Aula 2 07032013 sii-v1

Sistemas de Informação para Indústria© António Grilo 2013Departamento de Engenharia Mecânica e Industrial

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Class 2

Impact of Informations Systems.Typologies of IS.

Ano 2013

Sistemas de Informaçãopara a Indústria

António GriloProf. Auxiliar FCT-UNL


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DEFINING INFORMATION

What is an Information System? A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization. (Laudon, 2012)

Information systems are implemented within an organization for the purpose of improving the effectiveness and efficiency of that organization.

Capabilities of the information system and characteristics of the organization, its work systems, its people, and its development and implementation methodologies together determine the extent to which that purpose is achieved.


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DATA, INFORMATION, KNOWLEDGE

Data, Information and Knowledge have different meanings:

Data: Streams of raw facts representing events such as business transactions

Information: Clusters of facts that are meaningful and useful to human beings in the processes such as making decisions

Knowledge: Capability to transform information in something that is valuable to the person or organization.


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INFORMATION SYSTEMS AS A SYSTEM…Information systems have different functions:

Input: Captures raw data from organization or external environmentProcessing: Converts raw data into meaningful formOutput: Transfers processed information to people or activities that use itFeedback: Output returned to appropriate members of organization to help evaluate or correct input stage


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IMPACT OF INFORMATION SYSTEMS ON ORGANIZATIONS

There has been a widening Scope of Information Systems on organizations:


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There is a growing interdependence between a firm’s information systems and its business capabilities. Changes in strategy, rules, and business processes increasingly require changes in hardware, software, databases, and telecommunications. Often, what the organization would like to do depends on what its systems will permit it to do.


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Business firms invest heavily in information systems to achieve six strategic business objectives:

• Operational excellence

• New products, services, and business models

• Customer and supplier intimacy

• Improved decision making

• Competitive advantage

• Survival


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FLATENNING ORGANIZATIONS


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SEPARTING WORK FROM LOCATION


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REDESIGNING WORKFLOWS


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REDEFINING ORGANIZATIONAL BOUNDARIES


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INFORMATION SYSTEMS TYPOLOGIES


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TRANSACTION PROCESSING SYSTEMS

• Perform and record daily routine transactions necessary to conduct business, e.g. sales order entry, payroll, shipping

• Allow managers to monitor status of operations and relations with external environment

• Serve operational levels

• Serve predefined, structured goals and decision making


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MANAGEMENT INFORMATION SYSTEMS

• Serve middle management

• Provide reports on firm’s current performance, based on data from TPS• • Provide answers to routine questions with predefined procedure for

answering them

• Typically have little analytic capability


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DECISION SUPPORT SYSTEMS

• Serve middle management

• Support non-routine decision making, e.g. What is impact on production schedule if December sales doubled?

• Often use external information as well from TPS and MIS

• Model driven DSS, e.g. voyage-estimating systems

• Data driven DSS, e.g. marketing analysis systems


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DECISION SUPPORT SYSTEMS


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EXECUTIVE INFORMATION SYSTEMS


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BUSINESS APPLICATIONS

Many information systems transcend boundary between functional areas like sales, marketing, manufacturing, and research and development. Hence, group employees from different functional specialties are required to a complete piece of work.


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BUSINESS APPLICATIONS

Applications must not be islands of functionality and are indeed cross-functions.


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BUSINESS APPLICATIONS ARE BASED ON PROCESSES


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CLASSES OF BUSINESS APPLICATIONS

• Database Management Systems (DBMS)• Enterprise Resource Planning (ERP)• Customer Relationship Management (CRM)• Supply Chain Management (SCM)• Warehouse Management System (WMS)• Radio-Frequency Identification and Tags (RFID)• Electronic Document Management and Workflow (EDM-Wfl)• Content Management Systems (CMS)• Geospatial Information Systems (GIS)• Project Management Information Systems (PMIS)• Product Data Management Systems (PDMS)• Computer Integrated Manufacturing (CIM)


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ENTERPRISE RESOURCE PLANNINGEnterprise resource planning (ERP) systems integrate internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, etc. ERP systems automate this activity with an integrated software application. Their purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization.


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CUSTOMER RELATIONSHIP MANAGEMENTCustomer Relationship Management (CRM) is a widely implemented application for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support.


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CUSTOMER RELATIONSHIP MANAGEMENT


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SUPPLY CHAIN MANAGEMENTSupply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption (supply chain).


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SUPPLY CHAIN MANAGEMENT

Supply chain planning systems• Demand planning• Order planning• Advanced scheduling and manufacturing planning• Distribution planning• Transportation planning

Supply chain execution systemsManage flow of products through distribution centers and warehouses to ensure products delivered to right locations in most efficient manner• Order commitments• Final production• Replenishment• Distribution management• Reverse distribution


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SUPPLY CHAIN MANAGEMENT

Push-based model (Build-to-stock) - Production master schedules based on forecasts or best guesses of product demand; products “pushed” to customers

Pull-based model (Demand-driven, build-to-order) - With IT, manufacturers can use only order demand information to drive schedules and procurement of components or raw materials

Sequential supply chains - Information, materials move sequentially

Concurrent supply chains - With IT, information moves in many directions simultaneously

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