MIS2

Global E-Business & Collaboration?
Businesses can be viewed as a collection of processes, both functional and cross-functional. Processes may be assets or liabilities. Organizations consist of resources (people), processes and data.
Types of Information Systems
1. Transaction Processing Systems (TPS)

2. Management Information Systems (MIS)

3. Decision Support Systems (DSS)

4. Executive Support Systems (ESS)

Relationships of Systems

Enterprise Applications

Transaction Processing Systems (TPS)
Perform and record daily routine transactions necessary to conduct business.
Examples: Sales Order Entry, Shipping & Receiving, Payroll, Call Center System
Management Information Systems (MIS)
Provides pre-specified reports, answers to routine questions with predefined procedure for answering them, data from TPS, few analytical capabilities.
Decision Support Systems (DSS)
Serves Middle Management, supports non-routine decision making, often make use of external information as well as data from TPS/MIS, What-If Analysis?
Executive Support Systems (ESS)
Support Senior Management, address non-routine decisions, incorporate data about external events as well as summarized information from MIS / DSS / TPS.
Relationships of Systems
TPS: Major source of data for other systems.
ESS: Recipient of data from lower-level systems
Data may be exchanged between systems.
Enterprise Applications
Systems for linking the enterprise
Span functional areas
Execute business processes across firm
Include all levels of management
Improves productivity and flexibility

1. Enterprise System (Enterprise Resource Planning System)
2. Supply Chain Management Systems
3. Customer Relationships Management Systems
4. Knowledge Management Systems

Tools for Collaboration & Teamwork
Business Process & Information?
Collection of activities required to produce a product or service. (conduct business)
Process Improvement / Quality Control (OM/OR)
Examples of functional business processes
Manufacturing & Production

Sales and Marketing

Finance & Accounting

Human Resources

Information technology enhances business processes in two main ways:
Increasing the efficiency of existing processes

Enabling entirely new processes that are capable of transforming the business

Transaction Processing Systems
Serve operational managers and staff

Perform and record daily routine transactions necessary to conduct business
Examples: Sales Order Entry, Payroll, Shipping

Allow managers to monitor status of operations and relations with external environment

Serve predefined, structured goals and decision making
Call Center Script/Workflow Conditional Logic

Business Intelligence Systems (3 of them)
Management Information Systems
Decision Support Systems
Executive Support Systems
Business Intelligence?
Data and software tools for organizing, analyzing, and providing access to data.

Used to help managers and other enterprise users make more informed decisions.

Addresses the decision-making needs of all levels of management.

Management Information Systems MIS
Academic Context

Systems Context

Decision Support Systems
DSS
Serves middle management
Support non-routine decision making

Often makes use of external information as well as data from TPS and MIS

Model driven DSS

Data driven DSS

Executive Support Systems
ESS
Support senior management

Address non-routine decisions
Requiring judgment, evaluation, and insight

Incorporate data about external events (e.g. new tax laws or competitors) as well as summarized information from internal MIS and DSS

Example: Digital dashboard with real-time view of firm’s financial performance: working capital, accounts receivable, accounts payable, cash flow, and inventory

Relationships of Systems To One Another
TPS: Major source of data for other systems

ESS: Recipient of data from lower-level systems

Data may be exchanged between systems

In reality, most businesses’ systems are only loosely integrated.

What automate processes that
span multiple business
functions and
organizational levels and
may extend outside the
organization?
Enterprise Applications
Enterprise Resource Planning (ERP) Systems
Collects data from different firm functions and stores data in single central data repository
Supply Chain Management (SCM) Systems
Manage firm’s relationships with suppliers

Share information about
Orders, production, inventory levels, delivery of products and services

Goal of SCM
Right amount of products to destination with least amount of time and lowest costs

May also be used to manage personnel resources
Suppliers may be contracting/consulting firms

Customer Relationship Management Systems
Provide information to coordinate all of the business processes that deal with customers in sales, marketing, and service to optimize revenue, customer satisfaction, and customer retention

Integrate firm’s customer-related processes and consolidate customer information from multiple communication channels

Examples: Sugar CRM, Sales Force

Knowledge Management Systems (KMS)
A firms knowledge is part of their Intellectual Property (IP)

Support processes for acquiring, creating, storing, distributing, applying, and integrating knowledge
How to create, produce, distribute products and services

Collect internal knowledge and experience within firm and make it available to employees

Link to external sources of knowledge

Internal Wiki Sites / SharePoint

What types of Information Systems (E-Systems) are there? (3)
E-Business

E-Commerce

E-Government

Software Tools for Collaboration & Teamwork
Email and Instant Messaging

Social Networking

Facebook, LinkedIn, Twitter, etc.

Wikis (Knowledge Management Systems)

Intranet Sites

Virtual Meeting Systems
Cisco Tele-presence
LiveMeeting / WebEx

Google Apps / Google Sites / Google Groups

Microsoft SharePoint

Lotus Notes

Enterprise Social Networking Tools

The Information Systems Function in Business
Information systems department:
– Formal organizational unit responsible for information technology services
– Often headed by chief information officer (CIO)
Other senior positions include chief security officer (CSO), chief knowledge officer (CKO), chief privacy officer (CPO)
– Programmers
– Systems analysts
– Information systems managers
– End users
– IT Governance/ Application Governance
TPS
Transaction Processing Systems
ESS
Executive Support Systems
DSS
Decision Support Systems
ERP
Enterprise Resource Planning Systems
IP
Intellectual Property