L Ch2: The Strategic Role Of Information Systems

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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

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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)

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TRANSACTION PROCESSING SYSTEMS (TPS)

• OPERATIONAL LEVEL
• INPUTS TRANSACTIONS, EVENTS
• PROCESSING UPDATING
• OUTPUTS DETAILED REPORTS
• USERS OPERATIONS PERSONNEL
• EXAMPLE ACCOUNTS PAYABLE

TPS
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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
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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
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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
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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
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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
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KNOWLEDGE WORK SYSTEMS (KWS)

• KNOWLEDGE LEVEL
• INPUTS DESIGN SPECS
• PROCESSING MODELLING
• OUTPUTS DESIGNS, GRAPHICS
• USERS TECHNICAL STAFF
• EXAMPLE ENGINEERING WORK
  STATION

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OFFICE AUTOMATION SYSTEMS (OAS)

• 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

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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)

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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

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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

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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

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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 ltCitibank ATM)
• Focused diff (niche) (Provide specialized
  prod/service to narrow target MKT better. ltdata
  mining to locate specific target needsgt
• Tight linkage to customer-supplier (increase
  switching cost)
• Low cost producer
• Value Chain Model fg 2.13 ltalso, latergt