1. Chapter 6 Organizational Information Systems

2. Chapter 6 Objectives
Understand characteristics of operational, managerial, and executive information systems
Understand characteristics of transaction processing systems, management information systems, and executive information systems
Understand characteristics of information systems that span organizational boundaries

3. Types of Information Systems
An organization consists of many people with different interests, specialties, and levels.
How a single information system can provide all the information that an organization needs?
There is no such single information system.
An organization should have different info systems for different interests, specialties, and levels.

4. Decision-Making Levels of an Organization

5. Decision-Making Levels of an Organization
Executive level (top)
Long-term decisions
Unstructured decisions
Managerial level (middle)
Decisions covering weeks and months
Semistructured decisions
Operational level (bottom)
Day-to-day decisions
Structured decisions

6. Basic systems model for all Info. Systems

7. General Types of Information Systems
Transaction Processing Systems (TPSs)
Transactions
Used at Operational level of the organization
Goal: to automate repetitive information processing activities
Increase speed
Increase accuracy
Greater efficiency

8. General Types of Information Systems
Transaction Processing Systems (TPSs)
Online processing
Batch processing
Data input
Manual data entry
Semiautomated data entry
Fully automated data entry

9. General Types of Information Systems
Transaction Processing Systems (TPSs)
Examples:
Payroll
Sales and ordering
Inventory
Purchasing, receiving, shipping
Accounts payable and receivable

10. General Types of Information Systems
Management Information Systems (MISs)
Two Types:
Management of IS in organizations
Specific information systems for mid-level managers
Used at managerial level of the organization

11. General Types of Information Systems Management Information System
It helps the middle managers with reports, with on-line access to the organization’s current performance and historical records.
It primarily serves the functions of planning, controlling, decision-making at the management level.
Generally it depends on TPS for data.
It summarizes and reports on the basic operations of the organization.
It usually serve managers interested in weekly, monthly, and yearly results, not day-to-day activities.
It generally addresses structured questions that are known in advance.
It is not flexible and have little analytical capability.

12. General Types of Information Systems Management Information System
What are the functions of management-level info system?
=> Helps middle managers for monitoring, controlling, decision-making, and administrative activities.
=> Generally it provides periodic reports rather than instant information
=> However, some systems supports nonroutine decision making.
It should answer the questions:
=> Relocation Control System: It reports on the total moving, house-hunting, and home financing costs for all employees in the organization. It will also notify if actual costs exceed the budgets.
=> What would happen to our return on investment if an organization schedule were delayed for six months?

13. General Types of Information Systems
Management Information Systems
Types of reports:
Scheduled report
Key-indicator report
Exception report
Drill-down report
Ad hoc report

14. General Types of Information Systems
Management Information Systems (MISs)
Examples:
Sales forecasting
Financial management and forecasting
Manufacturing planning and scheduling
Inventory management and planning
Advertising and product pricing

15. General Types of Information Systems Executive Information Systems
It helps senior managers.
It addresses unstructured decisions.
It provides a generalized computing & telecommunications capability to solve problems.
It employs the most advanced graphics software.
It can deliver graphs & (historical data and competitive data) from internal corporate systems and external databases.
Senior managers often have little experience with computer-based information systems, ESS should have easy-to-use graphic interfaces.

16. General Types of Information Systems
Executive Information Systems (EISs)
Used at executive level of the organization
Highly aggregated form
Data types
Soft data – news and nonanalytical data
Hard data – facts and numbers

17. General Types of Information Systems
Executive Information Systems (EISs)
Examples:
Executive-level decision making
Long-range and strategic planning
Monitoring internal and external events
Crisis management
Staffing and labor relations

18. Information Systems that Span Organizational Boundaries

19. Information Systems that Span Organizational Boundaries
Decision Support Systems (DSSs)
Designed to support organizational decision making
“What-if” analysis
Example of a DSS tool: Microsoft Excel
Text and graphs
Models for each of the functional areas
Accounting, finance, personnel, etc.

20. Information Systems that Span Organizational Boundaries
Expert Systems (ESs)
Mimics human expertise by manipulating knowledge
Rules (If-then)
Inferencing

21. Information Systems that Span Organizational Boundaries
Office Automation Systems (OASs)
Examples:
Communicating and scheduling
Document preparation
Analyzing data
Consolidating information

22. Relationship of Systems to one another: Integration
ESS
MIS
DSS
OAS
TPS

23. Information Systems that Span Organizational Boundaries
Collaboration Technologies
Virtual teams
Videoconferencing
Groupware
Electronic Meeting Systems (EMSs)

24. Information Systems that Span Organizational Boundaries
Functional Area Information Systems
Geared toward specific areas in the company:
Human Resources
Benefits
Marketing

26. Information Systems that Span Organizational Boundaries
Global Information Systems
International IS
Transnational IS
Multinational IS
Global IS