Lesson 3

INFORMATION
SYSTEMS IN THE
ENTERPRISE

2.1 © 2003 by Prentice Hall

 Essentials of Management Information Systems
Chapter 3 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Major Types of Systems

• Executive Support Systems (ESS)

• Decision Support Systems (DSS)
• Management Information Systems (MIS)
• Office Automation System (OAS)
• Transaction Processing Systems (TPS)

2.2 © 2003 by Prentice Hall

 Essentials of Management Information Systems
Chapter 3 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Major Types of Systems

2.3 © 2003 by Prentice Hall

 Essentials of Management Information Systems
Chapter 3 Information Systems in the Enterprise

INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Enterprise Systems

2.4 Figure 2-17 © 2003 by Prentice Hall

 Essentials of Management Information Systems
LESSON 3 - Information Systems in the Enterprise

INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Traditional View of the Systems

Figure 2-16
2.5 © 2003 by Prentice Hall
 Essentials of Management Information Systems
LESSON 3 - Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Transaction Processing Systems (TPS):

• Transaction Processing System is operational-level

systems at the bottom of the pyramid. Transaction
Processing Systems ("TPS") are designed to
process routine transactions efficiently and
accurately
• This data is usually obtained through the
automated or semi-automated tracking of low-level
activities and basic transactions.

2.6 © 2003 by Prentice Hall

 Essentials of Management Information Systems
LESSON 3 - Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Types of TPS Systems

Figure 2-4
2.7 © 2003 by Prentice Hall
 System Architecture: Transaction Processing
System

2.8 © 2003 by Prentice Hall

 Essentials of Management Information Systems
LESSON 3 - Information Systems in the Enterprise

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Financing and Accounting Systems

Major functions of systems:

• Budgeting, general ledger, billing, cost
accounting

Major application systems:

• General ledger, accounts receivable,
accounts payable, budgeting, funds
management systems

2.9 © 2003 by Prentice Hall

 Essentials of Management Information Systems
LESSON 3 - Information Systems in the Enterprise

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Sales and Marketing Systems

Major functions of systems:

• Sales management, market research,
promotion, pricing, new products

Major application systems:

• Sales order info system, market research
system, pricing system

2.10 © 2003 by Prentice Hall

 Essentials of Management Information Systems
LESSON 3 - Information Systems in the Enterprise

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Manufacturing and Production 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

2.11 © 2003 by Prentice Hall

 Essentials of Management Information Systems
LESSON 3 - Information Systems in the Enterprise

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Human Resource Systems

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

2.12 © 2003 by Prentice Hall

 Essentials of Management Information Systems
LESSON 3 - Information Systems in the Enterprise

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Human Resource Systems

Figure 2-11
2.13 © 2003 by Prentice Hall
 Essentials of Management Information Systems
LESSON 3 - Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Payroll TPS

Figure 2-3
2.14 © 2003 by Prentice Hall
 System Example: Payroll System (TPS)

2.15 © 2003 by Prentice Hall

 Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Overview of Inventory Systems

Figure 2-10
2.16 © 2003 by Prentice Hall
 Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise

LESSON 3 - Information Systems in the Enterprise

Office Automation System (OAS)

• Office Automation Systems are systems that try to
improve the productivity of employees who need to
process data and information.
• improve the productivity of employees working in an
office

Ex. (e.g. Microsoft Office XP) or systems that allow

employees to work from home or whilst on the move.

2.17 © 2003 by Prentice Hall

 • Management Information System (MIS)
– , Management Information Systems are
management-level systems that are used by
middle managers to help ensure the smooth
running of the organization in the short to medium
term
– MIS provides information to the users in the form
of reports. Output, or reports, are usually
generated through accumulation of transaction
processing data.
– The highly structured information provided by
these systems allows managers to evaluate an
organization's performance by comparing current
18
with previous outputs.
2.18 © 2003 by Prentice Hall
 Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise

LESSON 3 - Information Systems in the Enterprise

Management Information System (MIS)

Figure 2-5
2.19 © 2003 by Prentice Hall
 System Architecture: Management
Information System

2.20 © 2003 by Prentice Hall

MIS Management Information System

Creates reports managers can use

to make routine business decisions

• Scheduled reports
• Key-indicator reports
• Exception reports
• Ad hoc (demand) reports
• Drill-down reports

2.21 © 2003 by Prentice Hall

Scheduled
Reports
Produced
periodically, or
on a schedule
(daily, weekly,
monthly).

22
2.22 © 2003 by Prentice Hall
 Key-Indicator Report
Summarizes the previous day’s critical activities
and typically available at the beginning of each
day.
2.23 © 2003 by Prentice Hall
 Demand
Report
Gives certain
information at a
manager’s
request.

Exception
Report
Automatically
produced when a
situation is unusual
or requires
management action.
24
2.24 © 2003 by Prentice Hall
Drill Down
Reports
Provide detailed
data about a
situation.

25
2.25 © 2003 by Prentice Hall
 Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Decision Support System (DSS):

• used by senior managers, which facilitates

the creation of knowledge and allow its
integration into the organization
• analyze existing structured information
and allow managers to project the
potential effects of their decisions into the
future.

2.26 © 2003 by Prentice Hall

 Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Function of Decision Support

System (DSS):

• manipulate and build upon the information

from a MIS and/or TPS to generate
insights and new information.

2.27 © 2003 by Prentice Hall

 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
2.28 © 2003 by Prentice Hall
 Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Executive support system (ESS)

• Top level management

• Designed to the individual

• Ties CEO to all levels

• Very expensive to keep up

• Extensive support staff

2.29 © 2003 by Prentice Hall
 Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Executive Support System (ESS):

• Executive Information Systems are strategic-level

information systems that are found at the top of
the Pyramid
• help executives and senior managers analyze the
environment in which the organization operates,
to identify long-term trends, and to plan
appropriate courses of action
• designed to be operated directly by executives
without the need for intermediaries and easily
tailored to the preferences of the individual using
them

2.30 © 2003 by Prentice Hall

 Essentials of Management Information Systems
LESSON 3 - Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Executive Support System (ESS)

2.31
Figure 2-8
© 2003 by Prentice Hall
 Essentials of Management Information Systems
LESSON 3 - Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Types of Information Systems

2.32 Figure 2-1 © 2003 by Prentice Hall

 Essentials of Management Information Systems
LESSON 3 - Information Systems in the Enterprise

TYPES OF INFORMATION SYSTEMS

Figure 2-2
2.33 © 2003 by Prentice Hall
 INFORMATION
SYSTEMS IN THE
ENTERPRISE

2.34 © 2003 by Prentice Hall

 Essentials of Management Information Systems
LESSON 3 - Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Knowledge Work Systems (KWS):

Knowledge level
• Inputs: Design specs
• Processing: Modeling
• Outputs: Designs, graphics
• Users: Technical staff

Example: Engineering work station

2.35 © 2003 by Prentice Hall

 Essentials of Management Information Systems
LESSON 3 - Information Systems in the Enterprise

INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Business Processes and Information Systems

Information systems help organizations

• Achieve great efficiencies by automating

parts of processes

• Rethink and streamline processes

2.36 © 2003 by Prentice Hall

 Essentials of Management Information Systems
LESSON 3 - Information Systems in the Enterprise

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Human Resource Systems

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

2.37 © 2003 by Prentice Hall

 Essentials of Management Information Systems
LESSON 3 - Information Systems in the Enterprise

INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Examples of Business Processes

• Finance and accounting: Paying

creditors, creating financial statements,
managing cash accounts

• Human Resources: Hiring employees,

evaluating performance, enrolling
employees in benefits plans

2.38 © 2003 by Prentice Hall

 Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise

INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Examples of Business Processes

• Manufacturing and production:

Assembling product, checking quality,
producing bills of materials

• Sales and marketing: Identifying

customers, creating customer awareness,
selling

2.39 © 2003 by Prentice Hall