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©1999 Addison Wesley Longman Slide 5.1
Communication,Decision Making,and Different Typesof Information Systems
5
©1999 Addison Wesley Longman Slide 5.3
Table 5.1Customizing Jeans at Levi Strauss
CUSTOMER
Person purchasing jeans
©1999 Addison Wesley Longman Slide 5.4
Table 5.1Customizing Jeans at Levi Strauss
PRODUCT
Customized pair of jeans
Measurements representing the best fit
Manufacturing specification for the customized pair of jeans
©1999 Addison Wesley Longman Slide 5.5
Table 5.1Customizing Jeans at Levi Strauss
BUSINESS PROCESS
Major Steps:
•Take measurements
•Try on special samples to get perfect fit
•Transmit to factory in Tennessee
•Manufacture jeans
•Mail jeans to customer
•Store specification for reorders
Rationale:
•Sell customized jeans that really fit the customer.
©1999 Addison Wesley Longman Slide 5.6
Table 5.1Customizing Jeans at Levi Strauss
PARTICIPANTS
Customer
Salesperson
INFORMATION
Customer’s measurements
Manufacturing specifications
Delivery address
TECHNOLOGY
Sample pairs for fitting the customer
Technology for producing the jeans
Computers and data communication network
©1999 Addison Wesley Longman Slide 5.7
Table 5.2Ways Information Systems Can Improve Communication and
Decision Making Performane within Business Processes
RATE OF OUTPUTImprove communication: Communicate more information or more types to more peopleImprove decision making: Make more decisions using better, more complete information
CONSISTENCYImprove communication: Make sure different people receive the same communication Improve decision making: Make sure repetive decisions are made in the same way
PRODUCTIVITYImprove communication: Achieve more communication with less effortImprove decision making: Make better decisions with less effort
CYCLE TIMEImprove communication: Eliminate undesirable delays in communicationImprove decision making: Eliminate unnecessary delays in decision making
FLEXIBILITYImprove communication: Permit communication in many different formsImprove decision making: Maintain decision quality across a wider range of situations
SECURITYImprove communication: Make sure communications go only to the intended recipientsImprove decision making: Make sure decisions are controlled only by those authorized to make the decisions
©1999 Addison Wesley Longman Slide 5.8
Table 5.3Communication Technologies Classified by Time and Place of Communication
SAME PLACE
Same time:
•Presentation systems
•Group decision support systems (GDSS)
Different time
•Transaction databases
•World Wide Web
•Electronic mail
•Voice mail
DIFFERENT PLACE
Same time:
•Typical telephones
•Computer conferencing
•Video telephones and conferencing
•Nonrecorded radio or TV broadcast
Different time
•Transaction databases
•World Wide Web
•Electronic data interchange (EDI)
•Electronic mail
•Voice mail
•Fax
•Prerecorded radio or TV broadcast
©1999 Addison Wesley Longman Slide 5.10
Table 5.4 How Information Systems Might Help Counteract Common Flaws in Decision Making
POOR FRAMINGDescription: Allowing a decision to be influenced excessively by the language used for describing the decision
How an information system might help: Provide information encouraging different ways to think about the definition of the issue
RECENCY EFFECTSDescription: Giving undue weight to the most recent informationHow an information system might help: Provide information showing how the most recent information might not be representative
PRIMACY EFFECTSDescription: Giving undue weight to the first information received How an information system might help: Show how some information is inconsistent with the first information received
POOR PROBABILITY ESTIMATIONDescription: Overestimating the probability of familiar or dramatic events; underestimating the probability of negative eventsHow an information system might help: Make it easier to estimate probabilities based on pertinent data
©1999 Addison Wesley Longman Slide 5.11
Table 5.4 How Information Systems Might Help Counteract Common Flaws in Decision Making
OVERCONFIDENCEDescription: Believing too strongly in one’s own knowledge
How an information system might help: Provide counterexamples or models showing that other conclusions might also make sense
ESCALATION PHENOMENADescription: Unwillingness to abandon courses of action decided upon previouslyHow an information system might help: Provide information or models showing how the current approach might give poor results
ASSOCIATION BIASDescription: Reusing strategies that were successful in the past, regardless of whether they fit the current situation How an information system might help: Provide information showing how the current situation differs from past situatioins
GROUPTHINKDescription: Bowing to group consensus and cohesiveness instead of bringing out unpopular biasHow an information system might help: Provide information inconsistent with the current consensus and prove its relevance
©1999 Addison Wesley Longman Slide 5.13
Table 5.5Typical Ways Each Type of Information System Supports
Communication and Desicion Making
OFFICE AUTOMATION SYSTEM: provides individuals effective ways to process personal and organizational business data, to perform calculations, and to create documents
COMMUNICATION SYSTEM:helps people work together by sharing information in many different forms
TRANSACTION PROCESSING SYSTEM (TPS):collects and stores information about transactions; controls some aspects of transactions
MANAGEMENT INFORMATION SYSTEM (MIS) AND EXECUTIVE INFORMATION SYSTEM (EIS):converts TPS data into information for monitoring performance and managing an organization; provides executives information in a readily accessible interactive format
DECISION SUPPORT SYSTEM (DDS):helps people make decisions by providing information, models, or analysis tools
EXECUTION SYSTEM:directly supports the organization’s value added work (e.g.. helps sales people sell, helps doctors practice medicine, or helps architects design buildings)
©1999 Addison Wesley Longman Slide 5.14
Table 5.6Examples of Each Type of Information System in Three Functional Areas of Business
Sales, Manufacturing, and Finance
•OFFICE AUTOMATION SYSTEMS
•COMMUNICATION SYSTEMS
•TRANSACTION PROCESSING SYSTEM (TPS)
•MANAGEMENT INFORMATION SYSTEM (MIS) AND EXECUTIVE INFORMATION SYSTEM (EIS)
•DECISION SUPPORT SYSTEM (DDS)
•EXECUTION SYSTEM
©1999 Addison Wesley Longman Slide 5.16
Figure 5.5Data entry screen from a transaction processing system
©1999 Addison Wesley Longman Slide 5.23
Table 5.7Transferable Features of Particular Types of Information Systems
OFFICE AUTOMATION SYSTEMSTransferable features:•Multiple forms of information, sometimes used in combination•Immediacy and interactivity of communication•Avoidance of unproductive work
COMMUNICATION SYSTEMSTransferable features:•Emphasis on communication in addition to data processing•Consideration of social presence and other communication characteristics when building systems•Recognition of the need to handle different combinations of same or different time or place•Sharing information betwween different people working on different parts of a task•Controlling work flows and approval loops within a group•Incorporating efficient methods of scheduling meetings
TRANSACTION PROCESSING SYSTEMSTransferable features:•Control•Procedures and rules•Repetitions
©1999 Addison Wesley Longman Slide 5.24
Table 5.7Transferable Features of Particular Types of Information Systems
MANAGEMENT AND EXECUTICE INFORMATION SYSTEMSTransferable features:•Emphasis on measures of performance•Use of standard formats and measures by people in different departments•User friendly interface•User friendly methods for analyzing data
DECISION SUPPORT SYSTEMSTransferable features:•User-controlled interaction with computers•Use of models and data•Information systems applied to semistructured tasks
EXECUTION SYSTEMTransferable features:•Integrating computerized systems into doing the organization’s value added work•Bringing knowledge in active form to people doing the work