Transcript Information Systems in Business and Management

Information Systems in
Business and Management
Information Systems in
Business and Management
• Origins in a number of Disciplines
–
–
–
–
–
Management
Operations Research
Computer Science
Accounting
Organisation Development
• Taxonomy of Information Systems
–
–
–
–
Transaction Processing
Management Reporting Systems
Decision Support Systems
Executive Information Systems
Management Information Systems
Information:
The most valuable resource
Five Main Resources
• Personnel
• Material
• Machines
}
– (including facilities and energy)
• Money
• Information (and data)
}
Physical
Conceptua
l
How Resources are Managed
•
•
•
•
Acquire
Assemble, or prepare
Maximize use
Replace
Factors Stimulating Interest in
Information Management
• Increasing complexity of business
–
–
–
–
–
International economy
Worldwide competition
Increasing complexity of technology
Shrinking time frames
Social constraints
• Improved computer capabilities
Who are the Users?
• Managers
• Nonmanagers
• Persons & organizations in the firm’s
environment
Where Managers are Found
• Various management levels
• Various functional areas of the firm
The Nature of Management
•
Functional Activities
–
–
–
–
Accounting
Marketing
Production
Personnel
Name
Name
Title
Title
Name
Name
Name
Name
Name
Title
Title
Title
Title
Title
Name
Name
Title
Title
Name
Name
Title
Title
Name
Title
Name
Name
Name
Name
Title
Title
Title
Title
Name
Name
Name
Name
Title
Title
Title
Title
Levels of Management
(Anthony 1965)
Strategic Planning
Management control
Operational Control
Levels of Managers
• Strategic planning
• Management control
• Operational control
Strategic Planning
•
•
•
•
•
•
Relates to the Organisation as a Whole
Occurs on an Irregular Basis
Relies on External Information
An Exercise in Applied Economics
Small Numbers Involved
Provides the Framework for Mgt Control
Management Control
• Elements
• Process
• Managers
• Goals
• Efficiency and Effectiveness
• Characteristics
–
–
–
–
–
–
Focus on Responsibility Centres
General Types of Information
Comprehensive
Expressed in Financial Terms
Defined Patterns and Timetables
Coordinated Integrated System
Operational Control
•
•
•
•
•
Restricted to Narrowly Defined Activities
Occurs in the Content of Mgt Control
Based on a Financial Structure
Relates to Individual Transactions
Requires a Formal Model of Operation
The Influence of Management Level on
Information Source
Strategic planning level
Environmental
Management control level
Operational control level
Internal
The Influence of Management Level on
Information Form
Strategic planning level
Summary
Management control level
Operational control level
Detail
Managers Can Be Found on All Levels
and in All Functional
Areas of the Firm
Strategic planning level
Management Control Level
Operational Control
Level
Finance
Function
Human
Resources
Function
Information
Services
Function
Manufacturing
Function
Marketing
Function
Managerial Roles
• Fayol
• Mintzberg
• Stewart
Planning , Staffing, Controlling etc
What Managers do -Fayol’s Functions
Strategic
Management
Operational
Planning Level
Control Level
Control Level
Plan
Direct
Organize
Control
Plan
Control
Staff
Organize
Direct
Staff
Control
Staff
Organize
Direct
Plan
What Managers do -Mintzberg’s Roles
• Interpersonal roles
– Figurehead
– Leader
– Liaison
• Informational roles
– Monitor
– Disseminator
– Spokesperson

Decisional roles
–
–
–
–
Entrepreneur
Disturbance handler
Resource allocator
Negotiator
Problem
Solving
Business Meals
Tours
Voice Mail
Written Media
Telephone
Internal
Sources
Unscheduled Meetings
Scheduled Meetings
Electronic
mail
Periodical
s
Noncomputer
reports
Letters & Memos
Computer Reports
Problem Solving Information Comes in
Many Forms
External Sources
Oral Media
Management Skills
• Communications
• Problem solving
}
How can an
information
specialist help?
Transaction Processing
Systems
• A focus on data storage processing and flows
at the operational ;
• Efficient Transaction Processing
• Automation of High Volume Routine Tasks
• Minimum Participation by Users
• Summary reports to Management
• Ryanair, EBay, Google
Management Reporting
Systems
• An Information Focus aimed at Middle
Managers
• Structured Information Flow
• Inquiry and Report Generation off a Database
• Planning and Control
• Summary Details
• Rhythmic in Nature
Name
Title
Name
Name
Name
Name
Title
Title
Title
Title
Name
Name
Name
Name
Title
Title
Title
Title
Name
Name
Name
Name
Title
Title
Title
Title
Name
Name
Name
Name
Title
Title
Title
Title
Decision Support Systems
• Support for Managerial Decision Making
• Evolved from Experiences with M.I.S.
• Aimed at the less well
structured/Underspecified problems
• Combine modelling and Analysis
Capability
• Flexibility and Adaptability
Millions
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
1992
1991
$0
ABC Corp.
Smith
Corp.
XYZ Inc. 1990
Executive Information Systems
• Structured Automated Tracking Systems for
Executives
• Designed to Support Top Executives
• Characteristics
– Ease of use - Touch Screens etc
– Data Cube
– External Information
Millions
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
1992
1991
$0
ABC Corp.
• Examples in Ireland
– Bank of Ireland, AIB
– Telecom Eireann
– ESB
Name
Title
Name Name Name Name
Title
Title
Title
Title
Name Name Name Name
Title
Title
Title
Title
Name Name Name Name
Title
Title
Title
Title
Name Name Name Name
Title
Title
Title
Title
Smith
Corp.
XYZ Inc. 1990
A Systems View
• Business operations are embedded within a
larger environmental setting
Evolution of the CBIS
• Data (EDP)
• MIS 1964
– IBM promoted the concept as a means of selling disk files and
terminals
• DSS 1971
– Our distinction:
» MIS: Organizational/group - general
» DSS: Individual - specific
• 1980’s/1990/s EIS
• 1990’s/2000’s ERP systems (back to 1964?)
The CBIS Model
Computer-based
Information System
(CBIS)
Accounting
Information System
Problem
Decisions
Information
Management
Information System
Decision Support
Systems
Problem
Solution
The Virtual
Office
Knowledge-based
Systems
Information Services
Information specialists have
full-time responsibility for
developing and maintaining
computer-based systems
Traditional Communications Chain
Database
Administrator
User
Systems
Analyst
Network
Specialist
Programmer
Operator
Computer
End-User Computing
• End-user computing
– Development of all or part of applications
• Stimulants to EUC
–
–
–
–
Increased computer literacy
IS backlog
Low-cost hardware (the PC)
Prewritten software (electronic spreadsheets)
IS and EUC
The End-User Computing Communication Chain
Information
Specialists
Support
Communication
User
Computer
Justifying the CBIS
• Justify in the same manner as any other large
investment
• Economic
– Cost reduction
– Reduced inventory investment
– Increased productivity (CAD/CAM)
• Noneconomic
– Perceived value
Achieving the CBIS
Roles Played by the Manager
and by the Information Specialist
Phase
Planning
Manage
r
Define problem
Information Specialist
Support
Analysis
Control
Design
Control
Implementatio
n
Control
Implement system
Use
Control
Make available
System Study
Design system
MANAGEMENT INFORMATION SYSTEMS
Using Information Technology for
Competitive Advantage
The Firm’s
Firm’sEnvironment
Environment
Society
Financial
Community
Suppliers
Suppliers
Government
The
Firm
The firm
Labor
Labor
unions
unions
Global
Community
Customers
Customers
Competitors
Stockholders
Stockholders
orowners
owners
or
A Value Chain
Firm Infrastructure
Support
Activities
Human resource management
Technology development
Procurement
Inbound Operations Outbound Marketing
and
logistics
logistics
sales
Primary Activities
Service
A Value System
Supplier
value
chains
Firm
value
chain
Channel
value
chains
Buyer
value
chains
The Information Resources
Software
Hardware
Information
Specialists
Information
Users
Facilities
Database
The Future
The bright side:
Information is getting more important
The dark side:
Trend to end-user computing is making information
management more difficult
The Functional Areas Should Cooperate
in Developing Their Strategic Plans
Strategic
planning for
information resources
Strategic
planning for
marketing
resources
Strategic
planning for
financial resources
Strategic
planning for
manufacturing
resources
Strategic
planning for
human
resources
Strategic Planning for
Information Resources
Influence on
Information
Resources
Business
strategy
Influence on
Business
Strategy
Information
resources
and
IS
strategy
IRM - Required Elements
• A recognition that competitive advantage can
be achieved by means of superior information
resources
• A recognition that information services is a
major functional area
• A recognition that the CIO is a top-level
executive
IRM-Required Ingredients (cont.)
• A consideration of the firm’s information
resources when engaging in strategic
planning
• A formal strategic plan for information
resources
• A strategy for stimulating and managing enduser computing
The IRM Model
The environment of the firm
ENVIRONMENTAL INFLUENCES
The firm’s executives
Other executives
CIO
Firm’s strategic plan
Internal influences
FUNCTIONAL AREAS
Information
services
Finance
Human
resources
Manufacturing
Marketing
STRATEGIC PLAN FOR INFORMATION RESOURCES
Central computing
resources
Disbursed computing
resources
DATA AND INFORMATION
User’s engaged in
end-user computing
Other users
A Sales Report of Fast Moving
Products
Item Number
400293
319421
786402
190796
001007
739792
722210
410615
963214
000123
Item Description
Year-to-Date
Sales Volume
BRAKE PIPE
DOOR HANDLE GASKET
CLUTCH DRIVEN PLATE
CARPET SNAP
SPARK PLUG
HOSE CLIP
RUBBER PLUG
UPPER DOOR HINGE
REAR TUBE SHOCK
NEEDLE VALVE
Totals
% of Total
Year-to-Date Sales
$1,702.93
1,624.00
1,403.97
1,102.00
1,010.79
949.20
946.73
938.40
922.19
919.26
.068
.065
.056
.044
.040
.038
.038
.038
.037
.037
$11,519.47
.461
Information is Gathered from All of
the Physical System Elements
Information
Input
Resources
Management
Transformation
Process
Information
Output
Resources
Supplier Analysis Report
Item Number: 410615
Item Description: Upper Door Hinge
SUPPLIER
NUMBER
3062
4189
0140
2111
NAME
CARTER
& SONS
PACIFIC
MACHINING
A.B.
MERRIL
BAY AREA
LAST
DATE
P.O. #
7/12
1048-10
360
$8.75
12
.00
4/13
962-10
350
9.10
08
.02
1/04
550-10
350
8.12
03
.00
8/19
1196-10
360
11.60
19
.04
QTY.
UNIT
DAYS TO
PRICE RECEIPT
PCT.
REJECTS
A Job Status Report Provides Information
about the Transformation Process
Job Number: 84-182
Customer: Wankel Automotive
CURRENT STATUS
Step 4-weld supports to frame
Department 410-Welding
Date and Time Begun-10/8; 10:15A
Projected Job Completion-10/14; 9:30A
NEXT PROCESS
•Step 5-paint frame
•Department 632-Paint
Dimensions of Information
• Relevancy
• Accuracy
• Timeliness
• Completeness
INFORMATION SYSTEM
BUSINESS
CHALLENGE
MANAGEMENT
INFORMATION
INFORMATION
BUSINESS
SYSTEM
SOLUTIONS
TECHNOLOGY
MANAGING CHANGE
ORGANIZATION
3.2
FITTING TECHNOLOGY TO
ORGANIZATION
LIMITS OF TECHNOLOGY