Transcript INFORMATION SYSTEMS IN THE ENTERPRISE

Chapter 5
IS AN ORGANIZATIONS
Foundations of information systems
BIS 1202
Overview
Types of Information Systems
 Inter-relationship between the various
types of Information Systems.
 IS
on different levels of an
organization
 Role of IS in an organization
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AIM
By the end of this lecture, you should be
able to:.
 Recognise the different types of
information systems.
 Understand the relationships between ISs.
 Relate IS to business functions and
processes
Types of IS
Six categories of Information systems:
Transaction processing systems (TPS)
Management information systems
(MIS)
Office automation systems (OAS)
Knowledge work systems (KWS)
Decision support systems (DSS)
Executive support systems (EES)
TYPES OF INFORMATION SYSTEMS
KIND OF SYSTEM
GROUPS SERVED
STRATEGIC LEVEL
SENIOR
MANAGERS
MANAGEMENT LEVEL
MIDDLE
MANAGERS
KNOWLEDGE LEVEL
KNOWLEDGE &
DATA WORKERS
OPERATIONAL
LEVEL
2.5
SALES &
MARKETING
OPERATIONAL MGRS
MANUFACTURING
FINANCE
ACCOUNTING
HUMAN
RESOURCES
…Types of IS
Transaction Processing Systems (TPS)
Operational managers need systems that keep
track of the elementary activities and transactions
of the organizations such as sales, receipts, cash
deposits, payroll, credit decisions and the flow of
materials in a factory.
 Transaction processing systems (TPS) provide this
kind of information.
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Transaction Processing Systems
Is a computerized system that performs and
records the daily routine transactions necessary to
conduct business such as sales orders entry, hotel
reservations, payroll, employee recording keeping
and shipping.
 The principal purpose of these systems at this level
is to answer routine questions and to track the flow
of transactions through the organizations. How
many parts are in the inventory? What happened
to Mr. Bernard's top up payment?
 To answer these kinds of questions , information
generally must be easily available, current and
accurate
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Transaction Processing Systems
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It records all of the daily routine transactions that
take place within organization.
It is used primarily by clerks and operations staffs
that either input or maintain the data on the system
The TPS records the data from everyday operations
throughout every division or dept in the organization.
Each dept is tied together thru the TPS to give a clear
cut set of information to management level thru out
the company.
TPS are also major producers of information for other
types of systems.
Office automation systems (OAS)
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Is a computerized package designed to increase the
productivity of data workers by providing access to
basic systems such as electronic mail and word
processing.
The main aim of OAS is to capture and then distribute
knowledge around an organization.
OAS is used by data workers to fulfill the coordination
and communication functions vital to the company.
Data workers are employed to process data and
information( accountants ,secretaries or managers whose
jobs are principally to use , manipulate or disseminate
information.)
Example document imaging systems convert documents
and images into digital form so that that they can be
stored and accessed by the computer.
Knowledge Work Systems(KWS)
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A knowledge work system is a computerized package
designed to provide knowledge workers with the means
to create and integrate new knowledge into the
organization.
Knowledge workers create new knowledge or
information by research, experimentation and
investigation into existing trends and products.
KWSs will be tailored to meet the requirements of
individual knowledge workers.
example computer aided design
Management Information Systems
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Is an integrated computer based user machine system
that provides information for supporting operations
and decision making functions .
MIS summarize and report on the basic operations of
the company
MIS typically compress TPS data to present regular
reports on the company's basic operations
Management Information Systems
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In the system illustrated by this diagram, three TPS supply
summarized transaction data to the MIS reporting system
at the end of the time period. Managers gain access to
the organizational data through the MIS, which provides
them with the appropriate reports.
Characteristics of MIS.
They are generally reporting and control
oriented.
 They have little analytical capability
 They generally aid in decision making using past
and present data.
 They have an internal rather than an external
orientation.
 The information requirements are known and
stable.
 They often require a lengthy analysis and design
process.
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Decision Support Systems
“A set of interactive software programs that
provide managers with data, tools, and
models to make semi structured and
unstructured decisions.”
“Decision Support Systems are computerbased information systems that provide
interactive information support to managers
and business professional during the decisionmaking process. Decision support systems use:
Decision support systems (DSS)
- analytical
models,
- specialized databases,
- a decision maker’s own insight
and judgments, and
- an interactive, computerbased modeling process
to support the making of semi structured
and unstructured business decisions.”
Decision Support Systems
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The type of problems managers and business
professionals face can be described as:
 Structured Problems which are routine and
repetitive. A standard solution method or a set
of decision rules will exist. Therefore, the method
of finding the best solution is clear. Examples of
such problems are: finding an appropriate
inventory level, choosing an optimal investment
strategy, or approving credit. As you can see
they are mostly about minimising cost or
maximising profit.
Decision Support Systems
 Unstructured
Problems are novel, non-routine, and
complex. The decision making is mostly based on
human instinct, experience and knowledge. Therefore,
there are no decision rules or the decision method is
fuzzy, and it is almost impossible to find the best
solution. Rather a satisfactory solution will be found.
Examples of such problems are: selecting a cover for a
magazine, planning new services, hiring an executive,
or personnel selection
 Some
decisions are semi-structured; in such cases only
part of the problem has a clear-cut answer provided
by a routine procedure.
Decision Support Systems
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DSS support management decision making by
integrating:
 Company performance data
 Business rules based on decision tables
 Analytical tools and models for forecasting and
planning
 An easy-to-use graphical interface
Group Decision Support Systems (GDSS)
Today most decisions within organizations are not
taken by one single person but by a group of
people. In the new business models which have
arisen due to the use of advanced communication
technologies, not only there exist group decision
making but members of the decision making team
can be dispersed in different geographical locations
GDSS are computer-based systems that enhance
group decision making and improve the flow of
information among group members
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Group Decision Support Systems (GDSS)
GDSS provide facilities which are typical in group
decision making, such as, brainstorming, idea
organizers, questionnaires, and voting tools, and
provide anonymity when required
 GDSS software attempts to eliminate the negative
factors associated with group decision making, such
as: a few people dominating the discussions, time
consuming, possibility of deviating from the problem
concerned, and reluctance of members of expressing
their ideas in the fear of being victimized by top
management or internal politics
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Executive support systems (ESS)
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Serves at the strategic level.
For long-term decision making
Receives from the MIS and DSS.
Used by executive and strategic managers.
Operates at the strategic management level.
Executive Support Systems (ESS)
An IS that is focused on meeting the
strategic needs of the organisation
 Designed explicitly for the purposes of
senior management
 Used
by senior management without
technical intermediaries
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Executive Support Systems (ESS)
• Use state-of-the-art integrated graphics,
text, and communication technology
• Web browsing, e-mail, groupware tools, DSS
and Expert System capabilities
• Also known as Executive Information
Systems (EIS)
Executive Support Systems (ESS)
• The primary objective of Executive information
systems is to provide top executives with quick and
easy access to strategic information
• They combine many of the features of MIS and DSS
• Characterized by their easy-to-use graphical
interfaces and graphical displays that can be
customized to decision makers preferences
• Other features: exception reporting, trend analysis,
and drill down capabilities
EIS vs. ESS
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Executive Information Systems (EIS):
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Provide the information needs of top executives
Executive Support Systems (ESS):
 Goes
beyond EIS to include communication, office
automation, analysis support, and business
intelligence
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Enterprise Information Systems (EIS):
 Corporate-wide
system that provide holistic
information from a corporate view
IS
Relationships among Systems
IS at the Organisational Level
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Operational-level
They provide support to operational managers by tracking
the individual transactions that occur with in the
organization. e.g individual sales invoices, specific goods
sold to one customer.
 All data will be collected in the transaction processing
systems.
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Knowledge-level
knowledge and data workers
 Introduce new knowledge into the business
 Organise and provide access to existing knowledge.
 Examples include: OAS, KWS
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IS at the Organisational Level
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Management-level
Systems designed to assist with the monitoring, control,
decision-making of other systems.
 Is the business working well?e.g DSS, MIS
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Strategic-level
Helps managers address more long term issues and
problems such as the over all strategic direction of the
organisation., where to invest in new factories &products
 Provide mgt with summarised strategic information needed
to make these decisions e.g. ESS, EIS.
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Role of IS in Organizations
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Flattening organizations: reduce levels in org’s
Separates work from Location – collaborative
Reorganize work flows: replace manual procedures
Increasing flexibility in Org’s: mass customization
Facilitate the mgt process: capabilities to plan,
organize, lead & control (use of ERP)
Redefine org’al boundaries: e-transactions and Inter
organizational systems (link org to
suppliers/distributors/customers)
Global Challenges in Information
Systems
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Cultural challenges
Language challenges
Infrastructure challenges
Technology transfer issues
Currency challenges
State, regional, and national laws
Conclusion
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The different information Systems in an organization will
ultimately improve the efficiency, effectiveness and
profitability of an organization.
IS Aid in management, communication, decision making
and work tasks.
They should be faster, more reliable, simpler and should
give the organization a competitive edge against it’s
competitors.
Questions…
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Analyze the role played by the six major types of
information systems in organizations and their
relationship to each other
Describe the types of information systems
supporting the major functional areas of the
business
Identify and describe the four levels of the
organizational hierarchy. What types of
information systems serve each level?
What are the five types of TPS in business
organizations? What functions do they perform?
Give examples of each .
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FUNCTIONAL BUSINESS SYSTEMS