CHAPTER-2
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
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
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
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
6. EXECUTIVE SUPPORT SYSTEM
SUPPORTS THE STRATEGIC LEVEL OF
ORGANIZATION
HAS LIMITED ANALYTICAL CAPABILITIES
BUT USES SOPHISTICATED MODELING
TOOLS
USES INTERNAL AND EXTERNAL
INFORMATION
USE OF INFORMATION SYSTEMS FOR
COORDINATING ALL THE BUSINESS
PROCESSES RELATED TO DEALING
WITH CUSTOMERS
INTERRELATED NETWORK OF FACILITIES
AND DISTRIBUTION METHODS THAT
OBTAIN MATERIALS, TRANSFORMS
MATERIALS INTO FINISHED GOODS,
AND DELIVER THE FINISHED GOODS
TO CUSTOMERS
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
AN INTEGRATED INFORMATION SYSTEM,
WHICH FACILITATES THE EXCHANGE OF
DATA AMONG CORPORATE DIVISIONS
THROUGH UNIFICATION OF KEY
BUSINESS PROCESSES
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
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