1. 2.1 © 2003 by Prentice Hall Group #4 IE447 Başak Altın Nagehan Bodur Mehmet Akdemir

2. 2.2 © 2003 by Prentice Hall What are the major types of systems in a business ?

3. 2.3 © 2003 by Prentice Hall Major Types of Systems Executive Support Systems (ESS)Executive Support Systems (ESS) Decision Support Systems (DSS)Decision Support Systems (DSS) Management Information Systems (MIS)Management Information Systems (MIS) Transaction Processing Systems (TPS)Transaction Processing Systems (TPS) KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

4. 2.4 © 2003 by Prentice Hall Enterprise Systems INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

5. 2.5 © 2003 by Prentice Hall Business processes Manner in which work is organized, coordinated, and focused to produce a valuable product or serviceManner in which work is organized, coordinated, and focused to produce a valuable product or service Concrete work flows of material, information, and knowledge—sets of activitiesConcrete work flows of material, information, and knowledge—sets of activities Business Processes and Information Systems INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

6. 2.6 © 2003 by Prentice Hall INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Unique ways to coordinate work,Unique ways to coordinate work, information, and knowledge Ways in which management choosesWays in which management chooses to coordinate work Business Processes and Information Systems

7. 2.7 © 2003 by Prentice Hall Traditional View of the Systems INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

8. 2.8 © 2003 by Prentice Hall KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Transaction Processing Systems (TPS): Basic business systems that serve the operational levelBasic business systems that serve the operational level A computerized system that performs and records the daily routine transactions necessary to the conduct of the businessA computerized system that performs and records the daily routine transactions necessary to the conduct of the business

9. 2.9 © 2003 by Prentice Hall Types of TPS Systems KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

10. 2.10 © 2003 by Prentice Hall System Architecture: Transaction Processing System

11. 2.11 © 2003 by Prentice Hall Major functions of systems: Budgeting, general ledger, billing, cost accountingBudgeting, general ledger, billing, cost accounting Major application systems: General ledger, accounts receivable, accounts payable, budgeting, funds management systemsGeneral ledger, accounts receivable, accounts payable, budgeting, funds management systems Financing and Accounting Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

12. 2.12 © 2003 by Prentice Hall Major functions of systems: Sales management, market research, promotion, pricing, new productsSales management, market research, promotion, pricing, new products Major application systems: Sales order info system, market research system, pricing systemSales order info system, market research system, pricing system SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Sales and Marketing Systems

13. 2.13 © 2003 by Prentice Hall Major functions of systems: Scheduling, purchasing, shipping, receiving, engineering, operationsScheduling, purchasing, shipping, receiving, engineering, operations Major application systems: Materials resource planning systems, purchase order control systems, engineering systems, quality control systemsMaterials resource planning systems, purchase order control systems, engineering systems, quality control systems Manufacturing and Production Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

14. 2.14 © 2003 by Prentice Hall Major functions of systems: Personnel records, benefits, compensation, labor relations, trainingPersonnel records, benefits, compensation, labor relations, training Major application systems: Payroll, employee records, benefit systems, career path systems, personnel training systemsPayroll, employee records, benefit systems, career path systems, personnel training systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Human Resource Systems

15. 2.15 © 2003 by Prentice Hall Human Resource Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

16. 2.16 © 2003 by Prentice Hall Payroll TPS KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

17. 2.17 © 2003 by Prentice Hall System Example: Payroll System (TPS)

18. 2.18 © 2003 by Prentice Hall Overview of Inventory Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

19. 2.19 © 2003 by Prentice Hall 19 Management Information System (MIS) Management Information System (MIS) –An MIS provides managers with information and support for effective decision making, and provides feedback on daily operations. –MIS provides information to the users in the form of reports –Output, or reports, are usually generated through accumulation of transaction processing data. –MIS is an integrated collection of subsystems, which are typically organized along functional lines within an organization.

20. 2.20 © 2003 by Prentice Hall Management Information System (MIS): Management level Inputs: High volume dataInputs: High volume data Processing : Simple modelsProcessing : Simple models Outputs: Summary reportsOutputs: Summary reports Users: Middle managersUsers: Middle managers Example: Annual budgeting KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

21. 2.21 © 2003 by Prentice Hall Structured and semi-structured decisionsStructured and semi-structured decisions Report control orientedReport control oriented Past and present dataPast and present data Internal orientationInternal orientation Lengthy design processLengthy design process KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Management Information System (MIS)

22. 2.22 © 2003 by Prentice Hall KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Management Information System (MIS)

23. 2.23 © 2003 by Prentice Hall System Architecture: Management Information System

24. 2.24 © 2003 by Prentice Hall Management Information System Scheduled reportsScheduled reports Key-indicator reportsKey-indicator reports Exception reportsException reports Ad hoc (demand) reportsAd hoc (demand) reports Drill-down reportsDrill-down reports Creates reports managers can use to make routine business decisions MIS

25. 2.25 © 2003 by Prentice Hall 25 Scheduled Reports Produced periodically, or on a schedule (daily, weekly, monthly).

26. 2.26 © 2003 by Prentice Hall Key-Indicator Report Summarizes the previous day’s critical activities and typically available at the beginning of each day.

27. 2.27 © 2003 by Prentice Hall 27 Demand Report Gives certain information at a manager’s request. Exception Report Automatically produced when a situation is unusual or requires management action.

28. 2.28 © 2003 by Prentice Hall 28 Drill Down Reports Provide detailed data about a situation.

29. 2.29 © 2003 by Prentice Hall Decision Support System (DSS): Management level Inputs: Low volume dataInputs: Low volume data Processing: InteractiveProcessing: Interactive Outputs: Decision analysisOutputs: Decision analysis Users: Professionals, staffUsers: Professionals, staff Example: Contract cost analysis KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

30. 2.30 © 2003 by Prentice Hall KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Decision Support System (DSS)

31. 2.31 © 2003 by Prentice Hall Four Types of Models Four Types of Models

32. 2.32 © 2003 by Prentice Hall KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Decision Support System (DSS)

33. 2.33 © 2003 by Prentice Hall Top level managementTop level management Designed to the individualDesigned to the individual Ties CEO to all levelsTies CEO to all levels Very expensive to keep upVery expensive to keep up Extensive support staffExtensive support staff KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Executive support system (ESS)

34. 2.34 © 2003 by Prentice Hall Executive Support System (ESS): Strategic level Inputs: Aggregate dataInputs: Aggregate data Processing: InteractiveProcessing: Interactive Outputs: ProjectionsOutputs: Projections Users: Senior managersUsers: Senior managers Example: 5-year operating plan KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

35. 2.35 © 2003 by Prentice Hall KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Executive Support System (ESS)

36. 2.36 © 2003 by Prentice Hall INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Cross-Functional Business Processes Transcend boundary between sales, marketing, manufacturing, and research and developmentTranscend boundary between sales, marketing, manufacturing, and research and development Group employees from different functional specialties to a complete piece of workGroup employees from different functional specialties to a complete piece of work Example: Order Fulfillment Process Business Processes and Information Systems

37. 2.37 © 2003 by Prentice Hall The Order Fulfillment Process INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

38. 2.38 © 2003 by Prentice Hall Types of Information Systems KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

39. 2.39 © 2003 by Prentice Hall TYPES OF INFORMATION SYSTEMS

40. 2.40 © 2003 by Prentice Hall INTERRELATIONSHIPS AMONG SYSTEMS

41. 2.41 © 2003 by Prentice Hall

42. 2.42 © 2003 by Prentice Hall Knowledge Work Systems (KWS): Knowledge level Inputs: Design specsInputs: Design specs Processing: ModelingProcessing: Modeling Outputs: Designs, graphicsOutputs: Designs, graphics Users: Technical staffUsers: Technical staff Example: Engineering work station KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

43. 2.43 © 2003 by Prentice Hall Business Processes and Information Systems INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Information systems help organizations Achieve great efficiencies by automating parts of processesAchieve great efficiencies by automating parts of processes Rethink and streamline processesRethink and streamline processes

44. 2.44 © 2003 by Prentice Hall Human Resource Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

45. 2.45 © 2003 by Prentice Hall Finance and accounting: Paying creditors, creating financial statements, managing cash accountsFinance and accounting: Paying creditors, creating financial statements, managing cash accounts Human Resources: Hiring employees, evaluating performance, enrolling employees in benefits plansHuman Resources: Hiring employees, evaluating performance, enrolling employees in benefits plans Examples of Business Processes INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

46. 2.46 © 2003 by Prentice Hall Manufacturing and production: Assembling product, checking quality, producing bills of materialsManufacturing and production: Assembling product, checking quality, producing bills of materials Sales and marketing: Identifying customers, creating customer awareness, sellingSales and marketing: Identifying customers, creating customer awareness, selling Examples of Business Processes INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

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