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ITM Chapter 2

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Ryerson University
Information Technology Management
ITM 102
Franklyn Prescod

Management Information Systems: Managing the Digital Firm Chapter 2 How Businesses Use Information Systems Case One: - CN’s dispatch system network was getting old and was too expensive to upgrade - Replaced it with Blackberry Smartphones for their dispatch system o Became easier to communicate, more reliable, efficient o Reduced onsite repairs and IT support by 65% o Became more accurate and improved customer service 2.1 Business Processes of Information Systems Business Processes - The manner in which work is ORGANIZED, CO-ORDINATED and FOCUSED to produce a valuable product or service o Collection of activities required to produce a product or service 2.2 Types of Information Systems - Each major business function has a systems supporting process - Sales and marketing, manufacturing, production, finance and accounting & human resources - Operation management, middle management and senior management (use systems to support decisions they make to run the company) Systems for Different Management Groups Systems to support different groups or levels of management - Transaction processing systems, management information systems, decision support systems and systems for business intelligence Transaction Processing Systems (TPS) - Keep track of ELEMENTARY activities and transactions of the organization o Sales, receipts, cash deposits, payroll, credit decisions and the flow of materials in a factory - TPS computerized system that performs and records daily routine transactions necessary to conduct business, such as sales order entry, hotel reservations, payroll and etc. Business Intelligence Systems for Decision Support (MIS) - Used by middle management to help with monitoring, controlling, decision making and admin activities - ARE THINGS WORKING WELL? - Summarizes and reports on the company’s basic operations using data supplied by transaction processing systems Decisions Support Systems (DSS) - Supports more non-routine decision making - Focus on problems that are unique and rapidly changing - Use internal information from TPS and MIS - Use external information from current stock prices or product prices of competitors Business Intelligence: A contemporary term for data and software tools for organizing, analyzing and providing access to data to help managers and other enterprise users to make more informed decisions Executive Support System (ESS) - Helps senior management make these decisions - Address non-routine decisions requiring judgment, evaluation, and insight - Information is delivered through a PORTAL, which uses a web interface to present personalized business information - Digital Dashboard is where information is displayed on a single screen graphs and charts of key performance indicators for managing a company. Systems for Linking the Enterprise How does a business manage all the information in these different systems? Enterprise Applications: Systems that span functional areas, focus on executing business processes across the business firm, and include all levels of management - Helps businesses become more flexible and productive by coordinating their business processes more closely - 4 Major Enterprise Applications: Enterprise systems, supply chain management systems, customer relationship management systems and knowledge management systems o Enterprise Applications automat
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