Introduction to Information Systems in Business Dr Wagner Decision & Information Technologies.

Introduction to Introduction to Information Information Systems in Systems in BusinessBusiness

Dr WagnerDr Wagner

Decision & Information TechnologiesDecision & Information Technologies

THE CHANGING BUSINESS THE CHANGING BUSINESS ENVIRONMENTENVIRONMENT

• GLOBALIZATIONGLOBALIZATION

• INDUSTRIAL ECONOMIESINDUSTRIAL ECONOMIES

• TRANSFORMATION OF TRANSFORMATION OF THE ENTERPRISETHE ENTERPRISE

GLOBALIZATIONGLOBALIZATION

• MANAGEMENT & CONTROLMANAGEMENT & CONTROL

• COMPETITION IN WORLD MARKETSCOMPETITION IN WORLD MARKETS

• GLOBAL WORK GROUPSGLOBAL WORK GROUPS

• GLOBAL DELIVERYGLOBAL DELIVERY SYSTEMSSYSTEMS

INDUSTRIAL ECONOMIESINDUSTRIAL ECONOMIES• KNOWLEDGE-BASED ECONOMIESKNOWLEDGE-BASED ECONOMIES• PRODUCTIVITYPRODUCTIVITY• NEW PRODUCTS & SERVICESNEW PRODUCTS & SERVICES• KNOWLEDGE AS AN ASSETKNOWLEDGE AS AN ASSET• TIME-BASED COMPETITIONTIME-BASED COMPETITION• SHORTER PRODUCT LIFESHORTER PRODUCT LIFE• TURBULENT ENVIRONMENTTURBULENT ENVIRONMENT

0%

10%

20%

30%

40%

50%

60%

70%

1900

1910

1920

1930

1940

1950

1960

1970

1980

1997

YEAR

% SERVICE

% WHITE COLLAR

% BLUE COLLAR

% FARMING

LABOR FORCE COMPOSITION 1900-1997LABOR FORCE COMPOSITION 1900-1997

TRANSFORMATION OF TRANSFORMATION OF ENTERPRISEENTERPRISE• FLATTENINGFLATTENING

• DECENTRALIZATIONDECENTRALIZATION

• FLEXIBILITYFLEXIBILITY

• LOCATION INDEPENDENCELOCATION INDEPENDENCE

• LOW TRANSACTION COSTSLOW TRANSACTION COSTS

• EMPOWERMENTEMPOWERMENT

• COLLABORATIVE WORKCOLLABORATIVE WORK

SYSTEM VIEWSYSTEM VIEW

INPUT OUTPUTPROCESS

FEEDBACK

FUNCTIONS OF AN INFORMATION FUNCTIONS OF AN INFORMATION SYSTEMSYSTEM

INPUT OUTPUTPROCESS

FEEDBACK

INFORMATION SYSTEMINFORMATION SYSTEM

ENVIRONMENTENVIRONMENT

Customers SuppliersCustomers Suppliers

Regulatory Stockholders CompetitorsRegulatory Stockholders CompetitorsAgenciesAgencies

ORGANIZATIONORGANIZATION

INFORMATION SYSTEMSINFORMATION SYSTEMS

ORGANIZATIONSORGANIZATIONS TECHNOLOGYTECHNOLOGY

MANAGEMENTMANAGEMENT

INFORMATIOINFORMATIONN

SYSTEMSSYSTEMS

MAJOR MAJOR BUSINESS FUNCTIONSBUSINESS FUNCTIONS

• SALES & MARKETINGSALES & MARKETING

• MANUFACTURINGMANUFACTURING

• FINANCEFINANCE

• ACCOUNTINGACCOUNTING

• HUMAN RESOURCESHUMAN RESOURCES

SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

TECHNICAL APPROACHESTECHNICAL APPROACHES

APPROACHES TO INFO SYSTEMSAPPROACHES TO INFO SYSTEMS

MISMIS

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

Recent trends…Recent trends…

• 1950s:1950s: TECHNICAL CHANGES TECHNICAL CHANGES

• 60s-70s:60s-70s: MANAGERIAL MANAGERIAL CONTROLCONTROL

• 80s-90s:80s-90s: INSTITUTIONAL INSTITUTIONAL CORE ACTIVITIESCORE ACTIVITIES

GROWING IMPORTANCE?GROWING IMPORTANCE?

SCOPE OF INFO SYSTEMSSCOPE OF INFO SYSTEMS

TYPES OF INFORMATION SYSTEMSTYPES OF INFORMATION SYSTEMS

DATA WORKERSDATA WORKERS

KIND OF SYSTEM GROUPS SERVEDKIND OF SYSTEM GROUPS SERVED

STRATEGIC LEVEL SENIOR STRATEGIC LEVEL SENIOR MANAGERSMANAGERS

MANAGEMENT LEVEL MIDDLE MANAGEMENT LEVEL MIDDLE MANAGERSMANAGERS

OPERATIONAL OPERATIONAL

OPERATIONAL LEVEL OPERATIONAL LEVEL MANAGERS MANAGERS

KNOWLEDGE LEVEL KNOWLEDGE &KNOWLEDGE LEVEL KNOWLEDGE &

SALES & MANUFACTURING FINANCE ACCOUNTING HUMANSALES & MANUFACTURING FINANCE ACCOUNTING HUMAN RESOURCESRESOURCESMARKETINGMARKETING

MAJOR TYPES OF SYSTEMSMAJOR TYPES OF SYSTEMS

• EXECUTIVE SUPPORT SYSTEMS EXECUTIVE SUPPORT SYSTEMS (ESS)(ESS)• DECISION SUPPORT SYSTEMS DECISION SUPPORT SYSTEMS (DSS)(DSS)• MANAGEMENT INFORMATION SYSTEMS MANAGEMENT INFORMATION SYSTEMS (MIS)(MIS)• OFFICE AUTOMATION SYSTEMS OFFICE AUTOMATION SYSTEMS (OAS)(OAS)• TRANSACTION PROCESSING TRANSACTION PROCESSING SYSTEMS SYSTEMS

(TPS)(TPS)

**

TYPICAL TPS APPLICATIONSTYPICAL TPS APPLICATIONSSales & Marketing SystemsSales & Marketing Systems

MAJOR FUNCTIONS OF SYSTEMS:MAJOR FUNCTIONS OF SYSTEMS:

• Sales management, market research, Sales management, market research, promotion, pricing, new productspromotion, pricing, new products

MAJOR APPLICATION SYSTEMS:MAJOR APPLICATION SYSTEMS:

• Sales order info system, market Sales order info system, market research system, pricing systemresearch system, pricing system

**

MISMIS

MIS FILESMIS FILES

SALES DATA

UNIT PRODUCT COST

PRODUCT CHANGE DATA

EXPENSE DATA

MISREPORTS

MANAGERSMANAGERS

TPS

Order Processing

System

Materials Resource

Planning System

General Ledger

System

ORDER FILE

PRODUCTION MASTER FILE

ACCOUNTING FILES

TPS DATA FOR MIS TPS DATA FOR MIS APPLICATIONSAPPLICATIONS

INTERRELATIONSHIPS AMONG INTERRELATIONSHIPS AMONG SYSTEMSSYSTEMS

ESS

TPSOAS

DSSMIS

Enterprise-Wide Enterprise-Wide SystemsSystems

• Enterprise Resource Planning (ERP)Enterprise Resource Planning (ERP)• Customer Relationship Management Customer Relationship Management

(CRM)(CRM)• Strategic Enterprise Management Strategic Enterprise Management

(SEM)(SEM)• Supply Chain Management (SCM)Supply Chain Management (SCM)• Data Warehouse/BIData Warehouse/BI• Enterprise PortalsEnterprise Portals

Sales & Marketing

Accounting

Finance

Manufacturing

Human Resources

ERP SYSTEMERP SYSTEM

Business ProcessesBusiness Processes

Enterprise-wideEnterprise-wide Business ProcessesBusiness Processes

Vendors Customers

BENEFITS OF ERP BENEFITS OF ERP SYSTEMSSYSTEMS

• FIRM STRUCTURE & ORGANIZATION:FIRM STRUCTURE & ORGANIZATION: One organizationOne organization

• MANAGEMENT:MANAGEMENT: Firmwide knowledge- Firmwide knowledge-based management processesbased management processes

• TECHNOLOGY:TECHNOLOGY: Unified platform Unified platform• BUSINESS:BUSINESS: More efficient operations & More efficient operations &

customer-driven business processescustomer-driven business processes

CHALLENGES OF ERP CHALLENGES OF ERP SYSTEMSSYSTEMS

• DAUNTING IMPLEMENTATIONDAUNTING IMPLEMENTATION

• HIGH UP FRONT COSTS & FUTURE HIGH UP FRONT COSTS & FUTURE BENEFITSBENEFITS

• INFLEXIBILITYINFLEXIBILITY

• HARD TO REALIZE STRATEGIC HARD TO REALIZE STRATEGIC VALUEVALUE

**

CRM ProcessesCRM Processes

• MarketingMarketing– Focus on lead generation and awareness of the products

and services being offered by a firm

• SalesSales– Convert leads into sales

• Customer ServiceCustomer Service– Retain and upgrade existing customers

• Data AnalyticsData Analytics– Measuring the performance of your CRM

deployment with KPIs

IMPACT OF THE INTERNET ON IMPACT OF THE INTERNET ON BUSINESS SYTEMSBUSINESS SYTEMS

• COMMUNICATE & COLLABORATECOMMUNICATE & COLLABORATE

• ACCESS INFORMATIONACCESS INFORMATION

• DISCUSSDISCUSS

• OBTAIN INFORMATIONOBTAIN INFORMATION

• ENTERTAINENTERTAIN

• TRANSACT BUSINESS TRANSACT BUSINESS

QUESTIONS?QUESTIONS?

???

THANKS!!THANKS!!

GO CATS!!