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Information systems for the firm

Information systems for the firm. Main classification (Source : Laudon & Laudon, Prentice- Hall, 2000). Four levels of applications of I.S. in the firm :. Strategy level : I.S. for top executives Management level : I.S. for middle management “Knowledge” level : I.S. for office employees

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Information systems for the firm

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  1. Information systemsfor the firm Main classification (Source : Laudon & Laudon, Prentice- Hall, 2000) AC 2002

  2. Four levels of applications of I.S. in the firm : • Strategy level : I.S. for top executives • Management level : I.S. for middle management • “Knowledge” level : I.S. for office employees • Operations level : I.S. for production, sales, marketing, accounting, and H.R. functions AC 2002

  3. Operations level : I.S. to treat day to day transactions AC 2002

  4. “Knowledge” level : two types of information system • Systems for office basic work : • Word processing • Document and image creation • Electronic calendar (Outlook…) • Systems for intellectual work : • Engineering work stations and softwares • Management work stations and softwares AC 2002

  5. Management level : two types of information system • Management information systems : • Sales management • Stock control • Annual budgeting • Capital investment control • Carriers evolution management • Systems to assist middle mgt. decision process : • Sales analysis by region • Production planning • Costs analysis and costs control • Price analysis and profitability analysis AC 2002

  6. Strategy level : I.S. for top executives • Five year sales forecast • Five year operation planning • Five year budget forecast • Profitability forecast • Human resources planning AC 2002

  7. Features and users of I.S. AC 2002

  8. Evolution of Information Systems • Information Systems entered the firms in the sixties : • They were first concerned with accounting, and with production control • Later, in the eighties and nineties, they entered all the other functions of the firm (from bottom up) : • I.S. can increase tremendously the firm productivity • Information is now considered a “product” of strategic value, whereas a generation ago it was only “red tape” AC 2002

  9. An example : • When it was clearly realized that gaining a new client was about 5 times more expensive than keeping an existing one, and that I.S. provided new means to analyze and retain clients, C.R.M. (Client Relationship Management) was born. • “The most efficient selling action is to treat as well as possible your existing clients” • In order to do that you have to know them very well, and customize your relationship with them. AC 2002

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