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INFORMATION SYSTEMS IN THE ORGANIZATION

INFORMATION SYSTEMS IN THE ORGANIZATION. OBJECTIVES of CHAPTER. Major Types of Systems in Organizations: Transaction Processing Systems Office Systems Knowledge Worker Systems (KWS) Decision Support Systems (DSS Management Information Systems (MIS) Executive Support Systems (ESS)

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INFORMATION SYSTEMS IN THE ORGANIZATION

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  1. INFORMATION SYSTEMS IN THE ORGANIZATION

  2. OBJECTIVES of CHAPTER • Major Types of Systems in Organizations: • Transaction Processing Systems • Office Systems • Knowledge Worker Systems (KWS) • Decision Support Systems (DSS • Management Information Systems (MIS) • Executive Support Systems (ESS) • Integration of business processes • Supply Chain Management (SCM) • Collaborative Commerce • Customer Relationship Management (CRM) • Enterprise systems • Need for management attention to business processes

  3. MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS • Operational-Level Systems • Monitor elementary activities • Knowledge-Level Systems • Support knowledge and data workers • Management-Level Systems • Support monitoring & control activities of middle managers • Strategic-Level Systems • Support long-range planning of senior management

  4. MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

  5. MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Transaction Processing System (TPS): Example: Payroll • Inputs:Employee data • Processing:calculations • Outputs: pay cheques, file updates, reports • Users:Payroll clerks, managers

  6. MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

  7. MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Knowledge Work Systems (KWS): Example: Engineering work station • Inputs:Design specs • Processing:Modeling • Outputs:Designs, graphics • Users:Technical staff and professionals

  8. MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Office Systems: Example: Calendaring • Inputs:Personal schedules • Processing: Matching calendars • Outputs:Group schedules for meetings, rooms, resources • Users: Knowledge workers, support staff

  9. MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Management Information System (MIS): Example: Annual budgeting • Inputs: Historical financial data, new requirements • high volume internal data, from TPS’s • database management, integration vital • Processing: DBMS  Spreadsheet models • highly structured • lengthy design process • Outputs: Summary reports (simple graphics) • Users: Middle managers

  10. MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

  11. MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Decision Support System (DSS): Example: Contract cost analysis • Inputs: Low-volume internal data, external data • Processing: Interactive analytical models and data analysis tools • used to support semi-structured decision-making • Outputs: Decision analysis • Users: Professionals, staff

  12. MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Executive Support System (ESS): Example: 5-year operating plan • Inputs: Aggregate data • internal and external • Processing: Interactive, unstructured • complex programming and support needed • Outputs: Projections, advanced graphics • Users: Senior managers

  13. MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

  14. OBJECTIVES of CHAPTER • Major Types of Systems in Organizations: • Transaction Processing Systems • Office Systems • Knowledge Worker Systems (KWS) • Decision Support Systems (DSS • Management Information Systems (MIS) • Executive Support Systems (ESS) • Integration of business processes • Enterprise systems • Supply Chain Management (SCM) • Collaborative Commerce • Customer Relationship Management (CRM) • Need for management attention to business processes

  15. INTEGRATION OF BUSINESS PROCESSES Traditional View of Systems • Within the business: • Separate business processes*, each with its own information system • Outside the organization’s boundaries: • Customers and vendors • Contact requires human intermediary Functions tend to work in isolation * “The unique ways in which organizations organize work activities, information, and knowledge to produce a product or service.”

  16. INTEGRATION OF BUSINESS PROCESSES

  17. INTEGRATION OF BUSINESS PROCESSES Integration is needed because Business Processes are often Cross-functional

  18. INTEGRATION OF BUSINESS PROCESSES Enterprise Systems • Technology platform allowing integration of business processes across departments and levels • Also known as Enterprise Resource Planning Systems (ERP) • Requires central, unified database management

  19. INTEGRATION OF BUSINESS PROCESSES Enterprise Systems

  20. INTEGRATION OF BUSINESS PROCESSES • Benefits of ERP • Firm-wide knowledge-based management processes • Unified technologyplatform • More efficient operations • customer-driven business processes • Challenges • Complex technology • Need to rework business processes • Centralized decision making may not work for all organizations

  21. INTEGRATION OF BUSINESS PROCESSES Supply Chain Management (SCM) • Close linkage of activities involved in • buying raw materials • making product • distributing product to customers • Reduces time, redundant effort, and inventory costs

  22. INTEGRATION OF BUSINESS PROCESSES

  23. INTEGRATION OF BUSINESS PROCESSES • Supply Chain Planning System: • generate forecasts for a product • develop sourcing and manufacturing plan • Supply Chain Execution System: • Manage flow of products through distribution centers • Challenges: • Inefficiencies can waste as much as 25% of a company’s operating costs • Bullwhip Effect • Reverse Logistics

  24. INTEGRATION OF BUSINESS PROCESSES Collaborative Commerce • Collaborative Planning, Forecasting, and Replenishment (CPFR) • Firms & their suppliers cooperate to: • Formulate demand forecasts • Develop production plans • Coordinate shipping, warehousing and stocking activities

  25. INTEGRATION OF BUSINESS PROCESSES

  26. INTEGRATION OF BUSINESS PROCESSES Customer Relationship Management (CRM) • Manages all ways used by firms to deal with customers • Uses IS to integrate all business processes involved: • sales & marketing • billing • service • ‘end-to-end’ customer care • Provides a unified view of customer across the company • Consolidates customer data from multiple sources • Provides analytical tools for answering questions

  27. 2.2 ENTERPRISE APPLICATIONS Customer Relationship Management (CRM)

  28. OBJECTIVES of CHAPTER • Major Types of Systems in Organizations: • Transaction Processing Systems • Office Systems • Knowledge Worker Systems (KWS) • Decision Support Systems (DSS • Management Information Systems (MIS) • Executive Support Systems (ESS) • Integration of business processes • Enterprise systems • Supply Chain Management (SCM) • Collaborative Commerce • Customer Relationship Management (CRM) • Need for management attention to business processes

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