TAPMI

IT For Business (ITS 5001)

IS Applications in Organizations

Selvaraj Vadivelu
Jan-Mar 2022
 Module 2
Organization as a matrix of Functions and Processes; IS Applications for organizational
(business processes) performance; Transaction Processing Systems (TPS); Management
Information Systems (MIS); Business Intelligence (BI); Decision Support Systems (DSS);
Enterprise Applications; Architecture; Enterprise systems; Intranets & Internet for flow of
information within firms and with suppliers & customers; Supply Chain
Management(SCM), Customer Relationship Management (CRM)

IS Applications Knowledge Management (KM), Collaboration;

HRIS Applications

E-Commerce: Buying and selling of goods and services over the internet – covering end to
end (Marketing to Payments)

TAPMI_PGDM_ITB_ITS5001_Selvaraj_Vadivelu_Jan_Mar_2022
 IS Applications in Organizations

• Organization: Functions and Processes

Corporate Functions
Business Processes
• IS Applications for organizational (business processes) performance
Transaction Processing Systems (TPS)
MIS; Business Intelligence (BI)
Decision Support Systems (DSS)
Executive Support Systems (ESS)

Reference: Chapters 2 & 6: Laudon, K. C., & Laudon, J. P. (2020). Management information systems: Managing the digital firm (16th
Edition), Pearson Education Limited

TAPMI_PGDM_ITB_ITS5001_Selvaraj_Vadivelu_Jan_Mar_2022
 IS Applications in Organizations
Organization: Functions and Processes
Functions (Departments)
• Eg. Marketing, Sales, Engineering, HR, Purchase, Administration, Finance
Business Processes
• Flows of material, information, knowledge
• Logically related set of tasks that define how specific business tasks are performed
• May be tied to a functional area or be cross-functional
• Business Processes interact with each other, and a collection of these business
processes constitute the entire business of the organization
• Eg. Order Fulfillment Process; Lead to Cash; Hire to Retire (H2R); Purchase to Payment
(P2P)
Organization
• A collection of Functions and Business Processes

TAPMI_PGDM_ITB_ITS5001_Selvaraj_Vadivelu_Jan_Mar_2022
 Figure 2.1 The Order Fulfillment
Process

Reference: Chapter 2: Laudon, K. C., & Laudon, J. P. (2020). Management information systems: Managing the digital firm (16th Edition),
Pearson Education Limited

Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved
 Lead to Cash Process (Source: SAP)

https://help.sap.com/viewer/fe1b9a180649472eb58843ec01732ed9/Current/en-US/03559e96735249e7bd37929f1f387b85.html

TAPMI_PGDM_ITB_ITS5001_Selvaraj_Vadivelu_Jan_Mar_2022
 IS Applications in Organizations
Organization: Functions and Processes

Examples of functional business processes

Manufacturing and production
• Assembling the product
Sales and marketing
• Identifying customers
Finance and accounting
• Creating financial statements
Human resources
• Hiring employees

TAPMI_PGDM_ITB_ITS5001_Selvaraj_Vadivelu_Jan_Mar_2022
 IS Applications in Organizations
IS Applications for organizational performance

IS Applications enable organizational performance through different levels of

management (Executive level, Middle Management level and Operational
level)
Transaction processing systems
• For the operational staff and managers
• Daily routine transactions of business are done and recorded using this
• Examples: sales order entry, payroll, shipping, employee joining, employee exit
• Support status tracking of operations and interfaces with external environment
• Enables predefined, structured goals and decision making

TAPMI_PGDM_ITB_ITS5001_Selvaraj_Vadivelu_Jan_Mar_2022
 Figure 2.2 A Payroll T PS

Reference: Chapter 2: Laudon, K. C., & Laudon, J. P. (2020). Management information systems: Managing the digital firm (16th Edition),
Pearson Education Limited

Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved
 TPS to BI

Chapter 3: Turban, E., Volonino, L., & Wood, G. R. (2016). Information technology for management: Advancing sustainable, profitable
business growth. (10th Edition), Wiley Publications. (RB2)

TAPMI_PGDM_ITB_ITS5001_Selvaraj_Vadivelu_Jan_Mar_2022
 IS Applications in Organizations
IS Applications for organizational performance

Systems for business intelligence

• Used to help managers and users make improved decisions
Management Information Systems
• Reports on firm’s current performance, based on data from TPS for Middle Management
• Answers routine questions with predefined procedure for answering them (Less analytic
capability)
Decision Support Systems
• Support nonroutine decision making at middle management level Eg. What is the impact on
production schedule if December sales doubled?
• May use external information as well TPS / MIS data
• Model driven DSS and Data Driven DSS
• Eg. Software cost estimation model; Attrition Model; Satisfaction level of a Customer Account

TAPMI_PGDM_ITB_ITS5001_Selvaraj_Vadivelu_Jan_Mar_2022
 Figure 2.4 Sample MIS Report
Consolidated Consumer Products Corporation Sales by Product
and Sales Region: 2019

Can be
enhanced
with
visualizations

Reference: Chapter 2: Laudon, K. C., & Laudon, J. P. (2020). Management information systems: Managing the digital firm (16th Edition), Pearson
Education Limited

TAPMI_PGDM_ITB_ITS5001_Selvaraj_Vadivelu_Jan_Mar_2022
 IS Applications in Organizations
IS Applications for organizational performance

Systems for business intelligence (Contd)

Executive Support Systems
• Enable senior management in their nonroutine decisions (Typically Strategic high risk and high
impact decisions)
• Requiring judgment, evaluation, and insight
• Example: Policy formulation and evaluation (Impact of policy to retrain people instead of letting
unutilized employees go) decisions

TAPMI_PGDM_ITB_ITS5001_Selvaraj_Vadivelu_Jan_Mar_2022
Figure 2.3 How Management Information Systems
Obtain Their Data from the Organization’s TPS

Reference: Chapter 2: Laudon, K. C., & Laudon, J. P. (2020). Management information systems: Managing the digital firm (16th Edition), Pearson
Education Limited

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 IS Applications in Organizations
Discussion

Identify the list of various functions (including those that are relatively recent Eg.
Innovation Evangelization) and show how they fit in the overall matrix of core business
processes and subprocesses in a matrix format. This will help in organizing the firm’s
policies and processes in a structured manner in their intranet for easy access and
reference.

<Assume a large organization in the IT industry for the above discussion>

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Meet you in Session 8!