INFS CHAPTER 2

BI

- Class of software applications - Analyze current and historical data to find patterns and trends and aid decision-making - Used in systems that support middle and senior management • Data-driven DSS • Executive support systems (ESS)

What are the two types of DSS?

- Model driven DSS • Voyage-estimating systems - Data driven DSS • Intrawest's marketing analysis systems

MIS

- Serve middle management - Provide reports on firm's current performance, based on data from TPS - Provide answers to routine questions with predefined procedure for answering them Typically have little analytic capability

DSS

- Serve middle management - Support nonroutine decision making • Example: What is the impact on production schedule if December sales doubled? - Often use external information as well from TPS and MIS - Model driven DSS • Voyage-estimating systems - Data driven DSS • Intrawest's marketing analysis systems

TPS

- Serve operational managers and staff - Perform and record daily routine transactions necessary to conduct business • Examples: sales order entry, payroll, shipping - Allow managers to monitor status of operations and relations with external environment - Serve predefined, structured goals and decision making

Relationship of systems to one another

- TPS: Major source of data for other systems - ESS: Recipient of data from lower-level systems - Data may be exchanged between systems - In reality, most businesses' systems only loosely integrated

CPO

: is responsible for ensuring that the company complies with existing data privacy laws.

4. Understand the following four major types of information systems used in organizations. What are the examples for each? What are their relationships to each other? What are their differences?

DSS: • Decision support systems - Serve middle management - Support nonroutine decision making • Example: What is the impact on production schedule if December sales doubled? - Often use external information as well from TPS and MIS - Model driven DSS • Voyage-estimating systems - Data driven DSS • Intrawest's marketing analysis systems

4. Understand the following four major types of information systems used in organizations. What are the examples for each? What are their differences?

ESS: • Executive support systems - Support senior management - Address nonroutine decisions requiring judgment, evaluation, and insight - Incorporate data about external events (e.g. new tax laws or competitors) as well as summarized information from internal MIS and DSS - Example: ESS that provides minute-to-minute view of firm's financial performance as measured by working capital, accounts receivable, accounts payable, cash flow, and inventory • Systems from a constituency perspective - Transaction processing systems: supporting operational level employees - Management information systems and decision-support systems: supporting managers - Executive support systems: supporting executives

4. Understand the following four major types of information systems used in organizations. What are the examples for each? What are their relationships to each other? What are their differences?

MIS: • Management information systems - Serve middle management - Provide reports on firm's current performance, based on data from TPS - Provide answers to routine questions with predefined procedure for answering them - Typically have little analytic capability

End user

Representatives of other departments, for whom applications are developed

4. Understand the following four major types of information systems used in organizations. What are the examples for each? What are their differences?

TPS - Serve operational managers and staff - Perform and record daily routine transactions necessary to conduct business • Examples: sales order entry, payroll, shipping - Allow managers to monitor status of operations and relations with external environment - Serve predefined, structured goals and decision making

What is a business process? Examples?

Workflows of material, information, knowledge Sets of activities, steps May be tied to functional area or be cross-functional Examples: Assembling the product, identifying customers, creating financial statements, and hiring employees

Customer relationship management (CRM) systems

help manage their relationship with their customers. • Provide information to coordinate all of the business processes that deal with customers Sales Marketing Customer service • Helps firms identify, attract, and retain most profitable customers • Integrate firm's customer-related processes and consolidate customer information from multiple communication channels

supply chain management systems (SCM):

help mange relationship with their suppliers. Are also one type of interorganizational system. Because they automate the flow of information across organizational boundaries. • Manage firm's relationships with suppliers • Share information about • Orders, production, inventory levels, delivery of products and services • Goal: Right amount of products to destination with least amount of time and lowest cost

CKO chief knowledge officer

is responsible for the firm's knowledge management program.

EIS: Enterprise Systems: (Enterprise resource planning systems, or 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: • Coordination of daily activities • Efficient response to customer orders (production, inventory) • Provide valuable information for improving management decision making

7. What are the four major enterprise applications? What are the characteristics of each? What does each do?

• Four major applications: • Enterprise systems • Supply chain management systems • Customer relationship management systems • Knowledge management systems --- • Also called Enterprise Resource Planning (ERP) systems • Collects data from different firm functions and stores data in single central data repository • Resolves problem of fragmented, redundant data sets and systems • Enable: • Coordination of daily activities • Efficient response to customer orders (production, inventory) • Provide valuable information for improving management decision making ---- • Manage firm's relationships with suppliers • Share information about • Orders, production, inventory levels, delivery of products and services • Goal: Right amount of products to destination with least amount of time and lowest cost ---- • Provide information to coordinate all of the business processes that deal with customers Sales Marketing Customer service • Helps firms identify, attract, and retain most profitable customers • Integrate firm's customer-related processes and consolidate customer information from multiple communication channels -- • Support processes for capturing and applying knowledge and expertise • How to create, produce, deliver products and services • Collect internal knowledge and experience within firm and make it available to employees Link to external sources of knowledge

8. Who does the IS department of an organization include?

• Information systems department: • Formal organizational unit responsible for information technology services • Includes programmers, systems analysts, project leaders, information systems managers • Often headed by chief information officer (CIO), also includes chief security officer (CSO), chief knowledge officer (CKO), and chief privacy officer (CPO) • End-users: • Representatives of other departments, for whom applications are developed

How does IT enhance business processes?

• Information technology enhances business processes in two main ways: • Increasing efficiency of existing processes • Automating steps that were manual • Enabling entirely new processes that are capable of transforming the businesses • Change flow of information • Replace sequential steps with parallel steps • Eliminate delays in decision making

Intranet:

• Internal networks built with same tools and standards as Internet • Used for internal distribution of information to employees • Typically utilize private portal providing single point of access to several systems • May connect to company's transaction systems

Extranet:

• Intranets extended to authorized external users • Expedite flow of information between firm and its suppliers and customers • Can be used to allow different firms to collaborate on product design, marketing, and production

E-commerce (electronic commerce):

• Subset of E-business • Buying and selling of goods and services through Internet

knowledge management systems

• Support processes for capturing and applying knowledge and expertise • How to create, produce, deliver products and services • Collect internal knowledge and experience within firm and make it available to employees • Link to external sources of knowledge

E-business (Electronic business):

• Use of digital technology and Internet to execute major business processes in the enterprise

E-government

• Using Internet technology to deliver information and services to citizens, employees, and businesses refers to the application of the internet and networking technologies to digitally enabled government and public sector agencies relationship with citizens, business, and other arms of governments.

Business process

• Workflows of material, information, knowledge • Sets of activities, steps • May be tied to functional area or be cross-functional • Examples: Assembling the product, identifying customers, creating financial statements, and hiring employees