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Lecture 3

Lecture 3. To be covered. What are the types of Information System (IS) within an organization The role of each types of IS in organization DSS. Classification of Information Systems. Classification of Information Systems. Responsible for defining the long

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Lecture 3

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  1. Lecture 3

  2. To be covered • What are the types of Information System (IS) within an organization • The role of each types of IS in organization • DSS

  3. Classification of Information Systems

  4. Classification of Information Systems Responsible for defining the long term goals of the company, and how it intends to position itself within its particular industry. Decide on budgets, set targets, identify trends and develop short term plans for the business. Responsible for monitoring the transactions that are occurring, and dealing with any problems that may arise Attend to routine daily business transactions e.g. selling goods & issuing receipts for payment

  5. Transaction Processing Systems (TPS) For example, The itemized till slip (receipt) from the supermarket is produced by the TPS, and details of each individual item sold will be recorded in the store’s database.

  6. TPS Five Common Modules

  7. Management Information Systems (MIS) For example, An exception report for a bank manager might be the list of all transactions exceeding one million rand; or those bank departments who have exceeded their budget by more than 10%.

  8. MIS Continue

  9. Decision Support System(DSS) For example, look at the relative sales performance of different sales areas in the organization. To achieve this, they need to receive regular reports from the MIS with summary totals and comparison between prior months and years. Where summary figures are of concern, these managers may request more detailed reports from the operations personnel.

  10. DSS Special Requirements • In many cases problems arise and additional ‘ad hoc’ reports are needed, see example below:

  11. DSS Continue • The nature of management decision making is such that response time is often critical Issue In the past managers communicated their report requirements to programmers who coded the request and delivered the required output, or send their request to be extracted from the DB. • How to solve a problem of time critical nature, as one report may trigger the need for alternate investigations into other areas of the business??? In three Minutes and in a group of 4-5 people, Find a solution for such a problem!!

  12. DSS Continue • ANSWERS • User-driven DSS (allow managers to interact directly with the system and request the needed reports)

  13. DSS Steps • When information is required to support management decision making:

  14. Components of DSS

  15. DSS Model Base

  16. DSS Database This database contains current and historical data from all the relevant business applications • It makes good sense to maintain a database specifically for DSS queries. • WHY!!!

  17. Reasons to maintain a database specifically for DSS queries.

  18. Executive Information System(EIS) Decisions made by top-level executives are often too unstructured to be adequately supported by a DSS. In the past, much time was spent by top management wading through reports relating to the performance of strategic areas of the business. In order to reduce time for finding and integrating a few critical numbers from many different reports; EIS was developed

  19. Summary Characteristics of each level of management support

  20. Summary Characteristics of each level of management support

  21. Users of IS Application

  22. How does IS support Business Objectives?? • Increasing the efficiency of business processes • Cutting supply costs • Improving levels of customer service • Improving managerial decision-making

  23. The Support that Different Types of IS Provide to Business Objectives TPS MIS DSS EIS

  24. Done!!  • Thank you for listening • Any Questions??? • Refer to Book_1, Chapter (8), 8.3-(p.107-p.111) • Refer to Book_1, Ch.(1), p.(14-16)

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