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INFORMATION SYSTEMS IN BUSINESS AND EDUCATION

This information discusses various types of information systems, including executive support systems, decision support systems, management information systems, knowledge work systems, office automation systems, and transaction processing systems.

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INFORMATION SYSTEMS IN BUSINESS AND EDUCATION

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  1. 2 INFORMATION SYSTEMS IN BUSINESS AND EDUCATION

  2. LEARNING OBJECTIVES • ANALYZE ROLES OF 6 TYPES OF INFORMATION SYSTEMS • DESCRIBE TYPES OF INFORMATION SYSTEMS • ANALYZE RELATIONSHIPS BETWEEN BUSINESS PROCESSES *

  3. LEARNING OBJECTIVES • EXPLAIN HOW SYSTEMS & NETWORKS CREATE NEW EFFICIENCIES • EVALUATE BENEFITS & LIMITATIONS OF SYSTEMS & NETWORKS *

  4. MANAGEMENT CHALLENGES • KEY SYSTEM APPLICATIONS • FUNCTIONAL PERSPECTIVE OF SYSTEMS • INTEGRATING FUNCTIONS & PROCESSES *

  5. 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 *

  6. KIND OF SYSTEM GROUPS SERVED STRATEGIC LEVEL SENIOR MANAGERS MANAGEMENT LEVEL MIDDLE MANAGERS KNOWLEDGE LEVEL KNOWLEDGE & DATA WORKERS OPERATIONAL OPERATIONAL LEVEL MANAGERS SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN MARKETING RESOURCES TYPES OF INFORMATION SYSTEMS

  7. MAJOR TYPES OF 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) *

  8. TYPICAL TPS APPLICATIONSSales & 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 *

  9. TYPICAL TPS APPLICATIONSManufacturing & 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 *

  10. TYPICAL TPS APPLICATIONSFinance & 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 *

  11. TYPICAL TPS APPLICATIONSHuman 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 *

  12. TYPICAL TPS APPLICATIONSOther 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 *

  13. KNOWLEDGE WORK SYSTEMS (KWS) KNOWLEDGE LEVEL • INPUTS: DESIGN SPECS • PROCESSING: MODELLING • OUTPUTS: DESIGNS, GRAPHICS • USERS: TECHNICAL STAFF EXAMPLE: ENGINEERING WORK STATION

  14. OFFICE AUTOMATION SYSTEMS (OAS) • TOWARD A “PAPERLESS” OFFICE • REDESIGN OF WORK FLOW • INTEGRATED SOFTWARE • ERGONOMIC DESIGN • BRIGHT, CHEERFUL WORK SPACE EXAMPLE: PRESENTATION GRAPHICS

  15. MANAGEMENT INFORMATION SYSTEMS (MIS) MANAGEMENT LEVEL • INPUTS: HIGH VOLUME DATA • PROCESSING: SIMPLE MODELS • OUTPUTS: SUMMARY REPORTS • USERS: MIDDLE MANAGERS EXAMPLE: ANNUAL BUDGETING

  16. MANAGEMENT INFORMATION SYSTEMS (MIS) • STRUCTURED & SEMI-STRUCTURED DECISIONS • REPORT CONTROL ORIENTED • PAST & PRESENT DATA • INTERNAL ORIENTATION • LENGTHY DESIGN PROCESS *

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

  18. DECISION SUPPORT SYSTEMS (DSS) MANAGEMENT LEVEL • INPUTS: LOW VOLUME DATA • PROCESSING: INTERACTIVE • OUTPUTS: DECISION ANALYSIS • USERS: PROFESSIONALS, STAFF EXAMPLE: CONTRACT COST ANALYSIS

  19. DECISION SUPPORT SYSTEMS (DSS) • FLEXIBLE, ADAPTABLE, QUICK • USER CONTROLS INPUTS/OUTPUTS • NO PROFESSIONAL PROGRAMMING • SUPPORTS DECISION PROCESS • SOPHISTICATED MODELING TOOLS *

  20. EXECUTIVE SUPPORT SYSTEMS (ESS) STRATEGIC LEVEL • INPUTS: AGGREGATE DATA • PROCESSING: INTERACTIVE • OUTPUTS: PROJECTIONS • USERS: SENIOR MANAGERS EXAMPLE: 5 YEAR OPERATING PLAN

  21. EXECUTIVE SUPPORT SYSTEMS (ESS) • TOP LEVEL MANAGEMENT • DESIGNED TO THE INDIVIDUAL • TIES CEO TO ALL LEVELS • VERY EXPENSIVE TO KEEP UP • EXTENSIVE SUPPORT STAFF *

  22. ESS MIS DSS KWS OAS TPS INTERRELATIONSHIPS AMONG SYSTEMS

  23. SYSTEMS FROM A FUNCTIONAL PERSPECTIVE • SALES & MARKETING SYSTEMS • MANUFACTURING & PRODUCTION SYSTEMS • FINANCE & ACCOUNTING SYSTEMS • HUMAN RESOURCES SYSTEMS *

  24. SALES & MARKETING INFORMATION SYSTEM

  25. MANUFACTURING INFORMATION SYSTEM

  26. FINANCE & ACCOUNTING INFORMATION SYSTEM

  27. HUMAN RESOURCES INFORMATION SYSTEM

  28. EXAMPLES OF BUSINESS PROCESSES • MANUFACTURING & PRODUCTION: Assembling product, checking quality, producing bills of materials • SALES & MARKETING: Identifying customers, creating customer awareness, selling *

  29. EXAMPLES OF BUSINESS PROCESSES • FINANCE & ACCOUNTING: Paying creditors, creating financial statements, managing cash accounts • HUMAN RESOURCES: Hiring employees, evaluating performance, enrolling employees in benefits plans *

  30. ORDER PROCESSING PLANNING & FORECASTING CUSTOMERS SUPPLIERS PROCUREMENT ACCOUNTING INTRANET INTRANET PRODUCTION LOGISTICS SERVICES INVENTORY SHIPPING DISTRIBUTORS SUPPLY-CHAIN MANAGEMENT

  31. 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...

  32. TRADITIONAL VIEW OF SYSTEMS • WITHIN THE BUSINESS: There are functions, each having its uses of information systems • OUTSIDE THE ORGANIZATION’S BOUNDARIES: There are customers and vendors FUNCTIONS TEND TO WORK IN ISOLATION*

  33. Manufacturing Accounting Business Processes Enterprise-wideBusiness Processes Finance Human Resources Sales & Marketing ENTERPRISE SYSTEM Vendors Customers

  34. BENEFITS OF ENTERPRISE SYSTEMS • FIRM STRUCTURE & ORGANIZATION: One organization • MANAGEMENT: Firmwide knowledge-based management processes • TECHNOLOGY: Unified platform • BUSINESS: More efficient operations & customer-driven business processes *

  35. CHALLENGES OF ENTERPRISE SYSTEMS • DAUNTING IMPLEMENTATION • HIGH UP FRONT COSTS & FUTURE BENEFITS • INFLEXIBILITY • HARD TO REALIZE STRATEGIC VALUE *

  36. INDUSTRIAL NETWORKS LINK FIRMS INTO INDUSTRY-WIDE SYSTEM • HORIZONTAL: Link firms in same industry, including competitors • VERTICAL: Link firm with suppliers in same industry *

  37. INFORMATION SYSTEMS IN THE ENTERPRISE

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