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Management I nformationSystems - Class Note # 2
Prof. Yuan-Shyi Peter Chiu
Feb. 2012
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Chap 2
Information Systems in the
Enterprise
2.1 Key System Appl icat ion s in the Organization
2.2 Systems from a Functional Perspective
2.3 Integrating Functions and Business
Processes2.4 International Information Systems
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3Fig 2.1: Types of Info rmation Systems
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Information systems that suppo r t the
mon i tor ing , contro l l ing , decis ionmaking, and adm inis trat ive act iv i t iesof middle managers.
Information systems that suppor t thelong-range plann ing act iv i t iesof
senior management .2 / 2
Strategic -level sys tems
Management-level systems
Dif ferent kinds o f sys tems
2.1
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Major Types o f Systems
Executive Support Systems (ESS)
Decision Support Systems (DSS)
Management Information Systems (MIS) Knowledge Work Systems (KWS)
Office Automation Systems (OAS)
Transaction Processing Systems (TPS)
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Computerized systems that perform and
record thedai ly rout ine transact ions
necessary to conduct the business;
they serve the organizationsoperat ional level.
TPS Transaction Processing
Systems
Six Major Types o f Systems
2.1
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TYPICAL TPSAPPLICATIONS
Sales & Market ing Systems
MAJOR FUNCTIONS OF SYSTEMS:Sales Management ;
Market Research ;
Promot ion ; Pr ic ing ; New Products
MAJOR APPLICATION SYSTEMS:Sales Order Info System ;Market Research Sys tem ;
Pric ing System
See Fig. 2-4 ( p.43 )
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TPSTransact ion Processing Systems
Manufactur ing
Plant schedulingMaterial movement control
Machine control
FinanceSecurities trading
Cash management
2.1
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Account ing
PayrollAccount payable
Account receivable
Human Resources
Compensation
Training & development
Employee record keeping
TPSTransact ion Processing Systems
2.1
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Payroll TPS
2.1
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Information systems that aidknowledge workersin the creat ion
and integration o f new know ledgein
the organization .
KWS knowledge work systems
Six Major Types o f Systems
2.1
Example: Engineer ing work stat ion
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OAS office automation systems
Computer systems, such as word
processing, electronic mail systems,
and scheduling systems, that are
designed to inc rease the product iv i ty
of data workersin the office .
Six Major Types o f Systems
2.1
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Information systems at the management
levelof organization that serve the functions
of planning, contro l l ing , and decis ion
mak ingby providing routine summary andexcept ionreports.
MIS Management Information
Systems
Six Major Types o f Systems
2.1
Example: Annual budgeting
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Structured and semi-structured decisions
Report control oriented
Past and present data
Internal orientation
MIS
2.1
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TPSDATA FOR MISAPPLICATIONS
Fig 2-5: How management informat ion systemsob tain their data
the from the organizations TPS.
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Information systems at the
management levelof an organization
that combine data and soph ist icated
analyt ical m odelsto support non-
routinedecision making.
DSS Decision Support Systems
Six Major Types o f Systems
2.1
Example:Contract cos t analys is
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20Fig 2-7: Voyage estimating decision-support sys tem .
Decision Support System (DSS)
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Sales and market ingSales managementSales region analysis
Manufactur ingInventory controlProduction scheduling
MIS & DSS
2.1
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FinanceAnnual budgeting
Cost analysis
Account ingCapital investment analysis
Pricing / profitability analysis
Human ResourceRelocation analysis
Contract cost analysis
MIS & DSS
2.1
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Information system at the
organizations strateg ic leveldesigned
to address unstructu red decis ion
makingthrough advanced graphics
and communicat ions .
ESSExecutive SupportSystems
Six Major Types o f Systems
2.1
Examp le: 5-year operat ing plan
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Top level management
Designed to the individual
Ties CEO to all levels
Very expensive to keep up
Extensive support staff
ESS
2.1
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25Fig 2-8: Model of a typic al execut ive support sys tem .
Executive Support System (ESS)
Figure 2-8
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Sales and marketing Sales trendforecasting
Manufacturing Operating plan
Finance Budget forecasting
Accounting Profit planning
Human Resource Personnel planning
ESS
2.1
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Character ist ics o f Different Typesof Informat ion Systems
Information inputs
Processing
Information outputs
Users
See Table 2-1 ( p.41 )
2.1
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28Fig 2-9: Interrelationships among systems
2.2 Systems from a Funct ional Perspect ive
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SALES & MARKETING SYSTEMS
MANUFACTURING & PRODUCTION
SYSTEMS
FINANCE & ACCOUNTING SYSTEMS
HUMAN RESOURCES SYSTEMS
2.2 Systems from a Funct ional Perspect ive
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2.2 Systems from a Funct ional Perspect ive
Major functions of systems:
Sales management, market research, promotion,pricing, new products
Major application systems: Sales order info system, market research system,
pricing system
Sales and MarketingSystems
S l d M k ti S t
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Sales and MarketingSystems
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2.2 Systems from a Funct ional Perspect ive
Major functions of systems:
Schedul ing, purchasing, shipping, receiving,
engineer ing, operations
Major application systems:
Mater ials resource planning systems, purchaseorder control systems, engineer ing systems,
quali ty control systems
Manu factur ing and Produc t ionSystems
Manu factur ing and Produc t ion Systems
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Manu factur ing and Produc t ionSystems
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2.2 Systems from a Funct ional Perspect ive
Major functions of systems:
Budgeting, general ledger, bil l ing, costaccounting
Major application systems:
General ledger, accounts receivable, accounts
payable, budgeting, funds management systems
Financ ing and A ccount ingSystems
Financ ing and A ccount ing Systems
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Financ ing and A ccount ingSystems
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2.2 Systems from a Funct ional Perspect ive
Major functions of systems:
Personnel records, benefi ts, compensation, laborrelations, training
Major application systems:
Payroll , employee records, benefi t systems,
career path systems, personnel training systems
Human ResourceSystems
Human Resource Systems
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Human ResourceSystems
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Manufactur ing and production:Assembling
product, checking quali ty, producing bi l ls of
materials
Sales and marketing:I denti fying customers,
creating customer awareness, sell ing
Examples o f Business Processes
2.3 Business Processes and Information Systems
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Cross-Funct ional Bus iness Processes
2.3 Business Processes and Information Systems
Fig. 2-12 The Order Fulfillment Process
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I nformation systems help organizations
Achieve great eff iciencies by automatingparts of processes
Rethink and streamline processes
2.3 Business Processes and Information Systems
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Customer Relationship Management (CRM)
Manages all ways used by firms to deal withexisting and potential new customers
Uses information system to coordinate enti re businessprocesses of a f irm
Provides end-to-end customer care
Provides a unif ied view of customer across the company
Consolidates customer data from multiple sources andprovides analytical tools for answer ing questions
2.3 Business Processes and Information Systems
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2.3 Business Processes and Information Systems
Customer Relationship Management (CRM)
Figure 2-13
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2.3 Business Processes and Information Systems
Supply Chain Management (SCM)
Close linkage and coordinationof activities involved inbuying, making, and moving a product
Integrates supplier, manufacturer, distributor, and
customer, logistics, timeReduces time, redundant effort, and inventory costs
Network of organizations and business processes
Helps in procurement of materials, transformation of
raw materials into finished products
Helps in distribution of the finished products tocustomers
Includes reverse logistics- returned items flow in the
reverse direction from the buyer back to the seller
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2.3 Business Processes and Information Systems
Supply Chain Management
Figure 2-14
2 3
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Decide when, what to produce, store, moveRapidly communicate orders
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
2.3 How Inform ation Sys tems Faci l i tateSupp ly Chain Management
2 3 C ll b ti C
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2.3 Collaborative Commerce
Figure 2-15
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2.3 Enterpr ise System
Figure 2-17
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Figure 2-18
2.4 Global System Configuration
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HOMEWORK Chap.2
# 1 # 2 # 3# 7 # 8 # 9
# 10: What is CRM?# 11: What is SCM?
# 12
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