INFORMATION SYSTEMS IN ORGANIZATIONS
WHAT IS INFORMATION SYSTEM ( IS)?
•BUSINESS APPLICATION OF THE COMPUTER.
•PROCESSES DATA GENERATED BY BUSINESS OPERATIONS.
EXAMPLES:
TRANSACTION PROCESSING SYSTEM ( TPS ), OFFICE SYSTEMS, DATABASE MANAGEMENT SYSTEMS ( DMS)
IMPORTANCE OF INFORMATION SYSTEMS
•REORGANIZEBUSINESS.
•DECISION MAKING.
•UP TO DATEINFORMATION.
•FACILITATES PLANNING.
•EASY RECORD KEEPING.
NESTLE
•WORLDS LARGEST MULTINATIONAL FOOD COMPANY.
•FOUNDED IN SWITZERLAND IN 1866.
•HENRI NESTLE
•470 FACTORIES AROUND THE WORLD.
NESTLESALES & MARKETING
•ORDER TRACKING/PROCESSING
•SALES MANAGEMENT
•SALES REGION ANALYSIS
•SALES TREND FORECASTING
NESTLESALES & MARKETING
System Description (Example)
Organizational Level
Order Processing/ Tracking
Enter, Process, and Track Orders
Operational (TPS)
Region Analysis (Market)
Identify Customers & Market
Knowledge & Data Workers (DSS)
Pricing Analysis Determine Prices Management (MIS)
Sales Trend Prepare Forecast Strategic (ESS)
NESTLEMANUFACTURING
•MATERIAL MOVEMENT
•INVENTORY CONTROL
•PRODUCTION SCHEDULING
•OPERATING PLAN
NESTLEMANUFACTURING
System Description Organizational Level
Material Movement Record Inflow & Outflow of material, Daily reports
Operational (TPS)
Inventory Control Supervision of Supply & Storage, Monthly reports
Knowledge & Data Workers (MIS)
Production Planning Decide number & Schedule of products
Management (DSS)
Operating Plan Decide where to locate facility, Prepare 5 year plan
Strategic Management (ESS)
NESTLEACCOUNTING
•PROFIT PLANNING
•INVESTMENT ANALYSIS
•PROFITABILITY ANALYSIS
•PAYROLL,RECEIVABLES,PAYABLES
NESTLEACCOUNTING
System Description Organizational Level
Profit Planning The development of your operating plan for the coming period
Executive
Investment Analysis Examination and assessment of economic and market trend
Middle
Profitability Analysis Comparing the Income and Expenses
Middle
Payroll, Receivables and Payables
Day to day Business activities.
Functional (Low)
NESTLEFINANCE
EXECUTIVE LEVEL:
BUDGET FORECASTING
•USED IN CUSTOMER DEMAND PLANNING
•REFERRED AS SUPPLE CHAIN FORECASTING
•EMBRACES STATISTICAL FORECASTING
•EMBRACES CONSENSUS PROCESS
NESTLEFINANCE
MIDDLE LEVEL:
COST ANALYSIS
•BUSINESS DECISIONS ARE ANALYZED
• THE BENEFITS OF A GIVEN SITUATION OR BUSINESS RELATED ACTION ARE SUMMED AND THEN THE COSTS ASSOCIATED WITH TAKING THAT ACTION ARE SUBTRACTED
NESTLEFINANCE
FUNCTIONAL LEVEL:
CASH MANAGEMENT
•INFLOW AND OUTFLOW OF CASH.
SECURITIES TRADING
• TRANSACTIONS OF COMPANIES PROPERTIES SUCH AS DEBTS SECURITIES(BANKNOTES, BONDS) AND EQUITY SECURITIES ( COMMON STOCKS)
NESTLEHUMAN RESOURCE
•RECRUITMENT COST ANALYSIS
•RELOCATION ANALYSIS
•PERSONNEL PLANNING
•TRAINING, ADMIN, EMPLOYEE BENEFITS
‘Computers have lots of memory but no imagination’. Author Unknown
BIBLIOGRAPHY
•WWW.MANAGEMENTPARADISE.COM
•WWW.UCALGARY.CA
•WWW.BETTSCOMPUTER.COM
•WWW.BUSINESS.COM
•WWW.NESTLE.COM
•WWW.ALLBUSINESS.COM