1. INFORMATION SYSTEM CONCEPTS

2. 2  Understand types of information systems  Introduce IS in Education

3. 3  By organisational level  By function within organisational level  Examples in functional areas

4. 4 DATA WORKERS KIND OF SYSTEM GROUPS SERVED STRATEGIC LEVEL SENIOR MANAGERS STRATEGIC LEVEL SENIOR MANAGERS MANAGEMENT LEVEL MIDDLE MANAGERS OPERATIONAL OPERATIONAL LEVEL MANAGERS OPERATIONAL OPERATIONAL LEVEL MANAGERS KNOWLEDGE LEVEL KNOWLEDGE & SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN RESOURCESMARKETING

5. 5 DATA WORKERS KIND OF SYSTEM GROUPS SERVED STRATEGIC LEVEL SENIOR MANAGERS STRATEGIC LEVEL SENIOR MANAGERS Executive Support System Board of Trustee, Advisory Board, VPS MANAGEMENT LEVEL MIDDLE MANAGERS MANAGEMENT LEVEL MIDDLE MANAGERS Decision Support System Deans, Heads Management Information System OPERATIONAL OPERATIONAL LEVEL MANAGERS OPERATIONAL OPERATIONAL LEVEL MANAGERSTransaction Processing System KNOWLEDGE LEVEL KNOWLEDGE & Knowledge Working System Office Automation System SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN RESOURCES MARKETING

6. 6  Elementary activities and routine transactions  current and accurate data, e.g.TPS

7. 7 OPERATIONAL LEVEL - SYSTEMS Order trackingMachine controlSecurities tradingPayrollCompensation Order processing Plant schedulingCash managementAccounts payable Training and development Material movement and control Accounts receivable Employee records Sales and Marketing ManufacturingFinanceAccountingHuman Resources Systems that perform and record daily routine transactions necessary for business Goal: to automate repetitive information processing activities Increase speed Increase accuracy Greater efficiency

8. 8 Computerized system that performs and records the daily routine transactions necessary to conduct the business; these systems serve the operational level of the organization Computerized system that performs and records the daily routine transactions necessary to conduct the business; these systems serve the operational level of the organization TYPE : Operational-level TYPE : Operational-level INPUTS : transactions, events INPUTS : transactions, events PROCESSING : updating PROCESSING : updating OUTPUTS : detailed reports OUTPUTS : detailed reports USERS : operations personnel, supervisors USERS : operations personnel, supervisors DECISION-MAKING: highly structured DECISION-MAKING: highly structured EXAMPLE: payroll, accounts payable

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11. 11 Systems that aid the creation and integration of new knowledge into an organisation, e.g KWS, OAS

12. 12 KNOWLEDEGE –LEVEL SYSTEMS Engineering workstationsGraphics workstationsManagerial workstations Systems that aid the creation and integration of new knowledge into an organisation

13. 13 Information system that aids knowledge workers in the creation and integration of new knowledge in the organization. TYPE: Knowledge-level TYPE: Knowledge-level INPUTS: design specifications INPUTS: design specifications PROCESSING: modelling PROCESSING: modelling OUTPUTS: designs, graphics OUTPUTS: designs, graphics USERS: technical staff; professionals USERS: technical staff; professionals EXAMPLE: Engineering workstations

14. 14 KNOWLEDGE –LEVEL SYSTEMS Word processingDocument imagingE-mail / electronic calendars Examples: Communicating and scheduling Document preparation Analyzing data Consolidating information Systems that are designed to increase the productivity of data workers

15. 15 Computer system, such as word processing, electronic mail system, and scheduling system, that is designed to increase the productivity of data workers in the office. TYPE: Knowledge-level TYPE: Knowledge-level INPUTS: documents, schedules INPUTS: documents, schedules PROCESSING: document management, scheduling, communication PROCESSING: document management, scheduling, communication OUTPUTS: documents; schedules OUTPUTS: documents; schedules USERS: clerical workers USERS: clerical workers EXAMPLE: document imaging system

16. 16 Management-level Periodic monitoring, control, decision-making and administration Is the business working well? e.g. MIS, DSS

17. 17 Management-level Systems Sales management Inventory controlAnnual budgetingCapital investment Relocation analysis Sales and Marketing ManufacturingFinanceAccountingHuman Resources Systems that serve planning, control and decision- making and reports Types of reports: Scheduled report Key-indicator report Exception report Drill-down report Ad hoc report

18. 18 Information system at the management level of an organization that serves the functions of planning, controlling, and decision making by providing routine summary and exception reports. TYPE: Management-level TYPE: Management-level INPUTS: high volume data INPUTS: high volume data PROCESSING: simple models PROCESSING: simple models OUTPUTS: summary reports OUTPUTS: summary reports USERS: middle managers USERS: middle managers DECISION-MAKING: structured to semi-structured DECISION-MAKING: structured to semi-structured EXAMPLE: annual budgeting

19. 19 1. MIS support structured decisions at the operational and management control levels. However, they are also useful for planning purposes of senior management staff. 2. MIS are generally reporting and control oriented. They are designed to report on existing operations and therefore to help provide day-to-day control of operations. 3. MIS rely an existing corporate data-and data flows. 4. MIS have little analytical capability. 5. MIS generally aid in decision making using past and present data. 6. MIS are relatively inflexible. 7. MIS have an internal rather than an external orientation.

20. 20 ▪ Sales forecasting ▪ Financial management and forecasting ▪ Manufacturing planning and scheduling ▪ Inventory management and planning ▪ Advertising and product pricing

21. 21 MANAGEMENT –LEVEL SYSTEMS Sales region analysis Production scheduling Cost analysisPricing / profitability analysis Contract cost analysis Sales and Marketing ManufacturingFinanceAccountingHuman Resources Systems that combine data, models and analysis tools for non-routine decision-making

22. 22 Information system at the management level of an organization that combines data and sophisticated analytical models or data analysis tools to support semi-structured and unstructured decision making. TYPE: Management-levelTYPE: Management-level INPUTS: low volume data INPUTS: low volume data PROCESSING: simulations, analysis PROCESSING: simulations, analysis OUTPUTS: decision analysis OUTPUTS: decision analysis USERS: professionals, staff managers USERS: professionals, staff managers DECISION-MAKING: semi-structured DECISION-MAKING: semi-structured EXAMPLE: sales region analysis

23. 23 1. DSS offer users flexibility, adaptability, and a quick response. 2. DSS operate with little or no assistance from professional programmers. 3. DSS provide support for decisions and problems whose solutions cannot be specified in advance. 4. DSS use sophisticated data analysis and modelling tools.

24. 24  Strategic-level  Long-term (e.g. 5 year) planning and strategy  Internal and external information e.g. ESS

25. 25 STRATEGIC-LEVEL SYSTEMS 5-year sales trend forecasting 5-year operating plan 5-year budget forecasting Profit planning Personnel planning Sales and Marketing ManufacturingFinanceAccountingHuman Resources Systems that support non-routine decision- making through advanced graphics and communications Executive-level decision making Long-range and strategic planning Monitoring internal and external events Crisis management Staffing and labor relations

26. 26 Information system at the strategic level of an organization that address unstructured decision making through advanced graphics and communications. TYPE: Strategic level TYPE: Strategic level INPUTS: aggregate data; internal and external INPUTS: aggregate data; internal and external PROCESSING: interactive PROCESSING: interactive OUTPUTS: projections OUTPUTS: projections USERS: senior managers USERS: senior managers DECISION-MAKING: highly unstructured DECISION-MAKING: highly unstructured EXAMPLE: 5 year operating plan

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28. 28  TPS major producer of data  External data also required for MIS, DSS and ESS  Typical loose coupling of systems  ‘Digital firms’ have tighter integration ESS TPS KWS OAS DSSMIS

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30. 30  The accounting information system  The finance information system  The manufacturing (operations, production) information system  The marketing information system  The human resources information system

31. 31  Examples of IS by function:  Sales and marketing  Manufacturing and production  Finance and accounting  Human resources

32. 32 SystemDescriptionOrganisational Level Order processingEnter, process and track orders Operational Market analysisIdentify customers and markets Knowledge Pricing analysisDetermine pricesManagement Sales trendsPrepare 5 year forecasts Strategic

33. 33  Systems that help the firm identify customers for the firm’s products or services, develop products and services to meet customer’s needs, promote products and services, sell the products and services, and provide ongoing customer support.

34. 34 SystemDescriptionOrganisational Level Machine controlControl actions of equipment Operational Computer-aided design (CAD) Design new productsKnowledge Production planningDecide number and schedule of products Management Facilities locationDecide where to locate facilities Strategic

35. 35  Systems that deal with the planning, development, and production of products and services and with controlling the flow of production.

36. 36 SystemDescriptionOrganisational Level Accounts receivableTrack money owed to firm Operational Portfolio analysisDesign firm’s investments Knowledge BudgetingPrepare short-term budgets Management Profit planningPlan long-term profitsStrategic

37. 37  Systems that keep track of the firm’s financial assets and fund flows.

38. 38 SystemDescriptionOrganisational Level Training and development Track training, skills and appraisals Operational Career pathsDesign employee career paths Knowledge Compensation analysisMonitor wages, salaries and benefits Management Human resources planning Plan long-term workforce needs Strategic

39. 39  Systems that maintain employee records; Track employee skills, job performance, and training; And support planning for employee compensation and career development.