1. IT in the Modern Organization

2. 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

3. 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

4. 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

5. 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.

6. 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

7. 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

8. 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

9. 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.

10. 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.

11. 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.

12. 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

13. 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

14. 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

15. 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.

16. 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

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

18. 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.

19. 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.

20. 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

21. 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

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

23. 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

24. 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??

25. 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

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

27. How Information Systems Support People in Organizations

28. 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.

29. 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

30. 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

31. 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

32. 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.

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

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

35. 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?

36. 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

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