O RGANIZATIONAL I NFORMATION S YSTEMS

2 W HAT DO M ANAGERS D O ? They make decisions Better decisions = better managers The amount of information people must understand to make decisions, solve problems, and find opportunities is growing exponentially Fire your Customer

3 P ROGRAMMED V ERSUS N ONPROGRAMMED D ECISIONS Programmed decisions Decisions made using a rule, procedure, or quantitative method Easy to computerize using traditional information systems Non-programmed decisions Decision that deals with unusual or exceptional situations Not easily quantifiable

4 T YPES OF DECISIONS Structured –How many workers to staff line A –What is the EOQ for raw material Z –How many turbines to power Lethbridge? Unstructured –What are the benefits of merging with XYZ –How will consumer react if we lower the price by 10% –What are the benefits of MacDonald's opening up Hotels

6-5 L EVELS OF THE O RGANIZATION

6-6 W HO, W HAT, W HY : O RGANIZATIONAL L EVEL

6-7 W HO, W HAT, W HY : M ANAGERIAL L EVEL

6-8 W HO, W HAT, W HY : E XECUTIVE L EVEL

6-9 B ASIC S YSTEMS M ODEL

6-10 S YSTEM T YPE : T RANSACTION P ROCESSING S YSTEMS

6-11 S YSTEM D ESCRIPTION : T RANSACTION P ROCESSING S YSTEMS TPSs are designed to process business events and transactions Architecture Components Source Documents Data Entry Methods Manual – Semiautomated –(e.g. a barcode scanner) Fully Automated – (e.g. automatic orders from inventory systems) Processing Online Batch –

6-12 S YSTEM E XAMPLE : P AYROLL S YSTEM (TPS) Global logistics

6-13 S YSTEM T YPE : M ANAGEMENT I NFORMATION S YSTEM

6-14 S YSTEM D ESCRIPTION : M ANAGEMENT I NFORMATION S YSTEMS MISs are used by managerial employees to support recurring decision making in managing a function or the entire business Supported Activities Scheduled Reporting - produced automatically based on a predetermined schedule. Some include: Key Indicator – e.g. Monthly Sales Report Exception – e.g. Monthly Late Shipments Drill Down – printed only if needed Ad Hoc Reporting – unscheduled reports (e.g. sales data by person report to identify issues)

6-15 S YSTEM A RCHITECTURE : M ANAGEMENT I NFORMATION S YSTEM

6-16 S YSTEM T YPE : E XECUTIVE I NFORMATION S YSTEM (EIS)

6-17 S YSTEM D ESCRIPTION : E XECUTIVE I NFORMATION S YSTEMS EISs, also called Executive Support Systems (ESS), information systems to support executive decision-making System Details use graphical user interfaces to display consolidated information : Soft Data - Hard Data – Supported Activities Executive Decision Making Long-range Strategic Planning Monitoring of Internal and External Events Crisis Management Staffing and Labour Relations

6-18 S YSTEM A RCHITECTURE : E XECUTIVE I NFORMATION S YSTEMS

6-20 S YSTEMS T HAT S PAN O RGANIZATIONAL B OUNDARIES

6-21 D ECISION S UPPORT S YSTEMS Decision Support Systems systems designed to support managerial-level employees in organizational decision making System Details use computational software to construct models for analysis (most common is MS Excel) to solve semi-structured problems (e.g. sales or resource forecasts) Supported Activities: “What-if” analysis – changing one or more variables in the model to observe the effect (e.g. What is the payment if the interest rate increases by 1% ?)

6-22 C OMMON D ECISION S UPPORT S YSTEMS

6-23 E XPERT S YSTEMS Expert Systems used by operational level employees to make decisions usually made by more experienced employees or an expert in the field System Details use inference engines that match facts and rules, sequence questions for the user, draw a conclusion, and present a recommendation to the user Supported Activities: These systems support many activities, including: Medical Diagnosis Machine Configuration Financial Planning Software Application Assistance (help wizards)

6-24 O FFICE A UTOMATION S YSTEMS Office Automation Systems increase productivity within the office setting Supported Activities Scheduling Resources Examples: electronic calendars Document Preparation Examples: software (word processing and desktop publishing); hardware (printers) Communicating Examples: , voice mail, videoconferencing and groupware

6-25 C OLLABORATIVE T ECHS (G ROUPWARE ) Groupware enables people to work together more effectively Supported Activities These systems come in two types: Asynchronous Groupware – Systems that do not require users to be on the system working at the same time, including: , newsgroups, workflow automation, group calendars, and collaborative writing tools Synchronous Groupware – Systems that allow and support simultaneous group interactions including shared whiteboards, electronic meeting support systems, video communication systems

6-26 S YSTEM D ESCRIPTION : G ROUPWARE B ENEFITS

6-27 S YSTEMS T HAT S PAN O RGANIZATIONAL B OUNDARIES firestation

6-28 S YSTEM D ESCRIPTION : F UNCTIONAL A REA I NFO S YSTEMS Functional Area Information Systems Cross-organizational information systems are designed to support a specific functional area Supported Activities The following functional organizations have systems to support their operational and managerial activities Accounting Finance Human Resources Marketing Operations Peppers & Rogers Workforce absenteeism daytraders

6-29 G LOBAL I NFORMATION S YSTEMS Global Information Systems A variety of special-class systems used to support organizations that operate globally Supported Activities Depending on the organization, one or more of these systems may be required (definitions on next slide): International Accounting Systems Transnational Information Systems Multinational Information Systems Global Information Systems Collaborative Information Systems

6-30 S YSTEM E XAMPLES : G LOBAL I NFORMATION S YSTEMS