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Chapter 6Organizational

Information Systems

PowerPoint PresentationPowerPoint Presentation

Jack Van DeventerJack Van Deventer

Ward M. EagenWard M. Eagen

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Decision-Making Levels of an Organization

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General Types of Information Systems

Transaction Processing Systems (TPS)Transaction Processing Systems (TPS) Management Information Systems (MIS)Management Information Systems (MIS) Decision Support Systems (DSS)Decision Support Systems (DSS) Executive Support Systems (ESS) or Executive Support Systems (ESS) or

Executive Information Systems Executive Information Systems Expert SystemsExpert Systems Office Automation SystemsOffice Automation Systems

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General Types of Information Systems

Transaction Processing Systems (TPS)Transaction Processing Systems (TPS) To record transactionsTo record transactions Used at Used at operationaloperational level of the level of the

organizationorganization Goal: To automate repetitive information Goal: To automate repetitive information

processing activitiesprocessing activitiesIncrease speedIncrease speedIncrease accuracyIncrease accuracyGreater efficiencyGreater efficiency

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General Types of Information Systems

Transaction Processing Systems (TPS)Transaction Processing Systems (TPS) Examples:Examples:

PayrollPayrollSales and orderingSales and orderingInventoryInventoryPurchasing, receiving, shippingPurchasing, receiving, shippingAccounts payable and receivableAccounts payable and receivable

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General Types of Information Systems

Management Information Systems (MIS)Management Information Systems (MIS) Used at Used at managerialmanagerial level of the organization level of the organization Examples:Examples:

Sales forecastingSales forecastingFinancial management and forecastingFinancial management and forecastingManufacturing planning and schedulingManufacturing planning and schedulingInventory management and planningInventory management and planningAdvertising and product pricingAdvertising and product pricing

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Information Systems that Span Organizational Boundaries

Decision Support Systems (DSS)Decision Support Systems (DSS) Designed to support organizational decision Designed to support organizational decision

making making (at all levels but mostly at the (at all levels but mostly at the ManagerialManagerial level) level)

““What-if” analysisWhat-if” analysis Example of a DSS tool: Microsoft ExcelExample of a DSS tool: Microsoft Excel Text and graphsText and graphs

Models for each of the functional areasModels for each of the functional areas Accounting, finance, personnel, Purchasing, etc.Accounting, finance, personnel, Purchasing, etc.

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General Types of Information Systems

Executive Support Systems (ESS), or Executive Support Systems (ESS), or Executive Information Systems (EIS)Executive Information Systems (EIS) Used at Used at executiveexecutive level of the organization level of the organization Examples:Examples:

Executive-level decision makingExecutive-level decision makingLong-range and strategic planningLong-range and strategic planningMonitoring internal and external eventsMonitoring internal and external eventsCrisis managementCrisis managementStaffing and labour relationsStaffing and labour relations

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Information Systems that Span Organizational Boundaries

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FunctionalFunctional Area Information Systems Area Information Systems

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Used to:Used to:Share messages, documents, reports, Share messages, documents, reports,

data/info, schedulesdata/info, schedules Virtual teamsVirtual teams VideoconferencingVideoconferencing

Desktop VideoconferencingDesktop Videoconferencing• e.g. Microsoft’s e.g. Microsoft’s NetmeetingNetmeeting

SMART BoardsSMART Boards GroupwareGroupware

• e.g. e.g. Lotus NotesLotus Notes (now owned by IBM) (now owned by IBM)

Electronic Meeting Systems (EMSs)Electronic Meeting Systems (EMSs)

Collaboration Technologies

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International ISInternational IS supports cross-border transactionssupports cross-border transactions

• e.g. Beneton’s TPS (central located in Italy)e.g. Beneton’s TPS (central located in Italy)• e.g. Wal-Mart TPS/Inventory/Logistics & Supply Mgmt e.g. Wal-Mart TPS/Inventory/Logistics & Supply Mgmt

SystemSystem Transnational ISTransnational IS

Allows different parties/users to conduct Allows different parties/users to conduct transactions simultaneouslytransactions simultaneously

• e.g. Foreign-Exchange (currency) traderse.g. Foreign-Exchange (currency) traders Multinational ISMultinational IS

Decentralises data processing locally to respond Decentralises data processing locally to respond to local rules & regulationsto local rules & regulations

• e.g. Accounting Information System (following that e.g. Accounting Information System (following that country’s Accounting Rules & Principles)country’s Accounting Rules & Principles)

Global Information SystemsWHY? Because people, firms, & systems need to communicate and share over great distances and different time zones

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Global ISGlobal IS Uses centralised networks to handle Uses centralised networks to handle

transactions coming from anywhere in the transactions coming from anywhere in the worldworld

• e.g. General Motors e.g. General Motors Global Inventory Management Global Inventory Management SystemSystem (consolidates all inventory information from (consolidates all inventory information from around the worldaround the world

Collaborative ISCollaborative IS Integrates different applicationsIntegrates different applications

• e.g. International Airline Reservation Systems e.g. International Airline Reservation Systems GalileoGalileo and and ApolloApollo used by multiple airlines and used by multiple airlines and travel agents to “simultaneously book international travel agents to “simultaneously book international flightsflights

Global Information Systems

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Brief Case 1: Shell Canada

Shell Canada’s easyPAY RFID payment Shell Canada’s easyPAY RFID payment technology was rolled out in 2001technology was rolled out in 2001

Shell conducted extensive research that revealed Shell conducted extensive research that revealed speed and convenience are becoming increasingly speed and convenience are becoming increasingly important factors for their consumersimportant factors for their consumers

The RFID technology allows the customer to The RFID technology allows the customer to bypass the lucrative service retail outlets, however bypass the lucrative service retail outlets, however positive customer reaction outweighs any potential positive customer reaction outweighs any potential loss of in-store salesloss of in-store sales

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Brief Case 3: University of Victoria Screening graduate school applications can be Screening graduate school applications can be

very resource intensive and inconsistentvery resource intensive and inconsistent The University of Victoria has implemented an The University of Victoria has implemented an

expert system by Acquired Intelligence Inc. which expert system by Acquired Intelligence Inc. which screens applicants based on a set of predefined screens applicants based on a set of predefined questions and rates them for further reviewquestions and rates them for further review

Students’ ratings place them in categories such as Students’ ratings place them in categories such as ‘accept,’ ‘reject,’ or ‘discuss,’ which saves ‘accept,’ ‘reject,’ or ‘discuss,’ which saves committee members substantial timecommittee members substantial time