1 Chapter 6 Organizational Information Systems Information Systems Today Leonard Jessup & Joseph Valacich

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3 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

4 Decision-Making Levels of an Organization

5  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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7 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

8 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

9 General Types of Information Systems  Transaction Processing Systems (TPSs)  Examples:  Payroll  Sales and ordering  Inventory  Purchasing, receiving, shipping  Accounts payable and receivable

10 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

11 General Types of Information Systems  Management Information Systems  Types of reports:  Scheduled report  Key-indicator report  Exception report  Drill-down report  Ad hoc report

12 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

13 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

14 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

15 Information Systems that Span Organizational Boundaries

16 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.

17 Information Systems that Span Organizational Boundaries  Expert Systems (ESs)  Mimics human expertise by manipulating knowledge  Rules (If-then)  Inferencing

18 Information Systems that Span Organizational Boundaries  Office Automation Systems (OASs)  Examples:  Communicating and scheduling  Document preparation  Analyzing data  Consolidating information

19 Information Systems that Span Organizational Boundaries  Collaboration Technologies  Virtual teams  Videoconferencing  Groupware  Electronic Meeting Systems (EMSs)

20 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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22 Information Systems that Span Organizational Boundaries  Global Information Systems  International IS  Transnational IS  Multinational IS  Global IS