgeting, funds management systems
Prepared by Mehmet Islamoglu
2.21 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 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
Prepared by Mehmet Islamoglu
2.22 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Human Resource Systems
Major functions of systems: • Personnel records, benefits, compensation, labor Personnel records, benefits, compensation, labor
relations, trainingrelations, training
Major application systems: • Payroll, employee records, benefit systems, Payroll, employee records, benefit systems,
career path systems, personnel training systemscareer path systems, personnel training systems
Prepared by Mehmet Islamoglu
2.23 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 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
Prepared by Mehmet Islamoglu
2.24 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
Traditional information systems architecture, i.e. when each department have their own information systems, makes it very difficult for departments to coordinate activities because they cannot see each others’ data.
Example: Ordering a productExample: Ordering a product
Looks simple, but is it ?Looks simple, but is it ?
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications
Prepared by Mehmet Islamoglu
2.25 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
The Order Fulfillment Process
Figure 2-12
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications
Prepared by Mehmet Islamoglu
2.26 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
Enterprise Systems
• Enterprise systems, also known as enterprise Enterprise systems, also known as enterprise resource planning (ERP) systems, provide a resource planning (ERP) systems, provide a single information system for the whole of the single information system for the whole of the organization (one TPS, one MIS, one DSS).organization (one TPS, one MIS, one DSS).
• Each functional department (accounting, Each functional department (accounting, marketing, production, human resources) now marketing, production, human resources) now has all the data about everything, instead of has all the data about everything, instead of having just data about their own activities from having just data about their own activities from their own TPS, MIS, and DSS. Saves time and their own TPS, MIS, and DSS. Saves time and effort, no need to wait for data (soft or hard effort, no need to wait for data (soft or hard copies) from other departments.copies) from other departments.
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications
Prepared by Mehmet Islamoglu
2.27 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
Enterprise Application Architecture
Figure 2-13
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications
Prepared by Mehmet Islamoglu
2.28 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
An ERP system provides many advantagesDid he pay the deposit? Call accountingInventory employee can see whether payment has been made before allowing shipment of a product,No need to request printouts from accounting dept.How much do they want us to produce?Call productionProduction planning can be done easily since sales data (which previously only marketing department had) can be seen by production department too.Mr.Ali is asking when his order will be deliveredA salesperson can give a customer a realible promise about when the production department will complete manufacturing his/her product.
Prepared by Mehmet Islamoglu
2.29 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
ERP helps Supply Chain Management (SCM)
in procurement of materials, transformation of raw in procurement of materials, transformation of raw
materials into intermediate and finished productsmaterials into intermediate and finished products
in distribution of the finished products to customersin distribution of the finished products to customers
Includes reverse logistics - returned items flow in the Includes reverse logistics - returned items flow in the
reverse direction from the buyer back to the sellerreverse direction from the buyer back to the seller
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications
Prepared by Mehmet Islamoglu
2.30 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
ERP helps Supply Chain Management (SCM)
Managers working in SCM use ERP systems to Managers working in SCM use ERP systems to Decide when and what to produce, store, and moveDecide when and what to produce, store, and move
(plan production based on actual customer (plan production based on actual customer demand and if necessary rapidly communicate demand and if necessary rapidly communicate changes in product design to suppliers)changes in product design to suppliers)
Rapidly communicate orders and plan transport to Rapidly communicate orders and plan transport to reduce costsreduce costs
Track the status of orders and other shipmentsTrack the status of orders and other shipments
Check inventory availability and monitor inventory Check inventory availability and monitor inventory levels to reduce inventory costslevels to reduce inventory costs
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications
Prepared by Mehmet Islamoglu
2.31 © 2006 by Prentice Hall
Management Information SystemsManagement Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
ERP helps Customer Relationship Management (CRM)
Managers working in CRM use ERP systems toManagers working in CRM use ERP systems to
To share customer data (who he is, what he To share customer data (who he is, what he
wants, what has been done to serve him, what wants, what has been done to serve him, what
still needs to be done for him) with all still needs to be done for him) with all
departments.departments.
To bring together and analyse data from all To bring together and analyse data from all
departments to get a better picture of the departments to get a better picture of the
customer and how to serve him/her better.customer and how to serve him/her better.
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications