PowerPoint Presentation by Charlie Cook Copyright © 2005 Prentice Hall, Inc. All rights reserved. Chapter 13 Information Technology for Business

Copyright © 2005 Prentice Hall, Inc. All rights reserved.12–2 Key Topics Information vs. Data The evolution from functional system to ERP Databases and how they are used Information system application programs Communications technology

Copyright © 2005 Prentice Hall, Inc. All rights reserved.12–3 Key Topics Business information management The Internet, the WWW, and intranets Organizational design options Information system application programs Databases and database software

Copyright © 2005 Prentice Hall, Inc. All rights reserved.12–4 Information Management Managing internal information resources to support business performance and outcomes  Information Manager manages the Information System AND  Turns mountains of data into useable information Memo to Sales Manager: You have $250,000 of sales on backorder. $175,000 is available to ship now. Signed, Data Analyst

Copyright © 2005 Prentice Hall, Inc. All rights reserved.12–5 Major Systems By Level Executive support systems  Top-level quick data source Management information systems  Customized repeating reports Decision support systems  Ideal distribution location Artificial intelligence and expert systems  Backorder management  Resume screening

Copyright © 2005 Prentice Hall, Inc. All rights reserved.12–6 Evolution of IS Scope Figure 12–1 1.One sales person uses contact management software to track customer information 2.A Sales Manager has her team implement the software and tracks contact frequency, sales per account, etc. 3.The company bases forecasts, sales people hiring, and future direction based on this information 4.Similar progressions happen in other departments. When these are brought together and integrated, an enterprise resource planning system is the result.

Copyright © 2005 Prentice Hall, Inc. All rights reserved.12–7 Evolving from departments to ERP Purchasing system Distribution system Sales system Accounting system Forecasting system Personnel system Enterprise Wide Data Base (eg Oracle) Front End Enterprise Applications Integration

Copyright © 2005 Prentice Hall, Inc. All rights reserved.12–8 From ERP to Supply Chain Management Purchasing Distribution Sales Accounting Forecasting Personnel Enterprise Wide Data Base (eg Oracle) SuppliersCustomers

Copyright © 2005 Prentice Hall, Inc. All rights reserved.12–9 What can you do with such a database? Retrieve sales data from your customers at point of sale Relay that information to the sales force Forecast sales based on your customers’ sales Relay forecasts to purchasing department Place forecasts with suppliers and distribution When an order is finally placed, all parties concerned are ready to fulfill, process, ship, and sell.

Copyright © 2005 Prentice Hall, Inc. All rights reserved.12–10 New paradigm created by an enterprise wide database Leaner organizations More flexible operations Increased collaboration Information security

Copyright © 2005 Prentice Hall, Inc. All rights reserved.12–11 Implementation warnings This is a massive leap of faith where your entire tool-bag changes in a heartbeat.  Learn the new system before going live.  Learn from another company who’s already done it.  Trade off:  Change your business to match the system, or  Customize your new system to match your business needs?  Security Concerns

Copyright © 2005 Prentice Hall, Inc. All rights reserved.12–12 Communication and Information Systems Expand the scope of ERP The Internet Video Conferencing Intranets Extranets

Copyright © 2005 Prentice Hall, Inc. All rights reserved.12–13 World Wide Web Terms URL Home Page Web Servers Web Browsers Directories Search Engines

Copyright © 2005 Prentice Hall, Inc. All rights reserved.12–14 Networking for Mass-Customization Figure 12–2

Copyright © 2005 Prentice Hall, Inc. All rights reserved.12–15 Matching Information Users and Systems Figure 12–3

Copyright © 2005 Prentice Hall, Inc. All rights reserved.12–16 Matching User Levels with Functional Areas and Business Processes Figure 12–4

Copyright © 2005 Prentice Hall, Inc. All rights reserved.12–17 User Groups and System Requirements Knowledge Workers  Employees whose jobs involve the use of information and knowledge as the raw materials of their work  Managers at different levels  Employees with specialized expertise in functional areas and business processes

Copyright © 2005 Prentice Hall, Inc. All rights reserved.12–18 Major Systems By Level Within the IS department…  IS knowledge workers  System operations personnel Knowledge level and office systems

Copyright © 2005 Prentice Hall, Inc. All rights reserved.12–19 Databases and Program Software Databases System Programs Application Programs Graphical User Interface

Copyright © 2005 Prentice Hall, Inc. All rights reserved.12–20 Telecommunications Telephony  Strategy? Really? Integrating with ERP Communication Channels  Dedicated land line  Wireless  Satellite

Copyright © 2005 Prentice Hall, Inc. All rights reserved.12–21 System Architecture Local and wide area networks  Connecting the hardware  Wireless networks  Client-server systems

Copyright © 2005 Prentice Hall, Inc. All rights reserved.12–22 Information Systems and Strategy The proper information system enables the chosen strategy. Too expensive of a system breaks the business  Eg bike.com Too simplistic a system hinders growth  Mom & pop flowers The right match of functionality and flexibility becomes a competitive advantage  Eg Wal Mart, Dell  Have you ever tried to business and had the other party say “Call back when our computers are up”?

Copyright © 2005 Prentice Hall, Inc. All rights reserved.12–23 Chapter Review Explain the importance of information management and the role of computers and communications technologies. Describe data communication networks. Describe new options for organizational design stemming from communication technology. Describe application programs at various organizational levels. Discuss databases and the purpose of database software.

Copyright © 2005 Prentice Hall, Inc. All rights reserved.12–24 Test Tips? 90% multiple choice.  Some memorization, some application/understanding  You know how much I prefer understanding. Choose ONE of the three available essays.  Either a leadership question  Or, a marketing question,  Or, and MIS question