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MIS 301 Information Systems in Organizations

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1 MIS 301 Information Systems in Organizations
Dave Salisbury ( ) (web site)

2 Chapter Objectives Relate functional areas and business processes to the value chain model. Identify functional management information systems. Describe the transaction processing system and demonstrate how it is supported by IT. Describe the support provided by IT and the web to various functional areas.

3 Functional Areas – Value Chain Perspective

4 Functional Areas in a Business

5 Functional Information Systems
Composed of smaller systems: A functional information system consists of several smaller information systems that support specific activities performed in the functional area. Integrated or independent: The specific IS applications in any functional area can be integrated to form a coherent departmental functional system, they can be integrated across departmental lines to match a business process or be completely independent. Interfacing: Functional information systems may interface internally with each other to form the organization-wide information system or externally systems outside the organization. Supportive of different levels: Information systems applications support the three levels of an organization’s activities: operational, managerial, and strategic

6 Functional Information Systems
Data Analysis and statistical forecasting. Strategic Data mining ops that support management Dynamic and what-if features. Decision Support Back office administrative tasks & ops. Clerical documents, schedules, mail, manuals, etc. Office Operational level of the company is normally highly structured and predefined. Business transactions, events and processes. Support of the business and customers. Transactional

7 Business Application Architecture

8 Customer Relationship Management
Sales Cross-Sell Up-Sell TeleSales Store Front and Field Service Marketing and Fulfillment Customer Service and Support Retention and Loyalty Programs Contact Management

9 Cross-Functional Integrated Systems
Front Office Applications CRM Application Customer Service Field Service Sales Order Product Config Back Office ERP Application Distribution Manufacturing Scheduling Finance Enterprise Application Integration Enterprise Application Cluster Customers Suppliers Business Partners

10 TPS – Enterprise Wide Information Systems
Integration of Cross-Functional Information Systems tears down barriers between and among departments & corporate headquarters and reduces duplication of effort. ERP SCM

11 Functional Information Systems
Production Operations Marketing Human Resource Management Finance Accounting Functional Business Systems

12 Marketing Information Systems
Interactive Sales Force Automation Customer Relationship Management Sales Market Research and Forecasting Advertising and Promotions Product

13 Targeted Marketing Context Content Demographic/ Psychographic
Online Behavior Community

14 Manufacturing Information Systems
Engineering Systems CAD CAE Computer- Aided Process Planning Manufacturing Execution Shop Floor Scheduling Machine Control Process Control Robotic Control Computer Integrated Manufacturing Resource Production Forecasting Quality Control Remote Worker Supplier Extranet Intranet

15 Accounting Information Systems

16 Financial Information Systems
Planning Cash Management Investment Capital Budgeting

17 Transaction Processing Information Systems
The transaction processing system Monitors Collects Stores Processes Disseminates information for all routine core business transactions.

18 Transaction Processing Systems
Database Maintenance Transaction Processing Batch Online/Realtime Data Entry Document and Report Generation Inquiry 1 2 3 4 5

19 TPS – Orders Order taken Order fulfillment E-Payment E-Invoice

20 MANAGERIAL ISSUES Integration of functional information systems.
Integration of existing stand-alone functional information systems can be a major problem Issues with willingness to share information Priority of transaction processing. Deals with the core processes of organizations TPS collects the information needed for most other applications The customer is king/queen. Importance of the customer/end-user, whether external or internal Applications for increasing customers’ satisfaction difficult to justify in a traditional cost-benefit analysis Empowering customers to enter into a corporate database Self-service activities Customers get quick answers to their queries can save money for a company as well security and privacy concerns. Everyone in the organization must be concerned about customers

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