MTAT.03.139 Information Systems Lecture 8: Information Systems
Types
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Lecture 13
Truban and Volonino (2010), Information Technology for Management: Transforming Organizations in the Digital Economy. The 7th International student edition, John Wiley & Sons, Inc.
Recall
• Information system (IS) – A system for dissemination of data between persons –
potentially, to increase their knowledge
• Organisational information system – An IS for the dissemination of data within organisation
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Computerised Information System
• Computerised information system – An IS which is based on the use of computers for
dissemination of data Information
System
Hardware
Software Data, Information
Procedures
User interface
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Computerised Information System
• Computerised information system – An IS which is based on the use of computers for
dissemination of data Information
System
Hardware
Software Data, Information
Procedures
User interface
Support organisational activities
top$management$
middle$management$
lower$management$
support$
Levels$of$authority$• Top management
– establishes goals – does long-range planning – determines new market & product
developments – decides on mergers & acquisitions.
• Middle management – sets objectives – allocates & controls resources – does planning – measures performance
• Lower management – supervises day-to-day operations – takes corrective action when necessary.
• Operational level – performs day-to-day operations 186
Type of Support
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Systems' Employees'supported'
Descrip2on''
Management'informa2on'systems'
Middle$managers$ Rou8ne$informa8on$for$$• $planning,$organising,$and$controlling$opera8ons$
Communica2on'and'collabora2on'systems'
All$employees$ Enables$to$interact$and$work$together$
Document'management'systems'
Office$workers$ Automates$flow$of$electronic$documents$
Decision'support'systems'
Decision$makers,$$managers$
Combines$models$and$data$to$solve$semistructured$problems$with$extensive$user$involvement$
Group'support'systems' People$working$in$groups$
Supports$$• $working$processes$of$people$groups$in$different$loca8ons$
Expert'systems' Knowledge$workers,$nonIexperts$
Provides$stored$$• $knowledge$and$decision$recommenda8ons$$
Knowledge'management'systems'
Managers,$knowledge$workers$
Supports$• $gathering,$organising$and$use$of$an$organisa8on’s$knowledge$
Organisational activities • Strategic activities
– Deal with situations that might significantly change the manner in which business is done
• Require elaborative research
– Top management
• Managerial activities – Decisions, tactical activities
• Short term planning, organising, control – Middle and lower management
• Operational activities – Data-to-day activities
• Assign employees, record the number of hours, place a purchase order • Short term in nature
– Operational level • Supervisors, operators, field employees, clerical employees 188
Information Systems classification
Very Large and
Special Systems
Global Systems
Interorganisational Systems
Enterprise Systems
Functional and Management IS
Transaction Processing Systems
Personal and Productivity Systems
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Information Systems classification
Very Large and
Special Systems
Global Systems
Interorganisational Systems
Enterprise Systems
Functional and Management IS
Transaction Processing Systems
Personal and Productivity Systems
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Personal Productivity System
• Activities performed by individuals – Acquisition, organisation, maintenance, retrieval, and
sharing of information
• Example – Personal digital assistant
• Calendar, calculator, scheduler
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Information Systems classification
Very Large and
Special Systems
Global Systems
Interorganisational Systems
Enterprise Systems
Functional and Management IS
Transaction Processing Systems
Personal and Productivity Systems
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Transaction Processing System
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• Transaction processing systems – Periodic financial, accounting, purchase orders,
routine business activities
• Examples
– Point of sales (PoS) terminals
– Payroll preparation
Major characteristics
• Large amount of data processed • The source of data is mostly internal, output is intended for also for
internal audience • Information is processed on regular basis • High processing speed is needed due to high volume • Monitors and collects current and past data • Input and output data are structured • Low computational complexity • A high level of accuracy, data integration and security is needed • High reliability is required • Inquiry processing capacity is a must
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Transaction Processing Systems versus Functional Areas
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Information Systems classification
Very Large and
Special Systems
Global Systems
Interorganisational Systems
Enterprise Systems
Functional and Management IS
Transaction Processing Systems
Personal and Productivity Systems
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Functional Information Systems
• Support work of individual department in an organisation
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Marketing Finance Accounting
Human Resources Production Other
IT and Information Systems
Accounts Payment billing
Inventory
Reports Performance Records
Market Research
Advertisement Budget
information Investment
analysis
Budget Performance Reports
Training plans Labor Requirements
Quality Control plans
Labor scheduling Labor Performance
Managing Production/Operations and Logistics
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Managing Marketing Channel
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Managing Human Resource Systems
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Information Systems classification
Very Large and
Special Systems
Global Systems
Interorganisational Systems
Enterprise Systems
Functional and Management IS
Transaction Processing Systems
Personal and Productivity Systems
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Enterprise Information Systems • Involve entire organisation or two or more departments of it
• Examples – Enterprise resource planning – Customer relationship management – Knowledge management
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Executive administrator Our supplier and our partners
Our customers
Finance Accounting
Marketing Other areas Production Human resources
Process A
Process B
Process C
Process D
Enterprise Resource Planning • Integrate all departments and functional integration flows
across a company into a single computer system – Optimise production schedules – Raise
productivity – Increase
customer satisfaction
– Increase competitive advantage
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Recall
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Raw data Information New data
Knowledge
processing
processing processing
processing
processing
processing
Knowledge Management • Create
– People determine new ways of doing things
• Capture – Identified as valuable – Represented in a
reasonable way
• Refine – Placed in the content
• Store – Stored in a reasonable
format
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• Manage – Must kept current – Review that it is relevant
and accurate
• Disseminate – Be made available in a
useful format
Information Systems classification
Very Large and
Special Systems
Global Systems
Interorganisational Systems
Enterprise Systems
Functional and Management IS
Transaction Processing Systems
Personal and Productivity Systems
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Interorganisational systems • IS that connect two or more organisations
– Electronic funds transfer (money among financial institutions) – Groupware – Shared databases
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Corporate A
System
Corporate B
System
Corporate C
System
Electronic Market
Human Resources Accounting IS
Finance IS
Marketing IS
Production IS
Administrative IS
Information Systems classification
Very Large and
Special Systems
Global Systems
Interorganisational Systems
Enterprise Systems
Functional and Management IS
Transaction Processing Systems
Personal and Productivity Systems
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Other Information Systems
• Global IS – IS that connect companies in two or more
countries • E-commerce systems • Supplies overseas
• Very Large and Special Systems – Very large and global by nature
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Large-scale systems • Governmental systems
– National, state, country, and city systems
• Military systems • Large corporation systems • State University systems • Large not-for-profit organisations • Airline reservation systems • Financial institutions and banking systems • Search engine-based systems • Special systems
– Dedicate to specific events 210
Benefits
• Effective communication at the reasonable cost
• Standardized procedures and common language
• Effective collaboration to overcome differences in distance, time, language and culture
• Access to databases of business partners and ability to work on the same projects while their members are in different locations
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Relationship between systems
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Transaction Processes
Internet and External
Information
Management IS
Data Warehouses
Enterprise Systems
Business Intelligence
Inter-organisational
systems
Internet, Other
Computer Systems
Non-computer systems
Exercise
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• Study system at the University of Tartu • Facebook • Traffic control at the airport • Decision support systems • Portable agenda planner • 2012 London Olympic system
Different types of system has different functionality
• How system helps to achieve goals of each stakeholder?
Consider the Information System as an actor!!!
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i* Strategic Dependency Model
http://istar.rwth-aachen.de/ 215
i* Strategic Rationale Model
What have we learnt?
• Computerise Information system • IS support human activities • Information systems types
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