Mis - CH 2

Chapter
E-Business:
How Business use
Information System
Essentials of Management Information Systems

Chapter 2 Information Systems in the Enterprise
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Types of Information Systems

Major Types of Systems
Executive Support Systems (ESS)

Decision Support Systems (DSS)
Management Information Systems (MIS)
Knowledge Work Systems (KWS)
Office Automation Systems (OAS)
Transaction Processing Systems (TPS)

TYPES OF INFORMATION SYSTEMS

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

Payroll TPS

Types of TPS Systems

Knowledge Work Systems (KWS):

Knowledge level
Inputs: Design specs
Processing: Modeling
Outputs: Designs, graphics
Users: Technical staff
Example: Engineering work station

Management Information System (MIS):

Management level
Inputs: High volume data
Processing: Simple models
Outputs: Summary reports
Users: Middle managers
Example: Annual budgeting

Management Information System (MIS)

Management Information System (MIS)
Structured and semi-structured decisions

Report control oriented
Past and present data
Internal orientation
Lengthy design process

Decision Support System (DSS):

Management level
Inputs: Low volume data
Processing: Interactive
Outputs: Decision analysis
Users: Professionals, staff
Example: Contract cost analysis

Decision Support System (DSS)

Decision Support System (DSS)

Executive Support System (ESS):

Strategic level
Inputs: Aggregate data
Processing: Interactive
Outputs: Projections
Users: Senior managers
Example: 5-year operating plan

Executive Support System (ESS)

Executive support system (ESS)
Top level management

Designed to the individual
Ties CEO to all levels
Very expensive to keep up
Extensive support staff

INTERRELATIONSHIPS AMONG SYSTEMS

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

Sales and Marketing Systems
SYSTEM
DESCRIPTION
ORDER PROCESSING ENTER, PROCESS, TRACK ORDERS
ORGANIZATIONAL LEVEL
OPERATIONAL
MARKET ANALYSIS
IDENTIFY CUSTOMERS & MARKETS KNOWLEDGE
PRICING ANALYSIS
DETERMINE PRICES
MANAGEMENT
SALES TRENDS
PREPARE 5-YEAR FORECASTS
STRATEGIC

Manufacturing and Production Systems

Scheduling, purchasing, shipping,
receiving, engineering, operations

Materials resource planning systems,
purchase order control systems,
engineering systems, quality control
systems

Manufacturing and Production Systems
SYSTEM
MACHINE CONTROL
DESCRIPTION
CONTROL ACTIONS OF EQUIPMENT
OPERATIONAL
COMPUTER-AIDED-DESIGN DESIGN NEW PRODUCTS
KNOWLEDGE
PRODUCTION PLANNING
DECIDE NUMBER, SCHEDULE OF PRODUCTS
MANAGEMENT
FACILITIES LOCATION
DECIDE WHERE TO LOCATE FACILITIES
STRATEGIC

Overview of Inventory Systems

Financing and Accounting Systems

Budgeting, general ledger, billing, cost
accounting

General ledger, accounts receivable,
accounts payable, budgeting, funds
management systems

Financing and Accounting Systems

SYSTEM
DESCRIPTION
ACCOUNTS RECEIVABLE TRACK MONEY OWED TO FIRM
OPERATIONAL
PORTFOLIO ANALYSIS
DESIGN FIRM'S INVESTMENTS
KNOWLEDGE
BUDGETING
PREPARE SHORT TERM BUDGETS MANAGEMENT
PROFIT PLANNING
PLAN LONG-TERM PROFITS
STRATEGIC

Human Resource Systems

Personnel records, benefits,
compensation, labor relations, training

Payroll, employee records, benefit
systems, career path systems, personnel
training systems


SYSTEM
DESCRIPTION
TRAINING & DEVELOPMENT
TRACK TRAINING, SKILLS, APPRAISALS
OPERATIONAL
CAREER PATHING
DESIGN EMPLOYEE CAREER PATHS
KNOWLEDGE
COMPENSATION ANALYSIS
MONITOR WAGES, SALARIES, BENEFITS
MANAGEMENT
HUMAN RESOURCES PLANNING PLAN LONG-TERM LABOR FORCE NEEDS
STRATEGIC


INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
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

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


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

Supply Chain
Network of organizations and business
processes
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

How Information Systems Facilitate Supply Chain Management
Decide when, what to produce, store, move

Rapidly communicate orders
Communicate orders, track order status
Check inventory availability, monitor levels
Track shipments
Plan production based on actual demand
Rapidly communicate product design change
Provide product specifications
Share information about defect rates, returns

Knowledge Management System
Knowledge about how to create, produce and

deliver products and services
Enable organizations to better manage
processes for capturing and applying
knowledge and expertise
Process of acquiring, storing, distributing and
applying knowledge

Intranet and Extranet
Intranet connect internal company transaction

systems, enabling employees to take actions
central to a companys operations
Extranet expedite the flow of information
between the firm and its suppliers and
customers.

Collaboration and Communication Systems
Internet-based Collaboration Environment

E-mail and Instant Messaging (IM)
Cell Phones and Smart phones
Social Networking
Wikis
Virtual Worlds

E-Business, E-Commerce and E-Government
E-business refers to the use of digital

technology and the internet to execute the major
business processes in the enterprise. Ebusiness includes activities for the internal
management of the firm and for coordination
with suppliers and other business partners.
E-commerce is the part of e-business that deals
with the buying and selling of goods and
services over the internet. It includes activities
supporting those market transactions, such as
advertising, marketing, customer support,
delivery, payment, etc.

E-Business, E-Commerce and E-Government
E-government refers to the application of the

internet and networking technologies to
digitally enable government and public sector
agencies
relationships
with
citizens,
businesses and other arms of government.
Makes government operations more efficient
and empower citizens by giving them easier
access to information and ability to network
electronically with other citizens

The Information Systems Function in Business
The Information System Department
Programmers are highly trained technical specialists

who write software instructions for computers.
System Analysts constitute the principal liaison
between the information systems groups and the rest
of the organization and translates the business
problems and requirements into information
requirements and systems.
Information system managers are leaders of teams of
programmers and analysts, or database specialists.

The Information Systems Function in Business
The Information System Department
Chief Information Officer (CIO) is a senior manager who

oversees the use of information technology in the firm.
Chief Security Office (CSO) is in-charge of information
systems security for the firm and is responsible for
enforcing the firms information security policy
Chief Privacy Officer (CPO) is responsible for ensuring
that the company complies with existing data privacy laws.
Chief Knowledge officer (CKO) is responsible for firms
knowledge management programmes
End-users are representatives of departments outside of
the information systems group for whom applications are
developed.
Thank You

Mis - CH 2

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Chapter

Essentials of Management Information Systems

Types of Information Systems

Essentials of Management Information Systems

Major Types of Systems

Executive Support Systems (ESS)

Essentials of Management Information Systems

Essentials of Management Information Systems

Transaction Processing Systems (TPS):

Essentials of Management Information Systems

Essentials of Management Information Systems

Types of TPS Systems

Essentials of Management Information Systems

Knowledge Work Systems (KWS):

Essentials of Management Information Systems

Management Information System (MIS):

Essentials of Management Information Systems

Management Information System (MIS)

Essentials of Management Information Systems

Management Information System (MIS)

Structured and semi-structured decisions

Essentials of Management Information Systems

Decision Support System (DSS):

Essentials of Management Information Systems

Decision Support System (DSS)

Essentials of Management Information Systems

Decision Support System (DSS)

Essentials of Management Information Systems

Executive Support System (ESS):

Essentials of Management Information Systems

Executive Support System (ESS)

Essentials of Management Information Systems

Executive support system (ESS)

Top level management

Essentials of Management Information Systems

Essentials of Management Information Systems

Sales and Marketing Systems

Major functions of systems:

Major application systems:

Essentials of Management Information Systems

Sales and Marketing Systems

ORDER PROCESSING ENTER, PROCESS, TRACK ORDERS

IDENTIFY CUSTOMERS & MARKETS KNOWLEDGE

PREPARE 5-YEAR FORECASTS

Essentials of Management Information Systems

Manufacturing and Production Systems

Major functions of systems:

Major application systems:

Essentials of Management Information Systems

Manufacturing and Production Systems

COMPUTER-AIDED-DESIGN DESIGN NEW PRODUCTS

DECIDE NUMBER, SCHEDULE OF PRODUCTS

DECIDE WHERE TO LOCATE FACILITIES

Essentials of Management Information Systems

Overview of Inventory Systems

Essentials of Management Information Systems

Financing and Accounting Systems

Major functions of systems:

Major application systems:

Essentials of Management Information Systems

Financing and Accounting Systems

ACCOUNTS RECEIVABLE TRACK MONEY OWED TO FIRM