INFORMATION

SYSTEMS IN THE
ENTERPRISE

2.1

2003 by Prentice Hall

Essentials of Management Information Systems

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

Major Types of Systems

Executive Support Systems (ESS)
Decision Support Systems (DSS)
Management Information Systems (MIS)
Transaction Processing Systems (TPS)

2.2

2003 by Prentice Hall

Essentials of Management Information Systems

Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Enterprise Systems

2.3

Figure 2-17

2003 by Prentice Hall

Essentials of Management Information Systems

Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Business Processes and Information Systems

Business processes
Manner in which work is organized,
coordinated, and focused to produce a
valuable product or service
Concrete work flows of material,
information, and knowledgesets of
activities

2.4

2003 by Prentice Hall

Essentials of Management Information Systems

Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Business Processes and Information Systems

Unique ways to coordinate work,

information, and knowledge
Ways in which management chooses
to coordinate work

2.5

2003 by Prentice Hall

Essentials of Management Information Systems

Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Traditional View of the Systems

Figure 2-16
2.6

2003 by Prentice Hall

Essentials of Management Information Systems

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

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

2.7

2003 by Prentice Hall

Essentials of Management Information Systems

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

Types of TPS Systems

Figure 2-4
2.8

2003 by Prentice Hall

System Architecture: Transaction Processing

System

2.9

2003 by Prentice Hall

Essentials of Management Information Systems

Chapter 2 Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Financing and 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

2003 by Prentice Hall

Essentials of Management Information Systems

Chapter 2 Information Systems in the Enterprise
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

2.11

2003 by Prentice Hall

Essentials of Management Information Systems

Chapter 2 Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Manufacturing and Production Systems

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
2.12

2003 by Prentice Hall

Essentials of Management Information Systems

Chapter 2 Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Human Resource 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

2.13

2003 by Prentice Hall

Essentials of Management Information Systems

Chapter 2 Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Human Resource Systems

Figure 2-11
2.14

2003 by Prentice Hall

Essentials of Management Information Systems

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

Payroll TPS

2.15

Figure 2-3
2003 by Prentice Hall

System Example: Payroll System (TPS)

2.16

2003 by Prentice Hall

Essentials of Management Information Systems

Chapter 2 Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Overview of Inventory Systems

Figure 2-10
2.17

2003 by Prentice Hall

t
i
o
n

S
y
s
t
e
m

(
M2.18

Management Information System (MIS)

An MIS provides managers with information and
support for effective decision making, and
provides feedback on daily operations.
MIS provides information to the users in the form
of reports
Output, or reports, are usually generated through
accumulation of transaction processing data.
MIS is an integrated collection of subsystems,
which are typically organized along functional
lines within an organization.
18
2003 by Prentice Hall

Essentials of Management Information Systems

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

Management Information System (MIS):

Management level
Inputs: High volume data
Processing: Simple models
Outputs: Summary reports
Users: Middle managers
Example: Annual budgeting
2.19

2003 by Prentice Hall

Essentials of Management Information Systems

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

Management Information System (MIS)

Structured and semi-structured decisions

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

2.20

2003 by Prentice Hall

Essentials of Management Information Systems

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

Management Information System (MIS)

Figure 2-5
2.21

2003 by Prentice Hall

System Architecture: Management

Information System

2.22

2003 by Prentice Hall

MIS

Management Information System

Creates reports managers can use

to make routine business decisions

2.23

Scheduled reports
Key-indicator reports
Exception reports
Ad hoc (demand) reports
Drill-down reports
2003 by Prentice Hall

n
t
I
n
f
oScheduled
rReports
mProduced
periodically, or
aon a schedule
t (daily, weekly,
i monthly).
o
n
24

2.24

2003 by Prentice Hall

Key-Indicator Report

2.25

Summarizes the previous days critical activities

and typically available at the beginning of each
day.
2003 by Prentice Hall

Demand
Report
Gives certain
information at a
managers
request.
Exception
Report
Automatically
produced when a
situation is unusual
or requires
management action.
26

2.26

2003 by Prentice Hall

Drill Down
Reports
Provide detailed
data about a
situation.

27

2.27

2003 by Prentice Hall

Essentials of Management Information Systems

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

Decision Support System (DSS):

Management level
Inputs: Low volume data
Processing: Interactive
Outputs: Decision analysis
Users: Professionals, staff
Example: Contract cost analysis
2.28

2003 by Prentice Hall

Essentials of Management Information Systems

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

Decision Support System (DSS)

Figure 2-7
2.29

2003 by Prentice Hall

Four Types of Models

2.30

2003 by Prentice Hall

Essentials of Management Information Systems

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

Decision Support System (DSS)

2.31

Figure 2-6

2003 by Prentice Hall

Essentials of Management Information Systems

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

Executive support system (ESS)

Top level management

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

2.32

2003 by Prentice Hall

Essentials of Management Information Systems

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

Executive Support System (ESS):

Strategic level
Inputs: Aggregate data
Processing: Interactive
Outputs: Projections
Users: Senior managers
Example: 5-year operating plan
2.33

2003 by Prentice Hall

Essentials of Management Information Systems

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

Executive Support System (ESS)

2.34

Figure 2-8

2003 by Prentice Hall

Essentials of Management Information Systems

Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Business Processes and Information Systems

Cross-Functional Business Processes

Transcend boundary between sales, marketing,
manufacturing, and research and development
Group employees from different functional
specialties to a complete piece of work

Example: Order Fulfillment Process

2.35

2003 by Prentice Hall

Essentials of Management Information Systems

Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

The Order Fulfillment Process

Figure 2-12
2.36

2003 by Prentice Hall

Essentials of Management Information Systems

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

Types of Information Systems

2.37

Figure 2-1

2003 by Prentice Hall

Essentials of Management Information Systems

Chapter 2 Information Systems in the Enterprise
TYPES OF INFORMATION SYSTEMS

2.38

Figure 2-2

2003 by Prentice Hall

Essentials of Management Information Systems

Chapter 2 Information Systems in the Enterprise
INTERRELATIONSHIPS AMONG SYSTEMS

2.39

Figure 2-9

2003 by Prentice Hall

2.40

2003 by Prentice Hall

Chapter

INFORMATION
SYSTEMS IN THE
ENTERPRISE

2.41

2003 by Prentice Hall

Essentials of Management Information Systems

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

Knowledge Work Systems (KWS):

Knowledge level
Inputs: Design specs
Processing: Modeling
Outputs: Designs, graphics
Users: Technical staff
Example: Engineering work station
2.42

2003 by Prentice Hall

Essentials of Management Information Systems

Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Business Processes and Information Systems

Information systems help organizations

Achieve great efficiencies by automating
parts of processes
Rethink and streamline processes

2.43

2003 by Prentice Hall

Essentials of Management Information Systems

Chapter 2 Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Human Resource Systems

SYSTEM

DESCRIPTION

ORGANIZATIONAL LEVEL

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

2.44

STRATEGIC

2003 by Prentice Hall

Essentials of Management Information Systems

Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Examples of Business Processes

Finance and accounting: Paying

creditors, creating financial statements,
managing cash accounts

Human Resources: Hiring employees,

evaluating performance, enrolling
employees in benefits plans

2.45

2003 by Prentice Hall

Essentials of Management Information Systems

Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Examples of Business Processes

Manufacturing and production:

Assembling product, checking quality,
producing bills of materials

Sales and marketing: Identifying

customers, creating customer awareness,
selling

2.46

2003 by Prentice Hall