1 Information systems for the firm Main types (Source : Laudon & Laudon, Prentice- Hall, 2000)

2 Four levels of applications of I.S. in the firm Strategy level: I.S. for top executives Management level: I.S. for middle management “Knowledge” level: I.S. for office employees Operations level: I.S. for production, sales, marketing, accounting, and H.R. functions

3 Operations level I.S. to treat day to day transactions

4 “Knowledge” level two types of information system Systems for basic office work: –Word processing –Document and image creation –Electronic calendar (Outlook…) Systems for intellectual work: –Engineering work stations and softwares –Management work stations and softwares

5 Management level two types of information system Management information systems: –Sales management –Stock control –Yearly budgeting –Capital investment control –Careers evolution management Systems to assist middle mgt decision process: –Sales analysis by region –Production planning –Costs analysis and costs control –Price analysis and profitability analysis

6 Strategy level I.S. for top executives Five year sales forecast Five year operation planning Five year budget forecast Profitability forecast Human resources planning

7 Features and users of I.S.

8 Evolution of Information Systems Information Systems entered the firms in the 60’s –They were first used in accounting and production control In the 80’s and 90’s, they entered all the other functions of the firm (from bottom up) –I.S. can tremendously increase the firm’s productivity –Information is now considered a “product” with strategic value, whereas a generation ago it was only “red tape”

9 An example When it was realised that gaining a new client was about 5 times more expensive than keeping an existing one, and that I.S. provided new means to analyze and retain clients, C.R.M. (Client Relationship Management) was born. “The most efficient sale action is to treat well your existing clients” You have to know them very well, and customize your relationship with them.