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THE%20STRATEGIC%20ROLE%20OF%20INFORMATION%20SYSTEMS

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Title: THE%20STRATEGIC%20ROLE%20OF%20INFORMATION%20SYSTEMS


1
2
INFORMATION SYSTEMS IN THE ENTERPRISE
2
LEARNING OBJECTIVES
  • ANALYZE ROLES OF 6 TYPES OF INFORMATION SYSTEMS
  • DESCRIBE TYPES OF INFORMATION SYSTEMS
  • ANALYZE RELATIONSHIPS BETWEEN BUSINESS PROCESSES

3
LEARNING OBJECTIVES
  • EXPLAIN HOW SYSTEMS NETWORKS CREATE NEW
    EFFICIENCIES
  • EVALUATE BENEFITS LIMITATIONS OF SYSTEMS
    NETWORKS

4
MANAGEMENT CHALLENGES
  • KEY SYSTEM APPLICATIONS
  • FUNCTIONAL PERSPECTIVE OF SYSTEMS
  • INTEGRATING FUNCTIONS PROCESSES

5
MANAGEMENT CHALLENGES
  • 1. INTEGRATION Different systems serve variety
    of functions, connecting organizational levels
    difficult, costly
  • 2. ENLARGING SCOPE OF MANAGEMENT THINKING Huge
    system investments, long development time must be
    guided by common objectives

6
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7
TYPES OF INFORMATION SYSTEMS
8
MAJOR TYPES OF SYSTEMS
  • EXECUTIVE SUPPORT SYSTEMS (ESS)
  • DECISION SUPPORT SYSTEMS (DSS)
  • MANAGEMENT INFORMATION SYSTEMS (MIS)
  • KNOWLEDGE WORK SYSTEMS (KWS)
  • OFFICE AUTOMATION SYSTEMS (OAS)
  • TRANSACTION PROCESSING SYSTEMS (TPS)

9
TYPICAL TPS APPLICATIONSSales Marketing Systems
  • MAJOR FUNCTIONS OF SYSTEMS
  • Sales management, market research, promotion,
    pricing, new products
  • MAJOR APPLICATION SYSTEMS
  • Sales order info system, market research system,
    pricing system

10
TYPICAL TPS APPLICATIONSManufacturing
Production Systems
  • MAJOR FUNCTIONS OF SYSTEMS
  • Scheduling, purchasing, shipping, receiving,
    engineering, operations
  • MAJOR APPLICATION SYSTEMS
  • Materials resource planning systems, purchase
    order control systems, engineering systems,
    quality control systems

11
TYPICAL TPS APPLICATIONSFinance Accounting
Systems
  • MAJOR FUNCTIONS OF SYSTEMS
  • Budgeting, general ledger, billing, cost
    accounting
  • MAJOR APPLICATION SYSTEMS
  • General ledger, accounts receivable, accounts
    payable, budgeting, funds management systems

12
TYPICAL TPS APPLICATIONSHuman Resources Systems
  • MAJOR FUNCTIONS OF SYSTEMS
  • Personnel records, benefits, compensation, labor
    relations, training
  • MAJOR APPLICATION SYSTEMS
  • Payroll, employee records, benefit systems,
    career path systems, personnel training systems

13
TYPICAL TPS APPLICATIONSOther Types (e.g.,
University)
  • MAJOR FUNCTIONS OF SYSTEMS
  • Admissions, grade records, course records, alumni
  • MAJOR APPLICATION SYSTEMS
  • Registration system, student transcript system,
    curriculum class control system, alumni
    benefactor system

14
KNOWLEDGE WORK SYSTEMS (KWS)
  • KNOWLEDGE LEVEL
  • INPUTS DESIGN SPECS
  • PROCESSING MODELLING
  • OUTPUTS DESIGNS, GRAPHICS
  • USERS TECHNICAL STAFF
  • EXAMPLE ENGINEERING WORK
    STATION

15
OFFICE AUTOMATION SYSTEMS (OAS)
  • TOWARD A PAPERLESS OFFICE
  • REDESIGN OF WORK FLOW
  • INTEGRATED SOFTWARE
  • ERGONOMIC DESIGN
  • BRIGHT, CHEERFUL WORK SPACE
  • EXAMPLE PRESENTATION GRAPHICS

16
MANAGEMENT INFORMATION SYSTEMS (MIS)
  • MANAGEMENT LEVEL
  • INPUTS HIGH VOLUME DATA
  • PROCESSING SIMPLE MODELS
  • OUTPUTS SUMMARY REPORTS
  • USERS MIDDLE MANAGERS
  • EXAMPLE ANNUAL BUDGETING

17
MANAGEMENT INFORMATION SYSTEMS (MIS)
  • STRUCTURED SEMI-STRUCTURED DECISIONS
  • REPORT CONTROL ORIENTED
  • PAST PRESENT DATA
  • INTERNAL ORIENTATION
  • LENGTHY DESIGN PROCESS

18
TPS DATA FOR MIS APPLICATIONS
19
DECISION SUPPORT SYSTEMS (DSS)
  • MANAGEMENT LEVEL
  • INPUTS LOW VOLUME DATA
  • PROCESSING INTERACTIVE
  • OUTPUTS DECISION ANALYSIS
  • USERS PROFESSIONALS, STAFF
  • EXAMPLE CONTRACT COST ANALYSIS

20
DECISION SUPPORT SYSTEMS (DSS)
  • FLEXIBLE, ADAPTABLE, QUICK
  • USER CONTROLS INPUTS/OUTPUTS
  • NO PROFESSIONAL PROGRAMMING
  • SUPPORTS DECISION PROCESS
  • SOPHISTICATED MODELING TOOLS

21
EXECUTIVE SUPPORT SYSTEMS (ESS)
  • STRATEGIC LEVEL
  • INPUTS AGGREGATE DATA
  • PROCESSING INTERACTIVE
  • OUTPUTS PROJECTIONS
  • USERS SENIOR MANAGERS
  • EXAMPLE 5 YEAR OPERATING PLAN

22
EXECUTIVE SUPPORT SYSTEMS (ESS)
  • TOP LEVEL MANAGEMENT
  • DESIGNED TO THE INDIVIDUAL
  • TIES CEO TO ALL LEVELS
  • VERY EXPENSIVE TO KEEP UP
  • EXTENSIVE SUPPORT STAFF

23
INTERRELATIONSHIPS AMONG SYSTEMS
24
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
  • SALES MARKETING SYSTEMS
  • MANUFACTURING PRODUCTION SYSTEMS
  • FINANCE ACCOUNTING SYSTEMS
  • HUMAN RESOURCES SYSTEMS

25
SALES MARKETING INFORMATION SYSTEM
26
MANUFACTURING INFORMATION SYSTEM
27
FINANCE ACCOUNTING INFORMATION SYSTEM
28
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29
HUMAN RESOURCES INFORMATION SYSTEM
30
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31
EXAMPLES OF BUSINESS PROCESSES
  • MANUFACTURING PRODUCTION Assembling product,
    checking quality, producing bills of materials
  • SALES MARKETING Identifying customers,
    creating customer awareness, selling

32
EXAMPLES OF BUSINESS PROCESSES
  • FINANCE ACCOUNTING Paying creditors, creating
    financial statements, managing cash accounts
  • HUMAN RESOURCES Hiring employees, evaluating
    performance, enrolling employees in benefits
    plans

33
SUPPLY-CHAIN MANAGEMENT
34
HOW INFORMATION SYSTEMS FACILITATES SUPPLY CHAIN
MANAGEMENT
DECIDE WHEN, WHAT TO PRODUCE, STORE,
MOVE RAPIDLY COMMUNICATE ORDERS TRACK ORDER
STATUS CHECK INVENTORY AVAILABILITY, MONITOR
LEVELS TRACK SHIPMENTS PLAN PRODUCTION
BASED ON ACTUAL DEMAND RAPIDLY COMMUNICATE
PRODUCT DESIGN CHANGES PROVIDE PRODUCT
SPECIFICATIONS SHARE INFORMATION ABOUT DEFECT
RATES, RETURNS...
35
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36
TRADITIONAL VIEW OF SYSTEMS
  • WITHIN THE BUSINESS There are functions, each
    having its uses of information systems
  • OUTSIDE THE ORGANIZATIONS BOUNDARIES There are
    customers and vendors
  • FUNCTIONS TEND TO WORK IN ISOLATION

37
ENTERPRISE SYSTEM
Vendors
Customers
38
BENEFITS OF ENTERPRISE SYSTEMS
  • FIRM STRUCTURE ORGANIZATION One organization
  • MANAGEMENT Firmwide knowledge-based management
    processes
  • TECHNOLOGY Unified platform
  • BUSINESS More efficient operations
    customer-driven business processes

39
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40
CHALLENGES OF ENTERPRISE SYSTEMS
  • DAUNTING IMPLEMENTATION
  • HIGH UP FRONT COSTS FUTURE BENEFITS
  • INFLEXIBILITY
  • HARD TO REALIZE STRATEGIC VALUE

41
INDUSTRIAL NETWORKS
  • LINK FIRMS INTO INDUSTRY-WIDE SYSTEM
  • HORIZONTAL Link firms in same industry,
    including competitors
  • VERTICAL Link firm with suppliers in same
    industry

42
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43
What are business processes? How are they related
to information systems?
  • A business process is a logically related set of
    activities that defines how specific business
    tasks are performed, and it represents a unique
    way in which an organization coordinates work,
    information, and knowledge. Managers need to pay
    attention to business processes because they
    determine how well the organization can execute
    its business, and they may be a source of
    strategic advantage. There are business
    processes specific to each of the major business
    functions, but many business processes are
    cross-functional. Information systems automate
    parts of business processes, and they can help
    organizations redesign and streamline these
    processes.

44
What is the role of the information systems
function in a business?
  • The information systems department is the formal
    organizational unit responsible for information
    technology services. It is responsible for
    maintaining the hardware, software, data storage,
    and networks that comprise the firms IT
    infrastructure. The department consists of
    specialists, such as programmers, systems
    analysts, project leaders, and information
    systems managers, and is often headed by a CIO.

45
INFORMATION SYSTEMS IN THE ENTERPRISE
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