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Chapter 6

OrganizationalInformation Systems

Information Systems TodayLeonard Jessup & Joseph Valacich

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Chapter 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 Organization

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Decision-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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General Types of Information Systems

Transaction Processing Systems (TPSs) Transactions Used at Operational level of the organization Goal: to automate repetitive information

processing activities Increase speed Increase accuracy Greater efficiency

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General Types of Information Systems

Transaction Processing Systems (TPSs) Online processing Batch processing

Data input Manual data entry Semiautomated data entry Fully automated data entry

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General Types of Information Systems

Transaction Processing Systems (TPSs) Examples:

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

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General Types of Information Systems

Management Information Systems (MISs) Two Types:

Management of IS in organizations Specific information systems for mid-level managers

Used at managerial level of the organization

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General Types of Information Systems

Management Information Systems Types of reports:

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

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General Types of Information Systems

Management Information Systems (MISs) Examples:

Sales forecasting Financial management and forecasting Manufacturing planning and scheduling Inventory management and planning Advertising and product pricing

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General Types of Information Systems

Executive Information Systems (EISs) Used at executive level of the organization Highly aggregated form Data types

Soft data – news and nonanalytical data Hard data – facts and numbers

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General Types of Information Systems

Executive Information Systems (EISs) Examples:

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

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Information Systems that Span Organizational Boundaries

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Information Systems that Span Organizational Boundaries

Decision Support Systems (DSSs) Designed to support organizational decision

making “What-if” analysis

Example of a DSS tool: Microsoft Excel Text and graphs

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

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Information Systems that Span Organizational Boundaries

Expert Systems (ESs) Mimics human expertise by manipulating

knowledge Rules (If-then) Inferencing

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Information Systems that Span Organizational Boundaries

Office Automation Systems (OASs) Examples:

Communicating and scheduling Document preparation Analyzing data Consolidating information

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Information Systems that Span Organizational Boundaries

Collaboration Technologies Virtual teams Videoconferencing Groupware Electronic Meeting Systems (EMSs)

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Information Systems that Span Organizational Boundaries

Functional Area Information Systems Geared toward specific areas in the company:

Human Resources Benefits Marketing

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Information Systems that Span Organizational Boundaries

Global Information Systems International IS Transnational IS Multinational IS Global IS