Prepared By: Dinesh Bajracharya Nepal Types of information systems

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  • Prepared By: Dinesh Bajracharya Nepal Types of information systems
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  • Why different types of IS? One IS may not be able to satisfy all the requirements of organization Organizations have different level of managers, and their information requirements differ from each other Organizations have different functional units, and their information requirements differ from each other. IS that is designed and developed for Sales and Marketing may not be of use for Human Resource System
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  • Level of management Low level Routine, daily activities, basically related with data collection Middle level Handles short term decision making situations Top level Handles long term decision making situations
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  • Around 90% of data is collected in the low level of management. The collected data (data from external source also) are processed, analyzed in the middle level to make short term decision Information provided by middle level management and information from different outside sources are used in top level management to make long term decisions.
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  • Transaction processing system (TPS), is used in low level management to perform daily, routine tasks and activities; tasks related with data Management Information system (MIS), Decision Support System (DSS) are used in middle level of management. These ISs generate information by processing data collected in low level of management. Executive Support System or Executive Information System are used in top level of management.
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  • Example, Restaurant Low level management Waiters, cooks, counter officer Waiters take orders; cooks prepare foods checking orders, counter officer makes bill checking order Middle level Management Accountant, supervisors Accountant study the bills, supervisors study the number of customers arriving in the restaurant, take feedbacks from customers, check quality of service; study waiters and cooks performances
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  • Top level management Owners, CEO, Director Top level managers study the reports provided by middle management, makes decision about number of waiters/cooks; price of items served in the restaurant; increasing capacity of restaurant
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  • Functional units of organizations Sales and marketing Finding customers, informing customers about products and service, studying methods of informing customers about products/services At strategic level sales and marketing system monitors sales and market trend At management level: enables to analyze sales performance, effectiveness of marketing, performance of salesperson At operational level: enables to find customers, track sales, support customers
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  • Manufacturing and production Raw material acquisition; amount of raw materials to store; finding suppliers; making products; calculating supply/demand At strategic level: deals with long-term manufacturing goals At management level: monitors manufacturing and production costs and resources At operational level: controls actions of machine and equipment
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  • Human Resource Detailed information about employees; evaluating performance of employees; training employees; contingency management. At Strategic level: helps to identify type of human resources required At management level: helps to monitor and analyze recruitment process, training employees At operational level: helps to track the recruitment and placement of human resources in the firm
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  • Account and finance What is the financial status of the organization? How much organization has to take? How much organization has to pay? At strategic level: enables to establish and forecast long- term investment goads At management level: helps to control firms financial resources At operational level: helps to track flow of funds