types of information systems
DESCRIPTION
Lecture on Information SystemsTRANSCRIPT
2.1 © 2003 by Prentice Hall
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INFORMATION INFORMATION
SYSTEMS IN THESYSTEMS IN THE
ENTERPRISEENTERPRISE
Chapter
2.2 © 2003 by Prentice Hall
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
Major Types of Systems
• Executive Support Systems (ESS)Executive Support Systems (ESS)
• Decision Support Systems (DSS)Decision Support Systems (DSS)
• Management Information Systems (MIS)Management Information Systems (MIS)
• Transaction Processing Systems (TPS)Transaction Processing Systems (TPS)
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
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Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
Figure 2-17
Enterprise Systems
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
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Business processes Business processes
• Manner in which work is organized, Manner in which work is organized, coordinated, and focused to produce a coordinated, and focused to produce a valuable product or servicevaluable product or service
• Concrete work flows of material, Concrete work flows of material, information, and knowledge—sets of information, and knowledge—sets of activitiesactivities
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
Business Processes and Information Systems
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
2.5 © 2003 by Prentice Hall
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
• Unique ways to coordinate work, Unique ways to coordinate work,
information, and knowledgeinformation, and knowledge
• Ways in which management chooses Ways in which management chooses
to coordinate workto coordinate work
Business Processes and Information Systems
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Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
Figure 2-16
Traditional View of the Systems
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
2.7 © 2003 by Prentice Hall
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Transaction Processing Systems (TPS):Transaction Processing Systems (TPS):
• Basic business systems that serve the Basic business systems that serve the operational leveloperational level
• A computerized system that performs and A computerized system that performs and records the daily routine transactions records the daily routine transactions necessary to the conduct of the businessnecessary to the conduct of the business
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Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
Types of TPS Systems
Figure 2-4
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
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System Architecture: Transaction Processing System Architecture: Transaction Processing SystemSystem
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Major functions of systems:Major functions of systems:• Budgeting, general ledger, billing, cost Budgeting, general ledger, billing, cost
accountingaccounting
Major application systems:Major application systems:• General ledger, accounts receivable, General ledger, accounts receivable,
accounts payable, budgeting, funds accounts payable, budgeting, funds management systemsmanagement systems
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
Financing and Accounting Systems
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
2.11 © 2003 by Prentice Hall
Major functions of systems:Major functions of systems:• Sales management, market research, Sales management, market research,
promotion, pricing, new productspromotion, pricing, new products
Major application systems:Major application systems:• Sales order info system, market research Sales order info system, market research
system, pricing systemsystem, pricing system
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Sales and Marketing Systems
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Major functions of systems:Major functions of systems:• Scheduling, purchasing, shipping, Scheduling, purchasing, shipping,
receiving, engineering, operationsreceiving, engineering, operations
Major application systems:Major application systems:• Materials resource planning systems, Materials resource planning systems,
purchase order control systems, purchase order control systems, engineering systems, quality control engineering systems, quality control systemssystems
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
Manufacturing and Production Systems
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
2.13 © 2003 by Prentice Hall
Major functions of systems:Major functions of systems:• Personnel records, benefits, Personnel records, benefits,
compensation, labor relations, trainingcompensation, labor relations, training
Major application systems:Major application systems:• Payroll, employee records, benefit Payroll, employee records, benefit
systems, career path systems, personnel systems, career path systems, personnel training systemstraining systems
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Human Resource Systems
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Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
Figure 2-11
Human Resource Systems
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
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Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
Payroll TPS
Figure 2-3
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
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System Example: Payroll System (TPS)System Example: Payroll System (TPS)
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Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
Overview of Inventory Systems
Figure 2-10
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
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Management Information System (MIS)Management Information System (MIS)
• Management Information System (MIS)Management Information System (MIS)– An MIS provides managers with information and An MIS provides managers with information and
support for effective decision making, and support for effective decision making, and provides feedback on daily operations.provides feedback on daily operations.
– MIS provides information to the users in the form MIS provides information to the users in the form of reportsof reports
– Output, or reports, are usually generated through Output, or reports, are usually generated through accumulation of transaction processing data.accumulation of transaction processing data.
– MIS is an integrated collection of subsystems, MIS is an integrated collection of subsystems, which are typically organized along functional which are typically organized along functional lines within an organization.lines within an organization.
2.19 © 2003 by Prentice Hall
Management Information System (MIS):
Management levelManagement level• Inputs:Inputs: High volume data High volume data
• ProcessingProcessing:: Simple models Simple models
• Outputs:Outputs: Summary reports Summary reports
• Users:Users: Middle managers Middle managers
Example: Annual budgetingExample: Annual budgeting
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
2.20 © 2003 by Prentice Hall
• Structured and semi-structured decisionsStructured and semi-structured decisions
• Report control orientedReport control oriented
• Past and present dataPast and present data
• Internal orientationInternal orientation
• Lengthy design processLengthy design process
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Management Information System (MIS)
2.21 © 2003 by Prentice Hall
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
Figure 2-5
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Management Information System (MIS)
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System Architecture: Management System Architecture: Management Information SystemInformation System
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Management Information SystemManagement Information System
• Scheduled reportsScheduled reports
• Key-indicator reportsKey-indicator reports
• Exception reportsException reports
• Ad hoc (demand) reportsAd hoc (demand) reports
• Drill-down reportsDrill-down reports
Creates reports managers can use Creates reports managers can use to make routine business decisionsto make routine business decisions
MISMIS
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Outputs of a Management Information Outputs of a Management Information SystemSystem
Scheduled ReportsProduced periodically, or on a schedule (daily, weekly, monthly).
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Key-Indicator ReportSummarizes the previous day’s critical activities and typically available at the beginning of each day.
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Demand ReportGives certain information at a manager’s request.
Exception ReportAutomatically produced when a situation is unusual or requires management action.
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Drill Down ReportsProvide detailed data about a situation.
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Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
Decision Support System (DSS):
Management levelManagement level• Inputs:Inputs: Low volume data Low volume data
• Processing: Processing: InteractiveInteractive
• Outputs:Outputs: Decision analysis Decision analysis
• Users:Users: Professionals, staff Professionals, staff
Example: Contract cost analysisExample: Contract cost analysis
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
2.29 © 2003 by Prentice Hall
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
Figure 2-7
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Decision Support System (DSS)
2.30 © 2003 by Prentice Hall
Four Types of ModelsFour Types of Models
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Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
Figure 2-6
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Decision Support System (DSS)
2.32 © 2003 by Prentice Hall
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
• Top level managementTop level management
• Designed to the individualDesigned to the individual
• Ties CEO to all levelsTies CEO to all levels
• Very expensive to keep upVery expensive to keep up
• Extensive support staffExtensive support staff
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Executive support system (ESS)
2.33 © 2003 by Prentice Hall
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
Executive Support System (ESS):
Strategic levelStrategic level• Inputs:Inputs: Aggregate data Aggregate data
• Processing:Processing: Interactive Interactive
• Outputs:Outputs: Projections Projections
• Users:Users: Senior managers Senior managers
Example: 5-year operating planExample: 5-year operating plan
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
2.34 © 2003 by Prentice Hall
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Executive Support System (ESS)
Figure 2-8
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Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Cross-Functional Business ProcessesCross-Functional Business Processes
• Transcend boundary between sales, Transcend boundary between sales, marketing, manufacturing, and research and marketing, manufacturing, and research and developmentdevelopment
• Group employees from different functional Group employees from different functional specialties to a complete piece of workspecialties to a complete piece of work
Example: Order Fulfillment ProcessExample: Order Fulfillment Process
Business Processes and Information Systems
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Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
Figure 2-12
The Order Fulfillment Process
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
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Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
Types of Information Systems
Figure 2-1
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
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Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
TYPES OF INFORMATION SYSTEMS
Figure 2-2
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Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
INTERRELATIONSHIPS AMONG SYSTEMS
Figure 2-9
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INFORMATION INFORMATION
SYSTEMS IN THESYSTEMS IN THE
ENTERPRISEENTERPRISE
Chapter
2.42 © 2003 by Prentice Hall
Knowledge Work Systems (KWS):
Knowledge levelKnowledge level• Inputs:Inputs: Design specsDesign specs
• Processing:Processing: ModelingModeling
• Outputs:Outputs: Designs, graphicsDesigns, graphics
• Users:Users: Technical staffTechnical staff
Example: Engineering work stationExample: Engineering work station
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
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Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
Business Processes and Information Systems
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Information systems help organizationsInformation systems help organizations
• Achieve great efficiencies by automating Achieve great efficiencies by automating parts of processes parts of processes
• Rethink and streamline processesRethink and streamline processes
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Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL
TRAINING & DEVELOPMENT TRACK TRAINING, SKILLS, APPRAISALS OPERATIONAL
CAREER PATHING DESIGN EMPLOYEE CAREER PATHS KNOWLEDGE
COMPENSATION ANALYSIS MONITOR WAGES, SALARIES, BENEFITS MANAGEMENT
HUMAN RESOURCES PLANNING PLAN LONG-TERM LABOR FORCE NEEDS STRATEGIC
Human Resource Systems
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
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• Finance and accounting:Finance and accounting: Paying Paying creditors, creating financial statements, creditors, creating financial statements, managing cash accountsmanaging cash accounts
• Human Resources:Human Resources: Hiring employees, Hiring employees, evaluating performance, enrolling evaluating performance, enrolling employees in employees in benefits plansbenefits plans
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
Examples of Business Processes
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
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• Manufacturing and production:Manufacturing and production: Assembling product, checking quality, Assembling product, checking quality, producing bills of materialsproducing bills of materials
• Sales and marketing:Sales and marketing: Identifying Identifying customers, creating customer awareness, customers, creating customer awareness, sellingselling
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise
Examples of Business Processes
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES