1. CHAPTER 2: INFORMATION SYSTEMS IN THE ENTERPRISE

2. Different Kinds of Systems Operational-level –Keep track of and monitor flow of transactions Knowledge-level –Support knowledge and data workers Management-level –Support middle-level management decision-making Strategic-level –Support long-range planning of senior management

3. Six Major Types of Systems ESS: executive support systems MIS: management information systems DSS: decision support systems KWS: knowledge work systems OAS: office automation systems TPS: transactional processing systems

4. Transaction Processing Systems (TPS) Basic business system Serves operational level Records daily, routine activities E.g. sales order entry, hotel reservation, payroll

5. Knowledge Work Systems (KWS) Help knowledge workers (e.g. scientists, doctors, engineers) Ensure that new knowledge is integrated into the organization CAD/CAE Knowledge Databases –Lexis (legal DB) –PDR (Physician Desk Reference) Online

6. Office Automation Systems (OAS) Help data workers (e.g. secretaries, accounting clerks) Coordinate workers & communicate with customers, suppliers and others Handle and manage documents E.g. word processing, document imaging & desktop publishing systems

7. Management Information Systems (MIS) Serve management level Provide scheduled, summary or exception reports Use data collected by TPS Oriented to internal, not external events of organization

8. Decision Support Systems (DSS) Like MIS, DSS also support management level of organization Support semi-structured & unstructured decision-making Use external as well as internal data Combine data and analytical models E.g. Group DSS (GDSS), & Expert Systems

9. Executive Support Systems Serve strategic level of the organization Support non-routine decision-making Create a generalized computing & communications environment Use advanced graphics software to create output for executives Use data from external & internal sources

10. Relationship of Systems

11. IS from a Functional Perspective Sales & Marketing Systems Manufacturing & Production Systems Finance & Accounting Systems Human Resources Systems

12. Integrating Business Functions & Processes Achieve business processes efficiencies with information systems Automate processes Redesign processes Cross Functional Business Processes Customer Relationship Management (CRM) Supply Chain Management Enterprise Systems

13. Customer Relationship Management (CRM) Coordinates all processes that involves customers Maximizes value of firm to customer Maximizes value of customer to firm Usually cross-IS type (TPS, MIS etc.) –Combines data from multiple sources

14. Supply Chain Management Coordinate all activities in the supply chain –Purchase raw mtls, manufacture product, inventory, logistics (distribution) Involves external suppliers and customers Minimize costs, inventory, and cycle time Maximize profit Cross-IS type (TPS, MIS etc) –Internet based (intranets, extranets) –EDI

15. Enterprise Systems (ERP) Integrate key business processes across functional areas More efficient operations Org info readily and easily available to all that need it Cross-IS type

16. Challenges of Enterprise Systems Daunting Implementation High upfront costs and future benefits Inflexibility

17. Extended Enterprises & Industrial Networks Vertical Industrial Networks –Link firms with their suppliers Horizontal Industrial Networks –Link firms across an entire industry