Download C2- How Businesses Use Information Systems

C2- How Businesses Use
Information Systems
Systems from a functional
perspective
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Sales and marketing systems
Manufacturing and production systems
Finance and accounting systems
Human resources systems
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Types of Information Systems
Three main categories of IS
Serves at different organizational level
1. Operational-level systems: support operational
managers, keeping track of the elementary
activities and transactions
2. Management-level systems: serve the
monitoring, controlling, decision-making, and
administrative activities
3. Strategic-level systems: help senior
management tackle and address strategic
issues
Business Processes and IS
The Order Fulfillment Process
Fulfilling a customer order involves a complex set of steps that requires the close
coordination of the sales, accounting, and manufacturing functions.
Figure 2-1
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A Symbolic Representation
for a Payroll TPS
Functional Systems
Functional Systems …
Systems from a constituency perspective
– Transaction processing systems (TPS)
– (MIS) and decision-support systems (DSS)
– Executive support systems (ESS)
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Interrelationships Among Systems
The various types of systems in the organization have interdependencies. TPS are major
producers of information that is required by many other systems in the firm, which, in turn,
produce information for other systems. These different types of systems are loosely coupled in
most business firms, but increasingly firms are using new technologies to integrate information
that resides in many different systems.
Figure 2-10
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Enterprise applications
• Designed to support organization-wide process
of coordination and integration
• Consists of:
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Enterprise systems
Supply chain management systems
Customer relationship management systems
Knowledge management systems
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Enterprise Application
Architecture
Enterprise applications automate processes
that span multiple business functions and
organizational levels and may extend outside
the organization.
Figure 2-11
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INTEGRATING FUNCTIONS AND BUSINESS PROCESSEs
WELCOME TO ENTERPRISE
APPLICATIONS
Enterprise Systems
• Also known as enterprise resource planning
(ERP) systems
• Provide a single information system for
organization-wide coordination and integration of
key business processes
• Allows flow of information throughout the firm so
that it can be shared by business processes in
different functional areas
Figure 2-12 Enterprise Systems
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Supply Chain Management (SCM)
• The close linkage and coordination of activities
involved in buying, making, and moving a
product
• SCM integrates business processes to speed
information, product, and fund flows up and
down a supply chain
• Reduces time, redundant effort, and inventory
costs
Customer Relationship
Management (CRM)
• Business and technology discipline for
managing customer relationships to optimize
revenue, profitability, customer satisfaction, and
customer retention
Applications of a CRM system
• Capture and integrate customer data from all
over the organization
• Consolidate and analyze the data
• Distribute results to various systems and
customer touch points across the enterprise
• Provide a single touch point for the customer