INFORMATION SYSTEMS IN THE ENTERPRISE CHAPTER-2 INFORMATION SYSTEMS IN THE ENTERPRISE

Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Types of Information Systems Figure 2-1

Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Figure 2-2

DIFFERENT TYPES OF INFORMATION SYSTEMS 1. TRANSACTION PROCESSING SYSTEM SERVE THE OPERATIONAL LEVEL OF ORGANIZATION MONITORS AND SUPPORTS THE ORGANIZATION’S BASIC BUSINESS TRANSACTIONS

DIFFERENT TYPES OF INFORMATION SYSTEMS TRANSACTION PROCESSING SYSTEM PROVIDES THE BACKBONE FOR MANY APPLICATIONS INVOLVING THE OTHER SUPPORT SYSTEMS IS CONSIDERED CRITICAL TO THE SUCCESS OF ANY ORGANIZATION SINCE IT SUPPORTS THE MISSION-CENTRAL OPERATIONS

DIFFERENT TYPES OF INFORMATION SYSTEMS 2. KNOWLEDGE WORK SYSTEM ENHANCES THE PRODUCTIVITY OF KNOWLEDGE WORKERS 3. OFFICE AUTOMATION SYSTEM (OAS) ENHANCES THE PRODUCTIVITY OF DATA WORKERS

DIFFERENT TYPES OF INFORMATION SYSTEMS 4. MANAGEMENT INFORMATION SYSTEM PROVIDES MANAGEMENT WITH PERIODIC REPORTS AND ACCESS TO THE ORGANIZATION’S CURRENT AND PAST PERFORMANCE MIS REPORTS ARE GENERATED FROM DATA FROM TPS ARE NOT HIGHLY ANALYTICAL ARE RELATIVELY INFLEXIBLE

DIFFERENT TYPES OF INFORMATION SYSTEMS 5. DECISION SUPPORT SYSTEM PROVIDE COMPUTERIZED SUPPORT TO COMPLEX NONROUTINE AND PARTIALLY STRUCTURED DECISIONS HAVE MORE ANALYTICAL MODELS AND DATA ANALYSIS CAPABILITIES THAN MIS  DRAW INFORMATION FROM EXTERNAL AND INTERNAL SOURCES

DIFFERENT TYPES OF INFORMATION SYSTEMS 6. EXECUTIVE SUPPORT SYSTEM SUPPORTS THE STRATEGIC LEVEL OF ORGANIZATION HAS LIMITED ANALYTICAL CAPABILITIES BUT USES SOPHISTICATED MODELING TOOLS USES INTERNAL AND EXTERNAL INFORMATION

CUSTOMER RELATIONSHIP MANAGEMENT (CRM) USE OF INFORMATION SYSTEMS FOR COORDINATING ALL THE BUSINESS PROCESSES RELATED TO DEALING WITH  CUSTOMERS

SUPPLY CHAIN MANAGEMENT INTERRELATED NETWORK OF FACILITIES AND DISTRIBUTION METHODS THAT OBTAIN MATERIALS, TRANSFORMS MATERIALS INTO FINISHED GOODS, AND DELIVER THE FINISHED GOODS TO CUSTOMERS

SUPPLY CHAIN MANAGEMENT ENTERPRISE APPLICATIONS 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

Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS Supply Chain Management Figure 2-15

ENTERPRISE APPLICATIONS Supply chain planning system: Enables firm to generate forecasts for a product and to develop sourcing and a manufacturing plan for the product Supply chain execution system: Manages flow of products through distribution centers and warehouses

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

Management Information Systems 8/e Chapter 2 Information Systems in the Enterprise ENTERPRISE APPLICATIONS Collaborative Commerce Figure 2-16

EXTENDED ENTERPRISES OR INDUSTRIAL NETWORKS SYSTEMS THAT LINK ENTERPRISE SYSTEMS OF MANY FIRMS IN THE INDUSTRY TWO TYPES OF INDUSTRIAL NETWORKS VERTICAL INDUSTRIAL NETWORKS HORIZONTAL INDUSTRIAL NETWORKS

ENTERPRISE RESOURCE PLANNING (ERP) AN INTEGRATED INFORMATION SYSTEM, WHICH FACILITATES THE EXCHANGE OF DATA AMONG CORPORATE DIVISIONS THROUGH UNIFICATION OF KEY BUSINESS PROCESSES

ADVANTAGES OF ERP GREATER CONTROL AND BETTER DECISION MAKING FOR THE MANAGEMENT IMPROVED CUSTOMER SERVICE AND ORDER PROCESSING UNIFICATION OF BUSINESS FUNCTIONS AND PROCESSES INTEGRATION OF DISPARATE TECHNOLOGIES

DISADVANTAGES OF ERP DIFFICULT TO IMPLEMENT HIGH UP-FRONT COSTS FOR LONG-TERM BENEFITS DIFFICULT TO CHANGE MAY LACK STRATEGIC BENEFITS FOR THE FIRM

Knowledge Management Systems Discovering and codifying knowledge Creating knowledge Sharing knowledge Distributing knowledge