Helwan University
Business Information System Program
Chapter2: Management
Information Systems: An Overview
Part 1
Contents
1. Understand the Perspectives of Information
Systems
2. Present Different Type of Information Systems
3. Discuss Management Information Systems Role
in Business
4. Discuss Management Information Systems
Components, Functions, and Processes
5. Explain the role of blockchain in IS
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2.2.1.1 Types of Enterprise Information
Systems
• There are many types of enterprise information
systems in practice.
• An enterprise resource planning (ERP) system
is an information system that supports the
main business processes of an organization;
• for example, human resource management,
sales, marketing, management, financial
accounting, controlling, and logistics(figure 2.6).
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2.2.1.1 Types of Enterprise
Information Systems
• In the past, each business process was encapsulated
in a separate information system.
• As most of these business processes use related
data, much redundant data had to be stored within
the respective information systems.
• The increasing number and complexity of
information systems forced organizations to spend
much effort in synchronizing the data of all
information systems.
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2.2.1.1 Types of Enterprise
Information Systems
An ERP system is a solution to overcome these
synchronization efforts by integrating different information
systems.
ERP is a software system that is built on a distributed
computing platform including one or more database
management systems.
First-generation ERP systems now run the complete back-
office functions of the world’s largest corporations.
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Management Reporting System
• A management reporting system is a database designed to
report on the finances and operations of all levels of
management in an organization.
• A company's management reporting system is
commonly used by middle managers to generate regular
reports comparing current and past financial
performance
• Upper management uses the data generated by the
reporting system to compare the company's current
financial position and its efficiency of operations against
its predetermined goals for the company.
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Sales and Marketing
A sales and marketing system supports management in executing
and tracking the effectiveness of the organization's sales and
marketing functions. These include:
▪ developing products
▪ forecasting sales
▪ compiling and tracking the advertising outlets and schedules
▪ managing distribution channels
▪ pricing, discounts, and promotions
▪ implementing effective advertising and sales promotions
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Inventory Control
• The inventory control system tracks everything having to
do with inventory, including sales, spoilage (damage), theft,
and inventory on hand,
• which allows management to determine when individual
items are getting low and need restocking, either in the
company's warehouse or in any of its individual retail
locations.
• It tracks movement of inventory into the warehouse, from
warehouse to store, store sales and returns.
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Human Resources
A human resources information management system supports the daily
management and tracking of employees and recruiting.
• These systems track some financial elements of human resources that
overlap the accounting and finance system such as payroll, benefits, and
retirement,
• It can streamline communication between employees and HR by
providing an electronic hub for HR policies, legal compliance notices
and mandatory training events.
• It can automate employee timekeeping, track work attendance, calculate
available and used leave and let employees request vacation or sick
leave, all without a manager's physical involvement.
• The recruiting function is also automated through the human resources
management system through resume collection and analysis for
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Office Automation
• An office automation, or enterprise collaboration,
information management system enables managers to
control the flow of information throughout the
organization.
• Any electronic communication device or medium used in
the organization by managers to communicate with other
managers, with their employees, or for employees to
communicate with each other falls under the umbrella of
the office automation information system.
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Procurement Systems
• A procurement system is an information system
that helps an organization automate the purchasing
process.
• The aim of a procurement system is to acquire
what is needed to keep the business processes
running at minimal cost.
• The key point is to order the right amount of material
at the right time from the right source.
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Delivery Systems
• A delivery system is an information system
that supports the delivery of goods to
customers.
• The task of these systems is to plan and
schedule when and in what order
customers receive their products.
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Product Design Systems
• Information systems not only support the production of
products, but they also support the design of products.
• Examples are computer-aided design (CAD) systems and
product data management (PDM) systems.
• CAD systems support the graphical representation and the
design of product specifications.
• PDM systems support the design process in a broader
sense by managing designs and their documentation.
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Business Intelligence Systems
BI (Business Intelligence) is a set of
• processes,
• architectures,
• and technologies
that convert raw data into meaningful information that
drives profitable business actions.
It is a suite of software and services to transform data
into actionable intelligence and knowledge.
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How are Business Intelligence
systems implemented?
Step 1) Raw Data from corporate databases is
extracted. The data could be spread across multiple
systems heterogeneous systems.
Step 2) The data is cleaned and transformed into the
data warehouse. The table can be linked, and data
cubes are formed.
Step 3) Using BI system the user can ask quires,
request ad-hoc reports or conduct any other analysis.
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Examples of Business Intelligence
System used in Practice
Example 1as seen in figure 2.7 :
1-In an Online Transaction Processing (OLTP) system Information that could be fed into product
database could be
▪ add a product line.
▪ change a product price.
Correspondingly, in a Business Intelligence system query that would be executed for the product subject
area could be did the addition of new product line or change in product price increase revenues.
2-In an advertising database of OLTP system query that could be executed
▪ Changed in advertisement options.
▪ Increase radio budget.
Correspondingly, in BI system query that could be executed would be how many new clients added due to
change in radio budget.
3-In OLTP system dealing with customer demographic databases data that could be fed would be
▪ increase customer credit limit.
▪ change in customer salary level.
Correspondingly, in the OLAP system query that could be executed would be can customer profile changes
support higher product price
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Example 2:
A bank gives branch managers access to BI
applications.
• It helps branch manager to determine who the
most profitable customers.
• The use of BI tools frees information technology
staff from the task of generating analytical
reports for the departments.
• It also gives department personnel access to a
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Accounting and Finance
An accounting and finance system tracks an organization's assets and investments
and compiles all data for financial reporting required by law for such functions as
payroll, federal, state, , funds and local taxes.
This system provides all the reports necessary for periodic financial audits and
annual reports if the organization or institution produces them.
The accounting and finance system also facilitates the daily posting of routine
transactions such as sales income, returns and bank deposits and transfers.
These statements are necessary for middle and upper managers to track current
financial success against past performance and against predetermined goals for
future growth.
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End of Lecture
Thank you
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