1. INFORMATION SYSTEMS Discuss why computers are used in organizations
How does information flow in an organization?
end-users need to be aware of the different types of computer-based information systems
Transaction processing
Management information systems
Decision support systems
Executive support systems

2. Competencies
Explain how organizations can be structured according to the five functions and three management levels
Describe how information flows in an organization
Distinguish among the different systems

3. Competencies cont.
Distinguish between office automation systems and knowledge work systems
Explain the difference between data workers and knowledge workers

4. Organizational Information Flow
Organizations can be viewed according to how they function
Management has three levels
Information flows up, down, and across
A good exercise is to use an order entry company as an example. Have the students trace how a transaction starts with a telephone or computer order for goods.

5. Functions Accounting Marketing Human Resources Production
Research and Development
Most businesses will have these five functioning department within their organization. They may go by slightly different names; but their functions will be basically the same.
Each needs information from the other; some from more than one
Information, therefore, flows vertically and horizontally

6. Management Levels
Top managers: involved with long-range planning; responsible for strategic planning; need highly summarized information; also need information from outside sources
Middle managers: Flow is horizontal and vertical across functions; control and planning; responsible for tactical planning; need summarized weekly or monthly information
Supervisors: Information flow is primarily vertical; responsible for operational matters; control matters; detailed, day-to-day information

7. Information Flow Top managerial-level Middle managerial level
Vertical, horizontal & external
Middle managerial level
Vertical & horizontal
Supervisory-level
Vertical only
Most organizations have three levels of management; may see some overlap between supervisor and middle management
Top management almost always requires information from the “below”; therefore, information is vertical
Middle and supervisory will have information from both directions with supervisors getting information laterally also.

8. Computer-Based Information Systems
Four types of computer-based information systems that help track and keep information flowing in the amount and direction organization needs to stay on track:
TPS -- Records day-to-day transactions; Foundation for other information systems
MIS -- Summary of detail from TPS; Produces standard reports for management
DSS -- Data source: TPS; Flexible analytical tool; Assists managers with unstructured problems
ESS -- Highly summarized information presentations; Gives senior management a broad company view, assists with strategic planning; Sourced internally from TPS and MIS, and from external sources

9. Transaction Processing Systems
Tracks operations
Creates databases
Also called data processing systems (DPS)
Records routine, day-to-day operations in a database
Foundation for other information systems within organization
Associated with sales, order processing, inventory, purchasing, AP, AR, payroll – other accounting functions.

10. Accounting Activities TPS
Sales order processing
Accounts receivable
Inventory control
Accounts payable
Payroll
General ledger
A transaction processing system helps an organization to keep track of routine operations
Records information in a database
Users have access to the information via queries and/or reports
The accounting area is one of the most essential areas in an organization
Sales order processing – this usually starts the flow of information
Accounts receivables – collecting money owed for goods
Inventory - parts and finished goods that the company has in stock
Inventory control system
Purchasing is the buying of materials and services
Purchase order is a form used
Accounts payables refers to money the company owes its suppliers for materials and services it has received
Payroll – concerned with paying employees for service performed

11. Management Information Systems MIS
Produces standardized reports
Periodic
Exception
Demand
Uses databases
Integrates data across areas
A computer-based information system that produces standardized reports in summarized, structured form
Periodic - regular intervals, predetermined format, consistent content
Exception - highlight unusual events
Demand - as opposed to periodic, only upon request
MIS use databases; DBMS required to integrate data across functional areas

12. Decision Support Systems DSS
Enables managers to get answers to problems
Group decision support system (GDSS)
Supports DSS
Addresses large problems
Analyzes data
Managers often must contend with unanticipated questions; DSS help provide answers to unexpected, non-recurring problems
DSS helps user (management or otherwise) make decisions

13. DSS Parts User System software Data Decision models
Someone who makes decisions
Could be you
System software
Operating system
Easy to use
Data
Internal & external
Decision models
DSS is quite different from transaction processing system
Gives a summary of the data
Helps decision makers analyze unanticipated situations
DSS consists of four parts
User
System software
Data
Decision model

14. Decision Models Strategic models Tactical models Operational models
Assists top-level management
Long range planning
Tactical
Assists middle-management
Financial planning
Sales promotion planning
Operational – helps lover level managers accomplish the organization’s day-to-day activities

15. Executive Support Systems ESS
Designed for top management
Consists of sophisticated software
Access about a company's performance
ESS is a type of DSS that is specifically designed for top management
Emphasis on ease of use so that executives may operate without extensive training
Easy, direct access about the company’s performance; Highly summarized information to help make decisions; Combines internal data from TPS and MIS with external data;

16. Other Information Systems
Information workers
Data workers
Secretaries
Clerks
Knowledge workers
Engineers
Scientist
Office automation systems
Project managers
Videoconferencing systems
Knowledge work systems
Use specialized systems
CAD/CAM
Typically information workers create, distribute and communicate information. Includes but not limited to secretaries, clerks, engineers, and scientists
Communication and distribution - data workers
Creation - knowledge workers
Office automation systems support the activities of information workers by managing documents, communications and scheduling
Knowledge work systems (CAD/CAM, Video conferencing) support knowledge workers creating information in their areas of expertise
CAD/CAM – used by design and manufacturing engineers
Video Conferencing – used by individuals to see and share information through TV or over the Internet

17. A Look to the Future Information Overload
Could have a negative effect on getting work done
How to handle
Be selective
Remove
Protect
Be brief
Stop spam
Don't respond
Question the value of technology? Has it helped or just caused more stress?
and cell phones allow communication in nearly any location. Also can be main source of too much information.
Be selective; -- With s, put important information in the first three lines of your message.
Remove messages no longer needed. If you phone has the ability to save messages, you don’t keep all of them. You delete as you deal with the information. Do the same with s.
Protect – give your address out like your telephone number. You generally don’t send a “blanket” phone message to numerous people so they can call you at random with useless information.
Be brief – their time is as valuable as yours. Some people receive so many s in a day that they tend to ignore long messages.
Stop spam – not everyone wants to receive those chain letters. Not everyone wants to receive all those “great” jokes you receive or find.
Don’t respond – unless you have something to add that will make a difference, end the conversation whether on the phone or through .

18. FAQs List the five basic functions of an organization.
Name the three management levels.
Which information system produces summarized, structured reports?
Which system would be used by a company CEO?

19. Discussion Questions
Define the following terms - TPS, MIS, DSS, and ESS.
What is the purpose of a Transaction processing system?
Describe one of the information systems listed above.