1. Information Systems In The Enterprise
SESSION 2
Information Systems In The Enterprise

2. KEY SYSTEM APPLICATIONS Types of Information Systems
Figure 2-1

3. KEY SYSTEM APPLICATIONS
Major Types of Systems
Executive Support Systems (ESS)
Decision Support Systems (DSS)
Management Information Systems (MIS)
Knowledge Work Systems (KWS)
Office Automation Systems (OAS)
Transaction Processing Systems (TPS)

4. TYPES OF INFORMATION SYSTEMS
Figure 2-2

5. KEY SYSTEM APPLICATIONS
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
So central to the business that its failure can hurt the firm
e.g. sales order entry package tracking, payroll

6. KEY SYSTEM APPLICATIONS
Payroll TPS
Figure 2-3

7. KEY SYSTEM APPLICATIONS
Knowledge Work Systems (KWS) or Knowledge Management Systems:
Users: knowledge workers
Promote the creation and integration of new knowledge in the organization
Rely on internet, intranet web sites, knowledge bases and discussion forums
Office Systems
Users: data workers
Designed to increase the productivity
Ex: word processing, , voice mail

8. KEY SYSTEM APPLICATIONS
Management Information System (MIS):
Users: managers
Serve the functions of planning, controlling, and decision making
Generally depend on TPS for their data
Contents of the info. products generated by MIS are specified in advance

9. KEY SYSTEM APPLICATIONS
Management Information Systems (MIS)
Support structured and semi-structured decisions
Report control oriented
Past and present data
Internal orientation
have little analytical capability

10. KEY SYSTEM APPLICATIONS
Management Information System (MIS)
Figure 2-5

11. KEY SYSTEM APPLICATIONS Decision Support System (DSS):
Users: management level
Semi structured decisions
Sources: MIS, TPS and external
Strong analytical power and interactive
Ex: Contract cost analysis

12. KEY SYSTEM APPLICATIONS
Decision Support System (DSS)
Figure 2-7

13. KEY SYSTEM APPLICATIONS Executive Support System (ESS):
Users: senior managers (strategic level)
Unstructured decisions
Source: external data, MIS, DSS
Generalized computing and communications capacity
Less use of analytical models

14. KEY SYSTEM APPLICATIONS
Executive Support System (ESS)
Figure 2-8

15. INTERRELATIONSHIPS AMONG SYSTEMS
Figure 2-9

16. 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 IS, market research system, pricing system

17. 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, quality control systems

18. 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

19. 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

20. 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
Unique ways to coordinate work,
information, and knowledge
IS achieves great efficiencies by automating parts of processes

21. 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

22. INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
The Order Fulfillment Process
Figure 2-12

23. INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Customer Relationship Management (CRM)
Manages all ways used by firms to deal with existing and potential new customers
Business and Technology discipline
Uses information system to coordinate entire consumer related business processes of a firm

24. INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Customer Relationship Management (CRM)
Figure 2-13

25. INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Supply Chain Management (SCM)
Close linkage and coordination of activities involved in buying, making, and moving a product
Integrates supplier, manufacturer, distributor, and customer
Reduces time, redundant effort, and inventory costs

26. INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Supply Chain Management
Figure 2-14

27. Decide when, what to produce, store, move Rapidly communicate orders
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
How Information Systems Facilitate Supply Chain Management
Decide when, what to produce, store, move
Rapidly communicate orders
Communicate orders, track order status
Check inventory availability, monitor levels
Track shipments
Plan production based on actual demand
Rapidly communicate product design change
Provide product specifications
Share information about defect rates, returns

28. INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Supply Chain Management (SCM)
Limitations:
Inefficiencies can waste as much as 25% of company’s operating costs
Bullwhip Effect: Information about the demand for the product gets distorted as it passes from one entity to next

29. INTEGRATING FUNCTIONS AND BUSINESS PROCESSES 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

30. INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Collaborative Commerce
Private Industrial Networks
Web-enabled networks
Link systems of multiple firms in an industry
Coordinate transorganizational business processes

31. Enterprise Systems (Enterprise Resource Planning –ERP)
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Enterprise Systems (Enterprise Resource Planning –ERP)
Integrate the key business processes of an entire firm
Consolidate information across the organization
Allow information to flow seamlessly throughout the organization

32. INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Enterprise Systems
Benefits
Firm structure and organization: One organization
Management: Firm-wide knowledge-based management processes
Technology: Unified platform
Business: More efficient operations and customer-driven business processes

33. INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Enterprise Systems
Challenges
Difficult to build: Require fundamental changes in the way the business operates
Technology: Require complex pieces of software and large investments of time, money, and expertise
Centralized organizational coordination and decision making: Not the best way for the firms to operate