Chapter 2 and 14.doc

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Information Technology Management
ITM 102
Vikraman Baskaran

Chapter 2 and 14 How business use ISEnhance Decision MakingDigital manufacturing provides data for Tatas SAP enterprise resource planning system simulates the movements of people Adopting digital manufacturing has reduced timeto market for new passenger cars by at least 6 months Manufacturing and facilities planning take 30 percent less time with 20 percent reduction in cost of manufacturing planning process Time to design an entire process has been reduced by more than 50 percent Tata motors illustrates how much companies rely on information systems to run their businesses and drive innovation growth and profitability Digital manufacturing systems increased flexibility and efficiency while decreasing production costs21 Business Processes and Information Systems Business processes are concrete workflows of material information and knowledge sets of activitiesPerformance of a business firm depends on how well its business processes are coordinated and designedHow information technology enhances business processesChange the flow of information making it possible for many more people to access and share informationReplacing sequential steps with tasks that can be performed simultaneouslyEliminating delays in decision making How information systems serve management Transaction Processing SystemsOperational managers need systems that keep track of elementary activities and transactions of the organizationex sales receipts cash deposits etcTransaction processing system is a computerized system that performs and records the daily routine transactions necessary to conduct a business such as sale order entry hotel reservations etc Principle purpose to answer routine questions and to track the flow of transactions through the organizationTasks goals resources and goals are predefined and highly structuredManagement Information Systems and DecisionSupport SystemsMiddle management needs systems to help with monitoring controlling decisionmaking and administrative activities Principle question Are things working wellManagement Information Systems also designates a specific category of information systems serving middle management Decision support systems support non routine decision making for middle managementfocus on problems that are unique and rapidly changing Principle questionWhat would be the impact on production schedules if we were to double sales in DecemberExecutive Support Systems for Senior Management Senior managers need systems that address strategic issues and long term trends both in the firm and in the external environment Principle questions What will employment levels be in 5 yearsExecutive support systems help senior management make these decisions ESS address no routine decisions requiring judgement evaluation and insight because there is no agreed on procedure for arriving at a solutionDigital dashboards increasingly popular feature of ESSSystems that Span the Enterprise Enterprise applications systems that span functional areas focus on executing business processes across the business firm and include all levels of management Help businesses become more flexible and productive Enterprise Systems Known as enterprise resource planning systemsSupply Chain Management SystemsHelps businesses manage relationships with their suppliersThese systems help suppliers purchasing firms distributors and logistics companies share information about orders production inventory levels and delivery
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