MIS BBA & MBA Lecture 456 How Organization Use IS (Systems from Hierarchical & Functional Perspective and for Collaboration) Course Lecturer: Farhan Mir

Transformation of Organizations Flattening (Need for Agility) Decentralization (More focus on Behavioral Approaches) Flexibility Location Independence (Globalization Pressures) Low Transaction Cost Empowerment (Employee needs to respond quickly) Collaborative Work (More teams are emerging) Overall Performance (Effectiveness) Competitive Advantage

Business Processes and Information Systems Manner in which work is organized, coordinated, and focused to produce a valuable product or service Concrete work flows of material, information, and knowledge—sets of activities Unique ways to coordinate work, information, and knowledge Ways in which management chooses to coordinate work How information technology enhances business processes: efficiency and transformation

Business Processes – Example of Order Processing

Major Types of Systems – Systems from Hierarchical Perspective Executive Support Systems (ESS) Decision Support Systems (DSS) Management Information Systems (MIS) Knowledge Work Systems (KWS) (KMS) Office Automation Systems (OAS) Transaction Processing Systems (TPS)

Different Kinds of Systems Operational-Level Systems Support operational managers by keeping track of elementary organizational activities and transactions Systems answer routine questions and track the flow of transactions through the organization i.e. – systems to record bank deposits Or track the number of hrs worked each day

Transaction Processing Systems

TYPICAL TPS APPLICATIONS Example in a University like us MAJOR FUNCTIONS OF SYSTEMS: Admissions, grade records, course records MAJOR APPLICATION SYSTEMS: Registration system, student transcript system, curriculum class control system

Another Example (A Payroll System) Hours worked Payroll transaction processing Payroll checks Pay rate

A Symbolic Representation for a Payroll TPS

What happens to TPS data? Managers need sophisticated reports to help them understand and analyze data. created by a management information system Management information system can be a synonym for the term “information system” or refer to a type of information system. characterized by production of routine reports that managers use for structured and routine tasks

MIS MIS is short for management information system or management information services, and pronounced as separate letters MIS refers to a class of software that provides managers with tools for organizing and evaluating their department. Typically, MIS systems were written in COBOL and run on mainframes or minicomputers. Within companies and large organizations, the department responsible for computer systems is sometimes called the MIS department. Other names for MIS include IS (Information Services) and IT (Information Technology).

MIS (The Central Systems) Marketing management information system Manufacturing management Information system Common databases Financial management Information system Order management information system TPS

Office Automation An office automation system “automates” or computerizes, routine office tasks. word processing software spreadsheet software scheduling software e-mail software

Can decisions be automated? Information systems do not make decisions. The manager analyzes the data and reaches a decision. An expert system, sometimes referred to as a “knowledge-based system”, is a computer system designed to analyze data and produce a recommendation or decision. uses a set of facts or rules

A Model of ESS

Why Information Systems Institute of Management Sciences (A Mini Case)

Institute of Management Sciences Current status is that Number of Courses (Degrees) Increasing Number of Students & Staff logically increasing too Number of Admissions increasing Number of Exams and Results Increasing Other Pressures!! HECS looking for standardization (Course Curriculums, Course Plans, Monitoring, Research at University (resources for researchers) Public want information Key Stakeholders (Administration, Employees, Instructors and students) need convenience

Institute of Management Sciences All major processes are information based Clear need for systematic approach (Here comes the role of Information Systems) And we are on our way towards that (Admission system, Exam system, Monitoring system, Website)

Transformation of Organizations Flattening (Need for Agility) Decentralization (More focus on Behavioral Approaches) Flexibility Location Independence (Globalization Pressures) Low Transaction Cost Empowerment (Employee needs to respond quickly) Collaborative Work (More teams are emerging) Overall Performance (Effectiveness) Competitive Advantage

Systems from a Functional Perspective IS can be classified by the specific organizational function they serve as well as by organizational level as follows: Sales and marketing systems Manufacturing and production systems Finance and accounting systems Human resources systems

Typical Applications - MIS with TPS

An Inventory System

Examples of Finance & Accounting IS

Examples of Human Resources IS

An Employee Record Keeping System

Enterprise Wide Software (Need for Collaboration) Case of Integrated Supply Chain Management (ERPs)

Collaboration & Communication Systems

The Future of IS Web 2.0 The second-generation of Internet-based services that let people collaborate and share information online in perceived new ways—such as social networking sites, wikis, and communication tools

Social and Business Networks Social Networks Web sites that connect people with specified interests by providing free services such as photo presentation, e-mail, blogging, etc. Business-oriented networks are social networks whose primary objective is to facilitate business

Organizing the IT/IS Function INFORMATION SYSTEMS DEPARTMENT Information System Specialists: CIO Managers System Analysts System Developers Programmers Network Specialists Database Administrator Clerical (Operators) IT Infrastructure: Hardware Software Data Networks

IS Personnel Operators System Analysts Programmers Data Entry Computer Operators (Hardware Specialists) System Analysts Most Crucial IS job Whether you are developing In-house or using a purchased application or Outsourcing Programmers Technical People (Technical construction of the IS) Developers Database Administrators CIO Other roles are also coming in organizations (IS Security Officers, Information Policy Makers, Webmasters)

IS Planning/ IT Governance Technology New/Hottest Technology (Costly) or Older/ Traditional Technology (Cheap) or Combination of both strategies Professionals Training Vs. Hiring Cost the key issue Issues & Recommendations Reliability in traditional technologies Vs. benefits with new ones (New cycles of training & update required to keep up with pace and to avoid failures associated with new technologies) In-depth Analysis the way to avoid failures Project Management a systematic way

References Charles Parker, Thomas Case. (2000). “Management Information Systems: Action & Strategy”. (2nd Ed). Chapter 2 & 4 James O’Brien. (1998). “Introduction to Information Systems: A Networked Enterprise Perspective”. (2nd Ed). Chapter 10,12 Kenneth C. Laudon & Jane P. Laudon (2011). “Management Information Systems: Managing a Digital Firm”.(7th Ed). Chapter 3 Grover S. Kearns (1997). Alignment of Information Systems Plans with Business Plans: (http://hsb.baylor.edu/ramsower/ais.ac.97/papers/kearns.htm)