Information systems for the firm

1
Information systemsfor the firm

• Main classification
• (Source Laudon Laudon, Prentice- Hall, 2000)

2
Four levels of applications of I.S. in the firm

• Strategy level I.S. for top executives
• Management level I.S. for middle management
• Knowledge level I.S. for office employees
• Operations level I.S. for production, sales,
  marketing, accounting, and H.R. functions

3
Operations level I.S. to treat day to day
transactions
4
Knowledge level two types of information
system

• Systems for office basic work
• Word processing
• Document and image creation
• Electronic calendar (Outlook)
• Systems for intellectual work
• Engineering work stations and softwares
• Management work stations and softwares

5
Management level two types of information
system

• Management information systems
• Sales management
• Stock control
• Annual budgeting
• Capital investment control
• Carriers evolution management
• Systems to assist middle mgt. decision process
• Sales analysis by region
• Production planning
• Costs analysis and costs control
• Price analysis and profitability analysis

6
Strategy level I.S. for top executives

• Five year sales forecast
• Five year operation planning
• Five year budget forecast
• Profitability forecast
• Human resources planning

7
Features and users of I.S.
8
Evolution of Information Systems

• Information Systems entered the firms in the
  sixties
• They were first concerned with accounting, and
  with production control
• Later, in the eighties and nineties, they entered
  all the other functions of the firm (from bottom
  up)
• I.S. can increase tremendously the firm
  productivity
• Information is now considered a product of
  strategic value, whereas a generation ago it was
  only red tape

9
An example

• When it was clearly realized that gaining a new
  client was about 5 times more expensive than
  keeping an existing one, and that I.S. provided
  new means to analyze and retain clients, C.R.M.
  (Client Relationship Management) was born.
• The most efficient selling action is to treat as
  well as possible your existing clients
• In order to do that you have to know them very
  well, and customize your relationship with them.