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Management Informadtion System: Alemayehu Shiferaw (PH.D)

The document discusses management information systems and business intelligence systems. It describes how enterprises are typically organized into functional units like human resources, accounting, engineering, and manufacturing. It then provides examples of information systems used within each functional unit for tasks like training, compensation analysis, production planning, order processing, and customer relationship management. Finally, it defines business intelligence as the process of acquiring data from various sources and using it for decision making through software for querying, analyzing, warehousing, and visually reporting data.

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0% found this document useful (0 votes)
40 views30 pages

Management Informadtion System: Alemayehu Shiferaw (PH.D)

The document discusses management information systems and business intelligence systems. It describes how enterprises are typically organized into functional units like human resources, accounting, engineering, and manufacturing. It then provides examples of information systems used within each functional unit for tasks like training, compensation analysis, production planning, order processing, and customer relationship management. Finally, it defines business intelligence as the process of acquiring data from various sources and using it for decision making through software for querying, analyzing, warehousing, and visually reporting data.

Uploaded by

hewia1921
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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MANAGEMENT

INFORMADTION
SYSTEM

Alemayehu Shiferaw (Ph.D)


Part Four: Information
Systems in Business
4.1. Functional Units
 How are enterprises organized?
Most are organized in a
hierarchy

Alemayehu Shiferaw (Ph.D)


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Functional Units
 What is a functional unit?
 Individual operating entity, which can include
departments, centers, and divisions

Human Accounting Engineering


Resources and or product Manufacturing
(HR) Finance development

Marketing Sales Distribution

Customer Information
Service Technology

Alemayehu Shiferaw (Ph.D)


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4.1.1. Human Resources Management
 Manages human resources function
 Employee relationship management (ERM) system
facilitates communication with employees

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Human Resources Management
SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

TRAINING & DEVELOPMENT TRACK TRAINING, SKILLS, APPRAISALS OPERATIONAL

CAREER PATHING DESIGN EMPLOYEE CAREER PATHS KNOWLEDGE

COMPENSATION ANALYSIS MONITOR WAGES, SALARIES, BENEFITS MANAGEMENT

HUMAN RESOURCES PLANNING PLAN LONG-TERM LABOR FORCE NEEDS STRATEGIC

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4.1.2. Financial and Accounting Management
 What are the functions of accounting and finance
systems?

Alemayehu Shiferaw (Ph.D)


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Financial and Accounting Management
SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

ACCOUNTS RECEIVABLE TRACK MONEY OWED TO FIRM OPERATIONAL

PORTFOLIO ANALYSIS DESIGN FIRM'S INVESTMENTS KNOWLEDGE

BUDGETING PREPARE SHORT TERM BUDGETS MANAGEMENT

PROFIT PLANNING PLAN LONG-TERM PROFITS STRATEGIC


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4.1.3. Production/Operations Management
 What is computer-aided design (CAD)?

 Uses special software


to aid in product
design
 Computer-aided
engineering (CAE)
uses computers to
test product designs

Alemayehu Shiferaw (Ph.D)


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Production/Operations Management
 What is computer-aided manufacturing (CAM)?
 Use of computers to control production equipment

 Computer-integrated
manufacturing (CIM)
integrates operations
of manufacturing
process

Alemayehu Shiferaw (Ph.D)


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Production/Operations Management
 What is Material Requirements Planning
(MRP)?
Uses software to
monitor and control production
processes

Focuses on
inventory of parts

Helps in scheduling,
Manufacturing Resource Planning II tracking production,
(MRP II) and monitoring
is extension of MRP product quality

Alemayehu Shiferaw (Ph.D)


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Production/Operations Management
SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

MACHINE CONTROL CONTROL ACTIONS OF EQUIPMENT OPERATIONAL

COMPUTER-AIDED-DESIGN DESIGN NEW PRODUCTS KNOWLEDGE

PRODUCTION PLANNING DECIDE NUMBER, SCHEDULE OF PRODUCTS MANAGEMENT

FACILITIES LOCATION DECIDE WHERE TO LOCATE FACILITIES STRATEGIC

Alemayehu Shiferaw (Ph.D)


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4.1.4. Marketing and Sales Management
 What is a marketing information system?
 Central repository for marketing tasks
 Market research system analyzes data gathered from
surveys

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Marketing and Sales Management
 What is sales force automation (SFA)
software?
 Tools for
traveling
salespeople
 Runs on PDAs
or notebook
computers

Alemayehu Shiferaw (Ph.D)


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Marketing and Sales Management

SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

ORDER PROCESSING ENTER, PROCESS, TRACK ORDERS OPERATIONAL

MARKET ANALYSIS IDENTIFY CUSTOMERS & MARKETS KNOWLEDGE

PRICING ANALYSIS DETERMINE PRICES MANAGEMENT

SALES TRENDS PREPARE 5-YEAR FORECASTS STRATEGIC

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4.1.5. Distribution Management
Provide forecasting Provide tracking of
for inventory control product shipments

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4.1.6. Customer Relationship

Management

Manages information about customers, interactions with


customers, past purchases, and interests

Mainly used in three departments

Customer service
Marketing—learns Sales—tracks sales
department—
about customers process from initial
tracks ongoing
and then designs contact through
correspondence
new products final purchase
with customer

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Customer Interaction Management

 Manages interactions
with customers
 Telephone calls
 E-mail
 Web interactions
 Instant Messaging
Sessions

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4.2. Business Intelligence Systems
Business Intelligence (BI) is a
-involves acquiring data and information from a wide broad range of software and
variety of sources and utilising them in decision- solutions aimed at collection,
making. consolidation, analysis and
providing access to information
that allows users across the
business to make better decisions.
The technology includes
software for database query and
analysis, multidimensional
databases or OLAP tools, data
warehousing and data mining, and
web enabled reporting capabilities.
Applied across disciplines but
especially in Customer
Relationship Management, Supply
Chain Management, Enterprise
Resource Planning
Provide better, faster and more
accessible reports

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What can companies do with
BIS?
 Track their own operations
 customers’ activity patterns
 industry trends.
 Fact-based assessments help
companies work toward specific
goals with confidence.

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Overview of Business Intelligence

Analytical
tools

Data Data Analysis


OLAP Results
Sources Warehouse

Data
Data visualisation Mining
Data visualisation

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Stages in Business Intelligence

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4.3. Enterprise Resource Planning (ERP)
ERP systems integrate the functional areas of the organization by
enabling seamless information flows across them.

Provides software
applications
to coordinate activities
of functional units
 ERP system is
commercial software
package that enables
a company to
integrate the data
used throughout the
entire organization.

Alemayehu Shiferaw (Ph.D)


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ERP Software Modules
 Financials
 Human Resources and Pay Roll
 Distribution/Logistics
 Sales & Marketing
 Manufacturing
 Product Data Management
 Material Planning
 Resource & Capacity Planning
 Shop Floor Management
 Quality Management, etc.
 (Source: Davenport, 1998)
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ERP Implementation
 ERP systems require a major commitment and
investment,
 often require companies to modify some of their
processes to accommodate the software, and
can take a long time to implement
 ERP is a process of managing all resources and their
use in the entire enterprise in a coordinated manner.
 ERP is a set of integrated business applications,
or modules which carry out common business
functions such as general ledger, accounting, or
order management
Alemayehu Shiferaw (Ph.D)
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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.
 Automated update of related information when
new information is entered in one module.
 Direct access to a wealth of real-time operating
information.

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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.

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Reading Assignment
 Collaborative System
 E-Commerce
 Etc.

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Any Questions

?
Alemayehu Shiferaw (Ph.D)
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