Strategic Information System: Usman Sattar

STRATEGIC INFORMATION
SYSTEM
Usman Sattar
School of Business & Economics
University of Management & Technology
Management Information Systems
Contemporary Approaches to Information Systems
Pearson Education 2012
Management Information System
Technical approach
Emphasizes mathematically based
models
Computer science, management
science, operations research
Behavioral approach
Behavioral issues (strategic business
integration, implementation, etc.)

Psychology, economics, sociology
3

A Sociotechnical Perspective on Information Systems
Chapter 2
Global E-business and

Collaboration

Business Processes and Information Systems
Business processes:
Business processes are the collection of
activities required to produce a product or

service.
Workflows of material, information, knowledge
Sets of activities, steps
May be tied to functional area or be cross-functional
Businesses: Can be seen as collection of
business processes
Business processes may be assets or
liabilities
Business processes act like Heart to your business

Examples of functional business
processes
Manufacturing and production
Assembling the product
Sales and marketing

Identifying customers
Finance and accounting

Creating financial statements
Human resources
Hiring employees

The Order Fulfillment Process
10
Imagine McDonalds. Briefly describe
the IS used by Fast food chain.

Order Taking System
Drive-Thru
Home Delivery (Call Center)
Vendor Management
HR System
Etc .
11
Information technology enhances
business processes in two main ways:

1. Increasing efficiency of existing processes
Automating steps that were manual

Example ?
Oder processing, Food Kiosks, Electronic Check outs
2. Enabling entirely new processes that are
capable of transforming the businesses

Example ?
E-books, Kindle, E-Commerce
12
Types of Information Systems
Transaction processing systems

Perform and record daily routine
transactions necessary to conduct

business
Examples: sales order entry, payroll,
shipping
Allow managers to monitor status of
operations and relations with
external environment
Serve operational levels
13
14
Management information
systems
Serve middle management
Provide reports on firms current
performance, based on data

from TPS
Provide answers to routine
15
questions with predefined

procedure for answering
Pearsonthem
Education 2012

How Management Information Systems Obtain Their Data from the Organizations TPS
16

Sample MIS Report
17
Decision support systems

Support non-routine decision making
Example: What is impact on production schedule if
December sales doubled?

Where to expand business?
Often use external information as well from
TPS and MIS

Model driven DSS
Example
Data driven DSS

Example
18
Cricket SCORECARD
Factors affecting the Decisions
DD - DSS
Executive support systems

Support senior management
Address non-routine decisions
Requiring judgment, evaluation, and insight
Incorporate data about external events
21
(e.g. new tax laws or competitors) as

well as summarized information from
internal MIS and DSS
Example: Digital dashboard with real-time
view of firms financial performance: working
capital, accounts receivable, accounts
Lifeline for Business

Transaction processing systems:
supporting operational level

employees
Management information
systems and decision-support
systems: supporting managers
Executive support systems:
supporting executives
22
Relationship of systems to
one another
TPS: Major source of data for other
systems
ESS: Recipient of data from lower-
level systems
Data may be exchanged
between systems
23
Visualization Tool Dash Board
Visualization Tool Dash Board
Business intelligence
Business intelligence is a contemporary
term for data and software tools for

organizing, analyzing, and providing access
to data to help managers and other
enterprise users make more informed
decisions.
Systems for linking the Enterprise
Enterprise Systems
Different kinds of systems in a company to
work together has proven a major

challenge.
27
Enterprise Resource Planning (ERP)

Integrate business processes in a single
system
Manufacturing and Production

Finance and Accounting
Sales and Marketing,
Human resources
28
Enterprise Resource Planning (ERP)

Place an order All the function / processes will be performed by
the organization or can they outsource some?
Factory
Place an Order
Finance Department
Warehouse
Order File
29
Shipment
Order Delivery
Supply Chain Management Systems
Flow of goods from point of origin to
point of consumption
Flow of Information
Supply Chain Management Systems
Help manage relationships with their suppliers.

Share information:
Orders, Production, Inventory levels, and delivery of
products and services.

Result: Source, Produce, and deliver goods and services
efficiently.
Increase profitability by lowering operational
cost and better decision making regarding

when, how and where to source, produce and
distribute.
Example
Supply Chain Management Systems - NIKE
Customer Relationship Management Systems
Help
manage relationships with their

customers.
Share information regarding customer
Sales, Marketing, and Service to optimize
revenue.
Result:
Better
retention.
customer
satisfaction
&
Increase profitability by identifying &
retaining profitable customers and

provide better service to the existing
customers.
Knowledge Management Systems
Firms perform better than others:

They have better knowledge about how to
create, produce, and deliver products and

services.
Knowledge
management
systems
(KMS) enable organizations to better
manage processes for capturing and
applying knowledge and expertise.
35
E-business
Use of digital technology and Internet to
drive major business processes

E-commerce
Subset of e-business
Buying and selling goods and services
through Internet
E-government:
Using Internet technology to deliver
36
information and services to citizens,

employees, and businesses Pearson Education 2012
Systems for Collaboration and Teamwork
Collaboration:
Short-lived or long-term
Informal or formal (teams)
Growing importance of collaboration:

Changing nature of work
Growth of professional work interaction jobs
Changing organization of the firm
Changing scope of the firm
Emphasis on innovation
Changing culture of work
37
Technology for collaboration and
teamwork
Collaborative software tools
39

The Time/Space Collaboration Tool Matrix
40
The Information Systems Function in Business
Information systems department:

Formal organizational unit responsible
for information technology services
Often headed by chief information
officer (CIO)
Other senior positions include chief security
officer (CSO), chief knowledge officer (CKO),

chief privacy officer (CPO)
Programmers
Systems analysts
41
Information systems managers

The Information Systems Function in Business
Information systems department:

Formal organizational unit responsible
for information technology services
Often headed by chief information
officer (CIO)
Other senior positions include chief security
officer (CSO), chief knowledge officer (CKO),

chief privacy officer (CPO)
Programmers
Systems analysts
42
Information systems managers


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STRATEGIC INFORMATION

Management Information Systems

Contemporary Approaches to Information Systems

Pearson Education 2012

Management Information System

Contemporary Approaches to Information Systems

integration, implementation, etc.)

Pearson Education 2012

Management Information System

Contemporary Approaches to Information Systems

Management Information Systems

Contemporary Approaches to Information Systems

Pearson Education 2012

Global E-business and

Management Information System

activities required to produce a product or

Businesses: Can be seen as collection of

Pearson Education 2012

Management Information System

Business Processes and Information Systems

Business processes act like Heart to your business

Management Information System

Examples of functional business

Sales and marketing

Finance and accounting

Pearson Education 2012

Business Processes and Information Systems

Pearson Education 2012

Management Information System

Business Processes and Information Systems

Imagine McDonalds. Briefly describe

the IS used by Fast food chain.

Pearson Education 2012

Management Information System

Business Processes and Information Systems

Information technology enhances

business processes in two main ways:

Automating steps that were manual

capable of transforming the businesses

Pearson Education 2012

Management Information System

Types of Information Systems

Transaction processing systems

transactions necessary to conduct

Pearson Education 2012

Management Information Systems

Types of Information Systems

Pearson Education 2012

Management Information System

Types of Information Systems

performance, based on data

questions with predefined

Types of Information Systems

Pearson Education 2012

Types of Information Systems

Pearson Education 2012

Management Information System

Types of Information Systems

Decision support systems

December sales doubled?

TPS and MIS

Data driven DSS

Pearson Education 2012