TYPES OF INFORMATION SYSTEMS
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Nov 07, 2014
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TYPES OF INFORMATION SYSTEMS
© 2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN: 0131791036
Chapter 3, Slide 2
Review Mapping Symbols
Typical, but others may be used as appropriate
Start or finishing point
Step or activity in the process
Decision point (typically requires a “yes” or “no”)
Input or output (typically data or materials)
Document created
Delay
Inspection
Move activity
© 2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN: 0131791036
Our Flow Chart ExampleChapter
3, Slide 3
DealerFaxesOrder
PaperOrder
Created
Order SitsIn FaxIn Box
Internal MailDelivers Fax
Order SitsIn Clerk’s
In Box
ClerkProcesses
Order
Is ItemIn Stock?
WorkerPicksOrder
Clerk NotifiesDealer and
Passes OrderOn to Plant
InspectorChecksOrder
Transport FirmDelivers Order
DealerReceives
Order
2 minutes0.5% of orders incorrect1 to 3 hours
2 hours on averageNo history of lost,damaged, or incorrectdeliveries
YES
NO
10 to 45 minutes20 minutes on average
0 to 2 hours1 hour on average0.5 to 1.5 hours
1 hour on average1% of orders lost
0 to 4 hours2 hours on average
4% oforders lost
5 minutes
© 2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN: 0131791036
Improving Business Processes: Guidelines
Chapter 3, Slide 4
Attack each delay What causes it? How long is it? How could we reduce its impact?
Examine each decision point Is this a real decision or just a checking
activity? If the latter, can we automate or eliminate
it? Dematerialize documentation.
Can we do it electronically? Eliminate multiple copies? Share a common database?
© 2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN: 0131791036
More GuidelinesChapter
3, Slide 5
Look for loops Why is this loop here? Would we need to loop if we didn’t have any
failures in quality, planning, etc? Process steps
What is the value of this activity, relative to its cost?
Is this a necessary activity (support or developmental?), or something else?
© 2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN: 0131791036
Taking It Further ...Chapter
3, Slide 6
All activities add costs and time
Not all value-added activities provide “net” value “Underperformers”
Not all support and developmental activities are necessary Necessary versus “symptomatic”
From Recording Transactions to Providing Expertise: Types of Information Systems
Many types of information systems Capabilities of applications have been
combined and merged Management Information System:
supports planning, control, and making decisions
Transaction Processing Systems
Most widely used type of system Records data collected at point where
organisation interacts with other parties Encompasses cash registers, ATMs and
purchase order systems
Supply Chain Management Systems
Supply chain: sequence of activities involved in producing and delivering products Activities include marketing, purchasing
raw materials, manufacturing, shipping, billing, collection, and after-sale services
Also known as enterprise resource planning (ERP) systems
Customer Relationship Management Systems
Customer relationship management: managing relations with customers Used in combination with telephones to
provide customer service Often linked to Web applications that track
online transactions
Business Intelligence Systems
Business Intelligence: gather data to help organisation compete Often contains statistical models Access large pools of data
Data warehouse: large database that usually store transactional records
Decision Support and Expert Systems
Decision support system: supports decision-making Relies on models to produce tables Extrapolates data to predict outcomes
Expert system: supports knowledge-intensive decision-making Uses artificial intelligence
Geographic Information Systems
Geographic information system: ties data to physical locations
Represents data on a map in different formats
May reflect demographic information in addition to geographic
May use information from GPS satellites
Geographic Information Systems (continued)
Information Systems in Business Functions
Functional business area: services within a company that support main business Includes accounting, finance, marketing,
and human resources Part of a larger enterprise system
Accounting
Information systems help record transactions
Produce periodic statements Create required reports for legal
compliance Create supplemental reports for
managers
Finance
Finance systems facilitate financial planning and business transactions
Tasks include organising budgets, managing cash flow, analysing investments, and making decisions
Marketing
Pinpoint likely customers and promote products
Marketing information systems analyse demand for products in regions and demographic groups Identify trends in demand for
products/services Web provides opportunity to collect
marketing data
Human Resources
Human resource management systems aid record-keeping Must keep accurate records Aids recruiting, selection, placement, and
reward analysis Performance evaluation systems provide
grading utilities
Web Empowered Enterprises E-commerce: Buying and selling goods
and services through Internet Internet is a vast network of computers
connected globally Web has a profound impact on
information systems
Self-Check
Enumerate the types of Information Systems
Identify the 4 functions in business information systems
Activity
Identify other existing departments in your organization (Accounting, Finance, Human Resources, Marketing, etc.)
Construct the flow chart Identify delays in the process Recommend needed information
systems