MIS 301Information Systems in Organizations

Dave Salisburysalisbury@udayton.edu (email)

http://www.davesalisbury.com/ (web site)

Chapter Objectives

Relate functional areas and business processes to the value chain model.

Identify functional management information systems.

Describe the transaction processing system and demonstrate how it is supported by IT.

Describe the support provided by IT and the web to various functional areas.

Functional Areas – Value Chain Perspective

Functional Areas in a Business

Functional Information Systems Composed of smaller systems: A functional information

system consists of several smaller information systems that support specific activities performed in the functional area.

Integrated or independent: The specific IS applications in any functional area can be integrated to form a coherent departmental functional system, they can be integrated across departmental lines to match a business process or be completely independent.

Interfacing: Functional information systems may interface internally with each other to form the organization-wide information system or externally systems outside the organization.

Supportive of different levels: Information systems applications support the three levels of an organization’s activities: operational, managerial, and strategic

Functional Information Systems

Transactional

Office

Decision Support

Strategic

Data mining ops that support management

Back office administrative tasks & ops.

Operational level of the company is normally highly structured and predefined.

Data Analysis and statistical forecasting.

Dynamic and what-if features.

Clerical documents, schedules, mail, manuals, etc.

Business transactions, events and processes. Support of the business and customers.

Business Application Architecture

Customer Relationship Management

SalesCross-SellUp-SellTeleSales

Store Frontand FieldService

Marketing andFulfillment

CustomerService andSupport

Retentionand LoyaltyPrograms

Customer

Contact Management

Cross-Functional Integrated Systems

Front OfficeApplications

CRM Application•Customer Service•Field Service•Sales Order•Product Config

Back OfficeApplications

ERP Application•Distribution•Manufacturing•Scheduling•Finance

EnterpriseApplicationIntegration

Enterprise ApplicationCluster

Enterprise ApplicationCluster

Cu

sto

me

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Suppliers

Bu

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s P

art

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TPS – Enterprise Wide Information Systems

Integration of Cross-Functional Information Systems tears down barriers between and among departments & corporate headquarters and reduces duplication of effort.

SPARS

Accounting

Point-of-Sale

Inventory Control

Payroll

Receiving

ProfilingSales

Analysis

Bar Coding

Service

History

Installations

Purchasing

ERPSCM

Functional Information Systems

ProductionOperations

ProductionOperations

MarketingMarketing

Human ResourceManagement

Human ResourceManagement

FinanceFinanceAccountingAccounting

FunctionalBusinessSystems

Marketing Information Systems

MarketingInformation

Systems

MarketingInformation

Systems

InteractiveMarketing

Sales ForceAutomation

Sales ForceAutomation

CustomerRelationshipManagement

CustomerRelationshipManagement

SalesManagement

SalesManagement

MarketResearch andForecasting

MarketResearch andForecasting

Advertisingand

Promotions

Advertisingand

Promotions

ProductManagement

ProductManagement

Targeted Marketing

Online Behavior

Community

Context

Demographic/Psychographic

Content

Manufacturing Information Systems

Engineering Systems

•CAD•CAE•Computer-AidedProcess Planning

ManufacturingExecutionSystems

•Shop Floor•Scheduling•Machine Control•Process Control•Robotic Control

Computer Integrated ManufacturingManufacturing

ResourcePlanning

•ProductionForecasting•ProductionScheduling•Quality Control

RemoteWorker

Supplier

Extranet

Intranet

Accounting Information Systems

Financial Information Systems

Financial Information

Systems

Financial Information

Systems

FinancialPlanning

FinancialPlanning

CashManagement

InvestmentManagement

InvestmentManagement

CapitalBudgeting

Transaction Processing Information Systems

The transaction processing system Monitors Collects Stores Processes Disseminates information

for all routine core business transactions.

Transaction Processing Systems

DatabaseMaintenance

TransactionProcessing

• Batch•Online/Realtime

TransactionProcessing

• Batch•Online/Realtime

DataEntry

Documentand ReportGeneration

InquiryProcessing

1 2

3

4

5

TPS – Orders

YESNO

From POSDelivery Ticket sent to Delivery Department

Order Fulfillment

Pick TicketMIT ̂ %T$$

Picking Ticket

Marked Pick Ticket

Customers Delivery Ticket

Customer Accepts Delivery

Ticket

TicketException

ToAccounting

Delivery Process

Cash Receipts

Invoice/Credit Memo

Accounts Receivable

CashCheckCharge(Bank, T&E, House, Finance)

POSOrder EntryServiceConstructionInternet

POS DepositsOrder Entry DepositsService DepositsConstruction DepositsInternet Deposits

Cash PostingTransaction Posting

Transactional Systems

End of MonthStatements

Customer Stmt

Customer Stmt

Customer Stmt

Three-way Match

Accounts Payable File

Received Uncosted File

Accounts Payable

Receiving Operation

Scheduling

Merchandise Invoice

Expense Invoice

Disbursement File

Order Order takentaken

Order Entry ScreenItem Key 1 199.95item2 2 189.99

Item RetrievalBrand & ModelUPCModel No.MFG No.SKUAlternate Units

PackagesPre-Built (actual)Pre-Built (phantom)

AutomaticAccessories

Out of StockSubstitutionHot ItemsSpecial OrderAlternate LocationsOpen OrderBackorder

Selling ToolsFeatures

MessagesHot Items

Best SellersNotes

Customer HistoryStandard Orders

WindowsRetrieval

Catalog, Phone, Internet Sales

Generic ItemsTextInstructionsTrade-in'sCatalog Items

Drop Ship

PricingTables

Installation WO's

Blanket Orders

EDI Transmissions

(Wholesale Division)

InternetPhone Fax

EDI/XML

Order fulfillmentOrder fulfillmentE-PaymentE-Payment

E-InvoiceE-Invoice

MANAGERIAL ISSUES

Integration of functional information systems. Integration of existing stand-alone functional information systems

can be a major problem Issues with willingness to share information

Priority of transaction processing. Deals with the core processes of organizations TPS collects the information needed for most other applications

The customer is king/queen. Importance of the customer/end-user, whether external or internal Applications for increasing customers’ satisfaction difficult to justify in

a traditional cost-benefit analysis Empowering customers to enter into a corporate database

Self-service activities Customers get quick answers to their queries can save money for a company as well security and privacy concerns.

Everyone in the organization must be concerned about customers