6-1 Chapter 6 Organizational Information Systems

6-1

Chapter 6

OrganizationalInformation

Systems

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6-2Information Systems Today (©2006 Prentice Hall)

Learning Objectives

1. Describe the characteristics that differentiate the operational, managerial, and executive levels of an organization

2. 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


Levels of the Organization Explained

Executive LevelStrategic planning and responses to strategic issues occur here. Executive decisions are usually unstructured and are made using information consolidated internal and external information

Executive LevelStrategic planning and responses to strategic issues occur here. Executive decisions are usually unstructured and are made using information consolidated internal and external information

Managerial LevelMonitoring and controlling of operational activities and executive information support occur here. Managerial decisions are usually semistructured and are made using procedures and ad hoc tools

Managerial LevelMonitoring and controlling of operational activities and executive information support occur here. Managerial decisions are usually semistructured and are made using procedures and ad hoc tools

Operational LevelDay-to-day business processes and interactions with customers occur here. Operational decisions are usually structured and are made using established policies and procedures

Operational LevelDay-to-day business processes and interactions with customers occur here. Operational decisions are usually structured and are made using established policies and procedures


Who, What, Why: Organizational Level


Who, What, Why: Managerial Level


Who, What, Why: Executive Level


Basic Systems Model


System Type: Transaction Processing Systems


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 Example: Payroll System (TPS)


System Architecture: Transaction Processing System


System Type: Management Information System


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 Architecture: Management Information System


System Type: Executive Information System (EIS)


System Description: Executive Information Systems

EISs, also called Executive Support Systems (ESS), are special purpose information systems to support executive decision-making

System DetailsThese 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 ActivitiesThe 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 Architecture: Executive Information Systems


System Example: Executive Reporting Drill-down (EIS)

Second LevelData Drill Down

First LevelGraphical Summary


Systems That Span Organizational Boundaries


System Description: Decision Support Systems

Decision Support SystemsSpecial-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%)


Characteristics of Decision Support Systems


System Description: Common Decision Support Systems


System Architecture: Decision Support Systems


System Example – Loan Calculator

Variables to be Analyzed Loan Calculator Model

Analysis Results


System Description: Expert Systems

Expert SystemsSpecial-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 Architecture: Expert Systems


System Example – Web-based Expert Systems EXSYS


System Description: Office Automation Systems

Office Automation SystemsA collection of software and hardware products that increase productivity within the office setting

Supported ActivitiesThe activities supported by these kinds of systems include:

• Scheduling ResourcesExamples: electronic calendars with resource management (equipment, facilities, etc.)

• Document PreparationExamples: software (word processing and desktop publishing); hardware (printers)

• CommunicatingExamples: e-mail, voice mail, videoconferencing and groupware


System Architecture: Office Automation Systems


System Example – Scheduling System


System Description: Collaboration Technologies

VideoconferencingSoftware 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)

GroupwareSoftware 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: Groupware


System Description: Groupware Benefits


System Examples – Groupware


System Description: Functional Area Info Systems

Functional Area Information SystemsCross-organizational information systems are designed to support a specific functional area

Supported ActivitiesThe following functional organizations have systems to support their operational and managerial activities

• Accounting• Finance• Human Resources• Marketing• Operations


System Description: Functional Area Info Systems


System Examples: Functional Area Info Systems


System Description: Global Information Systems

Global Information SystemsA variety of special-class systems used to support organizations that operate globally

Supported ActivitiesDepending 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


System Examples: Global Information Systems