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INFORMATION SYSTEMS IN THE ENTERPRISE

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ENTERPRISE APPLICATIONS ... SYSTEMS THAT LINK ENTERPRISE SYSTEMS OF MANY FIRMS IN THE INDUSTRY. ENTERPRISE RESOURCE PLANNING (ERP) ... – PowerPoint PPT presentation

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Title: INFORMATION SYSTEMS IN THE ENTERPRISE


1
CHAPTER-2 INFORMATION SYSTEMS IN THE ENTERPRISE
2
Management Information Systems 8/e Chapter 2
Information Systems in the Enterprise
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Types of Information Systems
3
Management Information Systems 8/e Chapter 2
Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
4
DIFFERENT TYPES OF INFORMATION SYSTEMS
  • 1. TRANSACTION PROCESSING SYSTEM
  • SERVE THE OPERATIONAL LEVEL OF ORGANIZATION
  • MONITORS AND SUPPORTS THE ORGANIZATIONS BASIC
    BUSINESS TRANSACTIONS

5
DIFFERENT TYPES OF INFORMATION SYSTEMS
  • TRANSACTION PROCESSING SYSTEM
  • PROVIDES THE BACKBONE FOR MANY APPLICATIONS
    INVOLVING THE OTHER SUPPORT SYSTEMS
  • IS CONSIDERED CRITICAL TO THE SUCCESS OF ANY
    ORGANIZATION SINCE IT SUPPORTS THE
    MISSION-CENTRAL OPERATIONS

6
DIFFERENT TYPES OF INFORMATION SYSTEMS
  • 2. KNOWLEDGE WORK SYSTEM
  • ENHANCES THE PRODUCTIVITY OF KNOWLEDGE WORKERS
  • 3. OFFICE AUTOMATION SYSTEM (OAS)
  • ENHANCES THE PRODUCTIVITY OF DATA
  • WORKERS

7
DIFFERENT TYPES OF INFORMATION SYSTEMS
  • 4. MANAGEMENT INFORMATION SYSTEM
  • PROVIDES MANAGEMENT WITH PERIODIC REPORTS AND
    ACCESS TO THE ORGANIZATIONS CURRENT AND PAST
    PERFORMANCE
  • MIS REPORTS ARE GENERATED FROM DATA FROM TPS
  • ARE NOT HIGHLY ANALYTICAL
  • ARE RELATIVELY INFLEXIBLE

8
DIFFERENT TYPES OF INFORMATION SYSTEMS
  • 5. DECISION SUPPORT SYSTEM
  • PROVIDE COMPUTERIZED SUPPORT TO COMPLEX
    NONROUTINE AND PARTIALLY STRUCTURED DECISIONS
  • HAVE MORE ANALYTICAL MODELS AND DATA ANALYSIS
    CAPABILITIES THAN MIS 
  • DRAW INFORMATION FROM EXTERNAL AND INTERNAL
    SOURCES

9
DIFFERENT TYPES OF INFORMATION SYSTEMS
  • 6. EXECUTIVE SUPPORT SYSTEM
  • SUPPORTS THE STRATEGIC LEVEL OF ORGANIZATION
  • HAS LIMITED ANALYTICAL CAPABILITIES BUT USES
    SOPHISTICATED MODELING TOOLS
  • USES INTERNAL AND EXTERNAL INFORMATION

10
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
USE OF INFORMATION SYSTEMS FOR COORDINATING ALL
THE BUSINESS PROCESSES RELATED TO DEALING WITH
 CUSTOMERS
11
SUPPLY CHAIN MANAGEMENT
INTERRELATED NETWORK OF FACILITIES AND
DISTRIBUTION METHODS THAT OBTAIN MATERIALS,
TRANSFORMS MATERIALS INTO FINISHED GOODS, AND
DELIVER THE FINISHED GOODS TO CUSTOMERS
12
ENTERPRISE APPLICATIONS
SUPPLY CHAIN MANAGEMENT
  • Limitations
  • Inefficiencies can waste as much as 25 of
    companys operating costs
  • Bullwhip Effect Information about the demand
    for the product gets distorted as it passes from
    one entity to next

13
Management Information Systems 8/e Chapter 2
Information Systems in the Enterprise
ENTERPRISE APPLICATIONS
Supply Chain Management
Figure 2-15
14
ENTERPRISE APPLICATIONS
  • Supply chain planning system Enables firm to
    generate forecasts for a product and to develop
    sourcing and a manufacturing plan for the product
  • Supply chain execution system Manages flow of
    products through distribution centers and
    warehouses

15
Collaborative Commerce
  • Uses digital technologies to enable multiple
    organizations to collaboratively design, develop,
    build, move, and manage products
  • Increases efficiencies in reducing product design
    life cycles, minimizing excess inventory,
    forecasting demand, and keeping partners and
    customers informed

16
Management Information Systems 8/e Chapter 2
Information Systems in the Enterprise
ENTERPRISE APPLICATIONS
Collaborative Commerce
Figure 2-16
17
EXTENDED ENTERPRISES OR INDUSTRIAL NETWORKS
SYSTEMS THAT LINK ENTERPRISE SYSTEMS OF MANY
FIRMS IN THE INDUSTRY
  • TWO TYPES OF INDUSTRIAL NETWORKS
  • VERTICAL INDUSTRIAL NETWORKS
  • HORIZONTAL INDUSTRIAL NETWORKS

18
ENTERPRISE RESOURCE PLANNING (ERP)
AN INTEGRATED INFORMATION SYSTEM, WHICH
FACILITATES THE EXCHANGE OF DATA AMONG CORPORATE
DIVISIONS THROUGH UNIFICATION OF KEY BUSINESS
PROCESSES
19
ADVANTAGES OF ERP
  • GREATER CONTROL AND BETTER DECISION MAKING FOR
    THE MANAGEMENT
  • IMPROVED CUSTOMER SERVICE AND ORDER PROCESSING
  • UNIFICATION OF BUSINESS FUNCTIONS AND PROCESSES
  • INTEGRATION OF DISPARATE TECHNOLOGIES

20
DISADVANTAGES OF ERP
  • DIFFICULT TO IMPLEMENT
  • HIGH UP-FRONT COSTS FOR LONG-TERM BENEFITS
  • DIFFICULT TO CHANGE
  • MAY LACK STRATEGIC BENEFITS FOR THE FIRM

21
Knowledge Management Systems
  • Discovering and codifying knowledge
  • Creating knowledge
  • Sharing knowledge
  • Distributing knowledge
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