Information Systems in Business

Transcription

1 Information Systems in Business

2 Information Systems Information System (IS): A Process that: collects, processes, stores, analyzes, and disseminates information for a specific purpose. 2

3 Components of an IS 1. People Resources - End Users - IS Specialists 2. Hardware - Machines - Media 3. Software - Programs - Procedures 4. Data Resources - Data and Knowledge Bases 5. Network Resources - Communications Media and Networks

4 Dimensions of Information Systems Three Important Dimensions of Information Systems Organizations Management Technology You will need to understand and balance these dimensions of information systems in order to create business value.

5 The Organizational Dimension of Information Systems People Structure Business processes Culture Politics

6 The Management Dimension of Information Systems Simulating Decision making Planning Innovating new processes Setting agendas & Targets

7 The Technology Dimension of Information Systems Information technology is one of the tools managers use to cope with change: Hardware: Physical equipment Software: Detailed preprogrammed instructions Storage: Physical media for storing data and the software

8 The Technology Dimension of Information Systems (Continued) Communications technology: Transfers data from one physical location to another Networks: Links computers to share data or resources Managers need to know enough about information technology to make intelligent decisions about how to use it for creating business value.

9 Classification of Information Systems The two most common classifications are: Classification by breath of support Classification by organizational level. 9

10 Departmental, corporate, and interorganizational IS 10

11 Classification by Organization Levels The typical enterprise is organized hierarchically, from the: clerical and office worker layer, to the operational layer, the managerial layer, the knowledge worker layer and finally the strategic layer. 11

12 Types of Information Systems

13 MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS 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 2. Management-level systems: serve the monitoring, controlling, decision-making, and administrative activities 3. Strategic-level systems: help senior management tackle and address strategic issues

14 MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Transaction Processing Systems (TPS) Management Information Systems (MIS) Decision-Support Systems (DSS) Executive Support Systems (ESS)

15 Typical Applications of TPS

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

17 Management Information Systems (MIS) (continued)

18 Management Information Systems (MIS) (continued) A sample MIS report

19 Decision-Support Systems (DSS) Management level Inputs: Transaction level data Processing: Interactive Outputs: Decision analysis Users: Professionals, staff Example: Contract cost analysis

20 Decision-Support Systems (DSS) (Continued) Voyage-estimating decision-support system

21 EXECUTIVE SUPPORT SYSTEMS (ESS): Inputs: Aggregate data Processing: Interactive Outputs: Projections Users: Senior managers Example: 5 year operating plan

22 EXECUTIVE SUPPORT SYSTEMS (ESS) (Continued) Top Level Management Designed to the individual senior manager Very expensive to keep up Extensive support staff

23 The Four Major Types of Information Systems

24 Relationship of Systems to One Another Interrelationships among systems

25 Traditional Silo View of Information Systems Within the business: There are functions, each having its uses of information systems Outside the organization s s boundaries: There are customers and vendors Functions tend to work in isolation

26 Traditional View of Systems

27 Cross-Functional Business Processes: Cut across boundaries between Sales, Marketing, Manufacturing, and Human Resource, etc. Group employees from different functional specialties to a complete piece of work Example: Order Fulfillment Process

28 The Order Fulfillment Process

29 Systems for Enterprise-Wide Process Integration Enterprise applications: Designed to support organization-wide process coordination and integration

30 Enterprise Systems

31 Systems for Enterprise-Wide Process Integration (Continued) Consist of : Enterprise Resource Planning (ERP) Supply chain management systems Customer relationship management systems Knowledge management systems

32 Enterprise wide Systems Enterprise resource planning (ERP) systems: provide a single information system for organization-wide coordination and integration of key business processes.

33 Enterprise Application Architecture

34 Integrated Systems Approach Common set of applications Usually requires re-engineering of business processes Better alignment Limited customization Easier upgrades Overcomes inefficiencies of independent systems Integrated data supports multiple business functions

35 Benefits of Enterprise Systems Help to unify the firm s s structure and organization: One organization Management: Firm wide knowledge-based management processes Technology: Unified platform Business: More efficient operations & customer- driven business processes