INFORMATION SYSTEMS IN THE ORGANIZATION

2.1Copyright © 2005 Pearson Education Canada Inc.

Management Information Systems,Management Information Systems, Second Canadian Edition Second Canadian Edition

Chapter 2: Information Systems in the OrganizationChapter 2: Information Systems in the Organization

INFORMATION INFORMATION

SYSTEMS IN THESYSTEMS IN THE

ORGANIZATIONORGANIZATION




• Major Types of Systems in Organizations:Major Types of Systems in Organizations:

– Transaction Processing Systems

– Office Systems

– Knowledge Worker Systems (KWS)

– Decision Support Systems (DSS

– Management Information Systems (MIS)

– Executive Support Systems (ESS)

• Integration of business processesIntegration of business processes

– Supply Chain Management (SCM)

– Collaborative Commerce

– Customer Relationship Management (CRM)

– Enterprise systems

• Need for management attention to business processesNeed for management attention to business processes

OBJECTIVES of CHAPTER




• Operational-Level SystemsOperational-Level Systems• Monitor elementary activities

• Knowledge-Level SystemsKnowledge-Level Systems• Support knowledge and data workers

• Management-Level SystemsManagement-Level Systems• Support monitoring & control activities of

middle managers

• Strategic-Level SystemsStrategic-Level Systems• Support long-range planning of senior

management

MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS



Chapter 2: Information Systems in the OrganizationChapter 2: Information Systems in the OrganizationMAJOR TYPES OF SYSTEMS IN ORGANIZATIONS




Transaction Processing System (TPS):Transaction Processing System (TPS):Example: PayrollExample: Payroll• Inputs:Inputs: Employee dataEmployee data

• Processing:Processing: calculationscalculations

• Outputs:Outputs: pay pay cheques, file updates, reportscheques, file updates, reports

• Users:Users: Payroll clerks, managersPayroll clerks, managers





Knowledge Work Systems (KWS):Knowledge Work Systems (KWS):Example: Engineering work stationExample: Engineering work station• Inputs:Inputs: Design specsDesign specs

• Processing:Processing: ModelingModeling

• Outputs:Outputs: Designs, graphicsDesigns, graphics

• Users:Users: Technical staff and professionalsTechnical staff and professionals





Office Systems:Office Systems:Example: CalendaringExample: Calendaring• Inputs:Inputs: Personal schedulesPersonal schedules

• Processing:Processing: M Matching calendarsatching calendars

• Outputs:Outputs: Group schedules for meetings, Group schedules for meetings, rooms, resourcesrooms, resources

• Users:Users: Knowledge workers, support staff Knowledge workers, support staff





Management Information System (MIS):Management Information System (MIS):Example: Annual budgetingExample: Annual budgeting• Inputs:Inputs: Historical financial data, new requirements Historical financial data, new requirements

– high volume internal data, from TPS’s– database management, integration vital

• ProcessingProcessing:: DBMS DBMS Spreadsheet models Spreadsheet models– highly structured – lengthy design process

• Outputs:Outputs: Summary reports (simple graphics) Summary reports (simple graphics)• Users:Users: Middle managers Middle managers





Decision Support System (DSS):Decision Support System (DSS):Example: Contract cost analysisExample: Contract cost analysis• Inputs:Inputs: Low-volume internal data, external data Low-volume internal data, external data

• Processing: Processing: Interactive Interactive analytical models and analytical models and data analysis toolsdata analysis tools– used to support semi-structured decision-making

• Outputs:Outputs: Decision analysis Decision analysis

• Users:Users: Professionals, staff Professionals, staff





Executive Support System (ESS):Executive Support System (ESS):Example: 5-year operating planExample: 5-year operating plan• Inputs:Inputs: Aggregate data Aggregate data

– internal and external

• Processing:Processing: Interactive, unstructured Interactive, unstructured– complex programming and support needed

• Outputs:Outputs: Projections, advanced graphics Projections, advanced graphics

• Users:Users: Senior managers Senior managers







– Office Systems















Traditional View of SystemsTraditional View of Systems

• Within the business: Within the business: – Separate business processes*, each with its own information system

• Outside the organization’s boundaries:Outside the organization’s boundaries:– Customers and vendors – Contact requires human intermediary

Functions tend to work in isolationFunctions tend to work in isolation

* “The unique ways in which organizations organize work activities, information, and knowledge to produce a product or service.”

INTEGRATION OF BUSINESS PROCESSES



Chapter 2: Information Systems in the OrganizationChapter 2: Information Systems in the OrganizationINTEGRATION OF BUSINESS PROCESSES




Integration is needed because Business Processes are often Cross-functional





Enterprise SystemsEnterprise Systems• Technology platform allowing Technology platform allowing

integration of business processes integration of business processes across departments and levelsacross departments and levels

• Also known as Enterprise Resource Also known as Enterprise Resource Planning Systems (ERP)Planning Systems (ERP)

• Requires central, unified database Requires central, unified database managementmanagement




Enterprise Systems





• Benefits of ERPBenefits of ERP• Firm-wide knowledge-based management Firm-wide knowledge-based management

processesprocesses• Unified technologyUnified technology platformplatform• More efficient operationsMore efficient operations• customer-driven business processescustomer-driven business processes

• ChallengesChallenges• Complex technologyComplex technology• Need to rework business processesNeed to rework business processes• Centralized decision making may not Centralized decision making may not

work for all organizationswork for all organizations




Supply Chain Management (SCM)Supply Chain Management (SCM)• Close linkage of activities involved inClose linkage of activities involved in

– buying raw materials– making product– distributing product to customers

• Reduces time, redundant effort, and Reduces time, redundant effort, and inventory costsinventory costs





• Supply Chain Planning System:Supply Chain Planning System:

– generate forecasts for a product– develop sourcing and manufacturing plan

• Supply Chain Execution System:Supply Chain Execution System:

– Manage flow of products through distribution centers

• Challenges:Challenges:

– Inefficiencies can waste as much as 25% of a company’s operating costs– Bullwhip Effect– Reverse Logistics




Collaborative CommerceCollaborative Commerce• Collaborative Planning, Forecasting, and Collaborative Planning, Forecasting, and

Replenishment (CPFR)Replenishment (CPFR)• Firms & their suppliers cooperate to: Firms & their suppliers cooperate to:

– Formulate demand forecasts– Develop production plans – Coordinate shipping, warehousing and

stocking activities





Customer Relationship Management Customer Relationship Management (CRM)(CRM)

• Manages all ways used by firms to deal with customersManages all ways used by firms to deal with customers• Uses IS to integrate all business processes involved:Uses IS to integrate all business processes involved:

– sales & marketing– billing– service– ‘end-to-end’ customer care

• Provides a unified view of customer across the companyProvides a unified view of customer across the company• Consolidates customer data from multiple sourcesConsolidates customer data from multiple sources• Provides analytical tools for answering questionsProvides analytical tools for answering questions




Customer Relationship Management (CRM)

2.2 ENTERPRISE APPLICATIONS






– Office Systems












INFORMATION SYSTEMS IN THE ORGANIZATION

Documents

Transcript of INFORMATION SYSTEMS IN THE ORGANIZATION