ITEC 1010 Information and Organizations Chapter 2 Information Systems in the Enterprise in the Enterprise Dr. Ahmed Aboul-fetouh IS.Dept.

ITEC 1010 Information and Organizations 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).

ITEC 1010 Information and Organizations 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

ITEC 1010 Information and Organizations 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 4

ITEC 1010 Information and Organizations 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 5

ITEC 1010 Information and Organizations 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 6

ITEC 1010 Information and Organizations Types of Business Information Systems

ITEC 1010 Information and Organizations

ITEC 1010 Information and Organizations  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.

ITEC 1010 Information and Organizations Some Types of Business Information Systems  Types  E-Commerce systems  Transaction processing systems  Management information systems  Decision support systems  Knowledge Management Systems

ITEC 1010 Information and Organizations Electronic and Mobile Commerce  E-commerce  Any business transaction executed electronically between: B2B Companies (business-to-business, B2B) B2C Companies and consumers (business-to- consumer, B2C) C2C Consumers and other consumers (consumer-to- consumer, C2C) Business and the public sector Consumers and the public sector 11

ITEC 1010 Information and Organizations Purchase Order - Traditional

ITEC 1010 Information and Organizations Purchase Order – E-commerce

ITEC 1010 Information and Organizations 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

ITEC 1010 Information and Organizations 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

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ITEC 1010 Information and Organizations 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.

ITEC 1010 Information and Organizations  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.). Master File & Transaction File

ITEC 1010 Information and Organizations 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

ITEC 1010 Information and Organizations Management Information Systems (MIS) (continued) Figure 2-5

ITEC 1010 Information and Organizations Schematic of MIS Common databases Marketing management information system Financial management Information system Manufacturing management Information system Order management information system TPS

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ITEC 1010 Information and Organizations 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 24

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ITEC 1010 Information and Organizations 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

ITEC 1010 Information and Organizations 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

ITEC 1010 Information and Organizations 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 28

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ITEC 1010 Information and Organizations 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 30

ITEC 1010 Information and Organizations TPS, MIS, DSS, and AI/ES AI/ES DSS MIS TPS Information Data LessMoreLessMore Less Routine Decision support Input & output Sophistication & complexity of processing & analysis

ITEC 1010 Information and Organizations Information Systems in the Functional Areas of Business  Finance and accounting  Sales and marketing  Manufacturing  Human resource management  Legal information systems 32

ITEC 1010 Information and Organizations Chapter 2 Information Systems in the Enterprise 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

ITEC 1010 Information and Organizations (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

ITEC 1010 Information and Organizations SYSTEMS FROM A FUNCTIONAL PERSPECTIVE (3) Financing and Accounting Information Systems Major functions of systems: Budgeting, general ledger, billing, cost accountingBudgeting, general ledger, billing, cost accounting Major application systems: General ledger, accounts receivable, accounts payable, budgeting, funds management systemsGeneral ledger, accounts receivable, accounts payable, budgeting, funds management systems

ITEC 1010 Information and Organizations SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Financing & Accounting Information Systems (Continued) SYSTEMDESCRIPTIONORGANIZATION -AL LEVEL Accounts receivable Tracks money owed the firmOperational BudgetingPrepares short-term budgetsManagement Profit planningPlans long-term profitsStrategic Table 2-4

ITEC 1010 Information and Organizations SYSTEMS FROM A FUNCTIONAL PERSPECTIVE (4) Human Resource Management Systems Major functions of systems: Personnel records, benefits, compensation, labor relations, trainingPersonnel records, benefits, compensation, labor relations, training Major application systems: Payroll, employee records, benefit systems, career path systems, personnel training systemsPayroll, employee records, benefit systems, career path systems, personnel training systems

ITEC 1010 Information and Organizations Human Resource Systems (Continued) An Employee Recordkeeping System Figure 2-11 SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

ITEC 1010 Information and Organizations (5) Supply Chain Management (SCM) Integrates supplier, manufacturer, distributor, and customer logistics timeIntegrates supplier, manufacturer, distributor, and customer logistics time Reduces time, redundant effort, and inventory costsReduces time, redundant effort, and inventory costs Network of organizations and business processesNetwork of organizations and business processes INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:

ITEC 1010 Information and Organizations Helps in procurement of materials, transformation of raw materials into intermediate and finished productsHelps in procurement of materials, transformation of raw materials into intermediate and finished products Helps in distribution of the finished products to customersHelps in distribution of the finished products to customers Includes reverse logistics - returned items flow in the reverse direction from the buyer back to the sellerIncludes reverse logistics - returned items flow in the reverse direction from the buyer back to the seller Supply Chain Management (SCM) INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:

ITEC 1010 Information and Organizations (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.

ITEC 1010 Information and Organizations