1. Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill Chapter 11: Information Systems

2. Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You 11-2 McGraw-Hill Introduction An information system is a collection of people, procedures, software, hardware, and dataAn information system is a collection of people, procedures, software, hardware, and data –They all work together to provide information essential to running an organization –Computers are used in organizations to keep records of events Competent end uses need to understand how the information flows as it moves through an organizationCompetent end uses need to understand how the information flows as it moves through an organization

3. Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You 11-3 McGraw-Hill Organizational Information Flow Information flows vertically and horizontally throughout an organizationInformation flows vertically and horizontally throughout an organization Information systems support the natural flow of information within an organization’s structureInformation systems support the natural flow of information within an organization’s structure 5 Functional Areas5 Functional Areas5 Functional Areas5 Functional Areas Management LevelsManagement LevelsManagement LevelsManagement Levels Information FlowInformation FlowInformation FlowInformation Flow

4. Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You 11-4 McGraw-Hill Five Functions of an Organization AccountingAccounting MarketingMarketing Human ResourcesHuman Resources ProductionProduction ResearchResearch Return

5. Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You 11-5 McGraw-Hill Management Levels Management is usually divided into three levels: Top, Middle, and SupervisorsManagement is usually divided into three levels: Top, Middle, and Supervisors Return

6. Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You 11-6 McGraw-Hill Information Flow (1 of 2) Each level of management has different information needsEach level of management has different information needs The information flows to support these needsThe information flows to support these needs –Top management Vertical, horizontal, and externalVertical, horizontal, and external –Middle management Vertical and horizontalVertical and horizontal –Supervisor Primarily verticalPrimarily vertical Return

7. Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You 11-7 McGraw-Hill Information Flow (Page 2 of 2) Return

8. Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You 11-8 McGraw-Hill Transaction Processing Systems (TPS) Records day-to-day transactions in a databaseRecords day-to-day transactions in a database Also called data processing systems (DPS)Also called data processing systems (DPS) One of the most essential uses of a TPS is in the accounting areaOne of the most essential uses of a TPS is in the accounting areaaccounting areaaccounting area

9. Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You 11-9 McGraw-Hill TPS for Accounting Sales order processingSales order processing Accounts receivableAccounts receivable Inventory and purchasingInventory and purchasing

10. Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You 11-10 McGraw-Hill Management Information Systems (MIS) Produces standardized reports to support decision-making by middle managersProduces standardized reports to support decision-making by middle managers Integrates data and summarizes details from databases in a structured formIntegrates data and summarizes details from databases in a structured form Produces predetermined reportsProduces predetermined reports –Periodic reports –Exception reports –Demand reports

11. Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You 11-11 McGraw-Hill Decision Support Systems (DSS) Flexible tool for analyzing data for decision-making purposesFlexible tool for analyzing data for decision-making purposes Enables managers to get answers to unexpected and generally non-recurring problemsEnables managers to get answers to unexpected and generally non-recurring problems –Produces reports that do not have a fixed format Microsoft Access is often used to provide an easy front-end interface for performing SQL decision support queriesMicrosoft Access is often used to provide an easy front-end interface for performing SQL decision support queries

12. Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You 11-12 McGraw-Hill Parts of a DSS UserUser –A decision-maker, like yourself System softwareSystem software –Operating system –Easy to learn and use DataData –Internal data –External data Decision modelsDecision models

13. Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You 11-13 McGraw-Hill DSS Decision Models Strategic modelsStrategic models –assists top level management in long-range planning Tactical modelsTactical models –assists middle-management control the work –E.g., financial and sales promotion planning Operational modelsOperational models –assists lower-level managers accomplish the daily activities and objectives

14. Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You 11-14 McGraw-Hill Executive Support Systems (ESS) Designed for top managementDesigned for top management Sophisticated software for presenting, summarizing, and analyzing data, but specifically designed to be easy-to-useSophisticated software for presenting, summarizing, and analyzing data, but specifically designed to be easy-to-use Provides immediate access to a company's key performance indicatorsProvides immediate access to a company's key performance indicators

15. Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You 11-15 McGraw-Hill Other Information Systems Information workersInformation workers –Data workers –Knowledge workers Office automation systems (OASs)Office automation systems (OASs) –Supports data workers –Project management programs –Videoconferencing systems Knowledge work systems (KWSs)Knowledge work systems (KWSs) –Use specialized systems, such as CAD/CAM