Foundation Of Information Systems In Business
-
Upload
vijay-pithadia -
Category
Education
-
view
3.043 -
download
0
description
Transcript of Foundation Of Information Systems In Business
Foundation Of Information Systems In Business
Understand the concept of a system and how it relates to information systems.
What Is An Information System? An Information System can be any organized
combination Of: - people, - hardware, - software, - communications networks, - policies.
What Is An Information System? (continued) People rely on modern information systems to
communicate using a variable: - physical devices (hardware). - information processing instruction and procedures (software). - communications channels (network). - stored data (data resources).
How Information Systems Are How Information Systems Are Transforming Business Transforming Business
Increase in cell phone usage, Increase in Internet usage, Internet shoping, Online payment, Advertisement on the Internet, Awareness of prices, Etc.
• Businesses invest in IT to achieve six important business objectives
1. Operational excellence
2. New products, services, and business models
3. Customer and supplier intimacy
4. Improved decision making
5. Competitive advantage
6. Survival
Business Drivers of Information SystemsBusiness Drivers of Information Systems
The Role of Information Systems in Business Today
Operational Excellence:Operational Excellence:
Improved efficiency results in higher profits
Information systems and technologies help improve efficiency and productivity
Efficiency: It is the using resources in such a way as to maximize the production of goods and services.
The Role of Information Systems in Business Today
• Information systems and technologies enable firms to create new products, services, and business models
• Business model: How a company produces, delivers, and sells its products and services
• Product: Any commercial good.
• Service: Non-material equivalent of a good in economics and marketing.
New products, services, and business New products, services, and business models:models:
The Role of Information Systems in Business Today
New products, services, and business New products, services, and business models:models:
The Role of Information Systems in Business Today
With its stunning multitouchdisplay, full Internet browsing, digital camera, and portablemusic player, Apple’s iPhone set a new standard for mobile phones. Other Apple products have transformed the music and entertainment industries.
• Customers who are served well become repeat customers who purchase more
• Mandarin Oriental hotel
• Uses IT to foster an intimate relationship with its customers, keeping track of preferences, etc.
• Close relationships with suppliers result in lower costs
• JCPenney
• IT to enhance relationship with supplier in Hong Kong
Customer and supplier intimacy:Customer and supplier intimacy:
The Role of Information Systems in Business Today
• Real-time data improves ability of managers to make decisions.
• Data may be about:• Production,
• Selling,
• Customer complain,
• problems,
• Etc.
Improved decision making:Improved decision making:
The Role of Information Systems in Business Today
The Role of Information Systems in Business Today
Information Builders’ digital dashboard delivers comprehensive and accurate information for decision making. The graphical overview of key performance indicators helps managers quickly spot areas that need attention.
• Often results from achieving previous business objectives
• Advantages over competitors:
• Charging less for superior products,
• Better performance, and
• Better response to suppliers and customers
Competitive advantage:Competitive advantage:
The Role of Information Systems in Business Today
The Role of Information Systems in Business Today
In a Toyota factory, the assembly line produces a superior product in less time, using less inventory, and having fewer defects than the competition. Toyota uses information systems to monitor inventory levels and manage production scheduling.
• Businesses may need to invest in information systems out of necessity; simply the cost of doing business• Keeping up with competitors
• Citibank’s introduction of ATMs• Federal and state regulations and
reporting requirements• Toxic Substances Control Act and the
Sarbanes-Oxley Act
Survival:Survival:
The Role of Information Systems in Business Today
Perspectives on Information Systems and Information Technology
• Information technology: The hardware and software a business uses to achieve objectives
• Information system: Interrelated components that manage information to:
• Support decision making and control
• Help with analysis, visualization, and product creation
• Data: Streams of raw facts
• Information: Data shaped into meaningful, useful form
What Is an Information System? What Is an Information System?
The Fundamental Roles Of Information System In BusinessThere are three fundamental reasons:1. Support of its business processes and
operations.( like keeping inventories record or payment details etc.)
2. Support of decision making by its employees and managers.
3. Support of its strategies for competitive advantage.
Trends In Information Systems:1. Data processing: 1950s – 1960s - electronic data processing systems -- transaction processing, record
keeping, and traditional accounting applications.
2. Management reporting: 1960s – 1970s - management information systems -- management reports of pre specified information to support decision
making.
Cont.
3. Decision support: 1970s – 1980s - decision support systems
4. Strategic and User Support: 1980s – 1990s
- end user computing systems - executive information systems - expert systems - strategic information systems
Electronic Business and Commerce: 1990s – 2000s
- internet based e business and e commerce systems Many business today are using internet
technologies to Web enable business process and to create innovative e business application.
Types Of Information Systems
Operations Support Systems
Specialized Processing Systems
Transaction Processing Systems
Process Control Systems
Enterprise Collaboration Systems
Management
Support Systems
Management Information
Systems
Decision Support Systems
Executive
Information
Systems
Specialized Processing Systems
Types of IS
Different kinds of systemsDifferent kinds of systems Operational-level systems
Knowledge-level systems
• Information systems that monitor the elementary activities and transactions of the organization .(like TPS)
• Information systems that support knowledge and data workers in an organization. (KWS, OAS)
Management-level systems
Strategic-level systems
• Information systems that support the monitoring, controlling, decision making, and administrative activities of middle managers. (DSS, MIS)
• Information systems that support the long-range planning activities of senior management . (EIS)
Major Types of Systems Executive Support Systems (ESS)Executive Support Systems (ESS) Decision Support Systems (DSS)Decision Support Systems (DSS) Management Information Systems (MIS)Management Information Systems (MIS) Knowledge Work Systems (KWS)Knowledge Work Systems (KWS) Office Automation Systems (OAS)Office Automation Systems (OAS) Transaction Processing Systems (TPS)Transaction Processing Systems (TPS)
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Transaction Processing Systems (TPS)Transaction Processing Systems (TPS)
• Basic business systems that serve the Basic business systems that serve the operational leveloperational level
• A computerized system that performs and A computerized system that performs and records the daily routine transactions records the daily routine transactions necessary to the conduct of the businessnecessary to the conduct of the business
• EXAMPLE:EXAMPLE: payroll, accounts payable payroll, accounts payable
TYPICAL TPS APPLICATIONSSales & 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
TPS Manufacturing Plant scheduling Material movement control Machine control
Finance Securities trading Cash management
Accounting Payroll Account payable Account receivable
Human Resources Compensation Training & development Employee record keeping
KWS – knowledge work systems
Information systems that aid knowledge workers in the creation and integration of new knowledge in the organization .
Example: Engineering work station
OAS – office automation systems
Computer systems, such as word processing, electronic mail systems, and scheduling systems, that are designed to increase the productivity of data workers in the office .
MIS – Management Information Systems
Information systems at the management level of organization that serve the functions of planning, controlling, and decision making by providing routine summary and exception reports.
Example: Annual budgetingExample: Annual budgeting
MIS• Structured and semi-structured decisionsStructured and semi-structured decisions
• Report control orientedReport control oriented
• Past and present dataPast and present data
• Internal orientationInternal orientation
DSS – Decision Support Systems
Information systems at the management level of an organization that combine data and sophisticated analytical models to support non-routine decision making.
Example:Example: Contract cost analysisContract cost analysis
MIS & DSSMIS & DSS Sales and marketing
Sales management Sales region analysis
Manufacturing Inventory control Production scheduling
Finance Annual budgeting Cost analysis
Accounting Capital investment analysis Pricing / profitability analysis
Human Resource Relocation analysis Contract cost analysis
ESS – Executive Support Systems
Information system at the organization’s strategic level designed to address unstructured decision making through advanced graphics and communications
Example: 5-year operating planExample: 5-year operating plan
ESSESS Sales and marketing Sales trend
forecasting
Manufacturing Operating plan
Finance Budget forecasting
Accounting Profit planning
Human Resource Personnel planning
Characteristics of Different Types of Characteristics of Different Types of Information SystemsInformation Systems
Information inputs Processing Information outputs Users
Systems from a Functional PerspectiveSystems from a Functional Perspective
SALES & MARKETING SYSTEMS
MANUFACTURING & PRODUCTION SYSTEMS
FINANCE & ACCOUNTING SYSTEMS
HUMAN RESOURCES SYSTEMS
43
Sales and MarketingSales and Marketing Systems Systems
44
Manufacturing and ProductionManufacturing and Production Systems Systems
45
Financing and AccountingFinancing and Accounting Systems Systems
46
Human ResourceHuman Resource Systems Systems