Download - 2.1 © 2002 by Prentice Hall c h a p t e r 2 2 INFORMATION SYSTEMS IN THE ENTERPRISE ENTERPRISE
2.2.11 © 2002 by Prentice Hall
c h a p t e r
22INFORMATION INFORMATION
SYSTEMS IN THESYSTEMS IN THE
ENTERPRISEENTERPRISE
2.2.22 © 2002 by Prentice Hall
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
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© 2002 by Prentice Hall
2.2.33 © 2002 by Prentice Hall
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
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© 2002 by Prentice Hall
2.2.44 © 2002 by Prentice Hall
MANAGEMENT MANAGEMENT CHALLENGESCHALLENGES
• KEY SYSTEM APPLICATIONSKEY SYSTEM APPLICATIONS
• FUNCTIONAL PERSPECTIVE OF FUNCTIONAL PERSPECTIVE OF SYSTEMSSYSTEMS
• INTEGRATING FUNCTIONS & INTEGRATING FUNCTIONS & PROCESSESPROCESSES
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2.2.55 © 2002 by Prentice Hall
MANAGEMENT MANAGEMENT CHALLENGESCHALLENGES
1. INTEGRATION:1. INTEGRATION: Different systems serve 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:THINKING: Huge system investments, Huge system investments, long development time must be guided long development time must be guided by common objectives by common objectives
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2.2.66 © 2002 by Prentice Hall
TYPES OF INFORMATION SYSTEMSTYPES OF INFORMATION SYSTEMS
DATA WORKERSDATA WORKERS
KIND OF SYSTEM GROUPS SERVEDKIND OF SYSTEM GROUPS SERVED
STRATEGIC LEVEL SENIOR STRATEGIC LEVEL SENIOR MANAGERSMANAGERS
MANAGEMENT LEVEL MIDDLE MANAGEMENT LEVEL MIDDLE MANAGERSMANAGERS
OPERATIONAL OPERATIONAL
OPERATIONAL LEVEL OPERATIONAL LEVEL MANAGERS MANAGERS
KNOWLEDGE LEVEL KNOWLEDGE &KNOWLEDGE LEVEL KNOWLEDGE &
SALES & MANUFACTURING FINANCE ACCOUNTING HUMANSALES & MANUFACTURING FINANCE ACCOUNTING HUMAN RESOURCESRESOURCESMARKETINGMARKETING
2.2.77 © 2002 by Prentice Hall
MAJOR TYPES OF SYSTEMSMAJOR TYPES OF SYSTEMS
• EXECUTIVE SUPPORT SYSTEMS EXECUTIVE SUPPORT SYSTEMS (ESS)(ESS)• DECISION SUPPORT SYSTEMS DECISION SUPPORT SYSTEMS (DSS)(DSS)• MANAGEMENT INFORMATION SYSTEMS MANAGEMENT INFORMATION SYSTEMS (MIS)(MIS)• KNOWLEDGE WORK SYSTEMS KNOWLEDGE WORK SYSTEMS (KWS)(KWS)• OFFICE AUTOMATION SYSTEMS OFFICE AUTOMATION SYSTEMS (OAS)(OAS)• TRANSACTION PROCESSING TRANSACTION PROCESSING SYSTEMS SYSTEMS
(TPS)(TPS)
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2.2.88 © 2002 by Prentice Hall
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
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2.2.99 © 2002 by Prentice Hall
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, operations
MAJOR 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
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2.2.1010 © 2002 by Prentice Hall
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 accounting
MAJOR APPLICATION SYSTEMS:MAJOR APPLICATION SYSTEMS:
• General ledger, accounts receivable, General ledger, accounts receivable, accounts payable, budgeting, funds accounts payable, budgeting, funds management systemsmanagement systems
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2.2.1111 © 2002 by Prentice Hall
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, systems, career path systems, personnel training systemspersonnel training systems
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2.2.1212 © 2002 by Prentice Hall
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, curriculum class control system, alumni benefactor systemsystem, alumni benefactor system
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2.2.1313 © 2002 by Prentice Hall
KNOWLEDGE LEVELKNOWLEDGE LEVEL• INPUTS:INPUTS: DESIGN SPECS DESIGN SPECS• PROCESSING:PROCESSING: MODELLING MODELLING• OUTPUTS:OUTPUTS: DESIGNS, GRAPHICS DESIGNS, GRAPHICS• USERS:USERS: TECHNICAL STAFF TECHNICAL STAFF
EXAMPLE: ENGINEERING WORK EXAMPLE: ENGINEERING WORK STATION STATION
KNOWLEDGE WORK SYSTEMS KNOWLEDGE WORK SYSTEMS (KWS)(KWS)
2.2.1414 © 2002 by Prentice Hall
OFFICE AUTOMATION SYSTEMS OFFICE AUTOMATION SYSTEMS (OAS)(OAS)
• TOWARD A “PAPERLESS” OFFICETOWARD A “PAPERLESS” 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 © 2002 by Prentice Hall
MANAGEMENT LEVELMANAGEMENT LEVEL
• INPUTS:INPUTS: HIGH VOLUME DATA HIGH VOLUME DATA
• PROCESSING:PROCESSING: SIMPLE MODELS SIMPLE MODELS
• OUTPUTS:OUTPUTS: SUMMARY REPORTS SUMMARY REPORTS
• USERS:USERS: MIDDLE MANAGERS MIDDLE MANAGERS
EXAMPLE: ANNUAL BUDGETINGEXAMPLE: ANNUAL BUDGETING
MANAGEMENT INFORMATION MANAGEMENT INFORMATION SYSTEMS SYSTEMS (MIS)(MIS)
2.2.1616 © 2002 by Prentice Hall
• 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
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MANAGEMENT INFORMATION MANAGEMENT INFORMATION SYSTEMS SYSTEMS (MIS)(MIS)
2.2.1717 © 2002 by Prentice Hall
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 © 2002 by Prentice Hall
MANAGEMENT LEVELMANAGEMENT LEVEL
• INPUTS:INPUTS: LOW VOLUME DATA LOW VOLUME DATA
• PROCESSING:PROCESSING: INTERACTIVE INTERACTIVE
• OUTPUTS:OUTPUTS: DECISION ANALYSIS DECISION ANALYSIS
• USERS:USERS: PROFESSIONALS, STAFF PROFESSIONALS, STAFF
EXAMPLE: CONTRACT COST ANALYSISEXAMPLE: CONTRACT COST ANALYSIS
DECISION SUPPORT SYSTEMS DECISION SUPPORT SYSTEMS (DSS)(DSS)
2.2.1919 © 2002 by Prentice Hall
• 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
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DECISION SUPPORT SYSTEMS DECISION SUPPORT SYSTEMS (DSS)(DSS)
2.2.2020 © 2002 by Prentice Hall
STRATEGIC LEVELSTRATEGIC LEVEL
• INPUTS:INPUTS: AGGREGATE DATA AGGREGATE DATA
• PROCESSING:PROCESSING: INTERACTIVE INTERACTIVE
• OUTPUTS:OUTPUTS: PROJECTIONS PROJECTIONS
• USERS:USERS: SENIOR MANAGERS SENIOR MANAGERS
EXAMPLE: 5 YEAR OPERATING PLANEXAMPLE: 5 YEAR OPERATING PLAN
EXECUTIVE SUPPORT SYSTEMS EXECUTIVE SUPPORT SYSTEMS (ESS)(ESS)
2.2.2121 © 2002 by Prentice Hall
• 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
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EXECUTIVE SUPPORT SYSTEMS EXECUTIVE SUPPORT SYSTEMS (ESS)(ESS)
2.2.2222 © 2002 by Prentice Hall
INTERRELATIONSHIPS AMONG SYSTEMSINTERRELATIONSHIPS AMONG SYSTEMS
ESS
TPSKWS
OAS
DSSMIS
2.2.2323 © 2002 by Prentice Hall
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
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2.2.2424 © 2002 by Prentice Hall
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 © 2002 by Prentice Hall
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 © 2002 by Prentice Hall
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 © 2002 by Prentice Hall
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 © 2002 by Prentice Hall
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:SALES & MARKETING: Identifying Identifying customers, creating customer customers, creating customer awareness, sellingawareness, selling
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2.2.2929 © 2002 by Prentice Hall
EXAMPLES OF BUSINESS EXAMPLES OF BUSINESS PROCESSESPROCESSES
• FINANCE & ACCOUNTING:FINANCE & ACCOUNTING: Paying Paying creditors, creating financial creditors, creating financial statements, managing cash accountsstatements, managing cash accounts
• HUMAN RESOURCES:HUMAN RESOURCES: Hiring Hiring employees, evaluating performance, employees, evaluating performance, enrolling employees in enrolling employees in benefits benefits plansplans
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2.2.3030 © 2002 by Prentice Hall
SHIPPINGSHIPPING INVENTORYINVENTORY
PLANNING & PLANNING & FORECASTINGFORECASTING
ORDER ORDER PROCESSINGPROCESSING
PRODUCTIONPRODUCTION
PROCUREMENTPROCUREMENT
ACCOUNTINGACCOUNTING
SUPPLIERSSUPPLIERSCUSTOMERSCUSTOMERS
LOGISTICS LOGISTICS SERVICESSERVICES
DISTRIBUTORSDISTRIBUTORS
INTRANETINTRANETINTRANET
SUPPLY-CHAIN MANAGEMENTSUPPLY-CHAIN MANAGEMENT
2.2.3131 © 2002 by Prentice Hall
HOW INFORMATION SYSTEMS HOW INFORMATION SYSTEMS FACILITATES SUPPLY CHAIN FACILITATES SUPPLY CHAIN
MANAGEMENTMANAGEMENT
DECIDE WHEN, WHAT TO PRODUCE, STORE, MOVE…DECIDE WHEN, WHAT TO PRODUCE, STORE, MOVE…RAPIDLY COMMUNICATE ORDERS…RAPIDLY COMMUNICATE ORDERS…TRACK ORDER STATUS…TRACK ORDER STATUS…CHECK INVENTORY AVAILABILITY, MONITOR LEVELS…CHECK INVENTORY AVAILABILITY, MONITOR LEVELS…TRACK SHIPMENTS…TRACK SHIPMENTS… PLAN PRODUCTION BASED ON ACTUAL DEMAND…PLAN PRODUCTION BASED ON ACTUAL DEMAND…RAPIDLY COMMUNICATE PRODUCT DESIGN CHANGES…RAPIDLY COMMUNICATE PRODUCT DESIGN CHANGES…PROVIDE PRODUCT SPECIFICATIONS…PROVIDE PRODUCT SPECIFICATIONS…SHARE INFORMATION ABOUT DEFECT RATES, RETURNS...SHARE INFORMATION ABOUT DEFECT RATES, RETURNS...
2.2.3232 © 2002 by Prentice Hall
TRADITIONALTRADITIONALVIEW OF SYSTEMSVIEW OF SYSTEMS
• WITHIN THE BUSINESS:WITHIN THE BUSINESS: There are There are functions, each having its uses of functions, each having its uses of information systemsinformation systems
• OUTSIDE THE ORGANIZATION’S OUTSIDE THE ORGANIZATION’S BOUNDARIES:BOUNDARIES: There are customers and There are customers and vendorsvendors
FUNCTIONS TEND TO WORK IN FUNCTIONS TEND TO WORK IN ISOLATIONISOLATION
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2.2.3333 © 2002 by Prentice Hall
Sales & Marketing
Accounting
Finance
Manufacturing
Human Resources
ENTERPRISE SYSTEMENTERPRISE SYSTEM
Business ProcessesBusiness Processes
Enterprise-wideEnterprise-wide Business ProcessesBusiness Processes
Vendors Customers
2.2.3434 © 2002 by Prentice Hall
BENEFITS OF ENTERPRISE BENEFITS OF ENTERPRISE SYSTEMSSYSTEMS
• FIRM STRUCTURE & ORGANIZATION:FIRM STRUCTURE & ORGANIZATION: One organizationOne organization
• MANAGEMENT:MANAGEMENT: Firmwide knowledge- Firmwide knowledge-based management processesbased management processes
• TECHNOLOGY:TECHNOLOGY: Unified platform Unified platform• BUSINESS:BUSINESS: More efficient operations & More efficient operations &
customer-driven business processescustomer-driven business processes
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2.2.3535 © 2002 by Prentice Hall
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
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2.2.3636 © 2002 by Prentice Hall
INDUSTRIAL NETWORKSINDUSTRIAL NETWORKS
LINK FIRMS INTO INDUSTRY-WIDE LINK FIRMS INTO INDUSTRY-WIDE SYSTEMSYSTEM
• HORIZONTAL: HORIZONTAL: Link firms in same Link firms in same industry, including competitorsindustry, including competitors
• VERTICAL: VERTICAL: Link firm with suppliers Link firm with suppliers in same industryin same industry
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