Chapter 10 information systems within the organization. This chapter presents the following content: Explain the purpose of transaction processing systems, explain the types of support that information systems can provide for each functional area of the organization, identify advantages and drawbacks to businesses implementing an enterprise resource planning system. | INFORMATION SYSTEMS Supporting and Transforming Business Fourth Canadian Edition RAINER • PRINCE • SPLETTSTOESSER • SÁNCHEZ-RODRÍGUEZ CHAPTER 10 Information Systems within the Organization CHAPTER OVERVIEW • • • • Transaction Processing Systems Functional Area Information Systems Enterprise Resource Planning Systems ERP Support for Business Processes 1 LEARNING OBJECTIVES 1. Explain the purposes of transaction processing systems. 2. Describe the types of support that information systems can provide for each functional area of the organization. 3. Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system. 4. Describe the three main business processes supported by ERP systems. OPENING CASE: GM TRANSFORMS ITS IT STRATEGY The Problem • GM had data that was separated by brands then further subdivided by vehicle models (. not integrated) • The company was accused of being too slow to recall Chevy Cobalts with ignition problems; resulting accidents were linked to deaths • Lack of integrated data could have been one of the causes of the slowness of the recall OPENING CASE: GM TRANSFORMS ITS IT STRATEGY The IT Solution • By mid-2014 GM had implemented a data warehouse with more than one petabyte of production process data • GM can now access data in detail all the way down to VIN (vehicle identification number) or aggregate the data • 55 of 200data marts had been consolidated at the time of writing of the case, improving data integration and the consolidation process is continuing 2 OPENING CASE: GM TRANSFORMS ITS IT STRATEGY The Results • GM apologized for the slowness of the recall • IT changes are improving efficiency and customer service • It is too early to tell what the impact will be on the timeliness of future vehicle recalls OPENING CASE: GM TRANSFORMS ITS IT STRATEGY Questions 1. Take the “pros” side and discuss GM’s strategy of bringing IT .
