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Information Systems in the Enterprise

Learn about information systems and their components, including hardware, software, databases, and people. Explore different types of business information systems such as management support systems, transaction processing systems, and decision support systems. Discover the role of electronic and mobile commerce in today's business world.

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Information Systems in the Enterprise

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  1. Chapter 2 Information Systems in the Enterprise Dr. Ahmed Aboul-fetouh IS.Dept.

  2. Information System (IS) • Definition • A set of interrelated elements or components that collect (input), manipulate (process), and disseminate (output) data and information and provide a feedback mechanism to meet an objective. • For many companies, IS is the name of the department responsible for computers, networking and data management. Other companies refer to the department as IT (Information Technology) and MIS (Management Information Services).

  3. Computer-based Information Systems • A CBIS is composed of… • Hardware • Software • Databases • Telecommunications • People • Procedures • Together they are… • Configured to collect, manipulate, store, and process data into information

  4. Computer-Based Information Systems (cont’d) • Hardware • Consists of computer equipment used to perform input, processing, and output activities • Software • Consists of the computer programs that govern the operation of the computer • Database • Organized collection of facts and information, typically consisting of two or more related data files

  5. Computer-Based Information Systems (cont’d) • Telecommunications, networks, and the Internet • The electronic transmission of signals for communications • Networks • Connect computers and equipment to enable electronic communication • Internet • World’s largest computer network, consisting of thousands of interconnected networks, all freely exchanging information

  6. Computer-Based Information Systems (cont’d) • People • Can be the most important element in most computer-based information systems • Procedures • Include strategies, policies, methods, and rules for using the CBIS

  7. Types of Business Information Systems

  8. Management support System , support the decision-making needs of strategic (top) management, tactical (middle) management. • Operations support systems , support the information processing requirements of the day-to-day operations of a business as well as some lower- level operations management functions.

  9. Some Types of Business Information Systems • Types • E-Commerce systems • Transaction processing systems • Management information systems • Decision support systems • Knowledge Management Systems

  10. Electronic and Mobile Commerce • E-commerce • Any business transaction executed electronically between: • Companies (business-to-business, B2B) • Companies and consumers (business-to-consumer, B2C) • Consumers and other consumers (consumer-to-consumer, C2C) • Business and the public sector • Consumers and the public sector

  11. Purchase Order - Traditional

  12. Purchase Order – E-commerce

  13. Electronic and Mobile Commerce (cont’d) • Mobile commerce (m-commerce) • Transactions conducted anywhere, anytime • E-commerce • Can enhance a company’s stock prices and market value • Electronic business (e-business) • Uses information systems and the Internet to perform all business-related tasks and functions

  14. Transactions Processing Systems • Transaction • Any business-related exchange • E.g., generating a weekly payroll • Transaction processing system (TPS) • An organized collection of people, procedures, software, databases, and devices used to record completed for business related exchanges

  15. Master File & Transaction File • Master File A master file is a file used as a reference for a particular computer application. It may be updated when necessary. E.g. a file details of the goods stored.

  16. Master File & Transaction File • Transaction File A transaction file is a file of temporary data, which has been prepared in order to carry out a processing operation with the data on a master file. Usually the transaction file is being used to update the master file which contain the data about the subjects of the organization (customers, employees, vendors, etc.).

  17. Management Information Systems • An MIS is… • An organized collection of people, procedures, software, databases, and devices used to routine information to managers and decision makers

  18. Figure 2-5 Management Information Systems (MIS) (continued)

  19. Schematic of MIS Marketingmanagement information system Manufacturing management Information system Common databases Financial management Information system Order management information system TPS

  20. Information and Decision Support Systems • Decision support system (DSS) • Organized collection of people, procedures, software, databases, and devices that support problem-specific decision making • Used when problem is complex and information needed to determine appropriate action is difficult to obtain and use

  21. IDecision Support Systems Components

  22. DSS Components 1. Data (Base) Management Subsystem 2. Model (Base) Management Subsystem 3. Knowledge-based (Management) Subsystem 4. User Interface Subsystem (Dialogue) 5. The User

  23. DSS (Cont..) • Decision Support Systems (DSS) • Designed to help decision makers • Provides interactive environment for decision making • Use internal information from TPS and MIS as well as external sources • Have more analytical power than other systems

  24. Specialized Business Information Systems: Knowledge Management, Artificial Intelligence, Expert Systems, and Virtual Reality • Knowledge management systems (KMSs) • Organized collection of people, procedures, software, databases, and devices to • Create, store, share, and use the organization’s knowledge and experience • Artificial intelligence (AI) • Computer system takes on characteristics of human intelligence

  25. Specialized Business Information Systems: Knowledge Management, Artificial Intelligence, Expert Systems, and Virtual Reality (cont’d)

  26. Specialized Business Information Systems: Knowledge Management, Artificial Intelligence, Expert Systems, and Virtual Reality (cont’d) • Expert systems • Give computer ability to make suggestions and function like an expert in a particular field • Virtual reality • Simulation of a real or imagined environment that can be experienced visually in three dimensions

  27. TPS, MIS, DSS, and AI/ES Information AI/ES Less More Less More DSS Sophistication& complexity ofprocessing & analysis Decisionsupport Input & output Routine MIS TPS Data More Less More Less

  28. Information Systems in the Functional Areas of Business • Finance and accounting • Sales and marketing • Manufacturing • Human resource management • Legal information systems

  29. Chapter 2 Information Systems in the Enterprise (Some another Systems from FUNCTIONAL PERSPECTIVE ) (1) 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

  30. (2) 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

  31. SYSTEMS FROM A FUNCTIONAL PERSPECTIVE (3) Financing 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

  32. SYSTEM DESCRIPTION ORGANIZATION-AL LEVEL Accounts receivable Tracks money owed the firm Operational Budgeting Prepares short-term budgets Management Profit planning Plans long-term profits Strategic SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Financing & Accounting Information Systems (Continued) Table 2-4

  33. SYSTEMS FROM A FUNCTIONAL PERSPECTIVE (4) Human Resource Management 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

  34. Figure 2-11 SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Human Resource Systems (Continued) An Employee Recordkeeping System

  35. INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: (5) Supply Chain Management (SCM) • Integrates supplier, manufacturer, distributor, and customer logistics time • Reduces time, redundant effort, and inventory costs • Network of organizations and business processes

  36. INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Supply Chain Management (SCM) • Helps in procurement of materials, transformation of raw materials into intermediate and finished products • Helps in distribution of the finished products to customers • Includes reverse logistics - returned items flow in the reverse direction from the buyer back to the seller

  37. (6) Customer Relationship Management(CRM) CRM enables an organization to identify, attract, retain and support customers using multiple channels such as the World Wide Web, direct sales, telemarketing call centers, direct mail and retail facilities.

  38. http://www.crmup.com/?gclid=CIfI-uCbvagCFZoT3wodmVkADw

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