1. Prof. Yuan-Shyi Peter Chiu
Introduction to M.I.S.
April 17, 2017
Management Information Systems - Class Note # 2
Prof. Yuan-Shyi Peter Chiu
Feb
Dr. Yuan-Shyi Peter Chiu

2. Chap 2 Information Systems in the Enterprise
Introduction to M.I.S.
April 17, 2017
Chap 2 Information Systems in the Enterprise
2.1 Key System Applications in the Organization
2.2 Systems from a Functional Perspective
2.3 Integrating Functions and Business Processes
2.4 International Information Systems
Dr. Yuan-Shyi Peter Chiu

3. Fig 2.1: Types of Information Systems

4. Different kinds of systems
2.1
Different kinds of systems
 Operational-level systems
Information systems that monitor the elementary activities and transactions of the organization .
Information systems that support knowledge and data workers in an organization.
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 Knowledge-level systems

5. Different kinds of systems
2.1
Different kinds of systems
 Management-level systems
Information systems that support the monitoring, controlling, decision making, and administrative activities of middle managers.
 Information systems that support the long-range planning activities of senior management .
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 Strategic-level systems

6. Major Types of Systems Executive Support Systems (ESS)
Decision Support Systems (DSS)
Management Information Systems (MIS)
Knowledge Work Systems (KWS)
Office Automation Systems (OAS)
Transaction Processing Systems (TPS)

7. Fig 2-2: The six major types of information systems.

8. Six Major Types of Systems
2.1
Six Major Types of Systems
 TPS – Transaction Processing Systems
 Computerized systems that perform and record the daily routine transactions necessary to conduct the business; they serve the organization’s operational level.

9. Fig 2-4: Typical applications of TPS■

10. 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
See Fig ( p.43 )

11. TPS – Transaction Processing Systems
2.1
TPS – Transaction Processing Systems
 Manufacturing
 Plant scheduling
 Material movement control
 Machine control
 Finance
 Securities trading
 Cash management

12. TPS – Transaction Processing Systems
2.1
TPS – Transaction Processing Systems
 Accounting
 Payroll
 Account payable
 Account receivable
 Human Resources
 Compensation
 Training & development
 Employee record keeping

13. Fig 2-3: A symbolic representation for a payroll TPS.
2.1
Payroll TPS ◆
Fig 2-3: A symbolic representation for a payroll TPS.

14. Six Major Types of Systems
2.1
Six Major Types of Systems
 KWS – knowledge work systems
 Information systems that aid knowledge workers in the creation and integration of new knowledge in the organization .
Example: Engineering work station

15. Six Major Types of Systems
2.1
Six Major Types of Systems
 OAS – office automation systems
 Computer systems, such as word processing, electronic mail systems, and scheduling systems, that are designed to increase the productivity of data workers in the office .

16. Six Major Types of Systems
2.1
Six Major Types of Systems
 MIS – Management Information Systems
 Information systems at the management level of organization that serve the functions of planning, controlling, and decision making by providing routine summary and exception reports.
Example: Annual budgeting

17. 2.1 MIS Structured and semi-structured decisions
Report control oriented
Past and present data
Internal orientation

18. TPS DATA FOR MIS APPLICATIONS
Fig 2-5: How management information systems obtain their data the from the organization’s TPS .

19. Six Major Types of Systems
2.1
Six Major Types of Systems
 DSS – Decision Support Systems
 Information systems at the management level of an organization that combine data and sophisticated analytical models to support non-routine decision making.
Example: Contract cost analysis

20. Fig 2-7: Voyage estimating decision-support system .
Decision Support System (DSS) ◆
Fig 2-7: Voyage estimating decision-support system .

21. 2.1 MIS & DSS  Sales and marketing Manufacturing  Sales management
 Sales region analysis
Manufacturing
 Inventory control
 Production scheduling

22.  Finance  Accounting  Human Resource 2.1 MIS & DSS
 Annual budgeting
 Cost analysis
 Accounting
 Capital investment analysis
 Pricing / profitability analysis
 Human Resource
 Relocation analysis
 Contract cost analysis

23. Six Major Types of Systems
2.1
Six Major Types of Systems
 ESS – Executive Support Systems
 Information system at the organization’s strategic level designed to address unstructured decision making through advanced graphics and communications.
Example: 5-year operating plan

24. 2.1 ESS Top level management Designed to the individual
Ties CEO to all levels
Very expensive to keep up
Extensive support staff

25. Executive Support System (ESS)
Figure 2-8
Fig 2-8: Model of a typical executive support system .

26.  Sales and marketing  Sales trend  Manufacturing  Operating plan
2.1
ESS
 Sales and marketing  Sales trend
forecasting
 Manufacturing  Operating plan
 Finance  Budget forecasting
 Accounting  Profit planning
 Human Resource  Personnel planning

27. Characteristics of Different Types of Information Systems
2.1
Characteristics of Different Types of Information Systems
 Information inputs
 Processing
 Information outputs
 Users
See Table 2-1 ( p.41 )

28. Fig 2-9: Interrelationships among systems
2.2 Systems from a Functional Perspective
Fig 2-9: Interrelationships among systems

29. 2.2 Systems from a Functional Perspective
 SALES & MARKETING SYSTEMS
 MANUFACTURING & PRODUCTION SYSTEMS
 FINANCE & ACCOUNTING SYSTEMS
 HUMAN RESOURCES SYSTEMS

30. Sales and Marketing Systems
2.2 Systems from a Functional Perspective
Sales and 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

31. Sales and Marketing Systems

32. Manufacturing and Production Systems
2.2 Systems from a Functional Perspective
Manufacturing and Production Systems
Major functions of systems:
Scheduling, purchasing, shipping, receiving, engineering, operations
Major application systems:
Materials resource planning systems, purchase order control systems, engineering systems, quality control systems

33. Manufacturing and Production Systems

34. Financing and Accounting Systems
2.2 Systems from a Functional Perspective
Financing and Accounting Systems
Major functions of systems:
Budgeting, general ledger, billing, cost accounting
Major application systems:
General ledger, accounts receivable, accounts payable, budgeting, funds management systems

35. Financing and Accounting Systems

36. Human Resource Systems
2.2 Systems from a Functional Perspective
Human Resource 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

37. Human Resource Systems

38. 2.3 Business Processes and Information Systems
Manner in which work is organized, coordinated, and focused to produce a valuable product or service
Concrete work flows of material, information, and knowledge—sets of activities
Unique ways to coordinate work, information, and knowledge
Ways in which management chooses to coordinate work

39. Examples of Business Processes
Business Processes and Information Systems
Examples of Business Processes
Manufacturing and production: Assembling product, checking quality, producing bills of materials
Sales and marketing: Identifying customers, creating customer awareness, selling

40. Fig. 2-12 The Order Fulfillment Process
Business Processes and Information Systems
Cross-Functional Business Processes
Fig The Order Fulfillment Process

41. Information systems help organizations
Business Processes and Information Systems
Information systems help organizations
Achieve great efficiencies by automating parts of processes
Rethink and streamline processes

42. 2.3 Business Processes and Information Systems
Customer Relationship Management (CRM)
Manages all ways used by firms to deal with existing and potential new customers
Uses information system to coordinate entire business processes of a firm
Provides end-to-end customer care
Provides a unified view of customer across the company
Consolidates customer data from multiple sources and provides analytical tools for answering questions

43. 2.3 Business Processes and Information Systems
Customer Relationship Management (CRM)
Figure 2-13

44. 2.3 Business Processes and Information Systems
Supply Chain Management (SCM)
Close linkage and coordination of activities involved in buying, making, and moving a product
Integrates supplier, manufacturer, distributor, and customer, logistics, time
Reduces time, redundant effort, and inventory costs
Network of organizations and business processes
Helps in procurement of materials, transformation of raw materials into finished products
Helps in distribution of the finished products to customers
Includes reverse logistics - returned items flow in the reverse direction from the buyer back to the seller

45. 2.3 Business Processes and Information Systems
Supply Chain Management
Figure 2-14

46. 2.3 How Information Systems Facilitate Supply Chain Management
Decide when, what to produce, store, move
Rapidly communicate orders
Communicate orders, track order status
Check inventory availability, monitor levels
Track shipments
Plan production based on actual demand
Rapidly communicate product design change
Provide product specifications
Share information about defect rates, returns

47. 2.3 Collaborative Commerce
Figure 2-15

48. 2.3 Enterprise System
Figure 2-17

49. 2.4 Global System Configuration
Figure 2-18

50. HOMEWORK Chap.2 # 1 # 2 # 3 # 7 # 8 # 9 # 10: What is CRM?
Introduction to M.I.S.
April 17, 2017
HOMEWORK Chap.2
# # # 3
# # # 9
# 10: What is CRM?
# 11: What is SCM?
# 12
~ THE END ~
Dr. Yuan-Shyi Peter Chiu