2 INFORMATION  SYSTEMS IN THE ENTERPRISE Chapter
Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Major Types of Systems Executive Support Systems (ESS) Decision Support Systems (DSS) Management Information Systems (MIS) Transaction Processing Systems (TPS) KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Enterprise Systems INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Figure 2-17
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 Systems Chapter 2 Information Systems in the Enterprise Business Processes and Information Systems INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Unique ways to coordinate work,  information, and knowledge Ways in which management chooses  to coordinate work Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Business Processes and Information Systems
Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Figure 2-16 Traditional View of the Systems INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Transaction Processing Systems (TPS): Basic business systems that serve the operational level A computerized system that performs and records the daily routine transactions necessary to the conduct of the business
Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Types of TPS Systems KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Figure 2-4
System Architecture: Transaction Processing System
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 Systems Chapter 2 Information Systems in the Enterprise Financing and Accounting Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
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 Systems Chapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Sales and Marketing 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 Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Manufacturing and Production Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
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 Systems Chapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Human Resource Systems
Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Human Resource Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Figure 2-11
Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Payroll TPS KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Figure 2-3
System Example: Payroll System (TPS)
Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Overview of Inventory Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Figure 2-10
Management Information System (MIS) Management Information System (MIS) An MIS provides managers with information and support for effective decision making, and provides feedback on daily operations. MIS provides information to the users in the form of reports Output, or reports, are usually generated through accumulation of transaction processing data. MIS is an integrated collection of subsystems, which are typically organized along functional lines within an organization.
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 Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Structured and semi-structured decisions Report control oriented Past and present data Internal orientation Lengthy design process Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Management Information System (MIS)
Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Management Information System (MIS) Figure 2-5
System Architecture: Management Information System
Management Information System Scheduled reports Key-indicator reports Exception reports Ad hoc (demand) reports Drill-down reports Creates reports managers can use  to make routine business decisions MIS
Outputs of a Management Information System Scheduled Reports Produced periodically, or on a schedule (daily, weekly, monthly).
Key-Indicator Report Summarizes the previous day’s critical activities and typically available at the beginning of each day.
Demand Report Gives certain information at a manager’s request .   Exception Report Automatically produced when a situation is unusual or requires management action.
Drill Down Reports Provide detailed data about a situation.
Decision Support System (DSS): Management level Inputs:  Low volume data Processing:  Interactive Outputs:  Decision analysis Users:  Professionals, staff   Example: Contract cost analysis Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Decision Support System (DSS) Figure 2-7
Four Types of Models
Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Decision Support System (DSS) Figure 2-6
Top level management Designed to the individual Ties CEO to all levels Very expensive to keep up Extensive support staff Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Executive support system (ESS)
Executive Support System (ESS): Strategic level Inputs:  Aggregate data Processing:  Interactive Outputs:  Projections Users:  Senior managers   Example: 5-year operating plan Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Executive Support System (ESS) Figure 2-8
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 Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Business Processes and Information Systems
Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise The Order Fulfillment Process INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Figure 2-12
Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Types of Information Systems KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Figure 2-1
Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise TYPES OF INFORMATION SYSTEMS Figure 2-2
Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTERRELATIONSHIPS AMONG SYSTEMS Figure 2-9
 
2 INFORMATION  SYSTEMS IN THE ENTERPRISE Chapter
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 Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Information systems help organizations   Achieve great efficiencies by automating  parts of processes  Rethink and streamline processes Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Business Processes and Information Systems INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Human Resource Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
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 Systems Chapter 2 Information Systems in the Enterprise Examples of Business Processes INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Manufacturing and production:  Assembling product, checking quality, producing bills of materials Sales and marketing:  Identifying customers, creating customer awareness, selling Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Examples of Business Processes INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

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Types Of Information Systems

  • 1. 2 INFORMATION SYSTEMS IN THE ENTERPRISE Chapter
  • 2. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Major Types of Systems Executive Support Systems (ESS) Decision Support Systems (DSS) Management Information Systems (MIS) Transaction Processing Systems (TPS) KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
  • 3. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Enterprise Systems INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Figure 2-17
  • 4. 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 Systems Chapter 2 Information Systems in the Enterprise Business Processes and Information Systems INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
  • 5. Unique ways to coordinate work, information, and knowledge Ways in which management chooses to coordinate work Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Business Processes and Information Systems
  • 6. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Figure 2-16 Traditional View of the Systems INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
  • 7. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Transaction Processing Systems (TPS): Basic business systems that serve the operational level A computerized system that performs and records the daily routine transactions necessary to the conduct of the business
  • 8. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Types of TPS Systems KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Figure 2-4
  • 10. 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 Systems Chapter 2 Information Systems in the Enterprise Financing and Accounting Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
  • 11. 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 Systems Chapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Sales and Marketing Systems
  • 12. 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 Systems Chapter 2 Information Systems in the Enterprise Manufacturing and Production Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
  • 13. 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 Systems Chapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Human Resource Systems
  • 14. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Human Resource Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Figure 2-11
  • 15. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Payroll TPS KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Figure 2-3
  • 16. System Example: Payroll System (TPS)
  • 17. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Overview of Inventory Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Figure 2-10
  • 18. Management Information System (MIS) Management Information System (MIS) An MIS provides managers with information and support for effective decision making, and provides feedback on daily operations. MIS provides information to the users in the form of reports Output, or reports, are usually generated through accumulation of transaction processing data. MIS is an integrated collection of subsystems, which are typically organized along functional lines within an organization.
  • 19. 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 Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
  • 20. Structured and semi-structured decisions Report control oriented Past and present data Internal orientation Lengthy design process Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Management Information System (MIS)
  • 21. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Management Information System (MIS) Figure 2-5
  • 22. System Architecture: Management Information System
  • 23. Management Information System Scheduled reports Key-indicator reports Exception reports Ad hoc (demand) reports Drill-down reports Creates reports managers can use to make routine business decisions MIS
  • 24. Outputs of a Management Information System Scheduled Reports Produced periodically, or on a schedule (daily, weekly, monthly).
  • 25. Key-Indicator Report Summarizes the previous day’s critical activities and typically available at the beginning of each day.
  • 26. Demand Report Gives certain information at a manager’s request . Exception Report Automatically produced when a situation is unusual or requires management action.
  • 27. Drill Down Reports Provide detailed data about a situation.
  • 28. Decision Support System (DSS): Management level Inputs: Low volume data Processing: Interactive Outputs: Decision analysis Users: Professionals, staff Example: Contract cost analysis Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
  • 29. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Decision Support System (DSS) Figure 2-7
  • 30. Four Types of Models
  • 31. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Decision Support System (DSS) Figure 2-6
  • 32. Top level management Designed to the individual Ties CEO to all levels Very expensive to keep up Extensive support staff Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Executive support system (ESS)
  • 33. Executive Support System (ESS): Strategic level Inputs: Aggregate data Processing: Interactive Outputs: Projections Users: Senior managers Example: 5-year operating plan Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
  • 34. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Executive Support System (ESS) Figure 2-8
  • 35. 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 Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Business Processes and Information Systems
  • 36. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise The Order Fulfillment Process INTEGRATING FUNCTIONS AND BUSINESS PROCESSES Figure 2-12
  • 37. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Types of Information Systems KEY SYSTEM APPLICATIONS IN THE ORGANIZATION Figure 2-1
  • 38. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise TYPES OF INFORMATION SYSTEMS Figure 2-2
  • 39. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTERRELATIONSHIPS AMONG SYSTEMS Figure 2-9
  • 40.  
  • 41. 2 INFORMATION SYSTEMS IN THE ENTERPRISE Chapter
  • 42. 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 Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
  • 43. Information systems help organizations Achieve great efficiencies by automating parts of processes Rethink and streamline processes Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Business Processes and Information Systems INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
  • 44. Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Human Resource Systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
  • 45. 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 Systems Chapter 2 Information Systems in the Enterprise Examples of Business Processes INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
  • 46. Manufacturing and production: Assembling product, checking quality, producing bills of materials Sales and marketing: Identifying customers, creating customer awareness, selling Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Examples of Business Processes INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Editor's Notes

  • #24: CD screentour: MIS