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Organizational Information Systems
Chapter 7
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Chapter Objectives• Describe characteristics that differentiate
operational, managerial, and executive levels
• Explain characteristics of the three levels of IS: TPS, MIS, and EIS
• Describe characteristics of three IS that span levels: DSS, expert systems, and office automation
• Explain the general IS needs of organizational functional areas
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Different Types of Information Require Different Types of Systems
• Organizational levels– Operational– Managerial– Executive
• Different levels have different information needs
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Levels of an Organization
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Operational Level
• Where the routine day-to-day interaction with customers occurs
• Information system– Automates repetitive activities– Improves efficiency of the customer interface
• Decisions – Highly structured – Repetitive
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Operational Level
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Managerial Level
• Where functional managers monitor operations
• Information system– Provides summary information of operational
activities
• Decisions – Moderately complex– Time horizon up to a few months– Semi-structured
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Managerial Level
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Executive Level
• Where long-term strategic issues are decided
• Information systems– Aggregate summaries– Statistical analyses, trends, and projections
• Decisions – Very complex – Long-term ramifications– Unstructured
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Executive Level
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General Types of Information Systems
• All Information Systems use the basic systems model– Input, process, and output
• Levels of business information systems– Transaction Processing Systems– Management Information Systems– Executive Information Systems
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Transaction Processing Systems
• Process business transactions– Transactions: events that occur as a regular part of
business day-to-day operations
• Used at operational level• Goals
– Automate repetitive information processing activities to increase speed and accuracy
– Lower the cost of processing– Make the organization more efficient
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Activities of TPS
• Payroll processing
• Sales– Online– Batch
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Architecture of a Transaction Processing System
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Forms of TPS Data Entry
• Manual
• Semi-automated
• Fully automated
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Management Information Systems
• Support the ongoing decision-making activities of a business or functional area
• Used at managerial level• Goals
– Help managers make more effective decisions– Get the right information to the right person in
the right format at the right time
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Activities of MIS
• Sales forecasting
• Financial management and forecasting
• Manufacturing planning and scheduling
• Inventory management and planning
• Advertising and product pricing
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Architecture of a Management Information System
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Executive Information Systems
• Provide information for long-term decision making
• Used at executive level
• Goals– To provide aggregate information– To provide information that can be quickly
scanned for trends and anomalies
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Activities of EIS
• Executive-level decision-making
• Long-range and strategic planning
• Monitoring internal and external events, and resources
• Crisis management
• Staffing and labor relations
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Architecture of an Executive Information System
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Information Systems that Span Organizational Boundaries
• Decision support systems
• Expert systems
• Office automation systems
• Functional area IS
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Boundary-spanning IS
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Decision Support Systems
• Special-purpose systems
• Designed to solve a recurring problem
• Support semi-structured problems
• Use decision analysis tools
• Allows user to examine alternative solutions – What-if analysis
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Architecture of a Decision Support System
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Expert Systems
• Use knowledge of a subject to solve problems or provide advise
• Mimic human expertise• Human knowledge represented by
codifying facts and rule• Examples
– Financial planning– Computer help desk
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Architecture of a Expert System
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Office Automation Systems• Develop documents
– Word processing– Desktop publishing
• Schedule resources– Electronic calendars
• Communicate– Electronic and voice mail– Video conferencing– Groupware
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Architecture of an Office Automation System
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Functional Area Information Systems