Top Banner
Types of Types of Information Information systems systems BY, BY, Ikhlaq Ikhlaq
38

Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

Mar 26, 2015

Download

Documents

Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

Types of Types of Information Information

systemssystemsBY,BY,

IkhlaqIkhlaq

Page 2: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

IS ACTIVE DIFFERENT IS ACTIVE DIFFERENT LEVELSLEVELS

Operational-level systemsOperational-level systems Support Support operational managersoperational managers by monitoring by monitoring

the day-to-day’s elementary activities and the day-to-day’s elementary activities and transactions of the organization. e.g. TPS and transactions of the organization. e.g. TPS and OASOAS

Knowledge-level systemsKnowledge-level systems support support knowledge and data workersknowledge and data workers in in

designing products, distributing information, and designing products, distributing information, and coping with paperwork in an organization. e.g. coping with paperwork in an organization. e.g. KWS.KWS.

Management-level systemsManagement-level systems support the monitoring, controlling, decision-support the monitoring, controlling, decision-

making, and administrative activities of making, and administrative activities of middle middle managersmanagers.. e.g. MIS, DSS e.g. MIS, DSS

Strategic-level systemsStrategic-level systems support long-range planning activities of support long-range planning activities of senior senior

managementmanagement.. e.g. ESS e.g. ESS

Page 3: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

Classification of ISClassification of ISInformation Systems

Operations Support System

Management Support System

Transaction processing systems

Process control systems

Office automation systems

Management information systems

Decision support systems

Executive information systems

Page 4: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

Major Types of Information Major Types of Information SystemsSystems

S tra te g ic L e v e l S y s te m s5 -y e a r

s a le s t re n dfo re c a s t in g

5 -y e a ro p e ra t in g

p la n

5 -y e a rb u d g e t

fo re c a s t in g

P ro fitp la n n in g

M a n p o w e rp la n n in g

M a n a g e m e n t -L e v e l S y s te m sS a le sm a n a g e m e n t

S a le s re g io na n a ly s is

I n v e n to ryC o n tro l

P ro d u c t io nS c h e d u lin g

A n n u a lb u d g e t in g

C o s ta n a ly s is

C a p ita lI n v e s tm e n t a n a ly s is

P ric in g /p ro fita b ilitya n a ly s is

R e lo c a t io na n a ly s is

C o n tra c t c o s ta n a ly s is

K n o w le d g e -L e v e l S y s te m sE n g in e e rin gw o rk s ta t io n s

W o rdp ro c e s s in g

G ra p h ic sw o rk s ta t io n s

D o c u m e n tI m a g in g

M a n a g e ria lw o rk s ta t io n s

E le c tro n icC a le n d a rs

O p e ra t io n a l L e v e l S y s te m s

O rd e r T ra c k in g

O rd e r p ro c e s s in g

M a c h in e c o n tro l

P la n t s c h e d u lin g

M a te ria l m o v e m e n tc o n tro l

S e c u rit ie st ra d in g

C a s hm a n a g e m e n t

P a y ro ll

A c c o u n ts p a y a b le

A c c o u n ts re c e iv a b le

C o m p e n s a t io n

T ra in in g & d e v e lo p m e n t

E m p lo y e e re c o rd k e e p in g

T Y P E S O F S Y S T E M S

E S S

M I S

D S S

K W S

O A S

T P S

S a le s a n dm a rk e t in g

M a n u fa c tu rin g F in a n c e A c c o u n t in g H u m a nR e s o u rc e s

Page 5: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

TPSTPS The first The first Computer-based Information System Computer-based Information System

Called EDP systems.Called EDP systems. Latter it was coined as Account information system (AIS)Latter it was coined as Account information system (AIS) Today known as TPSToday known as TPS TPS is an organized collection, store and dissemination TPS is an organized collection, store and dissemination

of people, procedures, S/W & DB, devices used to of people, procedures, S/W & DB, devices used to process the basic business transaction data and records process the basic business transaction data and records to complete business transactions.to complete business transactions.

Transaction Processing Systems (TPS):Transaction Processing Systems (TPS): designed to designed to reflect large volumes of routine repetitive transactions reflect large volumes of routine repetitive transactions or routine operations /activities or tasks of a firm which or routine operations /activities or tasks of a firm which are related to customer contacts.are related to customer contacts.

Most of the information produced by the TPS are for the Most of the information produced by the TPS are for the use of the person outside the organization eg employees use of the person outside the organization eg employees are paid at regular intervals, expenses are monitored are paid at regular intervals, expenses are monitored are compared to budget are compared to budget

Page 6: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

Features of TPSFeatures of TPS Provide foundation data for many other systems Provide foundation data for many other systems

eg they provide support for decision makers eg they provide support for decision makers through MIS & DSSthrough MIS & DSS

Essential to business success even today, as TPS Essential to business success even today, as TPS work with a large amount of I/P & O/P data & work with a large amount of I/P & O/P data & use this data to update the official records of use this data to update the official records of the company.the company.

These information play a vital role in providing These information play a vital role in providing value to the customers E.g. transactions like value to the customers E.g. transactions like sales to customers, customer orders,, sales to customers, customer orders,, accounts accounts payablepayable ,payments to suppliers, A/C receivables , ,payments to suppliers, A/C receivables , Billing, payroll, supplier payments are examples.Billing, payroll, supplier payments are examples.

Page 7: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

CHARACTERISTICS OF TPSCHARACTERISTICS OF TPS

TYPE: Operational-levelTYPE: Operational-level INPUTS: transactions, eventsINPUTS: transactions, events PROCESSING: PROCESSING: listing, merginglisting, merging ,updating ,updating OUTPUTS: detailed reports OUTPUTS: detailed reports USERS: operations personnel, supervisorsUSERS: operations personnel, supervisors DECISION-MAKING: highly structuredDECISION-MAKING: highly structured

Page 8: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

OISOIS

Operations Information Systems Operations Information Systems (OIS):(OIS):

Gathers comprehensive data, organizes Gathers comprehensive data, organizes it and summarizes it in a form valuable it and summarizes it in a form valuable to managers.to managers. Can help managers with non-routine Can help managers with non-routine

decisions such as customer service and decisions such as customer service and productivity.productivity.

Provides sales, inventory & performance oriented Provides sales, inventory & performance oriented data.data.

Page 9: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

Management Information Management Information SystemSystem

TPS were generally unable to transform the volumes TPS were generally unable to transform the volumes of data into aggregated ,stored ,organized and of data into aggregated ,stored ,organized and processed information needed by the managers.processed information needed by the managers.

Over the time IS became aware of underlying logic Over the time IS became aware of underlying logic of the processes that they followed in problem of the processes that they followed in problem solving and structured decision making.solving and structured decision making.

Integrated collection of people, procedures, DB, & Integrated collection of people, procedures, DB, & devicesdevices that collect, process, store and disseminate that collect, process, store and disseminate information to support decision making and Problem information to support decision making and Problem Solving and to Solving and to help & achieve organizational goals”. help & achieve organizational goals”.

MIS role is to provide the right information to the MIS role is to provide the right information to the right person in the right format at right time it also right person in the right format at right time it also answer queries and forecast trends and emphasizes answer queries and forecast trends and emphasizes on producing periodic/routine reporting on known on producing periodic/routine reporting on known and anticipated issues in different functional areas and anticipated issues in different functional areas of businesses eg of businesses eg a daily list of employees and the a daily list of employees and the hours they work, or a monthly report of expenses as hours they work, or a monthly report of expenses as compared to a budget. compared to a budget.

Page 10: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

Objectives of MISObjectives of MIS

An Information system at the management level of an An Information system at the management level of an organization that serves the functions of planning, organization that serves the functions of planning, controlling, and decision making by providing routine controlling, and decision making by providing routine summary, exception reports and summary, exception reports and results of mathematical results of mathematical simulationsimulation..

MIS is a computer based system , operational at MIS is a computer based system , operational at management management level/Functional level.level/Functional level.

The information provided by the MIS describes the firm or The information provided by the MIS describes the firm or one of its major system in the terms of one of its major system in the terms of What happened in the past, What happened in the past, What is happening What is happening What is likely to happen in future.What is likely to happen in future.

Primary purpose of an MIS is to help an org to archive its Primary purpose of an MIS is to help an org to archive its goals by providing managers with insight into the regular goals by providing managers with insight into the regular operations of the orgoperations of the org

MIS help to control, organize & plan the org program more MIS help to control, organize & plan the org program more effectivelyeffectively

These systems monitor, organize, summarize, and display These systems monitor, organize, summarize, and display information for supporting the transaction processing information for supporting the transaction processing systems and systems and routine decision making in the functional areas. routine decision making in the functional areas.

Page 11: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

MIS Vs PSMIS Vs PS

Transaction Transaction Processing Processing Systems (TPS)Systems (TPS) Support Support

operationoperation Management and Management and

controlcontrol Routine, normal Routine, normal

operationsoperations

Management Management Information Information Systems (MIS)Systems (MIS) Provide decision-Provide decision-

making support making support for routine, for routine, structured structured decisionsdecisions

Closely linked to Closely linked to and fed by TPSand fed by TPS

Page 12: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

OrderProcessing

system

MaterialsMgt

system

GeneralLedgersystem

Salesdata

ProductCostdata

Productiondata

Customerfile

Productionfile

A/Cfile

Expensesdata

MIS

Reports

Mangers

TPS MIS

Page 13: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

SUMMARY OF MISSUMMARY OF MIS

MIS is activities to manage information for problem solving and MIS is activities to manage information for problem solving and decision making in an entity by managed the following decision making in an entity by managed the following activities:activities:

Acquiring information by gathering data and processed the data to be the valuable Acquiring information by gathering data and processed the data to be the valuable information efficientlyinformation efficiently

Using the information in the most effective wayUsing the information in the most effective way Discarding the information at the proper timeDiscarding the information at the proper time

TYPE: Management-levelTYPE: Management-level INPUTS: high volume dataINPUTS: high volume data PROCESSING: simple models PROCESSING: simple models OUTPUTS: summary reportsOUTPUTS: summary reports

Periodic Schedule reportsPeriodic Schedule reports Demand or Response reportDemand or Response report Exception reportException report Push reportPush report

USERS: middle managersUSERS: middle managers DECISION-MAKING: structured to semi-structuredDECISION-MAKING: structured to semi-structured EXAMPLEEXAMPLE: annual budgeting: annual budgeting MIS support structured decisions at the operational and management MIS support structured decisions at the operational and management

control levels. However, they are also useful for planning purposes of control levels. However, they are also useful for planning purposes of senior management staff.senior management staff.

Page 14: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

Skills required in MISSkills required in MIS

1.1. Computer literacy Computer literacy

1.1. understanding of computer terminologyunderstanding of computer terminology

2.2. a recognition of the strength and weakness of the a recognition of the strength and weakness of the computercomputer

3.3. an ability to use the computeran ability to use the computer

2.2. Information literacy Information literacy

1.1. Understanding how to use information at each Understanding how to use information at each step of problem solving process.step of problem solving process.

2.2. Understanding where information can be Understanding where information can be obtainedobtained

3.3. Understanding how to share information with Understanding how to share information with otherother

Page 15: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

MIS USES SOFTWAREMIS USES SOFTWARE MIS produces information using two types of MIS produces information using two types of

software:software: 1- Report –writing software that produces 1- Report –writing software that produces

both periodic and special reports (special both periodic and special reports (special reports are also called ad-hoc reports) e.g. reports are also called ad-hoc reports) e.g. database management systems.database management systems.

2-Mathematical models are used to produce 2-Mathematical models are used to produce information as a result of simulation of the information as a result of simulation of the firm’s operations. Mathematical models that firm’s operations. Mathematical models that describe the firm’s operations can be written describe the firm’s operations can be written in any programming language.in any programming language.

However special modeling languages make However special modeling languages make the task more easier and faster.the task more easier and faster.

Page 16: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

MIS USERS Cont…MIS USERS Cont…

Managers require information to identify problems ,develop Managers require information to identify problems ,develop alternative solution, select the best ones, and finally review the alternative solution, select the best ones, and finally review the consequences of their decision.consequences of their decision.

MIS are used by managers ,however other non-manager inside the MIS are used by managers ,however other non-manager inside the firm as well as persons and organizations outside the firm. firm as well as persons and organizations outside the firm. professionals use the out puts of MIS. professionals use the out puts of MIS.

Managers are the individuals who need the information vary widely.Managers are the individuals who need the information vary widely. ManagersManagers The idea of using the computer as a management information system The idea of using the computer as a management information system

was a breakthrough because it recognized managers’ need for was a breakthrough because it recognized managers’ need for problem solving information. Embracing the MIS concept made problem solving information. Embracing the MIS concept made several firms develop applications specifically aimed at management several firms develop applications specifically aimed at management support.support.

Non-managersNon-managers Non-manages and staff specialists also use the MIS output.Non-manages and staff specialists also use the MIS output. Persons & organizations in the firm’s environmentPersons & organizations in the firm’s environment Users outside the company benefit from the MIS as well. They can be Users outside the company benefit from the MIS as well. They can be

customers receiving invoices, stockholders getting dividend checks, customers receiving invoices, stockholders getting dividend checks, and the federal government checking tax reportsand the federal government checking tax reports..

Page 17: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

VIRTUAL OFFICE VIRTUAL OFFICE SYSTEMSSYSTEMS

Systems that enable office automation by using EDP and Systems that enable office automation by using EDP and communication facilities e.g. VOIP, Video conferencing, FAX, communication facilities e.g. VOIP, Video conferencing, FAX, Computer conferencing, voice -mail, e-mail, audio Computer conferencing, voice -mail, e-mail, audio conferencing to make manager more efficient.conferencing to make manager more efficient.

Now a days these systems are referred as personal Now a days these systems are referred as personal productivity systems (PPS) e.g. PDA digital dairies etc.productivity systems (PPS) e.g. PDA digital dairies etc.

The ability of office automation also led the concept of Virtual The ability of office automation also led the concept of Virtual Offices that is the performance of office activities independent Offices that is the performance of office activities independent of a particular physical location eh telecommuting, hoteling of a particular physical location eh telecommuting, hoteling and other telecommuting-services.and other telecommuting-services.

Hoteling is a extended concept of telecommuting that defines Hoteling is a extended concept of telecommuting that defines that come to the central office only when needed.that come to the central office only when needed.

Because all employees of telecommuting do not have all Because all employees of telecommuting do not have all facilities at their homes.facilities at their homes.

Hotels are the central offices with the all telecommuting Hotels are the central offices with the all telecommuting facilities for all business processes. facilities for all business processes.

Virtual offices have made managers more available to Virtual offices have made managers more available to customer and others within the organization.customer and others within the organization.

Page 18: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

DSSDSS Information system at the management level of an organization Information system at the management level of an organization

that combines data and sophisticated analytical models or data that combines data and sophisticated analytical models or data analysis tools to support semi-structured and unstructured analysis tools to support semi-structured and unstructured decision making.decision making.

However latter on DSS were subsequently expanded to However latter on DSS were subsequently expanded to encompass group decision making ,AI and on-line analytical encompass group decision making ,AI and on-line analytical processing (OLAP)processing (OLAP)

It offer greater computing as well as graphical CapabilitiesIt offer greater computing as well as graphical Capabilities Support all phases of decision making and a variety of decision-Support all phases of decision making and a variety of decision-

making processes and stylesmaking processes and styles DSS SUMMARYDSS SUMMARY TYPE: Management-levelTYPE: Management-level INPUTS: low volume dataINPUTS: low volume data PROCESSING: simulations, analysis PROCESSING: simulations, analysis OUTPUTS: decision analysisOUTPUTS: decision analysis USERS: professionals, staff managersUSERS: professionals, staff managers DECISION-MAKING: semi-structuredDECISION-MAKING: semi-structured EXAMPLE:EXAMPLE: sales region analysis sales region analysis

Page 19: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

Decision Support Systems (DSS):Decision Support Systems (DSS): provides interactive provides interactive models to help managers make better decisions.models to help managers make better decisions.

Excellent for unusual, Excellent for unusual, non-programmednon-programmed decisions decisions Analyzes investment potential, new product pricing.Analyzes investment potential, new product pricing. Often used by middle and upper managersOften used by middle and upper managers DSS use sophisticated analysis & modeling tools.DSS use sophisticated analysis & modeling tools.

DSS Levels of AnalysisDSS Levels of Analysis Sensitivity AnalysisSensitivity Analysis

The study of the effect that changes in one or more The study of the effect that changes in one or more parts of a model have on other parts of the model.parts of a model have on other parts of the model.

What-if AnalysisWhat-if Analysis Checks the impact of a change in the assumptions Checks the impact of a change in the assumptions

or other input data on the proposed solution.or other input data on the proposed solution. Goal-seeking AnalysisGoal-seeking Analysis

Find the value of the inputs necessary to achieve a Find the value of the inputs necessary to achieve a desired level of outputdesired level of output

Decision Support Decision Support SystemsSystems

Page 20: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

Data ManagementData Management Includes the database containing relevant data for the decision Includes the database containing relevant data for the decision

situationsituation User InterfaceUser Interface

Enables the users to communicate with and command the DSSEnables the users to communicate with and command the DSS Model management softwareModel management software

Provides a variety of solution modelsProvides a variety of solution models Includes software with fIncludes software with financial, statistical, graphical, inancial, statistical, graphical,

project management,project management, management science, or other management science, or other quantitative models quantitative models

Dialogue ManagerDialogue Manager Allows user interaction with DSSAllows user interaction with DSS

Knowledge ManagementKnowledge Management Provides knowledge for solution of the problem; supports any Provides knowledge for solution of the problem; supports any

of the other subsystems or act as an independent component.of the other subsystems or act as an independent component.

Components and Structure Components and Structure of DSSof DSS

Page 21: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

DSS DSS (continued)(continued)

Page 22: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

Relational Database

Knowledge Database

Multidimensional Database

Relational databaseManagement sys

Multidimensional Database

Management sysInference Engine

Report writing software

Mathematicalmodels

Groupware

Periodic andSpecial reports

GroupwareOutput

MathematicalModels Output

Solutions and Explanations

Outputs fromOLAP

DSS USERS

Page 23: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

Cont……Cont…… 1.DSS offer users flexibility, adaptability, and a quick 1.DSS offer users flexibility, adaptability, and a quick

response.response. 2. DSS operate with little or no assistance from professional 2. DSS operate with little or no assistance from professional

programmers.programmers. 3. DSS provide support for decisions and problems whose 3. DSS provide support for decisions and problems whose

solutions cannot be specified in advance.solutions cannot be specified in advance. 4. DSS use sophisticated data analysis and modelling tools4. DSS use sophisticated data analysis and modelling tools..

NOTE: NOTE: A DSSS take a rifle approach A DSSS take a rifle approach to solve an un-structured problem where to solve an un-structured problem where as an MIS takes a shotgun approach by as an MIS takes a shotgun approach by providing a large group of problem providing a large group of problem solving with information to solve wide solving with information to solve wide range of problemsrange of problems

Page 24: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

General Structure of General Structure of DSSDSS

process

cost

competitors

product

DB

Analytical model DBComprises of

1.Behaviour Model

2.Mgt science Model

3.OR Model

Model Base DSS S/W

computer

Graphics &Reports

Page 25: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

Differences b/w MIS & Differences b/w MIS & DSSDSS

MISMIS DSSDSSDecision Decision support support providedprovided

Provide inform. About Provide inform. About the performance of the performance of the orgthe org

Provide inform. & support Provide inform. & support techniques to analyze specific techniques to analyze specific problems or opportunities. problems or opportunities.

Not innate human decision.Not innate human decision. Can’t overcome a faulty Can’t overcome a faulty decision makingdecision making

Information Information form & form & frequencyfrequency

Periodic, exception, Periodic, exception, demand & push demand & push report & responsesreport & responses

Interactive inquiries & Interactive inquiries & responsesresponses

Information Information formatformat

Pre specified & fixed Pre specified & fixed formatformat

Flexible & adaptable formatFlexible & adaptable format

Information Information Processing Processing methodologymethodology

Inform. Produced by Inform. Produced by extraction & extraction & manipulation of manipulation of business databusiness data

Inform. Produced by Inform. Produced by analytical modeling of analytical modeling of business databusiness data

Page 26: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

Enterprise SystemsEnterprise Systems

B u s in e s s Pro ce s sB u s in e s s Pro ce s sB u s in e s s Pro ce s s

En te rpris e -wide bu s in e s spro ce s s e s

M a n u fa ctu rin g A cco u n t in g

H u m a nR e s o u rce s

S a le s a n dM a rk e t in g

Fin a n ce

En te rpris e S y s te m

V e n do rs C u s to m e rs

Org

aniz

atio

nal

Bou

nda

ries

Org

aniz

atio

nal

Bou

nda

ries

Page 27: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

Suppliers

SCMSourcing & Procurement

ERPInternal business processes

CRMMarketing, sales & service

EMPLOYEEs

PARTNERs

Customers

Knowle dgeMgtCollaboration&Decisionsupport

PartnersRelationshipMgt

Enterprise Application ArchitectureEnterprise Application Architecture

Page 28: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

Enterprise SystemsEnterprise Systems As MIS and DSS were developed without an overall master plan.

Each of them is sparing support at individual department level. During 1990 the firms began to integrate these system and

consequently establishing an integrated system application that is aimed at meeting the needs of particularly all types of organization in its all types of functional areas.

How to control all major business processes with a single s/w architecture in real time

This was named as ERP system. An integration of all of (MISs) across the firm is known as An integration of all of (MISs) across the firm is known as

enterprise resource planning system. enterprise resource planning system. An ERP is a cross functional computer based system that

enables the management of all of the firm’s resources on an organization-wide basis.

Integrated programs that can manage a company’s entire set of business operations, Often coordinate planning, inventory control, production and ordering

ERP provides a support systems in the transaction processing, updating, & reporting across the functions. ERP is a package encompassing all major functions of the business.

Page 29: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

Cont…Cont…

ERP is a cross functional enterprise systems driven by an integrated suite of S/W modules that supports the basic internal business process

of a company. ERP packages build information base & provide knowledge

base business function mgt. The ERP is the main system, interfaced (or) assisted by the other systems in the org. These systems provide the DB to the ERP.

Enterprise systems provide a technology platform where org can integrate & co-ordinate their major internal business processes. They address the problem of organizational inefficiencies created by isolated island of information business processes & technology.

ERP is a firm wide single IS that integrate key business processes so that information can flow freely between different parts of the firm to solve the business problems.

ERP Systems can co-ordinate activities like decisions, & knowledge across many diff. functions, levels & business units in a firm. It includes enterprise systems or ERP, SCM, CRM, & KMS

Page 30: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

Basic features of ERPBasic features of ERP Separation of the program code & the data areas Command language Screen based flow control Common service functions Transaction flow control & help functions Word processing, text editing & action message Diagnostic functions Business values embedded in the processBusiness values embedded in the process Extensive use of stored procedures, triggers & alertsExtensive use of stored procedures, triggers & alerts Strange wise cost data capture for analysis & Strange wise cost data capture for analysis &

decision makingdecision making Resources planning, scheduling & optimizationResources planning, scheduling & optimization Can run in different network environmentCan run in different network environment

Page 31: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

Challenges of ERPChallenges of ERP

Daunting ImplementationDaunting Implementation High Up-front Costs and Future BenefitsHigh Up-front Costs and Future Benefits InflexibilityInflexibility Expensive & time in implementationExpensive & time in implementation Difficulty implementation changeDifficulty implementation change Risks in using one vendorRisks in using one vendor Risk of implementation failureRisk of implementation failure

Page 32: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

BENEFITS OF THE ERPBENEFITS OF THE ERP Better management of resourcesBetter management of resources Customer satisfactionCustomer satisfaction Business operation transparency b/w business partnersBusiness operation transparency b/w business partners The process become faster due to work group technologyThe process become faster due to work group technology The ERP scope enlarged through the internet/intranet The ERP scope enlarged through the internet/intranet

accessaccess Due to the client/server, the application of object Due to the client/server, the application of object

technology & use of the front end tools, the process changes technology & use of the front end tools, the process changes can be easily carried out.can be easily carried out.

The ERP design is proactive, it make mgt alert at a no. of The ERP design is proactive, it make mgt alert at a no. of points like demanding the decisions.points like demanding the decisions.

ERP still remain a valid solution with the expansion of ERP still remain a valid solution with the expansion of business as it is a scalable architecture. business as it is a scalable architecture.

Firm structure and organization: One OrganizationFirm structure and organization: One Organization Management: Firm wide Knowledge-based Management Management: Firm wide Knowledge-based Management

Processes Processes Technology: Unified PlatformTechnology: Unified Platform Business: More Efficient Operations and Customer-driven Business: More Efficient Operations and Customer-driven

Business ProcessesBusiness Processes

Page 33: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

ERP SELECTIONERP SELECTION Only a few vendors market offers an ERP packages.

Even world’s two largest companies like Microsoft and IBM do not make ERP yet they run large portions of their businesses using software from ERP vendors.

One ERP provider is SAP, is a large multinational company. Based in Germany.

However Oracle and Siebel are main SAP competitors.

PeopleSoft was another formerly a competitor ,but in Jan 2005 Oracle acquired PeopleSoft.

Each product has its own USP & differs in a no.of ways in content, scope, in case of implementation etc.

The selection can be made on 3 dimensions. It as follows;

1. Vendor Evaluation 2. Technology Evaluation 3. ERP solution Evaluation

Page 34: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

Vendor EvaluationVendor Evaluation

Business strength of the vendor Product share in total business of the

vendor Future plans of the vendor Market reach & resource strength of the

vendor Ability to execute the ERP solution Perspective plan of the ERP improvement

with technology development Business philosophy of the vendor

Page 35: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

Technology EvaluationTechnology Evaluation

Client server architecture & its implementation 2 Client server architecture & its implementation 2 tier or 3tiretier or 3tire

Object orientation in development & methodologyObject orientation in development & methodology Interface mechanism: data transfer, real time Interface mechanism: data transfer, real time

accessaccess Support system technology like bar coding, EDI, Support system technology like bar coding, EDI,

imaging, comm., networkimaging, comm., network H/W – S/W configuration mgtH/W – S/W configuration mgt Operating system & its levels of usage in the Operating system & its levels of usage in the

systemsystem Use of case tool, screen generators, report Use of case tool, screen generators, report

writers, screen printers & batch processorwriters, screen printers & batch processor Handling of client/server data & application logic Handling of client/server data & application logic

Page 36: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

ERP Solution EvaluationERP Solution Evaluation

ERP fit for the business of the org in terms of the ERP fit for the business of the org in terms of the functions, features & processesfunctions, features & processes

Degree of deviation from the standard ERP productDegree of deviation from the standard ERP product Ease of use: easy to learn, implement & trainEase of use: easy to learn, implement & train Flexible design & ability to migrate to the ERP Flexible design & ability to migrate to the ERP

environment environment Rating on performance, response & integrationRating on performance, response & integration product quality in terms of security, reliability, & product quality in terms of security, reliability, &

precision in resultsprecision in results Solution architecture & technologySolution architecture & technology Documentation for system handling & Documentation for system handling &

administrationadministration

Page 37: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

Extended EnterprisesExtended Enterprises

Extended Enterprises:Extended Enterprises: Networks Networks linking systems of multiple firms in an linking systems of multiple firms in an industry. Also called extended industry. Also called extended enterprises.enterprises.

Vertical industrial networksVertical industrial networks Networks Networks for integrating the operations of a firm for integrating the operations of a firm with its suppliers.with its suppliers.

Horizontal industrial networksHorizontal industrial networks Networks for linking firms across an Networks for linking firms across an entire industry.entire industry.

Page 38: Types of Information systems BY, Ikhlaq Ikhlaq. IS ACTIVE DIFFERENT LEVELS Operational-level systems Operational-level systems Support operational managers.

Thank youThank you