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ASSIGNMENT ON MNAGEMENT INFORMATION SYSTEM

NAME: I.D NUM: COURSE LECTURER:

AYANLEKE JULIUS OLUWASEUN BBM-F1304-0058 MANAGEMENT INFORMATION SYSTEM MR. SURESH

QUESTION

Why are organisations trying to integrate their business process? What are the four key of enterprise applications.

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Table of Content Introduction What is Business Process Integration of Information System Integration of Information System into Business process from a Functional View Sales and Marketing System Manufacturing and Production System Finance and Accounting System Human Resource System

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5-6 6 6-7 7

Integration of Information System into Business Process from Cross-Functional View Transaction Processing System Management Information System Decision Support System Executive Support System Conclusion What is an Enterprise Application Four Types of Enterprise Application Enterprise System Supply Chain Management Customer Relationship Management System Knowledge Management System Conclusion References and Bibliography 11 11 12 12 13 14 7-8 8-9 9 10 10 10

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INTRODUCTION
Organisation functioning in a very high competitive and global environment requires an organisation to emphasis on the efficient implementation of its business processes, customer service, product quality and speed to market. To achieve these goals, the organisation must change useful information across different functions, department and business units. By integrating its business processes, the organisation can function more effectively in its day to day operations and good relationship with their customer. Business Process is a set of connected activities that define how particular business tasks are carried out or manner, in which work is organised, coordinated and focused to produce a valued product or services. And all these can only be achieved by integrating right and effective business processes in the organisation. Business processes are workflows of material, information, and knowledge. Each of this business process shows their uniqueness in the way an organisation or the manager chooses to coordinate their work. Organisational superiors need to be aware of business processes because the performance of the organisation depends on how well they are able to execute these processes and proper integration into the business may give them strength in gaining competitive advantage over there rivals. All the process has their own major business functions and set of business processes among them are cross functional such as order fulfillment. Example of what organisations are using today to integrate their business processes is Information System. Integration of Information systems as a business process helps organisations accomplish high level of efficiencies of the existing process and enabling the new that are capable of transforming the whole business such as computerising work that are
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manually done, therefore, these processes become easier and efficient Information system as part of the business process change the flow of information, making it possible for many people to access the organisation, see and be able to purchase all around the globe. For example, ordering a car from Germany while you are in the comfort of your home. There are two major different types of information system that support business process of an organisation, which is Functional and Cross functional Information system. INTEGRATION OF INFORMATION SYSTEM INTO BUSINESS PROCESS FROM A FUNCTIONAL VIEW Functional System can be identified by their major business function such as marketing information system, accounting and financial system. This system allows organisations to improve expertise, reduce redundancy in expertise, helps in development of core competencies and enabling functional efficiency. Functional information system

consists of transaction processing management of information and decision support and these three supports the business functions of the following: Sales and Marketing System: This system is responsible for selling the organisations products or services. Marketing is the process of determining the needs and wants of consumers and ability to deliver products or services that satisfy those needs and wants. This includes all the activities required to move a product from the manufacturer to the end user. Think of marketing as a bridge from the producer to the consumer. Marketing starts with market survey, an understanding of the market, in which marketers get to know everything they needed about what the consumers are demanding for, and it ends when somebody buys something. Production, advertising,

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transportation, processing, packaging, and selling are included in the marketing process. Sales are concerned with dealing with customers, selling the products, taking orders and monitoring sales. All these activities are business processes and they are supported by sales and marketing information system. This system help top directors to monitor the performance and trend affecting new products and sales opportunities in the external environment and monitoring the competitors performance and there strategy. On the hand, sales and marketing system facilitates smooth operational management and employees in locating and contacting all their customers, monitoring purchases, order processing and providing after sales services. Manufacturing and Production System: This system is responsible for the production of goods and services in an organisation. It deals will the production planning, development and maintenance of facilities used in production, establishment of production goals, storage and availability of raw materials. Manufacturing and production information system helps the management on how to achieve the long term manufacturing goals for example area to invest in manufacturing technology in other to reduce production cost and for efficient and quality production. Finance and Accounting System: Finance is responsible for the organisation

financial assets, stock, bonds, cash and other source of income so as to make maximum utilitisation of the assets to yield high return. Finance and account share the same duties on how to keep track on the movement of funds in the organisation. There the integration of finance and accounting information system, senior manager uses the finance and accounting system formulate investment long term goals and provision of future forecast of the organisation financial performance. The middle management uses
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this system to oversee and control the organisation financial resources while operational management uses it as tracker for every transaction such as deposit of paychecks, payment for vendors securities reports and receipts. Human Resources System: the human resource system in for attracting, developing and maintaining the firm workforce. Human resource information systems deals with identification of potential and dedicated employees, keeping records of existing employees performance and creating programs in employees development. INTEGRATION OF INFORMATION SYSTEM INTO BUSINESS PROCESS FROM A CROSS FUNCTIONAL SYSTEM Cross functional or cross channel information systems is a planned way on how to use information system to distribute information resources and concentrate on achieving basic business processes with customers, suppliers, partners or associates and employees stakeholders. Cross functional information system is important to an organisation so as to deal with any omission or errors that occurred during the functional information system performance such as information recreation, information errors, communication gaps among departments and loss of information. Meanwhile all the system involved here are all interrelated. Here are the systems used in this constituent: Transaction Processing System: This system is needed by the operation managers to keep track on the day to day activities and transactions of the organisation. Transaction Processing System is computerized system that performs and record daily activities or necessary transactions to conduct business. The major function of this system is to answer some set of questions and monitor movement of business deal of
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the organisation. For example this kind of information must be easily accessible and available, Number of quantity bought, Name of the customer, mode of payment and many more. At this level of business operation tasks, resources, and objectives are well explained and organised, because they make decision on whether the customer is qualified for credit facilities. Most times, transaction processing system are the major business system and failure of few hours can lead to an organisation or business disaster.

Management Information System: The major concern of this system is to check if everything is working well and that is why it is needed by the middle management to monitor, control, administrative issues and decision making. Management Information System is used to determine the performance of an organisation, control, monitor amd predict the future. Nowadays, most of the report are available on the internet such inventory and annual general reports.

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Management Information System diagram of a University. Decision Support System: The term refers to a communicating electronic system that collects and presents data from different sources, mainly for business reasons. Decision Support System applications are systems and subsystems that help people in make decisions based on data that is picked from a many sources. These systems use multiple models to analyse data into a form in which decision makers can use. Decision Support System deals with customer delivery schedule that is when the goods will arrive at the registered address, at what rate is the vessel to be used so as to maximise profit.

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Executive Support System:

These are used by the senior managers to make

decisions on evaluation and insight because no particular pathway for arriving at a solution. Executive support systems are designed to incorporate data about external events such as new competitors or increase in tax rate. It is always in graphs and data from various sources through an interface that is easy to monitor and use. In conclusion, all the different types of systems discussed are function interrelated in such a way that they exchange data among each other and Integration of all these systems into the business process as make things easier for both the organisation and the customer. For example it makes things easier for organisation in the area of making decision and for customer to access and purchase online anywhere they are. Organisations cannot manage all the information in these different systems without the use of enterprise application. Enterprise Application is an applications or software that organisations use to support the organisation in solving innovative problems. They can also be seen as a system that span functional areas, focus on executing business process across the organisation. Combination of the word enterprise and application means a software platform that is very huge and too difficult for individual or small business use. There major function is to help business become easier and industrious by directing their business process more carefully and combined groups of processes so they center on efficient management of resources and customer service. There are four major enterprise applications:

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Enterprise System: They are group of application software sets that support business processes, flows of information, recording, and data explanations in complex organisations. They are also known as enterprise resource planning. Enterprise system is a fast in disseminating information throughout the organisation, by so doing coordination of business becomes easier. Efficiency and quick response to customers need is facilitated by enterprise system. It also gives accurate and important information for improving management decision making on issues that will benefit the organisation. Supply Chain Management: Is the management of an interrelated or interwoven between network channel and businesses involved in the provision of product and service packages required by the 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. The system helps the organisation to maintain steady relationship with their supplier. It also provide information that will help the supplier, purchasing firms, distributors and logistics company share information about orders, production, inventory levels, and delivery of goods and services. The major motive of this system is to get the right amount of their product from the manufacturer or supplier to the end user or point of consumption on time and with minimum cost. Supply chain management system is a type of interorganisational

system because they automate the flow of information across organisational boundaries; this is done when ordering for a particular product online and the organisational need to forward your information to another organisation for shipment purpose.

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Customer Relationship Management System: This system manages the rapport or closeness between organisation and the customer. It always provides all the data or information to coordinate the business processes deal with customers in sales, marketing, customer satisfaction and their maintenance. The information provided will enables organisation to recognise, attract and retain the most profitable and regular customer, providing better services for the existing ones and hopefully increase sales. Knowledge Management system: Knowledge management comprises a series of plans and practices used in an organisation to recognize, create, represent, allocate, and enable adoption of ideas and experiences. The system collect all vital know how and experience in the organisation and make it available wherever and whenever is needed for the improvement of the organisational business processes and decision making. They also link the organisation to external sources of knowledge.it supports acquiring, distributing, applying knowledge and processes for creating new ones and inputting it into the organisational activities. Knowledge management system is useful for forming corporate knowledge directories of employees in their unique area of expertise.

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CONCLUSION
Evolution of all these information systems has changed the entire face and running of business around the globe making activities easier for both the organisation and the user of the product and services provided. Although may be expensive for some

organisations to afford but integration of the above discussed systems into business processes today has made business operations flexible and efficient by coordinating their business processes closely, integrating these processes and most importantly concentration on effective management of the available resources and good customer relation.

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REFERENCES & BIBLIOGRAPHY


Laudon, K.C. and Laudon, J. P. (2012). Management Information System, 12 th Edn England: Pearson Education Limited. Lee, J.K. and Larry, P.R (1999) Operations Management: strategy and Analysis, 5 th Edn United States of America Stair, R. and Reynolds, G. (2010) Information Systems, 9th Edn Canada: Nelson Education Ltd Rhonda, A. (2006) Successful Business Research, New Delhi: Patience Hall of India Private Ltd. John, J. and Johan, N. (2008) Management by Process: A roadmap to sustainable Business Process Management, 2nd Edn California: McFreze Education Inc. Gong, Y. and Janssen, M. (2011). Policy implementation to business process management, International Edn Japan: Scroll Printing Ltd. Apostolou, D., Mentzas, G., Stojanovic, L., Thoenssen, B., & Lobo, T. P. (2010). A collaborative decision framework for managing changes in e-Government services Government Information Quarterly. Laudon, K. C. and Laudon J. P. (2008).Management Information Systems: Managing the Digital Firm 10th Edn. PHI Learning Private Ltd. OBrien, J (1999) Management Information Systems: Managing Information Technology in the Internetworked Enterprise. Boston: Irwin McGraw-Hill Press.

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