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MODULE-2 : UNIT-6 INTRODUCTION TO COMMONLY USED SYSTEMS AND MODELS. OBJECTIVES. What are the major types of systems in a business? What role do they play? How do information systems support the major business functions? Why should managers pay attention to business processes?. OBJECTIVES.

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MODULE-2 : UNIT-6 INTRODUCTION TO COMMONLY USED SYSTEMS AND MODELS

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Module 2 unit 6 introduction to commonly used systems and models

MODULE-2 : UNIT-6

INTRODUCTION TO COMMONLY USED SYSTEMS AND MODELS


Module 2 unit 6 introduction to commonly used systems and models

OBJECTIVES

  • What are the major types of systems in a business? What role do they play?

  • How do information systems support the major business functions?

  • Why should managers pay attention to business processes?


Module 2 unit 6 introduction to commonly used systems and models

OBJECTIVES

  • What are the benefits and challenges of using enterprise resource planning (ERPS) systems?

  • What are the benefits of using systems to support supply chain management ?

  • What are the benefits of using information systems for customer relationship management and knowledge management?


Module 2 unit 6 introduction to commonly used systems and models

MANAGEMENT CHALLENGES

  • Integration:Different systems serve variety of functions, connecting organizational levels difficult & costly.

  • Enlarging Scope of Management Thinking:Huge system investments, long development time must be guided by common objectives.


Module 2 unit 6 introduction to commonly used systems and models

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Figure 2-1

Types of Information Systems


Module 2 unit 6 introduction to commonly used systems and models

MAJOR TYPES OF INFORMATION SYSTEMS IN ORGANIZATIONS

BROAD CLASSIFICATION

  • Operations Support Systems (OSS)

  • Management Support Systems (MSS)

  • Other Systems


Module 2 unit 6 introduction to commonly used systems and models

MAJOR TYPES OF INFORMATION SYSTEMS IN ORGANIZATIONS

Operations Support Systems (OSS)

  • Transaction Processing Systems (TPS)

  • Process Control Systems (PCS)

  • Office Automation Systems (OAS)

  • Knowledge Work Systems (KWS)


Module 2 unit 6 introduction to commonly used systems and models

MAJOR TYPES OF INFORMATION SYSTEMS IN ORGANIZATIONS

Management Support Systems (MSS)

  • Executive Support Systems (ESS)

  • Decision Support Systems (DSS)

  • Management Information Systems (MIS)


Module 2 unit 6 introduction to commonly used systems and models

MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

OTHER INFORMATION SYSTEMS

  • Systems from a Functional Perspective (BIS)

  • Enterprise Systems

  • Business Expert Systems (Intelligent Systems)


Module 2 unit 6 introduction to commonly used systems and models

MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Figure 2-2


Module 2 unit 6 introduction to commonly used systems and models

MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

  • Transaction Processing Systems (TPS):

  • Basic business systems that serve the operational level.

  • A computerized system that performs and records the daily routine transactions necessary to the conduct of the business.

  • There is a TPS in each functional area.


Module 2 unit 6 introduction to commonly used systems and models

MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Figure 2-3

Payroll TPS (HR Function)


Module 2 unit 6 introduction to commonly used systems and models

MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Knowledge Work Systems (KWS)

Knowledge level

  • Inputs:Design specs

  • Processing:Modeling

  • Outputs:Designs, graphics

  • Users:Technical staff and professionals

    Example: Engineering work station


Module 2 unit 6 introduction to commonly used systems and models

MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Management Information System (MIS):

Management level

  • Inputs: High volume data from TPS

  • Processing: Simple models

  • Outputs: Summary reports

  • Users: Middle managers

    Example: Annual budgeting


Module 2 unit 6 introduction to commonly used systems and models

MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Management Information System (MIS)

CHARACTERISTICS

  • Structured and semi-structured decisions

  • Report control oriented

  • Past and present data

  • Internal orientation

  • Lengthy design process


Module 2 unit 6 introduction to commonly used systems and models

MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Decision Support System (DSS):

Management Level

  • Inputs: Low volume data

  • Processing: Interactive

  • Outputs: Decision analysis

  • Users: Professionals, staff

    Example: Contract cost analysis


Module 2 unit 6 introduction to commonly used systems and models

DECISION-SUPPORT SYSTEMS (DSS)

Overview of a Decision-Support System (DSS)

Figure 11-2


Module 2 unit 6 introduction to commonly used systems and models

MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Executive Support System (ESS):

Strategic Level :

  • Inputs: Aggregate data (internal & external)

  • Processing: Interactive, analytical

  • Outputs: Projections for future

  • Users: Senior managers

    Example: 5-year operating plan


Module 2 unit 6 introduction to commonly used systems and models

MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Figure 2-8

Executive Support System (ESS)


Module 2 unit 6 introduction to commonly used systems and models

MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Executive Support System (ESS) : Characteristics

  • Top level management

  • Designed to the style of Individual Executive

  • Ties CEO to all levels

  • Very expensive to keep up, extensive support staff.

  • Presentation Methods : Graphics Display, Exception Reporting, Trend Analysis

  • Web browsing ability

  • Analytical techniques based on Management Science and OR


Module 2 unit 6 introduction to commonly used systems and models

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Sales and Marketing Systems

Major functions of systems:

  • Sales management, market research, promotion, pricing, new products

    Major application systems:

  • Sales order info system, market research system, pricing system


Module 2 unit 6 introduction to commonly used systems and models

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Sales and Marketing Systems

Table 2-2


Module 2 unit 6 introduction to commonly used systems and models

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Manufacturing and Production Systems

Major functions of systems:

  • Scheduling, purchasing, shipping, receiving, engineering, operations

    Major application systems:

  • Materials resource planning systems, purchase order control systems, engineering systems, quality control systems


Module 2 unit 6 introduction to commonly used systems and models

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Manufacturing and Production Systems

Table 2-3


Module 2 unit 6 introduction to commonly used systems and models

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Finance and Accounting Information Systems

Major functions of systems:

  • Budgeting, general ledger, billing, cost accounting

    Major application systems:

  • General ledger, accounts receivable, accounts payable, budgeting, funds management systems


Module 2 unit 6 introduction to commonly used systems and models

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Finance and Accounting Information Systems

Table 2-4


Module 2 unit 6 introduction to commonly used systems and models

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Human Resource Information Systems

Major functions of systems:

  • Personnel records, benefits, compensation, labor relations, training

    Major application systems:

  • Payroll, employee records, benefit systems, career path systems, personnel training systems


Module 2 unit 6 introduction to commonly used systems and models

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Human Resource Information Systems

Table 2-5


Module 2 unit 6 introduction to commonly used systems and models

ENTERPRISE APPLICATIONS

  • Enterprise resource planning systems (ERPS)

  • Supply chain management systems (SCM)

  • Customer relationship management systems (CRM)

  • Knowledge management systems (KMS)


Module 2 unit 6 introduction to commonly used systems and models

ENTERPRISE APPLICATIONS

Figure 2-14

Enterprise Resource Planning Systems (ERPS)


Module 2 unit 6 introduction to commonly used systems and models

ENTERPRISE APPLICATIONS

Benefits of ERP Systems

  • Firm structure and organization: New structures possible, disciplined organization Culture.

  • Management: Improved management reporting and decision making.

  • I.S. Technology: Unified platform

  • Business Capability: More efficient operations and customer-driven business processes.


Module 2 unit 6 introduction to commonly used systems and models

ENTERPRISE APPLICATIONS

Challenges of ERP Systems

  • Difficult to build: Require fundamental changes in the way the business operates

  • Technology: Require complex pieces of software and large investments of time, money, and expertise

  • Centralized organizational coordination and decision making: Not the best way for some firms to operate


Module 2 unit 6 introduction to commonly used systems and models

ENTERPRISE APPLICATIONS

Supply Chain Management (SCM)

Supply Chain

  • It is a network of organizations and business processes.

  • It helps in procurement of materials, transformation of raw materials into intermediate and finished products and distributing finished products to customers.


Module 2 unit 6 introduction to commonly used systems and models

ENTERPRISE APPLICATIONS

Supply Chain Management (SCM) System

  • Provides close linkage and coordination of activities involved in buying, making, and moving a product.

  • Integrates supplier, manufacturer, distributor, and customer logistics time.

  • Reduces time, redundant effort, and inventory costs.


Module 2 unit 6 introduction to commonly used systems and models

ENTERPRISE APPLICATIONS

Supply Chain Management

Figure 2-15


Module 2 unit 6 introduction to commonly used systems and models

ENTERPRISE APPLICATIONS

How Information Systems Facilitate Supply Chain Management

  • Decide when, what to produce, store & move

  • Rapidly communicate orders

  • Track order status

  • Check inventory availability & monitor levels

  • Track shipments

  • Plan production based on actual demand

  • Rapidly communicate product design change

  • Provide product specifications

  • Share information about defect rates & returns


Module 2 unit 6 introduction to commonly used systems and models

ENTERPRISE APPLICATIONS

Customer Relationship Management (CRM) : Functions

  • Manages all ways used by firms to deal with existing and potential new customers

  • CRM is both a business and I.S. technology discipline.

  • Uses information system to coordinate entire business processes of a firm.


Module 2 unit 6 introduction to commonly used systems and models

ENTERPRISE APPLICATIONS

Customer Relationship Management (CRM) : Functions (contd.)

  • Provides end-to-end customer care : From receipt of order through product delivery.

  • Provides a unified view of customer across the company.

  • Consolidates customer data from multiple sources and provides analytical tools for answering questions, e.g. identification of best customers.


Module 2 unit 6 introduction to commonly used systems and models

Knowledge Management Systems

  • Creating knowledge

  • Discovering and codifying knowledge

  • Sharing knowledge

  • Distributing knowledge


Module 2 unit 6 introduction to commonly used systems and models

MODULE-2 : UNIT-6

INTRODUCTION TO COMMONLY USED SYSTEMS AND MODELS


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