1. © 2003 Prentice Hall, Inc.6-1 Chapter 6 Organizational Information Systems Information Systems Today Leonard Jessup & Joseph Valacich

2. © 2003 Prentice Hall, Inc.6-2

3. © 2003 Prentice Hall, Inc.6-3 Chapter 6 Objectives Understand characteristics of operational, managerial, and executive information systems Understand characteristics of operational, managerial, and executive information systems Understand characteristics of transaction processing systems, management information systems, and executive information systems Understand characteristics of transaction processing systems, management information systems, and executive information systems Understand characteristics of information systems that span organizational boundaries Understand characteristics of information systems that span organizational boundaries

4. © 2003 Prentice Hall, Inc.6-4 Decision-Making Levels of an Organization

5. © 2003 Prentice Hall, Inc.6-5 Decision-Making Levels of an Organization Executive level (top) Executive level (top)  Long-term decisions  Unstructured decisions Managerial level (middle) Managerial level (middle)  Decisions covering weeks and months  Semistructured decisions Operational level (bottom) Operational level (bottom)  Day-to-day decisions  Structured decisions

6. © 2003 Prentice Hall, Inc.6-6

7. © 2003 Prentice Hall, Inc.6-7 General Types of Information Systems Transaction Processing Systems (TPSs) Transaction Processing Systems (TPSs)  Transactions  Used at Operational level of the organization  Goal: to automate repetitive information processing activities  Increase speed  Increase accuracy  Greater efficiency

8. © 2003 Prentice Hall, Inc.6-8 General Types of Information Systems Transaction Processing Systems (TPSs) Transaction Processing Systems (TPSs)  Online processing  Batch processing Data input Data input  Manual data entry  Semiautomated data entry  Fully automated data entry

9. © 2003 Prentice Hall, Inc.6-9 General Types of Information Systems Transaction Processing Systems (TPSs) Transaction Processing Systems (TPSs)  Examples:  Payroll  Sales and ordering  Inventory  Purchasing, receiving, shipping  Accounts payable and receivable

10. © 2003 Prentice Hall, Inc.6-10 General Types of Information Systems Management Information Systems (MISs) Management Information Systems (MISs)  Two Types:  Management of IS in organizations  Specific information systems for mid-level managers  Used at managerial level of the organization

11. © 2003 Prentice Hall, Inc.6-11 General Types of Information Systems Management Information Systems Management Information Systems  Types of reports:  Scheduled report  Key-indicator report  Exception report  Drill-down report  Ad hoc report

12. © 2003 Prentice Hall, Inc.6-12 General Types of Information Systems Management Information Systems (MISs) Management Information Systems (MISs)  Examples:  Sales forecasting  Financial management and forecasting  Manufacturing planning and scheduling  Inventory management and planning  Advertising and product pricing

13. © 2003 Prentice Hall, Inc.6-13 General Types of Information Systems Executive Information Systems (EISs) Executive Information Systems (EISs)  Used at executive level of the organization  Highly aggregated form  Data types  Soft data – news and nonanalytical data  Hard data – facts and numbers

14. © 2003 Prentice Hall, Inc.6-14 General Types of Information Systems Executive Information Systems (EISs) Executive Information Systems (EISs)  Examples:  Executive-level decision making  Long-range and strategic planning  Monitoring internal and external events  Crisis management  Staffing and labor relations

15. © 2003 Prentice Hall, Inc.6-15 Information Systems that Span Organizational Boundaries

16. © 2003 Prentice Hall, Inc.6-16 Information Systems that Span Organizational Boundaries Decision Support Systems (DSSs) Decision Support Systems (DSSs)  Designed to support organizational decision making  “What-if” analysis  Example of a DSS tool: Microsoft Excel  Text and graphs  Models for each of the functional areas  Accounting, finance, personnel, etc.

17. © 2003 Prentice Hall, Inc.6-17 Information Systems that Span Organizational Boundaries Expert Systems (ESs) Expert Systems (ESs)  Mimics human expertise by manipulating knowledge  Rules (If-then)  Inferencing

18. © 2003 Prentice Hall, Inc.6-18 Information Systems that Span Organizational Boundaries Office Automation Systems (OASs) Office Automation Systems (OASs)  Examples:  Communicating and scheduling  Document preparation  Analyzing data  Consolidating information

19. © 2003 Prentice Hall, Inc.6-19 Information Systems that Span Organizational Boundaries Collaboration Technologies Collaboration Technologies  Virtual teams  Videoconferencing  Groupware  Electronic Meeting Systems (EMSs)

20. © 2003 Prentice Hall, Inc.6-20 Information Systems that Span Organizational Boundaries Functional Area Information Systems Functional Area Information Systems  Geared toward specific areas in the company:  Human Resources  Benefits  Marketing

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22. © 2003 Prentice Hall, Inc.6-22 Information Systems that Span Organizational Boundaries Global Information Systems Global Information Systems  International IS  Transnational IS  Multinational IS  Global IS