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L Ch2: The Strategic Role Of Information Systems

L Ch2: The Strategic Role Of Information Systems. LEARNING OBJECTIVES LEARN ROLES OF 6 TYPES OF INFORMATION SYSTEMS DISCUSS TYPES OF INFORMATION SYSTEMS IDENTIFY OPPORTUNITIES FOR STRATEGIC INFORMATION SYSTEMS EXPLAIN DIFFICULTIES OF BUILDING, SUSTAINING STRATEGIC INFORMATION SYSTEMS

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L Ch2: The Strategic Role Of Information Systems

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  1. L Ch2: The Strategic Role Of Information Systems LEARNING OBJECTIVES • LEARN ROLES OF 6 TYPES OF INFORMATION SYSTEMS • DISCUSS TYPES OF INFORMATION SYSTEMS • IDENTIFY OPPORTUNITIES FOR STRATEGIC INFORMATION SYSTEMS • EXPLAIN DIFFICULTIES OF BUILDING, SUSTAINING STRATEGIC INFORMATION SYSTEMS • DESCRIBE USES OF INFORMATION SYSTEMS IN OPERATIONS, PRODUCTS, SERVICES Sheu

  2. MAJOR TYPES OF SYSTEMS Varous perspectives on kinds/types of IS (fg 2.1) (fg 2.2) & their characteristics (fg 2.3) • EXECUTIVE SUPPORT SYSTEMS (ESS) • MANAGEMENT INFORMATION SYSTEMS (MIS) • DECISION SUPPORT SYSTEMS (DSS) • KNOWLEDGE WORK STATIONS (KWS) • OFFICE AUTOMATION SYSTEMS (OAS) • TRANSACTION PROCESSING SYSTEMS(TPS) * Sheu

  3. TRANSACTION PROCESSING SYSTEMS (TPS) • OPERATIONAL LEVEL • INPUTS: TRANSACTIONS, EVENTS • PROCESSING: UPDATING • OUTPUTS: DETAILED REPORTS • USERS: OPERATIONS PERSONNEL EXAMPLE: ACCOUNTS PAYABLE TPS Sheu

  4. TYPICAL TPS APPLICATIONSSales & Marketing Systems MAJOR FUNCTIONS OF SYSTEMS: • Sales Management; Market Research; Promotion; Pricing; New Products MAJOR APPLICATION SYSTEMS: • Sales Order Info System; Market Research System; Pricing System TPS Sheu

  5. TYPICAL TPS APPLICATIONSManufacturing & Production Systems 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 Sheu

  6. TYPICAL TPS APPLICATIONSFinance & Accounting Systems MAJOR FUNCTIONS OF SYSTEMS: • Budgeting; General Ledger; Billing: Cost Accounting MAJOR APPLICATION SYSTEMS: • General Ledger; Accounts Receivable / Payable; Budgeting; Funds Management Systems * TPS Sheu

  7. TYPICAL TPS APPLICATIONSHuman 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 Sheu

  8. TYPICAL TPS APPLICATIONSOther Types (e.g., University) 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 Sheu

  9. KNOWLEDGE WORK SYSTEMS (KWS) • KNOWLEDGE LEVEL • INPUTS: DESIGN SPECS • PROCESSING: MODELLING • OUTPUTS: DESIGNS, GRAPHICS • USERS: TECHNICAL STAFF EXAMPLE: ENGINEERING WORK STATION Sheu

  10. OFFICE AUTOMATION SYSTEMS (OAS) • TOWARD A “PAPERLESS” OFFICE • REDESIGN OF WORK FLOW • INTEGRATED SOFTWARE • ERGONOMIC DESIGN • BRIGHT, CHEERFUL WORK SPACE EXAMPLE: PRESENTATION GRAPHICS Sheu

  11. MANAGEMENT INFORMATION SYSTEMS (MIS) • MANAGEMENT LEVEL • INPUTS: HIGH VOLUME DATA • PROCESSING: SIMPLE MODELS • OUTPUTS: SUMMARY REPORTS • USERS: MIDDLE MANAGERS EXAMPLE: ANNUAL BUDGETING Sheu

  12. MANAGEMENT INFORMATION SYSTEMS (MIS) • STRUCTURED & SEMI-STRUCTURED DECISIONS • REPORT CONTROL ORIENTED • PAST & PRESENT DATA • INTERNAL ORIENTATION • LENGTHY DESIGN PROCESS TPS vs MIS • TPS DATA FOR MIS APPLICATIONS (fg 2.6) Sheu

  13. DECISION SUPPORT SYSTEMS (DSS) • MANAGEMENT LEVEL • INPUTS: LOW VOLUME DATA • PROCESSING: INTERACTIVE • OUTPUTS: DECISION ANALYSIS • USERS: PROFESSIONALS, STAFF • FLEXIBLE, ADAPTABLE, QUICK • USER CONTROLS INPUTS/OUTPUTS • NO PROFESSIONAL PROGRAMMING • SUPPORTS DECISION PROCESS • SOPHISTICATED MODELING TOOLS EXAMPLE: CONTRACT COST ANALYSIS Sheu

  14. EXECUTIVE SUPPORT SYSTEMS (ESS) • STRATEGIC LEVEL • INPUTS: AGGREGATE DATA • PROCESSING: INTERACTIVE • OUTPUTS: PROJECTIONS • USERS: SENIOR MANAGERS EXAMPLE: 5 YEAR OPERATING PLAN Sheu

  15. EXECUTIVE SUPPORT SYSTEMS (ESS) • TOP LEVEL MANAGEMENT • DESIGNED TO THE INDIVIDUAL • TIES CEO TO ALL LEVELS • VERY EXPENSIVE TO KEEP UP • EXTENSIVE SUPPORT STAFF INTERRELATIONSHIPS AMONG SYSTEMS • fg 2.10 * Sheu

  16. STRATEGIC ROLE OF INFORMATION SYSTEMS • STRATEGIC INFO SYSTEM: • CAN FUNDAMENTALLY CHANGE GOALS, OPERATIONS, PRODUCTS, SERVICES, ENVIRONMENT. • TO GAIN COMPETITIVE ADVANTAGE • Strategic Info Sys vs Strategic-level Info Sys. • Strategic-level IS: focus on long-term str problem • Str Info Sys: at any level, change goals/operation … • Two models for identifying SIS opportunities: • Competitive Force Model: fg 2.11 • Prod differentiation <Citibank ATM) • Focused diff (niche) (Provide specialized prod/service to narrow target MKT better. <data mining to locate specific target & needs> • Tight linkage to customer-supplier (increase switching cost) • Low cost producer • Value Chain Model: fg 2.13 <also, later> Sheu

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