Chapter 10 - University of San Diego Home Pages

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Nov 5, 2013 (3 years and 7 months ago)

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CHAPTER 10

Information Systems
within

the
Organization

Thomas Friedman


Speaking to Yale University

Globalization


Friedman’s Ten Flatteners


Fall for the Berlin Wall


Netscape goes public 1995


Development of work
-
flow software


Uploading


Outsourcing


Offshoring


Supply chaining


Insourcing


The Steroids


CHAPTER OUTLINE

10.1

Transaction Processing Systems

10.2

Functional Area Information Systems

10.3

Enterprise Resource Planning Systems

10.4

Reports

10.1

Transaction Processing Systems

(TPS)

Transaction processing system (TPS
)

monitors
, collects, stores and processes
data
generated
from all business transactions
.



Business Transaction


Product manufactured


Service sold


P
erson hired


Payroll check generated

Barcode scanner is an example of
source data automation

How Transaction Processing Systems
Manage Data

10.1

Transaction Processing Systems

(TPS)

Key features of TPS


Dependability


Reliability


Processing capacity

Complexities of Transactional data:


Multiple persons access the database at the same time


Transactions involves more than one computer


Transaction must be reversible


Preserve audit trail

10.1

Transaction Processing Systems

(TPS)


Batch Processing
-

when
the
firm collects data from
transactions
then placing them
in
batches
, then prepares and
processes the batches
periodically

(say,
every
night).



Online Transaction Processing
(OLTP)
-
is
when business
transactions are
processed
online
as soon as they occur.



10.2

Functional Area Information Systems

Functional Area Information Systems
are
designed to support a functional area by
increasing its internal effectiveness and
efficiency in the following areas:

Accounting

Finance

Marketing

Operations (POM)

Human Resources Management

Productions/Operations
Management


In
-
house Logistics and Materials
Management

Planning Production


Planning process that integrates production,
purchasing and inventory management


Product Life Cycle Management


share product
-
related
data that support both
product design and
development and
supply chain
operations.


FMEA
-

Failure
modes and effects analysis

Marketing


Customer Relationship Management


Customer Support


Sales Force Automation


Email and Automated Response


Loyalty programs


UP/Cross/Bundling

Accounting and Finance


Financial Planning


Budgeting


Auditing


Investment Management


Control and Auditing

Human Resource Management


Recruitment


Development


Payroll


Benefits

10.3

Enterprise Resource Planning

Systems (ERP)



ERP systems

integrate the functional areas of the organization
by enabling seamless information flows across them.

© Toh Kheng Ho/Age Fotostock America, Inc.



Benefits of ERP Systems


They can make organizations more
flexible, agile, and adaptive.



They can improve managers’ ability to
make better, more timely decisions.



They can improve customer service,
production, and distribution.

Limitations of ERP Systems


May require organizations to change
existing business processes to fit the
predefined business processes of the ERP
software.



Can be complex, expensive, and time
consuming to implement.

10.4

Functional Area Information
Systems Reports


Routine
-

scheduled interval reporting


Ad
-
Hoc

Drill Down Report

Drill Down
-

greater level of
detail report

Ex. Sales
region drilled down to specific employee

10.4

Functional Area Information
Systems Reports


Exceptional Reports
-

include information that
falls outside certain threshold standards



10.4

Functional Area Information
Systems Reports


Key
-
Indicator



summarize the performance
of a critical activities


Marketing

examples
are:


New customers acquisition.


Demographic analysis of individuals (potential customers) applying to
become customers, and the levels of approval, rejections, and pending
numbers


Status of existing customers


Turnover
(i.e., revenue) generated by segments of the customer
population


Comparative
reports


compare performance
of a business unit during different time periods