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Chapter 6Chapter 6

OrganizationalOrganizationalInformation SystemsInformation Systems

Information Systems Today

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Chapter 6 ObjectivesChapter 6 Objectives

Understand characteristics of operational, managerial, and executive information systems

Understand characteristics of transaction processing systems, management information systems, and executive information systems

Understand characteristics of information systems that span organizational boundaries

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Decision-Making Levels of an OrganizationDecision-Making Levels of an Organization

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Decision-Making Levels of an OrganizationDecision-Making Levels of an Organization

Executive level (top) Long-term decisions Unstructured decisions

Managerial level (middle) Decisions covering weeks and months Semistructured decisions

Operational level (bottom) Day-to-day decisions Structured decisions

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Monitor elementary activities and daily transactions of the organization

support the monitoring, controlling, decision-making and administrative activities of middle managers

support the long-range planning activities of senior management

Operational-level system

Management-level system

Strategic-level system

Different Kinds of Systems

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Four major Types of systemsFour major Types of systems

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INFO SYSTEMS, LEVELS, DECISIONS

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1. 1. Transaction Processing System Transaction Processing System (TPS)(TPS)

Computerized systems that perform and record the daily Computerized systems that perform and record the daily routine transactionsroutine transactions

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Goal to automate repetitive information processing activities

Increase speed Increase accuracy Greater efficiency

……TPSTPS

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Source documents can be processed: As they are created Online processing Or, in batches Batch processing:

Information can be entered into TPS as: Manual data entry: by a person Semi-automated data entry: person will entered,

whereas the system will scanned check out the information, then continue the process automatically

Fully automated data entry: doesn’t require any human intervention

……TPSTPS

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Payroll Sales and ordering Inventory Purchasing, receiving, shipping Accounts payable and receivable

Examples of TPSExamples of TPS

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2. Management Information System (MIS)2. Management Information System (MIS)

• It serves functions of planning, controlling and decision making by providing routine summary and exception reports

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Scheduled report Key-indicator report Exception report Drill-down report Ad hoc report

……MIS ReportsMIS Reports

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Typical MISTypical MIS

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Simple Report Produced by MISSimple Report Produced by MIS

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3. Executive Support Systems (ESS)3. Executive Support Systems (ESS)

• Information System at the organization’s strategic level designed to address unstructured decision making through advanced graphics and communications

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Typical ESSTypical ESS

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Executive-level decision making Long-range and strategic planning Monitoring internal and external events Crisis management Staffing and labor relations

……EIS examplesEIS examples

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Information Systems that Span Information Systems that Span Organizational BoundariesOrganizational Boundaries

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4. Decision Support System (DSS)4. Decision Support System (DSS) Information System that Serves management level of the

organization Combines data and sophisticated analytical models or data analysis

tools to support semi-structured and unstructured decision making It is user-friendly, so the user can change assumptions, ask new

question and include new data

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Typical DSSTypical DSS

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Designed to support organizational decision making

“What-if” analysisExample of a DSS tool: Microsoft

ExcelText and graphs

Models for each of the functional areasAccounting, finance, personnel, etc.

……DSSDSS

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Mimics human expertise by manipulating knowledge

Rules (If-then) Inferencing

Expert systemsExpert systems

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Communicating and scheduling Document preparation Analyzing data Consolidating information

Office Automation SystemsOffice Automation SystemsOASOAS

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Virtual teams Videoconferencing Groupware Electronic Meeting Systems (EMSs)

Collaborative TechnologiesCollaborative Technologies

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Geared toward specific areas in the company: Human Resources Benefits Marketing

Functional Area ISFunctional Area IS

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International ISTransnational ISMultinational ISGlobal IS

Global ISGlobal IS