MIS - CH 2

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E-Business:E-Business:

How Business use How Business use Information SystemInformation System

Chapter

Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise

Types of Information Systems

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION


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)



TYPES OF INFORMATION SYSTEMS



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


Payroll TPS



Types of TPS Systems


Knowledge Work Systems (KWS):

Knowledge levelKnowledge level• Inputs:Inputs: Design specsDesign specs

• Processing:Processing: ModelingModeling

• Outputs:Outputs: Designs, graphicsDesigns, graphics

• Users:Users: Technical staffTechnical staff

Example: Engineering work stationExample: Engineering work station



Management Information System (MIS):

Management levelManagement level• Inputs:Inputs: High volume data High volume data

• ProcessingProcessing:: Simple models Simple models

• Outputs:Outputs: Summary reports Summary reports

• Users:Users: Middle managers Middle managers

Example: Annual budgetingExample: Annual budgeting





Management Information System (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

• Lengthy design processLengthy design process



Management Information System (MIS)


Decision Support System (DSS):

Management levelManagement level• Inputs:Inputs: Low volume data Low volume data

• Processing: Processing: InteractiveInteractive

• Outputs:Outputs: Decision analysis Decision analysis

• Users:Users: Professionals, staff Professionals, staff

Example: Contract cost analysisExample: Contract cost analysis




Decision Support System (DSS)


Executive Support System (ESS):

Strategic levelStrategic level• Inputs:Inputs: Aggregate data Aggregate data

• Processing:Processing: Interactive Interactive

• Outputs:Outputs: Projections Projections

• Users:Users: Senior managers Senior managers

Example: 5-year operating planExample: 5-year operating plan




Executive Support System (ESS)


• Top level managementTop level management

• Designed to the individualDesigned to the individual

• Ties CEO to all levelsTies CEO to all levels

• Very expensive to keep upVery expensive to keep up

• Extensive support staffExtensive support staff


Executive support system (ESS)


INTERRELATIONSHIPS AMONG SYSTEMS

Major functions of systems:Major functions of systems:• Sales management, market research, Sales management, market research,

promotion, pricing, new productspromotion, pricing, new products

Major application systems:Major application systems:• Sales order info system, market research Sales order info system, market research

system, pricing systemsystem, pricing system


SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Sales and Marketing Systems


SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

ORDER PROCESSING ENTER, PROCESS, TRACK ORDERS OPERATIONAL

MARKET ANALYSIS IDENTIFY CUSTOMERS & MARKETS KNOWLEDGE

PRICING ANALYSIS DETERMINE PRICES MANAGEMENT

SALES TRENDS PREPARE 5-YEAR FORECASTS STRATEGIC


Sales and Marketing Systems

Major functions of systems:Major functions of systems:• Scheduling, purchasing, shipping, Scheduling, purchasing, shipping,

receiving, engineering, operationsreceiving, engineering, operations

Major application systems:Major application systems:• Materials resource planning systems, Materials resource planning systems,

purchase order control systems, purchase order control systems, engineering systems, quality control engineering systems, quality control systemssystems


Manufacturing and Production Systems




MACHINE CONTROL CONTROL ACTIONS OF EQUIPMENT OPERATIONAL

COMPUTER-AIDED-DESIGN DESIGN NEW PRODUCTS KNOWLEDGE

PRODUCTION PLANNING DECIDE NUMBER, SCHEDULE OF PRODUCTS MANAGEMENT

FACILITIES LOCATION DECIDE WHERE TO LOCATE FACILITIES STRATEGIC

Manufacturing and Production Systems



Overview of Inventory Systems


Major functions of systems:Major functions of systems:• Budgeting, general ledger, billing, cost Budgeting, general ledger, billing, cost

accountingaccounting

Major application systems:Major application systems:• General ledger, accounts receivable, General ledger, accounts receivable,

accounts payable, budgeting, funds accounts payable, budgeting, funds management systemsmanagement systems


Financing and Accounting Systems




ACCOUNTS RECEIVABLE TRACK MONEY OWED TO FIRM OPERATIONAL

PORTFOLIO ANALYSIS DESIGN FIRM'S INVESTMENTS KNOWLEDGE

BUDGETING PREPARE SHORT TERM BUDGETS MANAGEMENT

PROFIT PLANNING PLAN LONG-TERM PROFITS STRATEGIC

Financing and Accounting Systems


Major functions of systems:Major functions of systems:• Personnel records, benefits, Personnel records, benefits,

compensation, labor relations, trainingcompensation, labor relations, training

Major application systems:Major application systems:• Payroll, employee records, benefit Payroll, employee records, benefit

systems, career path systems, personnel systems, career path systems, personnel training systemstraining systems



Human Resource Systems



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 STRATEGIC




INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Customer Relationship Management (CRM)Customer Relationship Management (CRM)

• Manages all ways used by firms to deal with Manages all ways used by firms to deal with existing and potential new customersexisting and potential new customers

• Business and Technology disciplineBusiness and Technology discipline

• Uses information system to coordinate entire Uses information system to coordinate entire business processes of a firmbusiness processes of a firm

Customer Relationship Management (CRM)



• Provides end-to-end customer careProvides end-to-end customer care

• Provides a unified view of customer Provides a unified view of customer across the companyacross the company

• Consolidates customer data from multiple Consolidates customer data from multiple sources and provides analytical tools for sources and provides analytical tools for answering questionsanswering questions




Supply Chain Management (SCM)Supply Chain Management (SCM)• Close linkage and coordination of activities Close linkage and coordination of activities

involved in buying, making, and moving a involved in buying, making, and moving a productproduct

• Integrates supplier, manufacturer, Integrates supplier, manufacturer, distributor, and customer logistics time distributor, and customer logistics time

• Reduces time, redundant effort, and Reduces time, redundant effort, and inventory costsinventory costs

Supply Chain Management (SCM)



Supply ChainSupply Chain

• Network of organizations and business Network of organizations and business processes processes

• Helps in procurement of materials, Helps in procurement of materials, transformation of raw materials into transformation of raw materials into intermediate and finished productsintermediate and finished products




• Helps in distribution of the finished Helps in distribution of the finished products to customersproducts to customers

• Includes reverse logistics - returned items Includes reverse logistics - returned items flow in the reverse direction from the flow in the reverse direction from the buyer back to the sellerbuyer back to the seller




Supply Chain Management

• Decide when, what to produce, store, moveDecide when, what to produce, store, move• Rapidly communicate orders Rapidly communicate orders • Communicate orders, track order statusCommunicate orders, track order status• Check inventory availability, monitor levelsCheck inventory availability, monitor levels• Track shipments Track shipments • Plan production based on actual demand Plan production based on actual demand • Rapidly communicate product design changeRapidly communicate product design change• Provide product specificationsProvide product specifications• Share information about defect rates, returnsShare information about defect rates, returns


How Information Systems Facilitate Supply Chain Management


• Knowledge about how to create, produce and Knowledge about how to create, produce and deliver products and servicesdeliver products and services

• Enable organizations to better manage Enable organizations to better manage processes for capturing and applying processes for capturing and applying knowledge and expertise knowledge and expertise

• Process of acquiring, storing, distributing and Process of acquiring, storing, distributing and applying knowledgeapplying knowledge



Knowledge Management System

• Intranet connect internal company transaction Intranet connect internal company transaction systems, enabling employees to take actions systems, enabling employees to take actions central to a company’s operations central to a company’s operations

• Extranet expedite the flow of information Extranet expedite the flow of information between the firm and its suppliers and between the firm and its suppliers and customers.customers.



Intranet and Extranet

• Internet-based Collaboration EnvironmentInternet-based Collaboration Environment• E-mail and Instant Messaging (IM)E-mail and Instant Messaging (IM)• Cell Phones and Smart phonesCell Phones and Smart phones• Social NetworkingSocial Networking• WikisWikis• Virtual WorldsVirtual Worlds



Collaboration and Communication Systems

• E-business refers to the use of digital E-business refers to the use of digital technology and the internet to execute the technology and the internet to execute the major business processes in the enterprise. E-major business processes in the enterprise. E-business includes activities for the internal business includes activities for the internal management of the firm and for coordination management of the firm and for coordination with suppliers and other business partners.with suppliers and other business partners.

• E-commerce is the part of e-business that E-commerce is the part of e-business that deals with the buying and selling of goods and deals with the buying and selling of goods and services over the internet. It includes activities services over the internet. It includes activities supporting those market transactions, such as supporting those market transactions, such as advertising, marketing, customer support, advertising, marketing, customer support, delivery, payment, etc.delivery, payment, etc.



E-Business, E-Commerce and E-Government

• E-government refers to the application of the E-government refers to the application of the internet and networking technologies to internet and networking technologies to digitally enable government and public sector digitally enable government and public sector agencies’ relationships with citizens, agencies’ relationships with citizens, businesses and other arms of government.businesses and other arms of government.

• Makes government operations more efficient Makes government operations more efficient and empower citizens by giving them easier and empower citizens by giving them easier access to information and ability to network access to information and ability to network electronically with other citizenselectronically with other citizens



E-Business, E-Commerce and E-Government

• Programmers are highly trained technical specialists who write software instructions for computers.

• System Analysts constitute the principal liaison between the information systems groups and the rest of the organization and translates the business problems and requirements into information requirements and systems.

• Information system managers are leaders of teams of programmers and analysts, or database specialists.


The Information Systems Function in Business

The Information System Department

• Chief Information Officer (CIO) is a senior manager who oversees the use of information technology in the firm.

• Chief Security Office (CSO) is in-charge of information systems security for the firm and is responsible for enforcing the firm’s information security policy

• Chief Privacy Officer (CPO) is responsible for ensuring that the company complies with existing data privacy laws.

• Chief Knowledge officer (CKO) is responsible for firm’s knowledge management programmes

• End-users are representatives of departments outside of the information systems group for whom applications are developed.


The Information Systems Function in Business

The Information System Department

Thank YouThank You

MIS - CH 2

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