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Information Systems in Business and Management
Information Systems in Business and Management
• Origins in a number of Disciplines– Management
– Operations Research
– Computer Science
– Accounting
– Organisation Development
• Taxonomy of Information Systems– Transaction Processing
– Management Reporting Systems
– Decision Support Systems
– Executive Information Systems
Five Main Resources
• Personnel
• Material
• Machines– (including facilities and energy)
• Money
• Information (and data)
PhysicalPhysical
ConceptualConceptual}
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Factors Stimulating Interest in Information Management
• Increasing complexity of business– International economy
– Worldwide competition
– Increasing complexity of technology
– Shrinking time frames
– Social constraints
• Improved computer capabilities
Who are the Users?
• Managers
• Supervisors & employees
• Persons & organizations in the firm’s environment
The Nature of ManagementThe Nature of Management
• Functional Activities– Accounting
– Marketing
– Production
– Personnel
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Levels of Management (Anthony 1965)
Levels of Management (Anthony 1965)
Strategic Planning
Management control
Operational Control
Strategic PlanningStrategic Planning
• Relates to the Organisation as a Whole
• Occurs on an Irregular Basis
• Relies on External Information
• An Exercise in Applied Economics
• Small Numbers Involved
• Provides the Framework for Mgt Control
Management ControlManagement Control
• Elements
• Process
• Managers
• Goals
• Efficiency and Effectiveness
• Characteristics– Focus on Responsibility Centres
– General Types of Information
– Comprehensive
– Expressed in Financial Terms
– Defined Patterns and Timetables
– Coordinated Integrated System
Operational ControlOperational Control
• Restricted to Narrowly Defined Activities
• Occurs in the Context of Mgt Control
• Based on a Financial Structure
• Relates to Individual Transactions
• Requires a Formal Model of Operation
The Influence of Management Level on
Information Source
Strategic planning levelStrategic planning level
Management control levelManagement control level
Operational control levelOperational control level InternalInternal
EnvironmentalEnvironmental
The Influence of Management Level on
Information Form
Strategic planning levelStrategic planning level
Management control levelManagement control level
Operational control levelOperational control level DetailDetail
SummarySummary
Managers Can Be Found on All Levels and in All
Functional Areas of the Firm
FinanceFunction
Human ResourcesFunction
InformationServicesFunction
ManufacturingFunction
MarketingFunction
Strategic planning levelStrategic planning level
Management Control LevelManagement Control Level
Operational Control Operational Control LevelLevel
Managerial Roles Managerial Roles
• Fayol
• Mintzberg
• Stewart
Planning , Staffing, Controlling etc
What Managers do --Fayol’s Functions
Strategic Planning Level
Management Control Level
Operational Control Level
Plan
Control
Organize
Direct
Staff
Organize
Staff
Direct
Plan
Control
Direct
Staff
Plan
Control
Organize
What Managers do -- Mintzberg’s Roles
• Interpersonal roles– Figurehead
– Leader
– Liaison
• Informational roles– Monitor
– Disseminator
– Spokesperson
Decisional rolesDecisional roles– EntrepreneurEntrepreneur– Disturbance handlerDisturbance handler– Resource allocatorResource allocator– NegotiatorNegotiator
Problem Solving Information Comes in Many Forms
Co
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No
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No
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Ele
ctr
on
ic
Ele
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ic
ma
ilm
ail P
eri
od
ica
lP
eri
od
ica
lss T
ele
ph
on
eT
ele
ph
on
eProblem Problem SolvingSolving
Written MediaWritten Media Oral MediaOral Media
Internal SourcesInternal Sources External SourcesExternal Sources
Sc
he
du
led
Me
eti
ng
sS
ch
ed
ule
d M
ee
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gs
Un
sc
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Me
eti
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sU
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ule
d M
ee
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gs
Vo
ice
Ma
ilV
oic
e M
ail
To
urs
To
urs
Bu
sin
es
s M
ea
lsB
us
ine
ss
Me
als
Le
tte
rs &
Me
mo
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ett
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& M
em
os
Management Skills
• Communications
• Problem solvingHow can an How can an information information specialist help?specialist help?}
Transaction Processing Systems
Transaction Processing Systems
• A focus on data storage processing and flows at the operational ;
• Efficient Transaction Processing
• Automation of High Volume Routine Tasks
• Minimum Participation by Users
• Summary reports to Management
• Ryanair, EBay, Google
Management Reporting Systems
Management Reporting Systems
• An Information Focus aimed at Middle Managers
• Structured Information Flow
• Inquiry and Report Generation off a Database
• Planning and Control
• Summary Details
• Rhythmic in Nature NameTitle
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Decision Support Systems
• Support for Managerial Decision Making
• Evolved from Experiences with M.I.S.
• Aimed at the less well structured/Underspecified problems
• Combine modelling and Analysis Capability
• Flexibility and Adaptability
Executive Information SystemsExecutive Information Systems
• Structured Automated Tracking Systems for Executives
• Designed to Support Top Executives
• Characteristics– Ease of use - Touch Screens etc
– Data Cube
– External Information
• Examples in Ireland– Bank of Ireland, AIB
– Telecom Eireann
– ESB
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Evolution of the CBIS
• Data (EDP)
• MIS 1964– IBM promoted the concept as a means of selling disk files and
terminals
• DSS 1971– Our distinction:
» MIS: Organizational/group - general
» DSS: Individual - specific
• 1980’s/1990/s EIS
• 1990’s/2000’s ERP systems (back to 1964?)
The CBIS Model
Computer-based Information System
(CBIS)
Accounting Information System
ManagementInformation System
Decision SupportSystems
The VirtualOffice
Knowledge-based Systems
DecisionsDecisions
ProbleProblemm
InformationInformation
ProblemProblemSolutionSolution
Information Services
Information specialists have full-time responsibility for
developing and maintaining computer-based systems
Traditional Communications Chain
DatabaseAdministrator
UserUserSystemsAnalyst
Programmer Operator ComputerComputer
NetworkSpecialist
End-User Computing
• End-user computing – Development of all or part of applications
• Stimulants to EUC– Increased computer literacy
– IS backlog
– Low-cost hardware (the PC)
– Prewritten software (electronic spreadsheets)
IS and EUCThe End-User Computing Communication Chain
User Computer
InformationSpecialists
SupportSupport
CommunicationCommunication
Justifying the CBIS
• Justify in the same manner as any other large investment
• Economic– Cost reduction
– Reduced inventory investment
– Increased productivity (CAD/CAM)
• Noneconomic– Perceived value
Roles Played by the Manager
and by the Information Specialist
Implementation
Phase Manager
Information Specialist
Control
Control
Control
Control
Planning
Analysis
Design
Use
Define problem Support
System Study
Design system
Implement system
Make available
Suppliers The firm Customers
Labor unions
Stockholders or owners
Society
The Firm’s EnvironmentThe Firm’s Environment
FinancialCommunity
Government GlobalCommunity
Suppliers TheFirm
Laborunions
Stockholders or owners
Customers
Competitors
A Value ChainA Value Chain
Firm Infrastructure
Human resource management
Technology development
Procurement
Inboundlogistics
Operations Outboundlogistics
Marketingandsales
Service
Margin
Mar
gin
SupportActivities
Primary Activities
The Information Resources
Facilities
Software DatabaseHardware
InformationSpecialists
Users
Information
The Future
The bright side:
Information is getting more important
The dark side:
Trend to end-user computing is making information management more difficult
Strategicplanning for
information resources
Strategicplanning for marketingresources
Strategicplanning for
manufacturingresources
Strategicplanning for
human resources
Strategic planning for
financial resources
The Functional Areas Should The Functional Areas Should Cooperate Cooperate
in Developing Their Strategic in Developing Their Strategic PlansPlans
Strategic Planning for Strategic Planning for Information ResourcesInformation Resources
Business strategy
InformationresourcesandISstrategy
Influence on BusinessStrategy
Influence onInformation Resources
IRM - Required Elements
• A recognition that competitive advantage can be achieved by means of superior information resources
• A recognition that information services is a major functional area
• A recognition that the CIO is a top-level executive
IRM-Required Ingredients (cont.)
• A consideration of the firm’s information resources when engaging in strategic planning
• A formal strategic plan for information resources
• A strategy for stimulating and managing end-user computing
The firm’s executivesThe firm’s executivesCIOCIO Other executivesOther executivesOther executivesOther executives
Central computingCentral computing resourcesresources
Disbursed computingDisbursed computingresourcesresources
FUNCTIONAL AREASFUNCTIONAL AREAS
User’s engaged in User’s engaged in end-user computingend-user computing
Other usersOther users
ENVIRONMENTAL INFLUENCESENVIRONMENTAL INFLUENCES
Internal influences Firm’s strategic plan
STRATEGIC PLAN FOR INFORMATION RESOURCESSTRATEGIC PLAN FOR INFORMATION RESOURCES
DATA AND INFORMATIONDATA AND INFORMATION
The IRM The IRM ModelModel
Informationservices
Humanresources
Manufacturing MarketingFinance
The environment of the firm
A Sales Report of Fast A Sales Report of Fast Moving ProductsMoving Products
Year-to-Date % of TotalItem Number Item Description Sales Volume Year-to-Date Sales
400293 BRAKE PIPE $1,702.93 .068 319421 DOOR HANDLE GASKET 1,624.00 .065 786402 CLUTCH DRIVEN PLATE 1,403.97 .056 190796 CARPET SNAP 1,102.00 .044 001007 SPARK PLUG 1,010.79 .040 739792 HOSE CLIP 949.20 .038 722210 RUBBER PLUG 946.73 .038 410615 UPPER DOOR HINGE 938.40 .038 963214 REAR TUBE SHOCK 922.19 .037 000123 NEEDLE VALVE 919.26 .037
Totals $11,519.47 .461
Information is Gathered from All of the Physical System Elements
ManagementManagement
TransformationTransformationProcessProcess
OutputOutputResourcesResources
Input Input ResourcesResources
InformationInformation InformationInformation
Supplier Analysis ReportSupplier Analysis Report
Item Number: Item Number: 410615410615Item Description: Item Description: Upper Door HingeUpper Door Hinge
SUPPLIERSUPPLIER LASTLAST UNITUNIT DAYS TO PCT.DAYS TO PCT.NUMBER NAMENUMBER NAME DATEDATE P.O. # QTY.P.O. # QTY. PRICEPRICE RECEIPT REJECTSRECEIPT REJECTS
30623062 CARTERCARTER 7/127/12 1048-10 3601048-10 360 $8.75$8.75 12 .00 12 .00 & SONS& SONS
41894189 PACIFICPACIFIC 4/134/13 962-10 350 9.10 08 .02 962-10 350 9.10 08 .02 MACHININGMACHINING
0140 0140 A.B.A.B. 1/041/04 550-10 550-10 350 8.12 350 8.12 03 03 .00 .00 MERRILMERRIL
21112111 BAY AREA BAY AREA 8/198/19 1196-10 1196-10 360 360 11.60 11.60 19 .04 19 .04
A Job Status Report Provides InformationA Job Status Report Provides Informationabout the Transformation Processabout the Transformation Process
Job Number: Job Number: 84-18284-182Customer: Customer: Wankel AutomotiveWankel Automotive
CURRENT STATUSCURRENT STATUSStep 4-weld supports to frameStep 4-weld supports to frameDepartment 410-WeldingDepartment 410-WeldingDate and Time Begun-10/8; 10:15ADate and Time Begun-10/8; 10:15AProjected Job Completion-10/14; 9:30AProjected Job Completion-10/14; 9:30A
NEXT PROCESSNEXT PROCESS
•Step 5-paint frameStep 5-paint frame•Department 632-PaintDepartment 632-Paint
INFORMATION SYSTEMINFORMATION SYSTEM
INFORMATION INFORMATION
SYSTEMSYSTEM
BUSINESS BUSINESS
CHALLENGECHALLENGE
BUSINESS BUSINESS
SOLUTIONSSOLUTIONS
MANAGEMENTMANAGEMENT
INFORMATIONINFORMATION
TECHNOLOGYTECHNOLOGY
ORGANIZATIONORGANIZATION
3.2
MANAGING CHANGEMANAGING CHANGE
FITTING TECHNOLOGY TO FITTING TECHNOLOGY TO ORGANIZATIONORGANIZATION
LIMITS OF TECHNOLOGYLIMITS OF TECHNOLOGY