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2.
3. Strategic-level systems: help senior management tackle & address strategic issues & long term trends
2.1
Evolution of IS
Transaction Processing Systems (TPS) Management Information Systems (MIS) Decision-Support Systems (DSS) Executive Information Systems (EIS) Expert system (ES) Strategic Information system (SIS)
Internetworked e biz & e com systems Internetworked enterprise & global e biz operations
2.2
2.3
2.4
Transaction Processing Systems (TPS) A computerized system that performs and records the daily routine transactions necessary to the conduct of the business Batch processing & Online processing Sales order entry, reservation systems, pay roll Highly structured TPS failure for few hours - lead to firms demise - UPS, airline reservation system Monitor status of internal operations & external relationships Producers of info. For other types of IS
2.5
2.6
2.7
Process control system: - Monitor & control physical process Enterprise collaboration system: - Enhance team & work group communication & productivity (
office automation systems)
2.8
2.9
Inputs: High volume transaction level data Processing: Simple models Outputs: Summary reports Users: Middle managers - Periodic schedule, Exception, demand & push reports Example: sales report
2.10
2.11
DSS arch.ppt
2.12
EXECUTIVE SUPPORT SYSTEMS (ESS): ESS support strategic level of the org. - Address non-routine decisions requiring judgment, evaluation, & insight bce there is no agreed procedure for arriving at a solution. Inputs: Aggregate data Processing: Interactive Outputs: Projections Users: Senior managers Example: 5 year operating plan
2.13
Internal data
TPS/MIS data Financial data Modeling/analysis
External data
Internet news feeds Market data
2.14
2.15
EXECUTIVE SUPPORT SYSTEMS (ESS) (Continued) Top Level Management Designed to the individual senior manager Ties CEO to all levels Very expensive to keep up Employ more advanced graphics s/w - Filter, compress, track critical data, displaying data of greater importance to senior managers. - Deliver information through a portal, which uses web interface to present integrated personalized business content from various sources. - Easy to use graphics interface
2.17
Figure 2-9
Relationship of Systems to One Another In contemporary 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
2.18
2.19
Order processing
Operational
Pricing analysis
Management
Strategic
Table 2-2
2.20
2.21
Machine control
Operational
Production planning
Management
Strategic
2.23
Figure 2-10
Financing and Accounting Systems Financial & Accounting IS: Support- Financial functions like
* managing cash, stocks, bonds & other investments * to maximize the return on these financial assets * determine whether the firm is getting better ROI - Accounting functions like * maintaining & managing firms financial records to account for flow of funds in a firm
2.24
Accounts receivable
Operational
Budgeting
Management
Strategic
Table 2-4
Human Resource Systems Human Resource IS: Support - Identifying potential employees - Maintaining complete records on existing employees - Creating pgms. to develop employees talents & skills
2.26
Compensation analysis
Monitors the range and distribution of employee wages, salaries, and benefits Plans the long-term labor force needs of the organization
Management
Strategic
Table 2-5
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2.28
Figure 2-11
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 knowledge knowledgesets of activities Unique ways to coordinate work, information, and knowledge Ways in which management chooses to coordinate work
2.29
Business Processes and Information Systems (Continued) Information systems help organizations achieve great efficiencies by automating parts of processes IS also contributes to completely rethinking processes. Business processes typically span several different functional areas.
2.30
Examples of Business Processes Manufacturing and production: Assembling product, checking quality, producing bills of materials Sales and marketing: Identifying customers, creating customer awareness, selling
2.31
Examples of Business Processes (Continued) Finance & accounting accounting: Paying creditors, creating financial statements, managing cash accounts Human resources resources: Hiring employees, evaluating performance, enrolling employees in benefits plans
2.32