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Chapter 2 Information Systems in the Enterprise Dr. Ahmed Aboul-fetouh IS.Dept. ITEC 1010 Information and Organizations Information System (IS) Definition A set of interrelated elements or components that collect ITEC 1010 (input), manipulate (process), and disseminate (output) data and information and provide a feedback mechanism to meet an objective. For many companies, IS is the name of the department responsible for computers, networking and data management. Other companies refer to the department as IT (Information Technology) and MIS (Management Information Services). Information and Organizations Computer-based Information Systems A CBIS is composed of… Hardware Software Databases Telecommunications People Procedures Together they are… Configured to collect, manipulate, store, and process data into information ITEC 1010 Information and Organizations Computer-Based Information Systems (cont’d) Hardware Consists of computer equipment used to perform input, processing, and output activities Software Consists of the computer programs that govern the operation of the computer Database Organized collection of facts and information, typically consisting of two or more related data files ITEC 1010 Information and Organizations Computer-Based Information Systems (cont’d) Telecommunications, networks, and the Internet The electronic transmission of signals for communications Networks Connect computers and equipment to enable electronic communication Internet World’s largest computer network, consisting of thousands of interconnected networks, all freely exchanging information ITEC 1010 Information and Organizations Computer-Based Information Systems (cont’d) People Can be the most important element in most computer-based information systems Procedures Include strategies, policies, methods, and rules for using the CBIS ITEC 1010 Information and Organizations Types of Business Information Systems ITEC 1010 Information and Organizations ITEC 1010 Information and Organizations Management support System , support the decision-making needs of strategic (top) management, tactical (middle) management. Operations support systems , support the information processing requirements of the day-to-day operations of a business as well as some lowerlevel operations management functions. ITEC 1010 Information and Organizations Some Types of Business Information Systems Types E-Commerce systems Transaction processing systems Management information systems Decision support systems Knowledge Management Systems ITEC 1010 Information and Organizations Electronic and Mobile Commerce E-commerce Any business transaction executed electronically between: • Companies (business-to-business, B2B) • Companies and consumers (business-to- • • • ITEC 1010 consumer, B2C) Consumers and other consumers (consumer-toconsumer, C2C) Business and the public sector Consumers and the public sector Information and Organizations Purchase Order - Traditional ITEC 1010 Information and Organizations Purchase Order – E-commerce ITEC 1010 Information and Organizations Electronic and Mobile Commerce (cont’d) Mobile commerce (m-commerce) Transactions conducted anywhere, anytime E-commerce Can enhance a company’s stock prices and market value Electronic business (e-business) Uses information systems and the Internet to perform all business-related tasks and functions ITEC 1010 Information and Organizations Transactions Processing Systems Transaction Any business-related exchange E.g., generating a weekly payroll Transaction processing system (TPS) An organized collection of people, procedures, software, databases, and devices used to record completed for business related exchanges ITEC 1010 Information and Organizations ITEC 1010 Information and Organizations 16 ITEC 1010 Information and Organizations Master File & Transaction File Master File A master file is a file used as a reference for a particular computer application. It may be updated when necessary. E.g. a file details of the goods stored. ITEC 1010 Information and Organizations Master File & Transaction File Transaction File A transaction file is a file of temporary data, which has been prepared in order to carry out a processing operation with the data on a master file. Usually the transaction file is being used to update the master file which contain the data about the subjects of the organization (customers, employees, vendors, etc.). ITEC 1010 Information and Organizations Management Information Systems An MIS is… An organized collection of people, procedures, software, databases, and devices used to routine information to managers and decision makers ITEC 1010 Information and Organizations Management Information Systems (MIS) (continued) Figure 2-5 ITEC 1010 Information and Organizations Schematic of MIS Marketing management information system Financial management Information system Manufacturing management Information system Common databases TPS ITEC 1010 Information and Organizations Order management information system ITEC 1010 Information and Organizations 23 Information and Decision Support Systems Decision support system (DSS) Organized collection of people, procedures, software, databases, and devices that support problem-specific decision making Used when problem is complex and information needed to determine appropriate action is difficult to obtain and use ITEC 1010 Information and Organizations IDecision Support Systems Components ITEC 1010 Information and Organizations DSS Components 1. Data (Base) Management Subsystem 2. Model (Base) Management Subsystem 3. Knowledge-based (Management) Subsystem 4. User Interface Subsystem (Dialogue) 5. The User ITEC 1010 Information and Organizations DSS (Cont..) Decision Support Systems (DSS) Designed to help decision makers Provides interactive environment for decision making Use internal information from TPS and MIS as well as external sources Have more analytical power than other systems ITEC 1010 Information and Organizations Specialized Business Information Systems: Knowledge Management, Artificial Intelligence, Expert Systems, and Virtual Reality Knowledge management systems (KMSs) Organized collection of people, procedures, software, databases, and devices to • Create, store, share, and use the organization’s knowledge and experience Artificial intelligence (AI) Computer system takes on characteristics of human intelligence ITEC 1010 Information and Organizations Specialized Business Information Systems: Knowledge Management, Artificial Intelligence, Expert Systems, and Virtual Reality (cont’d) ITEC 1010 Information and Organizations Specialized Business Information Systems: Knowledge Management, Artificial Intelligence, Expert Systems, and Virtual Reality (cont’d) Expert systems Give computer ability to make suggestions and function like an expert in a particular field Virtual reality Simulation of a real or imagined environment that can be experienced visually in three dimensions ITEC 1010 Information and Organizations TPS, MIS, DSS, and AI/ES Information AI/ES Less More Less Routine Decision support Input & output More Less More DSS MIS Data ITEC 1010 TPS Information and Organizations More Sophistication & complexity of processing & analysis Less Information Systems in the Functional Areas of Business Finance and accounting Sales and marketing Manufacturing Human resource management Legal information systems ITEC 1010 Information and Organizations Chapter 2 Information Systems in the Enterprise (Some another Systems from FUNCTIONAL PERSPECTIVE ) (1) 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 ITEC 1010 Information and Organizations (2) 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 ITEC 1010 Information and Organizations SYSTEMS FROM A FUNCTIONAL PERSPECTIVE (3) Financing and Accounting Information Systems Major functions of systems: • Budgeting, general ledger, billing, cost accounting Major application systems: • General ledger, accounts receivable, accounts payable, budgeting, funds management systems ITEC 1010 Information and Organizations SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Financing & Accounting Information Systems (Continued) ITEC 1010 SYSTEM DESCRIPTION ORGANIZATION -AL LEVEL Accounts receivable Tracks money owed the firm Operational Budgeting Prepares short-term budgets Management Profit planning Plans long-term profits Strategic Information and Organizations Table 2-4 SYSTEMS FROM A FUNCTIONAL PERSPECTIVE (4) Human Resource Management 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 ITEC 1010 Information and Organizations SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Human Resource Systems (Continued) An Employee Recordkeeping System Figure 2-11 ITEC 1010 Information and Organizations INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: (5) Supply Chain Management (SCM) • Integrates supplier, manufacturer, distributor, and customer logistics time • Reduces time, redundant effort, and inventory costs • Network of organizations and business processes ITEC 1010 Information and Organizations INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Supply Chain Management (SCM) • Helps in procurement of materials, transformation of raw materials into intermediate and finished products • Helps in distribution of the finished products to customers • Includes reverse logistics - returned items flow in the reverse direction from the buyer back to the seller ITEC 1010 Information and Organizations (6) Customer Relationship Management(CRM) CRM enables an organization to identify, attract, retain and support customers using multiple channels such as the World Wide Web, direct sales, telemarketing call centers, direct mail and retail facilities. ITEC 1010 Information and Organizations http://www.crmup.com/?gclid=CIfI-uCbvagCFZoT3wodmVkADw ITEC 1010 Information and Organizations