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

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

Functional Information Systems
•
Information system can be classified in these 4 areas:
•
•
•
•
Marketing
Manufacturing and service
Accounting and finance
Human resources
2-9

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.

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.

Manufacturing Information System
A system that supports the manufacturing functions of:
•
•
•
•
•
purchasing, receiving, quality control
inventory management, material requirement
planning,
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.
•
•
•

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
•
•

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.
Financial instit ut ion like bank, uses specialized FAIS, such as commercial
loan analyzers, credit approval system, commercial account rating
system, credit applicat ion system, automated teller cont rol and
securit ies trading.
•

Human Resource Information System (HRIS)
• Supports the planning, control, coordination, administration and
management of an organization's human resources.
HRIS includes a large number of subsystems that address the
informat ion
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.
An HRIS also determines how hiring and training decisions
made
personnel department can increase sales revenues.
equal
• by the

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 close link is made in between information system and functional system.
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.

Use of Information
Systems for competitive
advantage

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.
• Supply 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.

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.

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.

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.

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.

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.

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.

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

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”

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

More Related Content

Similar to MIS and Business Functions TPS/DSS/ESS, MIS and Business Processes Impact of MIS on Business Using Information Systems for Competitive Advantage (20)

More from ShivaniTiwari24572 (10)

Recently uploaded (20)

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

Editor's Notes