Chapter 6 Organizational Information Systems

1. Chapter 6OrganizationalInformation Systems Information Systems Today

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. Decision-Making Levels of an Organization

4. 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

5. 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

7. Four major Types of systems

8. INFO SYSTEMS, LEVELS, DECISIONS

9. 1. Transaction Processing System (TPS) Computerized systems that perform and record the daily routine transactions

10. …TPS Goal  to automate repetitive information processing activities • Increase speed • Increase accuracy • Greater efficiency

11. …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

12. Examples of TPS • Payroll • Sales and ordering • Inventory • Purchasing, receiving, shipping • Accounts payable and receivable

13. 2. Management Information System (MIS) • It serves functions of planning, controlling and decision making by providing routine summary and exception reports

14. …MIS Reports • Scheduled report • Key-indicator report • Exception report • Drill-down report • Ad hoc report

15. Typical MIS

16. Simple Report Produced by MIS

17. 3. Executive Support Systems (ESS) • Information System at the organization’s strategic level designed to address unstructured decision making through advanced graphics and communications

18. Typical ESS

19. …EIS examples • Executive-level decision making • Long-range and strategic planning • Monitoring internal and external events • Crisis management • Staffing and labor relations

20. Information Systems that Span Organizational Boundaries

21. 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

22. Typical DSS

23. …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.

24. Expert systems • Mimics human expertise by manipulating knowledge • Rules (If-then) • Inferencing

25. Office Automation SystemsOAS • Communicating and scheduling • Document preparation • Analyzing data • Consolidating information

26. Collaborative Technologies • Virtual teams • Videoconferencing • Groupware • Electronic Meeting Systems (EMSs)

27. Functional Area IS • Geared toward specific areas in the company: • Human Resources • Benefits • Marketing

29. Global IS • International IS • Transnational IS • Multinational IS • Global IS