© 2005 By Prentic Hall1 1 University Of Palestine Essentials of Management Information Systems Kenneth C. Laudon, Jane P. Laudon Instructor: Mr. Ahmed Al Astal Chapter 2 INFORMATION SYSTEMS IN THE ENTERPRISE

© 2005 By Prentic Hall2 2 University Of Palestine Chapter Objectives What are the major types of systems in a business? What role do they play? How do information systems support the major business functions? Why should managers pay attention to business processes?

© 2005 By Prentic Hall3 3 University Of Palestine Chapter Objectives ( Cont.) What are the benefits and challenges of using enterprise systems? What are the benefits of using systems to support supply chain management and collaborative commerce? What are the benefits of using information systems for customer relationship management and knowledge management?

© 2005 By Prentic Hall4 4 University Of Palestine MANAGEMENT CHALLENGES Integration: Different systems serve variety of functions, connecting organizational levels difficult, costly Enlarging scope of management thinking: Huge system investments, long development time must be guided by common objectives

© 2005 By Prentic Hall5 5 University Of Palestine Key System Applications in the Organizations Organizations can be divided into strategic, management, knowledge, and operational levels and into five major functional areas: sales and marketing, manufacturing, finance, accounting, and human resources.

© 2005 By Prentic Hall6 University Of Palestine Kinds of Information Systems: Operational Level Systems: IS that monitor the elementary activities and transactions of the organization. Knowledge Level Systems: IS that support knowledge and data workers in the organization Management Level Systems: IS that support the monitoring, controlling, decision making, and administration in the middle managers. Strategic Level Systems: IS that support the long range planning activities of senior managers.

© 2005 By Prentic Hall7 7 University Of Palestine Major Types of Systems in Organizations 1.Executive Support Systems (ESS) 2.Decision Support Systems (DSS) 3.Management Information Systems (MIS) 4.Knowledge Work Systems (KWS) 5.Office Systems 6.Transaction Processing Systems (TPS)

© 2005 By Prentic Hall8 8 University Of Palestine Major Types of Systems in Organizations

© 2005 By Prentic Hall9 9 University Of Palestine Major Types of Systems in Organizations 1) Transaction Processing Systems (TPS): Basic business systems that serve the operational level A computerized system that performs and records the daily routine transactions necessary to the conduct of the business

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© 2005 By Prentic Hall12 University Of Palestine Major Types of Systems in Organizations (Cont.) 2) Knowledge Work Systems (KWS): Information systems that aid knowledge workers in the creation and integration of new knowledge in the organization.

© 2005 By Prentic Hall13© 2005 By Prentic Hall13 University Of Palestine Major Types of Systems in Organizations (Cont.) 2) Knowledge Work Systems (KWS) ( cont. ): Knowledge level Inputs: Design specs Processing: Modeling Outputs: Designs, graphics Users: Technical staff and professionals Example: Engineering work station

© 2005 By Prentic Hall14 University Of Palestine Major Types of Systems in Organizations (Cont.) 3) Office Systems Computer systems such as word processing, electronic mails, and scheduling systems, that are designed to increase productivity of data and knowledge workers in the office.

© 2005 By Prentic Hall15© 2005 By Prentic Hall15 University Of Palestine Major Types of Systems in Organizations (Cont.) 4) Management Information System (MIS): Management level Inputs: High-volume data Processing: Simple models Outputs: Summary reports Users: Middle managers Example: Annual budgeting

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© 2005 By Prentic Hall17© 2005 By Prentic Hall17 University Of Palestine Management Information System (MIS) (Cont.) Structured and semi-structured decisions Report control oriented Past and present data Internal orientation Lengthy design process

© 2005 By Prentic Hall18© 2005 By Prentic Hall18 University Of Palestine Major Types of Systems in Organizations (Cont.) 5) Decision Support System (DSS): Management level Inputs: Low-volume data Processing: Interactive Outputs: Decision analysis Users: Professionals, staff Example: Contract cost analysis

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© 2005 By Prentic Hall20© 2005 By Prentic Hall20 University Of Palestine Major Types of Systems in Organizations (Cont.) 6) Executive Support System (ESS): Strategic level Inputs: Aggregate data Processing: Interactive Outputs: Projections Users: Senior managers Example: 5-year operating plan

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© 2005 By Prentic Hall22© 2005 By Prentic Hall22 University Of Palestine Executive Support System (ESS)(Cont.) Top level management Designed to the individual Ties CEO to all levels Very expensive to keep up Extensive support staff

© 2005 By Prentic Hall23© 2005 By Prentic Hall23 University Of Palestine Interrelationships Among Systems