Information systemsfor the firm Main types (Source : Laudon & Laudon, Prentice- Hall, 2000)
Four levels of applications of I.S. in the firm • Strategy level: I.S. for top executives • Management level: I.S. for middle management • “Knowledge” level: I.S. for office employees • Operations level: I.S. for production, sales, marketing, accounting, and H.R. functions
“Knowledge” leveltwo types of information system • Systems for basic office work: • Word processing • Document and image creation • Electronic calendar (Outlook…) • Systems for intellectual work: • Engineering work stations and softwares • Management work stations and softwares
Management leveltwo types of information system • Management information systems: • Sales management • Stock control • Yearly budgeting • Capital investment control • Careers evolution management • Systems to assist middle mgt decision process: • Sales analysis by region • Production planning • Costs analysis and costs control • Price analysis and profitability analysis
Strategy levelI.S. for top executives • Five year sales forecast • Five year operation planning • Five year budget forecast • Profitability forecast • Human resources planning
Evolution of Information Systems • Information Systems entered the firms in the 60’s • They were first used in accounting and production control • In the 80’s and 90’s, they entered all the other functions of the firm (from bottom up) • I.S. can tremendously increase the firm’s productivity • Information is now considered a “product” with strategic value, whereas a generation ago it was only “red tape”
An example • When it was realised that gaining a new client was about 5 times more expensive than keeping an existing one, and that I.S. provided new means to analyze and retain clients, C.R.M. (Client Relationship Management) was born. • “The most efficient sale action is to treat well your existing clients” • You have to know them very well, and customize your relationship with them.