1. TYPES OF
INFORMATION
SYSTEMS

2. © 2008 Pearson Prentice Hall --- Introduction to Operations and
Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
0131791036
Chapter
3, Slide 2
Review Mapping Symbols
Typical, but others may be used as appropriate
Start or finishing point
Step or activity in the process
Decision point (typically requires a “yes” or “no”)
Input or output (typically data or materials)
Document created
Delay
Inspection
Move activity

3. Our Flow Chart Example
© 2008 Pearson Prentice Hall --- Introduction to Operations and
Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
0131791036
Chapter
3, Slide 3
Dealer
Faxes
Order
Paper
Order
Created
Order Sits
In Fax
In Box
Internal Mail
Delivers Fax
Order Sits
In Clerk’s
In Box
Clerk
Processes
Order
Is Item
In Stock?
Worker
Picks
Order
Clerk Notifies
Dealer and
Passes Order
On to Plant
Inspector
Checks
Order
Transport Firm
Delivers Order
Dealer
Receives
Order
2 minutes
0.5% of orders incorrect1 to 3 hours
2 hours on average
No history of lost,
damaged, or incorrect
deliveries
YES
NO
10 to 45 minutes
20 minutes on average
0 to 2 hours
1 hour on average0.5 to 1.5 hours
1 hour on average
1% of orders lost
0 to 4 hours
2 hours on average
4% of
orders lost
5 minutes

4. Improving Business Processes:
Guidelines
© 2008 Pearson Prentice Hall --- Introduction to Operations and
Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
0131791036
Chapter
3, Slide 4
 Attack each delay
 What causes it?
 How long is it?
 How could we reduce its impact?
 Examine each decision point
 Is this a real decision or just a checking activity?
 If the latter, can we automate or eliminate it?
 Dematerialize documentation.
 Can we do it electronically?
 Eliminate multiple copies?
 Share a common database?

5. More Guidelines
© 2008 Pearson Prentice Hall --- Introduction to Operations and
Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
0131791036
Chapter
3, Slide 5
 Look for loops
 Why is this loop here?
 Would we need to loop if we didn’t have any failures in
quality, planning, etc?
 Process steps
 What is the value of this activity, relative to its cost?
 Is this a necessary activity (support or
developmental?), or something else?

6. Taking It Further ...
© 2008 Pearson Prentice Hall --- Introduction to Operations and
Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
0131791036
Chapter
3, Slide 6
 All activities add costs and time
 Not all value-added activities provide “net”
value
 “Underperformers”
 Not all support and developmental activities
are necessary
 Necessary versus “symptomatic”

7. From Recording Transactions to
Providing Expertise: Types of
Information Systems
 Many types of information systems
 Capabilities of applications have been
combined and merged
 Management Information System: supports
planning, control, and making decisions

8. Transaction Processing Systems
 Most widely used type of system
 Records data collected at point where
organisation interacts with other parties
 Encompasses cash registers, ATMs and
purchase order systems

9. Supply Chain Management
Systems
 Supply chain: sequence of activities involved
in producing and delivering products
 Activities include marketing, purchasing raw
materials, manufacturing, shipping, billing,
collection, and after-sale services
 Also known as enterprise resource planning
(ERP) systems

10. Customer Relationship
Management Systems
 Customer relationship management:
managing relations with customers
 Used in combination with telephones to provide
customer service
 Often linked to Web applications that track online
transactions

11. Business Intelligence Systems
 Business Intelligence: gather data to help
organisation compete
 Often contains statistical models
 Access large pools of data
 Data warehouse: large database that usually
store transactional records

12. Decision Support and Expert
Systems
 Decision support system: supports decision-
making
 Relies on models to produce tables
 Extrapolates data to predict outcomes
 Expert system: supports knowledge-intensive
decision-making
 Uses artificial intelligence

13. Geographic Information
Systems
 Geographic information system: ties data
to physical locations
 Represents data on a map in different
formats
 May reflect demographic information in
addition to geographic
 May use information from GPS satellites

14. Geographic Information Systems
(continued)

15. Information Systems in Business
Functions
 Functional business area: services within a
company that support main business
 Includes accounting, finance, marketing, and
human resources
 Part of a larger enterprise system

16. Accounting
 Information systems help record transactions
 Produce periodic statements
 Create required reports for legal compliance
 Create supplemental reports for managers

17. Finance
 Finance systems facilitate financial planning
and business transactions
 Tasks include organising budgets, managing
cash flow, analysing investments, and making
decisions

18. Marketing
 Pinpoint likely customers and promote
products
 Marketing information systems analyse
demand for products in regions and
demographic groups
 Identify trends in demand for products/services
 Web provides opportunity to collect marketing
data

19. Human Resources
 Human resource management systems aid
record-keeping
 Must keep accurate records
 Aids recruiting, selection, placement, and reward
analysis
 Performance evaluation systems provide
grading utilities

20. Web Empowered Enterprises
 E-commerce: Buying and selling goods and
services through Internet
 Internet is a vast network of computers
connected globally
 Web has a profound impact on information
systems

21. Self-Check
 Enumerate the types of Information Systems
 Identify the 4 functions in business information
systems

22. Activity
 Identify other existing departments in your
organization (Accounting, Finance, Human
Resources, Marketing, etc.)
 Construct the flow chart
 Identify delays in the process
 Recommend needed information systems