Week 4 - Functional & Integrated Cross Functional Systems

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• Management Decision Making • Functional Information Systems • Integrated Cross-Functional Information Systems Integrated Cross-Functional Information Systems Applications
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Flashcards by jenniferelkhoury, updated more than 1 year ago
jenniferelkhoury
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Question Answer
To appreciate how information systems support managers, you must first understand the manager's job. All managers perform 3 basic roles, these are: – Interpersonal roles: figurehead, leader, liaison – Informational roles: monitor, disseminator, spokesperson, analyzer – Decisional roles: entrepreneur, disturbance handler, resource allocator, negotiator
Process and Phases of Decision Making (chart)
Why do managers need IT support? list at least 2 of these reasons. – The number of alternatives is constantly increasing, due to innovations in technology, improved communications, the development of global markets, and the use of the Internet and e-business. – Most decisions must be made under time pressure. It often is not possible to manually process information fast enough to be effective. – Due to increased uncertainty in the decision environment, decisions are becoming more complex – It often is necessary to rapidly access remote information, consult with experts, or conduct a group decision-making session, all without incurring large expenses ● These trends create major difficulties for decision makers
What is the Decision Matrix? The three primary classes of problem structure and the three broad categories of the nature of decisions can be combined in a decision-support matrix.
What does the Decision Matrix consist of? – Consists of nine cells, (see next card) ● Lower-level managers usually perform tasks in cells 1, 2, and 4 ● The tasks in cells 3, 5, and 7 are usually the responsibility of middle managers and professional staff ● Tasks in cells 6, 8, and 9 are generally carried out by senior executives
The Decision Matrix
Each department or functional area within an organization has its own collection of information systems. Each of these FAI's support a particular functional area in the organisation. How? By increasing it internal efficiency and effectiveness.
Examples of FAI's include: ● accounting IS ● finance IS ● production/operations management (POM) IS ● marketing IS ● human resources IS * FAI's often convey information in a variety of reports * FAI's access data from the corporate databases
What are the 5 components of every IS?
What does a FAI concentrate on? ONE functional area or SINGLE department
They become "Islands of Automation". What does this mean? – They work independently from each other – They are as effective as independent functions – Are inefficient working in cooperation with other processes across entire business ● Typically each FAIS will have data, procedures and people who only support ONE functional area
Functional Areas and Information Systems
Functional Areas & Types of IS Systems
What is a Transaction? A transaction is any business event that generates data worthy of being captured and stored in a database.
5 Examples of Transactions? – a product manufactured – a service sold – a person hired – a payroll check generated – when you are checking out of a supermarket, each time the cashier swipes an item across the bar code reader is one transaction
What is a Transaction Process System? (TPS) A transaction processing system (TPS) supports the monitoring, collection, storage, and processing of data from the organization’s basic business transactions – each of which generates data
What does a TPS do? Collects data continuously and provides the input data for the corporate databases.
Why are TPS's critical to the success of any enterprise? because they support core operations.
In the modern business world, TPS's are inputs. Examples are: – functional area information systems – business intelligence systems – business operations ● customer relationship management ● knowledge management ● e-commerce
What do TPS's have to do efficiently? - Handle both high volumes of data and large variations in those volumes. - They must avoid errors and downtime, record results accurately and securely and maintain privacy and security.
Transaction Processing Systems (Chart)
Examples of TPS Complexities? name at least 2. *These and similar issues explain why organisation spend millions of dollars on expensive mainframe computers. ● When more than one person or application program can access the database at the same time, the database has to be protected from errors resulting from overlapping updates. ● When processing a transaction involves more than one computer, the database and all users must be protected against inconsistencies arising from a failure of any component at any time. ● It must be possible to reverse a transaction in its entirety if it turns out to have been entered in error or if goods returned. ● It is frequently important to preserve an audit trail, in fact, for certain transactions an audit trail may be legally required.
What do TPS do? ● Provide managers with reports or with on-line access to the organisation’s current performance and historical records. – Depend on underlying TPS for their data (the inputs). – The basic transaction data from TPS are compressed and are usually presented in long reports that are produced on a regular schedule.
What functions does this primarily serve? The functions of planning, controlling and decision making at the middle management level. - Oriented almost exclusively to internal, not external events - Concentrates on operations in one functional area.
TPS v MIS (TPS Report) ● Each salesperson would receive a report showing a summary of transactions with each of their clients. ● The salesperson would have some idea about how their sales are going and try to target certain customers (a form of CRM)
TPS v MIS (MIS report) An MIS Report ● A manager would get a summary of sales for a region ● They examine the report and take action on some matter such as employ more staff or train staff in a certain region
What are Executive Support Systems for? - Support strategic planning - Unpredictable (unstructured) decisions
ESS are taylor-made systems to meet needs. They are used to: – Monitor performance – Track competitors – Spot problems – Identify opportunities – Forecast trends
What are Traditional Functional systems? ● Separate systems (now called silos) ● Built over a long period of time ● Support discrete business processes and functions ● Rarely include vendors (suppliers) and customers
What are problems relating to Functional Processes and Systems? Name at least 3. ● Data is duplicated because each functional application has its own database ● Business processes disjointed because supporting applications separated ● Difficult for activities to reconcile data and increases chances of errors ● Lack of integrated enterprise information ● Inefficiency ● Increased costs due to duplicated data, disjointed systems, limited information, and inefficiencies.
There is a growing organisational need to integrate functions and business processes to improve: - Organisational Control - Coordination - Responsiveness
How is this done? By allowing data and information to flow more freely between different parts of the organisation.
This is more than just linking the systems together. This changes... The processes (or the way things are done) as well.
In regards to Business Process redesign, organisations should: - Not automate or improve functional systems - Should create new business processes *This came from the idea (recall porter) That IS should support linkages across departments and activities between businesses.
Cross-department systems operate across departmental boundaries. This is for: Increased functionality.
Process-based systems support complete business processes. This means that: - Integrated processing systems are more efficient - Needs clear line of authority.
Why are Enterprise Resource Planning systems designed? To correct a lack of communication among the functional area of IS.
How do ERP systems resolve this problem? By tightly integrating the functional area IS via a common database. * For this reason, experts credit ERP systems with greatly increasing organizational productivity.
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