Type of System andIS Competitive Advantage

Soetam Rizky

Type of System

Strategic Level

Management Level

Operational Level

Type of System

Major Type

Transaction Processing

Systems

Management Information

System

Decision Support System

Executive Support System

Type of System - 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

Type of System

Major Type

Transaction Processing

Systems

Management Information

System

Decision Support System

Executive Support System

Type of System - MIS

• Management level

• Inputs: High volume transaction level data

• Processing: Simple models

• Outputs: Summary reports

• Users: Middle managers

Type of System - MIS

Type of System

Major Type

Transaction Processing

Systems

Management Information

System

Decision Support System

Executive Support System

Type of System - DSS

• Management level

• Inputs: Transaction level data

• Processing: Interactive

• Outputs: Decision analysis

• Users: Professionals, staff

Type of System - DSS

Figure 2-7

Type of System

Major Type

Transaction Processing

Systems

Management Information

System

Decision Support System

Executive Support System

Type of System - ESS

• Inputs: Aggregate data

• Processing: Interactive

• Outputs: Projections

• Users: Senior managers

Type of System - ESS

• Top Level Management

• Designed to the individual senior manager

• Ties CEO to all levels

• Very expensive to keep up

• Extensive support staff

Before we continue….

TPS, DSS, MIS or ESS that we must build first ?

The Dimensions of Competitive Advantage

Strategic advantage has a fundamental effect in shaping the firm’s operations.

Tactical advantage is when the firm implements a strategy better than its competitors.

Operational advantage deals with everyday transactions and processes.

Management Information Systems, 10/e Raymond McLeod and George Schell

16© 2007 by Prentice Hall

Strategic Planning for Information Resources (SPIR)

• Chief Information Officer (CIO)• Chief Technology Officer (CTO)• Strategic Planning– Enterprise–executive committee– Business areas–resources for human,

information, financial, marketing, manufacturing

Management Information Systems, 10/e Raymond McLeod and George Schell

17© 2007 by Prentice Hall

The SPIR Approach

• Concurrent development of strategic plans for information services and the firm so that the firm’s plan reflects the support to be provided by information services.

• The IS plan reflects future demands for systems support.

Management Information Systems, 10/e Raymond McLeod and George Schell

18© 2007 by Prentice Hall

Strategic Planning for Information Resources

Management Information Systems, 10/e Raymond McLeod and George Schell

19© 2007 by Prentice Hall

Core Content of a Strategic Planning for Information Resources

• The objectives to be achieved by each category of systems during the time period.

• The information resources necessary to meet the objectives.

Quick Summary

TPS, DSS, MIS or ESS ?

Competitive advantage using strategic IS

Aligning IS and business strategy

Questions / Comments ?