Está en la página 1de 25

AQU Information Systems Fundamentals Spring 2012

c h a p t e r

2
INFORMATION SYSTEMS IN THE ENTERPRISE
2.1
2002 by Prentice Hall & 2012 Yacoub Sabatin

Reading Notes for Chapter 2 in the textbook 1/2


The chapter introduces six types of information systems. Figure 2.1 and table 2.1 give an overall picture of organizations and how different types of information systems serve them. Figure 2.2 depicts different types of information systems and how they relate to one another (Figure 2.9 as well). Section 2.2 examines information systems from a functional view of an organization: Sales and marketing systems, manufacturing and production systems, finance and accounting systems, and human resources systems. Read this section carefully to develop an understanding of how information systems serve different functions of an organization. >>

2.2

2002 by Prentice Hall & 2012 Yacoub Sabatin

AQU Information Systems Fundamentals Spring 2012

Reading Notes for Chapter 2 in the textbook 2/2


Read section 2.3 carefully to understand integration of functions and business processes. Figure 2.12 illustrates a cross-functional business process. Pay also attention to customer relationship management and enterprise systems that are current trends in business. Contrast Figure 2.15 and 2.16. Extended enterprises and industrial networks are also recent trends and would not be possible without the support of information technology. *

2.3

2002 by Prentice Hall & 2012 Yacoub Sabatin

LEARNING OBJECTIVES
Analyze Roles of 6 Types of Information Systems Describe Types of Information Systems Analyze Relationships between Business Processes >>

2.4

2002 by Prentice Hall & 2012 Yacoub Sabatin

AQU Information Systems Fundamentals Spring 2012

LEARNING OBJECTIVES
Explain How Systems & Networks Create New Efficiencies Evaluate Benefits & Limitations of Systems & Networks *

2.5

2002 by Prentice Hall & 2012 Yacoub Sabatin

MANAGEMENT CHALLENGES
Key System Applications Functional Perspective of Systems Integrating Functions & Processes *

2.6

2002 by Prentice Hall & 2012 Yacoub Sabatin

AQU Information Systems Fundamentals Spring 2012

MANAGEMENT CHALLENGES
1. INTEGRATION: Different Systems Serve Variety of Functions,

Connecting Organizational Levels Difficult, Costly


2. ENLARGING SCOPE OF MANAGEMENT THINKING: Huge System Investments, Long Development Time must be guided by common objectives

2.7

2002 by Prentice Hall & 2012 Yacoub Sabatin

So
Organizational Hierarchy Organizational Levels Information Systems >>
2.8
2002 by Prentice Hall & 2012 Yacoub Sabatin

AQU Information Systems Fundamentals Spring 2012

TYPES OF INFORMATION SYSTEMS


KIND OF SYSTEM
STRATEGIC LEVEL

GROUPS SERVED
SENIOR MANAGERS

MANAGEMENT LEVEL

MIDDLE MANAGERS

KNOWLEDGE LEVEL

KNOWLEDGE & DATA WORKERS

OPERATIONAL LEVEL
SALES & MANUFACTURING MARKETING & PROD FINANCE ACCOUNTING

OPERATIONAL MANAGERS
HUMAN RESOURCES

2.9

2002 by Prentice Hall & 2012 Yacoub Sabatin

Four General Kinds of IS in Terms of Organizational Levels


Operational-level systems Operational support operational managers by monitoring the day-todays elementary activities and transactions of the organization. e.g. TPS. Knowledge-level systems Knowledge support knowledge and data workers in designing products, distributing information, and coping with paperwork in an organization. e.g. KWS, OAS Management-level systems Management support the monitoring, controlling, decision-making, and administrative activities of middle managers. e.g. MIS, DSS Strategic-level systems Strategic support long-range planning activities of senior management. e.g. ESS
2.10
2002 by Prentice Hall & 2012 Yacoub Sabatin

AQU Information Systems Fundamentals Spring 2012

MAJOR TYPES OF SYSTEMS


(with respect

to support provided)

EXECUTIVE SUPPORT SYSTEMS (ESS) DECISION SUPPORT SYSTEMS (DSS) MANAGEMENT INFORMATION SYSTEMS (MIS) KNOWLEDGE WORK SYSTEMS (KWS) OFFICE AUTOMATION SYSTEMS (OAS) TRANSACTION PROCESSING SYSTEMS (TPS) *

2.11

2002 by Prentice Hall & 2012 Yacoub Sabatin

INTERRELATIONSHIPS AMONG SYSTEMS

ESS

MIS

DSS

KWS OAS
2.12

TPS
2002 by Prentice Hall & 2012 Yacoub Sabatin

AQU Information Systems Fundamentals Spring 2012

TYPICAL TPS APPLICATIONS 1. Sales & 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 >>
2.13
2002 by Prentice Hall & 2012 Yacoub Sabatin

TYPICAL TPS APPLICATIONS


2. Manufacturing & 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 2.14 >> 2002 by Prentice Hall & 2012 Yacoub Sabatin

AQU Information Systems Fundamentals Spring 2012

TYPICAL TPS APPLICATIONS


3. Finance & Accounting Systems

MAJOR FUNCTIONS OF SYSTEMS: Budgeting, general ledger, billing, cost accounting MAJOR APPLICATION SYSTEMS: General ledger, accounts receivable, accounts payable, budgeting, funds management systems >>
2.15
2002 by Prentice Hall & 2012 Yacoub Sabatin

TYPICAL TPS APPLICATIONS


4. Human Resources 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, example: 2.16 >> 2002 by Prentice Hall & 2012 Yacoub Sabatin

AQU Information Systems Fundamentals Spring 2012

A Symbolic Representation for a payroll TPS


Employee data (various departments) To general ledger: wages and salaries

Payroll System

Management Reports Government documents

Payroll master file

Employee checks On-line queries

2.17

2002 by Prentice Hall & 2012 Yacoub Sabatin

TYPICAL TPS APPLICATIONS 5. Other Types (e.g., University)

MAJOR FUNCTIONS OF SYSTEMS: Admissions, grade records, course records, alumni MAJOR APPLICATION SYSTEMS: Registration system, student transcript system, curriculum class control system, alumni benefactor system 2.18 * 2002 by Prentice Hall & 2012 Yacoub Sabatin

AQU Information Systems Fundamentals Spring 2012

OFFICE AUTOMATION SYSTEMS (OAS) All Levels Toward A Paperless Office Redesign Of Work Flow Integrated Software Ergonomic Design Bright, Cheerful Work Space Example: Presentation Graphics *
2.19
2002 by Prentice Hall & 2012 Yacoub Sabatin

KNOWLEDGE WORK SYSTEMS (KWS) Knowledge Level Inputs: Design Specs Processing: Modelling Outputs: Designs, Graphics Users: Technical Staff Example: Engineering Work Station *
2.20
2002 by Prentice Hall & 2012 Yacoub Sabatin

AQU Information Systems Fundamentals Spring 2012

MANAGEMENT INFORMATION SYSTEMS (MIS) Management Level Inputs: High Volume Data Processing: Simple Models Outputs: Summary Reports Users: Middle Managers Example: Annual Budgeting >>
2.21
2002 by Prentice Hall & 2012 Yacoub Sabatin

MANAGEMENT INFORMATION SYSTEMS (MIS) Structured & semi-structured semidecisions Report control oriented Past & present data Internal orientation Lengthy design process >>
2.22
2002 by Prentice Hall & 2012 Yacoub Sabatin

AQU Information Systems Fundamentals Spring 2012

TPS DATA FOR MIS APPLICATIONS


TPS
Order Processing System ORDER FILE Materials Resource Planning System PRODUCTION MASTER FILE General Ledger System ACCOUNTING FILES UNIT PRODUCT COST PRODUCT CHANGE DATA EXPENSE DATA MIS FILES MANAGERS SALES DATA

MIS

MIS

REPORTS

2.23

2002 by Prentice Hall & 2012 Yacoub Sabatin

DECISION SUPPORT SYSTEMS (DSS) Management Level Inputs: Low Volume Data Processing: Interactive Outputs: Decision Analysis Users: Professionals, Staff Example: Contract Cost Analysis >>
2.24
2002 by Prentice Hall & 2012 Yacoub Sabatin

AQU Information Systems Fundamentals Spring 2012

CHARACTERISTICS of DECISION SUPPORT SYSTEMS (DSS)


1. DSS offer users flexibility, adaptability, and a quick response. 2. DSS operate with little or no assistance from professional programmers. 3. DSS provide support for decisions and problems whose solutions cannot be specified in advance. 4. DSS use sophisticated data analysis and modelling tools. >>
2.25
2002 by Prentice Hall & 2012 Yacoub Sabatin

EXECUTIVE SUPPORT SYSTEMS (ESS) Strategic Level Inputs: Aggregate Data Processing: Interactive Outputs: Projections Users: Senior Managers Example: 5 Year Operating Plan >>
2.26
2002 by Prentice Hall & 2012 Yacoub Sabatin

AQU Information Systems Fundamentals Spring 2012

Model of a Typical Executive Support System


ESS workstation
Menus Graphics Communications Local processing

ESS workstation

Internal Data TPS/MIS Data Financial Data Office Systems Modeling/ analysis

External Data Dow Jones Gallup Poll Standard & Poor's

ESS workstation

Menus Graphics Communications Local processing

Menus Graphics Communications Local processing

2.27

>>

2002 by Prentice Hall & 2012 Yacoub Sabatin

CHARACTERISTICS OF EXECUTIVE SUPPORT SYSTEMS (ESS)

Top level management Designed to the individual Ties CEO to all levels Very expensive to keep up Extensive support staff *
2002 by Prentice Hall & 2012 Yacoub Sabatin

2.28

AQU Information Systems Fundamentals Spring 2012

Summary
TYPES OF SYSTEM S ESS Strate gic Le ve l Sys te ms Profit 5-ye ar 5-ye ar 5-ye ar ope rating budge t s ale s tre nd planning plan fore cas ting fore cas ting M anpowe r planning

M IS DSS

Sale s manage me nt Sale s re gion analys is

Inve ntory Control Production Sche duling

M anage me nt-Le ve l Sys te ms Capital Re location Annual Inve s tme nt analys is analys is budge ting Cos t analys is Pricing/profitability Contract cos t analys is analys is

KWS OAS

Engine e ring work s tations Word proce s s ing

Knowle dge -Le ve l Sys te ms Graphics work s tations Docume nt Imaging

M anage rial work s tations Ele ctronic Cale ndars

M achine control TPS Orde r Track ing Plant s che duling

Ope rational Le ve l Sys te ms Se curitie s Payroll trading Accounts payable

Compe ns ation Training & de ve lopme nt

Orde r proce s s ing M ate rial move me nt Cas h manage me nt control Sale s and mark e ting M anufacturing Finance

Accounts re ce ivable Employe e re cord k e e ping

Accounting

2.29

Human Re s ource s

2002 by Prentice Hall & 2012 Yacoub Sabatin

INTERRELATIONSHIPS AMONG SYSTEMS

ESS

MIS

DSS

KWS OAS
2.30

TPS
2002 by Prentice Hall & 2012 Yacoub Sabatin

AQU Information Systems Fundamentals Spring 2012

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE


1. Sales & Marketing Systems 2. Manufacturing & Production Systems 3. Finance & Accounting Systems 4. Human Resources Systems **

2.31

2002 by Prentice Hall & 2012 Yacoub Sabatin

1. SALES & MARKETING INFORMATION SYSTEM


SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

ORDER PROCESSING ENTER, PROCESS, TRACK ORDERS OPERATIONAL

MARKET ANALYSIS

IDENTIFY CUSTOMERS & MARKETS KNOWLEDGE

PRICING ANALYSIS

DETERMINE PRICES

MANAGEMENT

SALES TRENDS

PREPARE 5-YEAR FORECASTS

STRATEGIC

2.32

2002 by Prentice Hall & 2012 Yacoub Sabatin

AQU Information Systems Fundamentals Spring 2012

2. MANUFACTURING & PRODUCTION INFORMATION SYSTEM


SYSTEM MACHINE CONTROL DESCRIPTION CONTROL ACTIONS OF EQUIPMENT ORGANIZATIONAL LEVEL OPERATIONAL

COMPUTER-AIDED-DESIGN DESIGN NEW PRODUCTS

KNOWLEDGE

PRODUCTION PLANNING

DECIDE NUMBER, SCHEDULE OF PRODUCTS MANAGEMENT

FACILITIES LOCATION

DECIDE WHERE TO LOCATE FACILITIES

STRATEGIC

2.33

2002 by Prentice Hall & 2012 Yacoub Sabatin

3. FINANCE & ACCOUNTING INFORMATION SYSTEM


SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL OPERATIONAL

ACCOUNTS RECEIVABLE TRACK MONEY OWED TO FIRM

PORTFOLIO ANALYSIS

DESIGN FIRM'S INVESTMENTS

KNOWLEDGE

BUDGETING

PREPARE SHORT TERM BUDGETS MANAGEMENT

PROFIT PLANNING

PLAN LONG-TERM PROFITS

STRATEGIC

2.34

2002 by Prentice Hall & 2012 Yacoub Sabatin

AQU Information Systems Fundamentals Spring 2012

4. HUMAN RESOURCES INFORMATION SYSTEM


SYSTEM TRAINING & DEVELOPMENT DESCRIPTION TRACK TRAINING, SKILLS, APPRAISALS ORGANIZATIONAL LEVEL OPERATIONAL

CAREER PATHING

DESIGN EMPLOYEE CAREER PATHS

KNOWLEDGE

COMPENSATION ANALYSIS

MONITOR WAGES, SALARIES, BENEFITS

MANAGEMENT

HUMAN RESOURCES PLANNING PLAN LONG-TERM LABOR FORCE NEEDS

STRATEGIC

*
2.35
2002 by Prentice Hall & 2012 Yacoub Sabatin

Recall
MAJOR BUSINESS FUNCTIONS
SALES & MARKETING MANUFACTURING FINANCE ACCOUNTING HUMAN RESOURCES >>

2.36

2002 by Prentice Hall & 2012 Yacoub Sabatin

AQU Information Systems Fundamentals Spring 2012

EXAMPLES OF BUSINESS PROCESSES (FUNCTIONS) 1/2 SALES & MARKETING: Identifying customers, creating customer awareness, selling MANUFACTURING & PRODUCTION: Assembling product, checking quality, producing bills of materials >>
2.37
2002 by Prentice Hall & 2012 Yacoub Sabatin

EXAMPLES OF BUSINESS PROCESSES (FUNCTIONS) 2/2 FINANCE & ACCOUNTING: Paying creditors, creating financial statements, managing cash accounts HUMAN RESOURCES: Hiring employees, evaluating performance, enrolling employees in benefits plans Ex. >>
2.38
2002 by Prentice Hall & 2012 Yacoub Sabatin

AQU Information Systems Fundamentals Spring 2012

The Order Fulfillment Process (F 2.12) 12)


Generate Order Submit Order

Sales

Accounting

Check Credit

Approve Credit

Generate Invoice

Manufact uring & P roduct ion

Assemble Product

Ship Product

2.39

2002 by Prentice Hall & 2012 Yacoub Sabatin

Customer Relationship Management


Business and technology discipline to coordinate the business processes for dealing with customers.
Sales T elephone sales W eb sales Field sales Ret ail sales Market ing Cam paign data Cont ent Dat a analysis Cust om er Service Call cent er dat a W eb self service dat a Field service dat a W ireless dat a

Unified view of customers Consistent message to customers End-to-end customer care Long-term customer relationships Identification of best customers

2.40

*
2002 by Prentice Hall & 2012 Yacoub Sabatin

AQU Information Systems Fundamentals Spring 2012

SUPPLYSUPPLY-CHAIN MANAGEMENT (SCM)


CUSTOMERS
ORDER PROCESSING PLANNING & FORECASTING

SUPPLIERS

PROCUREMENT ACCOUNTING

INTRANET
PRODUCTION

LOGISTICS SERVICES

SHIPPING

INVENTORY

DISTRIBUTORS

2.41

>>
2002 by Prentice Hall & 2012 Yacoub Sabatin

Supply Chain Management


Integration of supplier, distributor, and customer logistics requirements into one cohesive process. process. Network of facilities for procuring materials, transforming raw materials into finished products,' and distributing finished produce to customers. customers.
Capacity, inventory level, delivery schedule, payment terms Supplier Manufacturer Distributor Retail Outlet Customer

Orders, return requests, repair and service requests, payments

2.42

2002 by Prentice Hall & 2012 Yacoub Sabatin

AQU Information Systems Fundamentals Spring 2012

HOW INFORMATION SYSTEMS FACILITATES 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 CHANGES PROVIDE PRODUCT SPECIFICATIONS SHARE INFORMATION ABOUT DEFECT RATES, RETURNS...

2.43

2002 by Prentice Hall & 2012 Yacoub Sabatin

TRADITIONAL VIEW OF SYSTEMS


WITHIN THE BUSINESS: There are functions, each having its uses of information systems to do own business processes OUTSIDE THE ORGANIZATIONS BOUNDARIES: There are customers and vendors
FUNCTIONS TEND TO WORK IN ISOLATION

i. e. >>
2.44
2002 by Prentice Hall & 2012 Yacoub Sabatin

AQU Information Systems Fundamentals Spring 2012

TRADITIONAL VIEW OF SYSTEMS


Business Functions Manufacturing Business Processes Manufacturing Systems Accounting Business Processes Accounting Systems Finance Business Processes Finance Systems Marketing and Sales Business Processes Marketing and Sales Systems Human Resources Business Processes
Human Resources Systems

Vendors

2.45

Enterprise systems can integrate the key business processes of an entire firm into a single software system that allows info to flow seamlessly throughout the org. These systems may include transactions with customers and vendors.

2.46

Organizational Boundaries

Organizational Boundaries

Information Systems

Customers

In some organizations today, separate systems built over along period of time to support discrete business processes (no real integration) These systems rarely include transactions with customers and vendors. BUT >>
2002 by Prentice Hall & 2012 Yacoub Sabatin

ENTERPRISE SYSTEM

Manufacturing

Accounting

Business Processes Vendors EnterpriseEnterprise-wide Business Processes

Customers

Human Resources Sales & Marketing

Finance

2002 by Prentice Hall & 2012 Yacoub Sabatin

AQU Information Systems Fundamentals Spring 2012

BENEFITS OF ENTERPRISE SYSTEMS


FIRM STRUCTURE & ORGANIZATION: One organization MANAGEMENT: Firmwide knowledge-based management knowledgeprocesses TECHNOLOGY: Unified platform BUSINESS: More efficient operations & customercustomerdriven business processes *
2.47
2002 by Prentice Hall & 2012 Yacoub Sabatin

CHALLENGES OF ENTERPRISE SYSTEMS


Daunting Implementation High Up Front Costs & Future Benefits Inflexibility Hard To Realize Strategic Value *

2.48

2002 by Prentice Hall & 2012 Yacoub Sabatin

AQU Information Systems Fundamentals Spring 2012

Extended Enterprises
Extended Enterprises: Networks linking systems of multiple firms in an industry. Also called extended enterprises. Example: INDUSTRIAL NETWORKS link firms into industry-wide system
Vertical industrial networks: Networks for integrating the operations of a firm with its suppliers. Horizontal industrial networks: Networks for linking firms across an entire industry including competitors.
2.49
2002 by Prentice Hall & 2012 Yacoub Sabatin

c h a p t e r

2
INFORMATION SYSTEMS IN THE ENTERPRISE
2.50
2002 by Prentice Hall & 2012 Yacoub Sabatin