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MODULE-2 : UNIT-6 INTRODUCTION TO COMMONLY USED SYSTEMS AND MODELS

MODULE-2 : UNIT-6 INTRODUCTION TO COMMONLY USED SYSTEMS AND MODELS. OBJECTIVES. What are the major types of systems in a business? What role do they play? How do information systems support the major business functions? Why should managers pay attention to business processes?. OBJECTIVES.

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MODULE-2 : UNIT-6 INTRODUCTION TO COMMONLY USED SYSTEMS AND MODELS

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  1. MODULE-2 : UNIT-6 INTRODUCTION TO COMMONLY USED SYSTEMS AND MODELS

  2. OBJECTIVES • What are the major types of systems in a business? What role do they play? • How do information systems support the major business functions? • Why should managers pay attention to business processes?

  3. OBJECTIVES • What are the benefits and challenges of using enterprise resource planning (ERPS) systems? • What are the benefits of using systems to support supply chain management ? • What are the benefits of using information systems for customer relationship management and knowledge management?

  4. MANAGEMENT CHALLENGES • Integration:Different systems serve variety of functions, connecting organizational levels difficult & costly. • Enlarging Scope of Management Thinking:Huge system investments, long development time must be guided by common objectives.

  5. KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Figure 2-1 Types of Information Systems

  6. MAJOR TYPES OF INFORMATION SYSTEMS IN ORGANIZATIONS BROAD CLASSIFICATION • Operations Support Systems (OSS) • Management Support Systems (MSS) • Other Systems

  7. MAJOR TYPES OF INFORMATION SYSTEMS IN ORGANIZATIONS Operations Support Systems (OSS) • Transaction Processing Systems (TPS) • Process Control Systems (PCS) • Office Automation Systems (OAS) • Knowledge Work Systems (KWS)

  8. MAJOR TYPES OF INFORMATION SYSTEMS IN ORGANIZATIONS Management Support Systems (MSS) • Executive Support Systems (ESS) • Decision Support Systems (DSS) • Management Information Systems (MIS)

  9. MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS OTHER INFORMATION SYSTEMS • Systems from a Functional Perspective (BIS) • Enterprise Systems • Business Expert Systems (Intelligent Systems)

  10. MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Figure 2-2

  11. MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS • Transaction Processing Systems (TPS): • Basic business systems that serve the operational level. • A computerized system that performs and records the daily routine transactions necessary to the conduct of the business. • There is a TPS in each functional area.

  12. MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Figure 2-3 Payroll TPS (HR Function)

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

  14. MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Management Information System (MIS): Management level • Inputs: High volume data from TPS • Processing: Simple models • Outputs: Summary reports • Users: Middle managers Example: Annual budgeting

  15. MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Management Information System (MIS) CHARACTERISTICS • Structured and semi-structured decisions • Report control oriented • Past and present data • Internal orientation • Lengthy design process

  16. MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Decision Support System (DSS): Management Level • Inputs: Low volume data • Processing: Interactive • Outputs: Decision analysis • Users: Professionals, staff Example: Contract cost analysis

  17. DECISION-SUPPORT SYSTEMS (DSS) Overview of a Decision-Support System (DSS) Figure 11-2

  18. MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Executive Support System (ESS): Strategic Level : • Inputs: Aggregate data (internal & external) • Processing: Interactive, analytical • Outputs: Projections for future • Users: Senior managers Example: 5-year operating plan

  19. MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Figure 2-8 Executive Support System (ESS)

  20. MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Executive Support System (ESS) : Characteristics • Top level management • Designed to the style of Individual Executive • Ties CEO to all levels • Very expensive to keep up, extensive support staff. • Presentation Methods : Graphics Display, Exception Reporting, Trend Analysis • Web browsing ability • Analytical techniques based on Management Science and OR

  21. SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Sales and 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

  22. SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Sales and Marketing Systems Table 2-2

  23. SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Manufacturing and 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

  24. SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Manufacturing and Production Systems Table 2-3

  25. SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Finance and Accounting Information Systems Major functions of systems: • Budgeting, general ledger, billing, cost accounting Major application systems: • General ledger, accounts receivable, accounts payable, budgeting, funds management systems

  26. SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Finance and Accounting Information Systems Table 2-4

  27. SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Human Resource Information 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

  28. SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Human Resource Information Systems Table 2-5

  29. ENTERPRISE APPLICATIONS • Enterprise resource planning systems (ERPS) • Supply chain management systems (SCM) • Customer relationship management systems (CRM) • Knowledge management systems (KMS)

  30. ENTERPRISE APPLICATIONS Figure 2-14 Enterprise Resource Planning Systems (ERPS)

  31. ENTERPRISE APPLICATIONS Benefits of ERP Systems • Firm structure and organization: New structures possible, disciplined organization Culture. • Management: Improved management reporting and decision making. • I.S. Technology: Unified platform • Business Capability: More efficient operations and customer-driven business processes.

  32. ENTERPRISE APPLICATIONS Challenges of ERP Systems • Difficult to build: Require fundamental changes in the way the business operates • Technology: Require complex pieces of software and large investments of time, money, and expertise • Centralized organizational coordination and decision making: Not the best way for some firms to operate

  33. ENTERPRISE APPLICATIONS Supply Chain Management (SCM) Supply Chain • It is a network of organizations and business processes. • It helps in procurement of materials, transformation of raw materials into intermediate and finished products and distributing finished products to customers.

  34. ENTERPRISE APPLICATIONS Supply Chain Management (SCM) System • Provides close linkage and coordination of activities involved in buying, making, and moving a product. • Integrates supplier, manufacturer, distributor, and customer logistics time. • Reduces time, redundant effort, and inventory costs.

  35. ENTERPRISE APPLICATIONS Supply Chain Management Figure 2-15

  36. ENTERPRISE APPLICATIONS How Information Systems Facilitate 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 change • Provide product specifications • Share information about defect rates & returns

  37. ENTERPRISE APPLICATIONS Customer Relationship Management (CRM) : Functions • Manages all ways used by firms to deal with existing and potential new customers • CRM is both a business and I.S. technology discipline. • Uses information system to coordinate entire business processes of a firm.

  38. ENTERPRISE APPLICATIONS Customer Relationship Management (CRM) : Functions (contd.) • Provides end-to-end customer care : From receipt of order through product delivery. • Provides a unified view of customer across the company. • Consolidates customer data from multiple sources and provides analytical tools for answering questions, e.g. identification of best customers.

  39. Knowledge Management Systems • Creating knowledge • Discovering and codifying knowledge • Sharing knowledge • Distributing knowledge

  40. MODULE-2 : UNIT-6 INTRODUCTION TO COMMONLY USED SYSTEMS AND MODELS

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