IT in the Modern Organization

IT in the Modern Organization Information Infrastructures Architecture Transaction Processing Systems Management Information Systems Support Systems Intelligent Systems Integrating Support (and Other) Systems Basic Concepts

Basic Concepts Information Infrastructure Consists of physical facilities, services & management that support all computing resources in an organization 5 major components Computer hardware, general purpose software, Networks and communication facilities including Internet) Databases Information management personnel Also includes integration, operation, documentation, maintenance and management

Basic Concepts Plan of the information requirements in an organization Information Architecture Plan of the information requirements in an organization A guide for current operations and a blueprint for future directions Ensure the organization’s IT meets the organization’s strategic business needs

Basic Concepts Preparing the information architecture Business needs for information The organizational objectives and problems The contribution that IT can make The potential users of IT Existing and planned information infrastructure and applications in the organization Includes how the planned system and its applications can be combined among themselves or with future systems to support the organization information needs.

Basic Concepts Transaction Processing Systems An IS that supports routine and repetitive tasks e.g. employees payment, customers’ purchase orders etc. TPS supports the monitoring, collection, storage, processing and dissemination of the organization’s basic business transactions Provides input data for many applications, including computerized decision making

Basic Concepts Several TPS can exist in one company Transaction Processing Systems Several TPS can exist in one company Critical to the success of an organization TPS support core business operations purchasing of materials, billing, payroll and supplies to customers

Routine Business Transactions in a Factory Basic Concepts Routine Business Transactions in a Factory Payroll Monitor employee time cards Track employee pay and deductions Issues payroll checks Purchasing Issue purchase orders Accept and records deliveries Pay accounts payable Sales Keep sales records Issues invoices and billings Track accounts receivable Keep shipping records Manufacturing Prepare production reports Prepare quality-control reports Finance and Accounting Prepare and issue financial statements Maintain tax records Monitor and pay expense accounts Inventory Management Track materials usage Monitor inventory levels Reorder inventory as needed

Management Information Systems Basic Concepts Management Information Systems Systems that accessed, organized, summarized and displayed information for supporting routine decision making in the functional areas Geared towards middle managers Ensure 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.

Major output of a functional Basic Concepts Major output of a functional MIS Output Description Statistical summaries Summaries of raw data; daily production, weekly and monthly usage of electricity Exception reports Highlights of data items that are larger or smaller than designated levels Periodic reports Statistical summaries and exception reports provided at scheduled, regular periods Ad-hoc reports Special, unscheduled reports provided on demand Comparative analysis Performance comparison to that of competitors, past performance or industry standards Projections Advance estimates of trends in future sales, cash flows, market share, etc.

Basic Concepts Support Systems Provide computerized support for complex, sometime nonroutine decisions. Expanded in 2 directions Executive Information Systems(EISs) to support senior executives Group Support Systems(GSSs) to support people working in special decision making situation or meeting, in single/different locations Groupware - commercial software that support people working in groups.

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 it Sales forecasting problem Product scheduling problem Save company time and money

Basic Concepts Intelligent Systems Systems that replicate the thought processes of humans Expert systems - advisory systems that provide the stored knowledge of experts to nonexperts. Intelligent system (1980s) - systems with learning capabilities Enables the computers to incorporate new information or feedback and update their knowledge Artificial intelligence Processing vague information, make predictions or recognizing patterns. E.g. expert system, artificial neural networks

Class discussion Intelligent Systems Identify any intelligent systems that you would need in your organization refer pg 36, box 2.2 Pg 43 box 2.3

Integrating Support Systems Basic Concepts Integrating Support Systems Systems that integrates two or more information systems- e.g. TPS and MIS E.g. DSS combined with Expert Systems can support more decision making systems Enterprise Resources Planning system (ERP) Plans and manages all organization’s resources and their use.

Evolution of Computer-based IS Client/server, Executive Information systems, PCs, AI, groupware Integration, Intelligent systems, The web, intranets, Extranets, software ERP Web services M-comrce & I-comrce Supply chain integration Data w/house & mining; Very intelligent systems Scientific military applications MIS,office automation Routine business Applications,TPS DSS, LAN 1940s 1950s 1960s 1970s 1980s 1990s 2000s

Organization: Structure and IT Support Accounting Finance Marketing and Sales Production or Operations Management(POM) Human Resources Management Information Systems Organizational structure

Organization: Structure and IT Support Mapping IS to Organizational Structure IT 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.

Organization: Structure and IT Support Departmental IS Plant IS Divisional IS Enterprisewide IS Inter-organizational IS IS that reflects the dept. they support Related to functional area Collections of all dept. IS Example of Application systems Connects all plant’s systems With IS of other systems, Permits communications & Collaboration among plants & other units in the division Connects all divisions and other units of an organization Connects two or more Organizations e.g. airline syst.

IT Support at Different Organizational Levels Top management Long-term planning decision Deal with organization’s objectives as a whole use executive information systems for decision making and forecasting Strategic decisions Tactical or managerial decisions Middle managers Short-term plans, procedures and policies and policies Involve implementing the long-term strategies Use MIS, for primary support along with DSS

IT Support at Different Organizational Levels Line managers and operators Day-to-day decisions that aim to keep the organization’s operations moving smoothly Use TPS to capture the operational information relevant for decision making at this level. Operational decisions

How Information Systems Support People in Organizations, (continued) Identify who’s who in your organization…

IT Support at Different Organizational Levels Knowledge workers Responsible for finding or developing new knowledge for organization and integrating it with existing knowledge Major users of the internet Supported by internet, expert system, computer aided design, and all new technologies. Engineers, financial and marketing analyst, production planners, lawyers and accountants

IT Support at Different Organizational Levels Knowledge workers IT can integrate the expertise of knowledge workers into an organization and assist in improving worker performance through the use of Intelligent Systems How productivity increased by used of the expert systems??

IT Support at Different Organizational Levels Organizational Knowledge Base The 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

IT Support at Different Organizational Levels Knowledge Management The process of acquiring, maintaining and disseminating organizational knowledge, supported by various IS

How Information Systems Support People in Organizations

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.

Main types of IT support systems Employees supported Office automation Office workers Communication All employees Group support People working in groups Decision support Decision makers, managers Executive information Executives, top managers Intelligent systems Knowledge workers TPS Line managers and employees MIS Middle management

Role of the IS Department Managing systems development and systems project management Managing computer operations Staffing, training and developing skills Providing technical services Initiating and designing specific strategic IS Infrastructure planning, development and control Incorporate the internet and e-commerce into the business Managing system integration including internet, intranets and extranets Educating the non-IS managers about IT, etc Refer table 2.4 pg 45

IT people and Careers IT people Task Programmer Modify computer programs or write programs to satisfy user requirement System analyst/ developer Analyze & design IS by using specialized and and design tools Telecommunication/ Network specialist Specialist in handling telecommunication or network problem System operations specialist Keep system up & running, has specialization in computing hardware and softwares as well as some aspects of networks Business analyst Involved in development of new IS. As a translator between IS developers and users

IT people and Careers IT people Task Database administrator Design and manage data/ database organization efficiently and effectively. Has knowledge in database software and hardware Webmaster/ e-commerce specialist Manage company’s website and business transactions through the internet, IT support and supply chain.

Class discussion Discuss the characteristics and roles of knowledge workers Discuss the relationship between TPS, MIS and DSS

Class discussion For next class… How is productivity and efficiency increased by used of Intelligent Systems in your workplace??

What system do you think.. You need most in your organization??? Class discussion What system do you think.. You need most in your organization??? And… why?

Next week group presentation Computer Hardware Content: The significance of hardware The central processing unit (CPU) Computer memory Computer hierarchy Input technologies Output technologies Strategic hardware issues

Next week group presentation Computer Software Content: Software history and significance System software Application software Software issues Programming languages Enterprise