The System Approach

The system approach to problem solving uses a systems

orientation to define problems and opportunities and develop
solutions. Studying a problem and formulating a solution
involve the following interrelated activities
3. Recognize and define a problem or opportunity using systems
thinking.
4. Develop and evaluate alternative system solutions.
5. Select the system solution that best meets your requirements.
6. Designing the Selected system solution.
7. Implement and evaluate success of the designed system.
Information Technology can help Reengineer Business Process

Old Rule : Field personnel need offices

where they can receive, store, retrieve, and
transmit information.
Information technology : Internet/ Intranet
Web sites and portable computers.
New Rule : Field personnel can send and
receive information wherever they are.
 • Recognize and define a
Define
The Problem problem or opportunity using
systems thinking.

Develop • Develop and evaluate alternative

Alternative system solutions.
Solutions
Monitor and Evaluate Results

• Select the system solution that best

Select
The Solution meets your requirements.

• Designing the Selected system

Design solution.
The Solution

• Implement and evaluate success

Implement the
Solution of the designed system.
 Major Categories of MIS

Operations support systems process data generated by business operations.

Major categories are :

• Transaction processing systems process data resulting from business transactions,

update operational databases, and produce business documents.

• Process control systems monitor and control industrial processes.

• Enterprise collaboration systems support team, workgroup, and enterprise
communications and collaboration.

End Users – anyone else who uses information system.

 Major Categories of MIS

Management support systems provide information and support needed for

effective decision making by managers.
Major categories are:

• Management information systems provide information in the

form of pre defined reports to managers.

• Decision support systems provide interactive ad hoc support for

decision-making process of managers.

• Excusive information systems provide critical information

tailored to the information needs of executives.
Other categories of information systems can support either operations,
management, or strategic applications.

Major categories are :

• Expert systems are knowledge-based systems that provide expert

advice and act as an expert consultants or users.

• Knowledge management systems are knowledge-based systems that

support the creation, organization, and dissemination of business
knowledge within the enterprise.

• Strategic information systems provide a firm with strategic products,

services, and capabilities for competitive advantage.

• Business information systems support the operational and managerial

applications of the basic business functions of firms.
 Information Systems

Top

Support of
Strategic
Advantage

Middle Support of Managerial

Decision Making

Lower
Support of Business Operations

The Three major roles of information systems provide an organization

with support for business operations, managerial decision making, and
strategic advantage.
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Communications Media and Network Support

Network Resources
 Components of MIS
People Resources
systems analysts, programmers, computer operators.
End Users – anyone Specialists –else who uses information system.
Hardware Resources
Machines- computers, video monitors, magnetic disk drives, printers, optical scanners.
Media – Floppy disks, magnetic tape, optical disks, plastic cards, paper forms.
Software Resources
Programs-Operating system programs, spreadsheet programs, word processing programs payroll
Programs Procedures-data entry procedures, error correction procedures, paycheck distribution
procedures.

Data Resources
Product descriptions, customer records, employee files, inventory database.
Network Resources
Communications media, communications processors, network access and control software.
Information Products
Management reports and business documents using text and graphics displays, audio
responses, and paper forms.
 Conceptual Overview Of Information Systems

Information System

Supports of
Support of
Operations Supports Managerial
business Management Support
Systems Decision
Operations Systems
Making

Transaction Enterprise Management Decision Executive

Process Control
Processing Collaboration Information Support Information
Systems
System Systems Systems Systems Systems

Processing Control of Team and Pre specified Interactive Information

Business Industrial Workgroup Reporting Decision Tailored for
Transactions Processes Collaboration For Support Executives
Managers
Transaction Processing System & Transaction Documents

Sales
Accounting Transaction
Purchasing
Processing

Inventory
Materials Work in Control
Planning Progress

 Purchase Orders  Work Orders  Sales Orders

Receiving Notice  Inventory Tags  Shipping Notices
 Supplier Invoices  Employee Time Cards  Customer Invoices
Payment to suppliers  Employee Paychecks  Customer Payments
 Etc.  Etc.  Etc.
 Variety Of Information Technologies to Support the
Collaboration of Teams & Work Groups

Same Place Face – to- Face Meeting Teams in Place

 Electronic copy boards  Team room tools

 Electronic decision room tools  Shift work group
 Team – building tools Platforms
 The Internet
 Intranets
 Extranets
Ongoing Coordination
 Other Networks

Different Place Cross- Distance Meeting

• Voice mail
• Audio conferencing
• Electronic mail
•Desktop videoconferencing
•Group-editing
• Screen Sharing
• Project managers/schedulers
•Teleconferencing
• work flow systems
 The Internet
Company

Suppliers and Other Boundary

Business Partners
Extranets

Procurement,distribution, and logistics

Manufacturing Accounting,
Engineering and Production finance, and
and research management

Advertising Sales Customer

Extranets Consumer and Business

Customers
 Corporate Intranet Supports Enterprise Collaboration

Marketing
 Product Positioning Finance
Competitive Analysis  Quarterly Report
Current Projects Annual Report
Corporate Home Page Stockholders Meeting
 Message of the Day
Company Newsletter
Financial Update
Intranet Links
Internet Links Sales
Human Resources Competitive Analysis
 Travel Policies Current Sales
Benefits Profiles Customer info
Training Programs

Customer Info
Manufacturing  Recent Wins
Training  Total Quality Management Customer Visits
 Courses Available Product Schedule Customer Feedback
Class Registration Engineering
Training Profiles
 Information Technology can help Reengineer Business Process

Old Rule : Managers Make all decisions

Information technology : Decision

Support Tools (Database access, Modeling
software)

New Rule : Decision Making is part of

everyone’s job.
Information Technology can help Reengineer Business Process

Old Rule : Only experts can perform

complex work.
Information technology : Expert systems

New Rule : A generalist can do the work

of an expert.
 Information Technology can help Reengineer Business
Process

•Old Rule : Information can appear in only

one place at one time.
Information technology : Shared databases
via the Internet, intranet, and extranets.

•New Rule : Information can appear

simultaneously in as many places as
needed.
 IT Reengineered Business Process at Different Levels

IT Initiative Process Changed Business Benefit

Salesperson Laptop Sales Sales Increased

Call System Call Sales

Marketing Team Web Site Product Product Greater Customer

Database Distribution Satisfaction

Business Unit Product Marketing Improved

Management Channel Competitive
System Communication Position
 Use of IT to Support Competitive Strategies

Customers Supplers

Salesperson Attract new customers & Lock in Suppliers by creating

lock in present customers switching costs
by creating switching cost

Cost Offer Lower Prices Help Supplier lower costs

Leadership
Strategy

Differentiation Provide better quality, Help Supplier improve service

features, and service

Innovation Provide new products and Develop Unique supply services or

Strategy services to
 Use of IT to Support Competitive Strategies
Competitors New Entrants

Salesperson Lockout Competitors by Create Barriers to entry into the

locking in cust0omers and industry
supplier

Cost Leadership Undercut Competitors price Make Entry Investment unattractive

Strategy

Differentiation Toughen competition with Complicate entry

unique features

Innovation Strategy Provide unmatched product Enter business of potential entrants

and services
 Use of IT to Support Competitive Strategies

Substitute

Salesperson Make Substitution unattractive

Cost Leadership Strategy Make substitution Economically

unfeasible

Differentiation Provide features of

substitutes

Innovation Strategy Produce substitutes

 Use of IT to Support Competitive Strategies

Customers Suppliers Competitors New Entrants Substitute

Salesperson Attract new Lock in Lockout Create Barriers Make

Customers and Suppliers by Competitors by to entry into the Substitution
Lock in present creating locking in industry unattractive
Customers by switching cust0omers and
creating costs supplier
Switching cost

Cost Offer Lower Help Undercut Make Entry Make substitution

Leadership Prices Suppliers Competitors price Investment Economically
Strategy Lower costs unattractive unfeasible

Differentiation Provide better Help Toughen Complicate entry Provide

quality, features, Suppliers competition with decision features of
and service improve unique features substitutes
service

Innovation Provide new Develop Provide unmatched Enter business Produce

Strategy products and Unique supply product and of potential substitutes
services to services or services entrants