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Chapter 6 Organizational Information Systems www.prenhall.com/jessup. Learning Objectives. Describe the characteristics that differentiate the operational, managerial, and executive levels of an organization
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Chapter 6 Organizational Information Systems www.prenhall.com/jessup
Learning Objectives • Describe the characteristics that differentiate the operational, managerial, and executive levels of an organization • Explain the characteristics of the three information systems designed to support each unique level of an organization: transaction processing systems, management information systems, and executive information systems
Learning Objectives 3. Describe the characteristics of six information systems that span the organizational, managerial, and executive levels: decision support systems, expert systems, office automation systems, collaboration technologies, functional area information systems, and global information systems
Levels of the Organization Explained Executive Level Strategic planning and responses to strategic issues occur here. Executive decisions are usually unstructured and are made using information consolidatedinternal and external information Managerial Level Monitoring and controlling of operational activities and executive information support occur here. Managerial decisions are usually semistructured andare made using procedures and ad hoc tools Operational Level Day-to-day business processes and interactions with customers occur here. Operational decisions are usually structured and are made using established policies and procedures
System Description: Transaction Processing Systems TPSs are a special class of information systems designed to process business events and transactions • Architecture Components • Source Documents – these contain the event or transaction information to be processed by system • Data Entry Methods • Manual – a person entering a source document by hand • Semiautomated – using a capture device to enter the source document (e.g. a barcode scanner) • Fully Automated – no human intervention, one computer talks or feeds another computer (e.g. automatic orders from inventory systems) • Processing – transactions can be either: • Online – processed individually in real-time • Batch – grouped and processed together at a later time
System Description: Management Information Systems • MISs are used by managerial employees to support recurring decision making in managing a function or the entire business • Supported Activities • Scheduled Reporting - the system produces automatically based on a predetermined schedule. Some include: • Key Indicator – High-level summaries to monitor performance (e.g. Monthly Sales Report) • Exception – Highlights situations where data is out of normal range (e.g. Monthly Late Shipments) • Drill Down – Provides lower level detail aggregated in a summary report (printed only if needed) • Ad Hoc Reporting – unscheduled reports that are usually custom built to answer a specific question (e.g. sales data by person report to identify issues)
System Description: Executive Information Systems • EISs, also called Executive Support Systems (ESS), are special purpose information systems to support executive decision-making • System Details • These systems use graphical user interfaces to display consolidated information and can deliver both: • Soft Data - textual news stories or non-analytical data • Hard Data – facts, numbers, calculations, etc. • Supported Activities • The activities supported by these kinds of systems include: • Executive Decision Making • Long-range Strategic Planning • Monitoring of Internal and External Events • Crisis Management • Staffing and Labor Relations
System Example: Executive Reporting Drill-down (EIS) Second Level Data Drill Down First Level Graphical Summary
System Description: Decision Support Systems Decision Support Systems Special-purpose information systems designed to support managerial-level employees in organizational decision making System Details These systems use computational software to construct models for analysis (most common MS Excel) to solve semi-structured problems (e.g. sales or resource forecasts) Supported Activities: “What-if”analysis – changing one or more variables in the model to observe the resulting effect (e.g. what is the payment if the interest rate increases 1%)
System Example – Loan Calculator Variables to be Analyzed Loan Calculator Model Analysis Results
System Description: Expert Systems • Expert Systems • Special-purpose systems used by operational level employees to make decisions usually made by more experienced employees or an expert in the field • System Details • These systems use inference engines that match facts and rules, sequence questions for the user, draw a conclusion, and present the user a recommendation • Supported Activities: • These systems support many activities including: • Medical Diagnosis • Machine Configuration • Financial Planning • Software Application Assistance (help wizards)
System Description: Office Automation Systems • Office Automation Systems • A collection of software and hardware products that increase productivity within the office setting • Supported Activities • The activities supported by these kinds of systems include: • Scheduling Resources • Examples: electronic calendars with resource management (equipment, facilities, etc.) • Document Preparation • Examples: software (word processing and desktop publishing); hardware (printers) • Communicating • Examples: e-mail, voice mail, videoconferencing and groupware
System Description: Collaboration Technologies • Videoconferencing • Software and hardware the that allow parties to meet electronically with both picture and voice • Supported Activities • Stand-alone Videoconferencing • High quality, typically very expensive systems using dedicated microphones, cameras and hardware. • Can support meetings between several people and locations simultaneously • Desktop Videoconferencing • Lower quality, relatively inexpensive systems using a PC, small camera, and a microphone or telephone for voice communication • Allows two individuals to communicate from a desktop
System Description: Collaborative Techs (Groupware) • Groupware • Software that enables people to work together more effectively • Supported Activities • These systems come in two types: • Asynchronous Groupware – Systems that do not require users to be on the system working at the same time including: e-mail, newsgroups, workflow automation, group calendars, and collaborative writing tools • Synchronous Groupware – Systems that allow and support simultaneous group interactions including shared whiteboards, electronic meeting support systems, video communication systems
System Description: Functional Area Info Systems • Functional Area Information Systems • Cross-organizational information systems are designed to support a specific functional area • Supported Activities • The following functional organizations have systems to support their operational and managerial activities • Accounting • Finance • Human Resources • Marketing • Operations
System Description: Global Information Systems • Global Information Systems • A variety of special-class systems used to support organizations that operate globally • Supported Activities • Depending on the organization, one or more of these systems may be required (definitions on next slide): • International Accounting Systems • Transnational Information Systems • Multinational Information Systems • Global Information Systems • Collaborative Information Systems
