Information systems for the firm

1
Information systemsfor the firm

• Main types
• (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 leveltwo types of information system

• Systems for basic office 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 leveltwo types of information system

• Management information systems
• Sales management
• Stock control
• Yearly budgeting
• Capital investment control
• Careers 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

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Strategy level I.S. for top executives

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

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

• Information Systems entered the firms in the 60s
• They were first used in accounting and production
  control
• In the 80s and 90s, they entered all the other
  functions of the firm (from bottom up)
• I.S. can tremendously increase the firms
  productivity
• Information is now considered a product with
  strategic value, whereas a generation ago it was
  only red tape

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An example

• When it was realised 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 sale action is to treat well
  your existing clients
• You have to know them very well, and customize
  your relationship with them.