1. INFORMATION SYSTEMS IN THE ENTERPRISE
CHAPTER-2
INFORMATION SYSTEMS IN THE ENTERPRISE

2. Management Information Systems 8/e
Chapter 2 Information Systems in the Enterprise
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Types of Information Systems
Figure 2-1

3. Management Information Systems 8/e
Chapter 2 Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Figure 2-2

4. DIFFERENT TYPES OF INFORMATION SYSTEMS
1. TRANSACTION PROCESSING SYSTEM
SERVE THE OPERATIONAL LEVEL OF ORGANIZATION
MONITORS AND SUPPORTS THE ORGANIZATION’S BASIC BUSINESS TRANSACTIONS

5. DIFFERENT TYPES OF INFORMATION SYSTEMS
TRANSACTION PROCESSING SYSTEM
PROVIDES THE BACKBONE FOR MANY APPLICATIONS INVOLVING THE OTHER SUPPORT SYSTEMS
IS CONSIDERED CRITICAL TO THE SUCCESS OF ANY ORGANIZATION SINCE IT SUPPORTS THE MISSION-CENTRAL OPERATIONS

6. DIFFERENT TYPES OF INFORMATION SYSTEMS
2. KNOWLEDGE WORK SYSTEM
ENHANCES THE PRODUCTIVITY OF KNOWLEDGE WORKERS
3. OFFICE AUTOMATION SYSTEM (OAS)
ENHANCES THE PRODUCTIVITY OF DATA
WORKERS

7. DIFFERENT TYPES OF INFORMATION SYSTEMS
4. MANAGEMENT INFORMATION SYSTEM
PROVIDES MANAGEMENT WITH PERIODIC REPORTS AND ACCESS TO THE ORGANIZATION’S CURRENT AND PAST PERFORMANCE
MIS REPORTS ARE GENERATED FROM DATA FROM TPS
ARE NOT HIGHLY ANALYTICAL
ARE RELATIVELY INFLEXIBLE

8. DIFFERENT TYPES OF INFORMATION SYSTEMS
5. DECISION SUPPORT SYSTEM
PROVIDE COMPUTERIZED SUPPORT TO COMPLEX NONROUTINE AND PARTIALLY STRUCTURED DECISIONS
HAVE MORE ANALYTICAL MODELS AND DATA ANALYSIS CAPABILITIES THAN MIS 
DRAW INFORMATION FROM EXTERNAL AND INTERNAL SOURCES

9. DIFFERENT TYPES OF INFORMATION SYSTEMS
6. EXECUTIVE SUPPORT SYSTEM
SUPPORTS THE STRATEGIC LEVEL OF ORGANIZATION
HAS LIMITED ANALYTICAL CAPABILITIES BUT USES SOPHISTICATED MODELING TOOLS
USES INTERNAL AND EXTERNAL INFORMATION

10. CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
USE OF INFORMATION SYSTEMS FOR COORDINATING ALL THE BUSINESS PROCESSES RELATED TO DEALING
WITH  CUSTOMERS

11. SUPPLY CHAIN MANAGEMENT
INTERRELATED NETWORK OF FACILITIES AND DISTRIBUTION METHODS THAT OBTAIN MATERIALS, TRANSFORMS MATERIALS INTO FINISHED GOODS,
AND DELIVER THE FINISHED GOODS
TO CUSTOMERS

12. SUPPLY CHAIN MANAGEMENT ENTERPRISE APPLICATIONS
Limitations:
Inefficiencies can waste as much as 25% of company’s operating costs
Bullwhip Effect: Information about the demand for the product gets distorted as it passes from one entity to next

13. Management Information Systems 8/e
Chapter 2 Information Systems in the Enterprise
ENTERPRISE APPLICATIONS
Supply Chain Management
Figure 2-15

14. ENTERPRISE APPLICATIONS
Supply chain planning system: Enables firm to generate forecasts for a product and to develop sourcing and a manufacturing plan for the product
Supply chain execution system: Manages flow of products through distribution centers and warehouses

15. Collaborative Commerce
Uses digital technologies to enable multiple organizations to collaboratively design, develop, build, move, and manage products
Increases efficiencies in reducing product design life cycles, minimizing excess inventory, forecasting demand, and keeping partners and customers informed

16. Management Information Systems 8/e
Chapter 2 Information Systems in the Enterprise
ENTERPRISE APPLICATIONS
Collaborative Commerce
Figure 2-16

17. EXTENDED ENTERPRISES OR INDUSTRIAL NETWORKS
SYSTEMS THAT LINK ENTERPRISE SYSTEMS OF MANY FIRMS IN THE INDUSTRY
TWO TYPES OF INDUSTRIAL NETWORKS
VERTICAL INDUSTRIAL NETWORKS
HORIZONTAL INDUSTRIAL NETWORKS

18. ENTERPRISE RESOURCE PLANNING (ERP)
AN INTEGRATED INFORMATION SYSTEM, WHICH FACILITATES THE EXCHANGE OF DATA AMONG CORPORATE DIVISIONS THROUGH UNIFICATION OF KEY BUSINESS PROCESSES

19. ADVANTAGES OF ERP
GREATER CONTROL AND BETTER DECISION MAKING FOR THE MANAGEMENT
IMPROVED CUSTOMER SERVICE AND ORDER PROCESSING
UNIFICATION OF BUSINESS FUNCTIONS AND PROCESSES
INTEGRATION OF DISPARATE TECHNOLOGIES

20. DISADVANTAGES OF ERP DIFFICULT TO IMPLEMENT
HIGH UP-FRONT COSTS FOR LONG-TERM BENEFITS
DIFFICULT TO CHANGE
MAY LACK STRATEGIC BENEFITS FOR THE FIRM

21. Knowledge Management Systems
Discovering and codifying knowledge
Creating knowledge
Sharing knowledge
Distributing knowledge