managing information systems

Managing Information Managing Information SystemsSystems

Information Systems in OrganisationsPart 1

Dr. Stephania Loizidou Himona

ACSC 345

Dr. S. Loizidou - ACSC345Dr. S. Loizidou - ACSC345 22

ObjectivesObjectives

To understand the role of IS within To understand the role of IS within organisationsorganisations

To understand the diversity of types of IS To understand the diversity of types of IS within a business / organisationwithin a business / organisation

To understand relationships between IS and To understand relationships between IS and business functionsbusiness functions


TopicsTopics

Types of Information System in Types of Information System in Organisations:Organisations:– By organisational levelBy organisational level– By function within organisational levelBy function within organisational level– Examples in functional areasExamples in functional areas


IS at the Organisational LevelIS 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



Operational-levelOperational-level– Elementary activities and routine transactionsElementary activities and routine transactions– Data current and accurateData current and accurate

Knowledge-levelKnowledge-level– Support knowledge and data workersSupport knowledge and data workers– Integrate new knowledge into the businessIntegrate new knowledge into the business– Office automationOffice automation



Management-levelManagement-level– Periodic monitoring, control, decision-making Periodic monitoring, control, decision-making

and administrationand administration– Is the business working well?Is the business working well?

Strategic-levelStrategic-level– Long-term (e.g. 5 year) planning and strategyLong-term (e.g. 5 year) planning and strategy– Internal and external informationInternal and external information


ExamplesExamples

What examples can you think of at the What examples can you think of at the different organisational levels?different organisational levels?


Types of ISTypes of IS

Transaction Processing Systems (TPS)Transaction Processing Systems (TPS) Knowledge Work Systems (KWS)Knowledge Work Systems (KWS) Office Automation Systems (OAS)Office Automation Systems (OAS) Management Information Systems (MIS)Management Information Systems (MIS) Decision-support Systems (DSS)Decision-support Systems (DSS) Executive Support Systems (ESS)Executive Support Systems (ESS)


Transaction Processing SystemsTransaction Processing Systems

Operational-level SystemsOperational-level Systems

Order Order trackingtracking

Machine controlMachine control Securities tradingSecurities trading PayrollPayroll CompensatioCompensationn

Order Order processingprocessing

Plant schedulingPlant scheduling Cash Cash managementmanagement

Accounts Accounts payablepayable

Training and Training and developmentdevelopment

Material Material movement and movement and controlcontrol

Accounts Accounts receivablereceivable

Employee Employee recordsrecords

Sales and Sales and MarketingMarketing

ManufacturingManufacturing FinanceFinance AccountinAccountingg

Human Human ResourcesResources

Systems that perform and record daily routine transactions necessary for business


Knowledge Work SystemsKnowledge Work Systems

Knowledge-level SystemsKnowledge-level Systems

Engineering workstationsEngineering workstations Graphics workstationsGraphics workstations Managerial workstationsManagerial workstations

Systems that aid the creation and integration of new knowledge into an organisation


Office Automation SystemsOffice Automation Systems

Knowledge-level SystemsKnowledge-level Systems

Word processingWord processing Document imagingDocument imaging E-mail / electronic E-mail / electronic calendarscalendars

Systems that are designed to increase the productivity of data workers


Management Information Management Information SystemsSystems

Management-level SystemsManagement-level Systems

Sales Sales managementmanagement

Inventory controlInventory control Annual budgetingAnnual budgeting Capital Capital investmentinvestment

Relocation Relocation analysisanalysis




Systems that serve planning, control and decision-making through routine summary and reports


Decision-support SystemsDecision-support Systems

Management-level SystemsManagement-level Systems

Sales region Sales region analysisanalysis

Production Production schedulingscheduling

Cost analysisCost analysis Pricing / Pricing / profitability profitability analysisanalysis

Contract Contract cost analysiscost analysis




Systems that combine data, models and analysis tools for non-routine decision-making


Executive Support SystemsExecutive Support Systems

Strategic-level SystemsStrategic-level Systems

5-year sales 5-year sales trend trend forecastingforecasting

5-year operating 5-year operating planplan

5-year budget 5-year budget forecastingforecasting

Profit Profit planningplanning

Personnel Personnel planningplanning




Systems that support non-routine decision-making through advanced graphics and communications


InterrelationshipsInterrelationships

TPS major producer of TPS major producer of datadata

External data also External data also required for MIS, DSS required for MIS, DSS and ESSand ESS

Typical loose coupling of Typical loose coupling of systemssystems

‘‘Digital firms’ have tighter Digital firms’ have tighter integrationintegration

ESS

TPSKWS

OAS

DSSMIS


Functional ExamplesFunctional Examples

Examples of IS by function:Examples of IS by function:– Sales and marketingSales and marketing– Manufacturing and productionManufacturing and production– Finance and accountingFinance and accounting– Human resourcesHuman resources


Sales and MarketingSales and Marketing

SystemSystem DescriptionDescription Organisational Organisational LevelLevel

Order processingOrder processing Enter, process and Enter, process and track orderstrack orders

OperationalOperational

Market analysisMarket analysis Identify customers and Identify customers and marketsmarkets

KnowledgeKnowledge

Pricing analysisPricing analysis Determine pricesDetermine prices ManagementManagement

Sales trendsSales trends Prepare 5 year Prepare 5 year forecastsforecasts

StrategicStrategic


Manufacturing and ProductionManufacturing and Production


Machine controlMachine control Control actions of Control actions of equipmentequipment


Computer-aided Computer-aided design (CAD)design (CAD)

Design new productsDesign new products KnowledgeKnowledge

Production planningProduction planning Decide number and Decide number and schedule of productsschedule of products

ManagementManagement

Facilities locationFacilities location Decide where to Decide where to locate facilitieslocate facilities

StrategicStrategic


Finance and AccountingFinance and Accounting


Accounts receivableAccounts receivable Track money owed Track money owed to firmto firm


Portfolio analysisPortfolio analysis Design firm’s Design firm’s investmentsinvestments

KnowledgeKnowledge

BudgetingBudgeting Prepare short-term Prepare short-term budgetsbudgets


Profit planningProfit planning Plan long-term Plan long-term profitsprofits

StrategicStrategic


Human ResourcesHuman Resources


Training and Training and developmentdevelopment

Track training, skills Track training, skills and appraisalsand appraisals


Career pathsCareer paths Design employee Design employee career pathscareer paths

KnowledgeKnowledge

Compensation Compensation analysisanalysis

Monitor wages, Monitor wages, salaries and benefitssalaries and benefits


Human resources Human resources planningplanning

Plan long-term Plan long-term workforce needsworkforce needs

StrategicStrategic


SummarySummary

Looked at the role of IS within organisationsLooked at the role of IS within organisations– At organisational levelsAt organisational levels

Looked at the diversity of types of IS within a Looked at the diversity of types of IS within a business / organisationbusiness / organisation– Six different functional types of ISSix different functional types of IS

Looked at relationships between IS and business Looked at relationships between IS and business functionsfunctions– Examples by functional areaExamples by functional area

managing information systems

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