2 IT in the Modern Organization Information InfrastructuresArchitectureTransaction Processing SystemsManagement Information SystemsSupport SystemsIntelligent SystemsIntegrating Support (and Other) SystemsBasicConcepts
3 Basic Concepts Information Infrastructure Consists of physical facilities, services & management that support all computing resources in an organization5 major componentsComputer hardware,general purpose software,Networks and communication facilities including Internet)DatabasesInformation management personnelAlso includes integration, operation, documentation, maintenance and management
4 Basic Concepts Plan of the information requirements in an organization Information ArchitecturePlan of the information requirements in an organizationA guide for current operations and a blueprint for future directionsEnsure the organization’s IT meets the organization’s strategic business needs
5 Basic Concepts Preparing the information architecture Business needs for informationThe organizational objectives and problemsThe contribution that IT can makeThe potential users of ITExisting and planned information infrastructure and applications in the organizationIncludes how the planned system and its applications can be combined among themselves or with future systems to support the organization information needs.
6 Basic ConceptsTransactionProcessing SystemsAn IS that supports routine and repetitive tasks e.g. employees payment, customers’ purchase orders etc.TPSsupports the monitoring, collection, storage, processing and dissemination of the organization’s basic business transactionsProvides input data for many applications, including computerized decision making
7 Basic Concepts Several TPS can exist in one company TransactionProcessing SystemsSeveral TPS can exist in one companyCritical to the success of an organizationTPS support core business operationspurchasing of materials, billing, payroll and supplies to customers
8 Routine Business Transactions in a Factory Basic ConceptsRoutine Business Transactions in a FactoryPayrollMonitor employee time cardsTrack employee pay and deductionsIssues payroll checksPurchasingIssue purchase ordersAccept and records deliveriesPay accounts payableSalesKeep sales recordsIssues invoices and billingsTrack accounts receivableKeep shipping recordsManufacturingPrepare production reportsPrepare quality-control reportsFinance and AccountingPrepare and issue financial statementsMaintain tax recordsMonitor and pay expense accountsInventory ManagementTrack materials usageMonitor inventory levelsReorder inventory as needed
9 Management Information Systems Basic ConceptsManagement Information SystemsSystems that accessed, organized, summarized and displayed information for supporting routine decision making in the functional areasGeared towards middle managersEnsure that business activities(functions) are done in an efficient manner.Provides periodic reports about such topics as operational efficiency, effectiveness and productivity.Extracting information from corporate database and processing it according to the needs of the user.
10 Major output of a functional Basic ConceptsMajor output of a functionalMISOutputDescriptionStatistical summariesSummaries of raw data; daily production, weekly and monthly usage of electricityException reportsHighlights of data items that are larger or smaller than designated levelsPeriodic reportsStatistical summaries and exception reports provided at scheduled, regular periodsAd-hoc reportsSpecial, unscheduled reports provided on demandComparative analysisPerformance comparison to that of competitors, past performance or industry standardsProjectionsAdvance estimates of trends in future sales, cash flows, market share, etc.
11 Basic ConceptsSupport SystemsProvide computerized support for complex, sometime nonroutine decisions.Expanded in 2 directionsExecutive Information Systems(EISs) to support senior executivesGroup Support Systems(GSSs) to support people working in special decision making situation or meeting, in single/different locationsGroupware - commercial software that support people working in groups.
12 Basic Concepts DSS helps manufacturing company in.. Support Systems Showing trends that help managers to make decisions.Forecasting the product needed that respond to customer need & when they need itSales forecasting problemProduct scheduling problemSave company time and money
13 Basic Concepts Intelligent Systems Systems that replicate the thought processes of humansExpert systems - advisory systems that provide the stored knowledge of experts to nonexperts.Intelligent system (1980s) - systems with learning capabilitiesEnables the computers to incorporate new information or feedback and update their knowledgeArtificial intelligenceProcessing vague information, make predictions or recognizing patterns.E.g. expert system, artificial neural networks
14 Class discussionIntelligent SystemsIdentify any intelligent systems that you would need in your organizationrefer pg 36, box 2.2Pg 43 box 2.3
15 Integrating Support Systems Basic ConceptsIntegrating Support SystemsSystems that integrates two or more information systems- e.g. TPS and MISE.g. DSS combined with Expert Systems can support more decision making systemsEnterprise Resources Planning system (ERP)Plans and manages all organization’s resources and their use.
17 Organization: Structure and IT Support AccountingFinanceMarketing and SalesProduction or Operations Management(POM)Human Resources ManagementInformation SystemsOrganizationalstructure
18 Organization: Structure and IT Support Mapping IS to Organizational StructureIT provides support in three major areas Communication, collaboration and data processing and access including knowledge sharing.Use application program - a system developed for a specific purpose, facilitates production schedule, expediting a financial forecast or executing weekly payroll.
19 Organization: Structure and IT Support Departmental ISPlant ISDivisional ISEnterprisewide ISInter-organizational ISIS that reflects the dept.they supportRelated to functional areaCollections of all dept. ISExample ofApplication systemsConnects all plant’s systemsWith IS of other systems,Permits communications &Collaboration among plants& other units in the divisionConnects all divisions andother units of an organizationConnects two or moreOrganizations e.g. airline syst.
20 IT Support at Different Organizational Levels Top managementLong-term planning decisionDeal with organization’s objectives as a wholeuse executive information systems for decision making and forecastingStrategic decisionsTactical or managerial decisionsMiddle managersShort-term plans, procedures and policies and policiesInvolve implementing the long-term strategiesUse MIS, for primary support along with DSS
21 IT Support at Different Organizational Levels Line managers and operatorsDay-to-day decisions that aim to keep the organization’s operations moving smoothlyUse TPS to capture the operational information relevant for decision making at this level.Operational decisions
22 How Information Systems Support People in Organizations, (continued) Identify who’s who in your organization…
23 IT Support at Different Organizational Levels KnowledgeworkersResponsible for finding or developing new knowledge for organization and integrating it with existing knowledgeMajor users of the internetSupported by internet, expert system, computer aided design, and all new technologies.Engineers, financial and marketing analyst, production planners, lawyers and accountants
24 IT Support at Different Organizational Levels KnowledgeworkersIT can integrate the expertise of knowledge workers into an organization and assist in improving worker performance through the use of Intelligent SystemsHow productivity increased by used of the expert systems??
25 IT Support at Different Organizational Levels Organizational Knowledge BaseThe reserve of accumulated knowledge in organizations.Contain knowledge generated by all employees (not only knowledge workers) and by people outside the organization such as by consultants.The outside knowledge is known as best global practice or benchmarks
26 IT Support at Different Organizational Levels Knowledge ManagementThe process of acquiring, maintaining and disseminating organizational knowledge, supported by various IS
27 How Information Systems Support People in Organizations
28 Class discussion List the organization level in your workplace Identify your organization’s knowledge workers.What kind of knowledge being supported by every level of people in your organization.
29 Main types of IT support systems Employees supportedOffice automationOffice workersCommunicationAll employeesGroup supportPeople working in groupsDecision supportDecision makers, managersExecutive informationExecutives, top managersIntelligent systemsKnowledge workersTPSLine managers and employeesMISMiddle management
30 Role of the IS Department Managing systems development and systems project managementManaging computer operationsStaffing, training and developing skillsProviding technical servicesInitiating and designing specific strategic ISInfrastructure planning, development and controlIncorporate the internet and e-commerce into the businessManaging system integration including internet, intranets and extranetsEducating the non-IS managers about IT, etcRefer table 2.4 pg 45
31 IT people and Careers IT people Task Programmer Modify computer programs or write programs to satisfy user requirementSystem analyst/ developerAnalyze & design IS by using specialized and and design toolsTelecommunication/ Network specialistSpecialist in handling telecommunication or network problemSystem operations specialistKeep system up & running, has specialization in computing hardware and softwares as well as some aspects of networksBusiness analystInvolved in development of new IS. As a translator between IS developers and users
32 IT people and Careers IT people Task Database administrator Design and manage data/ database organization efficiently and effectively. Has knowledge in database software and hardwareWebmaster/ e-commerce specialistManage company’s website and business transactions through the internet, IT support and supply chain.
33 Class discussionDiscuss the characteristics and roles of knowledge workersDiscuss the relationship between TPS, MIS and DSS
34 Class discussionFor next class…How is productivity and efficiency increased by used of Intelligent Systems in your workplace??
35 What system do you think.. You need most in your organization??? Class discussionWhat system do you think.. You need most in your organization???And… why?
36 Next week group presentation Computer HardwareContent:The significance of hardwareThe central processing unit (CPU)Computer memoryComputer hierarchyInput technologiesOutput technologiesStrategic hardware issues
37 Next week group presentation Computer SoftwareContent:Software history and significanceSystem softwareApplication softwareSoftware issuesProgramming languagesEnterprise