Chapter 6 Organizational Information Systems www.prenhall.com/jessup

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

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

Levels of the Organization

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

Who, What, Why: Organizational Level

Who, What, Why: Managerial Level

Who, What, Why: Executive Level

Basic Systems Model

System Type: Transaction Processing Systems

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

System Example: Payroll System (TPS)

System Architecture: Transaction Processing System

System Type: Management Information System

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)

System Architecture: Management Information System

System Type: Executive Information System (EIS)

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

System Architecture: Executive Information Systems

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

Systems That Span Organizational Boundaries

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%)

Characteristics of Decision Support Systems

System Description: Common Decision Support Systems

System Architecture: Decision Support Systems

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

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)

System Architecture: Expert Systems

System Example – Web-based Expert Systems EXSYS

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: e-mail, voice mail, videoconferencing and groupware

System Architecture: Office Automation Systems

System Example – Scheduling System

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

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: e-mail, 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

System Description: Groupware

System Description: Groupware Benefits

System Examples – Groupware

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

System Description: Functional Area Info Systems

System Examples: Functional Area Info Systems

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

System Examples: Global Information Systems