Global Business and Information Systems · Global Business and Information Systems Chapter 1&2 ... Management Information Systems. Management Information Systems Visit Nike ID –

Management Information Systems

Global Business and

Information Systems

Chapter 1&2

Lecturer: Dr Richard Boateng

Email: [email protected]

Feb 3rd 2010



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What is an information system?


An information system (IS) is an arrangement of people,

data, processes, and information technology that interact to

collect, process, store, and provide as output the information

needed to support an organization.

Information technology is a contemporary term that

describes the combination of computer technology (hardware

and software) with telecommunications technology (data,

image, and voice networks).


Figure 1 An Integrated View of Information and Communication Technologies

Source: Adapted from Duncome and Heeks (2001)

HRIS


Data: Streams of raw facts representing events

such as business transactions

Information: Clusters of facts that are meaningful

and useful to human beings in the processes such

as making decisions


Data and Information

What Is an Information System?


INPUT OUTPUTPROCESS

FEEDBACK

Activities in an Information System


Functions of an Information System

Figure 1-3


More Qu

1. What are the major types of systems in a business?

What role do they play?

2. How do information systems support the major

business functions: sales and marketing,

manufacturing and production, finance and

accounting, and human resources?


Six Types of Information Systems

6. Transaction Process

Systems (TPS)

5. Office Systems (OS)

3. Management Information

Systems (MIS)

2. Decision Support

Systems (DSS)

1. Executive Support

System (ESS)

4. Knowledge Work

Systems (OS)

Strategic-LevelPlan and Project,

Forecast- Senior Managers

Management-Level

Decision Analysis; Summary Reports- Staff Managers & Middle Managers

Knowledge-Level

Models; Graphics; Documents & Mail

-Professionals & Clerical Workers

Operational-LevelSorting; lists; Detailed

Reports; Pay Slips- Operations

Personnel; Supervisors


Systems that Span the Business

SAP ERP:

Human Resource Systems - Leave Request

Example

Executive Support Systems – Sales Planning

and Forecasting

http://www.sap.com/solutions/business-suite/erp/demos/index.epx


A transaction processing system (TPS) is an information

system that captures and processes data about business

transactions.

A management information system (MIS) is an

information system that provides for management-oriented

reporting based on transaction processing and operations of

the organization.

A decision support system (DSS) is an information system

that either helps to identify decision making opportunities or

provides information to help make decisions.


An expert system is an information system that captures

the expertise of workers and then simulates that expertise to

the benefit of nonexperts.

A communications and collaboration system is an

information system that enables more effective

communications between workers, partners, customers, and

suppliers to enhance their ability to collaborate.

An office automation system is an information system that

supports the wide range of business office activities that

provide for improved work flow between workers.


So what is the DIGITAL FIRM?


A firm which uses information systems to

become networked and decentralized and to

digitalize their business processes and foster

innovation and creativity.


The Internet:

Reducing Boundaries and Competing

on Information


International network of networks

Universal technology platform: Any computer can

communicate with any other computer

World Wide Web and Websites

The Internet


4 Major Systems Defining the Digital Firm

Supply chain management systems

Customer relationship management systems

Enterprise systems

Knowledge management systems

The Competitive Business Environment and the Emerging Digital Firm


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I-800 Flowers A network of 9000 florists

Mobile (device) service

Call Centre

Blogs

User Experience

- 75 % Customers from Web

- Visual Experience

- Portray the beauty of products

- Easy Experience, comfortable

- Efficient

TOWARD THE DIGITAL FIRM

• Blue Nile• 60,000 jewelry

• 3-4 days delivery times

• Unique products need unique

technology

User Experience

- Understand Gender

Preferences

- Women do the selection Men

do the buying

- Competitive Price – no

middlemen/commissions

- Availability: 24/7


Role of Information Systems

Enabling

Processes and

Functions in

Organizations

Supporting

Processes and

Functions in

Organizations

The websites of these

companies support the sale

of electronic products which

are primarily done in the

shops

The websites of these companies enable

the sale of products. These companies

primarily do not have any

shops/showrooms for consumers or may

fail to operate efficiently without

their websites.


Electronic Commerce: Sharing business information, managing business relationships and facilitating transactions with Internet technology. (linking buyers and sellers).

Electronic Business: Executing all the firm’s business processes with Internet technology. (sales, finance, human resources, manufacturing)

Intranet: Business builds private, secure network based on Internet technology

Extranet: Extension of intranet to authorized external users


Transformation of the Business Enterprise

Flattening

Decentralization

Flexibility

Location independence

Low transaction and coordination costs

Empowerment

Collaborative work and teamwork


Business Perspective of Information Systems

ORGANIZATION TECHNOLOGY

MANAGEMENT

INFORMATION

SYSTEMS

People

Structure

Procedures

Politics

Culture

Hardware

Software

Storage

Senior, middle, operational


Key Elements:

People: Managers, knowledge workers, data

workers, production or service workers

Structure: Organization chart , groups of specialists,

products, geography

Organizations


Operating procedures: Standard operating procedures

(SOP, rules for action)

Politics: Power to persuade, get things done

Culture: Customs of behavior

Organizations


Levels:

Senior managers: make long-range strategic decisions about products and services

Middle managers: Carry out the programs and plans of senior management

Operational managers: monitor the firm’s daily activities

Management


Tools managers use to cope with change

Hardware: Physical equipment

Software: Detailed preprogrammed instructions

Storage: Physical media for storing data and the software

Computer Technology


So what is the DIGITAL FIRM?


A firm which uses information systems to become

networked and decentralized and to digitalize their

business processes and foster innovation and

creativity.


How Digital is your firm?

Low

Digitalization

Less network

centralization

Highly networked

decentralization

High

Digitalization


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Further Examples of the Major

Types of Systems in

Organizations


Four powerful worldwide changes that have altered the

business environment:

1. Emergence of the Global Economy

2. Transformation of Industrial Economies

3. Transformation of the Business Enterprise

4. The Emerging Digital Firm


Major Types of Systems in Organizations

Typical Applications of Transaction Processing Systems (TPS)



How management information systems obtain their data

from the organization’s TPS



Transaction Processing Systems (TPS)

Basic business systems that serve the organization’s

operational level

Input:Transactions, events

Processing: Sorting, listing, merging, updating

Output: Detailed reports, lists, summaries

Users: Operations personnel, supervisors

Four Major Types of Systems


Enterprise Applications

Knowledge Management Systems (KMS)

Collect relevant knowledge and experience in firm to

support business processes and management decisions

Manage and distribute documents and other digital

knowledge objects

Knowledge Management Systems in the Enterprise


Enterprise Applications

Role of Knowledge Management Systems

Acquire knowledge

Store knowledge

Distribute knowledge

Apply knowledge

Knowledge Management Systems in the Enterprise



Management Information Systems (MIS)

Serve management level; provide reports and access to company data

Input: Summary transaction data, high-volume data, simple models

Processing: Routine reports, simple models, low-level analysis

Output: Summary and exception reports

Users: Middle managers




Decision-Support Systems (DSS)

Serve management level with data analysis for making decisions

Input: Low-volume data or massive databases, analytic models, and data analysis tools

Processing: Interactive, simulations, analysis

Output: Special reports, decision analyses, responses to queries

Users: Professionals, staff managers




Executive Support Systems (ESS)

Provide communications and computing environment that

serves the organization’s strategic level

Input: External and internal aggregate data

Processing: Graphics, simulations, interactive

Output: Projections, responses to queries

Users: Senior Managers




Model of a typical executive support system


48

Thank You for Listening

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