Organizational Information Systems Why Are Computers the Heavy Artillery in Business? Chapter 12

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Objectives 1.Describe the typical structure of an organization. 2.Define decentralized computing and shared information and describe the nature and characteristics of information within an organization. 3.Define how both transaction processing systems and customer-integrated systems help an organization process daily transactions.

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Objectives 4.Differentiate the roles of management information systems and executive information systems in supporting the needs of managers. 5.Describe various technologies – including intranets, extranets, and workgroup support systems – and how they support organizational logistics. 6.Identify the challenges of spreading out nationally and internationally and how technology can aid in that process.

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Broad View of Organizations, Business & Information

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved A:// Organizations, Technology, and Information To manage an organization using technology: –Know nature of and structure of the business –Know the information requirements of employees –Know how technology supports the business

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved The Nature and Structure of the Organization Strategic management – provides overall direction and guidance Tactical management – develops goals and strategies Operational management – manages day-to-day operation Nonmanagement employees – perform productive daily activities

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved An Organization Structured According to Product Line

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Decentralized Computing Empower employees through the use of technology Train employees to use technology in the most efficient and optimal way

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Shared Information Concept that employees should have access to information –Information to perform job –Can obtain information when it is needed Data stored in large central and smaller departmentalized databases

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Decentralized Computing and Shared Information

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Differing Information Needs Information Granularity People at the highest level need more general information Nonmanagement need the finest level of granularity

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Differing Information Needs Information Attributes Internal information External information Objective information Subjective information

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Differing Information Needs The Flows of Information Information in organizations flow in various directions –Upward flow –Downward flow –Horizontal flow People with different responsibilities have different needs

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved ISeries Ethics, Security & Privacy Who’s Looking at Your Medical Records Telemedicine –Beneficial if you get sick on vacation and need health records –Beware of access by others Suggestions –Never disclose anything to doctor not health related –Ask if others besides doctor have access to your health records –Review records for accuracy –Ask to be notified in case records are subpoenaed

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Making the Grade Section A: // 1. _______________ management develops the goals and strategies outlined by strategic management. 2. _________________ is the placement of technology in the hands of those people in an organization who need it in order to do their jobs effectively and efficiently. 3. Information __________________ refers to the level of detail the information contains.

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Making the Grade Section A:// 4. ______________ information describes the environment surrounding an organization. 5. The ____________ flow of information consists of the strategies, goals, and directives that originate at one level and are passed to lower levels.

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved B:// Tracking Everything in Business Daily transactions are at the very heart of a business Systems are primary interface to customers Two primary computer systems for tracking daily transactions: –Transaction processing system –Computer-integrated system

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Transaction Processing System

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Customer-Integrated System Places technology in the hands of the customers Allows customers to process their own transactions Called CIS –Decentralizes computing power –Also responsible for communicating information

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Customer-Integrated System

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Making the Grade Section B: // 1. A ______________ is an extension of a TPS that places technology in the hands of an organization’s customers. 2.A ____________ is exactly what its name implies – a system that processes transactions that occur within an organization.

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Making the Grade Section B: // 3. CISs further _____ computing power in an organization by placing that power in the hands of customers. 4.The Web is a common place to find all kinds of ____.

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved C:// What Managers Need to Know Managers have many responsibilities –Identify and solve problems –Identify and take advantage of opportunities Must constantly monitor surroundings Computer systems for managerial responsibilities: –Management information systems –Executive information systems

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Management Information System (MIS) – a system that provides reports that summarize information Processes and creates new information Also called management alerting systems

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Types of Management Information System Reports Periodic report Summarized report Exception report Comparative report

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Executive Information System (EIS) – a highly interactive MIS –Helps managers solve problems & identify opportunities Creates new information and presents it to user Can perform "What if?" analysis

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Executive Information System Allows you to "drill down" through information Can better determine causes of problems Can better determine how to take advantage of opportunities What is meant by "drill down"?

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved With EIS, you can "drill down" through information. Obtaining Information

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved IBuy Lease versus Buy Advantages of leasing –Good support while you lease –Lack of technology obsolescence –Lower cost Disadvantages of leasing –You don’t own –Can’t resell computer at a later date –Must get approval to upgrade

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Making the Grade Section C: // 1. A ___________________ is a system that provides periodic and predetermined reports that summarize information. 2. A _________________ is simply a report that aggregates information in some way. 3.An _______________ is a report that shows only a subset of available information based on some selection criteria.

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Making the Grade Section C: // 4. A _______________ is a report that shows two or more sets of similar information in an attempt to illustrate a relationship. 5. An EIS allows you to “________________” through information to better determine causes of problems and determine how to take advantage of an opportunity.

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved D:// Support for Organizational Logistics Businesses need to distribute information Computer systems help businesses to operate without regard to… –Location of employees –Location of customers –Location of suppliers

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Intranet Private Internet Guarded against outside access –Special security mechanism employed Firewall

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Letting Your Suppliers and Customers Inside Your Intranet Extranet –Extension of an intranet –Allows other people and other organizations to access information Common application for businesses that have other organizations as customers

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Supporting Teams with Groupware Workgroup support system (WSS) –Improves the performance of teams –Supports the sharing and flow of information Foundation of WSS is groupware Groupware supports team efforts –Lotus Notes/Domino –Microsoft Exchange

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Supporting Teams with Groupware

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Team Dynamics Electronic bulletin board Group scheduling software Electronic meeting software Videoconferencing software Whiteboard software

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Document Management Document management is necessary Group document database needed –Stores all items related to specific teams –Powerful storage facility –Organizes and manages all documents related to teams –May include documents from different teams

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Group Document Database

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Making the Grade Section D: // 1. An ___________ is an internal organizational Internet that is guarded against outside access by a special security mechanism. 2. An ____________ is an extension of an intranet that allows other organizations and people access to information and application software on an intranet. 3.____________ is the popular term for the software component that supports team efforts.

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Making the Grade Section D: // 4. ____________________ software provides facilities for maintaining the day-to-day electronic calendars of team members. 5. A _________________ is a powerful storage facility for organizing and managing all documents related to specific teams.

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved E:// Spreading Out Nationally and Around the Globe Very few businesses are local May have national and international… –Customers –Suppliers –Employees –Competition

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Telecommuting Business innovation supported by technology Use of various technologies to allow employees to work in a place other than a central location Telecommuters

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Industries Planning to Implement Telecommuting

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved When considering telecommuting in your organization, ask yourself these five questions:

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Transnational Firms Produces and sells products and services all over the world Difficult to know firm's home country Faces cultural challenges

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Transborder Data Flows Information and technology assets as they operate around the world –Firms must consider the quality and type of technology –Challenging for any transnational business Deals with technology that supports the movement of data

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Making the Grade Section E: // 1. ________ is the use of various technologies to allow employees to work in a place other than a central location. 2. A __________ produces and sells products and services in countries all over the world. 3. __________ is the collective personality of a nation or society. 4. ___________ is the popular term for considering the movement of information around the globe and the technologies that do it.

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved F:// “Key” Key Terms customer-integrated system (p. 12.9) decentralized computing (p. 12.4) executive information system (EIS) (p ) extranet (p ) groupware (p ) intranet (p ) MIS (p ) telecommuting (p ) transnational firm (p ) workgroup support system (WSS) (p )

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Frequently Asked Questions I don't understand the four levels of a traditional organization. Please compare the levels. What is information granularity? How do tactical managers make use of this information? What is the difference between the upward and downward flow of information?

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved FAQs cont. What type of system involves processing sales orders, paying account payable, and ordering inventory? What is an MIS? Who uses an executive information system? Is it only for executives? I'm confused. Is a firewall software or hardware?

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved FAQs What is the difference between an intranet and an extranet? When would I use a whiteboard? What does it do? Do telecommuters only work at home? What are transnational firms?

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Hands On Projects E-Commerce Is there a site for legally buying exotic animals? Try to find one on the Internet. –What animals are sold? –Do you have to pay for shipping? –Are there any care lessons? –What if you can't get along with your new pet? Will the company allow you to return it?

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Hands On Projects On the Web Visit the Web site for your school's library or another library: –Are there any e-books available? –How many online databases are supported? –Do you have to be a student or faculty member to access the database? –Are there links to other libraries?

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Hands On Projects Ethics, Security & Privacy What should happen to a person who "breaks" the firewall of a school or organization? One school (true story) ended up hiring the student as a programmer. Should hackers be prosecuted?

McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved Hands On Projects Group Activities Locate a company that is transnational and sells a product: –Where is the firm's headquarters? –Where are their products made? Foreign country? USA? –How profitable has the company been over the past two years? –What could be their issues with transborder data flow?