Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill Chapter 11: Information Systems

Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You 11-2 McGraw-Hill Competencies (Page 1 of 2) Explain the functional view of an organization and describe each functionExplain the functional view of an organization and describe each function Describe the management levels and the informational needs for each level in an organizationDescribe the management levels and the informational needs for each level in an organization Discuss how information flows within an organizationDiscuss how information flows within an organization Discuss computer-based information systemsDiscuss computer-based information systems

Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You 11-3 McGraw-Hill Competencies (Page 2 of 2) Distinguish among a transaction processing system, a management information system, a decision support system, and an executive support systemDistinguish among a transaction processing system, a management information system, a decision support system, and an executive support system Distinguish between office automation systems and knowledge work systemsDistinguish between office automation systems and knowledge work systems Explain the difference between data workers and knowledge workersExplain the difference between data workers and knowledge workers

Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You 11-4 McGraw-Hill Introduction An information system is a collection of people, procedures, software, hardware, and dataAn information system is a collection of people, procedures, software, hardware, and data –They all work together to provide information essential to running an organization –Computers are used in organizations to keep records of events Competent end uses need to understand how the information flows as it moves through an organizationCompetent end uses need to understand how the information flows as it moves through an organization

Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You 11-5 McGraw-Hill Organizational Information Flow Information flows vertically and horizontally throughout an organizationInformation flows vertically and horizontally throughout an organization Information systems support the natural flow of information within an organization’s structureInformation systems support the natural flow of information within an organization’s structure 5 Functional Areas5 Functional Areas5 Functional Areas5 Functional Areas Management LevelsManagement LevelsManagement LevelsManagement Levels Information FlowInformation FlowInformation FlowInformation Flow

Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You 11-6 McGraw-Hill Five Functions of an Organization AccountingAccounting MarketingMarketing Human ResourcesHuman Resources ProductionProduction ResearchResearch Return

Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You 11-7 McGraw-Hill Management Levels Management is usually divided into three levels: Top, Middle, and SupervisorsManagement is usually divided into three levels: Top, Middle, and Supervisors Return

Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You 11-8 McGraw-Hill Information Flow (1 of 2) Each level of management has different information needsEach level of management has different information needs The information flows to support these needsThe information flows to support these needs –Top management Vertical, horizontal, and externalVertical, horizontal, and external –Middle management Vertical and horizontalVertical and horizontal –Supervisor Primarily verticalPrimarily vertical Return

Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You 11-9 McGraw-Hill Information Flow (Page 2 of 2) Return

Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You McGraw-Hill Computer-Based Information Systems

Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You McGraw-Hill Transaction Processing Systems (TPS) Records day-to-day transactions in a databaseRecords day-to-day transactions in a database Also called data processing systems (DPS)Also called data processing systems (DPS) One of the most essential uses of a TPS is in the accounting areaOne of the most essential uses of a TPS is in the accounting areaaccounting areaaccounting area

Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You McGraw-Hill TPS for Accounting Sales order processingSales order processing Accounts receivableAccounts receivable Inventory and purchasingInventory and purchasing

Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You McGraw-Hill Management Information Systems (MIS) Produces standardized reports to support decision-making by middle managersProduces standardized reports to support decision-making by middle managers Integrates data and summarizes details from databases in a structured formIntegrates data and summarizes details from databases in a structured form Produces predetermined reportsProduces predetermined reports –Periodic reports –Exception reports –Demand reports

Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You McGraw-Hill Decision Support Systems (DSS) Flexible tool for analyzing data for decision-making purposesFlexible tool for analyzing data for decision-making purposes Enables managers to get answers to unexpected and generally non-recurring problemsEnables managers to get answers to unexpected and generally non-recurring problems –Produces reports that do not have a fixed format Microsoft Access is often used to provide an easy front-end interface for performing SQL decision support queriesMicrosoft Access is often used to provide an easy front-end interface for performing SQL decision support queries

Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You McGraw-Hill Parts of a DSS UserUser –A decision-maker, like yourself System softwareSystem software –Operating system –Easy to learn and use DataData –Internal data –External data Decision modelsDecision models

Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You McGraw-Hill DSS Decision Models Strategic modelsStrategic models –assists top level management in long-range planning Tactical modelsTactical models –assists middle-management control the work –E.g., financial and sales promotion planning Operational modelsOperational models –assists lower-level managers accomplish the daily activities and objectives

Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You McGraw-Hill Executive Support Systems (ESS) Designed for top managementDesigned for top management Sophisticated software for presenting, summarizing, and analyzing data, but specifically designed to be easy-to-useSophisticated software for presenting, summarizing, and analyzing data, but specifically designed to be easy-to-use Provides immediate access to a company's key performance indicatorsProvides immediate access to a company's key performance indicators

Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You McGraw-Hill Other Information Systems Information workersInformation workers –Data workers –Knowledge workers Office automation systems (OASs)Office automation systems (OASs) –Supports data workers –Project management programs –Videoconferencing systems Knowledge work systems (KWSs)Knowledge work systems (KWSs) –Use specialized systems, such as CAD/CAM

Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You McGraw-Hill Careers In IT Information systems managers oversee the work of programmers, computer specialist, systems analysts, and other computer professionalsInformation systems managers oversee the work of programmers, computer specialist, systems analysts, and other computer professionals Employers look for individuals with strong technical backgrounds, with a Master’s degreeEmployers look for individuals with strong technical backgrounds, with a Master’s degree –Strong leadership and communications skills Information systems managers can expect to earn from $79,000 to $129,500 annuallyInformation systems managers can expect to earn from $79,000 to $129,500 annually

Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You McGraw-Hill A Look to the Future Information overloadInformation overload –May have a negative effect – is one of the major sources of overload How to handle How to handle –Be selective –Remove –Protect –Be brief –Stop spam –Don't respond Oftentimes, More Information Is Too Much Information

Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You McGraw-Hill Open-Ended Questions (1 of 2) Name and discuss the five common functions of most organizations.Name and discuss the five common functions of most organizations. Discuss the roles of the three kinds of management in a corporation.Discuss the roles of the three kinds of management in a corporation. What are the four most common computer-based information systems?What are the four most common computer-based information systems?

Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Computing Essentials 2012: Making IT Work for You McGraw-Hill Open-Ended Questions (2 of 2) Describe the different reports and their roles in managerial decision making.Describe the different reports and their roles in managerial decision making. What is the difference between an office automation system and a knowledge work system?What is the difference between an office automation system and a knowledge work system?