Transcript THE STRATEGIC ROLE OF INFORMATION SYSTEMS

CHAPTER 2. THE
STRATEGIC ROLE OF
INFORMATION SYSTEMS
2.1
LEARNING OBJECTIVES
• ANALYZE ROLES OF 6 TYPES OF
INFORMATION SYSTEMS
• DESCRIBE TYPES OF INFORMATION
SYSTEMS
• EXAMINE COMPETITIVE FORCES,
VALUE CHAIN MODELS
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2.2
LEARNING OBJECTIVES
• EXPLAIN DIFFICULTIES OF
BUILDING, SUSTAINING STRATEGIC
INFORMATION SYSTEMS
• DESCRIBE HOW INFORMATION
SYSTEMS SUPPORT LEVELS OF
BUSINESS STRATEGY
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MANAGEMENT CHALLENGES
• INTEGRATION:
– ENTERPRISE RESOURCE
MANAGEMENT
– CONNECTING ORGANIZATIONAL
LEVELS DIFFICULT, COSTLY
• SUSTAIN COMPETITIVE ADVANTAGE:
– INFO SYSTEMS MUST BE FLEXIBLE TO
ENSURE LONG-TERM PROFITS
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2.4
TYPES OF INFORMATION SYSTEMS
KIND OF SYSTEM
GROUPS SERVED
STRATEGIC LEVEL
SENIOR
MANAGERS
MANAGEMENT LEVEL
MIDDLE
MANAGERS
KNOWLEDGE LEVEL
KNOWLEDGE &
DATA WORKERS
OPERATIONAL
LEVEL
2.5
SALES &
MARKETING
OPERATIONAL
MANAGERS
MANUFACTURING
FINANCE
ACCOUNTING
HUMAN
RESOURCES
MAJOR TYPES OF SYSTEMS
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2.6
EXECUTIVE SUPPORT SYSTEMS (ESS)
DECISION SUPPORT SYSTEMS (DSS)
MANAGEMENT INFORMATION SYSTEMS (MIS)
KNOWLEDGE WORK SYSTEMS (KWS)
OFFICE AUTOMATION SYSTEMS (OAS)
TRANSACTION PROCESSING SYSTEMS (TPS)
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TYPICAL TPS APPLICATIONS
Sales & Marketing Systems
2.7
MAJOR FUNCTIONS OF SYSTEMS:
• Sales Management; Market
Research; Promotion; Pricing; New
Products
MAJOR APPLICATION SYSTEMS:
• Sales Order Info System; Market
Research System; Pricing System
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TPS
TYPICAL TPS APPLICATIONS
Manufacturing & Production Systems
2.8
MAJOR FUNCTIONS OF SYSTEMS:
• Scheduling; Purchasing; Shipping /
Receiving; Engineering; Operations
MAJOR APPLICATION SYSTEMS:
• Materials Resource Planning
Systems; Purchase Order Control
Systems; Engineering Systems;
Quality Control Systems
TPS
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TYPICAL TPS APPLICATIONS
Finance & Accounting Systems
2.9
MAJOR FUNCTIONS OF SYSTEMS:
• Budgeting; General Ledger; Billing:
Cost Accounting
MAJOR APPLICATION SYSTEMS:
• General Ledger; Accounts
Receivable / Payable; Budgeting;
Funds Management Systems
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TPS
TYPICAL TPS APPLICATIONS
Human Resources Systems
MAJOR FUNCTIONS OF SYSTEMS:
• Personnel Records; Benefits;
Compensation; Labor Relations;
Training
MAJOR APPLICATION SYSTEMS:
• Payroll; Employee Records; Benefit
Systems; Career Path Systems;
Personnel Training Systems
TPS
2.10
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TYPICAL TPS APPLICATIONS
Other Types (e.g., University)
2.11
MAJOR FUNCTIONS OF SYSTEMS:
• Admissions; Grade Records; Course
Records; Alumni
MAJOR APPLICATION SYSTEMS:
• Registration System; Student
Transcript System; Curriculum Class
Control System; Alumni Benefactor
System
TPS
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KNOWLEDGE WORK SYSTEMS (KWS)
KNOWLEDGE LEVEL
• INPUTS: DESIGN SPECS
• PROCESSING: MODELLING
• OUTPUTS: DESIGNS, GRAPHICS
• USERS: TECHNICAL STAFF
2.12
EXAMPLE: ENGINEERING WORK
STATION
OFFICE AUTOMATION SYSTEMS (OAS)
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TOWARD A “PAPERLESS” OFFICE
REDESIGN OF WORK FLOW
INTEGRATED SOFTWARE
ERGONOMIC DESIGN
BRIGHT, CHEERFUL
WORK SPACE
EXAMPLE: PRESENTATION GRAPHICS
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MANAGEMENT INFORMATION
SYSTEMS (MIS)
MANAGEMENT LEVEL
• INPUTS: HIGH VOLUME DATA
• PROCESSING: SIMPLE MODELS
• OUTPUTS: SUMMARY REPORTS
• USERS: MIDDLE MANAGERS
EXAMPLE: ANNUAL BUDGETING
2.14
MANAGEMENT INFORMATION
SYSTEMS (MIS)
• STRUCTURED & SEMISTRUCTURED DECISIONS
• REPORT CONTROL ORIENTED
• PAST & PRESENT DATA
• INTERNAL ORIENTATION
• LENGTHY DESIGN PROCESS
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2.15
TPS DATA FOR MIS APPLICATIONS
TPS
Order Processing
MIS
SALES
DATA
System
ORDER FILE
Materials Resource
Planning System
PRODUCTION MASTER FILE
General Ledger
System
ACCOUNTING FILES
2.16
UNIT
PRODUCT
COST
MIS
REPORTS
PRODUCT
CHANGE
DATA
EXPENSE
DATA
MIS FILES
MANAGERS
DECISION SUPPORT SYSTEMS (DSS)
MANAGEMENT LEVEL
• INPUTS: LOW VOLUME DATA
• PROCESSING: INTERACTIVE
• OUTPUTS: DECISION ANALYSIS
• USERS: PROFESSIONALS, STAFF
EXAMPLE: CONTRACT COST ANALYSIS
2.17
DECISION SUPPORT SYSTEMS (DSS)
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2.18
FLEXIBLE, ADAPTABLE, QUICK
USER CONTROLS INPUTS/OUTPUTS
NO PROFESSIONAL PROGRAMMING
SUPPORTS DECISION PROCESS
SOPHISTICATED MODELING TOOLS
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EXECUTIVE SUPPORT SYSTEMS
(ESS)
STRATEGIC LEVEL
• INPUTS: AGGREGATE DATA
• PROCESSING: INTERACTIVE
• OUTPUTS: PROJECTIONS
• USERS: SENIOR MANAGERS
EXAMPLE: 5 YEAR OPERATING PLAN
2.19
EXECUTIVE SUPPORT SYSTEMS
(ESS)
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2.20
TOP LEVEL MANAGEMENT
DESIGNED TO THE INDIVIDUAL
TIES CEO TO ALL LEVELS
VERY EXPENSIVE TO KEEP UP
EXTENSIVE SUPPORT STAFF
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INTERRELATIONSHIPS AMONG SYSTEMS
ESS
MIS
KWS
OAS
2.21
DSS
TPS
SYSTEMS FROM A
FUNCTIONAL PERSPECTIVE
• SALES & MARKETING SYSTEMS
• MANUFACTURING & PRODUCTION
SYSTEMS
• FINANCE & ACCOUNTING SYSTEMS
• HUMAN RESOURCES SYSTEMS
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2.22
STRATEGIC ROLE OF INFORMATION
SYSTEMS
STRATEGIC INFO SYSTEM:
CAN CHANGE GOALS, OPERATIONS
PRODUCTS, SERVICES
ENVIRONMENT
TO GAIN COMPETITIVE ADVANTAGE
2.23
COMPETITIVE FORCES MODEL
NEW
MARKET
ENTRANTS
SUBSTITUTE
PRODUCTS
& SERVICES
THE FIRM
SUPPLIERS
2.24
TRADITIONAL
COMPETITION
CUSTOMERS
COUNTERING
COMPETITIVE FORCES
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2.25
PRODUCT DIFFERENTIATION
FOCUSED DIFFERENTIATION
DATAMINING
LINKING CUSTOMERS & SUPPLIERS
BECOMING LOW COST PRODUCER
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VALUE CHAIN MODEL
HIGHLIGHTS PRIMARY & SUPPORT
ACTIVITIES THAT ADD VALUE TO
PRODUCTS, SERVICES
• PRIMARY: DIRECTLY RELATED TO
PRODUCTION, DISTRIBUTION
• SUPPORT: INFRASTRUCTURE,
HUMAN RESOURCES,
TECHNOLOGY, PROCUREMENT
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2.26
IMPLICATIONS FOR MANAGERS &
ORGANIZATIONS
• STRATEGIC ALLIANCES,
INFORMATION PARTNERSHIPS
• INDUSTRY LEVEL STRATEGIC
SYSTEMS
• MANAGING STRATEGIC
TRANSITIONS
• IMPACT OF THE INTERNET
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2.27
INFORMATION SYSTEMS &
QUALITY
2.28
• QUALITY: Conformance to
specifications, customer satisfaction
• SIMPLIFY PRODUCT, PROCESS
• BENCHMARKING
• CUSTOMER DEMAND AS GUIDE
• REDUCE CYCLE TIME
• IMPROVE QUALITY & PRECISION
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Connect to the INTERNET
Laudon/Laudon Web site:
http://www.prenhall.com/laudon
Additional Internet Resources related to this chapter:
http://tools.org/EI/ICEIMT
http://www.brint.com
http://www.datawarehousing.com
http://www.erpassist.com
http://www.sap.com
http://www.mysap.com
2.29
© 2001 Laudon & Laudon, Essentials of Management Information Systems 4/e
CHAPTER 2. THE
STRATEGIC ROLE OF
INFORMATION SYSTEMS
2.30