Organizational Information Systems

1. Organizational Information Systems

2. Fire your Customer What do Managers Do? • They make decisions • Better decisions = better managers • The amount of information people must understand to make decisions, solve problems, and find opportunities is growing exponentially

3. Programmed Versus Nonprogrammed Decisions • Programmed decisions • Decisions made using a rule, procedure, or quantitative method • Easy to computerize using traditional information systems • Non-programmed decisions • Decision that deals with unusual or exceptional situations • Not easily quantifiable

4. Types of decisions • Structured • How many workers to staff line A • What is the EOQ for raw material Z • How many turbines to power Lethbridge? • Unstructured • What are the benefits of merging with XYZ • How will consumer react if we lower the price by 10% • What are the benefits of MacDonald's opening up Hotels

5. Levels of the Organization

6. Who, What, Why: Organizational Level

7. Who, What, Why: Managerial Level

8. Who, What, Why: Executive Level

9. Basic Systems Model

10. System Type: Transaction Processing Systems

11. System Description: Transaction Processing Systems TPSs are designed to process business events and transactions • Architecture Components • Source Documents • Data Entry Methods • Manual – • Semiautomated–(e.g. a barcode scanner) • Fully Automated – (e.g. automatic orders from inventory systems) • Processing • Online • Batch –

12. System Example: Payroll System (TPS) Global logistics

13. System Type: Management Information System

14. 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 - produced automatically based on a predetermined schedule. Some include: • Key Indicator – e.g. Monthly Sales Report • Exception – e.g. Monthly Late Shipments • Drill Down – printed only if needed • Ad Hoc Reporting – unscheduled reports (e.g. sales data by person report to identify issues)

15. System Architecture: Management Information System

16. System Type: Executive Information System (EIS)

17. System Description: Executive Information Systems • EISs, also called Executive Support Systems (ESS), information systems to support executive decision-making • System Details • use graphical user interfaces to display consolidated information : • Soft Data- • Hard Data – • Supported Activities • Executive Decision Making • Long-range Strategic Planning • Monitoring of Internal and External Events • Crisis Management • Staffing and Labour Relations

18. System Architecture: Executive Information Systems

20. Systems That Span Organizational Boundaries

21. Decision Support Systems Decision Support Systems systems designed to support managerial-level employees in organizational decision making System Details use computational software to construct models for analysis (most common is 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 effect (e.g. What is the payment if the interest rate increases by 1% ?)

22. Common Decision Support Systems

23. Expert Systems • Expert Systems • used by operational level employees to make decisions usually made by more experienced employees or an expert in the field • System Details • use inference engines that match facts and rules, sequence questions for the user, draw a conclusion, and present a recommendation to the user • Supported Activities: • These systems support many activities, including: • Medical Diagnosis • Machine Configuration • Financial Planning • Software Application Assistance (help wizards)

24. Office Automation Systems • Office Automation Systems • increase productivity within the office setting • Supported Activities • Scheduling Resources • Examples: electronic calendars • Document Preparation • Examples: software (word processing and desktop publishing); hardware (printers) • Communicating • Examples: e-mail, voice mail, videoconferencing and groupware

25. Collaborative Techs (Groupware) • Groupware • 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

26. Systems That Span Organizational Boundaries firestation

27. 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 daytraders Workforce absenteeism Peppers & Rogers

28. 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

29. System Examples: Global Information Systems