Global Business and Information Systems Chapter 1&2 Lecturer: Dr Richard Boateng Email: richard@pearlrichards.org Feb 3 rd 2010
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What is an information system?
An information system (IS) is an arrangement of people, data, processes, and information technology that interact to collect, process, store, and provide as output the information needed to support an organization. Information technology is a contemporary term that describes the combination of computer technology (hardware and software) with telecommunications technology (data, image, and voice networks).
Figure 1 An Integrated View of Information and Communication Technologies HRIS Source: Adapted from Duncome and Heeks (2001)
Data: Streams of raw facts representing events such as business transactions Information: Clusters of facts that are meaningful and useful to human beings in the processes such as making decisions
What Is an Information System? Data and Information
Activities in an Information System INPUT PROCESS OUTPUT FEEDBACK
Functions of an Information System Figure 1-3
More Qu 1. What are the major types of systems in a business? What role do they play? 2. How do information systems support the major business functions: sales and marketing, manufacturing and production, finance and accounting, and human resources?
Six Types of Information Systems 1. Executive Support System (ESS) 2. Decision Support Systems (DSS) 3. Management Information Systems (MIS) Strategic-Level Management- Level Plan and Project, Forecast - Senior Managers Decision Analysis; Summary Reports - Staff Managers & Middle Managers 4. Knowledge Work Systems (OS) 5. Office Systems (OS) 6. Transaction Process Systems (TPS) Knowledge- Level Operational-Level Models; Graphics; Documents & Mail -Professionals & Clerical Workers Sorting; lists; Detailed Reports; Pay Slips - Operations Personnel; Supervisors
Systems that Span the Business SAP ERP: Human Resource Systems - Leave Request Example Executive Support Systems Sales Planning and Forecasting http://www.sap.com/solutions/business-suite/erp/demos/index.epx
A transaction processing system (TPS) is an information system that captures and processes data about business transactions. A management information system (MIS) is an information system that provides for management-oriented reporting based on transaction processing and operations of the organization. A decision support system (DSS) is an information system that either helps to identify decision making opportunities or provides information to help make decisions.
An expert system is an information system that captures the expertise of workers and then simulates that expertise to the benefit of nonexperts. A communications and collaboration system is an information system that enables more effective communications between workers, partners, customers, and suppliers to enhance their ability to collaborate. An office automation system is an information system that supports the wide range of business office activities that provide for improved work flow between workers.
So what is the DIGITAL FIRM?
A firm which uses information systems to become networked and decentralized and to digitalize their business processes and foster innovation and creativity.
The Internet: Reducing Boundaries and Competing on Information
The Internet International network of networks Universal technology platform: Any computer can communicate with any other computer World Wide Web and Websites
The Competitive Business Environment and the Emerging Digital Firm 4 Major Systems Defining the Digital Firm Supply chain management systems Customer relationship management systems Enterprise systems Knowledge management systems
Video Sessions I-800 Flowers (http://www.1800flowers.com) for video: http://news.zdnet.com/2422-12794_22-334892.html Blue Nile (http://www.bluenile.com) for video: http://news.zdnet.com/2422-12794_22-334950.html
I-800 Flowers A network of 9000 florists Mobile (device) service Call Centre Blogs Management Information Systems TOWARD THE DIGITAL FIRM Blue Nile 60,000 jewelry 3-4 days delivery times Unique products need unique technology User Experience - 75 % Customers from Web - Visual Experience - Portray the beauty of products - Easy Experience, comfortable - Efficient User Experience - Understand Gender Preferences - Women do the selection Men do the buying - Competitive Price no middlemen/commissions - Availability: 24/7
Role of Information Systems Enabling Processes and Functions in Organizations Supporting Processes and Functions in Organizations The websites of these companies enable the sale of products. These companies primarily do not have any shops/showrooms for consumers or may fail to operate efficiently without their websites. The websites of these companies support the sale of electronic products which are primarily done in the shops
Electronic Commerce: Sharing business information, managing business relationships and facilitating transactions with Internet technology. (linking buyers and sellers). Electronic Business: Executing all the firm s business processes with Internet technology. (sales, finance, human resources, manufacturing) Intranet: Business builds private, secure network based on Internet technology Extranet: Extension of intranet to authorized external users
Transformation of the Business Enterprise Flattening Decentralization Flexibility Location independence Low transaction and coordination costs Empowerment Collaborative work and teamwork
Business Perspective of Information Systems People Structure Procedures Politics Culture ORGANIZATION TECHNOLOGY INFORMATION SYSTEMS MANAGEMENT Hardware Software Storage Senior, middle, operational
Key Elements: Organizations People: Managers, knowledge workers, data workers, production or service workers Structure: Organization chart, groups of specialists, products, geography
Organizations Operating procedures: Standard operating procedures (SOP, rules for action) Politics: Power to persuade, get things done Culture: Customs of behavior
Levels: Management Senior managers: make long-range strategic decisions about products and services Middle managers: Carry out the programs and plans of senior management Operational managers: monitor the firm s daily activities
Computer Technology Tools managers use to cope with change Hardware: Physical equipment Software: Detailed preprogrammed instructions Storage: Physical media for storing data and the software
So what is the DIGITAL FIRM?
A firm which uses information systems to become networked and decentralized and to digitalize their business processes and foster innovation and creativity.
How Digital is your firm? Highly networked decentralization Low Digitalization High Digitalization Less network centralization
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Further Examples of the Major Types of Systems in Organizations
Four powerful worldwide changes that have altered the business environment: 1. Emergence of the Global Economy 2. Transformation of Industrial Economies 3. Transformation of the Business Enterprise 4. The Emerging Digital Firm
Major Types of Systems in Organizations Typical Applications of Transaction Processing Systems (TPS)
Major Types of Systems in Organizations How management information systems obtain their data from the organization s TPS
Major Types of Systems in Organizations Four Major Types of Systems Transaction Processing Systems (TPS) Basic business systems that serve the organization s operational level Input:Transactions, events Processing: Sorting, listing, merging, updating Output: Detailed reports, lists, summaries Users: Operations personnel, supervisors
Enterprise Applications Management Information Systems Knowledge Management Systems in the Enterprise Knowledge Management Systems (KMS) Collect relevant knowledge and experience in firm to support business processes and management decisions Manage and distribute documents and other digital knowledge objects
Enterprise Applications Management Information Systems Knowledge Management Systems in the Enterprise Role of Knowledge Management Systems Acquire knowledge Store knowledge Distribute knowledge Apply knowledge
Major Types of Systems in Organizations Four Major Types of Systems Management Information Systems (MIS) Serve management level; provide reports and access to company data Input: Summary transaction data, high-volume data, simple models Processing: Routine reports, simple models, low-level analysis Output: Summary and exception reports Users: Middle managers
Major Types of Systems in Organizations Four Major Types of Systems Decision-Support Systems (DSS) Serve management level with data analysis for making decisions Input: Low-volume data or massive databases, analytic models, and data analysis tools Processing: Interactive, simulations, analysis Output: Special reports, decision analyses, responses to queries Users: Professionals, staff managers
Major Types of Systems in Organizations Four Major Types of Systems Executive Support Systems (ESS) Provide communications and computing environment that serves the organization s strategic level Input: External and internal aggregate data Processing: Graphics, simulations, interactive Output: Projections, responses to queries Users: Senior Managers
Major Types of Systems in Organizations Model of a typical executive support system
Thank You for Listening Contact: richard@pearlrichards.org Website: www.pearlrichards.org 48