This presentation was developed by Dr. Steven C This presentation was developed by Dr. Steven C. Ross for use in MIS 320 classes at Western Washington University. Some of the material contained herein is © 2007, John Wiley & Sons, Inc. and other sources, as noted. All rights reserved.

Types of Information Systems MIS 320 Types of Information Systems Intro music is MURDER.WAV

Levels of the Organization What are the four levels? Strategic management, tactical management, operational management, clerical Do you agree with the author’s drawing? * Figure 8.2 from Rainer, et al.

Levels of the Organization What are the levels of the organization Western Washington University? Concepts from military organizations Line units – on the line of contact Staff/support units – advise and assist line units WWU, like most organizations, has both “line” and “support” units. What are the line units at WWU? What are some of the support units at WWU? What are the four levels? Strategic management, tactical management, operational management, clerical Do you agree with the author’s drawing?

Types of Information Source → Type ↓ Internal External Objective Sales orders Market demographics Subjective Sales forecast Customer preferences What’s the difference between objective and subjective information? Give an example for each quadrant. Internal/Objective: orders External/Objective: demographics Internal/Subjective: sales forecast External/Subjective: customer preferences

Types of Information Give examples of each type as it pertains to WWU ... Source → Type ↓ Internal External Objective Subjective What’s the difference between objective and subjective information? Give an example for each quadrant. Internal/Objective: orders External/Objective: demographics Internal/Subjective: sales forecast External/Subjective: customer preferences

Information Flows Is there anything missing (maybe inward flow?) Give examples of each: Up: production values Down: quotas Horizontal: work in progress Out: product information (e.g. pricing) In: orders * Graphic from Haag, et al.

Information Flows What information flows Into WWU? Out of WWU? Downwards in WWU? Upwards in WWU? From one department to another in WWU? From academic units to support units in WWU? From support units to academic units in WWU? Is there anything missing (maybe inward flow?) Give examples of each: Up: production values Down: quotas Horizontal: work in progress Out: product information (e.g. pricing) In: orders

Information Processing Tasks Capturing information (input) Conveying information (output) Creating information (processing) Cradling information (storage) Communicating information (telecom) What’s the difference between convey and communicate? What’s the difference between capture and cradle?

On-Line Transaction Processing Gathering input information Processing that information Updating existing information to reflect the gathered and processed information Not all “TP” is “OL” Batch processing Input collected (on paper?) and processed all at once Remote batch OL input but batch processing Supports efficiency Accounting applications are often OLTP Are there other types of TP that are not OL? Batch processing Remote batch (OL input, batch processing)

Transaction Processing at WWU What transactions are processed at WWU? Student Faculty/staff Support units Supports efficiency Accounting applications are often OLTP Are there other types of TP that are not OL? Batch processing Remote batch (OL input, batch processing)

On-Line Analytical Processing Manipulation of information to support decision making Not all “AP” is “OL” Daily status reports, printed or on-screen Reports based on “data warehouse” data Not real-time Extracted at a specific point in time Supports effectiveness Many applications in Finance, Economics, Marketing, and Management are OLAP

Analytical Processing at WWU What analysis of data is (should be) done at WWU? Academic data Support data Supports effectiveness Many applications in Finance, Economics, Marketing, and Management are OLAP

Transaction Processing Systems (TPS) OLTP or OLAP? TPS Collect data Enter into system Process Store OLTP Capture, Convey, Create, Cradle Internal Objective Source data automation – automated entry of data * Figure 8.1 from Rainer, et al.

Customer Integrated Systems (CIS) OLTP or OLAP? OLTP Capture, Convey, Create, Cradle, Communicate Internal Objective How different from a TPS? * Graphic from Haag, et al.

Transaction Processing and Customer-Integrated Systems at WWU What transaction processing and customer-integrated systems have you encountered at WWU? What data items are these systems collecting? OLTP Capture, Convey, Create, Cradle Internal Objective

Management Information Systems (MIS) Also known as functional information system or functional area information system Reports: Routine Ad-hoc Exception OLAP Convey, Create Internal Objective AKA reporting systems Ways of characterizing reports: Periodic vs. Ad Hoc Detail vs. Summarized Exception vs. All-Inclusive Comparative vs. not * Graphic from Haag, et al.

Management Information Systems at WWU What information does the administration at WWU need to effectively operate the university? Which of the data items you identified earlier can be compiled to provide (some of) this information? What external data is needed? OLAP Convey, Create Internal Objective AKA reporting systems Ways of characterizing reports: Periodic vs. Ad Hoc Detail vs. Summarized Exception vs. All-Inclusive Comparative vs. not

Enterprise Resource Planning Systems Planning, management, and use of all resources of the organization Processes supported Financial and accounting Sales and marketing Manufacturing and production Human resources

Customer Relationship Management Systems Designed to acquire and retain customers “Treat different customers differently.” Treat each customer individually Point of contact: customer touch point CRM applications: Sales Marketing Customer service (see next slide)

CRM Applications for Customer Service Technical and other information and services Customized products and services Tracking account or order status Personalized web pages Frequently asked questions (FAQs) E-mail and automated response Call centers

Customer Relationship Management Systems * Graphic from Haag, et al.

Supply Chain Management Systems Supply chain: “the flow of materials, information, money, and services from raw material suppliers through factories and warehouses, to the end customers.” (Rainer, et al., p. 255) SCM is a type of IOS Interorganizational [information] system

Supply Chains Flows: material, information, financial data Three segments: upstream, internal, downstream Upstream: tiers of suppliers Downstream: multiple levels of customers * Figure 8.3 from Rainer, et al.

Problems and Solutions in the Supply Chain Main problem: Friction  Uneven flows  Inventory shortage or glut Solutions [Large] Inventory as a buffer Information sharing Vendor-managed inventory

Moving the Data in SCM/IOS Electronic data interchange (EDI) Communication standard that enables business partners to exchange information Documents must be formatted to agreed-upon standards Value-added network (VAN) * Graphic from Haag, et al.

Moving the Data in SCM/IOS Extranets Link business partners over the Internet by providing access to selected areas of each other’s intranets Company-centered Industry-centered Joint ventures

Interorganizational Systems for WWU and ??? If WWU were to have an IOS, with what other organization(s) would it connect? If WWU were to have an IOS, what sort of data would be shared? OLTP and OLAP Communicate Internal and External Objective and Subjective

What’s Missing? This discussion has covered many of the “business administration” types of information technology systems. Are there other types of systems that you might find in organizations? (Hint: have you seen other types of systems in the videos last week and today?) Personal productivity and office automation CAD/CAM Process control Manufacturing quality ERP/MRP

Just because it can be done doesn’t mean it should be done. Point to Remember Just because it can be done doesn’t mean it should be done.

References Haag, Cummings, and McCubbrey, Management Information Systems for the Information Age (5th Edition), McGraw-Hill Irwin, 2005. Rainer, Turban, and Potter, Introduction to Information Systems: Supporting and Transforming Business, Wiley, 2007.