Management

Information System
Session 3
Instructor: Fei Tian Associate Professor
Cell: 13705606629
Email: [email protected]
Web: http://210.45.208.10/dep/tf/index.htm
 Session 3
Organization, Management,
Business Processes, and
Information systems
Agenda

1. Case Study: UPS

2. Types of IS with Organization Functions in TPS Level
3. Types of IS in Other Management Level Mixture of
Function and Level
4. Key Applications in Business
5. Traditional View and Current View on System
6. Strategic Information Systems
7. Assignment

[email protected] MIS 1-3:3/59

Case: UPS
1. In late 2000, best known for reliable,efficient package
delivery.
1) Delivery 13.6 million packages a day set by 1.8 million
shippers to 7 million consignees.
2) In 1999, its revenue is $27 billions
2. IT/IS in recent decade:
1) 1990: .UPS Net
2) 1993: DIAD(Delivery Information Acquisition Device)
3) mid of 1990: API +tracking system
4) By late 2000: 6 OnLine Tools
5) Late of 2000: e-commerce, e-logistics+……

[email protected] MIS 1-3:4/59

Case Study: UPS

1. What are the input, processing, and output of

UPS’s package tracking system?
2. What technologies are used? How are these
technologies related to UPS’s business strategy?
What would happen if these technologies were
not available?
3. What change in UPS management and
organization when they use the package tracking
systems?

[email protected] MIS 1-3:5/59

Case Study: UPS

1. Input:
– Package information, customer signature, pickup,
delivery and timecard data, data location(while on
route), and billing and customer clearance document.
1. Processing:
– Mainly,the data is transmitted to a central computer and
stored for retrieval.
1. Output:
– Mostly the same data as the input----pickup and delivery
time, location while on route, who signed for the
package.

[email protected] MIS 1-3:6/59

Case Study: UPS
1. Technologies used include handheld computers with
devices to automatically capture shipping information,
barcode scanners, telecommunications for transmitting
data, cellular phone network, and computer.
2. The strategy is still the original one: “best service and
lowest rate”. Technology allows UPS and its customers to
always know where a package is.
3. If the technology were not available, then UPS would, as
it has through most of its history, attempt to provide that
information to its customers, but at a high price. Note the
pressure to reduce process time and cycle time

[email protected] MIS 1-3:7/59

Agenda

1. Case Study: UPS

2. Types of IS with Organization Functions in TPS Level
3. Types of IS in Other Management Level Mixture of
Function and Level
4. Key Applications in Business
5. Traditional View and Current View on System
6. Strategic Information Systems
7. Assignment

[email protected] MIS 1-3:8/59

 TYPES OF INFORMATION SYSTEMS
KIND OF SYSTEM GROUPS SERVED
STRATEGIC LEVEL SENIOR
MANAGERS

MANAGEMENT LEVEL MIDDLE

MANAGERS

KNOWLEDGE LEVEL KNOWLEDGE &

DATA WORKERS

OPERATIONAL
OPERATIONAL LEVEL
MANAGERS
SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN
MARKETING RESOURCES

[email protected] MIS 1-3:9/59

MAJOR TYPES OF SYSTEMS

1. TRANSACTION PROCESSING SYSTEMS (TPS)

2. KNOWLEDGE WORK SYSTEMS (KWS)
3. OFFICE AUTOMATION SYSTEMS (OAS)
4. MANAGEMENT INFORMATION SYSTEMS (MIS)
5. DECISION SUPPORT SYSTEMS (DSS)
6. EXECUTIVE SUPPORT SYSTEMS (ESS)

[email protected] MIS 1-3:10/59

TYPICAL TPS APPLICATIONS
Sales & Marketing Systems
1. MAJOR FUNCTIONS OF SYSTEMS:
– Sales management, market research,
promotion, pricing, new products
1. MAJOR APPLICATION SYSTEMS:
– Sales order info system, market research
system, pricing system

[email protected] MIS 1-3:11/59

TYPICAL TPS APPLICATIONS
Manufacturing & Production Systems

1. MAJOR FUNCTIONS OF SYSTEMS:

– Scheduling, purchasing, shipping, receiving,
engineering, operations
1. MAJOR APPLICATION SYSTEMS:
– Materials resource planning systems,
purchase order control systems, engineering
systems, quality control systems

[email protected] MIS 1-3:12/59

TYPICAL TPS APPLICATIONS
Finance & Accounting Systems
1. MAJOR FUNCTIONS OF SYSTEMS:
– Budgeting, general ledger, billing, cost
accounting
1. MAJOR APPLICATION SYSTEMS:
– General ledger, accounts receivable, accounts
payable, budgeting, funds management
systems

[email protected] MIS 1-3:13/59

TYPICAL TPS APPLICATIONS
Human Resources Systems
1. MAJOR FUNCTIONS OF SYSTEMS:
– Personnel records, benefits, compensation,
labor relations, training
1. MAJOR APPLICATION SYSTEMS:
– Payroll, employee records, benefit systems,
career path systems, personnel training
systems

[email protected] MIS 1-3:14/59

Example: Payroll Trans. System

[email protected] MIS 1-3:15/59

TYPICAL TPS APPLICATIONS
Other Types (e.g., University)
1. MAJOR FUNCTIONS OF SYSTEMS:
– Admissions, grade records, course records,
alumni
1. MAJOR APPLICATION SYSTEMS:
– Registration system, student transcript
system, curriculum class control system,
alumni benefactor system

[email protected] MIS 1-3:16/59

Transaction Processing System (TPS)

• Characteristic:
– 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

[email protected] MIS 1-3:17/59

Agenda

1. Case Study: UPS

2. Types of IS with Organization Functions in TPS
Level
3. Types of IS in Other Management Level
4. Mixture of Function and Level
5. Key Applications in Business
6. Traditional View and Current View on System
7. Strategic Information Systems
8. Assignment

[email protected] MIS 1-3:18/59

KNOWLEDGE WORK SYSTEMS (KWS)

KNOWLEDGE LEVEL
1. INPUTS: DESIGN SPECS
2. PROCESSING: MODELLING
3. OUTPUTS: DESIGNS, GRAPHICS
4. USERS: TECHNICAL STAFF

• EXAMPLE: ENGINEERING WORK

STATION:CAD/CAPP/CAM

[email protected] MIS 1-3:19/59

OFFICE AUTOMATION SYSTEMS
(OA)

1. TOWARD A “PAPERLESS” OFFICE

2. REDESIGN OF WORK FLOW
3. INTEGRATED SOFTWARE
4. ERGONOMIC DESIGN
5. BRIGHT, CHEERFUL WORK SPACE

• EXAMPLE: PRESENTATION GRAPHICS:

MS OFFICE

[email protected] MIS 1-3:20/59

Management Information Systems (MIS)

MANAGEMENT LEVEL
1. INPUTS: HIGH VOLUME DATA
2. PROCESSING: SIMPLE MODELS
3. OUTPUTS: SUMMARY REPORTS
4. USERS: MIDDLE MANAGERS

• EXAMPLE: ANNUAL BUDGETING

[email protected] MIS 1-3:21/59

 TPS Data for MIS Applications

TPS MIS
Order Processing SALES
DATA
System

ORDER FILE UNIT

PRODUCT
Materials Resource COST
MIS REPORTS
Planning System
PRODUCT
CHANGE
PRODUCTION MASTER FILE
DATA
General Ledger
EXPENSE MANAGERS
System DATA

ACCOUNTING FILES MIS FILES

[email protected] MIS 1-3:22/59

MANAGEMENT INFORMATION
SYSTEMS
• Characteristic:
1. STRUCTURED & SEMI-STRUCTURED
DECISIONS
2. REPORT CONTROL ORIENTED
3. PAST & PRESENT DATA
4. INTERNAL ORIENTATION

[email protected] MIS 1-3:23/59

DECISION SUPPORT SYSTEMS
(DSS)

MANAGEMENT LEVEL
1. INPUTS: LOW VOLUME DATA
2. PROCESSING: INTERACTIVE
3. OUTPUTS: DECISION ANALYSIS
4. USERS: PROFESSIONALS, STAFF

• EXAMPLE: CONTRACT COST

ANALYSIS
[email protected] MIS 1-3:24/59
Example: DSS

[email protected] MIS 1-3:25/59

[email protected] MIS 1-3:26/59
Example: DSS

[email protected] MIS 1-3:27/59

DECISION SUPPORT SYSTEMS

• Characteristic:
1. FLEXIBLE, ADAPTABLE, QUICK
2. USER CONTROLS INPUTS/OUTPUTS
3. NO PROFESSIONAL PROGRAMMING
4. SUPPORTS DECISION PROCESS
5. SOPHISTICATED MODELING TOOLS

[email protected] MIS 1-3:28/59

Executive Support Systems (ESS)

STRATEGIC LEVEL
1. INPUTS: AGGREGATE DATA
2. PROCESSING: INTERACTIVE
3. OUTPUTS: PROJECTIONS
4. USERS: SENIOR MANAGERS

• EXAMPLE: 5 YEAR OPERATING

PLAN

[email protected] MIS 1-3:29/59

Example: ESS (EIS)

[email protected] MIS 1-3:30/59

[email protected] MIS 1-3:31/59
[email protected] MIS 1-3:32/59
[email protected] MIS 1-3:33/59
EXECUTIVE SUPPORT SYSTEMS

• Characteristic:
1. TOP LEVEL MANAGEMENT
2. DESIGNED TO THE INDIVIDUAL
3. TIES CEO TO ALL LEVELS
4. VERY EXPENSIVE TO KEEP UP
5. EXTENSIVE SUPPORT STAFF

[email protected] MIS 1-3:34/59

 INTERRELATIONSHIPS AMONG SYSTEMS

ESS

MIS DSS

KWS
TPS
OAS
[email protected] MIS 1-3:35/59
 TYPES OF INFORMATION SYSTEMS
KIND OF SYSTEM GROUPS SERVED
STRATEGIC LEVEL SENIOR
MANAGERS

MANAGEMENT LEVEL MIDDLE

MANAGERS

KNOWLEDGE LEVEL KNOWLEDGE &

DATA WORKERS

OPERATIONAL
OPERATIONAL LEVEL
MANAGERS
SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN
MARKETING RESOURCES

[email protected] MIS 1-3:36/59

Agenda

1. Case Study: UPS

2. Types of IS with Organization Functions in TPS
Level
3. Types of IS in Other Management Level
4. Mixture of Function and Level
5. Key Applications in Business
6. Traditional View and Current View on System
7. Strategic Information Systems
8. Assignment

[email protected] MIS 1-3:37/59

 SALES & MARKETING
INFORMATION SYSTEM

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

[email protected] MIS 1-3:38/59

 MANUFACTURING
INFORMATION SYSTEM

SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

MACHINE CONTROL CONTROL ACTIONS OF EQUIPMENT OPERATIONAL

COMPUTER-AIDED-DESIGN DESIGN NEW PRODUCTS KNOWLEDGE

PRODUCTION PLANNING DECIDE NUMBER, SCHEDULE OF PRODUCTSMANAGEMENT

FACILITIES LOCATION DECIDE WHERE TO LOCATE FACILITIES STRATEGIC

[email protected] MIS 1-3:39/59

 FINANCE & ACCOUNTING
INFORMATION SYSTEM

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

[email protected] MIS 1-3:40/59

 HUMAN RESOURCES
INFORMATION SYSTEM
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

[email protected] MIS 1-3:41/59

Agenda

1. Case Study: UPS

2. Types of IS with Organization Functions in TPS Level
3. Types of IS in Other Management Level Mixture of
Function and Level
4. Key Applications in Business
5. Traditional View and Current View on System
6. Strategic Information Systems
7. Assignment

[email protected] MIS 1-3:42/59

SUPPLY-CHAIN MANAGEMENT

ORDER PLANNING &

CUSTOMERS PROCESSING FORECASTING SUPPLIERS

PROCUREMENT
ACCOUNTING INTRANET

PRODUCTION

LOGISTICS
SHIPPING INVENTORY DISTRIBUTORS
SERVICES

[email protected] MIS 1-3:43/59

HOW INFORMATION SYSTEMS FACILITATES SUPPLY
CHAIN MANAGEMENT
• Decide when, what to produce,store, move…
1) Rapidly communicate orders…
2) Track order status…
3) Check Inventory Availability, monitor levels…
4) Track shipments…
5) Plan production based on actual demand…
6) Rapidly communicate product design changes…
7) Provide product specifications…
8) Share information about defect rate, returns...

[email protected] MIS 1-3:44/59

Agenda

1. Case Study: UPS

2. Types of IS with Organization Functions in TPS Level
3. Types of IS in Other Management Level Mixture of
Function and Level
4. Key Applications in Business
5. Traditional View and Current View on System
6. Strategic Information Systems
7. Assignment

[email protected] MIS 1-3:45/59

 TRADITIONAL VIEW OF
SYSTEMS

1. WITHIN THE BUSINESS: There are

functions, each having its uses of information
systems
2. OUTSIDE THE ORGANIZATION’S
BOUNDARIES: There are customers and
vendors

FUNCTIONS TEND TO WORK IN

ISOLATION

[email protected] MIS 1-3:46/59

 ENTERPRISE SYSTEM

Manufacturing Accounting

Business Processes
Vendors Enterprise-wide Customers
Business Processes

Human Finance
Resources

Sales &
[email protected]
Marketing
MIS 1-3:47/59
 Internet Impact on ……?
——Not only shorts time and space, but

also change the life …

 Not only change in technology

[email protected]
 Re-shape business model MIS 1-3:48/59
Cisco IT Architecture

Marketing, sale, distribution, HR, Travel arr. Tech. Doc.,

Deliver Process
order processing and tracing, Training, Knowledge mgt.
service

Manu-
resellers factures
customers employees
distributors
partners suppliers

Cisco COO Cisco CSC Cisco CEC

Cisco Business Web (Web-Based Application)

ERP Systems, legacy Systems

IT Infrastructure
[email protected] MIS 1-3:49/59
Internet And Digital Firm
1. Information technology infrastructure:
– Provides a universal and easy-to-use set of technologies and
technology standards that can be adopted by all organizations
1. Direct communication between trading partners:
– Disintermediation removes intermediate layers, streamlines process
1. Round-the-clock service:
– Web sites available to consumers 24 hours a day
1. Extended distribution channels:
– Outlets created for attracting customers who otherwise would not
patronize
1. Reduced transaction costs:
– Costs of searching for buyers, sellers, etc. reduced

[email protected] MIS 1-3:50/59

INDUSTRIAL NETWORKS

LINK FIRMS INTO INDUSTRY-WIDE

SYSTEM
1. HORIZONTAL: Link firms in same
industry, including competitors
2. VERTICAL: Link firm with suppliers in
same industry

[email protected] MIS 1-3:51/59

Agenda

1. Case Study: UPS

2. Types of IS with Organization Functions in TPS Level
3. Types of IS in Other Management Level Mixture of
Function and Level
4. Key Applications in Business
5. Traditional View and Current View on System
6. Strategic Information Systems
7. Assignment

[email protected] MIS 1-3:52/59

SABRE Evolved

1. 1960s, Began as inventory-management tool----

technical change.
2. By mid-1970s, as control centre----- flight resource
planning
3. Installed SABRE terminal in travel agencies. As
travel-industry distribution mechanism----
transform the marketing and distribution of airline
services.
4. Today, as electronic travel supermarket ----SABRE
Travel Information Network.

[email protected] MIS 1-3:53/59

[email protected] MIS 1-3:54/59
Information as Strategic Resource

1. 1950s: TECHNICAL CHANGES

– Data Processing (DP) era
1. 60s-70s: MANAGERIAL CONTROL
– Management Information Systems (MIS) era
1. 80s-90s: INSTITUTIONAL CORE ACTIVITIES
– Strategic Information Systems (SIS) era

GROWING IMPORTANCE

[email protected] MIS 1-3:55/59

Evolve Role of Information Systems
Time period Concept of Typical Infor. Purpose Role of Infor.
information systems Systems

1950-1960s Bureaucratic Electronic Speed Speed up ,

Requirement Accounting accounting & efficiency
Machine paperwork
1960s-1970s General mgt MIS Speed general Speed up, cost,
support report efficiency
requirement
1970s-1980s Customized DSS-EIS Improve mgt, effectiveness
mgt support customized
dec. making
1985-2000s Strategic Strategic Promote Sustainable
resource, information survival, strategic
competitive systems prosperity of advantage
advantage, organization
business
foundation

[email protected] MIS 1-3:56/59

Strategic Role of Information Systems

• Strategic Information Systems:

– Can change goals, operations, products,
services, environment TO gain competitive
advantage

[email protected] MIS 1-3:57/59

Assignment for Session 3

1. Individual assignment: write and submit

2. Questions:
– Take example of UPS’s package tracking
systems or other case you are interested in,
please provide the a specific example of each
system level.

[email protected] MIS 1-3:58/59

[email protected] MIS 1-3:59/59