ORGANIZATIONAL INFORMATION SYSTEMS

Chapter 6

2

WHAT DO MANAGERS DO?

They make _________

_________ ___________= better managers

The amount of information people must understand to make _________ , solve problems, and find opportunities is growing exponentially

Fire your Customer

3

PROGRAMMED VERSUS NONPROGRAMMED DECISIONS

_________ decisions Decisions made using a rule, procedure, or quantitative method Easy to computerize using traditional information systems

_________ _________ decisions Decision that deals with unusual or exceptional situations Not easily quantifiable

4

TYPES OF DECISIONS

• _________ • How many workers to staff

line A– What is the EOQ for raw

material Z– How many turbines to power

Lethbridge?

• _________ • What are the benefits of

merging with XYZ – How will consumer react if

we lower the price by 10%– What are the benefits of

MacDonald's opening up Hotels

6-5

LEVELS OF THE ORGANIZATION

6-6

WHO, WHAT, WHY: ORGANIZATIONAL LEVEL

6-7

WHO, WHAT, WHY: MANAGERIAL LEVEL

6-8

WHO, WHAT, WHY: EXECUTIVE LEVEL

6-9

BASIC SYSTEMS MODEL

6-10

SYSTEM TYPE: TRANSACTION PROCESSING SYSTEMS

6-11

SYSTEM DESCRIPTION: TRANSACTION PROCESSING SYSTEMS

TPSs are designed to process business events and transactions

Architecture Components• _________ Documents• Data Entry Methods

• Manual – • _________ –(e.g. a barcode scanner)• Fully Automated – (e.g. automatic orders from inventory

systems)

• Processing• _________ • Batch –

6-12

SYSTEM EXAMPLE: PAYROLL SYSTEM (TPS)Global logistics

6-13

SYSTEM TYPE: MANAGEMENT INFORMATION SYSTEM

6-14

SYSTEM DESCRIPTION: MANAGEMENT INFORMATION SYSTEMS

MISs are used by _________ employees to support recurring decision making in managing a function or the entire business

Supported Activities• Scheduled Reporting - produced automatically based on a

predetermined schedule. Some include:• _________– e.g. Monthly Sales Report• Exception – e.g. Monthly Late Shipments• _________– printed only if needed

• Ad Hoc Reporting – _________ reports (e.g. sales data by person report to identify issues)

6-15

SYSTEM ARCHITECTURE: MANAGEMENT INFORMATION SYSTEM

6-16

SYSTEM TYPE: EXECUTIVE INFORMATION SYSTEM (EIS)

6-17

SYSTEM DESCRIPTION: EXECUTIVE INFORMATION SYSTEMS

EISs, also called Executive Support Systems (ESS), information systems to support _________ decision-making

System Detailsuse graphical user interfaces to display consolidated information :

• _________ Data -• _________–

Supported Activities• Executive _________ Making• Long-range Strategic Planning• _________ of Internal and External Events• Crisis Management• _________ and Labour Relations

6-18

SYSTEM ARCHITECTURE: EXECUTIVE INFORMATION SYSTEMS

Digital dashboard

6-19

SYSTEMS THAT SPAN ORGANIZATIONAL BOUNDARIES

6-20

DECISION SUPPORT SYSTEMS

Decision Support Systemssystems designed to support _________ level employees in organizational decision making

System Details use computational software to construct models for analysis (_________ _________ )to solve semi-structured problems (e.g. sales or resource forecasts)

Supported Activities: “_________ ” analysis – changing one or more variables in the model to observe the effect (e.g. What is the payment if the interest rate increases by 1% ?)

6-21

COMMON DECISION SUPPORT SYSTEMS

6-22

EXPERT SYSTEMS

Expert Systemsused by _________ level employees to make decisions usually made by more experienced employees or an expert in the field

System Details use _________ engines that match facts and rules, sequence questions for the user, draw a conclusion, and present a recommendation to the user

Supported Activities:These systems support many activities, including:

• _________ Diagnosis• Machine Configuration• _________ Planning• Software Application Assistance (help wizards)

6-23

SYSTEM EXAMPLE – WEB-BASED EXPERT SYSTEMS EXSYS

6-24

OFFICE _________ SYSTEMS

Office _________ Systemsincrease productivity within the office setting

Supported Activities• Scheduling Resources

Examples: electronic calendars• Document _________

Examples: software (word processing and desktop publishing); hardware (printers)

• CommunicatingExamples: e-mail, _________ _________ , videoconferencing and groupware

6-25

COLLABORATIVE TECHS (GROUPWARE)

Groupwareenables people to work together more effectively

Supported Activities

These systems come in two types:• _________ Groupware – Systems that do not require

users to be on the system working at the same time, including: e-mail, newsgroups, workflow automation, group calendars, and collaborative writing tools

• _________ Groupware – Systems that allow and support simultaneous group interactions including shared whiteboards, electronic meeting support systems, video communication systems

6-26

SYSTEM DESCRIPTION: GROUPWARE

6-27

SYSTEM DESCRIPTION: GROUPWARE BENEFITS

6-28

SYSTEM DESCRIPTION: FUNCTIONAL AREA INFO SYSTEMS

___________ Area Information SystemsCross-organizational information systems are designed to support a specific functional area

Supported ActivitiesThe following functional organizations have systems to support their operational and managerial activities

• Accounting• ___________• ___________• ___________ • Operations Peppers &

Rogers

Workforce absenteeism

daytraders

6-29

GLOBAL INFORMATION SYSTEMS

Global Information SystemsA variety of special-class systems used to support organizations that operate globally

Supported ActivitiesDepending on the organization, one or more of these systems may be required (definitions on next slide):

• International Accounting Systems• Transnational Information Systems• Multinational Information Systems• Global Information Systems• Collaborative Information Systems

6-30

SYSTEM EXAMPLES: GLOBAL INFORMATION SYSTEMS