INFORMATION

SYSTEMS IN THE
ENTERPRISE

MANAGEMENT CHALLENGES

1. Integration: Different systems serve

variety of functions, connecting organizational levels difficult, costly

2. Enlarging scope of management thinking: Huge system investments,

long development time must be guided by common objectives

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Types of Information Systems

MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Major Types of Systems

Executive Support Systems (ESS)

Decision Support Systems (DSS)

Management Information Systems (MIS) Knowledge Work Systems (KWS) Office Systems Transaction Processing Systems (TPS)

MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

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

MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Knowledge Work Systems (KWS): Knowledge level Example: Engineering work station

MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

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

MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Management Information System (MIS)

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

Lengthy design process

MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Decision Support System (DSS): Management level Inputs: Low volume data Processing: Interactive Outputs: Decision analysis Users: Professionals, staff

MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

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

MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Executive support system (ESS)

Top level management Designed to the individual Ties CEO to all levels Very expensive to keep up

Extensive support staff

INTERRELATIONSHIPS AMONG SYSTEMS

Chapter 4

Information Systems for Competitive Advantage

Why Use Information Systems?

Automating: doing things faster Organizational learning: doing things better Supporting Strategy: doing things smarter

Automating: Doing Things Faster

Technology is used to automate a manual process
Doing things faster, better, cheaper Greater accuracy and consistency

Loan application example

Manual processing Technology-supported process Completely automated

Organizational Learning: Doing Things Better

Going beyond automation Involves learning to improve the day-to-day activities within the process Looking at patterns and trends Organizational Learning Using acquired knowledge and insights to improve organizational behavior

Supporting Strategy: Doing Things Smarter

Strategic Planning 1. Create a vision: setting the direction 2. Create a standard: performance targets 3. Create a strategy: reaching the goal

Types of Competitive Advantage

Low-Cost Leadership
Best prices on goods/services Examples: Dell, Target

Differentiation
Best products or services Examples: Porsche, Nordstrom, IBM

Best-Cost Provider (middle-of-the-road)

Reasonable quality, competitive prices Example: Wal-Mart