1. Organizations, Environments and Information Technology
Lecture 1
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2. Prepared by Natalie Rose
Assessment
Mid Module Exam
June 16, 2008
20%
Group Project/Presentation
August 4, 2008
End of Term Exam
TBA
60%
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3. Prepared by Natalie Rose
Web Page and Book List
Main Course Web Page is at:
Recommended Text
Laudon & Laudon: Management Information Systems, 9th Edition
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4. Components of Management Information System
Organizations
Management
Technology
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5. What is meant by Technology?
It is the use of power, tools and materials for production.
Information Technology = Hardware + software + storage + (communications)
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6. What is meant by an Organization?
“A stable, formal, social structure that takes resources from the environment and processes them to produce outputs” - Technical (black box) definition
“A collection of rights, privileges, obligations and responsibilities that are delicately balanced over a period of time through conflict and conflict resolution” - Behavioural (internal) definition
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7. People within the Organizations
Category
Examples
Examples of Tasks
Knowledge Workers
Engineers
Architects
Scientists
Design Products
Create New Knowledge
Data Workers
Secretaries
Bookkeepers
Process Paperwork
Production or Service Workers
Machinists
Assemblers
Produce Products
Managers
Senior, Middle, Operational
Make Decisions
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8. What is meant by Management?
Classical view (what a manager is expected to do): Plan, organise, coordinate, decide and control.
Behavioural models (what a manager actually does) - roles of a manager:
Interpersonal (figurehead, leader, liaison)
Informational (hub, disseminator, spokesperson)
Decisional (entrepreneur, disturbance handler, resource allocator, negotiator)
Therefore Management is the process of achieving organizational goals by planning, organizing,leading and controlling organizational resources.
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So what is Information?
Data
Streams of raw numbers (bits/bytes)
Rain = true
Interpretation of data by humans
Information
“It is raining today”
Interpretation of
information in
context of prior
understanding
Knowledge
“If I go out I will get wet”
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10. What is An Information System?
“A set of interrelated components that collect (or retrieve), process, store and distribute information to support decision making, coordination and control in an organization......also help managers and workers analyse problems, visualise complex subjects and create new products” [laudon and laudon, 2005]
Examples: ATMs, airline reservation systems, course reservation systems.
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11. Components of an Information System
Input:- Data are collected and entered into computer.
Processing: Data are manipulated into information using mathematical, statistical, and other tools.
Output: Information is displayed or presented
Feedback: This is an output that help the organization to evaluate or correct the input stage.
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12. The Role of Information in An Organization
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13. The Role of Information in An Organization (resources)
Information as a Resource. Resources are inputs to the production of outputs. Examples include time, money, people, raw materials, and machinery. Managers can use information to replace labor.
Information as a resource
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14. The Role of Information in An Organization (asset)
Information as an Asset. An asset is defined as the property of a person or an organization that contributes to a company’s output. Using information as an asset encourages managers to view information as a strategic investment.
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15. The Role of Information in An Organization (commodity)
Information as a Commodity. When information is treated as a salable product, it is viewed as a commodity. Publishers of directories, television guides, and airline guides are examples of companies making a profit by selling information.
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16. Traditional Organizational Structure
Senior Managers
Middle Managers
Knowledge and Data Workers
Strategic Level
Sales and Marketing
Accounting
Management Level
Knowledge Level
Operational Level
Finance
Manufacturing
Human Resources
INFORMATION SYSTEM
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Organizations
Organizational structure
Organizational subunits and the way they are related to the overall organization
Traditional organizational structure
Major department heads report to a president or top-level manager
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S. Burry,
President
Bailey, Legal counsel
B. Wong,
VP Accounting
C.Rodrig, VP Information Systems
R. Henderson, VP Marketing
K. Kelly, VP Production
V. Cisborn, VP Human Resources
S. Samuel Supervisor
L. Bashran, Supervisor
Traditional Organizational Structure
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19. Organizational Structure
Hierarchical organizational structure
Series of levels
Those at high levels have more power and authority within an organization
Flat organizational structure
An organizational structure with a reduced number of layers of management
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20. Organizational Structure
Empowerment
Giving employees and their managers more power, responsibility, and authority to make decisions, take certain actions, and have more control over their jobs
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21. Other Organizational Structures
Project organizational structure
An organization structure centred on major products or services
Contrast with traditional structure
Team organizational structure
An organizational structure centred on work teams or groupsTemporary or permanent teams
Work groups
Various sizes
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22. Centered on major products and services Temporary project teams.
B. Woods,
President Air & Aerospace Co.
T. Walker,
Senior VP, Aircraft Division
W. Butler, Senior VP, Aerospace Division
O. Teco, Senior VP,
Communications & Satellite Division
VP,
Finance
VP,
Marketing
VP,
Production
VP,
Sales
VP,
Finance
VP,
Marketing
VP,
Production
VP,
Sales
VP,
Finance
VP,
Marketing
VP,
Production
Project Organizational Structure
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23. Other Organizational Structures
Multidimensional organizational structure
A structure that may incorporate several structures at the same time
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24. Vice President, Marketing Vice President, Production
Vice President, Finance
Publisher, College Division
Marketing Group
Production Group
Finance Group
Publisher, Trade Division
Publisher,
High School Division
Multidimensional Organizational Structure
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25. Virtual Organizational Structure
Employs business units in geographically dispersed areas
People may never meet face to face
Can be permanent or temporary
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26. Types of information system by their: Relevance to different organizational levels/users
Senior Managers
Middle Managers
Knowledge and Data Workers
Strategic Level
Sales and Marketing
Accounting
Management Level
Knowledge Level
Operational Level
Finance
Manufacturing
Human Resources
INFORMATION SYSTEM
USERS
Operational Managers
FUNCTIONS SERVED
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27. Operational Level System
Support operational managers
Information systems aim to:
Answer routine questions
Track flow of transactions
Keep track of elementary activities (e.g. sales, receipts, cash deposits)
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28. Knowledge Level System
Support knowledge and data workers
Information systems aim to:
Integrate new knowledge into business
Help control flow of paperwork
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29. Management Level System
Support middle managers
Information systems aim to assist in:
Monitoring, controlling, decision making and administration
Producing periodic reports
Some non-routine decision making
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30. Strategic Level System
Support senior managers
Information systems aim to assist:
In their understanding of strategic issues/long- term trends
To utilise internal and external information
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31. Types of information system by their: Relevance to different business functions
5-year sales trend forecasting
5-year operating plan
5-year budget forecasting
Profit planning
Personal planning
Strategic-Level Systems
Executive Support Systems (ESS)
Sales Management
Sales Region analysis
Management-Level Systems
Inventory control
Production scheduling
Annual budgeting
Cost analysis
Capital investment analysis
Pricing/profitability analysis
Relocation analysis
Contract cost analysis
Management Information Systems (MIS)
Decision-Support Systems (DSS)
Knowledge-Level Systems
Engineering Workstations
Word processing
Graphics workstations
Document Imaging
Managerial workstations
Electronic calendars
Knowledge Work System (KWS)
Office Systems
Order tracking
Order processing
Operational-Level Systems
Machine control
Plant scheduling
Machine movement control
Securities trading
Cash management
Payroll
Accounts payable
Accounts receivable
Compensation
Training & development
Employee record keeping
Transaction Processing Systems (TPS)
Sales and Marketing
Manufacturing
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Finance
Accounting
Human Resources

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Specific types of Information System Transaction Processing Systems (TPS)
Aid operational managers
Most common form of information system
Handle routine information manipulation –sorting, listing, merging etc
Many online so users can interact with database simultaneously
Provide information to other types of systems
Critical
Example –airline computerised reservation systems
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33. Specific types of Information System Knowledge Work Systems (KWS)
Aid knowledge workers, often professionals (e.g. Engineers, Scientists)
Create new information and knowledge through modelling and simulation
Integrate knowledge into business
Example –engineering design systems to enable engineers to design complex computer chips
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34. Specific types of Information System Office Systems
Primarily aid data workers –secretaries, bookkeepers, clerks, etc.
Process rather than create information
Coordination/communication
Examples - , word processing, electronic filing, scheduling, electronic calendars, video conferencing
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Specific types of Information System Management Information Systems (MIS)
Aid middle managers
Provide focused view of information flow
Regular reports on internal events –weekly, monthly, yearly Planning, controlling, decision making
Depend on TPS
Not flexible or analytical –answer predefined questions
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36. Specific types of Information System Decision Support Systems (DSS)
Primarily aid middle managers
Unique, rapidly changing decisions, not predefined
Analytical
Use internal information from TPS and MIS
Use external information –stock prices, competitor prices
Have variety of models to analyse data, and user- friendly software
Flexible
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37. Specific types of Information System Decision Support Systems (DSS)
Examples: Airlines –passenger demand forecasting, flight scheduling
Insurance companies –customer buying patterns and fraud detection
Customer relationship management – getting data from website log
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38. Specific types of Information System Executive Support Systems (ESS)
Historically, executives have received numerous reports, 100’s of pages long
Information overload
Need to detect warning signals indicating threats or opportunities
Senior managers (executives) Non-routine decisions requiring judgment, evaluation, insight
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39. Specific types of Information System Executive Support Systems (ESS)
General, not fixed or specific
Use MIS, DSS, and external databases Filter, compress, track
Use advanced graphics software, little training required
Allow drilling down to detailed data underneath
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Considering information systems in terms of business functions Sales and Marketing
Sales
Contact customers
Sell products and services
Take orders
Follow up
Marketing
Identify customers
Determine needs/wants
Plan and develop products and services to meet needs
Advertise and promote so customers aware of products/services
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41. Sales and Marketing Requirements for an Information System
Order processing
Market analysis (from Market Research, demographics etc)
Sales analysis
Pricing analysis
Sales forecasting
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Considering information systems in terms of business functions Manufacturing/Production
Production of products/services
Planning, development, maintenance of production facilities
Establishing production goals Acquiring & storing materials, ensuring their availability
Scheduling
Quality control
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43. Manufacturing/Production Requirements for an Information System
Inventory
Machine control
Computer aided design (CAD) for new products
Production planning
Facilities (new plant) location
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Considering information systems in terms of business functions Finance and Accounting
Finance
Managing firm’s financial assets –cash, stocks, bonds etc
Maximising return on assets
Acquiring new financial assets
Accounting
- Managing/maintaining financial records –receipts, payroll, etc
Accounting for flow of funds
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45. Finance and Accounting Requirements for an Information System
Tracking flow of funds in the firm
Designing portfolio of investments
Budget preparation, control of financial resources
Profit planning and long term investment goals
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Considering information systems in terms of business functions Human Resources
Attract, develop and maintain workforce
Identify potential employees
Maintain complete records on existing employees
Develop training and development programs
Evaluate employee performance
Enroll employees in benefit plans
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