2 Chapter 6 ObjectivesUnderstand characteristics of operational, managerial, and executive information systemsUnderstand characteristics of transaction processing systems, management information systems, and executive information systemsUnderstand characteristics of information systems that span organizational boundaries
3 Types of Information Systems An organization consists of many people with different interests, specialties, and levels.How a single information system can provide all the information that an organization needs?There is no such single information system.An organization should have different info systems for different interests, specialties, and levels.
7 General Types of Information Systems Transaction Processing Systems (TPSs)TransactionsUsed at Operational level of the organizationGoal: to automate repetitive information processing activitiesIncrease speedIncrease accuracyGreater efficiency
8 General Types of Information Systems Transaction Processing Systems (TPSs)Online processingBatch processingData inputManual data entrySemiautomated data entryFully automated data entry
9 General Types of Information Systems Transaction Processing Systems (TPSs)Examples:PayrollSales and orderingInventoryPurchasing, receiving, shippingAccounts payable and receivable
10 General Types of Information Systems Management Information Systems (MISs)Two Types:Management of IS in organizationsSpecific information systems for mid-level managersUsed at managerial level of the organization
11 General Types of Information Systems Management Information System It helps the middle managers with reports, with on-line access to the organization’s current performance and historical records.It primarily serves the functions of planning, controlling, decision-making at the management level.Generally it depends on TPS for data.It summarizes and reports on the basic operations of the organization.It usually serve managers interested in weekly, monthly, and yearly results, not day-to-day activities.It generally addresses structured questions that are known in advance.It is not flexible and have little analytical capability.
12 General Types of Information Systems Management Information System What are the functions of management-level info system?=> Helps middle managers for monitoring, controlling, decision-making, and administrative activities.=> Generally it provides periodic reports rather than instant information=> However, some systems supports nonroutine decision making.It should answer the questions:=> Relocation Control System: It reports on the total moving, house-hunting, and home financing costs for all employees in the organization. It will also notify if actual costs exceed the budgets.=> What would happen to our return on investment if an organization schedule were delayed for six months?
13 General Types of Information Systems Management Information SystemsTypes of reports:Scheduled reportKey-indicator reportException reportDrill-down reportAd hoc report
14 General Types of Information Systems Management Information Systems (MISs)Examples:Sales forecastingFinancial management and forecastingManufacturing planning and schedulingInventory management and planningAdvertising and product pricing
15 General Types of Information Systems Executive Information Systems It helps senior managers.It addresses unstructured decisions.It provides a generalized computing & telecommunications capability to solve problems.It employs the most advanced graphics software.It can deliver graphs & (historical data and competitive data) from internal corporate systems and external databases.Senior managers often have little experience with computer-based information systems, ESS should have easy-to-use graphic interfaces.
16 General Types of Information Systems Executive Information Systems (EISs)Used at executive level of the organizationHighly aggregated formData typesSoft data – news and nonanalytical dataHard data – facts and numbers
17 General Types of Information Systems Executive Information Systems (EISs)Examples:Executive-level decision makingLong-range and strategic planningMonitoring internal and external eventsCrisis managementStaffing and labor relations
18 Information Systems that Span Organizational Boundaries
19 Information Systems that Span Organizational Boundaries Decision Support Systems (DSSs)Designed to support organizational decision making“What-if” analysisExample of a DSS tool: Microsoft ExcelText and graphsModels for each of the functional areasAccounting, finance, personnel, etc.
20 Information Systems that Span Organizational Boundaries Expert Systems (ESs)Mimics human expertise by manipulating knowledgeRules (If-then)Inferencing
21 Information Systems that Span Organizational Boundaries Office Automation Systems (OASs)Examples:Communicating and schedulingDocument preparationAnalyzing dataConsolidating information
22 Relationship of Systems to one another: Integration ESSMISDSSOASTPS
23 Information Systems that Span Organizational Boundaries Collaboration TechnologiesVirtual teamsVideoconferencingGroupwareElectronic Meeting Systems (EMSs)
24 Information Systems that Span Organizational Boundaries Functional Area Information SystemsGeared toward specific areas in the company:Human ResourcesBenefitsMarketing