2.2.11 Prof Jess Role @ UEAB 2008
22INFORMATION INFORMATION
SYSTEMS IN BUSINESS SYSTEMS IN BUSINESS ANDAND
EDUCATIONEDUCATION
2.2.22 Prof Jess Role @ UEAB 2008
LEARNING OBJECTIVESLEARNING OBJECTIVES
• ANALYZE ROLES OF 6 TYPES OF ANALYZE ROLES OF 6 TYPES OF INFORMATION SYSTEMSINFORMATION SYSTEMS
• DESCRIBE TYPES OF INFORMATION DESCRIBE TYPES OF INFORMATION SYSTEMSSYSTEMS
• ANALYZE RELATIONSHIPS ANALYZE RELATIONSHIPS BETWEEN BUSINESS BETWEEN BUSINESS PROCESSESPROCESSES
**
2.2.33 Prof Jess Role @ UEAB 2008
LEARNING OBJECTIVESLEARNING OBJECTIVES
• EXPLAIN HOW SYSTEMS & EXPLAIN HOW SYSTEMS & NETWORKS CREATE NEW NETWORKS CREATE NEW EFFICIENCIESEFFICIENCIES
• EVALUATE BENEFITS & EVALUATE BENEFITS & LIMITATIONS OF SYSTEMS & LIMITATIONS OF SYSTEMS & NETWORKSNETWORKS
**
2.2.44 Prof Jess Role @ UEAB 2008
MANAGEMENT MANAGEMENT CHALLENGESCHALLENGES
• KEY SYSTEM APPLICATIONSKEY SYSTEM APPLICATIONS
• FUNCTIONAL PERSPECTIVE OF FUNCTIONAL PERSPECTIVE OF SYSTEMSSYSTEMS
• INTEGRATING FUNCTIONS & INTEGRATING FUNCTIONS & PROCESSESPROCESSES
**
2.2.55 Prof Jess Role @ UEAB 2008
MANAGEMENT MANAGEMENT CHALLENGESCHALLENGES
1. INTEGRATION: Different systems serve 1. INTEGRATION: Different systems serve variety of functions, variety of functions, connecting connecting organizational levels difficult, costlyorganizational levels difficult, costly
2. ENLARGING SCOPE OF MANAGEMENT 2. ENLARGING SCOPE OF MANAGEMENT THINKING: Huge system investments, THINKING: Huge system investments, long development time must be guided long development time must be guided by common objectives by common objectives
**
2.2.66 Prof Jess Role @ UEAB 2008
TYPES OF INFORMATION SYSTEMS
DATA WORKERS
KIND OF SYSTEM GROUPS SERVED
STRATEGIC LEVEL SENIOR MANAGERS
MANAGEMENT LEVEL MIDDLE
MANAGERS
OPERATIONAL OPERATIONAL LEVEL MANAGERS
KNOWLEDGE LEVEL KNOWLEDGE &
SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN RESOURCESMARKETING
2.2.77 Prof Jess Role @ UEAB 2008
MAJOR TYPES OF SYSTEMSMAJOR TYPES OF SYSTEMS
• EXECUTIVE SUPPORT SYSTEMS (ESS)EXECUTIVE SUPPORT SYSTEMS (ESS)• DECISION SUPPORT SYSTEMS (DSS)DECISION SUPPORT SYSTEMS (DSS)• MANAGEMENT INFORMATION SYSTEMS (MIS)MANAGEMENT INFORMATION SYSTEMS (MIS)• KNOWLEDGE WORK SYSTEMS (KWS)KNOWLEDGE WORK SYSTEMS (KWS)• OFFICE AUTOMATION SYSTEMS (OAS)OFFICE AUTOMATION SYSTEMS (OAS)• TRANSACTION PROCESSING TRANSACTION PROCESSING SYSTEMS SYSTEMS
(TPS)(TPS)
**
2.2.88 Prof Jess Role @ UEAB 2008
TYPICAL TPS APPLICATIONSTYPICAL TPS APPLICATIONSSales & Marketing SystemsSales & Marketing Systems
MAJOR FUNCTIONS OF SYSTEMS:MAJOR FUNCTIONS OF SYSTEMS:
• Sales management, market research, Sales management, market research, promotion, pricing, new productspromotion, pricing, new products
MAJOR APPLICATION SYSTEMS:MAJOR APPLICATION SYSTEMS:
• Sales order info system, market Sales order info system, market research system, pricing systemresearch system, pricing system
**
2.2.99 Prof Jess Role @ UEAB 2008
TYPICAL TPS APPLICATIONSTYPICAL TPS APPLICATIONSManufacturing & Production SystemsManufacturing & Production Systems
MAJOR FUNCTIONS OF SYSTEMS:MAJOR FUNCTIONS OF SYSTEMS:• Scheduling, purchasing, shipping, Scheduling, purchasing, shipping,
receiving, engineering, operationsreceiving, engineering, operationsMAJOR APPLICATION SYSTEMS:MAJOR APPLICATION SYSTEMS:• Materials resource planning systems, Materials resource planning systems,
purchase order control systems, purchase order control systems, engineering systems, quality control engineering systems, quality control systemssystems
**
2.2.1010 Prof Jess Role @ UEAB 2008
TYPICAL TPS APPLICATIONSTYPICAL TPS APPLICATIONSFinance & Accounting SystemsFinance & Accounting Systems
MAJOR FUNCTIONS OF SYSTEMS:MAJOR FUNCTIONS OF SYSTEMS:• Budgeting, general ledger, billing, Budgeting, general ledger, billing,
cost accountingcost accountingMAJOR APPLICATION SYSTEMS:MAJOR APPLICATION SYSTEMS:• General ledger, accounts receivable, General ledger, accounts receivable,
accounts payable, budgeting, funds accounts payable, budgeting, funds management systemsmanagement systems
**
2.2.1111 Prof Jess Role @ UEAB 2008
TYPICAL TPS APPLICATIONSTYPICAL TPS APPLICATIONSHuman Resources SystemsHuman Resources Systems
MAJOR FUNCTIONS OF SYSTEMS:MAJOR FUNCTIONS OF SYSTEMS:• Personnel records, benefits, Personnel records, benefits,
compensation, labor relations, trainingcompensation, labor relations, training
MAJOR APPLICATION SYSTEMS:MAJOR APPLICATION SYSTEMS:• Payroll, employee records, benefit Payroll, employee records, benefit
systems, career path systems, personnel systems, career path systems, personnel training systemstraining systems
**
2.2.1212 Prof Jess Role @ UEAB 2008
TYPICAL TPS APPLICATIONSTYPICAL TPS APPLICATIONSOther Types (e.g., University)Other Types (e.g., University)
MAJOR FUNCTIONS OF SYSTEMS:MAJOR FUNCTIONS OF SYSTEMS:• Admissions, grade records, course Admissions, grade records, course
records, alumnirecords, alumni
MAJOR APPLICATION SYSTEMS:MAJOR APPLICATION SYSTEMS:• Registration system, student transcript Registration system, student transcript
system, curriculum class control system, system, curriculum class control system, alumni benefactor systemalumni benefactor system
**
2.2.1313 Prof Jess Role @ UEAB 2008
KNOWLEDGE LEVELKNOWLEDGE LEVEL• INPUTS: DESIGN SPECSINPUTS: DESIGN SPECS• PROCESSING: MODELLINGPROCESSING: MODELLING• OUTPUTS: DESIGNS, GRAPHICSOUTPUTS: DESIGNS, GRAPHICS• USERS: TECHNICAL STAFFUSERS: TECHNICAL STAFF
EXAMPLE: ENGINEERING WORK EXAMPLE: ENGINEERING WORK STATION STATION
KNOWLEDGE WORK SYSTEMS KNOWLEDGE WORK SYSTEMS (KWS)(KWS)
2.2.1414 Prof Jess Role @ UEAB 2008
OFFICE AUTOMATION SYSTEMS OFFICE AUTOMATION SYSTEMS (OAS)(OAS)
• TOWARD A TOWARD A ““PAPERLESSPAPERLESS”” OFFICE OFFICE
• REDESIGN OF WORK FLOWREDESIGN OF WORK FLOW
• INTEGRATED SOFTWAREINTEGRATED SOFTWARE
• ERGONOMIC DESIGNERGONOMIC DESIGN
• BRIGHT, CHEERFULBRIGHT, CHEERFUL WORK SPACEWORK SPACE
EXAMPLE: PRESENTATION GRAPHICSEXAMPLE: PRESENTATION GRAPHICS
2.2.1515 Prof Jess Role @ UEAB 2008
MANAGEMENT LEVELMANAGEMENT LEVEL
• INPUTS: HIGH VOLUME DATAINPUTS: HIGH VOLUME DATA
• PROCESSING: SIMPLE MODELSPROCESSING: SIMPLE MODELS
• OUTPUTS: SUMMARY REPORTSOUTPUTS: SUMMARY REPORTS
• USERS: MIDDLE MANAGERS USERS: MIDDLE MANAGERS
EXAMPLE: ANNUAL BUDGETINGEXAMPLE: ANNUAL BUDGETING
MANAGEMENT INFORMATION MANAGEMENT INFORMATION SYSTEMS (MIS)SYSTEMS (MIS)
2.2.1616 Prof Jess Role @ UEAB 2008
• STRUCTURED & SEMI-STRUCTURED & SEMI-STRUCTURED DECISIONSSTRUCTURED DECISIONS
• REPORT CONTROL ORIENTEDREPORT CONTROL ORIENTED
• PAST & PRESENT DATAPAST & PRESENT DATA
• INTERNAL ORIENTATIONINTERNAL ORIENTATION
• LENGTHY DESIGN PROCESSLENGTHY DESIGN PROCESS
**
MANAGEMENT INFORMATION MANAGEMENT INFORMATION SYSTEMS (MIS)SYSTEMS (MIS)
2.2.1717 Prof Jess Role @ UEAB 2008
MISMIS
MIS FILESMIS FILES
SALES DATA
UNIT PRODUCT COST
PRODUCT CHANGE DATA
EXPENSE DATA
MISREPORTS
MANAGERSMANAGERS
TPS
Order Processing
System
Materials Resource
Planning System
General Ledger
System
ORDER FILE
PRODUCTION MASTER FILE
ACCOUNTING FILES
TPS DATA FOR MIS TPS DATA FOR MIS APPLICATIONSAPPLICATIONS
2.2.1818 Prof Jess Role @ UEAB 2008
MANAGEMENT LEVELMANAGEMENT LEVEL
• INPUTS: LOW VOLUME DATAINPUTS: LOW VOLUME DATA
• PROCESSING: INTERACTIVEPROCESSING: INTERACTIVE
• OUTPUTS: DECISION ANALYSISOUTPUTS: DECISION ANALYSIS
• USERS: PROFESSIONALS, STAFFUSERS: PROFESSIONALS, STAFF
EXAMPLE: CONTRACT COST ANALYSISEXAMPLE: CONTRACT COST ANALYSIS
DECISION SUPPORT SYSTEMS DECISION SUPPORT SYSTEMS (DSS)(DSS)
2.2.1919 Prof Jess Role @ UEAB 2008
• FLEXIBLE, ADAPTABLE, QUICKFLEXIBLE, ADAPTABLE, QUICK
• USER CONTROLS INPUTS/OUTPUTSUSER CONTROLS INPUTS/OUTPUTS
• NO PROFESSIONAL PROGRAMMINGNO PROFESSIONAL PROGRAMMING
• SUPPORTS DECISION PROCESSSUPPORTS DECISION PROCESS
• SOPHISTICATED MODELING TOOLSSOPHISTICATED MODELING TOOLS
**
DECISION SUPPORT SYSTEMS DECISION SUPPORT SYSTEMS (DSS)(DSS)
2.2.2020 Prof Jess Role @ UEAB 2008
STRATEGIC LEVELSTRATEGIC LEVEL
• INPUTS: AGGREGATE DATAINPUTS: AGGREGATE DATA
• PROCESSING: INTERACTIVEPROCESSING: INTERACTIVE
• OUTPUTS: PROJECTIONSOUTPUTS: PROJECTIONS
• USERS: SENIOR MANAGERS USERS: SENIOR MANAGERS
EXAMPLE: 5 YEAR OPERATING PLANEXAMPLE: 5 YEAR OPERATING PLAN
EXECUTIVE SUPPORT SYSTEMS EXECUTIVE SUPPORT SYSTEMS (ESS)(ESS)
2.2.2121 Prof Jess Role @ UEAB 2008
• TOP LEVEL MANAGEMENTTOP LEVEL MANAGEMENT
• DESIGNED TO THE INDIVIDUALDESIGNED TO THE INDIVIDUAL
• TIES CEO TO ALL LEVELSTIES CEO TO ALL LEVELS
• VERY EXPENSIVE TO KEEP UPVERY EXPENSIVE TO KEEP UP
• EXTENSIVE SUPPORT STAFFEXTENSIVE SUPPORT STAFF
**
EXECUTIVE SUPPORT SYSTEMS EXECUTIVE SUPPORT SYSTEMS (ESS)(ESS)
2.2.2222 Prof Jess Role @ UEAB 2008
INTERRELATIONSHIPS AMONG SYSTEMSINTERRELATIONSHIPS AMONG SYSTEMS
ESS
TPSKWS
OAS
DSSMIS
2.2.2323 Prof Jess Role @ UEAB 2008
SYSTEMS FROM A FUNCTIONAL SYSTEMS FROM A FUNCTIONAL PERSPECTIVEPERSPECTIVE
• SALES & MARKETING SYSTEMSSALES & MARKETING SYSTEMS
• MANUFACTURING & PRODUCTION MANUFACTURING & PRODUCTION SYSTEMSSYSTEMS
• FINANCE & ACCOUNTING SYSTEMSFINANCE & ACCOUNTING SYSTEMS
• HUMAN RESOURCES SYSTEMSHUMAN RESOURCES SYSTEMS
**
2.2.2424 Prof Jess Role @ UEAB 2008
SALES & MARKETING SALES & MARKETING INFORMATION SYSTEMINFORMATION SYSTEM
SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL
ORDER PROCESSING ENTER, PROCESS, TRACK ORDERS OPERATIONAL
MARKET ANALYSIS IDENTIFY CUSTOMERS & MARKETS KNOWLEDGE
PRICING ANALYSIS DETERMINE PRICES MANAGEMENT
SALES TRENDS PREPARE 5-YEAR FORECASTS STRATEGIC
2.2.2525 Prof Jess Role @ UEAB 2008
MANUFACTURING MANUFACTURING INFORMATION SYSTEMINFORMATION SYSTEM
SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL
MACHINE CONTROL CONTROL ACTIONS OF EQUIPMENT OPERATIONAL
COMPUTER-AIDED-DESIGN DESIGN NEW PRODUCTS KNOWLEDGE
PRODUCTION PLANNING DECIDE NUMBER, SCHEDULE OF PRODUCTS MANAGEMENT
FACILITIES LOCATION DECIDE WHERE TO LOCATE FACILITIES STRATEGIC
2.2.2626 Prof Jess Role @ UEAB 2008
FINANCE & ACCOUNTING FINANCE & ACCOUNTING INFORMATION SYSTEMINFORMATION SYSTEM
SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL
ACCOUNTS RECEIVABLE TRACK MONEY OWED TO FIRM OPERATIONAL
PORTFOLIO ANALYSIS DESIGN FIRM'S INVESTMENTS KNOWLEDGE
BUDGETING PREPARE SHORT TERM BUDGETS MANAGEMENT
PROFIT PLANNING PLAN LONG-TERM PROFITS STRATEGIC
2.2.2727 Prof Jess Role @ UEAB 2008
HUMAN RESOURCES HUMAN RESOURCES INFORMATION SYSTEMINFORMATION SYSTEM
SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL
TRAINING & DEVELOPMENT TRACK TRAINING, SKILLS, APPRAISALS OPERATIONAL
CAREER PATHING DESIGN EMPLOYEE CAREER PATHS KNOWLEDGE
COMPENSATION ANALYSIS MONITOR WAGES, SALARIES, BENEFITS MANAGEMENT
HUMAN RESOURCES PLANNING PLAN LONG-TERM LABOR FORCE NEEDS STRATEGIC
2.2.2828 Prof Jess Role @ UEAB 2008
EXAMPLES OF BUSINESS EXAMPLES OF BUSINESS PROCESSESPROCESSES
• MANUFACTURING & PRODUCTION: MANUFACTURING & PRODUCTION: Assembling product, checking Assembling product, checking quality, producing bills of materialsquality, producing bills of materials
• SALES & MARKETING: Identifying SALES & MARKETING: Identifying customers, creating customer customers, creating customer awareness, sellingawareness, selling
**
2.2.2929 Prof Jess Role @ UEAB 2008
EXAMPLES OF BUSINESS EXAMPLES OF BUSINESS PROCESSESPROCESSES
• FINANCE & ACCOUNTING: Paying FINANCE & ACCOUNTING: Paying creditors, creating financial creditors, creating financial statements, managing cash accountsstatements, managing cash accounts
• HUMAN RESOURCES: Hiring HUMAN RESOURCES: Hiring employees, evaluating performance, employees, evaluating performance, enrolling employees in enrolling employees in benefits benefits plansplans
**
2.2.3030 Prof Jess Role @ UEAB 2008
SHIPPING INVENTORY
PLANNING & FORECASTING
ORDER PROCESSING
PRODUCTION
PROCUREMENT
ACCOUNTING
SUPPLIERSCUSTOMERS
LOGISTICS SERVICES
DISTRIBUTORS
INTRANETINTRANET
SUPPLY-CHAIN MANAGEMENT
2.2.3131 Prof Jess Role @ UEAB 2008
HOW INFORMATION SYSTEMS HOW INFORMATION SYSTEMS FACILITATES SUPPLY CHAIN FACILITATES SUPPLY CHAIN
MANAGEMENTMANAGEMENT
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...
2.2.3232 Prof Jess Role @ UEAB 2008
TRADITIONALTRADITIONALVIEW OF SYSTEMSVIEW OF SYSTEMS
• WITHIN THE BUSINESS: There are WITHIN THE BUSINESS: There are functions, each having its uses of functions, each having its uses of information systemsinformation systems
• OUTSIDE THE ORGANIZATIONOUTSIDE THE ORGANIZATION’’S S BOUNDARIES: There are customers and BOUNDARIES: There are customers and vendorsvendors
FUNCTIONS TEND TO WORK IN ISOLATIONFUNCTIONS TEND TO WORK IN ISOLATION**
2.2.3333 Prof Jess Role @ UEAB 2008
Sales & Marketing
Accounting
Finance
Manufacturing
Human Resources
ENTERPRISE SYSTEMENTERPRISE SYSTEM
Business ProcessesBusiness Processes
Enterprise-wideEnterprise-wide Business ProcessesBusiness Processes
Vendors Customers
2.2.3434 Prof Jess Role @ UEAB 2008
BENEFITS OF ENTERPRISE BENEFITS OF ENTERPRISE SYSTEMSSYSTEMS
• FIRM STRUCTURE & ORGANIZATION: FIRM STRUCTURE & ORGANIZATION: One organizationOne organization
• MANAGEMENT: Firmwide knowledge-MANAGEMENT: Firmwide knowledge-based management processesbased management processes
• TECHNOLOGY: Unified platformTECHNOLOGY: Unified platform• BUSINESS: More efficient operations & BUSINESS: More efficient operations &
customer-driven business processescustomer-driven business processes
**
2.2.3535 Prof Jess Role @ UEAB 2008
CHALLENGES OF ENTERPRISE CHALLENGES OF ENTERPRISE SYSTEMSSYSTEMS
• DAUNTING IMPLEMENTATIONDAUNTING IMPLEMENTATION
• HIGH UP FRONT COSTS & FUTURE HIGH UP FRONT COSTS & FUTURE BENEFITSBENEFITS
• INFLEXIBILITYINFLEXIBILITY
• HARD TO REALIZE STRATEGIC HARD TO REALIZE STRATEGIC VALUEVALUE
**
2.2.3636 Prof Jess Role @ UEAB 2008
INDUSTRIAL NETWORKSINDUSTRIAL NETWORKS
LINK FIRMS INTO INDUSTRY-WIDE LINK FIRMS INTO INDUSTRY-WIDE SYSTEMSYSTEM
• HORIZONTAL: Link firms in same HORIZONTAL: Link firms in same industry, including competitorsindustry, including competitors
• VERTICAL: Link firm with suppliers VERTICAL: Link firm with suppliers in same industryin same industry
**
2.2.3737 Prof Jess Role @ UEAB 2008
INFORMATION INFORMATION
SYSTEMS IN THESYSTEMS IN THE
ENTERPRISEENTERPRISE