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Laudon MIS Chapter 2
Laudon MIS Chapter 2
Fulfilling a customer order involves a complex set of steps that requires the
close coordination of the sales, accounting, and manufacturing functions.
Business Processes and Information Systems
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Types of Information Systems
(Systems for Managers)
Business intelligence
Business intelligence is a contemporary term for data
and software tools for organizing, analyzing and
providing access to data to help managers and other
enterprise users make improved decisions.
Business intelligence systems
Management information systems
Decision support systems
Executive support systems
Types of Information
Systems
Management Information Systems is the
study of information systems in business and
management.
MIS summarize and report on the company’s
basic operations using data supplied by
transaction processing systems.
Management Information Systems (MIS) –
provide information in the form of pre-
specified reports and displays to support
business decision making.
Types of Information Systems
In the system illustrated by this diagram, three TPS supply summarized transaction data to the MIS reporting system at the
end of the time period. Managers gain access to the organizational data through the MIS, which provides them with the
appropriate reports.
Sample MIS Report
This report, showing summarized annual sales data, was produced by the MIS in Figure 2-3.
Types of Information
Systems
Decision Support Systems (DSS) focus on
problem that are unique and rapidly
changing, for which the procedure for
arriving at a solution may not be fully
predefined in advance.
Decision Support Systems (DSS) – give
direct computer support to managers during
the decision making process.
Types of Information Systems
Voyage-estimating systems
Data driven DSS
This DSS operates on a powerful PC. It is used daily by managers who must develop bids on
shipping contracts.
Types of Information
Systems
Executive support Systems (ESS) address
non-routine decision requiring judgement,
evaluation, and insight because there is no
agreed-on procedure for arriving at a solution.
Executive support Systems (ESS) –
provide critical information from a wide variety
of internal and external sources (MIS, DSS,
and other sources) in easy-to-use displays to
executives and managers and tailored to the
information needs of executives.
Types of Information Systems
Marketing Systems
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Types of Information
Systems (Functions)
Human resource information systems (HRIS)
aids HR managers perform different activities
related to the human resources of their
organizations.
HRIS uses information technology to perform
various HR process, so as to eliminate the
complexity of performance of those tasks
manually.
HRIS provide information to managers throughout the firm
concerning the firm’s human resources.
INFORMATION SYSTEMS FROM A FUNCTIONAL
PERSPECTIVE
27
Types of Information
Systems (Functions)
Financial Management Information
Systems (FMIS) finds extensive application
in managing the financial matters of an
organization. The finance department of a
firm handles function related to capital
structuring, budgeting and control of funds.
FMIS provide information to managers
throughout the firm concerning the firm’s
financial activities.
Types of Information
Systems (Functions)
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Systems For Linking the
Enterprise Systems
Getting all the different kinds of systems in a
company to work together has proven a major
challenge. Typically, corporations are put together
both through normal “organic” growth and through
acquisition of smaller firms. Over a period of time,
corporations end up with a collection of systems,
most of them older, and face the challenge of
getting them all to “talk” with one another and
work together as one corporate system. There are
several solutions to this problem.
Systems For Linking the
Enterprise Systems
Enterprise applications
Systems for linking the enterprise
Span functional areas
Execute business processes across firm
Include all levels of management
Four major applications:
Enterprise systems
Supply chain management systems
Customer relationship management systems
Knowledge management systems
Types of Information Systems
(Major Enterprise Application)
Enterprise applications
automate processes that
span multiple business
functions and organizational
levels and may extend
outside the organization.
Enterprise Systems/ERP
Enterprise systems
Collects data from different firm functions and
stores data in single central data repository
Resolves problem of fragmented data
Enable:
Coordination of daily activities
Efficient response to customer orders (production,
inventory)
Help managers make decisions about daily operations
and longer-term planning
Enterprise Systems/ERP
• Enterprise systems provide a technology
platform where organization can integrate
and coordinate their major internal business
process.
• ERP integrate business processes in
manufacturing and production, finance and
accounting, sales and marketing, and human
resources into a single software system.
Traditional View of Systems
Enterprise Systems/ERP
How Enterprise Systems Work
Enterprise Systems/ERP
• Enterprise Software
• Built around thousands of predefined business
processes that reflect best practices
• Finance/accounting: General ledger, accounts payable,
etc.
• Human resources: Personnel administration, payroll, etc.
• Manufacturing/production: Purchasing, shipping, etc.
• Sales/marketing: Order processing, billing, sales planning,
etc.
Benefits /Business Value of Enterprise
Systems
Firm structure and organization: One
organization. Increase operational efficiency
Management: Firm-wide knowledge-based
management processes
Technology: Unified platform
Business: More efficient operations and
customer-driven business processes.
Enable rapid responses to customer
requests for information or products
Challenges of
Enterprise Systems
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
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Supply chain management
systems
Supply chain management is the close linkage and
coordination of activities involved in buying, making and
moving a product.
Firms use supply chain management (SCM) systems
to help manage relationships with their suppliers.
These systems help suppliers, purchasing firms,
distributors, and logistics companies share information
about orders, production, inventory levels, and delivery
of products and services so that they can source,
produce, and deliver goods and services efficiently.
Supply Chain Management (SCM) Systems
• Intranets:
• Intranets are simply internal company
website that are accessible only by
employees.
• The term intranet refers to an internal
network, in contrast to the Internet, which is
a public network linking organizations and
other external networks.
• Intranets use the same technologies and
techniques as the larger Internet
Intranets and Extranets
• Intranets:
• Internal networks built with same tools
and standards as Internet
• Used for internal distribution of
information to employees
• Typically utilize private portal providing
single point of access to several systems
• May connect to company’s transaction
systems
Intranets and Extranets
• Extranets:
• Intranets extended to authorized
users outside the company
• Expedite flow of information between
firm and its suppliers and customers
• Can be used to allow different firms to
collaborate on product design,
marketing, and production
Types of Information Systems
E-business
Use of digital technology and Internet to drive major
business processes
E-commerce
Subset of e-business
Buying and selling goods and services through Internet
E-government:
Using Internet and networking technologies to deliver
information and services to citizens, employees, and
businesses
Electronic business
Electronic business, or e-business,
refers to the use of digital technology and
the Internet to execute the major business
processes in the enterprise. E-business
includes activities for the internal
management of the firm and for
coordination with suppliers and other
business partners. It also includes
electronic commerce, or e-commerce.
E-commerce
Collaboration:
Short lived or long term
Informal or formal (teams)
Growing importance of collaboration:
Changing nature of work
Growth of professional work—“interaction jobs”
Changing organization of the firm
Changing scope of the firm
Emphasis on innovation
Changing culture of work
Importance of collaboration
Successful
collaboration
requires an
appropriate
organizational
structure and
culture, along with
appropriate
collaboration
technology.
Systems for Collaboration and Social Business
Social business
Use of social networking platforms, including
Facebook, Twitter, and internal corporate social tools-
to Engage employees, customers, and suppliers
Goal is to deepen interactions and expedite information
sharing
“Conversations”
Requires information transparency
Driving the exchange of information without intervention
from executives or others
Systems for Collaboration and Social Business
End users
Representatives of other departments for whom
applications are developed
Increasing role in system design, development
IT Governance:
Strategies and policies for using IT in the
organization
Decision rights
Accountability
Organization of information systems function
Centralized, decentralized, and so on
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