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Chapter 7

Chapter 7. Information Systems within Organizations. Recall: Functional Areas. Accounting Marketing Finance Human Resources Operations/Production Ninja Arts. Recall: Types of Info. Systems. Operational Level (Spongebob Level) Transaction Processing System Example: Cash register system

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Chapter 7

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  1. Chapter 7 Information Systems within Organizations

  2. Recall: Functional Areas • Accounting • Marketing • Finance • Human Resources • Operations/Production • Ninja Arts

  3. Recall: Types of Info. Systems Operational Level (Spongebob Level) • Transaction Processing System • Example: Cash register system • Process Control System • Example: Assembly line system • Enterprise Collaboration System • Examples: Outlook, SharePoint, WebEX

  4. Recall: Types of Info. Systems Tactical and Strategic Management Level (Princess Level) • Management Information System • Static reports, aggregating data into information • Decision Support System • Interactive reports and data modeling • Executive Information Systems • Portal system, aggregates info at the strategic level, info from beyond the enterprise

  5. Recall: Functional vs. Enterprise Functional System • Example • Comprehensive accounting software solution • Multi-company consolidations, • Advanced budgeting • 140+ customizable reports and financial statements. Enterprise System • Example • Oracle's PeopleSoft Enterprise • Customer Relationship Management • Project Management • Financial Management • Supply Chain Management • Human Capital Management

  6. Example: Peachtree • Used for only one functional area: Accounting • What type of system is it? • Transaction Processing System – Accounting is all about processing day-to-day transactions • Management Information System – Summary reports help managers make daily, weekly, quarterly, and yearly decisions. • Helps aggregate operational data for managerial decision making.

  7. Example: Oracle’s PeopleSoft CRM • It’s a management information system that easily integrates with other TPS and ECS systems, it may have DSS type features. • What functional areas use this system? • Customer Relationship Management • (Marketing) • Project Management • (Operations) • Asset Lifecycle Management • (Accounting) • Financial Management • (Finance) • Human Capital Management • (Human Resources)

  8. Real Systems rarely fit into one cell

  9. Functional Systems are often multi-category

  10. Robust category-based systems are often cross-functional

  11. Where does Microsoft Excel fit in?

  12. Where does Microsoft Access fit in?

  13. Where does an Enterprise Database fit in?

  14. Tools vs. Complete Systems • Excel is often a tool used in a bigger system. • Tools are often general purpose; they are flexible and robust. • General purpose: Excel can be used as a calculator to add up Easter eggs or to add the cost of an F-35 jet fighter. • Robust: Excel has plug-ins to do quantum mechanics or financial calculations.

  15. Components vs. Complete Systems • A DBMS (like Access) is also a tool. • A tool for managing raw data. • But a DBMS is also a key component in bigger systems (like Peachtree or PeopleSoft). • PeopleSoft is actually built “on top of” an Oracle Enterprise DBMS. • PeopleSoft is a user interface and program that give a DBMS more capabilities (logical control). The DMBS manages the “physical” data.

  16. Another way to look at Information Systems • Porter’s value chain

  17. Where functional system fit • How 4 of the 5 functional systems directly support the value chain

  18. Why are cross-functional system really valuable? • Marketing is so connected to service and support. • Future sales come from customer loyalty and care • Why manage these with two separate systems?

  19. Why are cross-functional system really valuable? • Accounting and HR support the entire value chain. • Why manage these with two separate systems? • Combining an HR and Accounting systems creates efficiencies; how so?

  20. HR + Accounting

  21. Marketing + Operations = CRM

  22. Two other cross-functional (Enterprise Systems) • ERP (Enterprise Resource Planning) • Even more integration than a CRM • ERP = CRM (Marketing & Operations) + Accounting + HR + a little bit of Finance • SCM (Supply Chain Management) • Unique in the sense that it often combines three or more enterprises • Supplier, Retailer and Customer

  23. ERP Benefits (Chapter 7)

  24. ERP Characteristics (Chapter 7)

  25. SCM (Chapter 8) • To be continued…

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