O RGANIZATIONAL I NFORMATION S YSTEMS Chapter 6

2 W HAT DO M ANAGERS D O ? They make _________ _________ ___________= better managers The amount of information people must understand to make _________, solve problems, and find opportunities is growing exponentially Fire your Customer

3 P ROGRAMMED V ERSUS N ONPROGRAMMED D ECISIONS _________ decisions Decisions made using a rule, procedure, or quantitative method Easy to computerize using traditional information systems _________ _________ decisions Decision that deals with unusual or exceptional situations Not easily quantifiable

4 T YPES OF DECISIONS _________ How many workers to staff line A –What is the EOQ for raw material Z –How many turbines to power Lethbridge? _________ What are the benefits of merging with XYZ –How will consumer react if we lower the price by 10% –What are the benefits of MacDonald's opening up Hotels

6-5 L EVELS OF THE O RGANIZATION

6-6 W HO, W HAT, W HY : O RGANIZATIONAL L EVEL

6-7 W HO, W HAT, W HY : M ANAGERIAL L EVEL

6-8 W HO, W HAT, W HY : E XECUTIVE L EVEL

6-9 B ASIC S YSTEMS M ODEL

6-10 S YSTEM T YPE : T RANSACTION P ROCESSING S YSTEMS

6-11 S YSTEM D ESCRIPTION : T RANSACTION P ROCESSING S YSTEMS TPSs are designed to process business events and transactions Architecture Components _________ Documents Data Entry Methods Manual – _________ –(e.g. a barcode scanner) Fully Automated – (e.g. automatic orders from inventory systems) Processing _________ Batch –

6-12 S YSTEM E XAMPLE : P AYROLL S YSTEM (TPS) Global logistics

6-13 S YSTEM T YPE : M ANAGEMENT I NFORMATION S YSTEM

6-14 S YSTEM D ESCRIPTION : M ANAGEMENT I NFORMATION S YSTEMS MISs are used by _________ employees to support recurring decision making in managing a function or the entire business Supported Activities Scheduled Reporting - produced automatically based on a predetermined schedule. Some include: _________ – e.g. Monthly Sales Report Exception – e.g. Monthly Late Shipments _________ – printed only if needed Ad Hoc Reporting – _________ reports (e.g. sales data by person report to identify issues)

6-15 S YSTEM A RCHITECTURE : M ANAGEMENT I NFORMATION S YSTEM

6-16 S YSTEM T YPE : E XECUTIVE I NFORMATION S YSTEM (EIS)

6-17 S YSTEM D ESCRIPTION : E XECUTIVE I NFORMATION S YSTEMS EISs, also called Executive Support Systems (ESS), information systems to support _________ decision-making System Details use graphical user interfaces to display consolidated information : _________ Data - _________ – Supported Activities Executive _________ Making Long-range Strategic Planning _________ of Internal and External Events Crisis Management _________ and Labour Relations

6-18 S YSTEM A RCHITECTURE : E XECUTIVE I NFORMATION S YSTEMS Digital dashboard

6-19 S YSTEMS T HAT S PAN O RGANIZATIONAL B OUNDARIES

6-20 D ECISION S UPPORT S YSTEMS Decision Support Systems systems designed to support _________ level employees in organizational decision making System Details use computational software to construct models for analysis (_________ _________ )to solve semi-structured problems (e.g. sales or resource forecasts) Supported Activities: “_________ ” analysis – changing one or more variables in the model to observe the effect (e.g. What is the payment if the interest rate increases by 1% ?)

6-21 C OMMON D ECISION S UPPORT S YSTEMS

6-22 E XPERT S YSTEMS Expert Systems used by _________ level employees to make decisions usually made by more experienced employees or an expert in the field System Details use _________ engines that match facts and rules, sequence questions for the user, draw a conclusion, and present a recommendation to the user Supported Activities: These systems support many activities, including: _________ Diagnosis Machine Configuration _________ Planning Software Application Assistance (help wizards)

6-23 S YSTEM E XAMPLE – W EB - BASED E XPERT S YSTEMS EXSYS

6-24 O FFICE _________ S YSTEMS Office _________ Systems increase productivity within the office setting Supported Activities Scheduling Resources Examples: electronic calendars Document _________ Examples: software (word processing and desktop publishing); hardware (printers) Communicating Examples: , _________ _________, videoconferencing and groupware

6-25 C OLLABORATIVE T ECHS (G ROUPWARE ) Groupware enables people to work together more effectively Supported Activities These systems come in two types: _________ 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 _________ Groupware – Systems that allow and support simultaneous group interactions including shared whiteboards, electronic meeting support systems, video communication systems

6-26 S YSTEM D ESCRIPTION : G ROUPWARE

6-27 S YSTEM D ESCRIPTION : G ROUPWARE B ENEFITS

6-28 S YSTEM D ESCRIPTION : F UNCTIONAL A REA I NFO S YSTEMS ___________ 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 ___________ Operations Peppers & Rogers Workforce absenteeism daytraders

6-29 G LOBAL I NFORMATION S YSTEMS 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 Global Information Systems Collaborative Information Systems

6-30 S YSTEM E XAMPLES : G LOBAL I NFORMATION S YSTEMS