2.1
LEARNING OBJECTIVES
• ANALYZE ROLES OF 6 TYPES OF
INFORMATION SYSTEMS
• DESCRIBE RELATIONSHIPS AMONG
INFORMATION SYSTEMS
• DISTINGUISH STRATEGIC
INFORMATION SYSTEMS
*
2.2
LEARNING OBJECTIVES
• DESCRIBE HOW INFORMATION
SYSTEMS SUPPORT LEVELS OF
BUSINESS STRATEGY
• EXPLAIN DIFFICULTIES OF
BUILDING, SUSTAINING STRATEGIC
INFORMATION SYSTEMS
*
2.3
MANAGEMENT CHALLENGES
• INTEGRATION:
– ENTERPRISE RESOURCE
MANAGEMENT
– CONNECTING ORGANIZATIONAL
LEVELS DIFFICULT, COSTLY
• SUSTAIN COMPETITIVE ADVANTAGE:
– INFO SYSTEMS MUST BE FLEXIBLE TO
ENSURE LONG-TERM PROFITS
*
2.4
TYPES OF INFORMATION SYSTEMS
KIND OF SYSTEM
GROUPS SERVED
STRATEGIC LEVEL
SENIOR
MANAGERS
MANAGEMENT LEVEL
MIDDLE
MANAGERS
KNOWLEDGE LEVEL
KNOWLEDGE &
DATA WORKERS
OPERATIONAL
LEVEL
2.5
SALES &
MARKETING
OPERATIONAL
MANAGERS
MANUFACTURING
FINANCE
ACCOUNTING
HUMAN
RESOURCES
MAJOR TYPES OF SYSTEMS
•
•
•
•
•
•
2.6
EXECUTIVE SUPPORT SYSTEMS (ESS)
MANAGEMENT INFORMATION SYSTEMS (MIS)
DECISION SUPPORT SYSTEMS (DSS)
KNOWLEDGE WORK SYSTEMS (KWS)
OFFICE AUTOMATION SYSTEMS (OAS)
TRANSACTION PROCESSING SYSTEMS (TPS)
*
TRANSACTION PROCESSING
SYSTEMS (TPS)
•
•
•
•
•
2.7
OPERATIONAL LEVEL
INPUTS: TRANSACTIONS, EVENTS
PROCESSING: UPDATING
OUTPUTS: DETAILED REPORTS
USERS: OPERATIONS PERSONNEL
EXAMPLE: ACCOUNTS PAYABLE
TPS
TYPICAL TPS APPLICATIONS
Sales & 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
*
TPS
2.8
TYPICAL TPS APPLICATIONS
Manufacturing & 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
TPS
2.9
*
TYPICAL TPS APPLICATIONS
Finance & Accounting Systems
MAJOR FUNCTIONS OF SYSTEMS:
• Budgeting; General Ledger; Billing:
Cost Accounting
MAJOR APPLICATION SYSTEMS:
• General Ledger; Accounts
Receivable / Payable; Budgeting;
Funds Management Systems
*
TPS
2.10
TYPICAL TPS APPLICATIONS
Human 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
TPS
2.11
*
TYPICAL TPS APPLICATIONS
Other 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
TPS
2.12
*
KNOWLEDGE WORK SYSTEMS (KWS)
•
•
•
•
•
2.13
KNOWLEDGE LEVEL
INPUTS: DESIGN SPECS
PROCESSING: MODELLING
OUTPUTS: DESIGNS, GRAPHICS
USERS: TECHNICAL STAFF
EXAMPLE: ENGINEERING WORK
STATION
OFFICE AUTOMATION SYSTEMS (OAS)
•
•
•
•
•
TOWARD A “PAPERLESS” OFFICE
REDESIGN OF WORK FLOW
INTEGRATED SOFTWARE
ERGONOMIC DESIGN
BRIGHT, CHEERFUL WORK SPACE
EXAMPLE: PRESENTATION GRAPHICS
2.14
MANAGEMENT INFORMATION
SYSTEMS (MIS)
•
•
•
•
•
MANAGEMENT LEVEL
INPUTS: HIGH VOLUME DATA
PROCESSING: SIMPLE MODELS
OUTPUTS: SUMMARY REPORTS
USERS: MIDDLE MANAGERS
EXAMPLE: ANNUAL BUDGETING
2.15
MANAGEMENT INFORMATION
SYSTEMS (MIS)
• STRUCTURED & SEMISTRUCTURED DECISIONS
• REPORT CONTROL ORIENTED
• PAST & PRESENT DATA
• INTERNAL ORIENTATION
• LENGTHY DESIGN PROCESS
*
2.16
TPS DATA FOR MIS APPLICATIONS
TPS
Order Processing
MIS
SALES
DATA
System
ORDER FILE
Materials Resource
Planning System
PRODUCTION MASTER FILE
General Ledger
System
ACCOUNTING FILES
2.17
UNIT
PRODUCT
COST
MIS
REPORTS
PRODUCT
CHANGE
DATA
EXPENSE
DATA
MIS FILES
MANAGERS
DECISION SUPPORT SYSTEMS (DSS)
•
•
•
•
•
MANAGEMENT LEVEL
INPUTS: LOW VOLUME DATA
PROCESSING: INTERACTIVE
OUTPUTS: DECISION ANALYSIS
USERS: PROFESSIONALS, STAFF
EXAMPLE: CONTRACT COST ANALYSIS
2.18
DECISION SUPPORT SYSTEMS (DSS)
•
•
•
•
•
2.19
FLEXIBLE, ADAPTABLE, QUICK
USER CONTROLS INPUTS/OUTPUTS
NO PROFESSIONAL PROGRAMMING
SUPPORTS DECISION PROCESS
SOPHISTICATED MODELING TOOLS
*
EXECUTIVE SUPPORT SYSTEMS
(ESS)
•
•
•
•
•
STRATEGIC LEVEL
INPUTS: AGGREGATE DATA
PROCESSING: INTERACTIVE
OUTPUTS: PROJECTIONS
USERS: SENIOR MANAGERS
EXAMPLE: 5 YEAR OPERATING PLAN
2.20
EXECUTIVE SUPPORT SYSTEMS
(ESS)
•
•
•
•
•
2.21
TOP LEVEL MANAGEMENT
DESIGNED TO THE INDIVIDUAL
TIES CEO TO ALL LEVELS
VERY EXPENSIVE TO KEEP UP
EXTENSIVE SUPPORT STAFF
*
INTERRELATIONSHIPS AMONG SYSTEMS
ESS
MIS
KWS
OAS
2.22
DSS
TPS
STRATEGIC ROLE OF INFORMATION
SYSTEMS
STRATEGIC INFO SYSTEM:
CAN CHANGE GOALS, OPERATIONS
PRODUCTS, SERVICES
ENVIRONMENT
TO GAIN COMPETITIVE ADVANTAGE
2.23
BUSINESS-LEVEL
STRATEGY
•
•
•
•
•
•
2.24
PRODUCT DIFFERENTIATION
FOCUSED DIFFERENTIATION
DATAMINING
SUPPLY CHAIN MANAGEMENT
EFFICIENT CUSTOMER RESPONSE
ENHANCING CORE COMPETENCIES
*
VALUE CHAIN MODEL
• HIGHLIGHTS PRIMARY & SUPPORT
ACTIVITIES THAT ADD VALUE TO
PRODUCTS, SERVICES
• PRIMARY: DIRECTLY RELATED TO
PRODUCTION, DISTRIBUTION
• SUPPORT: INFRASTRUCTURE,
HUMAN RESOURCES,
TECHNOLOGY, PROCUREMENT
2.25
*
COMPETITIVE FORCES MODEL
NEW
MARKET
ENTRANTS
SUBSTITUTE
PRODUCTS
& SERVICES
THE FIRM
SUPPLIERS
2.26
TRADITIONAL
COMPETITION
CUSTOMERS
MANAGING STRATEGIC
TRANSITION
•
•
•
•
2.27
SOCIOTECHNICAL SHIFT
MANAGE TRANSITIONS
VENDOR-MANAGED INVENTORIES
IDENTIFY TECHNOLOGY THAT
PROVIDES STRATEGIC ADVANTAGE
*
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2.28
2.29