Information System Enterprice
- 1. INFORMATIONINFORMATION SYSTEMS IN THESYSTEMS IN THE ENTERPRISEENTERPRISE YULISA ROSLIANAYULISA ROSLIANA [email protected]@gmail.com http://sif.uin-suska.ac.id/ http://fst.uin-suska.ac.id/ http
- 2. – What are the key system applications in a business? What role do they play? – How do information systems support the major business functions? – Why should managers pay attention to business processes? Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise OBJECTIVES
- 3. – What are the business benefits of using collaborative commerce, private industrial networks and enterprise systems? – What types of information systems are used by companies that operate internationally? Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise OBJECTIVES
- 4. 1. Integration: Different systems serve variety of functions, connecting organizational levels difficult, costly 2. Enlarging scope of management thinking: Huge system investments, long development time must be guided by common objectives Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise MANAGEMENT CHALLENGES
- 5. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise Types of Information Systems Figure 2-1 KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
- 6. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise Major 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 Systems (TPS)Transaction Processing Systems (TPS) KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
- 7. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise TYPES OF INFORMATION SYSTEMS Figure 2-2
- 8. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Transaction Processing Systems (TPS):Transaction Processing Systems (TPS): • Basic business systems that serve theBasic business systems that serve the operational leveloperational level • A computerized system that performs andA computerized system that performs and records the daily routine transactionsrecords the daily routine transactions necessary to the conduct of the businessnecessary to the conduct of the business
- 9. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise Payroll TPS Figure 2-3 KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
- 10. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise Types of TPS Systems Figure 2-4 KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
- 11. Knowledge Work Systems (KWS): Knowledge level – Inputs: Design specs – Processing: Modeling – Outputs: Designs, graphics – Users: Technical staff Example: Engineering work station Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
- 12. Management Information System (MIS): Management level – Inputs: High volume data – Processing: Simple models – Outputs: Summary reports – Users: Middle managers Example: Annual budgeting Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
- 13. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise Figure 2-5 KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Management Information System (MIS)
- 14. – Structured and semi-structured decisions – Report control oriented – Past and present data – Internal orientation – Lengthy design process Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Management Information System (MIS)
- 15. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise Decision Support System (DSS): Management level – Inputs: Low volume data – Processing: Interactive – Outputs: Decision analysis – Users: Professionals, staff Example: Contract cost analysis KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
- 16. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise Figure 2-6 KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Decision Support System (DSS)
- 17. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise Figure 2-7 KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Decision Support System (DSS)
- 18. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise Executive Support System (ESS): Strategic level – Inputs: Aggregate data – Processing: Interactive – Outputs: Projections – Users: Senior managers Example: 5-year operating plan KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
- 19. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Executive Support System (ESS) Figure 2-8
- 20. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise – Top level management – Designed to the individual – Ties CEO to all levels – Very expensive to keep up – Extensive support staff KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Executive support system (ESS)
- 21. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise INTERRELATIONSHIPS AMONG SYSTEMS Figure 2-9
- 22. Major functions of systems: – Sales management, market research, promotion, pricing, new products Major application systems: – Sales order info system, market research system, pricing system Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Sales and Marketing Systems
- 23. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise 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 SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Sales and Marketing Systems
- 24. 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 Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise Manufacturing and Production Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
- 25. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise 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 Manufacturing and Production Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
- 26. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise Overview of Inventory Systems Figure 2-10 SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
- 27. Major functions of systems: – Budgeting, general ledger, billing, cost accounting Major application systems: – General ledger, accounts receivable, accounts payable, budgeting, funds management systems Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise Financing and Accounting Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
- 28. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise 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 Financing and Accounting Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
- 29. 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 Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Human Resource Systems
- 30. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise 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 Human Resource Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
- 31. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise Figure 2-11 Human Resource Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
- 32. Business processes – Manner in which work is organized, coordinated, and focused to produce a valuable product or service – Concrete work flows of material, information, and knowledge—sets of activities Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise Business Processes and Information Systems INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
- 33. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES – Unique ways to coordinate work, information, and knowledge – Ways in which management chooses to coordinate work Business Processes and Information Systems
- 34. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise Business Processes and Information Systems INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Information systems help organizations – Achieve great efficiencies by automating parts of processes – Rethink and streamline processes
- 35. – Manufacturing and production: Assembling product, checking quality, producing bills of materials – Sales and marketing: Identifying customers, creating customer awareness, selling Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise Examples of Business Processes INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
- 36. – Finance and accounting: Paying creditors, creating financial statements, managing cash accounts – Human Resources: Hiring employees, evaluating performance, enrolling employees in benefits plans Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise Examples of Business Processes INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
- 37. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Cross-Functional Business Processes – Transcend boundary between sales, marketing, manufacturing, and research and development – Group employees from different functional specialties to a complete piece of work Example: Order Fulfillment Process Business Processes and Information Systems
- 38. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise Figure 2-12 The Order Fulfillment Process INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
- 39. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Customer Relationship Management (CRM) – Manages all ways used by firms to deal with existing and potential new customers – Business and Technology discipline – Uses information system to coordinate entire business processes of a firm Customer Relationship Management (CRM)
- 40. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES – Provides end-to-end customer care – Provides a unified view of customer across the company – Consolidates customer data from multiple sources and provides analytical tools for answering questions Customer Relationship Management (CRM)
- 41. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Customer Relationship Management (CRM) Figure 2-13
- 42. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Supply Chain Management (SCM) – Close linkage and coordination of activities involved in buying, making, and moving a product – Integrates supplier, manufacturer, distributor, and customer logistics time – Reduces time, redundant effort, and inventory costs Supply Chain Management (SCM)
- 43. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Supply Chain – Network of organizations and business processes – Helps in procurement of materials, transformation of raw materials into intermediate and finished products Supply Chain Management (SCM)
- 44. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES – Helps in distribution of the finished products to customers – Includes reverse logistics - returned items flow in the reverse direction from the buyer back to the seller Supply Chain Management (SCM)
- 45. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Supply Chain Management Figure 2-14
- 46. – Decide when, what to produce, store, move – Rapidly communicate orders – Communicate orders, track order status – Check inventory availability, monitor levels – Track shipments – Plan production based on actual demand – Rapidly communicate product design change – Provide product specifications – Share information about defect rates, returns Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise How Information Systems Facilitate Supply Chain Management INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
- 47. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES 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 Supply Chain Management (SCM)
- 48. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES – 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 Supply Chain Management (SCM)
- 49. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES – 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 Collaborative Commerce
- 50. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise Figure 2-15 INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Collaborative Commerce
- 51. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Private Industrial Networks – Web-enabled networks – Link systems of multiple firms in an industry – Coordinate transorganizational business processes Industrial Networks
- 52. – Within the business: There are functions, each having its uses of information systems – Outside the organization’s boundaries: There are customers and vendors Functions tend to work in isolation Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise Traditional View of the Systems INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
- 53. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise Figure 2-16 Traditional View of the Systems INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
- 54. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise Figure 2-17 Enterprise Systems INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
- 55. – Firm structure and organization: One organization – Management: Firm-wide knowledge-based management processes – Technology: Unified platform – Business: More efficient operations and customer- driven business processes Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise Benefits of Enterprise Systems INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
- 56. – Difficult to build: Require fundamental changes in the way the business operates – Technology: Require complex pieces of software and large investments of time, money, and expertise – Centralized organizational coordination and decision making: Not the best way for the firms to operate Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise Challenges of Enterprise Systems INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
- 57. Four main ways of organizing businesses internationally: – Domestic Exporter: Heavy centralization of corporate activities in the home country of origin – Multinational: Financial management and control out of a central home base, production, sales and marketing operations decentralized Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise INTERNATIONAL INFORMATION SYSTEMS Forms of Global Business Organization
- 58. – Franchiser: Product created, designed, financed, and produced in the home country, relies on foreign personnel for production, marketing and human resources – Transnational: No national headquarters; value-added activities managed from a global perspective, no reference to national borders, sources of supply and demand and local competitive advantage optimized Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise INTERNATIONAL INFORMATION SYSTEMS Forms of Global Business Organization
- 59. Four types of system configuration: – Centralized Systems – Duplicated Systems – Decentralized Systems – Networked Systems Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise INTERNATIONAL INFORMATION SYSTEMS Global System Configuration
- 60. Essentials of Management Information SystemsEssentials of Management Information Systems Chapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise Global System Configuration INTERNATIONAL INFORMATION SYSYTEMS Figure 2-18
- 61. 2 INFORMATIONINFORMATION SYSTEMS IN THESYSTEMS IN THE ENTERPRISEENTERPRISE Chapter