MIS MIS and Business Functions TPS/DSS/ESS, MIS and Business Processes Impact of MIS on Business Using Information Systems for Competitive Advantage Managing Information System Resources

MIS and Business Functions
TPS/DSS/ESS, MIS and Business Processes
Impact of MIS on Business
Using Information Systems for Competitive Advantage
Managing Information System Resources

1. Chapter 2 MIS and Business Functions TPS/DSS/ESS, MIS and Business Processes Impact of MIS on Business Using Information Systems for Competitive Advantage Managing Information System Resources

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3. Functional Information Systems • Information system can be classified in these 4 areas: • • • • Marketing Manufacturing and service Accounting and finance H uma n resources 2-9

4. Marketing Information System A system that meets the marketing information needs of an organization. • • Customer-oriented and work toward achieving the strategic sales and marketing plan • Aim is to gain instantaneous access to global market information • Primary goal of retaining existing customers and attracting new ones • Can't be standardized for all companies. Every company has its own • Marketing system must be tailored to match the marketing policies, procedures and practices each company. of • A very popular marketing information system is one that automates sales and marketing functions. • Such systems capture valuable customer information and hence can improve productivity, enhance customer service and create better sales and marketing strategies. • Are influenced by and influence the strategic business plan and the strategic marketing plan.

5. Benefits of Marketing Information System Benefits of Marketing Information System Provides employees with information that helps companies capture niche markets in highly competitive Helps in sales forecasting. Able to provide demand forecast. Helps in achieving a company's goal. Marketing Information system have a deep and direct influence on the quality of customer service. Assists the marketing manager to maintain the better relationship with valuable customer.

6. Manufacturing Information System A system that supports the manufacturing functions of: • • • • • purchasing, receiving, quality control i n v e n t o r y m a n a g e m e n t , m a t e r i a l r e q u i r e m e n t p l a n n i n g , Production scheduling and plant design. Applies to both manufacturing and service industries capacity planning Manufacturing should be viewed within the broad context of delivering both goods and services since a manufacturer of automobile parts and a travel agency are likely to have manufacturing information system. Production system is a subset of manufacturing information system. Production system pertains to the production of goods and services. It specially addresses information needs relating to raw materials, equipment, manpower and other issues related to production of goods and services. • • •

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8. Benefits of Mfg. Information System • Helps supplier to store such as Home Depot Hardware. Reduces operating cost and inventory levels To achieve strategic goal of company and Ace • •

9. Financial and Accounting Information System (FAIS) • Provides information related to the accounting and financial activities an organization Includes a large number of subsystems that address the operational, tactical and strategic information needs of the business Includes some subsystems such as budgeting, cash and asset of • • management, capital budgeting, portfolio account receivable, inventory control and Other subsystems include record keeping, analysis, general ledger, payroll systems. account analysis, cash • management, financial analysis, leasing options, insurance underwriting, insurance claims processing and investment management. F i n a n c i a l i n s t i t u t i o n l ik e b an k , u s e s s pe ci a l i z e d F A I S , s u c h a s c o m m e r c i a l l o a n a n a l yz e r s , c r e d i t a ppr o va l s y s t e m , c o mm e r ci a l a c c o u n t r a t i n g s y s t e m , c r e d i t a p p l i c a t i o n s y s t e m , a u t o m a t e d t e l l e r c o n t r o l a n d s e c u r i t i e s t r a d i ng . •

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11. Human Resource Information System (HRIS) • Supports the planning, control, coordination, administration and management of an organization's human resources. HR I S includ e s a la r g e n u m b e r o f s u b s y s t e m s t h a t ad d ress t h e i n f o r m a t i o n needs of various human resource functions. They provide managers with information, policies and procedures concerning recruiting, layoffs, employee evaluation, promotion, termination,transfer , salary equity monitoring, job • • descriptions and responsibilities, training, affirmative action and employment opportunities. A n HR I S a lso d e t e r m i n e s h o w h ir i n g a nd t r a i n i n g decisi on s m a d e personnel department can increase sales revenues. equal • by the

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13. Developing Cross-functional System Today, the emphasis is on building cross-functional systems that facilitate the flow of information among all units in an organization. Some critics to develop a Cross-functional System are: 1. Decision-making should not be compartmentalized in functional areas, but should instead be viewed in the context of the entire organization 2. A c lo se l i n k i s m ad e in b e t w e e n i n f o r m a t i o n s y s t e m a nd f u n c t i o n a l s y s t e m . 3. System must be designed in such a way that it can work combinely with both the systems For example, a report of the number of people who worked overtime last month or the number of machines that operated during the night shift last month (manufacturing) are often the output of an MIS.

14. Use of Information Systems for competitive advantage

15. Use of Information Systems for competitive advantage

16. CASE STUDY

17. CASE STUDY Data analytics: For example, they use data analytics to track customer preferences and purchase history, allowing them to recommend products that are likely to be of interest to their customers. This has increased customer satisfaction and loyalty, providing a competitive advantage in the market. S upply chain optimization: By using real-time data analytics, Amazon is able to track inventory levels, optimize distribution, and reduce lead times. This has allowed them to serve customers more quickly and efficiently than their competitors, providing a unique value proposition in the market. Data analytics to track customer behavior: Amazon is able to anticipate customer needs and provide recommendations that are tailored to their interests. They also use technology such as chatbots and voice assistants to provide quick and efficient customer support, improving the customer experience and increasing loyalty.

18. CASE STUDY Data analytics:  For example, they use data analytics to monitor demand patterns and adjust pricing, ensuring that they have enough drivers on the road to meet rider demand while also maximizing revenue. They also use data analytics to track driver performance and feedback, ensuring that their drivers are providing a high level of service that meets their customer’s needs. Mobile Technology: By providing riders with access to real-time tracking and payment options, Uber has created a user-friendly and convenient platform that has made it easier for riders to book rides and pay for them. This has improved the customer experience and led to increased loyalty and retention.

19. CASE STUDY Data analytics: For example, they use data analytics to monitor which shows are being watched, how long viewers are watching for, and which shows are being recommended to them. This has enabled them to tailor their content offerings to the preferences of their customers, increasing customer satisfaction and loyalty. Technology: By providing a seamless viewing experience across multiple devices, Netflix has created a user-friendly and convenient platform that has made it easier for viewers to access their content. They also use technology such as predictive algorithms and advanced analytics to ensure that their content is engaging and relevant to their viewers. Supply chain management and real time Data analytics :  Netflix has used information systems to optimize their supply chain, reducing costs and providing a competitive advantage in the market. By using real-time analytics, Netflix is able to track viewer behavior and optimize their content production and delivery processes, reducing wait times and improving customer satisfaction.

20. CASE STUDY Data analytics: Zara’s supply chain management strategy is the core of its business model. The company has been able to create a fast and responsive supply chain by using an innovative information system. The information system is used to track the inventory levels of each store in real time. This allows the company to quickly identify which products are selling and which products are not. The information system also helps the company to quickly respond to changes in customer demand Technology: One of the key advantages of the information system used by Zara is that it allows the company to get new products to market faster than its competitors. The company is able to design, manufacture, and deliver new products to stores within two weeks. This is a fraction of the time it takes for other retailers to get new products to market. The information system used by Zara allows the company to respond quickly to changes in customer preferences and to deliver products that meet those preferences.

21. CASE STUDY Another advantage of Zara’s information system is that it allows the company to reduce waste and inventory costs. The company only produces products that it knows will sell. This allows the company to keep its inventory levels low, which reduces the amount of money tied up in inventory. The information system also allows the company to quickly identify products that are not selling and to make adjustments to its production and distribution strategies accordingly.

22. CASE STUDY One of the key advantages of Tesla’s information systems is its use of data analytics. The company collects vast amounts of data from its vehicles and uses machine learning algorithms to analyze the data. This allows Tesla to identify patterns and insights that can help improve its vehicles and services. Tesla uses this information to continuously improve the performance and efficiency of its vehicles, which gives the company a competitive advantage in the electric vehicle industry. Another advantage of Tesla’s information systems is its use of a centralized software platform. Tesla’s vehicles are connected to a centralized software platform that allows the company to remotely update and improve the features and performance of its vehicles. This means that Tesla’s vehicles are always up to date with the latest software improvements and enhancements, giving the company a competitive advantage in the constantly evolving electric vehicle market.

23. CASE STUDY Tesla is also using information systems to create a unique customer experience. Tesla’s mobile app allows customers to remotely control and monitor their vehicles. This includes features such as remotely starting the vehicle, adjusting the temperature, and monitoring the vehicle’s location and charging status. This provides customers with an enhanced level of convenience and control over their vehicles, which helps to differentiate Tesla from its competitors.

24. 12- 25 Why Information Systems Are Vulnerable Increased Access to the System Key sources of security breaches are employees, authorized external users such as suppliers, and crackers outside the business Increased System Complexity Information systems today are much more complex than systems even a few years ago the software has many more functions and features and the hardware has integrated components, all of which must work together to provide overall system security each operating system has its own security features, so switching to a new operating system can throw previous security measures into disarray

25. 12- 26 Why Information Systems Are Vulnerable (cont.) Cyber Terrorism on the Internet The Internet is a haven for those engaging in security misdeeds The Internet connects two million host computers and provides access to a rich and extensive set of data and information to millions of users, with the numbers increasing by 15 percent every month Networks Are the Weakest Link in the Chain “Networks are essentially sieves to anyone with minor technical skills, and the desire to retrieve other peoples’ information”