c h a p t e r

INFORMATION SYSTEMS IN THE ENTERPRISE

2.1 2002 by Prentice Hall

LEARNING OBJECTIVES
ANALYZE ROLES OF 6 TYPES OF INFORMATION SYSTEMS DESCRIBE TYPES OF INFORMATION SYSTEMS ANALYZE RELATIONSHIPS BETWEEN BUSINESS PROCESSES *
2.2 2002 by Prentice Hall

LEARNING OBJECTIVES
EXPLAIN HOW SYSTEMS & NETWORKS CREATE NEW EFFICIENCIES EVALUATE BENEFITS & LIMITATIONS OF SYSTEMS & NETWORKS *
2.3 2002 by Prentice Hall

 KEY SYSTEM APPLICATIONS FUNCTIONAL PERSPECTIVE OF SYSTEMS INTEGRATING FUNCTIONS & PROCESSES *

MANAGEMENT CHALLENGES

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2002 by Prentice Hall

1. INTEGRATION: Different systems serve variety of functions, connecting

MANAGEMENT CHALLENGES

organizational levels difficult, costly

2. ENLARGING SCOPE OF MANAGEMENT THINKING: Huge system investments, long development time must be guided by common objectives

*
2.5 2002 by Prentice Hall

TYPES OF INFORMATION SYSTEMS

KIND OF SYSTEM
STRATEGIC LEVEL

GROUPS SERVED
SENIOR MANAGERS

MANAGEMENT LEVEL

MIDDLE MANAGERS

KNOWLEDGE LEVEL

KNOWLEDGE & DATA WORKERS

OPERATIONAL OPERATIONAL MANAGERS

LEVEL
MANUFACTURING FINANCE ACCOUNTING HUMAN RESOURCES

SALES & MARKETING

2.6

2002 by Prentice Hall

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) *

2.7

2002 by Prentice Hall

TYPICAL TPS APPLICATIONS Sales & 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 *
2.8 2002 by Prentice Hall

TYPICAL TPS APPLICATIONS

Manufacturing & Production Systems

2.9

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 2002 by Prentice Hall *

TYPICAL TPS APPLICATIONS

Finance & 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 *
2.10 2002 by Prentice Hall

TYPICAL TPS APPLICATIONS

Human Resources 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 2.11 2002 by Prentice Hall *

TYPICAL TPS APPLICATIONS Other Types (e.g., University)

MAJOR FUNCTIONS OF SYSTEMS: Admissions, grade records, course records, alumni MAJOR APPLICATION SYSTEMS: Registration system, student transcript system, curriculum class control system, alumni benefactor system 2.12 2002 by Prentice Hall *

KNOWLEDGE WORK SYSTEMS (KWS) KNOWLEDGE LEVEL INPUTS: DESIGN SPECS PROCESSING: MODELLING OUTPUTS: DESIGNS, GRAPHICS USERS: TECHNICAL STAFF EXAMPLE: ENGINEERING WORK STATION

2.13

2002 by Prentice Hall

OFFICE AUTOMATION SYSTEMS (OAS) TOWARD A PAPERLESS OFFICE REDESIGN OF WORK FLOW INTEGRATED SOFTWARE ERGONOMIC DESIGN BRIGHT, CHEERFUL WORK SPACE

EXAMPLE: PRESENTATION GRAPHICS

2.14 2002 by Prentice Hall

MANAGEMENT INFORMATION SYSTEMS (MIS) MANAGEMENT LEVEL INPUTS: HIGH VOLUME DATA PROCESSING: SIMPLE MODELS OUTPUTS: SUMMARY REPORTS USERS: MIDDLE MANAGERS EXAMPLE: ANNUAL BUDGETING
2.15 2002 by Prentice Hall

MANAGEMENT INFORMATION SYSTEMS (MIS) STRUCTURED & SEMISTRUCTURED DECISIONS REPORT CONTROL ORIENTED PAST & PRESENT DATA INTERNAL ORIENTATION LENGTHY DESIGN PROCESS *
2.16 2002 by Prentice Hall

TPS DATA FOR MIS APPLICATIONS

TPS
Order Processing System ORDER FILE Materials Resource Planning System PRODUCTION MASTER FILE General Ledger System ACCOUNTING FILES SALES DATA UNIT PRODUCT COST PRODUC T CHANGE DATA EXPENSE DATA MIS FILES

MIS

MIS

REPORTS

MANAGERS

2.17

2002 by Prentice Hall

DECISION SUPPORT SYSTEMS (DSS) MANAGEMENT LEVEL INPUTS: LOW VOLUME DATA PROCESSING: INTERACTIVE OUTPUTS: DECISION ANALYSIS USERS: PROFESSIONALS, STAFF EXAMPLE: CONTRACT COST ANALYSIS
2.18 2002 by Prentice Hall

DECISION SUPPORT SYSTEMS (DSS) FLEXIBLE, ADAPTABLE, QUICK USER CONTROLS INPUTS/OUTPUTS NO PROFESSIONAL PROGRAMMING SUPPORTS DECISION PROCESS SOPHISTICATED MODELING TOOLS *
2002 by Prentice Hall

2.19

EXECUTIVE SUPPORT SYSTEMS (ESS) STRATEGIC LEVEL INPUTS: AGGREGATE DATA PROCESSING: INTERACTIVE OUTPUTS: PROJECTIONS USERS: SENIOR MANAGERS EXAMPLE: 5 YEAR OPERATING PLAN
2.20 2002 by Prentice Hall

EXECUTIVE SUPPORT SYSTEMS (ESS) TOP LEVEL MANAGEMENT DESIGNED TO THE INDIVIDUAL TIES CEO TO ALL LEVELS VERY EXPENSIVE TO KEEP UP EXTENSIVE SUPPORT STAFF *
2002 by Prentice Hall

2.21

INTERRELATIONSHIPS AMONG SYSTEMS

ESS

MIS

DSS

KWS OAS
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TPS
2002 by Prentice Hall

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE SALES & MARKETING SYSTEMS MANUFACTURING & PRODUCTION SYSTEMS FINANCE & ACCOUNTING SYSTEMS HUMAN RESOURCES SYSTEMS *

2.23

2002 by Prentice Hall

SALES & MARKETING INFORMATION SYSTEM

SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL OPERATIONAL

ORDER PROCESSING ENTER, PROCESS, TRACK ORDERS

MARKET ANALYSIS

IDENTIFY CUSTOMERS & MARKETS KNOWLEDGE

PRICING ANALYSIS

DETERMINE PRICES

MANAGEMENT

SALES TRENDS

PREPARE 5-YEAR FORECASTS

STRATEGIC

2.24

2002 by Prentice Hall

MANUFACTURING INFORMATION SYSTEM

SYSTEM MACHINE CONTROL DESCRIPTION CONTROL ACTIONS OF EQUIPMENT ORGANIZATIONAL LEVEL OPERATIONAL

COMPUTER-AIDED-DESIGN DESIGN NEW PRODUCTS

KNOWLEDGE

PRODUCTION PLANNING

DECIDE NUMBER, SCHEDULE OF PRODUCTS

MANAGEMENT

FACILITIES LOCATION

DECIDE WHERE TO LOCATE FACILITIES

STRATEGIC

2.25

2002 by Prentice Hall

FINANCE & ACCOUNTING INFORMATION SYSTEM

SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL OPERATIONAL

ACCOUNTS RECEIVABLE TRACK MONEY OWED TO FIRM

PORTFOLIO ANALYSIS

DESIGN FIRM'S INVESTMENTS

KNOWLEDGE

BUDGETING

PREPARE SHORT TERM BUDGETS MANAGEMENT

PROFIT PLANNING

PLAN LONG-TERM PROFITS

STRATEGIC

2.26

2002 by Prentice Hall

HUMAN RESOURCES INFORMATION SYSTEM

SYSTEM TRAINING & DEVELOPMENT DESCRIPTION TRACK TRAINING, SKILLS, APPRAISALS ORGANIZATIONAL LEVEL 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

2.27

2002 by Prentice Hall

EXAMPLES OF BUSINESS PROCESSES MANUFACTURING & PRODUCTION: Assembling product, checking quality, producing bills of materials SALES & MARKETING: Identifying customers, creating customer awareness, selling *
2.28 2002 by Prentice Hall

EXAMPLES OF BUSINESS PROCESSES FINANCE & ACCOUNTING: Paying creditors, creating financial statements, managing cash accounts HUMAN RESOURCES: Hiring employees, evaluating performance, enrolling employees in benefits plans *
2.29 2002 by Prentice Hall

SUPPLY-CHAIN MANAGEMENT
CUSTOMERS
ORDER PROCESSING PLANNING & FORECASTING

SUPPLIERS

PROCUREMENT ACCOUNTING

INTRANET
PRODUCTION

LOGISTICS SERVICES

SHIPPING

INVENTORY

DISTRIBUTORS

2.30

2002 by Prentice Hall

HOW INFORMATION SYSTEMS FACILITATES SUPPLY CHAIN MANAGEMENT

DECIDE WHEN, WHAT TO PRODUCE, STORE, MOVE RAPIDLY COMMUNICATE ORDERS TRACK ORDER STATUS CHECK INVENTORY AVAILABILITY, MONITOR LEVELS TRACK SHIPMENTS PLAN PRODUCTION BASED ON ACTUAL DEMAND RAPIDLY COMMUNICATE PRODUCT DESIGN CHANGES PROVIDE PRODUCT SPECIFICATIONS SHARE INFORMATION ABOUT DEFECT RATES, RETURNS...

2.31

2002 by Prentice Hall

TRADITIONAL VIEW OF SYSTEMS WITHIN THE BUSINESS: There are functions, each having its uses of information systems OUTSIDE THE ORGANIZATIONS BOUNDARIES: There are customers and vendors FUNCTIONS TEND TO WORK IN ISOLATION * 2.32 2002 by Prentice Hall

ENTERPRISE SYSTEM
Manufacturing Accounting

Business Processes Vendors Enterprise-wide Business Processes Customers

Human Resources Sales & Marketing

Finance

2.33

2002 by Prentice Hall

BENEFITS OF ENTERPRISE SYSTEMS

FIRM STRUCTURE & ORGANIZATION: One organization MANAGEMENT: Firmwide knowledgebased management processes TECHNOLOGY: Unified platform BUSINESS: More efficient operations & customer-driven business processes *
2.34 2002 by Prentice Hall

CHALLENGES OF ENTERPRISE SYSTEMS

DAUNTING IMPLEMENTATION HIGH UP FRONT COSTS & FUTURE BENEFITS INFLEXIBILITY HARD TO REALIZE STRATEGIC VALUE *
2.35 2002 by Prentice Hall

INDUSTRIAL NETWORKS LINK FIRMS INTO INDUSTRY-WIDE SYSTEM HORIZONTAL: Link firms in same industry, including competitors VERTICAL: Link firm with suppliers in same industry *
2.36 2002 by Prentice Hall

c h a p t e r

INFORMATION SYSTEMS IN THE ENTERPRISE

2.37 2002 by Prentice Hall