Chapter 6 Organizational Information Systems

1. Chapter 6OrganizationalInformation Systems

2. 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

3. Types of Information Systems • An organization consists of many people with different interests, specialties, and levels. • How a single information system can provide all the information that an organization needs? • There is no such single information system. • An organization should have different info systems for different interests, specialties, and levels.

4. Decision-Making Levels of an Organization

5. 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

6. Basic systems model for all Info. Systems

7. General Types of Information Systems • Transaction Processing Systems (TPSs) • Transactions • Used at Operational level of the organization • Goal: to automate repetitive information processing activities • Increase speed • Increase accuracy • Greater efficiency

8. General Types of Information Systems • Transaction Processing Systems (TPSs) • Online processing • Batch processing • Data input • Manual data entry • Semiautomated data entry • Fully automated data entry

9. General Types of Information Systems • Transaction Processing Systems (TPSs) • Examples: • Payroll • Sales and ordering • Inventory • Purchasing, receiving, shipping • Accounts payable and receivable

10. General Types of Information Systems • Management Information Systems (MISs) • Two Types: • Management of IS in organizations • Specific information systems for mid-level managers • Used at managerial level of the organization

11. General Types of Information Systems Management Information System • It helps the middle managers with reports, with on-line access to the organization’s current performance and historical records. • It primarily serves the functions of planning, controlling, decision-making at the management level. • Generally it depends on TPS for data. • It summarizes and reports on the basic operations of the organization. • It usually serve managers interested in weekly, monthly, and yearly results, not day-to-day activities. • It generally addresses structured questions that are known in advance. • It is not flexible and have little analytical capability.

12. General Types of Information Systems Management Information System • What are the functions of management-level info system? • => Helps middle managers for monitoring, controlling, decision-making, and administrative activities. • => Generally it provides periodic reports rather than instant information • => However, some systems supports nonroutine decision making. • It should answer the questions: • => Relocation Control System: It reports on the total moving, house-hunting, and home financing costs for all employees in the organization. It will also notify if actual costs exceed the budgets. • => What would happen to our return on investment if an organization schedule were delayed for six months?

13. General Types of Information Systems • Management Information Systems • Types of reports: • Scheduled report • Key-indicator report • Exception report • Drill-down report • Ad hoc report

14. General Types of Information Systems • Management Information Systems (MISs) • Examples: • Sales forecasting • Financial management and forecasting • Manufacturing planning and scheduling • Inventory management and planning • Advertising and product pricing

15. General Types of Information Systems Executive Information Systems • It helps senior managers. • It addresses unstructured decisions. • It provides a generalized computing & telecommunications capability to solve problems. • It employs the most advanced graphics software. • It can deliver graphs & (historical data and competitive data) from internal corporate systems and external databases. • Senior managers often have little experience with computer-based information systems, ESS should have easy-to-use graphic interfaces.

16. General Types of Information Systems • Executive Information Systems (EISs) • Used at executive level of the organization • Highly aggregated form • Data types • Soft data – news and nonanalytical data • Hard data – facts and numbers

17. General Types of Information Systems • Executive Information Systems (EISs) • Examples: • Executive-level decision making • Long-range and strategic planning • Monitoring internal and external events • Crisis management • Staffing and labor relations

18. Information Systems that Span Organizational Boundaries

19. Information Systems that Span Organizational Boundaries • Decision Support Systems (DSSs) • 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.

20. Information Systems that Span Organizational Boundaries • Expert Systems (ESs) • Mimics human expertise by manipulating knowledge • Rules (If-then) • Inferencing

21. Information Systems that Span Organizational Boundaries • Office Automation Systems (OASs) • Examples: • Communicating and scheduling • Document preparation • Analyzing data • Consolidating information

22. Relationship of Systems to one another: Integration ESS MIS DSS OAS TPS

23. Information Systems that Span Organizational Boundaries • Collaboration Technologies • Virtual teams • Videoconferencing • Groupware • Electronic Meeting Systems (EMSs)

24. Information Systems that Span Organizational Boundaries • Functional Area Information Systems • Geared toward specific areas in the company: • Human Resources • Benefits • Marketing

26. Information Systems that Span Organizational Boundaries • Global Information Systems • International IS • Transnational IS • Multinational IS • Global IS