1. Sheu 1 L Ch2: The Strategic Role Of Information Systems LEARNING OBJECTIVES n LEARN ROLES OF 6 TYPES OF INFORMATION SYSTEMS n DISCUSS TYPES OF INFORMATION SYSTEMS n IDENTIFY OPPORTUNITIES FOR STRATEGIC INFORMATION SYSTEMS n EXPLAIN DIFFICULTIES OF BUILDING, SUSTAINING STRATEGIC INFORMATION SYSTEMS n DESCRIBE USES OF INFORMATION SYSTEMS IN OPERATIONS, PRODUCTS, SERVICES

2. Sheu 2 MAJOR TYPES OF SYSTEMS Varous perspectives on kinds/types of IS (fg 2.1) (fg 2.2) & their characteristics (fg 2.3) n EXECUTIVE SUPPORT SYSTEMS (ESS) n MANAGEMENT INFORMATION SYSTEMS (MIS) n DECISION SUPPORT SYSTEMS (DSS) n KNOWLEDGE WORK STATIONS (KWS) n OFFICE AUTOMATION SYSTEMS (OAS) n TRANSACTION PROCESSING SYSTEMS(TPS) *

3. Sheu 3 n OPERATIONAL LEVEL n INPUTS: TRANSACTIONS, EVENTS n PROCESSING: UPDATING n OUTPUTS: DETAILED REPORTS n USERS: OPERATIONS PERSONNEL EXAMPLE: ACCOUNTS PAYABLE TRANSACTION PROCESSING SYSTEMS (TPS) TPS

4. Sheu 4 TYPICAL TPS APPLICATIONS Sales & Marketing Systems MAJOR FUNCTIONS OF SYSTEMS: n Sales Management; Market Research; Promotion; Pricing; New Products MAJOR APPLICATION SYSTEMS: n Sales Order Info System; Market Research System; Pricing System TPS

5. Sheu 5 TYPICAL TPS APPLICATIONS Manufacturing & Production Systems MAJOR FUNCTIONS OF SYSTEMS: n Scheduling; Purchasing; Shipping / Receiving; Engineering; Operations MAJOR APPLICATION SYSTEMS: n Materials Resource Planning Systems; Purchase Order Control Systems; Engineering Systems; Quality Control Systems * TPS

6. Sheu 6 TYPICAL TPS APPLICATIONS Finance & Accounting Systems MAJOR FUNCTIONS OF SYSTEMS: n Budgeting; General Ledger; Billing: Cost Accounting MAJOR APPLICATION SYSTEMS: n General Ledger; Accounts Receivable / Payable; Budgeting; Funds Management Systems * TPS

7. Sheu 7 TYPICAL TPS APPLICATIONS Human Resources Systems MAJOR FUNCTIONS OF SYSTEMS: n Personnel Records; Benefits; Compensation; Labor Relations; Training MAJOR APPLICATION SYSTEMS: n Payroll; Employee Records; Benefit Systems; Career Path Systems; Personnel Training Systems TPS

8. Sheu 8 TYPICAL TPS APPLICATIONS Other Types (e.g., University) MAJOR FUNCTIONS OF SYSTEMS: n Admissions; Grade Records; Course Records; Alumni MAJOR APPLICATION SYSTEMS: n Registration System; Student Transcript System; Curriculum Class Control System; Alumni Benefactor System TPS

9. Sheu 9 n KNOWLEDGE LEVEL n INPUTS: DESIGN SPECS n PROCESSING: MODELLING n OUTPUTS: DESIGNS, GRAPHICS n USERS: TECHNICAL STAFF EXAMPLE: ENGINEERING WORK STATION KNOWLEDGE WORK SYSTEMS (KWS)

10. Sheu 10 OFFICE AUTOMATION SYSTEMS (OAS) TOWARD A “ PAPERLESS ” OFFICE TOWARD A “ PAPERLESS ” OFFICE n REDESIGN OF WORK FLOW n INTEGRATED SOFTWARE n ERGONOMIC DESIGN n BRIGHT, CHEERFUL WORK SPACE EXAMPLE: PRESENTATION GRAPHICS

11. Sheu 11 n MANAGEMENT LEVEL n INPUTS: HIGH VOLUME DATA n PROCESSING: SIMPLE MODELS n OUTPUTS: SUMMARY REPORTS n USERS: MIDDLE MANAGERS EXAMPLE: ANNUAL BUDGETING MANAGEMENT INFORMATION SYSTEMS (MIS)

12. Sheu 12 n STRUCTURED & SEMI-STRUCTURED DECISIONS n REPORT CONTROL ORIENTED n PAST & PRESENT DATA n INTERNAL ORIENTATION n LENGTHY DESIGN PROCESS TPS vs MIS n TPS DATA FOR MIS APPLICATIONS (fg 2.6) MANAGEMENT INFORMATION SYSTEMS (MIS)

13. Sheu 13 n MANAGEMENT LEVEL n INPUTS: LOW VOLUME DATA n PROCESSING: INTERACTIVE n OUTPUTS: DECISION ANALYSIS n USERS: PROFESSIONALS, STAFF n FLEXIBLE, ADAPTABLE, QUICK n USER CONTROLS INPUTS/OUTPUTS n NO PROFESSIONAL PROGRAMMING n SUPPORTS DECISION PROCESS n SOPHISTICATED MODELING TOOLS EXAMPLE: CONTRACT COST ANALYSIS DECISION SUPPORT SYSTEMS (DSS)

14. Sheu 14 n STRATEGIC LEVEL n INPUTS: AGGREGATE DATA n PROCESSING: INTERACTIVE n OUTPUTS: PROJECTIONS n USERS: SENIOR MANAGERS EXAMPLE: 5 YEAR OPERATING PLAN EXECUTIVE SUPPORT SYSTEMS (ESS)

15. Sheu 15 n TOP LEVEL MANAGEMENT n DESIGNED TO THE INDIVIDUAL n TIES CEO TO ALL LEVELS n VERY EXPENSIVE TO KEEP UP n EXTENSIVE SUPPORT STAFF INTERRELATIONSHIPS AMONG SYSTEMS fg 2.10fg 2.10* EXECUTIVE SUPPORT SYSTEMS (ESS)

16. Sheu 16 STRATEGIC ROLE OF INFORMATION SYSTEMS n STRATEGIC INFO SYSTEM: CAN FUNDAMENTALLY CHANGE GOALS, OPERATIONS, PRODUCTS, SERVICES, ENVIRONMENT.CAN FUNDAMENTALLY CHANGE GOALS, OPERATIONS, PRODUCTS, SERVICES, ENVIRONMENT. TO GAIN COMPETITIVE ADVANTAGETO GAIN COMPETITIVE ADVANTAGE n Strategic Info Sys vs Strategic-level Info Sys. Strategic-level IS: focus on long-term str problemStrategic-level IS: focus on long-term str problem Str Info Sys: at any level, change goals/operation …Str Info Sys: at any level, change goals/operation … n Two models for identifying SIS opportunities: Competitive Force Model: fg 2.11 – –Prod differentiation <Citibank ATM) – –Focused diff (niche) (Provide specialized prod/service to narrow target MKT better. – –Tight linkage to customer-supplier (increase switching cost) – –Low cost producer Value Chain Model: fg 2.13