different types of information systems transaction processing system

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CHAPTER-2

INFORMATION SYSTEMS

IN THE ENTERPRISE

Management Information Systems 8/e

Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Types of Information Systems

Figure 2-1

Management Information Systems 8/e

Chapter 2 Information Systems in the Enterprise

MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Figure 2-2

DIFFERENT TYPES OF

INFORMATION SYSTEMS

1. TRANSACTION PROCESSING

SYSTEM

SERVE THE OPERATIONAL LEVEL OF

ORGANIZATION

MONITORS AND SUPPORTS THE

ORGANIZATION’S BASIC BUSINESS

TRANSACTIONS

DIFFERENT TYPES OF

INFORMATION SYSTEMS

1. 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

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

DIFFERENT TYPES OF

INFORMATION SYSTEMS

4. MANAGEMENT INFORMATION SYSTEM

PROVIDES MANAGEMENT WITH PERIODIC

REPORTS AND ACCESS TO THE

ORGANIZATION’S CURRENT AND PAST

PERFORMANCE

MIS REPORTS ARE GENERATED FROM DATA

FROM TPS

ARE NOT HIGHLY ANALYTICAL

ARE RELATIVELY INFLEXIBLE

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

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

CUSTOMER RELATIONSHIP

MANAGEMENT (CRM)

USE OF INFORMATION SYSTEMS FOR

COORDINATING ALL THE BUSINESS

PROCESSES RELATED TO DEALING

WITH CUSTOMERS

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

SUPPLY CHAIN

MANAGEMENT

Limitations:

Inefficiencies can waste as much as 25% of company’s operating costs

Bullwhip Effect: Information about the demand for the product gets distorted as it passes from one entity to next

Management Information Systems 8/e

Chapter 2 Information Systems in the Enterprise

ENTERPRISE APPLICATIONS

Supply Chain Management

Figure 2-15

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

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

Management Information Systems 8/e

Chapter 2 Information Systems in the Enterprise

ENTERPRISE APPLICATIONS

Collaborative Commerce

Figure 2-16

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

ENTERPRISE RESOURCE

PLANNING (ERP)

AN INTEGRATED INFORMATION SYSTEM,

WHICH FACILITATES THE EXCHANGE OF

DATA AMONG CORPORATE DIVISIONS

THROUGH UNIFICATION OF KEY

BUSINESS PROCESSES

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

DISADVANTAGES OF ERP

DIFFICULT TO IMPLEMENT

HIGH UP-FRONT COSTS FOR LONG-

TERM BENEFITS

DIFFICULT TO CHANGE

MAY LACK STRATEGIC BENEFITS FOR

THE FIRM

Knowledge Management

Systems

Discovering and codifying knowledge

Creating knowledge

Sharing knowledge

Distributing knowledge

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