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Define and describe business processes and their relationship to information systems. Evaluate the role played by systems serving the various levels of management in a business and their relationship to each other. Explain how enterprise applications, collaboration and communication systems, and intranets improve organizational performance. Assess the role of the information systems function in a business.
Learning objectives
Define and describe business processes and their relationship to information systems. Evaluate the role played by systems serving the various levels of management in a business and their relationship to each other. Explain how enterprise applications, collaboration and communication systems, and intranets improve organizational performance. Assess the role of the information systems function in a business.
Business Processes
Fulfilling a customer order involves a complex set of steps that requires the close coordination of the sales, accounting, and manufacturing functions.
A Payroll TPS
A TPS for payroll processing captures employee payment transaction data (such as a time card). System outputs include online and hard-copy reports for management and employee paychecks.
AN LSBF TPS
Swipe card system is a TPS system Characteristics
o o o o
WHY?
AN LSBF MIS
Student Attendance Reporting Tool is an MIS Characteristics
o o o o
WHY?
How Management Information Systems obtain their Data from the Organisations TPS
In the system illustrated by this diagram, three TPS supply summarized transaction data to the MIS reporting system at the end of the time period. Managers gain access to the organizational data through the MIS, which provides them with the appropriate reports.
AN LSBF DSS
DSS is a complicated system Characteristics
o o o o
Large Amounts of Data Many data sources (Internal + External) Requires knowledgeable user Very Flexible + Predictive
WHY?
This system pools data from diverse internal and external sources and makes them available to executives in easy-to-use form.
A Brief Look at some popular Enterprise Systems Specifically: ERP, CRM, SCM, KM
Enterprise Systems
Span functional areas Execute business processes across firm Include all levels of management
Four major applications: - Enterprise Resource Planning systems - Supply chain management systems - Customer relationship management systems - Knowledge management systems
Enterprise Systems
Enterprise applications Automate processes Span multiple business functions Span organizational levels Often extend outside the organization.
Enterprise Resource Planning (ERP) Collects data from different firm functions and stores data in single central data repository Resolves problem of fragmented, redundant data sets and systems Enable: o Coordination of daily activities o Efficient response to customer orders (production, inventory) o Provide valuable information for improving management decision making
Customer orders, shipping notifications, optimized shipping plans, and other supply chain information flow among Haworths Warehouse Management System (WMS), Transportation Management System (TMS), and its back-end corporate systems
Illustrated here are some of the capabilities of Salesforce.com, a market-leading provider of on-demand customer relationship management (CRM) software. CRM systems integrate information from sales, marketing, and customer service.
Reports To
Organising Information Systems Function Large multidivisional company but under centralised control
WHY? The needs of the departments are so different. This appears to be intelligent choice for this organization. Different parts of the IT department are assigned to different functional groups, but managed by IT hierarchy of managers.
C: Represented in each division of a large multidivisional company but under centralised control
Using Information Systems to achieve Competitive Advantage How can we make our organization more competitive?
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Michael Porters competitive forces model o Five competitive forces shape fate of firm in the industry
The bargaining power of suppliers The threat of the entry of new competitors The intensity of competitive rivalry The threat of substitute products or services The bargaining power of customers (buyers)