bis-m1-information systems in business–afoundation

8/9/2019 BIS-M1-Information Systems in BusinessAfoundation

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Business Information

SystemsModule 1

Information Systems in Business


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Business Information System


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3

Information Systems

Why Do People Need Information?

Individuals - Entertainment and enlightenment

Businesses - Decision making, problem solving and control


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4

Why Organizations needInformation Systems

Meeting Global Challenges Capturing opportunities in the Market Place Supporting Corporate Strategy Linking Departments Whose Functions are different Enhancing Worker Productivity Increasing Quality of Goods and Services


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Information Architecture and Information Technology InfrastructureTOWARD THE DIGITAL FIRM


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DATA WORKERSDATA WORKERS

KIND OF SYSTEM GROUPS SERVEDKIND OF SYSTEM GROUPS SERVED

STRATEGIC LEVEL SENIOR MANAGERSSTRATEGIC LEVEL SENIOR MANAGERS(DSS, ESS)(DSS, ESS)

MANAGEMENTMANAGEMENT LEVEL MIDDLE MANAGERSLEVEL MIDDLE MANAGERS(MIS, DSS)(MIS, DSS)

OPERATIONAL OPERATIONAL LEVEL (TPS)OPERATIONAL OPERATIONAL LEVEL (TPS)MANAGERSMANAGERS

KNOWLEDGE LEVELKNOWLEDGE LEVEL KNOWLEDGEKNOWLEDGE &&(KWS)(KWS)

SALES & MANUFACTURING FINANCE ACCOUNTING HUMANSALES & MANUFACTURING FINANCE ACCOUNTING HUMAN

RESOURCESRESOURCESMARKETINGMARKETING

Types of Information System


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History of the role of Information Systems

DataProcessing

ManagementReporting

DecisionSupport

Strategic &End User

ElectronicCommerce

1950-1960 1960-1970 1970-1980 1980-1990 1990-2000

ElectronicDataProcessing- TPS

ManagementInformationSystems

DecisionSupportSystems- Ad hoc

Reports

End User ComputingExec Info SysExpert Systems ElectronicBusiness &

Commerce-InternetworkedE-Business &Commerce


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Major Types Of Systems

Executive Support Systems (ESS)

Decision Support Systems (DSS)

Management Information Systems (MIS)

Knowledge Work Systems (KWS)

Office Automation Systems (OAS)

Transaction Processing Systems (TPS or OLTP)


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TRANSACTION PROCESSINGSYSTEMS

( TPS )


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ystem rc tecture: Transaction Processing

System


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Transaction Processing Systems (TPS)

Operational Level

Inputs: Business Transactions , Events

Processing: Updating

Outputs: Business actions (and Detailed Reports)

Users: Operations Personnel

Examples: Accounts Payable, Payroll, Order Entry


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Typical TPS Applications

Major SystemFunctions:

Sales Management Market Research

Promotion Pricing New Products

Major SystemApplications:

Sales Order InfoSystem

Market ResearchSystem

Pricing System

Sales & MarketingSystems


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Manufacturing & Production Systems

Major SystemFunctions :

Scheduling Purchasing Shipping/Rec

eiving Engineering Operations

Major System Applications:

Production Planning & Control Materials Management (JIT) Manufacturing Resource

Planning Purchase Order

Engineering Systems (CAD,CAM, CAE) Quality Control


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Productionforecasting

Productionscheduling

MaterialRequirementplanning

Capacityplanning

Pro. Costcontrol

Qualitycontrol

Shop floor scheduling

Shop floor control

Machinecontrol

Roboticscontrol

Processcontrol

CAD

CAE

Com. AidedProcessplanning

Productsimulation &

prototyping

Mfg resource planning Mfg execution EngineeringSystems system system

ERP

Computer Integrated Mfg


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Finance & Accounting Systems


Budgeting General Ledger Billing

Cost Accounting

Major SystemApplications :

General Ledger Accounts

Receivable/Payable Budgeting

Funds Management Profit / Loss & Costsystem

Audit System


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Human Resource Systems


Personnel Records

Benefits Compensation Labour Relations

Training Recruitment Job allocation

Major System Applications :

Employee Records System

Payroll System Benefit System HR Planning & Recruitment Job Allocation System

Career Path Systems Personnel Training System


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Knowledge Work Systems (KWS)

Components:

Communication, Collaboration, Storage & RetreivalTechnologies that support KWS

AI, Intelligent Agents, Knowledge DiscoveryTools

Collaborative Computing Tools (Lotus Notes / Domino Server,Documentum)

Knowledge Servers (Hummingbird) Enterprise Knowledge Portals

Electronic Document Mgmt (Docushare, Lotus Notes) Knowledge Harvesting Tools (Knowledge Mail) Search Engines (Google) KM Sites (Lotus Notes)


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Office Automation Systems (OAS)

Toward A Paperless Office * Redesign Of Work Flow Integrated Software Bright, Cheerful Work Space
http://www2.winchester.ac.uk/bm/courses/bs3909/hp.wmvhttp://www2.winchester.ac.uk/bm/courses/bs3909/hp.wmv


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MANAGEMENT INFORMATIONSYSTEMS

( MIS )


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ystem rc tecture:Management Information

System


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MANAGEMENT LEVEL Inputs: High Volume Data Processing: Simple Models Outputs: Summary Reports Users: Middle Managers

Example: ANNUAL BUDGETING


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OPERATIONAL LEVEL Structured Decisions Reporting is Control-oriented Past & Present Data Internal Orientation Lengthy Design Process

Reports now tend to be available on-line, on demand


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MISMIS

MIS FILESMIS FILES

SALESDATA

UNITPRODUCTCOST

PRODUCTCHANGEDATAEXPENSEDATA

MIS REPORTS

MANAGERSMANAGERS

TPSOrder Processing

System

Materials Resource

Planning System

General Ledger System

ORDER FILE

PRODUCTION MASTER FILE

ACCOUNTING FILES

TPS Data for MIS Applications

Source: Laudon & Laudon


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Business Enterprise ApplicationSoftware

Customer RelationshipManagement

HumanResource

Management

Accounting andFinancial

Management

SupplyChainManagement

EnterpriseResourcePlanning

BusinessDecisionSupport


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An OrganizationsMIS

FinancialMIS

MarketingMIS

Human

ResourcesMIS

Etc.

Accounting

MIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions


ExtranetExtranet

InternetInternet

Etc.


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Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS


systems



Internet

orExtranet

Internetor

Extranet

FinancialMIS


Databases of external data

Databases of internal data

FinancialDSS

FinancialES

Financialapplicationsdatabases

Customers,Suppliers


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Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid


TPS


systems



Internet

orExtranet

Internetor

Extranet

ManufacturingMIS




ManufacturingDSS

ManufacturingES

Manufacturingapplicationsdatabases

Customers,Suppliers

MRP reports

Production schedule

CAD output


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Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid


TPS


systemsBusiness

transactions

Figure 9.9

MarketingMIS



ManufacturingDSS

ManufacturingES

Marketingapplicationsdatabases

Pricing report

Total service calls

Customer satisfaction


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DECISION SUPPORT SYSTEMS

( DSS )


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MANAGEMENT LEVEL Inputs: (usually) Low volume data Processing: Interactive Outputs: Decision Analysis Users: Professionals, Staff

Example: CONTRACT COST ANALYSIS


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Flexible, Adaptable, Quick User Controls Inputs/outputs Supports Decision Process No Professional Programming Fairly sophisticated modeling tools

(more sophisticated tools exist, and are based onuse of professionally-programmed DSS packages)


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Decision Support System

Definition: A DSS is an interactive, flexible, and adaptable CBIS

specially developed for supporting the solution of anon-structured management problem for improveddecision making. It utilizes data, it provides easy user interface, and it allows for the decision makers owninsight.


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Characteristics and Capabilities of DSS

Provide support on semi-structured and instructedsituations including human judgment and computerizedinformation.

Supports for various management level Support for individuals and group Have user friendly interface Utilizes the Model for Analysis

Provide access for variety of data sources Decision makers can make better, more consistent

decision in a timely manner.


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Types of DSS AnalyticalModeling

What-if Analysis Sensitivity Analysis Goal Seeking Analysis Optimization Analysis


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Examples of DSS

American airlines: for pricing decisions andchoosing air routes IBM: for determining routing for repair people Texas oil and gas: for evaluating potential drill

sites National Gypsum: corporate planning and

forecasting.


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Executive Support Systems (ESS)

STRATEGIC LEVEL Inputs: Aggregate

Data Processing: Interactive Outputs: Projections Users: Senior

Managers

Example: 5 YEAROPERATING PLAN

TOP LEVELMANAGEMENT

Designed to theIndividual

Ties CEO to All Levels Very Expensive to

Keep Up Extensive Support

Staff


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Executive Information System (EIS)

It is also called Executive support systems Serves Strategic level of the Organization Support non-routine decision making Use graphic software to create visual information

display of key summary information Use data from sources within and outside the

organization Have drill-down capability to reveal what is

behind summary information.


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Expert System

It is a knowledge based information system adds aknowledge about the specific, complex application areato act as an expert consultant to end users.

Expert systems provide answers to questions in aspecific problem area by making human like interfacesabout knowledge contained in a specialized knowledgebase.

Applications Medicine, Engineering, diagnose Illness,

Recommended Repairs, Do financial Planning.s


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BIS application software

MS Office (Word, Excel, Power Point, Visio, Access) Accounting Packages: Tally, SAPM, Metastock Marketing Packages: SPSS, SYSSTA, MINITAB Production Management Software: POM, TORA Human Resource Management Software: PeopleSoft Database Management software: Oracle, SQL Server

Business Intelligence: SAS, Informatica, Cognus,Business Objects, Data Stage

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