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CHAPTER 2: INFORMATION SYSTEMS IN THE ENTERPRISE

CHAPTER 2: INFORMATION SYSTEMS IN THE ENTERPRISE. Different Kinds of Systems. Operational-level Keep track of and monitor flow of transactions Knowledge-level Support knowledge and data workers Management-level Support middle-level management decision-making Strategic-level

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CHAPTER 2: INFORMATION SYSTEMS IN THE ENTERPRISE

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  1. CHAPTER 2: INFORMATION SYSTEMS IN THE ENTERPRISE

  2. Different Kinds of Systems • Operational-level • Keep track of and monitor flow of transactions • Knowledge-level • Support knowledge and data workers • Management-level • Support middle-level management decision-making • Strategic-level • Support long-range planning of senior management

  3. Six Major Types of Systems • ESS: executive support systems • MIS: management information systems • DSS: decision support systems • KWS: knowledge work systems • OAS: office automation systems • TPS: transactional processing systems

  4. Transaction Processing Systems (TPS) • Basic business system • Serves operational level • Records daily, routine activities • E.g. sales order entry, hotel reservation, payroll

  5. Knowledge Work Systems (KWS) • Help knowledge workers (e.g. scientists, doctors, engineers) • Ensure that new knowledge is integrated into the organization • CAD/CAE • Knowledge Databases • Lexis (legal DB) • PDR (Physician Desk Reference) Online

  6. Office Automation Systems (OAS) • Help data workers (e.g. secretaries, accounting clerks) • Coordinate workers & communicate with customers, suppliers and others • Handle and manage documents • E.g. word processing, document imaging & desktop publishing systems

  7. Management Information Systems (MIS) • Serve management level • Provide scheduled, summary or exception reports • Use data collected by TPS • Oriented to internal, not external events of organization

  8. Decision Support Systems (DSS) • Like MIS, DSS also support management level of organization • Support semi-structured & unstructured decision-making • Use external as well as internal data • Combine data and analytical models • E.g. Group DSS (GDSS), & Expert Systems

  9. Executive Support Systems • Serve strategic level of the organization • Support non-routine decision-making • Create a generalized computing & communications environment • Use advanced graphics software to create output for executives • Use data from external & internal sources

  10. Relationship of Systems

  11. IS from a Functional Perspective • Sales & Marketing Systems • Manufacturing & Production Systems • Finance & Accounting Systems • Human Resources Systems

  12. Integrating Business Functions & Processes • Achieve business processes efficiencies with information systems • Automate processes • Redesign processes • Cross Functional Business Processes • Customer Relationship Management (CRM) • Supply Chain Management • Enterprise Systems

  13. Customer Relationship Management (CRM) • Coordinates all processes that involves customers • Maximizes value of firm to customer • Maximizes value of customer to firm • Usually cross-IS type (TPS, MIS etc.) • Combines data from multiple sources

  14. Supply Chain Management • Coordinate all activities in the supply chain • Purchase raw mtls, manufacture product, inventory, logistics (distribution) • Involves external suppliers and customers • Minimize costs, inventory, and cycle time • Maximize profit • Cross-IS type (TPS, MIS etc) • Internet based (intranets, extranets) • EDI

  15. Enterprise Systems (ERP) • Integrate key business processes across functional areas • More efficient operations • Org info readily and easily available to all that need it • Cross-IS type

  16. Challenges of Enterprise Systems • Daunting Implementation • High upfront costs and future benefits • Inflexibility

  17. Extended Enterprises & Industrial Networks • Vertical Industrial Networks • Link firms with their suppliers • Horizontal Industrial Networks • Link firms across an entire industry

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