2 2 E-Business: How Business use Information System Chapter

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Types of Information Systems KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Major Types of Systems Executive Support Systems (ESS)Executive Support Systems (ESS) Decision Support Systems (DSS)Decision Support Systems (DSS) Management Information Systems (MIS)Management Information Systems (MIS) Knowledge Work Systems (KWS)Knowledge Work Systems (KWS) Office Automation Systems (OAS)Office Automation Systems (OAS) Transaction Processing Systems (TPS)Transaction Processing Systems (TPS) KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise TYPES OF INFORMATION SYSTEMS

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Transaction Processing Systems (TPS): Basic business systems that serve the operational levelBasic business systems that serve the operational level A computerized system that performs and records the daily routine transactions necessary to the conduct of the businessA computerized system that performs and records the daily routine transactions necessary to the conduct of the business

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Payroll TPS KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Types of TPS Systems KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Knowledge Work Systems (KWS): Knowledge level Inputs: Design specsInputs: Design specs Processing: ModelingProcessing: Modeling Outputs: Designs, graphicsOutputs: Designs, graphics Users: Technical staffUsers: Technical staff Example: Engineering work station Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Management Information System (MIS): Management level Inputs: High volume dataInputs: High volume data Processing : Simple modelsProcessing : Simple models Outputs: Summary reportsOutputs: Summary reports Users: Middle managersUsers: Middle managers Example: Annual budgeting Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Management Information System (MIS)

Structured and semi-structured decisionsStructured and semi-structured decisions Report control orientedReport control oriented Past and present dataPast and present data Internal orientationInternal orientation Lengthy design processLengthy design process Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Management Information System (MIS)

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Decision Support System (DSS): Management level Inputs: Low volume dataInputs: Low volume data Processing: InteractiveProcessing: Interactive Outputs: Decision analysisOutputs: Decision analysis Users: Professionals, staffUsers: Professionals, staff Example: Contract cost analysis KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Decision Support System (DSS)

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Decision Support System (DSS)

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Executive Support System (ESS): Strategic level Inputs: Aggregate dataInputs: Aggregate data Processing: InteractiveProcessing: Interactive Outputs: ProjectionsOutputs: Projections Users: Senior managersUsers: Senior managers Example: 5-year operating plan KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Executive Support System (ESS)

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Top level managementTop level management Designed to the individualDesigned to the individual Ties CEO to all levelsTies CEO to all levels Very expensive to keep upVery expensive to keep up Extensive support staffExtensive support staff KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Executive support system (ESS)

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTERRELATIONSHIPS AMONG SYSTEMS

Major functions of systems: Sales management, market research, promotion, pricing, new productsSales management, market research, promotion, pricing, new products Major application systems: Sales order info system, market research system, pricing systemSales order info system, market research system, pricing system Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Sales and Marketing Systems

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Sales and Marketing Systems

Major functions of systems: Scheduling, purchasing, shipping, receiving, engineering, operationsScheduling, purchasing, shipping, receiving, engineering, operations Major application systems: Materials resource planning systems, purchase order control systems, engineering systems, quality control systemsMaterials resource planning systems, purchase order control systems, engineering systems, quality control systems Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Manufacturing and Production Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Manufacturing and Production Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Overview of Inventory Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

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 Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Financing and Accounting Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Financing and Accounting Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

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 Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Human Resource Systems

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Human Resource Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Human Resource Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Customer Relationship Management (CRM) Manages all ways used by firms to deal with existing and potential new customersManages all ways used by firms to deal with existing and potential new customers Business and Technology disciplineBusiness and Technology discipline Uses information system to coordinate entire business processes of a firmUses information system to coordinate entire business processes of a firm Customer Relationship Management (CRM)

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Provides end-to-end customer careProvides end-to-end customer care Provides a unified view of customer across the companyProvides a unified view of customer across the company Consolidates customer data from multiple sources and provides analytical tools for answering questionsConsolidates customer data from multiple sources and provides analytical tools for answering questions Customer Relationship Management (CRM)

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Customer Relationship Management (CRM)

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Supply Chain Management (SCM) Close linkage and coordination of activities involved in buying, making, and moving a productClose linkage and coordination of activities involved in buying, making, and moving a product 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 Supply Chain Management (SCM)

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Supply Chain Network of organizations and business processesNetwork of organizations and business processes 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 Supply Chain Management (SCM)

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES 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)

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Supply Chain Management

Decide when, what to produce, store, moveDecide when, what to produce, store, move Rapidly communicate ordersRapidly communicate orders Communicate orders, track order statusCommunicate orders, track order status Check inventory availability, monitor levelsCheck inventory availability, monitor levels Track shipmentsTrack shipments Plan production based on actual demandPlan production based on actual demand Rapidly communicate product design changeRapidly communicate product design change Provide product specificationsProvide product specifications Share information about defect rates, returnsShare information about defect rates, returns Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise How Information Systems Facilitate Supply Chain Management INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Knowledge about how to create, produce and deliver products and servicesKnowledge about how to create, produce and deliver products and services Enable organizations to better manage processes for capturing and applying knowledge and expertiseEnable organizations to better manage processes for capturing and applying knowledge and expertise Process of acquiring, storing, distributing and applying knowledgeProcess of acquiring, storing, distributing and applying knowledge Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Knowledge Management System

Intranet connect internal company transaction systems, enabling employees to take actions central to a company’s operationsIntranet connect internal company transaction systems, enabling employees to take actions central to a company’s operations Extranet expedite the flow of information between the firm and its suppliers and customers.Extranet expedite the flow of information between the firm and its suppliers and customers. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Intranet and Extranet

Internet-based Collaboration EnvironmentInternet-based Collaboration Environment and Instant Messaging (IM) and Instant Messaging (IM) Cell Phones and Smart phonesCell Phones and Smart phones Social NetworkingSocial Networking WikisWikis Virtual WorldsVirtual Worlds Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Collaboration and Communication Systems

E-business refers to the use of digital technology and the internet to execute the major business processes in the enterprise. E- business includes activities for the internal management of the firm and for coordination with suppliers and other business partners.E-business refers to the use of digital technology and the internet to execute the major business processes in the enterprise. E- business includes activities for the internal management of the firm and for coordination with suppliers and other business partners. E-commerce is the part of e-business that deals with the buying and selling of goods and services over the internet. It includes activities supporting those market transactions, such as advertising, marketing, customer support, delivery, payment, etc.E-commerce is the part of e-business that deals with the buying and selling of goods and services over the internet. It includes activities supporting those market transactions, such as advertising, marketing, customer support, delivery, payment, etc. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES E-Business, E-Commerce and E-Government

E-government refers to the application of the internet and networking technologies to digitally enable government and public sector agencies’ relationships with citizens, businesses and other arms of government.E-government refers to the application of the internet and networking technologies to digitally enable government and public sector agencies’ relationships with citizens, businesses and other arms of government. Makes government operations more efficient and empower citizens by giving them easier access to information and ability to network electronically with other citizensMakes government operations more efficient and empower citizens by giving them easier access to information and ability to network electronically with other citizens Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES E-Business, E-Commerce and E-Government

Programmers are highly trained technical specialists who write software instructions for computers. System Analysts constitute the principal liaison between the information systems groups and the rest of the organization and translates the business problems and requirements into information requirements and systems. Information system managers are leaders of teams of programmers and analysts, or database specialists. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise The Information Systems Function in Business The Information System Department

Chief Information Officer (CIO) is a senior manager who oversees the use of information technology in the firm. Chief Security Office (CSO) is in-charge of information systems security for the firm and is responsible for enforcing the firm’s information security policy Chief Privacy Officer (CPO) is responsible for ensuring that the company complies with existing data privacy laws. Chief Knowledge officer (CKO) is responsible for firm’s knowledge management programmes End-users are representatives of departments outside of the information systems group for whom applications are developed. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise The Information Systems Function in Business The Information System Department

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