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2 INFORMATION SYSTEMS IN THE ENTERPRISE Chapter Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Major Types of Systems Executive Support Systems (ESS) Decision Support Systems…
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Content Preview
  1. 2 INFORMATION SYSTEMS IN THE ENTERPRISE Chapter
  2. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Major Types of Systems
    • Executive Support Systems (ESS)
    • Decision Support Systems (DSS)
    • Management Information Systems (MIS)
    • Transaction Processing Systems (TPS)
    KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
  3. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Enterprise Systems INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Figure 2-17
    • Business processes
    • Manner in which work is organized, coordinated, and focused to produce a valuable product or service
    • Concrete work flows of material, information, and knowledge—sets of activities
    Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Business Processes and Information Systems INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
    • Unique ways to coordinate work,
    • information, and knowledge
    • Ways in which management chooses
    • to coordinate work
    Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Business Processes and Information Systems
  4. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Figure 2-16 Traditional View of the Systems INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
  5. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
    • 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
  6. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Types of TPS Systems KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Figure 2-4
  7. System Architecture: Transaction Processing System
    • Major functions of systems:
    • Budgeting, general ledger, billing, cost accounting
    • Major application systems:
    • General ledger, accounts receivable, accounts payable, budgeting, funds management systems
    Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Financing and Accounting Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
    • Major functions of systems:
    • Sales management, market research, promotion, pricing, new products
    • Major application systems:
    • Sales order info system, market research system, pricing system
    Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Sales and Marketing 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
    Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Manufacturing and Production Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
    • 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
    Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Human Resource Systems
  8. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Human Resource Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Figure 2-11
  9. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Payroll TPS KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Figure 2-3
  10. System Example: Payroll System (TPS)
  11. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Overview of Inventory Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Figure 2-10
  12. Management Information System (MIS)
    • Management Information System (MIS)
      • An MIS provides managers with information and support for effective decision making, and provides feedback on daily operations.
      • MIS provides information to the users in the form of reports
      • Output, or reports, are usually generated through accumulation of transaction processing data.
      • MIS is an integrated collection of subsystems, which are typically organized along functional lines within an organization.
    • Management Information System (MIS):
    • Management level
    • Inputs: High volume data
    • Processing : Simple models
    • Outputs: Summary reports
    • Users: Middle managers
    • Example: Annual budgeting
    Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
    • Structured and semi-structured decisions
    • Report control oriented
    • Past and present data
    • Internal orientation
    • Lengthy design process
    Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Management Information System (MIS)
  13. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Management Information System (MIS) Figure 2-5
  14. System Architecture: Management Information System
  15. Management Information System
    • Scheduled reports
    • Key-indicator reports
    • Exception reports
    • Ad hoc (demand) reports
    • Drill-down reports
    Creates reports managers can use to make routine business decisions MIS
  16. Outputs of a Management Information System Scheduled Reports Produced periodically, or on a schedule (daily, weekly, monthly).
  17. Key-Indicator Report Summarizes the previous day’s critical activities and typically available at the beginning of each day.
  18. Demand Report Gives certain information at a manager’s request . Exception Report Automatically produced when a situation is unusual or requires management action.
  19. Drill Down Reports Provide detailed data about a situation.
    • Decision Support System (DSS):
    • Management level
    • Inputs: Low volume data
    • Processing: Interactive
    • Outputs: Decision analysis
    • Users: Professionals, staff
    • Example: Contract cost analysis
    Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
  20. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Decision Support System (DSS) Figure 2-7
  21. Four Types of Models
  22. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Decision Support System (DSS) Figure 2-6
    • Top level management
    • Designed to the individual
    • Ties CEO to all levels
    • Very expensive to keep up
    • Extensive support staff
    Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Executive support system (ESS)
    • Executive Support System (ESS):
    • Strategic level
    • Inputs: Aggregate data
    • Processing: Interactive
    • Outputs: Projections
    • Users: Senior managers
    • Example: 5-year operating plan
    Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
  23. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Executive Support System (ESS) Figure 2-8
    • Cross-Functional Business Processes
    • Transcend 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
    Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Business Processes and Information Systems
  24. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise The Order Fulfillment Process INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Figure 2-12
  25. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Types of Information Systems KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Figure 2-1
  26. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise TYPES OF INFORMATION SYSTEMS Figure 2-2
  27. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTERRELATIONSHIPS AMONG SYSTEMS Figure 2-9
  28.  
  29. 2 INFORMATION SYSTEMS IN THE ENTERPRISE Chapter
    • Knowledge Work Systems (KWS):
    • Knowledge level
    • Inputs: Design specs
    • Processing: Modeling
    • Outputs: Designs, graphics
    • Users: Technical staff
    • Example: Engineering work station
    Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
    • Information systems help organizations
    • Achieve great efficiencies by automating parts of processes
    • Rethink and streamline processes
    Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Business Processes and Information Systems INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
  30. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Human Resource Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
    • Finance and accounting: Paying creditors, creating financial statements, managing cash accounts
    • Human Resources: Hiring employees, evaluating performance, enrolling employees in benefits plans
    Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Examples of Business Processes INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
    • Manufacturing and production: Assembling product, checking quality, producing bills of materials
    • Sales and marketing: Identifying customers, creating customer awareness, selling
    Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Examples of Business Processes INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

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