1. Chapter 6
Organizational
Information
Systems

2. Learning Objectives
Describe the characteristics that differentiate the operational, managerial, and executive levels of an organization
Explain the characteristics of the three information systems designed to support each unique level of an organization: transaction processing systems, management information systems, and executive information systems

3. Learning Objectives
3. Describe the characteristics of six information systems that span the organizational, managerial, and executive levels: decision support systems, expert systems, office automation systems, collaboration technologies, functional area information systems, and global information systems

4. Levels of the Organization

5. Levels of the Organization Explained
Executive Level
Strategic planning and responses to strategic issues occur here. Executive decisions are usually unstructured and are made using information consolidated internal and external information
Managerial Level
Monitoring and controlling of operational activities and executive information support occur here. Managerial decisions are usually semistructured and are made using procedures and ad hoc tools
Operational Level
Day-to-day business processes and interactions with customers occur here. Operational decisions are usually structured and are made using established policies and procedures

6. Who, What, Why: Organizational Level

7. Who, What, Why: Managerial Level

8. Who, What, Why: Executive Level

9. Basic Systems Model

10. System Type: Transaction Processing Systems

11. System Description: Transaction Processing Systems
TPSs are a special class of information systems designed to process business events and transactions
Architecture Components
Source Documents – these contain the event or transaction information to be processed by system
Data Entry Methods
Manual – a person entering a source document by hand
Semiautomated – using a capture device to enter the source document (e.g. a barcode scanner)
Fully Automated – no human intervention, one computer talks or feeds another computer (e.g. automatic orders from inventory systems)
Processing – transactions can be either:
Online – processed individually in real-time
Batch – grouped and processed together at a later time

12. System Example: Payroll System (TPS)

13. System Architecture: Transaction Processing System

14. System Type: Management Information System

15. System Description: Management Information Systems
MISs are used by managerial employees to support recurring decision making in managing a function or the entire business
Supported Activities
Scheduled Reporting - the system produces automatically based on a predetermined schedule. Some include:
Key Indicator – High-level summaries to monitor performance (e.g. Monthly Sales Report)
Exception – Highlights situations where data is out of normal range (e.g. Monthly Late Shipments)
Drill Down – Provides lower level detail aggregated in a summary report (printed only if needed)
Ad Hoc Reporting – unscheduled reports that are usually custom built to answer a specific question (e.g. sales data by person report to identify issues)

16. System Architecture: Management Information System

17. System Type: Executive Information System (EIS)

18. System Description: Executive Information Systems
EISs, also called Executive Support Systems (ESS), are special purpose information systems to support executive decision-making
System Details
These systems use graphical user interfaces to display consolidated information and can deliver both:
Soft Data - textual news stories or non-analytical data
Hard Data – facts, numbers, calculations, etc.
Supported Activities
The activities supported by these kinds of systems include:
Executive Decision Making
Long-range Strategic Planning
Monitoring of Internal and External Events
Crisis Management
Staffing and Labor Relations

19. System Architecture: Executive Information Systems

20. System Example: Executive Reporting Drill-down (EIS)
Second Level
Data Drill Down
First Level
Graphical Summary

21. Systems That Span Organizational Boundaries

22. System Description: Decision Support Systems
Special-purpose information systems designed to support managerial-level employees in organizational decision making
System Details
These systems use computational software to construct models for analysis (most common MS Excel) to solve semi-structured problems (e.g. sales or resource forecasts)
Supported Activities:
“What-if” analysis – changing one or more variables in the model to observe the resulting effect (e.g. what is the payment if the interest rate increases 1%)

23. Characteristics of Decision Support Systems

24. System Description: Common Decision Support Systems

25. System Architecture: Decision Support Systems

26. System Example – Loan Calculator
Variables to be Analyzed
Loan Calculator Model
Analysis Results

27. System Description: Expert Systems
Special-purpose systems used by operational level employees to make decisions usually made by more experienced employees or an expert in the field
System Details
These systems use inference engines that match facts and rules, sequence questions for the user, draw a conclusion, and present the user a recommendation
Supported Activities:
These systems support many activities including:
Medical Diagnosis
Machine Configuration
Financial Planning
Software Application Assistance (help wizards)

28. System Architecture: Expert Systems

29. System Example – Web-based Expert Systems EXSYS

30. System Description: Office Automation Systems
A collection of software and hardware products that increase productivity within the office setting
Supported Activities
The activities supported by these kinds of systems include:
Scheduling Resources
Examples: electronic calendars with resource management (equipment, facilities, etc.)
Document Preparation
Examples: software (word processing and desktop publishing); hardware (printers)
Communicating
Examples: , voice mail, videoconferencing and groupware

31. System Architecture: Office Automation Systems

32. System Example – Scheduling System

33. System Description: Collaboration Technologies
Videoconferencing
Software and hardware the that allow parties to meet electronically with both picture and voice
Supported Activities
Stand-alone Videoconferencing
High quality, typically very expensive systems using dedicated microphones, cameras and hardware.
Can support meetings between several people and locations simultaneously
Desktop Videoconferencing
Lower quality, relatively inexpensive systems using a PC, small camera, and a microphone or telephone for voice communication
Allows two individuals to communicate from a desktop

34. System Description: Collaborative Techs (Groupware)
Software that enables people to work together more effectively
Supported Activities
These systems come in two types:
Asynchronous Groupware – Systems that do not require users to be on the system working at the same time including: , newsgroups, workflow automation, group calendars, and collaborative writing tools
Synchronous Groupware – Systems that allow and support simultaneous group interactions including shared whiteboards, electronic meeting support systems, video communication systems

35. System Description: Groupware

36. System Description: Groupware Benefits

37. System Examples – Groupware

38. System Description: Functional Area Info Systems
Functional Area Information Systems
Cross-organizational information systems are designed to support a specific functional area
Supported Activities
The following functional organizations have systems to support their operational and managerial activities
Accounting
Finance
Human Resources
Marketing
Operations

39. System Description: Functional Area Info Systems

40. System Examples: Functional Area Info Systems

41. System Description: Global Information Systems
A variety of special-class systems used to support organizations that operate globally
Supported Activities
Depending on the organization, one or more of these systems may be required (definitions on next slide):
International Accounting Systems
Transnational Information Systems
Multinational Information Systems
Collaborative Information Systems

42. System Examples: Global Information Systems