© 2006 Pearson Education Canada Inc.6-1 Chapter 6 Organizational Information Systems PowerPoint Presentation Jack Van Deventer Ward M. Eagen

© 2006 Pearson Education Canada Inc.6-2 Decision-Making Levels of an Organization

© 2006 Pearson Education Canada Inc.6-3 General Types of Information Systems Transaction Processing Systems (TPS) Transaction Processing Systems (TPS) Management Information Systems (MIS) Management Information Systems (MIS) Decision Support Systems (DSS) Decision Support Systems (DSS) Executive Support Systems (ESS) or Executive Information Systems Executive Support Systems (ESS) or Executive Information Systems Expert Systems Expert Systems Office Automation Systems Office Automation Systems

© 2006 Pearson Education Canada Inc.6-4 General Types of Information Systems Transaction Processing Systems (TPS) Transaction Processing Systems (TPS)  To record transactions  Used at operational level of the organization  Goal: To automate repetitive information processing activities  Increase speed  Increase accuracy  Greater efficiency

© 2006 Pearson Education Canada Inc.6-5 General Types of Information Systems Transaction Processing Systems (TPS) Transaction Processing Systems (TPS)  Examples:  Payroll  Sales and ordering  Inventory  Purchasing, receiving, shipping  Accounts payable and receivable

© 2006 Pearson Education Canada Inc.6-6 General Types of Information Systems Management Information Systems (MIS) Management Information Systems (MIS)  Used at managerial level of the organization  Examples:  Sales forecasting  Financial management and forecasting  Manufacturing planning and scheduling  Inventory management and planning  Advertising and product pricing

© 2006 Pearson Education Canada Inc.6-7 Information Systems that Span Organizational Boundaries Decision Support Systems (DSS) Decision Support Systems (DSS)  Designed to support organizational decision making (at all levels but mostly at the Managerial level)  “What-if” analysis  Example of a DSS tool: Microsoft Excel  Text and graphs  Models for each of the functional areas  Accounting, finance, personnel, Purchasing, etc.

© 2006 Pearson Education Canada Inc.6-8 General Types of Information Systems Executive Support Systems (ESS), or Executive Support Systems (ESS), or Executive Information Systems (EIS)  Used at executive level of the organization  Examples:  Executive-level decision making  Long-range and strategic planning  Monitoring internal and external events  Crisis management  Staffing and labour relations

© 2006 Pearson Education Canada Inc.6-9 Information Systems that Span Organizational Boundaries

© 2006 Pearson Education Canada Inc.6-10 Functional Area Information Systems Functional Area Information Systems

© 2006 Pearson Education Canada Inc.6-11  Used to:  Share messages, documents, reports, data/info, schedules  Virtual teams  Videoconferencing  Desktop Videoconferencing e.g. Microsoft’s Netmeetinge.g. Microsoft’s Netmeeting  SMART Boards  Groupware e.g. Lotus Notes (now owned by IBM)e.g. Lotus Notes (now owned by IBM)  Electronic Meeting Systems (EMSs) Collaboration Technologies

© 2006 Pearson Education Canada Inc.6-12  International IS  supports cross-border transactions e.g. Beneton’s TPS (central located in Italy)e.g. Beneton’s TPS (central located in Italy) e.g. Wal-Mart TPS/Inventory/Logistics & Supply Mgmt Systeme.g. Wal-Mart TPS/Inventory/Logistics & Supply Mgmt System  Transnational IS  Allows different parties/users to conduct transactions simultaneously e.g. Foreign-Exchange (currency) traderse.g. Foreign-Exchange (currency) traders  Multinational IS  Decentralises data processing locally to respond to local rules & regulations e.g. Accounting Information System (following that country’s Accounting Rules & Principles)e.g. Accounting Information System (following that country’s Accounting Rules & Principles) Global Information Systems WHY?  Because people, firms, & systems need to communicate and share over great distances and different time zones

© 2006 Pearson Education Canada Inc.6-13  Global IS  Uses centralised networks to handle transactions coming from anywhere in the world e.g. General Motors Global Inventory Management System (consolidates all inventory information from around the worlde.g. General Motors Global Inventory Management System (consolidates all inventory information from around the world  Collaborative IS  Integrates different applications e.g. International Airline Reservation Systems Galileo and Apollo used by multiple airlines and travel agents to “simultaneously book international flightse.g. International Airline Reservation Systems Galileo and Apollo used by multiple airlines and travel agents to “simultaneously book international flights Global Information Systems

© 2006 Pearson Education Canada Inc.6-14 Brief Case 1: Shell Canada Shell Canada’s easyPAY RFID payment technology was rolled out in 2001 Shell Canada’s easyPAY RFID payment technology was rolled out in 2001 Shell conducted extensive research that revealed speed and convenience are becoming increasingly important factors for their consumers Shell conducted extensive research that revealed speed and convenience are becoming increasingly important factors for their consumers The RFID technology allows the customer to bypass the lucrative service retail outlets, however positive customer reaction outweighs any potential loss of in-store sales The RFID technology allows the customer to bypass the lucrative service retail outlets, however positive customer reaction outweighs any potential loss of in-store sales

© 2006 Pearson Education Canada Inc.6-15 Brief Case 3: University of Victoria Screening graduate school applications can be very resource intensive and inconsistent Screening graduate school applications can be very resource intensive and inconsistent The University of Victoria has implemented an expert system by Acquired Intelligence Inc. which screens applicants based on a set of predefined questions and rates them for further review The University of Victoria has implemented an expert system by Acquired Intelligence Inc. which screens applicants based on a set of predefined questions and rates them for further review Students’ ratings place them in categories such as ‘accept,’ ‘reject,’ or ‘discuss,’ which saves committee members substantial time Students’ ratings place them in categories such as ‘accept,’ ‘reject,’ or ‘discuss,’ which saves committee members substantial time