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MIS 2000 Chapter 2: How Businesses Use Information Systems. Outline. Typologies of Information Systems (Department; User) Business Process Transaction Processing Systems Management Information Systems (Reporting Systems) Decision Support Systems Executive Information (Support) Systems

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MIS 2000 Chapter 2: How Businesses Use Information Systems


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slide1

MIS 2000

Chapter 2:

How Businesses Use

Information Systems

outline
Outline
  • Typologies of Information Systems (Department; User)
  • Business Process
  • Transaction Processing Systems
  • Management Information Systems (Reporting Systems)
  • Decision Support Systems
  • Executive Information (Support) Systems
  • Knowledge Management Systems
  • Systems Crossing Departments and User Groups
  • Enterprise Resource Planning Systems
  • Customer Support Systems
  • Supply Chain Systems

9.200 Information Systems for Management

types of ises organizational function served
Types of ISes - Organizational Function Served
  • Purchasing Systems (“back-end” of organizations)
  • Production Systems (Manufacturing, Services) – involved in core

business operations . Cases: Kia’s Quality Management System

  • Human Resources, Accounting, Inventory Systems – Market Star’s Travel Expense Systems
  • Sales & Marketing Systems (“front-end” of organizations)

Supply

Back-End

Delivery

Front End

ORGANIZATION

9.200 Information Systems for Management

types of ises user of information constituency
Types of ISes – User of Information (Constituency)
  • Systems have different data processing capabilities.
  • Different “constituency types” can be modules in the same system.

Examples of TPS, MIS, DSS:

- Market Star’s Travel

Expense Sys.

- Kia’s Quality Mgt. Sys,

Executive

Management

Strategic planning & control

Mid-level

Management)

Mid-range performance control & planning

Supervisory

Management

Everyday operations control

  • Also important:
  • Knowledge Management Systems – User: Professionals (p. 53 in 4th ed.)
  • * The MIS area of study today refers to all these systems, not just MIS/Reporting Systems

9.200 Information Systems for Management

relationship between two typologies
Relationship Between Two Typologies
  • The relationship between functional and constituency
  • typology is also shown in Tables 2-2 though 2-5

9.200 Information Systems for Management

slide6

Understanding Organizations as Processes

  • Process refers to connected tasks from a start to an end point. Tasks can be performed in different organizational functions.
  • Process must deliver value for customer - external customer (consumer), or internal customer (functions, another process)
  • Examples: Customer support process; Order Fulfillment Process

Order

Fulfillment

Process

9.200 Information Systems for Management

IS in Organizations

6

9.200 Information Systems for Management

transaction processing systems tps
Transaction Processing Systems (TPS)
  • Serves operational level, Supervisory Mgt.
  • Records daily, routine activities
  • Example: sales order entry, hotel room reservation, payroll, ticketing systems

9.200 Information Systems for Management

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

9.200 Information Systems for Management

decision support systems dss
Decision Support Systems (DSS)
  • Middle and higher level management
  • Semi-structured & unstructured decision-making
  • Use external as well as internal data
  • Process data through analytical models with some decision rules (e.g., appropriate expenses model, maximize/minimize, optimization) – model-driven system
  • Another kind of DSS uses lots of data and special data mining techniques – data-driven system

9.200 Information Systems for Management

executive information systems eis
Executive Information Systems (EIS)
  • Also called Executive Support Systems
  • Serve strategic level of the organization
  • Support non-routine decision-making
  • Use graphics software to create visual information display of key summary information
  • Use data from sources within and outside organizations
  • Have drill-down capability to reveal what is behind summary information

9.200 Information Systems for Management

knowledge management systems
Knowledge Management Systems
  • Help knowledge workers (e.g., doctors, engineers, “degreed” people)
  • Help manage knowledge
  • Examples: Expert System, Computer Aided Design Systems for architects, Knowledge Bases (e.g., Lexis)

9.200 Information Systems for Management

systems crossing departments and user groups customer relationship management system
Systems Crossing Departments and User Groups – Customer Relationship Management System
  • Coordination of all processes that involve customers (marketing, sales, service)
  • Maximizing value to customer (key data entity)
  • Providing value for customer
  • Combining data from multiple sources

9.200 Information Systems for Management

supply chain management systems
Supply Chain Management Systems
  • Coordinating all activities in the supply chain
    • Purchase raw materials, manufacture product, inventory, logistics (distribution)
  • Involving external suppliers (key data) and customers
  • Minimizing costs, inventory, and cycle time
  • Use Internet or some company private computer networks
  • (NOTE: Disregard discussion on pp. 51-2)

9.200 Information Systems for Management

enterprise resource planning systems
Enterprise Resource Planning Systems
  • Centralize data management – biz entities (customer, supplier, employee…) defined same for entire enterprise => integrated picture of business
  • Can support all departments (products: SAP, Oracle, PeopleSoft)
  • TPS, MIS/RS and DSS capabilities (via Data Warehouse and special reporting tools)
  • ERP software can be used for Supply Chain Systems and CRM systems

9.200 Information Systems for Management