mis lecture 2
TRANSCRIPT
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2.1
Management Information SystemsManagement Information SystemsChapter 2: Global E-Business: How Businesses use Information SystemsChapter 2: Global E-Business: How Businesses use Information Systems
Business processes:Business processes:• Work is organized, coordinated, and focused to produce a Work is organized, coordinated, and focused to produce a
valuable product or servicevaluable product or service• Concrete work flows of material, information, and Concrete work flows of material, information, and
knowledge—sets of activitiesknowledge—sets of activities• Unique ways to coordinate work, information, and Unique ways to coordinate work, information, and
knowledgeknowledge• Ways in which management chooses to coordinate work Ways in which management chooses to coordinate work • Information systems help organizations achieve great Information systems help organizations achieve great
efficiencies by automating parts of processesefficiencies by automating parts of processes• IS also contributes to completely rethinking processes. IS also contributes to completely rethinking processes. • Business processes typically span several different Business processes typically span several different
functional areas.functional areas.
2.1 BUSINESS PROCESSES AND INFORMATION SYSTEMS
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Management Information SystemsManagement Information SystemsChapter 2: Global E-Business: How Businesses use Information SystemsChapter 2: Global E-Business: How Businesses use Information Systems
Table 2.1: Examples of Business ProcessesManufacturing and production: Assembling product, checking
quality, producing bills of materials
Sales and marketing: Identifying customers, creating customer awareness, selling
Finance & accounting: Paying creditors, creating financial statements, managing cash accounts
Human resources: Hiring employees, evaluating performance, enrolling employees in benefits plans
2.1 BUSINESS PROCESSES AND INFORMATION SYSTEMS
Coordination across department: • 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
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Management Information SystemsManagement Information SystemsChapter 2: Global E-Business: How Businesses use Information SystemsChapter 2: Global E-Business: How Businesses use Information Systems
The Order Fulfillment Process
Figure 2-1
Coordination across departmentCoordination across department
2.1 BUSINESS PROCESSES AND INFORMATION SYSTEMS
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Management Information SystemsManagement Information SystemsChapter 2: Global E-Business: How Businesses use Information SystemsChapter 2: Global E-Business: How Businesses use Information Systems
How Information Technology enhances business processes:
• Efficiency: increasing the efficiency of costing processes• Transforming: enabling entirely new processes that are
capable of transforming the business.
Automate many steps in business processes New technology can actually change the flow of
information
Amazon has become the largest book retailer in the United States on the strength of its huge online inventory and recommender system. It has no rivals in size and scope.
2.1 BUSINESS PROCESSES AND INFORMATION SYSTEMS
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Management Information SystemsManagement Information SystemsChapter 2: Global E-Business: How Businesses use Information SystemsChapter 2: Global E-Business: How Businesses use Information Systems
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
2.2 TYPES OF BUSINESS INFORMATION SYSTEMS
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
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Management Information SystemsManagement Information SystemsChapter 2: Global E-Business: How Businesses use Information SystemsChapter 2: Global E-Business: How Businesses use Information Systems
Financing 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
Human Resource Systems Major functions of systems: Personnel records, benefits,
payment, labor relations, training
Major application systems: Payroll, employee records, benefit systems, career path systems, personnel training systems
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE 2.2 TYPES OF BUSINESS INFORMATION SYSTEMS
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Management Information SystemsManagement Information SystemsChapter 2: Global E-Business: How Businesses use Information SystemsChapter 2: Global E-Business: How Businesses use Information Systems
Human Resource Systems: An Employee Recordkeeping System
Figure 2-11
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE 2.2 TYPES OF BUSINESS INFORMATION SYSTEMS
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Management Information SystemsManagement Information SystemsChapter 2: Global E-Business: How Businesses use Information SystemsChapter 2: Global E-Business: How Businesses use Information Systems
• Transaction Processing Systems (TPS)
• Management Information Systems (MIS)
• Decision-Support Systems (DSS) • Executive Support Systems (ESS)
SYSTEMS FROM A CONSITUENCY PERSPECTIVE 2.2 TYPES OF BUSINESS INFORMATION SYSTEMS
Figure 2-0
The Four Major Types of Information Systems
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Management Information SystemsManagement Information SystemsChapter 2: Global E-Business: How Businesses use Information SystemsChapter 2: Global E-Business: How Businesses use Information Systems
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
SYSTEMS FROM A CONSITUENCY PERSPECTIVE
Management Information Systems (MIS)
Management level• Inputs: High volume transaction level data • Processing: Simple models• Outputs: Summary reports• Users: Middle managers Example: Annual budgeting
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Management Information SystemsManagement Information SystemsChapter 2: Global E-Business: How Businesses use Information SystemsChapter 2: Global E-Business: How Businesses use Information Systems
Management Information Systems (MIS) (continued)
Figure 2-6
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
SYSTEMS FROM A CONSITUENCY PERSPECTIVE
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Management Information SystemsManagement Information SystemsChapter 2: Global E-Business: How Businesses use Information SystemsChapter 2: Global E-Business: How Businesses use Information Systems
Decision-Support Systems (DSS) Management level• Inputs: Transaction level data • Processing: Interactive• Outputs: Decision analysis• Users: Professionals, staffExample: Contract cost analysis
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
SYSTEMS FROM A CONSITUENCY PERSPECTIVE
EXECUTIVE SUPPORT SYSTEMS (ESS): • Inputs: Aggregate data
• Processing: Interactive
• Outputs: Projections
• Users: Senior managers
Example: 5 year operating plan
• Top Level Management
• Designed to the individual
senior manager
• Ties CEO to all levels
• Very expensive to keep up
• Extensive support staff
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Management Information SystemsManagement Information SystemsChapter 2: Global E-Business: How Businesses use Information SystemsChapter 2: Global E-Business: How Businesses use Information Systems
Decision-Support Systems (DSS) (Continued)Voyage-estimating decision-support system
Figure 2-8
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
SYSTEMS FROM A CONSITUENCY PERSPECTIVE
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Management Information SystemsManagement Information SystemsChapter 2: Global E-Business: How Businesses use Information SystemsChapter 2: Global E-Business: How Businesses use Information Systems
Relationship of Systems to One Another Interrelationships among systems
Figure 2-10
SYSTEMS FROM A CONSITUENCY PERSPECTIVE
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
In modern-day 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
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Management Information SystemsManagement Information SystemsChapter 2: Global E-Business: How Businesses use Information SystemsChapter 2: Global E-Business: How Businesses use Information Systems
Enterprise Application Architecture
Figure 2-11
2.3: Systems that Span the Enterprise
Designed to support organization-wide process coordination and integration
Consist of Consist of : • Enterprise systems • Supply chain management
systems • Customer relationship
management systems• Knowledge management
systems
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Management Information SystemsManagement Information SystemsChapter 2: Global E-Business: How Businesses use Information SystemsChapter 2: Global E-Business: How Businesses use Information Systems
Enterprise Systems
Figure 2-12
• 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 seamlessly flow throughout the firm so that it can be shared by business processes in manufacturing, accounting, human resources, and other areas.
2.3: Systems that Span the Enterprise
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Management Information SystemsManagement Information SystemsChapter 2: Global E-Business: How Businesses use Information SystemsChapter 2: Global E-Business: How Businesses use Information Systems
Supply Chain Management (SCM) • Close linkage and coordination of activities involved in
buying, making, and moving a product • Integrates supplier, manufacturer, distributor, and customer
logistics time• Reduces time, unnecessary effort, and inventory costs• Network of organizations and business processes• Helps in procurement of materials, transformation of raw
materials into intermediate and finished products• Helps in distribution of the finished products to customers• Includes reverse logistics - returned items flow in the reverse
direction from the buyer back to the seller
2.3: Systems that Span the Enterprise
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Management Information SystemsManagement Information SystemsChapter 2: Global E-Business: How Businesses use Information SystemsChapter 2: Global E-Business: How Businesses use Information Systems
How Information Systems facilitate Supply Chain Management :
Information from Supply Chain Management Systems helps firms:
• Decide when and what to produce, store, and move
• Rapidly communicate orders
• Track the status of orders
• Check inventory availability and monitor inventory levels
• Reduce inventory, transportation, and warehousing costs
• Track shipments
• Plan production based on actual customer demand
• Rapidly communicate changes in product design
2.3: Systems that Span the Enterprise
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Management Information SystemsManagement Information SystemsChapter 2: Global E-Business: How Businesses use Information SystemsChapter 2: Global E-Business: How Businesses use Information Systems
Customer Relationship Management (CRM)
• Manages all ways used by firms to deal with existing and potential new customers
• Business and technology control• Uses information system to coordinate entire business
processes of a firm• Provides end- to- end customer care• Provides a unified view of customer across the company• Consolidates customer data from multiple sources and
provides analytical tools for answering questions
2.3: Systems that Span the Enterprise
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Management Information SystemsManagement Information SystemsChapter 2: Global E-Business: How Businesses use Information SystemsChapter 2: Global E-Business: How Businesses use Information 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
2.3: Systems that Span the Enterprise
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Management Information SystemsManagement Information SystemsChapter 2: Global E-Business: How Businesses use Information SystemsChapter 2: Global E-Business: How Businesses use Information Systems
Electronic-Business (e-business): the use of digital technology and the Internet to execute the major business processes in the enterprise.
Electronic-Commerce (e-commerce): is the part of e-business that deals with the buying and selling of goods and services over the internet.
Electronic-Government (E-Government): the application of the internet and networking technologies to digitally enable government and publicsector agencies’ relationships with citizens,businesses, and other arms of government.
2.3: Systems that Span the Enterprise
e-business/ e-commerce/ E-Government
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Management Information SystemsManagement Information SystemsChapter 2: Global E-Business: How Businesses use Information SystemsChapter 2: Global E-Business: How Businesses use Information Systems
Information Technology ServicesInformation Technology Services
Figure 2-0
2.4: The information Systems function in Business
• Formal organizational unit
• Responsible for information systems in the organization
Information systems Information systems
department:department:
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Management Information SystemsManagement Information SystemsChapter 2: Global E-Business: How Businesses use Information SystemsChapter 2: Global E-Business: How Businesses use Information Systems
Includes Specialists:Includes Specialists:
• Programmers: Highly trained, writers of the software information for computers
• Systems analysts: Translate business problems into solutions, between the information systems department and rest of the organization
• Information system managers: Leaders of various specialists
• Chief Information Officer (CIO): Senior manager in charge of information systems function in the firm
• End users: Department representatives outside the information system department for whom applications are developed
2.4: The information Systems function in Business