Download Information Systems in Organizations: Leaner, Flexible, and Networked Operations and more Exercises Business Fundamentals in PDF only on Docsity! Introduction to Business –MGT 211 VU Lecture 42 APPLICATION OF INFORMATION SYSTEM IN THE ORGANIZATION New Options for Organizational Design: The Networked Enterprise i. Leaner Organizations—Networked firms can accomplish more work with fewer resources. ii. More Flexible Operations—Electronic networks allow businesses to offer customers greater variety and faster delivery cycles. 1. Mass‐customization—Flexible production process that generates customized products in high volumes at low cost iii. Increased Collaboration: Networked systems make it cheaper and easier to work together. 1. Networking and the Virtual Company: Networked systems can also improve collaboration between organizations through the so‐called virtual company iv. Greater Independence of Company and Workplace: Employees no longer need to work only at the office or the factory, nor are all the company’s operations performed at one location. Geographically separate processes can be tightly coordinated via networking. v. Improved Management Processes: Because instantaneous information is accessible in a convenient usable format, more upper managers use it routinely for planning, leading, directing, and controlling operations. Enterprise Resource Planning (ERP) A system that helps the organization in planning its resources using computerized system. Resources can be: • Financial resources • Administrative resources Types of Information Systems Organizations depend on quality information to make good decisions and help them accomplish their goals. To design and develop good information systems, companies hire a © Copyright Virtual University of Pakistan 180 docsity.com Introduction to Business –MGT 211 VU top‐level manager known as a CIO. A Chief Information Officer (CIO) is a strategic‐level manager who oversees the company’s information systems. Types & levels of Information Systems in any organization can be: • Information system for top management. • Information system for middle management. • Information system for lower management. Information system for Departments Separate information system is designed for every department while keeping in view demands & requirements of each department. Knowledge Workers An increasingly important group of employees who use information and knowledge as the raw materials of their work, and who rely on technology to design new products or business systems (e.g. engineers, scientists, computer programmers, etc.). Considerations of Users for Information System Managers at Different Levels: First‐line managers need information on the day‐to‐day details of their departments or projects. Middle managers need summaries and analyses for setting intermediate and long‐range goals for their departments or projects. And top managers need information on broader economic and business trends, and overall company performance. Functional Areas and Business Processes: Each business area (e.g. marketing, finance) has its own information requirements, and each business process (e.g. strategic planning, product development) also has specific information needs. Management Information System (MIS) A system which helps management in decision making MIS provides information regarding decision making of management. Decision Support System (DSS) A system which supports the decision of the management is called Decision support system. Pool of information is gathered after various internal & external researchers and this system provides a proper form to make this information functional for decision making. © Copyright Virtual University of Pakistan 181 docsity.com