Chapter 6
Organizational
Information
Systems
www.prenhall.com/jessup
6-1
Learning Objectives
1. Describe the characteristics that
differentiate the operational,
managerial, and executive
levels of an organization
2. Explain the characteristics of
the three information systems
designed to support each
unique level of an organization:
transaction processing systems,
management information
systems, and executive
information systems
Information Systems Today
6-2
(©2006 Prentice Hall)
Learning Objectives
3. Describe the characteristics of
six information systems that
span the organizational,
managerial, and executive
levels: decision support
systems, expert systems, office
automation systems,
collaboration technologies,
functional area information
systems, and global information
systems
Information Systems Today
6-3
(©2006 Prentice Hall)
Levels of the Organization
Information Systems Today
6-4
(©2006 Prentice Hall)
Levels of the Organization Explained
Executive Level
Strategic planning and responses to strategic issues
occur here. Executive decisions are usually unstructured
and are made using information consolidated internal
and external information
Managerial Level
Monitoring and controlling of operational activities
and executive information support occur here.
Managerial decisions are usually semistructured
and are made using procedures and ad hoc tools
Operational Level
Day-to-day business processes and interactions
with customers occur here. Operational decisions
are usually structured and are made using
established policies and procedures
Information Systems Today
6-5
(©2006 Prentice Hall)
Who, What, Why: Organizational Level
Information Systems Today
6-6
(©2006 Prentice Hall)
Who, What, Why: Managerial Level
Information Systems Today
6-7
(©2006 Prentice Hall)
Who, What, Why: Executive Level
Information Systems Today
6-8
(©2006 Prentice Hall)
Basic Systems Model
Information Systems Today
6-9
(©2006 Prentice Hall)
System Type: Transaction Processing Systems
Information Systems Today
6-10
(©2006 Prentice Hall)
System Description: Transaction Processing Systems
TPSs are a special class of information systems designed to
process business events and transactions
Architecture Components
• Source Documents – these contain the event or
transaction information to be processed by system
• Data Entry Methods
• Manual – a person entering a source document by hand
• Semiautomated – using a capture device to enter the source
document (e.g. a barcode scanner)
• Fully Automated – no human intervention, one computer
talks or feeds another computer (e.g. automatic orders from
inventory systems)
• Processing – transactions can be either:
• Online – processed individually in real-time
• Batch – grouped and processed together at a later time
Information Systems Today
6-11
(©2006 Prentice Hall)
System Example: Payroll System (TPS)
Information Systems Today
6-12
(©2006 Prentice Hall)
System Architecture: Transaction Processing System
Information Systems Today
6-13
(©2006 Prentice Hall)
System Type: Management Information System
Information Systems Today
6-14
(©2006 Prentice Hall)
System Description: Management Information Systems
MISs are used by managerial employees to support recurring
decision making in managing a function or the entire business
Supported Activities
• Scheduled Reporting - the system produces automatically
based on a predetermined schedule. Some include:
• Key Indicator – High-level summaries to monitor
performance (e.g. Monthly Sales Report)
• Exception – Highlights situations where data is out of normal
range (e.g. Monthly Late Shipments)
• Drill Down – Provides lower level detail aggregated in a
summary report (printed only if needed)
• Ad Hoc Reporting – unscheduled reports that are usually
custom built to answer a specific question (e.g. sales data
by person report to identify issues)
Information Systems Today
6-15
(©2006 Prentice Hall)
System Architecture: Management Information System
Information Systems Today
6-16
(©2006 Prentice Hall)
System Type: Executive Information System (EIS)
Information Systems Today
6-17
(©2006 Prentice Hall)
System Description: Executive Information Systems
EISs, also called Executive Support Systems (ESS), are
special purpose information systems to support executive
decision-making
System Details
These systems use graphical user interfaces to display
consolidated information and can deliver both:
• Soft Data - textual news stories or non-analytical data
• Hard Data – facts, numbers, calculations, etc.
Supported Activities
The activities supported by these kinds of systems include:
• Executive Decision Making
• Long-range Strategic Planning
• Monitoring of Internal and External Events
• Crisis Management
• Staffing and Labor Relations
Information Systems Today
6-18
(©2006 Prentice Hall)
System Architecture: Executive Information Systems
Information Systems Today
6-19
(©2006 Prentice Hall)
System Example: Executive Reporting Drill-down (EIS)
Second Level
Data Drill Down
First Level
Graphical Summary
Information Systems Today
6-20
(©2006 Prentice Hall)
Systems That Span Organizational Boundaries
Information Systems Today
6-21
(©2006 Prentice Hall)
System Description: Decision Support Systems
Decision Support Systems
Special-purpose information systems designed to support
managerial-level employees in organizational decision
making
System Details
These systems use computational software to construct
models for analysis (most common MS Excel) to solve
semi-structured problems (e.g. sales or resource forecasts)
Supported Activities:
“What-if” analysis – changing one or more variables in the
model to observe the resulting effect (e.g. what is the
payment if the interest rate increases 1%)
Information Systems Today
6-22
(©2006 Prentice Hall)
Characteristics of Decision Support Systems
Information Systems Today
6-23
(©2006 Prentice Hall)
System Description: Common Decision Support Systems
Information Systems Today
6-24
(©2006 Prentice Hall)
System Architecture: Decision Support Systems
Information Systems Today
6-25
(©2006 Prentice Hall)
System Example – Loan Calculator
Variables to be Analyzed
Loan Calculator Model
Analysis Results
Information Systems Today
6-26
(©2006 Prentice Hall)
System Description: Expert Systems
Expert Systems
Special-purpose systems used by operational level
employees to make decisions usually made by more
experienced employees or an expert in the field
System Details
These systems use inference engines that match facts
and rules, sequence questions for the user, draw a
conclusion, and present the user a recommendation
Supported Activities:
These systems support many activities including:
• Medical Diagnosis
• Machine Configuration
• Financial Planning
• Software Application Assistance (help wizards)
Information Systems Today
6-27
(©2006 Prentice Hall)
System Architecture: Expert Systems
Information Systems Today
6-28
(©2006 Prentice Hall)
System Example – Web-based Expert Systems EXSYS
Information Systems Today
6-29
(©2006 Prentice Hall)
System Description: Office Automation Systems
Office Automation Systems
A collection of software and hardware products that
increase productivity within the office setting
Supported Activities
The activities supported by these kinds of systems include:
• Scheduling Resources
Examples: electronic calendars with resource
management (equipment, facilities, etc.)
• Document Preparation
Examples: software (word processing and desktop
publishing); hardware (printers)
• Communicating
Examples: e-mail, voice mail, videoconferencing
and groupware
Information Systems Today
6-30
(©2006 Prentice Hall)
System Architecture: Office Automation Systems
Information Systems Today
6-31
(©2006 Prentice Hall)
System Example – Scheduling System
Information Systems Today
6-32
(©2006 Prentice Hall)
System Description: Collaboration Technologies
Videoconferencing
Software and hardware the that allow parties to meet
electronically with both picture and voice
Supported Activities
• Stand-alone Videoconferencing
• High quality, typically very expensive systems using
dedicated microphones, cameras and hardware.
• Can support meetings between several people and
locations simultaneously
• Desktop Videoconferencing
• Lower quality, relatively inexpensive systems using a
PC, small camera, and a microphone or telephone for
voice communication
• Allows two individuals to communicate from a desktop
Information Systems Today
6-33
(©2006 Prentice Hall)
System Description: Collaborative Techs (Groupware)
Groupware
Software that enables people to work together more effectively
Supported Activities
These systems come in two types:
• Asynchronous Groupware – Systems that do not
require users to be on the system working at the same
time including: e-mail, newsgroups, workflow automation,
group calendars, and collaborative writing tools
• Synchronous Groupware – Systems that allow and
support simultaneous group interactions including shared
whiteboards, electronic meeting support systems, video
communication systems
Information Systems Today
6-34
(©2006 Prentice Hall)
System Description: Groupware
Information Systems Today
6-35
(©2006 Prentice Hall)
System Description: Groupware Benefits
Information Systems Today
6-36
(©2006 Prentice Hall)
System Examples – Groupware
Information Systems Today
6-37
(©2006 Prentice Hall)
System Description: Functional Area Info Systems
Functional Area Information Systems
Cross-organizational information systems are
designed to support a specific functional area
Supported Activities
The following functional organizations have systems
to support their operational and managerial activities
• Accounting
• Finance
• Human Resources
• Marketing
• Operations
Information Systems Today
6-38
(©2006 Prentice Hall)
System Description: Functional Area Info Systems
Information Systems Today
6-39
(©2006 Prentice Hall)
System Examples: Functional Area Info Systems
Information Systems Today
6-40
(©2006 Prentice Hall)
System Description: Global Information Systems
Global Information Systems
A variety of special-class systems used to support
organizations that operate globally
Supported Activities
Depending on the organization, one or more of these
systems may be required (definitions on next slide):
• International Accounting Systems
• Transnational Information Systems
• Multinational Information Systems
• Global Information Systems
• Collaborative Information Systems
Information Systems Today
6-41
(©2006 Prentice Hall)
System Examples: Global Information Systems
Information Systems Today
6-42
(©2006 Prentice Hall)