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Organizations and Their Structures The Nature of Information in an Organization
(and Decentralized Computing) IT systems in an Organization and the Tasks
They Perform
IntroductionINFORMATION TECHNOLOGY INFORMATION TECHNOLOGY
SYSTEMSSYSTEMSSupporting Information Supporting Information
ProcessingProcessing
Information Technology Is Now a Part of Information Technology Is Now a Part of Almost Every OrganizationAlmost Every Organization
Some IT systems simply process transactions Some help managers make decisions Some support the inter-organizational flow of information Some support team work Seeing more supply chain IT systems - WalMart and 3 day inventory replacement
Introduction
THE TRADITIONAL STRUCTURE THE TRADITIONAL STRUCTURE OF AN ORGANIZATIONOF AN ORGANIZATION
An Organization
NONMANAGEMENT
STRATEGIC
TACTICAL
OPERATIONAL
MANAGEMENT
THE TRADITIONAL STRUCTURE THE TRADITIONAL STRUCTURE OF AN ORGANIZATIONOF AN ORGANIZATION
1.STRATEGIC MGMT - provides an organization with overall direction and guidance.
2.TACTICAL MGMT - develops the goals and strategies outlined by strategic mgmt.
3.OPERATIONAL MGMT - manages and directs the day-to-day operations.
4.NONMANAGEMENT - those people who actually perform daily activities.
An Organization
Organizations Also Have Depth...Organizations Also Have Depth...
An Organization
Within the pyramid, many organizations structure according to:
(1) Function (marketing, accounting, etc.)
(2) Product line (e.g., GM by Buick, Pontiac, etc)
When Considering Information, When Considering Information, You Need to Understand...You Need to Understand...
The concept of shared information through decentralized computing
The directional flow of information What information specifically describes The information-processing tasks your
organization undertakes
Information
SHARED INFORMATION AND SHARED INFORMATION AND DECENTRALIZED COMPUTINGDECENTRALIZED COMPUTING
Information
As late as the early 1980s, most organizations exhibited centralized computing and isolated information. That is...
Large central mainframe computers that performed all tasks.
Separate files of information for each application or system.
So, computing power was centralized while information remained isolated.
SHARED INFORMATION AND SHARED INFORMATION AND DECENTRALIZED COMPUTINGDECENTRALIZED COMPUTING
Information
During the early to mid 1980s, most organizations exhibited decentralized computing and isolated information. That is...Smaller, more powerful computers that were distributed to functional business areas.These computers still maintained separate files of information for each application.So, computing power was decentralized while information remained isolated.
SHARED INFORMATION AND SHARED INFORMATION AND DECENTRALIZED COMPUTINGDECENTRALIZED COMPUTING
Information
Today, organizations have maintained their decentralized computing while bringing together all the organization’s information.
This bringing together of information is accomplished by using databases.
Databases support the concept of shared information. So, computing power is now decentralized and information is shared.
HOW INFORMATION FLOWSHOW INFORMATION FLOWS Upward Flow of Information - describes the
current state of the organization based on its daily transactions.
Downward Flow of Information - consists of the strategies, goals, and directives that originate at one level and are passed to lower levels.
Horizontal Flow of Information - between functional business units and work teams.
Information
See Figure 2.5 on page 46
WHAT INFORMATION DESCRIBESWHAT INFORMATION DESCRIBES
INTERNAL INFORMATION - describes specific operational aspects of the organization.
EXTERNAL INFORMATION - describes the environment surrounding the organization.
OBJECTIVE INFORMATION - quantifiably describes something that is known.
SUBJECTIVE INFORMATION - attempts to describe something that is currently unknown.
Information
TWO WAYS OF CREATING TWO WAYS OF CREATING INFORMATIONINFORMATION
1.TRANSACTION PROCESSING - the processing of transactions that occur within an organization.– Example: computing payroll and sales tax
2.ANALYTICAL PROCESSING - creating information to support your decision-making tasks.– Example: how to allocate investment dollars
Information
THE SEVEN IT SYSTEMS IN AN THE SEVEN IT SYSTEMS IN AN ORGANIZATIONORGANIZATION
IT Systems
1.Transaction Processing Systems (TPS)2.Customer Integrated Systems (CIS)3.Management Information Systems (MIS)4.Workgroup Support Systems (WSS)5.Decision Support Systems (DSS) & Artificial Intelligence (AI)6.Executive Information Systems (EIS)7.Interorganizational Systems (IOS)
TRANSACTION PROCESSING SYSTEMTRANSACTION PROCESSING SYSTEM
TPSs
a system that processes transactions that occur within an organization.
Capturing information
Creating information
Cradling information
Conveying information (secondary)
Are at the very heart of every organization. Provide the primary interface to customers. Found in all functions of an organization. If they fail, the whole organization suffers.
CUSTOMER INTEGRATED SYSTEM (CIS)CUSTOMER INTEGRATED SYSTEM (CIS)......
CISs
an extension of a TPS that places technology in the hands of an organization’s customers and allows them to process their own
transactions.
Capturing information
Creating information
Cradling information
Communicating information
Conveying information (secondary)
• Represent a further decentralization of computing power by placing that power in the hands of customers.
• Will forever change the relationship between organization and customer. ATM’s, Bank on-line, TicketMaster, 800-Flowers
MANAGEMENT INFORMATION SYSTEMMANAGEMENT INFORMATION SYSTEM
MISs
a system that provides periodic and predetermined reports that summarize information within a database.
Creating information
Conveying information
Alert people to the existence of problems or opportunities. Report Types:
– PERIODIC - produced at a predetermined time interval.
– SUMMARIZED - aggregate information in some way.
– EXCEPTION - show only a subset of available information.
– COMPARATIVE - show two or more sets of similar information.
WORKGROUP SUPPORT SYSTEM (WSS)WORKGROUP SUPPORT SYSTEM (WSS)......
WSSs
a system that is designed specifically to improve the performance of teams by supporting the sharing and flow of information.
Communicating information
Supports the sharing, dissemination, and flow of information. Supports both:
– Project teams - that solve a specific problem or take advantage of a specific opportunity and then disband to move on to other projects.
– Permanent teams - people from all departments that perform a flow of work consistently.
Contains groupware.
GROUPWAREGROUPWAREWSSs
the popular term for the software that supports the collaborative efforts of a team.
Groupware Supports Three Functions:(See Figure 2.11 page 58
1. Team Dynamics - e-mail, e-meeting, video & white board
2. Document Management3. Applications Development
DECISION SUPPORT SYSTEM (DSS) & DECISION SUPPORT SYSTEM (DSS) & ARTIFICIAL INTELLIGENCE (AI)ARTIFICIAL INTELLIGENCE (AI)
DSS & AI
DSS - a highly flexible and interactive IT system that is designed to support decision making when the problem is not structured.AI - the science of making machines imitate human thinking and behavior.
Creating informationConveying information (secondary)
GEOGRAPHIC INFORMATION SYSTEM (GIS) - a DSS designed specifically to work with spatial information.
GENETIC ALGORITHM - an AI system that mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem.
EXPERT SYSTEM - an AI system that applies reasoning capabilities to reach a conclusion.
EXECUTIVE INFORMATION SYSTEM (EIS)EXECUTIVE INFORMATION SYSTEM (EIS)......EISs
a highly interactive MIS combined with decision support systems and artificial intelligence for helping managers identify and
address problems and opportunities.
Creating information
Conveying information
Make use of a data warehouse. Support drill down capabilities. Help identify information responsibility. Use DSS and AI tools. Provide access to a variety of information.
HAVE EISs BEEN MISNAMED?HAVE EISs BEEN MISNAMED? EISs provide managers and executives with the
flexibility to view information from many angles and provide various tools for supporting data analysis.
Aren’t there other people in an organization who need those same capabilities?
Certainly - all employees need that type of support. Maybe EISs should be named employee
information systems.
EISs2-33
INTERORGANIZATIONAL SYSTEM (IOS)INTERORGANIZATIONAL SYSTEM (IOS)......
IOSs
automates the flow of information between organizations to support the planning, design, development, production, and
delivery of products and services.
Communicating information
Supports ELECTRONIC DATA INTERCHANGE (EDI) - the direct computer-to-computer transfer of transaction information contained in standard business documents.
Allows many organizations to create an economies of scale in technology.
Provides a way for organizations to team up and create new products and services.