Description
Information Systems in the Enterprise
1.
What is Information? What is an Information System? What are the major types of systems in a business? What role do they play? How do information systems support the major business functions: sales and marketing, manufacturing and production, finance and accounting, and human resources?
2.
3.
3.
Why should managers pay attention to business processes? Why do firms need to integrate their business processes? What are enterprise applications? What role do they play? What benefits do they provide? What types of information systems are used by companies that operate internationally?
4.
5.
?
Data vs. Information
? Data
? Raw facts ? Distinct pieces of information, usually formatted in a special way ? Data can exist in a variety of forms -- as numbers or text on pieces of paper, in electronic memory, or as facts stored in a person’s mind ? A collection of facts organized in such a way that they have additional value beyond the value of the facts themselves ? Data when ‘transformed’ becomes Information ? Accurate, complete, economical, flexible, reliable, relevant, simple, timely, verifiable, accessible, secure
? Information
?
System
? A set of elements or components that interact to accomplish goals ? A combination of components working together
?
System Elements
? ? ? ? Inputs Processing mechanisms Outputs Feedback
? ?
System - Movie Elements
? ? ? ? Inputs - Actors, director, staff, sets, equipment Processing - Filming, editing, special effects, Outputs - Finished film delivered to movie studio Goal - Entertaining movie, film awards, profits
?
Efficiency
? A measure of what is produced divided by what is consumed
?
Effectiveness
? A measure of the extent to which a system achieves its goals
?
System performance standard
? A specific objective of the system (good or bad )
? A set of interrelated elements or components that collect (input), manipulate (process), and disseminate (output) data and information and provide a feedback mechanism to meet an objective ? A CBIS (Computer Based Information System) is composed of Hardware, Software, Database, Telecommunications, People, Procedures ? For many companies, IS is the name of the department responsible for computers, networking and data management. Other companies refer to the department as IT (Information Technology) and MIS (Management Information Services).
Functions of an Information System
Information Systems
ORGANIZATIONS
TECHNOLOGY
INFORMATION SYSTEMS
MANAGEMENT
1.
Integration: Different systems serve variety of functions, connecting organizational levels difficult, costly Enlarging scope of management thinking: Huge system investments, long development time must be guided by common objectives
2.
Types of information systems
Figure 2-1
Different Kinds of Systems
Three Main Categories of Information Systems
1. 2. 3.
Operational-level systems Management-level systems Strategic-level systems
Four Major Types of Systems
1. 2. 3. 4.
Transaction Processing Systems (TPS)
Management Information Systems (MIS) Decision-Support Systems (DSS) Executive-Support Systems (ESS)
The four major types of information systems
Figure 2-2
Four Major Types of Systems
Transaction Processing Systems (TPS)
?
? ? ?
?
Basic business systems that serve the organization’s operational level Input: Transactions, events Processing: Sorting, listing, merging, updating Output: Detailed reports, lists, summaries Users: Operations personnel, supervisors
A symbolic representation for a payroll TPS
Figure 2-3
Typical applications of TPS
Figure 2-4
Four Major Types of Systems
Management Information Systems (MIS)
? ? ? ? ?
Serve management level; provide reports and access to company data Input: Summary transaction data, high-volume data, simple models Processing: Routine reports, simple models, lowlevel analysis Output: Summary and exception reports Users: Middle managers
How management information systems obtain their data from the organization’s TPS
Figure 2-5
A sample report that might be produced by the MIS in Figure 2-5
Figure 2-6
Four Major Types of Systems
Decision-Support Systems (DSS)
? ? ? ? ?
Serve management level with data analysis for making decisions Input: Low-volume data or massive databases, analytic models, and data analysis tools Processing: Interactive, simulations, analysis Output: Special reports, decision analyses, responses to queries Users: Professionals, staff managers
Voyage-estimating decision-support system
Figure 2-7
Four Major Types of Systems
Executive Support Systems (ESS)
?
? ? ? ?
Provide communications and computing environment that serves the organization’s strategic level Input: External and internal aggregate data Processing: Graphics, simulations, interactive Output: Projections, responses to queries Users: Senior Managers
Model of a typical executive support system
Figure 2-8
Interrelationships among systems
Figure 2-9
Major Business Functions
1. 2. 3. 4.
Sales and Marketing Systems Manufacturing and Production Systems Finance and Accounting Systems Human Resource Systems
Sales and Marketing Systems
? ? ? ? ?
Help identify customers Develop products and services Promote products and services Sell products and services Provide ongoing customer support
Table 2-2: Examples of Sales and Marketing Information Systems
System
Description
Organizational Level
Order processing Enter, process, and track orders Pricing analysis
Operational
Determine prices for Management products and services
Sales trend forecasting
Prepare 5-year sales Strategic forecasts
Manufacturing and Production Systems
?
?
?
? ?
Planning, development, production of products and services Planning, development, maintenance of production facilities Acquisition, storage, availability of materials Scheduling materials, facilities, labor Controlling the flow of production
Table 2-3: Examples of Manufacturing and Production Information Systems
System
Description
Organizational Level
Machine control Control the actions of machines and equipment Production Decide when and planning how many products should be produced Facilities location Decide where to locate new facilities
Operational
Management
Strategic
Overview of an inventory system
Figure 2-10
Finance and Accounting Systems
?
?
?
Manage firm’s financial assets: cash, stocks, bonds, etc. Manage capitalization of firm and finding new financial assets Maintain and manage financial records
Table 2-4: Examples of Finance and Accounting Information Systems
System
Description
Organizational Level
Accounts receivable Budgeting
Track money owed the firm Prepare short-term budgets Plan long-term profits
Operational Management
Profit planning
Strategic
Human Resources Systems
? ? ?
?
Identify potential employees Maintain employee records Track employee skills, job performance, and training Support planning for employee compensation and career development
Table 2-5: Examples of Human Resources Information Systems
System
Description
Organizational Level
Training and development Compensation analysis Human resources planning
Track employee training, skills, and performance Monitor wages, salaries, benefits
Operational
Management
Plan long-term labor Strategic force needs
An employee record-keeping system
Figure 2-11
Business Processes and Information Systems
Business Processes
? ? ?
Manner in which work is organized, coordinated, and focused Concrete workflows of material, information, and knowledge Unique ways to coordinate work, information, and knowledge
Business Processes and Information Systems
Examples of Functional Business Processes
?
?
Manufacturing and production: Assembling product, checking quality, producing bills of materials Sales and marketing: Identifying customers, creating customer awareness, selling
Business Processes and Information Systems
Examples of Functional Business Processes
?
?
Finance and accounting: Paying creditors, creating financial statements, managing cash accounts Human Resources: Hiring employees, evaluating performance, enrolling employees in benefits plans
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
?
The order fulfillment process
Figure 2-12
Enterprise application architecture
Figure 2-13
Business Processes and Information Systems
? ? ?
?
Enterprise Applications Enterprise systems Supply chain management systems Customer relationship management systems Knowledge management systems
Traditional view of systems
Figure 2-14
Enterprise Systems
? ?
?
Enterprise resource planning (ERP) Provides single information system for organization-wide coordination and integration of key business processes Models and automates many business processes
Enterprise systems
Figure 2-15
Supply Chain Management and Collaborative Commerce
?
Supply Chain Management Systems (SCM): Automate flow of information between firm and suppliers to optimize production and delivery Supply Chain Management: Close linkage of activities involved in buying, making, moving a product Supply Chain: Network of organizations and business processes for production and distribution of products
?
?
A supply chain
Figure 2-16
Supply Chain Management and Collaborative Commerce
? ? ? ? ? ? ? ?
Information Systems Can Help Supply Chain Participants: Decide when and what to produce, store, and move Rapidly communicate orders Track status of orders Check and monitor inventory Reduce inventory, transportation, warehousing costs Track shipments Plan production based on actual customer demand Rapidly communicate changes in product design
Supply Chain Management and Collaborative Commerce
Collaborative Commerce
?
Uses digital technologies to enable multiple organizations to collaboratively design, develop, build, move, and manage products Increases efficiencies in reducing product design life cycles, minimizing excess inventory, forecasting demand, and keeping partners and customers informed
?
Collaborative commerce
Figure 2-17
Supply Chain Management and Collaborative Commerce
?
?
Collaborative planning, forecasting, and replenishment (CPFR) Collaboration between partners to formulate demand forecasts, develop production plans, coordinate shipping, warehousing, stocking Private industrial networks Web-enabled networks for coordinating transorganizational business processes
Supply Chain Management and Collaborative Commerce
How Businesses Engage in Collaborative Commerce
? ?
?
? ? ?
Product design and development Service and support Supply chain coordination Logistics Sales support and training Channel management
Customer Relationship Management (CRM)
?
Manages ways used to deal with existing and potential customers Both a business and technology discipline Uses information systems to coordinate all customer interaction processes in sales, marketing, and service.
? ?
Customer Relationship Management (CRM)
Customer Relationship Management Systems
? ?
Track all customer interactions Analyze data to optimize revenue, profitability, customer satisfaction, customer retention
Customer Relationship Management (CRM)
Figure 2-18
Knowledge Management Systems in the Enterprise
?
?
Knowledge Management Systems (KMS) Collect relevant knowledge and experience in firm to support business processes and management decisions Manage and distribute documents and other digital knowledge objects
Knowledge Management Systems in the Enterprise
? ? ? ?
Role of Knowledge Management Systems Acquire knowledge Store knowledge Distribute knowledge Apply knowledge
Information Architecture and Information Technology Infrastructure
doc_385630429.pptx
Information Systems in the Enterprise
1.
What is Information? What is an Information System? What are the major types of systems in a business? What role do they play? How do information systems support the major business functions: sales and marketing, manufacturing and production, finance and accounting, and human resources?
2.
3.
3.
Why should managers pay attention to business processes? Why do firms need to integrate their business processes? What are enterprise applications? What role do they play? What benefits do they provide? What types of information systems are used by companies that operate internationally?
4.
5.
?
Data vs. Information
? Data
? Raw facts ? Distinct pieces of information, usually formatted in a special way ? Data can exist in a variety of forms -- as numbers or text on pieces of paper, in electronic memory, or as facts stored in a person’s mind ? A collection of facts organized in such a way that they have additional value beyond the value of the facts themselves ? Data when ‘transformed’ becomes Information ? Accurate, complete, economical, flexible, reliable, relevant, simple, timely, verifiable, accessible, secure
? Information
?
System
? A set of elements or components that interact to accomplish goals ? A combination of components working together
?
System Elements
? ? ? ? Inputs Processing mechanisms Outputs Feedback
? ?
System - Movie Elements
? ? ? ? Inputs - Actors, director, staff, sets, equipment Processing - Filming, editing, special effects, Outputs - Finished film delivered to movie studio Goal - Entertaining movie, film awards, profits
?
Efficiency
? A measure of what is produced divided by what is consumed
?
Effectiveness
? A measure of the extent to which a system achieves its goals
?
System performance standard
? A specific objective of the system (good or bad )
? A set of interrelated elements or components that collect (input), manipulate (process), and disseminate (output) data and information and provide a feedback mechanism to meet an objective ? A CBIS (Computer Based Information System) is composed of Hardware, Software, Database, Telecommunications, People, Procedures ? For many companies, IS is the name of the department responsible for computers, networking and data management. Other companies refer to the department as IT (Information Technology) and MIS (Management Information Services).
Functions of an Information System
Information Systems
ORGANIZATIONS
TECHNOLOGY
INFORMATION SYSTEMS
MANAGEMENT
1.
Integration: Different systems serve variety of functions, connecting organizational levels difficult, costly Enlarging scope of management thinking: Huge system investments, long development time must be guided by common objectives
2.
Types of information systems
Figure 2-1
Different Kinds of Systems
Three Main Categories of Information Systems
1. 2. 3.
Operational-level systems Management-level systems Strategic-level systems
Four Major Types of Systems
1. 2. 3. 4.
Transaction Processing Systems (TPS)
Management Information Systems (MIS) Decision-Support Systems (DSS) Executive-Support Systems (ESS)
The four major types of information systems
Figure 2-2
Four Major Types of Systems
Transaction Processing Systems (TPS)
?
? ? ?
?
Basic business systems that serve the organization’s operational level Input: Transactions, events Processing: Sorting, listing, merging, updating Output: Detailed reports, lists, summaries Users: Operations personnel, supervisors
A symbolic representation for a payroll TPS
Figure 2-3
Typical applications of TPS
Figure 2-4
Four Major Types of Systems
Management Information Systems (MIS)
? ? ? ? ?
Serve management level; provide reports and access to company data Input: Summary transaction data, high-volume data, simple models Processing: Routine reports, simple models, lowlevel analysis Output: Summary and exception reports Users: Middle managers
How management information systems obtain their data from the organization’s TPS
Figure 2-5
A sample report that might be produced by the MIS in Figure 2-5
Figure 2-6
Four Major Types of Systems
Decision-Support Systems (DSS)
? ? ? ? ?
Serve management level with data analysis for making decisions Input: Low-volume data or massive databases, analytic models, and data analysis tools Processing: Interactive, simulations, analysis Output: Special reports, decision analyses, responses to queries Users: Professionals, staff managers
Voyage-estimating decision-support system
Figure 2-7
Four Major Types of Systems
Executive Support Systems (ESS)
?
? ? ? ?
Provide communications and computing environment that serves the organization’s strategic level Input: External and internal aggregate data Processing: Graphics, simulations, interactive Output: Projections, responses to queries Users: Senior Managers
Model of a typical executive support system
Figure 2-8
Interrelationships among systems
Figure 2-9
Major Business Functions
1. 2. 3. 4.
Sales and Marketing Systems Manufacturing and Production Systems Finance and Accounting Systems Human Resource Systems
Sales and Marketing Systems
? ? ? ? ?
Help identify customers Develop products and services Promote products and services Sell products and services Provide ongoing customer support
Table 2-2: Examples of Sales and Marketing Information Systems
System
Description
Organizational Level
Order processing Enter, process, and track orders Pricing analysis
Operational
Determine prices for Management products and services
Sales trend forecasting
Prepare 5-year sales Strategic forecasts
Manufacturing and Production Systems
?
?
?
? ?
Planning, development, production of products and services Planning, development, maintenance of production facilities Acquisition, storage, availability of materials Scheduling materials, facilities, labor Controlling the flow of production
Table 2-3: Examples of Manufacturing and Production Information Systems
System
Description
Organizational Level
Machine control Control the actions of machines and equipment Production Decide when and planning how many products should be produced Facilities location Decide where to locate new facilities
Operational
Management
Strategic
Overview of an inventory system
Figure 2-10
Finance and Accounting Systems
?
?
?
Manage firm’s financial assets: cash, stocks, bonds, etc. Manage capitalization of firm and finding new financial assets Maintain and manage financial records
Table 2-4: Examples of Finance and Accounting Information Systems
System
Description
Organizational Level
Accounts receivable Budgeting
Track money owed the firm Prepare short-term budgets Plan long-term profits
Operational Management
Profit planning
Strategic
Human Resources Systems
? ? ?
?
Identify potential employees Maintain employee records Track employee skills, job performance, and training Support planning for employee compensation and career development
Table 2-5: Examples of Human Resources Information Systems
System
Description
Organizational Level
Training and development Compensation analysis Human resources planning
Track employee training, skills, and performance Monitor wages, salaries, benefits
Operational
Management
Plan long-term labor Strategic force needs
An employee record-keeping system
Figure 2-11
Business Processes and Information Systems
Business Processes
? ? ?
Manner in which work is organized, coordinated, and focused Concrete workflows of material, information, and knowledge Unique ways to coordinate work, information, and knowledge
Business Processes and Information Systems
Examples of Functional Business Processes
?
?
Manufacturing and production: Assembling product, checking quality, producing bills of materials Sales and marketing: Identifying customers, creating customer awareness, selling
Business Processes and Information Systems
Examples of Functional Business Processes
?
?
Finance and accounting: Paying creditors, creating financial statements, managing cash accounts Human Resources: Hiring employees, evaluating performance, enrolling employees in benefits plans
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
?
The order fulfillment process
Figure 2-12
Enterprise application architecture
Figure 2-13
Business Processes and Information Systems
? ? ?
?
Enterprise Applications Enterprise systems Supply chain management systems Customer relationship management systems Knowledge management systems
Traditional view of systems
Figure 2-14
Enterprise Systems
? ?
?
Enterprise resource planning (ERP) Provides single information system for organization-wide coordination and integration of key business processes Models and automates many business processes
Enterprise systems
Figure 2-15
Supply Chain Management and Collaborative Commerce
?
Supply Chain Management Systems (SCM): Automate flow of information between firm and suppliers to optimize production and delivery Supply Chain Management: Close linkage of activities involved in buying, making, moving a product Supply Chain: Network of organizations and business processes for production and distribution of products
?
?
A supply chain
Figure 2-16
Supply Chain Management and Collaborative Commerce
? ? ? ? ? ? ? ?
Information Systems Can Help Supply Chain Participants: Decide when and what to produce, store, and move Rapidly communicate orders Track status of orders Check and monitor inventory Reduce inventory, transportation, warehousing costs Track shipments Plan production based on actual customer demand Rapidly communicate changes in product design
Supply Chain Management and Collaborative Commerce
Collaborative Commerce
?
Uses digital technologies to enable multiple organizations to collaboratively design, develop, build, move, and manage products Increases efficiencies in reducing product design life cycles, minimizing excess inventory, forecasting demand, and keeping partners and customers informed
?
Collaborative commerce
Figure 2-17
Supply Chain Management and Collaborative Commerce
?
?
Collaborative planning, forecasting, and replenishment (CPFR) Collaboration between partners to formulate demand forecasts, develop production plans, coordinate shipping, warehousing, stocking Private industrial networks Web-enabled networks for coordinating transorganizational business processes
Supply Chain Management and Collaborative Commerce
How Businesses Engage in Collaborative Commerce
? ?
?
? ? ?
Product design and development Service and support Supply chain coordination Logistics Sales support and training Channel management
Customer Relationship Management (CRM)
?
Manages ways used to deal with existing and potential customers Both a business and technology discipline Uses information systems to coordinate all customer interaction processes in sales, marketing, and service.
? ?
Customer Relationship Management (CRM)
Customer Relationship Management Systems
? ?
Track all customer interactions Analyze data to optimize revenue, profitability, customer satisfaction, customer retention
Customer Relationship Management (CRM)
Figure 2-18
Knowledge Management Systems in the Enterprise
?
?
Knowledge Management Systems (KMS) Collect relevant knowledge and experience in firm to support business processes and management decisions Manage and distribute documents and other digital knowledge objects
Knowledge Management Systems in the Enterprise
? ? ? ?
Role of Knowledge Management Systems Acquire knowledge Store knowledge Distribute knowledge Apply knowledge
Information Architecture and Information Technology Infrastructure
doc_385630429.pptx