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Management Information Systems

Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Different Kinds of Systems


Three main categories of information systems serve different organizational levels: 1. Operational-level systems: support operational managers, keeping track of the elementary activities and transactions (sales, receipts) Management-level systems: serve the monitoring, controlling, decision-making, and administrative activities of middle managers - Non routine decision making

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3. Strategic-level systems: help senior management tackle & address strategic issues & long term trends
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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
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Management Information Systems Information Systems in the Enterprise


MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Information system Operation support system Management support system

Transaction processing system

Process Control system

Management Information system

Executive Information system

Enterprise collaboration system

Decision support system

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Management Information Systems


Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

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Management Information Systems


Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

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

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Management Information Systems


Information Systems in the Enterprise

A Symbolic Representation for a Payroll TPS

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Management Information Systems


Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Typical Applications of TPS

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Management Information Systems Information Systems in the Enterprise


MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Process control system: - Monitor & control physical process Enterprise collaboration system: - Enhance team & work group communication & productivity (
office automation systems)

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Management Information Systems


Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Management Information Systems (MIS)


MIS - Management level of the organization, providing managers with reports & often online access to the org. current performance & historical records - Depend on TPS for data - Produces summarized weekly, monthly & yearly results or even daily or hourly reports

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Inputs: High volume transaction level data Processing: Simple models Outputs: Summary reports Users: Middle managers - Periodic schedule, Exception, demand & push reports Example: sales report

Management Information Systems


Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Management Information Systems (MIS) (continued)

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Management Information Systems


Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Management Information Systems (MIS) (continued)


A sample MIS report

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Decision Support System

DSS arch.ppt

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Management Information Systems


Information Systems in the Enterprise

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
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Management Information Systems


Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Model of a Typical Executive Support System

Internal data
TPS/MIS data Financial data Modeling/analysis

External data
Internet news feeds Market data

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Management Information Systems


Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

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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

Management Information Systems Information Systems in the Enterprise


MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Expert system: - Knowledge based IS that uses its knowledge about a


specific, complex application area to act as an expert consultant to end users.

Strategic Information system: - apply IT to a firms products/services/business


processes to help it gain a strategic advantage over its competitors Metro_FSI.mpg
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Management Information Systems


Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Relationship of Systems to One Another


Interrelationships among systems

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Figure 2-9

Management Information Systems


Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

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

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Management Information Systems


Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Sales and Marketing Systems Sales & marketing IS support:


Sales contacting customers, selling products/ services, taking orders & following up on sales Marketing Identifying & determining customers needs & wants, planning & developing products to meet their needs,& advt & promotion * Strategic level : monitor trends affecting new products, support planning for new products & monitor the performance of competitor * Management level : market research, advertising & promotional campaign, pricing decisions * Operational level: Locating prospective customer, tracking sales

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Management Information Systems


Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Sales and Marketing Systems


SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

Order processing

Enter, process, and track orders

Operational

Pricing analysis

Determine prices for products and services

Management

Sales trend forecasting

Prepare 5-year sales forecasts

Strategic

Table 2-2
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Management Information Systems


Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Manufacturing and Production Systems Manufacturing & production IS:


Support planning, development & maintenance of production facilities - establishment of production goals - acquisition, storage & availability of production materials - scheduling of equipment, facilities, materials - allocation of labor Product life cycle management (PLM) : based on a data repository that organizes every piece of info. that goes into making a particular product ( formula cards, packaging information, shipping specifications & patent data) CAD Automate the modeling & design of products

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Management Information Systems


Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Manufacturing and Production Systems


SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

Machine control

Control the actions of machines and equipment

Operational

Production planning

Decide when and how many products should be produced

Management

Facilities location 2.22

Decide where to locate new production facilities

Strategic

Management Information Systems


Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Overview of an Inventory System

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Figure 2-10

Management Information Systems


Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

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

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Management Information Systems


Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Financing & Accounting Systems (Continued)


SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

Accounts receivable

Tracks money owed the firm

Operational

Budgeting

Prepares short-term budgets

Management

Profit planning 2.25

Plans long-term profits

Strategic

Table 2-4

Management Information Systems


Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Human Resource Systems Human Resource IS: Support - Identifying potential employees - Maintaining complete records on existing employees - Creating pgms. to develop employees talents & skills

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Management Information Systems


Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Human Resource Systems (Continued)


SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL Operational

Training and development

Tracks employee training, skills, and performance appraisals

Compensation analysis

Monitors the range and distribution of employee wages, salaries, and benefits Plans the long-term labor force needs of the organization

Management

Human resources planning

Strategic

Table 2-5
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Management Information Systems


Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Human Resource Systems (Continued) An Employee Recordkeeping System

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Figure 2-11

Management Information Systems


Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

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
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Management Information Systems


Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

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.
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Management Information Systems


Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

Examples of Business Processes Manufacturing and production: Assembling product, checking quality, producing bills of materials Sales and marketing: Identifying customers, creating customer awareness, selling

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Management Information Systems


Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

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

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