1. MIS 301 Information Systems in Organizations
Dave Salisbury
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(web site)

2. Chapter Objectives
Relate functional areas and business processes to the value chain model.
Identify functional management information systems.
Describe the transaction processing system and demonstrate how it is supported by IT.
Describe the support provided by IT and the web to various functional areas.

3. Functional Areas – Value Chain Perspective

4. Functional Areas in a Business

5. Functional Information Systems
Composed of smaller systems: A functional information system consists of several smaller information systems that support specific activities performed in the functional area.
Integrated or independent: The specific IS applications in any functional area can be integrated to form a coherent departmental functional system, they can be integrated across departmental lines to match a business process or be completely independent.
Interfacing: Functional information systems may interface internally with each other to form the organization-wide information system or externally systems outside the organization.
Supportive of different levels: Information systems applications support the three levels of an organization’s activities: operational, managerial, and strategic

6. Functional Information Systems
Data Analysis and statistical forecasting.
Strategic
Data mining ops that support management
Dynamic and what-if features.
Decision Support
Back office administrative tasks & ops.
Clerical documents, schedules, mail, manuals, etc.
Office
Operational level of the company is normally highly structured and predefined.
Business transactions, events and processes. Support of the business and customers.
Transactional

7. Business Application Architecture

8. Customer Relationship Management
Sales
Cross-Sell
Up-Sell
TeleSales
Store Front
and Field
Service
Marketing and
Fulfillment
Customer
Service and
Support
Retention
and Loyalty
Programs
Contact Management

9. Cross-Functional Integrated Systems
Front Office
Applications
CRM Application
Customer Service
Field Service
Sales Order
Product Config
Back Office
ERP Application
Distribution
Manufacturing
Scheduling
Finance
Enterprise
Application
Integration
Enterprise Application
Cluster
Customers
Suppliers
Business Partners

10. TPS – Enterprise Wide Information Systems
Integration of Cross-Functional Information Systems tears down barriers between and among departments & corporate headquarters and reduces duplication of effort.
ERP
SCM

11. Functional Information Systems
Production
Operations
Marketing
Human Resource
Management
Finance
Accounting
Functional
Business
Systems

12. Marketing Information Systems
Interactive
Sales Force
Automation
Customer
Relationship
Management
Sales
Market
Research and
Forecasting
Advertising
and
Promotions
Product

13. Targeted Marketing Context Content Demographic/ Psychographic
Online Behavior
Community

14. Manufacturing Information Systems
Engineering
Systems
CAD
CAE
Computer-
Aided
Process
Planning
Manufacturing
Execution
Shop Floor
Scheduling
Machine Control
Process Control
Robotic Control
Computer Integrated Manufacturing
Resource
Production
Forecasting
Quality Control
Remote
Worker
Supplier
Extranet
Intranet

15. Accounting Information Systems

16. Financial Information Systems
Planning
Cash
Management
Investment
Capital
Budgeting

17. Transaction Processing Information Systems
The transaction processing system
Monitors
Collects
Stores
Processes
Disseminates information
for all routine core business transactions.

18. Transaction Processing Systems
Database
Maintenance
Transaction
Processing
Batch
Online/Realtime
Data
Entry
Document
and Report
Generation
Inquiry 1 2 3 4 5

19. TPS – Orders
Order taken
Order fulfillment
E-Payment
E-Invoice

20. MANAGERIAL ISSUES Integration of functional information systems.
Integration of existing stand-alone functional information systems can be a major problem
Issues with willingness to share information
Priority of transaction processing.
Deals with the core processes of organizations
TPS collects the information needed for most other applications
The customer is king/queen.
Importance of the customer/end-user, whether external or internal
Applications for increasing customers’ satisfaction difficult to justify in a traditional cost-benefit analysis
Empowering customers to enter into a corporate database
Self-service activities
Customers get quick answers to their queries
can save money for a company as well
security and privacy concerns.
Everyone in the organization must be concerned about customers