1 objectives to understand the role of is within organisations to understand the diversity of types...
DESCRIPTION
3 IS at the Organisational Level Operational-level –Elementary activities and routine transactions –Data current and accurate Knowledge-level –Support knowledge and data workers –Integrate new knowledge into the business –Office automationTRANSCRIPT
1
Objectives• To understand the role of IS within
organisations• To understand the diversity of
types of IS within a business / organisation
• To understand relationships between IS and business functions
2
IS at the Organisational Level
DATA WORKERSDATA WORKERS
KIND OF SYSTEM GROUPS SERVEDKIND OF SYSTEM GROUPS SERVED STRATEGIC LEVEL SENIOR MANAGERSSTRATEGIC LEVEL SENIOR MANAGERS
MANAGEMENT LEVEL MANAGEMENT LEVEL MIDDLE MANAGERS MIDDLE MANAGERS
OPERATIONAL OPERATIONAL OPERATIONAL OPERATIONAL LEVEL MANAGERS LEVEL MANAGERS
KNOWLEDGE LEVEL KNOWLEDGE &KNOWLEDGE LEVEL KNOWLEDGE &
SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN RESOURCESRESOURCESMARKETINGMARKETING
3
IS at the Organisational Level
• Operational-level– Elementary activities and routine
transactions– Data current and accurate
• Knowledge-level– Support knowledge and data workers– Integrate new knowledge into the business– Office automation
4
IS at the Organisational Level
• Management-level– Periodic monitoring, control, decision-
making and administration– Is the business working well?
• Strategic-level– Long-term (e.g. 5 year) planning and
strategy– Internal and external information
5
question• Discuss the different IS used at
different organisational levels?
6
Types of IS• Transaction Processing Systems (TPS)• Knowledge Work Systems (KWS)• Office Automation Systems (OAS)• Management Information Systems
(MIS)• Decision-support Systems (DSS)• Executive Support Systems (ESS)
7
Transaction Processing Systems
Operational-level SystemsOrder tracking
Machine control
Securities trading
Payroll Compensation
Order processing
Plant scheduling
Cash management
Accounts payable
Training and development
Material movement and control
Accounts receivable
Employee records
Sales and
Marketing
Manufacturing
Finance Accounting
Human Resource
s
Systems that perform and record daily routine transactions necessary for business
8
Knowledge Work Systems
Knowledge-level SystemsEngineering workstations
Graphics workstations Managerial workstations
Systems that aid the creation and integration of new knowledge into an organisation
9
Office Automation Systems
Knowledge-level SystemsWord processing Document imaging E-mail / electronic
calendars
Systems that are designed to increase the productivity of data workers
10
Management Information Systems
Management-level SystemsSales management
Inventory control
Annual budgeting
Capital investment
Relocation analysis
Sales and Marketing
Manufacturing
Finance Accounting
Human Resources
Systems that serve planning, control and decision-making through routine summary and reports
11
Decision-support Systems
Management-level SystemsSales region analysis
Production scheduling
Cost analysis Pricing / profitability analysis
Contract cost analysis
Sales and Marketing
Manufacturing
Finance Accounting
Human Resources
Systems that combine data, models and analysis tools for non-routine decision-making
12
Executive Support Systems
Strategic-level Systems5-year sales trend forecasting
5-year operating plan
5-year budget forecasting
Profit planning
Personnel planning
Sales and Marketing
Manufacturing
Finance Accounting
Human Resources
Systems that support non-routine decision-making through advanced graphics and communications
13
Interrelationships• 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
TPSKWS
OAS
DSSMIS
14
Functional Examples• Examples of IS by function:
– Sales and marketing– Manufacturing and production– Finance and accounting– Human resources
15
Sales and MarketingSystem Description Organisation
al LevelOrder processing Enter, process
and track ordersOperational
Market analysis Identify customers and markets
Knowledge
Pricing analysis Determine prices Management
Sales trends Prepare 5 year forecasts
Strategic
16
Manufacturing and Production
System Description Organisational Level
Machine control Control actions of equipment
Operational
Computer-aided design (CAD)
Design new products
Knowledge
Production planning
Decide number and schedule of products
Management
Facilities location Decide where to locate facilities
Strategic
17
Finance and Accounting
System Description Organisational Level
Accounts receivable
Track money owed to firm
Operational
Portfolio analysis Design firm’s investments
Knowledge
Budgeting Prepare short-term budgets
Management
Profit planning Plan long-term profits
Strategic
18
Human ResourcesSystem Descriptio
nOrganisational Level
Training and development
Track training, skills and appraisals
Operational
Career paths Design employee career paths
Knowledge
Compensation analysis
Monitor wages, salaries and benefits
Management
Human resources planning
Plan long-term workforce needs
Strategic
19
Summary• Looked at the role of IS within
organisations– At organisational levels
• Looked at the diversity of types of IS within a business / organisation– Six different functional types of IS
• Looked at relationships between IS and business functions– Examples by functional area