1. E-Business & Information Systems in the Enterprise
MIS 205

2. Management Information Systems
E-Business & Information Systems in the Enterprise
OBJECTIVES
Evaluate the role played by the major types of systems in a business and their relationship to each other
Explain how enterprise applications promote business process integration and improve organizational performance
Assess the challenges posed by information systems in the enterprise and management solutions
MIS 205 E-Business & Information Systems

3. The Four Major Types of Information Systems
Management Information Systems
E-Business & Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
The Four Major Types of Information Systems
Executive Support Systems (ESS)
Decision-Support Systems (DSS)
Management Information Systems (MIS)
Transaction Processing Systems (TPS)
MIS 205 E-Business & Information Systems

4. Major Types of Information Systems
Management Information Systems
E-Business & Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Major Types of Information Systems
MIS 205 E-Business & Information Systems

5. Transaction Processing Systems (TPS)
Management Information Systems
E-Business & Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Transaction Processing Systems (TPS)
Basic business systems that serve the operational level
A computerized system that performs and records the daily routine transactions necessary to the conduct of the business
Support day-to-day/routine operation by maintaining detailed records e.g. Sales, purchase, deposit, withdrawal, refunds, payment, inventory control, etc.
MIS 205 E-Business & Information Systems

6. A Symbolic Representation for a Payroll TPS
Management Information Systems
E-Business & Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
A Symbolic Representation for a Payroll TPS
MIS 205 E-Business & Information Systems

7. Typical Applications of TPS
Management Information Systems
E-Business & Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Typical Applications of TPS
MIS 205 E-Business & Information Systems

8. Management Information Systems (MIS)
E-Business & Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Management Information Systems (MIS)
Management level
Inputs: High volume transaction level data (Mostly internal)
Processing: Simple models. Data is accumulated and totaled.
Outputs: Summary reports & exception reports. Scheduled reports (reports generated periodically- yearly , monthly or weekly usually not day-to-day)
Users: Middle managers
Example: Annual budgeting
MIS 205 E-Business & Information Systems

9. Management Information Systems (MIS) (cont.)
E-Business & Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Management Information Systems (MIS) (cont.)
Fig: Three TPS supply summarized transaction data to the MIS reporting system at the end of the time period
MIS 205 E-Business & Information Systems

10. Management Information Systems (MIS) (cont.)
E-Business & Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Management Information Systems (MIS) (cont.)
A sample MIS report
Summerized annual sales data
MIS 205 E-Business & Information Systems

11. Management Information Systems (MIS) – (cont.)
E-Business & Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Management Information Systems (MIS) – (cont.)
Software
May be written using business programming languages, eg, ABAP (Native language of SAP)
May use SQL
Can be a report writer
Client Server software allows clients to get data from the server and do computations
MIS 205 E-Business & Information Systems

12. Decision-Support Systems (DSS)
Management Information Systems
E-Business & Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Decision-Support Systems (DSS)
Provide information & Decision Support techniques to confront specific problem / opportunity
Management level
Inputs: Internal and External data, User friendly interface
Processing: Interactive
Can change assumptions e.g. “What-if” oriented
More analytical power than other systems, such as statistical analysis
May involve one or more models to analyze data
Outputs: Decision analysis.
Users: Professionals, staff
Example: Contract cost analysis
MIS 205 E-Business & Information Systems

13. Software : Decision-Support Systems (DSS) (cont.)
Management Information Systems
E-Business & Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Decision-Support Systems (DSS) (cont.)
Software :
A DSS is usually developed using general software that is adapted for a specific decision.
Simple example is spreadsheet
May be statistical packages like SAS, SPSS
May do data mining: searching for patterns in large amounts of data to determine business practices
Group decision support systems (GDSS)
Geographic information systems (GIS)
MIS 205 E-Business & Information Systems

14. Decision-Support Systems (DSS) (cont.)
Management Information Systems
E-Business & Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Decision-Support Systems (DSS) (cont.)
Voyage-estimating decision-support system
This DSS system is used by managers who must develop bids on shipping contracts
MIS 205 E-Business & Information Systems

15. The Difference between MIS and DSS
Management Information Systems
E-Business & Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
The Difference between MIS and DSS
MIS:
Primarily address structured problems
Provides typically fixed, scheduled reports based on routine flows of data and assists in the general control of the business

16. The Difference between MIS and DSS
Management Information Systems
E-Business & Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
The Difference between MIS and DSS
DSS:
Support semistructured and unstructured problems
Greater emphasis on models, assumptions, ad-hoc queries, display graphics
Emphasizes change, flexibility, and a rapid response

17. EXECUTIVE SUPPORT SYSTEMS (ESS):
Management Information Systems
E-Business & Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
EXECUTIVE SUPPORT SYSTEMS (ESS):
Inputs: Aggregated data
Processing: Interactive
Outputs: Projections
Users: Senior managers
Example: 5 year operating plan
MIS 205 E-Business & Information Systems

18. Model of a Typical Executive Support System
Management Information Systems
E-Business & Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Model of a Typical Executive Support System
This system pulls data from diverse sources and makes them available to executives in an easy-to-use form
MIS 205 E-Business & Information Systems

19. EXECUTIVE SUPPORT SYSTEMS (ESS) (Continued)
Management Information Systems
E-Business & Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
EXECUTIVE SUPPORT SYSTEMS (ESS) (Continued)
Top Level Management
Designed to the individual senior manager
Ties CEO to all levels
Very expensive to keep up
Extensive support staff
MIS 205 E-Business & Information Systems

20. Relationship of Systems to One Another
Management Information Systems
E-Business & Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Relationship of Systems to One Another
Interrelationships among systems
MIS 205 E-Business & Information Systems

21. Sales and Marketing Systems
Management Information Systems
E-Business & Information Systems in the Enterprise
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
MIS 205 E-Business & Information Systems

22. Sales and Marketing Systems
Management Information Systems
E-Business & Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Sales and Marketing Systems
Example of a Sales Information System

23. Sales and Marketing Systems
Management Information Systems
E-Business & Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Sales and Marketing Systems
SYSTEM
DESCRIPTION
ORGANIZATIONAL LEVEL
Order processing
Enter, process, and track orders
Operational
Pricing analysis
Determine prices for products and services
Management
Sales trend forecasting
Prepare 5-year sales forecasts
Strategic
MIS 205 E-Business & Information Systems

24. Manufacturing and Production Systems
Management Information Systems
E-Business & Information Systems in the Enterprise
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
MIS 205 E-Business & Information Systems

25. Manufacturing and Production Systems
Management Information Systems
E-Business & Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Manufacturing and Production Systems
Example of data flow in a Manufacturing & Production system

26. Manufacturing and Production Systems
Management Information Systems
E-Business & Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Manufacturing and Production Systems
SYSTEM
DESCRIPTION
ORGANIZATIONAL LEVEL
Machine control
Control the actions of machines and equipment
Operational
Production planning
Decide when and how many products should be produced
Management
Facilities location
Decide where to locate new production facilities
Strategic
MIS 205 E-Business & Information Systems

27. Overview of an Inventory System
Management Information Systems
E-Business & Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Overview of an Inventory System
MIS 205 E-Business & Information Systems

28. Finance and Accounting Systems
Management Information Systems
E-Business & Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Finance 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
MIS 205 E-Business & Information Systems

29. Finance and Accounting Systems
Management Information Systems
E-Business & Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Finance and Accounting Systems
An Accounts Receivable System

30. Finance & Accounting Systems (Continued)
Management Information Systems
E-Business & Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Finance & Accounting Systems (Continued)
SYSTEM
DESCRIPTION
ORGANIZATION-AL LEVEL
Accounts receivable
Tracks money owed the firm
Operational
Budgeting
Prepares short-term budgets
Management
Profit planning
Plans long-term profits
Strategic
MIS 205 E-Business & Information Systems

31. Human Resource Systems
Management Information Systems
E-Business & Information Systems in the Enterprise
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
MIS 205 E-Business & Information Systems

32. Management Information Systems
E-Business & Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Human Resource Systems (Continued) An Employee Recordkeeping System
MIS 205 E-Business & Information Systems

33. Human Resource Systems (Continued)
Management Information Systems
E-Business & Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Human Resource Systems (Continued)
SYSTEM
DESCRIPTION
ORGANIZATIONAL LEVEL
Training and development
Tracks employee training, skills, and performance appraisals
Operational
Compensation analysis
Monitors the range and distribution of employee wages, salaries, and benefits
Management
Human resources planning
Plans the long-term labor force needs of the organization
Strategic
MIS 205 E-Business & Information Systems

34. Relationship of Systems to One Another
Management Information Systems
E-Business & Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Relationship of Systems to One Another
In contemporary digital firms, the different types of systems are closely linked to one another. This is the ideal. In traditional firms these systems tend to be isolated from one another, and information does not flow seamlessly from one end of the organization to the other. Efficiency and business value tend to suffer greatly in these traditional firms
MIS 205 E-Business & Information Systems

35. Business Processes and Information Systems
Management Information Systems
E-Business & Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications
Business Processes and Information Systems
Cross-Functional Business Processes:
Transcend boundary between sales, marketing, manufacturing, and research and development
Group employees from different functional specialties to a complete piece of work
Example: Order Fulfillment Process
MIS 205 E-Business & Information Systems

36. The Order Fulfillment Process
Management Information Systems
E-Business & Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications
The Order Fulfillment Process
MIS 205 E-Business & Information Systems

37. What Are Enterprise Systems?
Management Information Systems
E-Business & Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications
What Are Enterprise Systems?
MIS 205 E-Business & Information Systems

38. Management Information Systems
E-Business & Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications
Systems for Enterprise-Wide Process Integration
Enterprise applications:
Designed to support organization-wide process coordination and integration
Usually Consists of :
Enterprise systems / Enterprise Resource Planning Systems (ERP)
Supply chain management systems (SCM)
Customer relationship management systems (CRM)
Knowledge management systems (KM)
MIS 205 E-Business & Information Systems

39. Example of an Enterprise Application: mySAP Business Suite
Management Information Systems
E-Business & Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications
Example of an Enterprise Application: mySAP Business Suite
MIS 205 E-Business & Information Systems

40. SAP is world’s largest business software vendor based in Germany
Management Information Systems
E-Business & Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications
Example of an Enterprise Application: mySAP Business Suite
SAP Enterprise Suite (mySAP Business Suite) consists of the following components:
mySAP ERP (Finance, HR, Controlling, Analytics, corporate services etc)
mySAP SCM (Supply Chain Management)
mySAP CRM (Customer Relationship Management)
mySAP SRM (Supplier Relationship Management)
mySAP PLM (Product Lifecycle Management)
SAP is world’s largest business software vendor based in Germany

41. Enterprise (ERP) Systems
Management Information Systems
E-Business & Information Systems in the Enterprise
ENTERPRISE (ERP) SYSTEMS
Enterprise (ERP) Systems
Enterprise systems, also known as enterprise resource planning (ERP) systems, provide a single information system for organization-wide coordination and integration of key business processes.
Information that was previously fragmented in different systems can now seamlessly flow throughout the firm so that it can be shared by business processes in manufacturing, accounting, human resources, and other areas.
MIS 205 E-Business & Information Systems

42. Enterprise (ERP) Application Architecture
Management Information Systems
E-Business & Information Systems in the Enterprise
ENTERPRISE (ERP) SYSTEMS
Enterprise (ERP) Application Architecture
MIS 205 E-Business & Information Systems

43. Traditional “Silo” View of Information Systems
Management Information Systems
E-Business & Information Systems in the Enterprise
ENTERPRISE (ERP) SYSTEMS
Traditional “Silo” View of Information Systems
Within the business:
There are functions, each having its uses of information systems
Outside the organization’s boundaries:
There are customers and vendors
Functions tend to work in isolation
MIS 205 E-Business & Information Systems

44. Traditional View of Systems
Management Information Systems
E-Business & Information Systems in the Enterprise
ENTERPRISE (ERP) SYSTEMS
Traditional View of Systems
MIS 205 E-Business & Information Systems

45. How Enterprise (ERP) Systems Work
Management Information Systems
E-Business & Information Systems in the Enterprise
ENTERPRISE (ERP) SYSTEMS
How Enterprise (ERP) Systems Work
Enterprise Systems:
Enterprise Resource Planning (ERP) systems
Interdependent software modules with a common central database that support basic internal business processes for finance and accounting, human resources, manufacturing and production, and sales and marketing
Enables data to be used by multiple functions and business processes for precise organizational coordination and control.
MIS 205 E-Business & Information Systems

46. Management Information Systems
E-Business & Information Systems in the Enterprise
ENTERPRISE (ERP) SYSTEMS
MIS 205 E-Business & Information Systems

47. Benefits of Enterprise Systems
Management Information Systems
E-Business & Information Systems in the Enterprise
ENTERPRISE (ERP) SYSTEMS
Benefits of Enterprise Systems
A more uniform organization: create a more disciplined organizational culture.
More efficient operations and customer-driven business processes: By integrating discrete business processes in sales, productions, finance, and logistic.
Firm wide Information for improved decision making: The data have common, standardized definition and formats that are accepted by the entire organization.
Major enterprises software vendors include SAP, PeopleSoft (ORACLE)
MIS 205 E-Business & Information Systems

48. Network of organizations and business processes
Management Information Systems
E-Business & Information Systems in the Enterprise
SUPPLY CHAIN MANAGEMENT SYSTEMS
Supply Chain
Network of organizations and business processes
Helps in procurement of materials, transformation of raw materials into intermediate and finished products and
Helps in distribution of the finished products to customers
Materials, Payments, and information flow through the supply chain in both directions (more detail in Ch-9)
MIS 205 E-Business & Information Systems

49. Supply Chain Management (SCM) Systems
Management Information Systems
E-Business & Information Systems in the Enterprise
SUPPLY CHAIN MANAGEMENT SYSTEMS
Supply Chain Management (SCM) Systems
Coordination of business processes to speed information, product, and fund flows up and down a supply chain to reduce time, redundant effort, and inventory costs (More detail in Ch-9)
MIS 205 E-Business & Information Systems

50. Supply Chain Management (SCM) Process
Management Information Systems
E-Business & Information Systems in the Enterprise
SUPPLY CHAIN MANAGEMENT SYSTEMS
Supply Chain Management (SCM) Process
MIS 205 E-Business & Information Systems

51. Customer Relationship Management (CRM)
Management Information Systems
E-Business & Information Systems in the Enterprise
CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS
Customer Relationship Management (CRM)
Business and technology discipline for managing customer relationships to optimize revenue, profitability, customer satisfaction, and customer retention
Manages all ways used by firms to deal with existing and potential new customers
MIS 205 E-Business & Information Systems

52. Customer Relationship Management (CRM) Systems
Management Information Systems
E-Business & Information Systems in the Enterprise
CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS
Customer Relationship Management (CRM) Systems
Capture and integrate customer data from all over the organization
Consolidate and analyze the data
Distribute results to various systems and customer touch points across the enterprise
MIS 205 E-Business & Information Systems

53. Customer Relationship Management (CRM) Systems
Management Information Systems
E-Business & Information Systems in the Enterprise
CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS
Customer Relationship Management (CRM) Systems
MIS 205 E-Business & Information Systems

54. Knowledge Management Systems
Management Information Systems
E-Business & Information Systems in the Enterprise
Knowledge Management Systems
Knowledge Management Systems
Collects relevant knowledge and make it available wherever and whenever it is needed
Support business processes and management decisions
Also link the firm to external sources of knowledge
Support processes for acquiring, storing, distributing, and applying knowledge
MIS 205 E-Business & Information Systems

55. Knowledge Management Systems
Management Information Systems
E-Business & Information Systems in the Enterprise
Knowledge Management Systems
Knowledge Management Systems
MIS 205 E-Business & Information Systems

56. Management Opportunities:
Management Information Systems
E-Business & Information Systems in the Enterprise
MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS TO ENTERPRISE-WIDE INTEGRATION
Management Opportunities:
There are extraordinary opportunities to use information systems to achieve business value, and increase profitability
MIS 205 E-Business & Information Systems

57. Management Challenges:
Management Information Systems
E-Business & Information Systems in the Enterprise
MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS TO ENTERPRISE-WIDE INTEGRATION
Management Challenges:
Integration and the whole firm view: Given the different interests and perspectives within a firm, it is difficult to achieve consensus about the need for the "whole firm" viewpoint.
Management and employee training: Training a large number of employees on many systems in a large organization involves commensurately large investments.
Accounting for the cost of systems and managing demands for systems: Given the large number of different types of systems in a firm, and the large number of people involved with using them, it is a complex task to understand which systems are truly necessary and productive with high returns on investment
MIS 205 E-Business & Information Systems

58. Management Information Systems
E-Business & Information Systems in the Enterprise
MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS TO ENTERPRISE-WIDE INTEGRATION
Solution Guidelines:
Inventory the firm’s information systems: Develop a list of firm-wide information requirements to give a 360-degree view of the most important information needs of the firm.
Employee and management education: Ensure that you understand how much training is required.
Account for the costs and benefits: Develop an accounting system for information services firm- wide.
MIS 205 E-Business & Information Systems