1111 CHAPTER INFORMATION SYSTEMS

© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved Competencies Explain how organizations can be structured according to the five functions and three management levels Describe how information flows in an organization Distinguish among the different systems

© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved Competencies cont. Distinguish between office automation systems and knowledge work systems Explain the difference between data workers and knowledge workers

© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved Organizational Information Flow

© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved Functions Accounting Marketing Human Resources Production Research and Development

© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved Management Levels

© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved Information Flow Top managerial-level Vertical, horizontal & external Middle managerial level Vertical & horizontal Supervisory-level Vertical only

© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved Computer-Based Information Systems

© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved Transaction Processing Systems Tracks operations Creates databases Also called data processing systems (DPS)

© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved Accounting Activities TPS Sales order processing Accounts receivable Inventory control Accounts payable Payroll General ledger

© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved Management Information Systems MIS Produces standardized reports Periodic Exception Demand Uses databases Integrates data across areas

© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved Decision Support Systems DSS Enables managers to get answers to problems Group decision support system (GDSS) Supports DSS Addresses large problems Analyzes data

© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved DSS Parts User Someone who makes decisions Could be you System software Operating system Easy to use Data Internal & external Decision models

© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved Decision Models Strategic models Tactical models Operational models

© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved Executive Support Systems ESS Designed for top management Consists of sophisticated software Access about a company's performance

© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved Other Information Systems Information workers Data workers Secretaries Clerks Knowledge workers Engineers Scientist Office automation systems Project managers Videoconferencing systems Knowledge work systems Use specialized systems CAD/CAM

© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved A Look to the Future Information Overload Information overload Could have a negative effect on getting work done How to handle Be selective Remove Protect Be brief Stop spam Don't respond

© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved Key Terms accounting (302) accounts payable (308) accounts receivable (308) balance sheet (309) computer aided design/computer aided manufacturing (CAD/CAM) (314) data (311) data processing system (DPS) (308) data worker (313) decision model (311) decision support system (DSS) (307) demand report (310) exception report (310) executive information system (EIS) (307) executive support system (ESS) (307)

© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved Key Terms external data (311) general ledger (309) group decision support system (GDSS) (310) human resources (304) income statement (309) information system (306) information worker (313) internal data (311) inventory (308) inventory control system (308) knowledge worker (313) knowledge work system (KWS) (314) management information system (MIS) (307) marketing (304)

© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved Key Terms middle management (304) office automation system (OAS) (314) operational model (311) payroll (308) periodic report (310) production (304) project manager (314) purchase order (308) purchasing (308) research (304) sales order processing (308) strategic model (311) supervisor (304) system software (311) tactical model (311)

© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved Key Terms top management (304) transaction processing system (TPS) (307) user (311) videoconferencing system (314)

© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved FAQs List the five basic functions of an organization. Name the three management levels. Which information system produces summarized, structured reports? Which system would be used by a company CEO?

© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved Discussion Questions Define the following terms - TPS, MIS, DSS, and ESS. What is the purpose of a Transaction processing system? Describe one of the information systems listed above.