1 Objectives To understand the role of IS within organisations To understand the diversity of types of IS within a business / organisation To understand relationships between IS and business functions

2 IS at the Organisational Level DATA WORKERS KIND OF SYSTEM GROUPS SERVED STRATEGIC LEVEL SENIOR MANAGERS STRATEGIC LEVEL SENIOR MANAGERS MANAGEMENT LEVEL MIDDLE MANAGERS OPERATIONAL OPERATIONAL LEVEL MANAGERS OPERATIONAL OPERATIONAL LEVEL MANAGERS KNOWLEDGE LEVEL KNOWLEDGE & SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN RESOURCESMARKETING

3 IS at the Organisational Level Operational-level –Elementary activities and routine transactions –Data current and accurate Knowledge-level –Support knowledge and data workers –Integrate new knowledge into the business –Office automation

4 IS at the Organisational Level Management-level –Periodic monitoring, control, decision- making and administration –Is the business working well? Strategic-level –Long-term (e.g. 5 year) planning and strategy –Internal and external information

5 question Discuss the different IS used at different organisational levels?

6 Types of IS Transaction Processing Systems (TPS) Knowledge Work Systems (KWS) Office Automation Systems (OAS) Management Information Systems (MIS) Decision-support Systems (DSS) Executive Support Systems (ESS)

7 Transaction Processing Systems Operational-level Systems Order tracking Machine control Securities trading PayrollCompensati on Order processing Plant scheduling Cash management Accounts payable Training and developme nt Material movement and control Accounts receivabl e Employee records Sales and Marketing ManufacturingFinanceAccountin g Human Resources Systems that perform and record daily routine transactions necessary for business

8 Knowledge Work Systems Knowledge-level Systems Engineering workstations Graphics workstationsManagerial workstations Systems that aid the creation and integration of new knowledge into an organisation

9 Office Automation Systems Knowledge-level Systems Word processingDocument imaging / electronic calendars Systems that are designed to increase the productivity of data workers

10 Management Information Systems Management-level Systems Sales management Inventory control Annual budgeting Capital investment Relocation analysis Sales and Marketing ManufacturingFinanceAccountingHuman Resources Systems that serve planning, control and decision- making through routine summary and reports

11 Decision-support Systems Management-level Systems Sales region analysis Production scheduling Cost analysisPricing / profitabili ty analysis Contract cost analysis Sales and Marketing ManufacturingFinanceAccountingHuman Resources Systems that combine data, models and analysis tools for non-routine decision-making

12 Executive Support Systems Strategic-level Systems 5-year sales trend forecasting 5-year operating plan 5-year budget forecasting Profit planning Personnel planning Sales and Marketing ManufacturingFinanceAccountingHuman Resources Systems that support non-routine decision-making through advanced graphics and communications

13 Interrelationships TPS major producer of data External data also required for MIS, DSS and ESS Typical loose coupling of systems ‘Digital firms’ have tighter integration ESS TPS KWS OAS DSSMIS

14 Functional Examples Examples of IS by function: –Sales and marketing –Manufacturing and production –Finance and accounting –Human resources

15 Sales and Marketing SystemDescriptionOrganisational Level Order processingEnter, process and track orders Operational Market analysisIdentify customers and markets Knowledge Pricing analysisDetermine pricesManagement Sales trendsPrepare 5 year forecasts Strategic

16 Manufacturing and Production SystemDescriptionOrganisational Level Machine controlControl actions of equipment Operational Computer-aided design (CAD) Design new products Knowledge Production planningDecide number and schedule of products Management Facilities locationDecide where to locate facilities Strategic

17 Finance and Accounting SystemDescriptionOrganisational Level Accounts receivable Track money owed to firm Operational Portfolio analysisDesign firm’s investments Knowledge BudgetingPrepare short-term budgets Management Profit planningPlan long-term profits Strategic

18 Human Resources SystemDescriptionOrganisational Level Training and development Track training, skills and appraisals Operational Career pathsDesign employee career paths Knowledge Compensation analysis Monitor wages, salaries and benefits Management Human resources planning Plan long-term workforce needs Strategic

19 Summary Looked at the role of IS within organisations –At organisational levels Looked at the diversity of types of IS within a business / organisation –Six different functional types of IS Looked at relationships between IS and business functions –Examples by functional area