1. Things of Interest in Chapter 2
Major types of systems (TPS etc.)
Differences based on decision structure
Different systems based on organizational function (human resources etc.)
ERP, CRM and SCM
Demonstration of these (Gateway)

2. CHANGING CONCEPTS OF INFORMATION SYSTEMS
TIME PERIOD
CONCEPTION OF INFORMATION
INFORMATION SYSTEM
PURPOSE
BUREAUCRATIC REQUIREMENT
ELECTRONIC
SPEED ACCOUNTING &
ACCOUNTING MACHINE
PAPER PROCESSING
1960s-1970s
GENERAL PURPOSE SUPPORT
MIS
SPEED GENERAL
REPORTING REQUIREMENTS
1970s-1980s
CUSTOMIZED MANAGEMENT SUPPORT
DSS - ESS
IMPROVE, CUSTOMIZE
DECISION MAKING
STRATEGIC RESOURCE
STRATEGIC SYSTEM
PROMOTE SURVIVAL AND
COMPETITIVE ADVANTAGE
PROSPERITY OF ORGANIZATION
BUSINESS FOUNDATION

3. TYPES OF INFORMATION SYSTEMS
KIND OF SYSTEM GROUPS SERVED
STRATEGIC LEVEL SENIOR MANAGERS
ESS
DSS
MANAGEMENT LEVEL MIDDLE MANAGERS
MIS
OAS / KWS
KNOWLEDGE LEVEL KNOWLEDGE &
DATA WORKERS
OPERATIONAL OPERATIONAL LEVEL MANAGERS
TPS
SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN
MARKETING
RESOURCES

4. MAJOR TYPES OF SYSTEMS EXECUTIVE SUPPORT SYSTEMS (ESS)
DECISION SUPPORT SYSTEMS (DSS)
MANAGEMENT INFORMATION SYSTEMS (MIS)
KNOWLEDGE WORK STATIONS (KWS)
OFFICE AUTOMATION SYSTEMS (OAS)
TRANSACTION PROCESSING SYSTEMS (TPS) *

5. TRANSACTION PROCESSING SYSTEMS (TPS)
OPERATIONAL LEVEL
INPUTS: TRANSACTIONS, EVENTS
PROCESSING: UPDATING
OUTPUTS: DETAILED REPORTS
USERS: OPERATIONS PERSONNEL
EXAMPLE: Payroll cheques *
2.13

6. OFFICE AUTOMATION SYSTEMS (OAS)
TOWARD A “PAPERLESS” OFFICE
INTEGRATED SOFTWARE
ERGONOMIC DESIGN
STANDARDIZED INTERFACE
EXAMPLE: PRESENTATION GRAPHICS
WORDPROCESSING *

7. KNOWLEDGE WORK SYSTEMS (KWS)
KNOWLEDGE LEVEL
INPUTS: DESIGN SPECS
PROCESSING: MODELLING
OUTPUTS: DESIGNS, GRAPHICS
USERS: TECHNICAL STAFF, PROFESSIONALS
EXAMPLE: CAD Workstation *

8. MANAGEMENT INFORMATION SYSTEMS (MIS)
MIDDLE MANAGEMENT LEVEL
INTERNAL ORIENTATION
INPUTS: HIGH VOLUME DATA (TPS)
OUTPUT: REPORT CONTROL ORIENTED
STRUCTURED AND SEMI-STRUCTURED DECISIONS
EG. INVENTORY CONTROL, SALES VOLUME

9. DECISION SUPPORT SYSTEMS (DSS)
UPPER MANAGEMENT LEVEL
INPUTS: TPS, OAS, KWS and MIS
OUTPUTS: DECISION ANALYSIS
SEMI-STRUCTURE PROBLEMS
“WHAT IF”
SOPHISTICATED MODELING TOOLS
EG. PRICE ELASTICITY ANALYSIS *

10. EXECUTIVE SUPPORT SYSTEMS (ESS)
TOP LEVEL MANAGEMENT (STRATEGIC)
DESIGNED TO THE INDIVIDUAL
TIES CEO TO ALL LEVELS
VERY EXPENSIVE TO DESIGN AND KEEP UP
NON STRUCTURED DECISIONS *

11. 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 *

12. TYPICAL TPS APPLICATIONS Human Resources 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 *

13. TYPICAL TPS APPLICATIONS Other Types (e.g., University)
MAJOR FUNCTIONS OF SYSTEMS:
Admissions; Grade Records; Course Records; Alumni
MAJOR APPLICATION SYSTEMS:
Registration System; Student Transcript System; Curriculum Class Control System; Alumni Benefactor System *

14. TPS DATA FOR MIS APPLICATIONS
SALES DATA
ORDER PROCESSING
UNIT PRODUCT COST
ORDER FILE
MATERIALS RESOURCE PLANNING
MIS
REPORTS
PRODUCT CHANGE DATA
PRODUCTION MASTER FILE
GENERAL LEDGER
EXPENSE DATA
MANAGERS
ACCOUNTING FILES
MIS FILES

15. SUPPLY-CHAIN MANAGEMENT
CUSTOMERS
PLANNING & FORECASTING
ORDER PROCESSING
SUPPLIERS
INTRANET
PRODUCTION
PROCUREMENT
ACCOUNTING
LOGISTICS SERVICES
SHIPPING
INVENTORY
DISTRIBUTORS

16. ENTERPRISE RESOURCE PLANNING SYSTEM (ERP)
Manufacturing
Human Resources
Accounting
Finance
Business Processes
Enterprise-wide Business Processes
Vendors
Customers
Sales & Marketing

17. STRATEGY: Value Chain Analysis
Highlights Activities that add Margin of Value to Product or Service
Cash-back
Shoe
Box
(receipts)
Working
Copy
Of Tax
Return
Final
Tax
Return
File
Tax
Return
Organize
Receipts
Summarize
Receipts
Value added
Steps by HR Block
Canadian
Government
Enters Tax Return
Tax Return
Saved in
Database
How Could an Information System
Be of Value to this Chain?

18. Gateway’s IS / Supply Chain2
Order
Placed 4 3
Dock Merge/
Delivery 5 6
CPU Parts
Supplier
Gateway CPU
Assembly
Customer 1 5
Monitor
Supplier
UPS
Warehousing 1
1: Supply chain management EDI system
2: E-commerce www system
3: EDI interface to Gateway assembly factory
4: EDI interface to UPS
5: UPS Global tracking system
6: Customer digital signature receipt

19. GAP Analysis
Suppose we are a moderate sized computer assembler / sales company that would like to enter into the “online” market (like Gateway).
Do a Gap analysis to determine what information systems are needed. Assume that the telephone is presently used for supplier ordering and that customers are “walk in” (off the street).