Information Systems

BM-706

Instructor
Muhammad Bilal Bari
University of Agriculture, Faisalabad
Sub-Campus Burewala/Vehari, Pakistan
Learning Objectives
Identify and describe the major features of a business that are important for
understanding the role of information systems.
Describe the information systems supporting the major business functions:
sales and marketing, manufacturing and production, finance and accounting,
and human resources.
Evaluate the role played by systems serving the various levels of
management in a business and their relationship to each other.
Explain how enterprise applications and intranets promote business process
integration and improve organizational performance.
Assess the role of the information systems function in a business.
Business Processes
What tasks does each employee perform, in what tasks does each employee
perform, in what order, and on what schedule?
How are raw materials transformed into products? How are raw materials
transformed into products?
How are orders fulfilled?
How are bills paid?
How are products marketed?
How are employees hired?
Components of a Business

A business is a formal organization that makes products or provides a service

in order to make a profit.
Four basic business functions: manufacturing, production, sales and
marketing, finance and accounting, and human resources.
Five basic business entities: suppliers, customers, Five basic business entities:
suppliers, customers, employees, invoices/payments, and products and,
invoices/payments, and products and services
Information Systems can help to Solve Its
Quality Problems
Problem: High level of defects in product, new government requirements for
reporting defects.
Solutions: Improve quality and monitor defects so that defects and quality
problems are easily identified.
Info gain data repository and Clarify CRM system link results in reduced costs
and increased sales .
Demonstrates ITs role in centralizing data, interfacing with customers, and
improving production processes.
Illustrates digital technologys role in improved quality and lower rate of
defects leading to customer satisfaction and repeat business.
Information Systems
An information system (IS) is an organized system for the collection,
organization, storage and communication of information. More specifically, it
is the study of complementary networks that people and organizations use to
collect, filter, process, create and distribute data.
"An information system (IS) is a group of components that interact to produce
information. The term is also sometimes used in more restricted senses to
refer to only the software used to run a computerized database or to refer to
only a computer system
Information Systems is an academic study of systems with a specific
reference to information and the complementary networks of hardware and
software that people and organizations use to collect, filter, process, create
and also distribute data. An emphasis is placed on an information system
having a definitive boundary, users, processors, storage, inputs, outputs and
the communication networks
Managing a Business and Firm Hierarchies
Managing a Business and Firm Hierarchies Managing a Business and Firm
Hierarchies
Senior management
Middle management
Operational management
Knowledge workers
Data workers
Production or service workers
The Business Environment
Global environment Factors Immediate environment factors
science and Technology Customers
Economy Suppliers
Politics Competitors
International change Regulations
Stockholders
The Role of Information Systems in a
Business
Information systems relate to the following business objectives:
1. Achieving operational excellence
2. Developing new products and services
3. Attaining customer intimacy and service
4. Improving decision making
5. Promoting competitive advantage
6. Ensuring survival
Fulfilling a customer order involves a complex set of steps
that requires the close coordination of the sales, accounting,
and manufacturing functions.
Interactive Session: Dawlance

Visit Dawlance's Web site at www.Dawlance.com.pk

What is your impression of the site?
Does it make you think customer service Why or why not?
What features of the site seem geared toward first customer service?
Discuss whether Dawlances site would be appealing to you if you were
looking to Purchase, or you are going to search some other stuffs.
Systems from a Constituency Perspective
Executive support systems
Management information systems and decision- support systems
Transaction processing systems
Transaction processing System
A transaction processing system provides a way to collect, process, store,
display, modify or cancel transactions.
Most of these systems allow multiple transactions to take place
simultaneously.
Data that this system collects is usually stored in databases which can be used
to produce reports such as billing, wages, inventory summaries,
manufacturing schedules or checking registers.
Data about daily routine matters and selling/purchasing works are done
through this system.
Management Information System
A management information system is an information system that uses the
information collected by transaction processing system and uses this data to
create reports in a way that managers can use it to make routine business
decisions in response to problems.
Some examples of reports that this information system creates are summary
exception and ad-hoc reports
Ad hoc analysis is a business intelligence process designed to answer a single,
specific business question. The product of ad hoc analysis is typically a
statistical model, analytic report, or other type of data summary
All this is done to increase the efficiency of managerial activity.
Decision support system
A decision support system helps make decisions by working and analyzing data
that can generate statistical projections and data models.
This system gives support rather than replacing managers judgment while
improving the quality of a managers decisions.
A decision support system helps solve problems while using external data for
better decisions.
DSSs serve the management, operations and planning levels of an organization
(usually mid and higher management) and help people make decisions about
problems that may be rapidly changing and not easily specified in advance.
Executive support systems
An executive information system (EIS), also known as an executive support
system (ESS) is a type of management information system that facilitates and
supports senior executive information and decision-making needs.
It provides easy access to internal and external information relevant to
organizational goals. It is commonly considered a specialized form of decision
support system (DSS).
EIS emphasizes graphical displays and easy-to-use user interfaces. They offer
strong reporting and drill-down capabilities.
In general, EIS are enterprise-wide DSS that help top-level executives
analyze, compare, and highlight trends in important variables so that they
can monitor performance and identify opportunities and problems.
EIS and data warehousing technologies are converging in the marketplace.
Enterprise Systems

The various types of systems in the organization have interdependencies.

TPS are major producers of information that is required by many other
systems in the firm, which, in turn, produce information for other systems.
These different types of systems have been loosely coupled in most
organizations.
Enterprise applications are systems that span functional areas and automate
processes for multiple business functions and organizational areas; they
include:
Supply chain management systems Customer relationship management systems
Knowledge management systems
Supply Chain Management Systems
Aim to move the correct amount of product from source to point of
consumption as quickly as possible and at the lowest cost
Used by firms to manage relationships with suppliers, purchasing firms,
distributors, and logistics companies through shared information about orders,
production, inventory levels etc.
Automate the flow of information across organizational boundaries

Knowledge Management Systems

Intangible knowledge assets provide value to firms
Knowledge management systems manage the capture, storage, distribution,
and application of knowledge so that it can be leveraged for strategic benefit
CRMs Customer Relationship
Management Systems
Coordinate all of the business processes that deal with customers to optimize
revenue and customer satisfaction, and increase sales
Sales, marketing, and service record data from multiple communication
channels can be combined
Saab implemented CRM applications from Siebel Systems to achieve a 360
view of customers, resulting in a greater follow-up rate on sales leads and
increased customer satisfaction.
Intranets and Extranets
Technology platforms that increase integration and expedite the flow of
information
Intranets: internal networks based on Internet standards
Extranets: intranets that are extended for authorized use outside the
company
Intranets often utilize a portal
Extranets facilitate collaboration
E-Business, E-Commerce and E-Government
E-business refers to the use of digital technology and the Internet to drive
major business processes
E-commerce is a subset of E-Business that involves buying and selling goods
and services through the Internet
E-government refers to using Internet technology to deliver information and
services to citizens, employees, and businesses
Information Systems Department Careers
Programmers
Systems analysts
Information systems managers
Chief information officer (CIO)
Organizing the Information Systems
Function
Small companies often rely on a single person for information technology
services rather than an information systems department.
Some large firms with IS departments decentralize them so that each
functional area of the business has its own information systems.
Other large firms may depend on a central department that makes
technology decisions for the entire company.
 THANKS
Any Questions??????