Things of Interest in Chapter 2 Major types of systems (TPS etc.) Differences based on decision structure Different systems based on organizational function (human resources etc.) ERP, CRM and SCM Demonstration of these (Gateway)

CHANGING CONCEPTS OF INFORMATION SYSTEMS TIME PERIOD CONCEPTION OF INFORMATION INFORMATION SYSTEM PURPOSE 1950-1960 BUREAUCRATIC REQUIREMENT ELECTRONIC SPEED ACCOUNTING & ACCOUNTING MACHINE PAPER PROCESSING 1960s-1970s GENERAL PURPOSE SUPPORT MIS SPEED GENERAL REPORTING REQUIREMENTS 1970s-1980s CUSTOMIZED MANAGEMENT SUPPORT DSS - ESS IMPROVE, CUSTOMIZE DECISION MAKING 1985-2000 STRATEGIC RESOURCE STRATEGIC SYSTEM PROMOTE SURVIVAL AND COMPETITIVE ADVANTAGE PROSPERITY OF ORGANIZATION BUSINESS FOUNDATION

TYPES OF INFORMATION SYSTEMS KIND OF SYSTEM GROUPS SERVED STRATEGIC LEVEL SENIOR MANAGERS ESS DSS MANAGEMENT LEVEL MIDDLE MANAGERS MIS OAS / KWS KNOWLEDGE LEVEL KNOWLEDGE & DATA WORKERS OPERATIONAL OPERATIONAL LEVEL MANAGERS TPS SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN MARKETING RESOURCES

MAJOR TYPES OF SYSTEMS EXECUTIVE SUPPORT SYSTEMS (ESS) DECISION SUPPORT SYSTEMS (DSS) MANAGEMENT INFORMATION SYSTEMS (MIS) KNOWLEDGE WORK STATIONS (KWS) OFFICE AUTOMATION SYSTEMS (OAS) TRANSACTION PROCESSING SYSTEMS (TPS) *

TRANSACTION PROCESSING SYSTEMS (TPS) OPERATIONAL LEVEL INPUTS: TRANSACTIONS, EVENTS PROCESSING: UPDATING OUTPUTS: DETAILED REPORTS USERS: OPERATIONS PERSONNEL EXAMPLE: Payroll cheques * 2.13

OFFICE AUTOMATION SYSTEMS (OAS) TOWARD A “PAPERLESS” OFFICE INTEGRATED SOFTWARE ERGONOMIC DESIGN STANDARDIZED INTERFACE EXAMPLE: PRESENTATION GRAPHICS WORDPROCESSING *

KNOWLEDGE WORK SYSTEMS (KWS) KNOWLEDGE LEVEL INPUTS: DESIGN SPECS PROCESSING: MODELLING OUTPUTS: DESIGNS, GRAPHICS USERS: TECHNICAL STAFF, PROFESSIONALS EXAMPLE: CAD Workstation *

MANAGEMENT INFORMATION SYSTEMS (MIS) MIDDLE MANAGEMENT LEVEL INTERNAL ORIENTATION INPUTS: HIGH VOLUME DATA (TPS) OUTPUT: REPORT CONTROL ORIENTED STRUCTURED AND SEMI-STRUCTURED DECISIONS EG. INVENTORY CONTROL, SALES VOLUME

DECISION SUPPORT SYSTEMS (DSS) UPPER MANAGEMENT LEVEL INPUTS: TPS, OAS, KWS and MIS OUTPUTS: DECISION ANALYSIS SEMI-STRUCTURE PROBLEMS “WHAT IF” SOPHISTICATED MODELING TOOLS EG. PRICE ELASTICITY ANALYSIS *

EXECUTIVE SUPPORT SYSTEMS (ESS) TOP LEVEL MANAGEMENT (STRATEGIC) DESIGNED TO THE INDIVIDUAL TIES CEO TO ALL LEVELS VERY EXPENSIVE TO DESIGN AND KEEP UP NON STRUCTURED DECISIONS *

TYPICAL TPS APPLICATIONS Sales & 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 *

TYPICAL TPS APPLICATIONS Human Resources 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 *

TYPICAL TPS APPLICATIONS Other Types (e.g., University) MAJOR FUNCTIONS OF SYSTEMS: Admissions; Grade Records; Course Records; Alumni MAJOR APPLICATION SYSTEMS: Registration System; Student Transcript System; Curriculum Class Control System; Alumni Benefactor System *

TPS DATA FOR MIS APPLICATIONS SALES DATA ORDER PROCESSING UNIT PRODUCT COST ORDER FILE MATERIALS RESOURCE PLANNING MIS REPORTS PRODUCT CHANGE DATA PRODUCTION MASTER FILE GENERAL LEDGER EXPENSE DATA MANAGERS ACCOUNTING FILES MIS FILES

SUPPLY-CHAIN MANAGEMENT CUSTOMERS PLANNING & FORECASTING ORDER PROCESSING SUPPLIERS INTRANET PRODUCTION PROCUREMENT ACCOUNTING LOGISTICS SERVICES SHIPPING INVENTORY DISTRIBUTORS

ENTERPRISE RESOURCE PLANNING SYSTEM (ERP) Manufacturing Human Resources Accounting Finance Business Processes Enterprise-wide Business Processes Vendors Customers Sales & Marketing

STRATEGY: Value Chain Analysis Highlights Activities that add Margin of Value to Product or Service Cash-back Shoe Box (receipts) Working Copy Of Tax Return Final Tax Return File Tax Return Organize Receipts Summarize Receipts Value added Steps by HR Block Canadian Government Enters Tax Return Tax Return Saved in Database How Could an Information System Be of Value to this Chain?

Gateway’s IS / Supply Chain 2 Order Placed 4 3 Dock Merge/ Delivery 5 6 CPU Parts Supplier Gateway CPU Assembly Customer 1 5 Monitor Supplier UPS Warehousing 1 1: Supply chain management EDI system 2: E-commerce www system 3: EDI interface to Gateway assembly factory 4: EDI interface to UPS 5: UPS Global tracking system 6: Customer digital signature receipt

GAP Analysis Suppose we are a moderate sized computer assembler / sales company that would like to enter into the “online” market (like Gateway). Do a Gap analysis to determine what information systems are needed. Assume that the telephone is presently used for supplier ordering and that customers are “walk in” (off the street).