Information systems for the firm Main classification (Source : Laudon & Laudon, Prentice- Hall, 2000) AC 2002

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 AC 2002

Operations level : I.S. to treat day to day transactions

“Knowledge” level : two types of information system Systems for office basic work : Word processing Document and image creation Electronic calendar (Outlook…) Systems for intellectual work : Engineering work stations and softwares Management work stations and softwares AC 2002

Management level : two types of information system Management information systems : Sales management Stock control Annual budgeting Capital investment control Carriers 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 AC 2002

Strategy level : I.S. for top executives Five year sales forecast Five year operation planning Five year budget forecast Profitability forecast Human resources planning AC 2002

Features and users of I.S. AC 2002

Evolution of Information Systems Information Systems entered the firms in the sixties : They were first concerned with accounting, and with production control Later, in the eighties and nineties, they entered all the other functions of the firm (from bottom up) : I.S. can increase tremendously the firm productivity Information is now considered a “product” of strategic value, whereas a generation ago it was only “red tape” AC 2002

An example : When it was clearly realized 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 selling action is to treat as well as possible your existing clients” In order to do that you have to know them very well, and customize your relationship with them. AC 2002