INFORMATION

SYSTEMS IN THE
ENTERPRISE

Presented to: Mr.HARMAN PURI

Group members:
1. Umesh Sharma
2. BaBita Singh
3. Priti Chauhan
4. Sonia Sharma
5. Ankush Singh
OBJECTIVES
(IS in enterprise)
• Evaluate the role played by the major types
of systems in a business and their
relationship to each other

• Describe the information systems supporting

the major business functions: sales and
marketing, manufacturing and production,
finance and accounting, and human resources
• Analyze the relationship between
organizations, information systems,
and business processes

• Assess the challenges posed by

information systems in the
enterprise and management
solutions
MAJOR TYPES OF SYSTEMS
IN ORGANIZATIONS
Types of Information Systems
 Different Kinds of
Systems
• Three main categories of
information systems serve different
organizational levels:

• Operational-level systems: (lower

level)

• Management-level systems: (middle

level)

• Strategic-level systems: (top level)

Major Types of Systems
• Transaction Processing Systems (TPS)

• Management Information Systems (MIS)

• Decision-Support Systems (DSS)

• Executive Support Systems (ESS)

Transaction Processing
Systems (TPS)
• Basic business systems that
serve the operational level

• A computerized system that

performs and records the daily
routine transactions necessary
to the conduct of the business
Payroll TPS
 Management Information
Systems (MIS)
• Inputs: High volume transaction level
data

• Outputs: Summary reports

• Users: Middle managers

• Example: Annual budgeting

Decision-Support Systems
(DSS)
• Management level
• Inputs: Transaction level data
• Processing: Interactive
• Outputs: Decision analysis
• Users: Professionals, staff

• Example: Contract cost analysis

EXECUTIVE SUPPORT
SYSTEMS (ESS):
• Inputs: Aggregate data

• Processing: Interactive

• Outputs: Projections

• Users: Senior managers

• Example: 5 year operating plan

Model of a Typical
Executive Support System
EXECUTIVE SUPPORT
SYSTEMS (ESS)
• Top Level Management

• Designed to the individual senior manager

• Ties CEO to all levels

• Very expensive to keep up

• Extensive support staff

Relationship of Systems to
One Another
SYSTEMS FROM A
FUNCTIONAL PERSPECTIVE
• Sales & Marketing Systems

SYSTEM DESCRIPTION ORGANIZATIONAL

LEVEL

Order Enter, process, and track orders Operational

processing

Pricing analysis Determine prices for products and Management

services

Sales trend Prepare 5-year sales forecasts Strategic

forecasting
• Manufacturing and Production
Systems
SYSTEM DESCRIPTION ORGANIZATIONAL
LEVEL

Machine Control the actions of machines and Operational

control equipment

Production Decide when and how many products Management

planning should be produced

Facilities Decide where to locate new production Strategic

location facilities
• Financing & Accounting Systems
SYSTEM DESCRIPTION ORGANIZATION-
AL LEVEL

Accounts Tracks money owed the firm Operational

receivable

Budgeting Prepares short-term budgets Management

Profit planning Plans long-term profits Strategic

• Human Resource Systems
SYSTEM DESCRIPTION ORGANIZATIONAL
LEVEL

Training and Tracks employee training, skills, Operational

development and performance appraisals

Compensation Monitors the range and distribution Management

analysis of employee wages, salaries, and
benefits

Human resources Plans the long-term labor force Strategic

planning needs of the organization
 INTEGRATING FUNCTIONS
AND BUSINESS PROCESSES
• Information systems help organizations :

• Achieve great efficiencies by automating parts of

processes

• IS also contributes to completely rethinking

processes

• Business processes typically span several different

functional areas
Systems for Enterprise-
Wide Process Integration
• Consist of :

• Enterprise systems
• Supply chain management systems
• Customer relationship management
systems
• Knowledge management systems
Enterprise Systems
• Enterprise systems, also known as enterprise
resource planning (ERP) systems provides a
single information system for organization-
wide coordination and integration of key
business processes
• Information that was previously fragmented in
different systems can seamlessly flow
throughout the firm so that it can be shared by
business processes in manufacturing,
accounting, human resources, and other areas
Traditional View of Systems
Enterprise Systems
Supply Chain Management
(SCM)
• Close linkage and coordination of
activities involved in buying, making,
and moving a product

• Integrates supplier, manufacturer,

distributor, and customer logistics time

• Reduces time, redundant effort, and

inventory costs

• Network of organizations and business

processes
• Helps in procurement of materials,
transformation of raw materials into
intermediate and finished products

• Helps in distribution of the finished

products to customers

• Includes reverse logistics - returned

items flow in the reverse direction from
the buyer back to the seller
Customer Relationship
Management (CRM)
• Manages all ways used by firms to deal with
existing and potential new customers

• Business and technology discipline

• Uses information system to coordinate

entire business processes of a firm
• Provides end to end customer care

• Provides a unified view of customer

across the company

• Consolidates customer data from

multiple sources and provides
analytical tools for answering questions
Knowledge Management
Systems
• Collects relevant knowledge & make it
available wherever and whenever it is
needed
• Support business processes and
management decisions
• Also link the firm to external sources of
knowledge
• Support processes for acquiring, storing,
distributing, and applying knowledge
MANAGEMENT
OPPORTUNITIES AND
CHALLENGES
The Opportunities:

• There are extraordinary opportunities to

use information systems to achieve
business value, and increase
profitability
• The Challenges
• Integration and the whole firm view:

• Management and employee training

• Accounting for the cost and need for

systems