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Chapter

INFORMATION

SYSTEMS IN THE
ENTERPRISE

2.1

2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Major Types of Systems


Executive Support Systems (ESS) Decision Support Systems (DSS) Management Information Systems (MIS)

Transaction Processing Systems (TPS)

2.2

2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Enterprise Systems

2.3

Figure 2-17

2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Business Processes and Information Systems

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 knowledgesets of activities

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2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Business Processes and Information Systems

Unique ways to coordinate work, information, and knowledge Ways in which management chooses to coordinate work

2.5

2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Traditional View of the Systems

Figure 2-16
2.6
2003 by Prentice Hall

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

2.7

2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Types of TPS Systems

Figure 2-4
2.8
2003 by Prentice Hall

System Architecture: Transaction Processing System

2.9

2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

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

2.10

2003 by Prentice Hall

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:


Sales management, market research, promotion, pricing, new products

Major application systems:


Sales order info system, market research system, pricing system

2.11

2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

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

2.12

2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Human Resource Systems

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

2.13

2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Human Resource Systems

Figure 2-11
2.14
2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Payroll TPS

Figure 2-3
2.15
2003 by Prentice Hall

System Example: Payroll System (TPS)

2.16

2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Overview of Inventory Systems

Figure 2-10
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2003 by Prentice Hall

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.
18 2003 by Prentice Hall

2.18

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Management Information System (MIS): Management level Inputs: High volume data Processing: Simple models Outputs: Summary reports Users: Middle managers Example: Annual budgeting
2.19
2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Management Information System (MIS)

Structured and semi-structured decisions Report control oriented Past and present data Internal orientation

Lengthy design process

2.20

2003 by Prentice Hall

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
2.21
2003 by Prentice Hall

System Architecture: Management Information System

2.22

2003 by Prentice Hall

MIS

Management Information System

Creates reports managers can use to make routine business decisions



2.23

Scheduled reports Key-indicator reports Exception reports Ad hoc (demand) reports Drill-down reports
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Scheduled Reports
Produced periodically, or on a schedule (daily, weekly, monthly).

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Key-Indicator Report
Summarizes the previous days critical activities and typically available at the beginning of each day.
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Demand Report
Gives certain information at a managers request.
Exception Report
Automatically produced when a situation is unusual or requires management action.
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Drill Down Reports


Provide detailed data about a situation.

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2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Decision Support System (DSS): Management level Inputs: Low volume data Processing: Interactive Outputs: Decision analysis Users: Professionals, staff Example: Contract cost analysis
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2003 by Prentice Hall

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
2.29
2003 by Prentice Hall

Four Types of Models

2.30

2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Decision Support System (DSS)

2.31

Figure 2-6
2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Executive support system (ESS)

Top level management Designed to the individual

Ties CEO to all levels


Very expensive to keep up Extensive support staff
2.32
2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Executive Support System (ESS): Strategic level Inputs: Aggregate data Processing: Interactive Outputs: Projections Users: Senior managers Example: 5-year operating plan
2.33
2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Executive Support System (ESS)

2.34

Figure 2-8

2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Business Processes and Information Systems

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


2.35
2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

The Order Fulfillment Process

Figure 2-12
2.36
2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Types of Information Systems

2.37

Figure 2-1

2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise TYPES OF INFORMATION SYSTEMS

2.38

Figure 2-2

2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise INTERRELATIONSHIPS AMONG SYSTEMS

2.39

Figure 2-9
2003 by Prentice Hall

2.40

2003 by Prentice Hall

Chapter

INFORMATION

SYSTEMS IN THE
ENTERPRISE

2.41

2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Knowledge Work Systems (KWS): Knowledge level Inputs: Design specs Processing: Modeling Outputs: Designs, graphics Users: Technical staff Example: Engineering work station
2.42
2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Business Processes and Information Systems

Information systems help organizations


Achieve great efficiencies by automating parts of processes Rethink and streamline processes

2.43

2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Human Resource Systems

SYSTEM TRAINING & DEVELOPMENT

DESCRIPTION TRACK TRAINING, SKILLS, APPRAISALS

ORGANIZATIONAL LEVEL 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

2.44

2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Examples of Business Processes

Finance and accounting: Paying


creditors, creating financial statements, managing cash accounts

Human Resources: Hiring employees,


evaluating performance, enrolling employees in benefits plans

2.45

2003 by Prentice Hall

Essentials of Management Information Systems


Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Examples of Business Processes

Manufacturing and production:


Assembling product, checking quality, producing bills of materials

Sales and marketing: Identifying


customers, creating customer awareness, selling

2.46

2003 by Prentice Hall

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