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Chapter 6 Organizational Information Systems. Information Systems Today. Chapter 6 Objectives. Understand characteristics of operational, managerial, and executive information systems
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Chapter 6OrganizationalInformation Systems Information Systems Today
Chapter 6 Objectives • Understand characteristics of operational, managerial, and executive information systems • Understand characteristics of transaction processing systems, management information systems, and executive information systems • Understand characteristics of information systems that span organizational boundaries
Decision-Making Levels of an Organization • Executive level (top) • Long-term decisions • Unstructured decisions • Managerial level (middle) • Decisions covering weeks and months • Semistructured decisions • Operational level (bottom) • Day-to-day decisions • Structured decisions
Different Kinds of Systems Operational-level system Monitor elementary activities and daily transactions of the organization Management-level system support the monitoring, controlling, decision-making and administrative activities of middle managers Strategic-level system support the long-range planning activities of senior management
1. Transaction Processing System (TPS) Computerized systems that perform and record the daily routine transactions
…TPS Goal to automate repetitive information processing activities • Increase speed • Increase accuracy • Greater efficiency
…TPS • Source documents can be processed: • As they are created Online processing • Or, in batches Batch processing: • Information can be entered into TPS as: • Manual data entry: by a person • Semi-automated data entry: person will entered, whereas the system will scanned check out the information, then continue the process automatically • Fully automated data entry: doesn’t require any human intervention
Examples of TPS • Payroll • Sales and ordering • Inventory • Purchasing, receiving, shipping • Accounts payable and receivable
2. Management Information System (MIS) • It serves functions of planning, controlling and decision making by providing routine summary and exception reports
…MIS Reports • Scheduled report • Key-indicator report • Exception report • Drill-down report • Ad hoc report
3. Executive Support Systems (ESS) • Information System at the organization’s strategic level designed to address unstructured decision making through advanced graphics and communications
…EIS examples • Executive-level decision making • Long-range and strategic planning • Monitoring internal and external events • Crisis management • Staffing and labor relations
4. Decision Support System (DSS) • Information System that Serves management level of the organization • Combines data and sophisticated analytical models or data analysis tools to support semi-structured and unstructured decision making • It is user-friendly, so the user can change assumptions, ask new question and include new data
…DSS • Designed to support organizational decision making • “What-if” analysis • Example of a DSS tool: Microsoft Excel • Text and graphs • Models for each of the functional areas • Accounting, finance, personnel, etc.
Expert systems • Mimics human expertise by manipulating knowledge • Rules (If-then) • Inferencing
Office Automation SystemsOAS • Communicating and scheduling • Document preparation • Analyzing data • Consolidating information
Collaborative Technologies • Virtual teams • Videoconferencing • Groupware • Electronic Meeting Systems (EMSs)
Functional Area IS • Geared toward specific areas in the company: • Human Resources • Benefits • Marketing
Global IS • International IS • Transnational IS • Multinational IS • Global IS