Information Management Chapter 11 Who Needs to Know What, and When? © The McGraw-Hill Companies, Inc., 2000.

Information Management

Chapter 11

Who Needs to Know What, and When?

© The McGraw-Hill Companies, Inc., 2000

2 CCI © The McGraw-Hill Companies, Inc., 2000Ch 11

Overview

• Trends in workplace

• Organizations: Departments, tasks, information

• Management information systems

• Future directions

Ch 11 © The McGraw-Hill Companies, Inc., 2000 3 CCI

Change in the Workplace

• Automation

• Downsizing and outsourcing

• Total quality management

• Employee management

• Reengineering

Ch 11 © The McGraw-Hill Companies, Inc., 2000 4 CCI

The Virtual Office

• A mobile office

• Integrated computer technologies

• Integrated communications technologies

• Increase of collaborative networks

Ch 11 © The McGraw-Hill Companies, Inc., 2000 5 CCI

Automation

• Change how we do our jobs

• Change the kind of work we do

• Change the world in which we work

Ch 11 © The McGraw-Hill Companies, Inc., 2000 6 CCI

Downsizing and Outsourcing

• Mainframe to networks

• Reducing the size of the workforce– flattened hierarchy– loss of middle management– outsourcing

Ch 11 © The McGraw-Hill Companies, Inc., 2000 7 CCI

Total Quality Management

• Also called TQM

• Continuous process improvement

• Requires worker involvement

• Requires input from the lower level of an organization to upper levels

Ch 11 © The McGraw-Hill Companies, Inc., 2000 8 CCI

Employee Empowerment

• Authority to act and make decisions on their own

• Old style: “need to know” - limited knowledge flow

• New style:- task-oriented teams through groupware and other collaborative means

Ch 11 © The McGraw-Hill Companies, Inc., 2000 9 CCI

Reengineering

• Rethink and redesign

• Process innovation and core process design

• Best with processes that have impact on the corporation– identification of processing

or shipping bottlenecks, for example

Ch 11 © The McGraw-Hill Companies, Inc., 2000 10 CCI

Departments, Tasks, Management Levels, and Types of Information

• What are the traditional organizational departments, tasks, levels of managers, and types of information needed by managers and workers?

O rg an iza tion C h art

V P R & D V P P rod u c tion V P M arke tin g

D irec to r o f P erson a l/P ayro ll D irec to r o f A ccou n tin g D irec to r o f F in an ce

V P A ccou n tin g an d F in an ce V P H R

C h ie f E xecu tive O ffice r

Ch 11 © The McGraw-Hill Companies, Inc., 2000 11 CCI

Departments

• R& D– research and development

• basic research

• product development

• Production/operations– makes the product– provides the service

Ch 11 © The McGraw-Hill Companies, Inc., 2000 12 CCI

Marketing

• Manages – advertising– promotion– sales

Ch 11 © The McGraw-Hill Companies, Inc., 2000 13 CCI

Accounting and Finance

• Handles all financial matters

• Cash, bills, paychecks, payments, investments, and financial statements

Ch 11 © The McGraw-Hill Companies, Inc., 2000 14 CCI

Human Resources

• Recruits

• Sick leave

• Retirement

• Compensation levels

• Professional development

• Employee relations

• Government regulations

Ch 11 © The McGraw-Hill Companies, Inc., 2000 15 CCI

Management Tasks

• Planning

• Organizing

• Staffing

• Supervising (leading)

• Controlling

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Management Levels

• Three levels of management:– Top, Middle,

Lower

Ch 11 © The McGraw-Hill Companies, Inc., 2000 17 CCI

Neumann-Hassan Triangle

Management

Operational

Tactical

Strategic

Planning

Nonmanagement

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Top Managers

• CEO or President

• Vice Presidents

• Principally concerned with planning

• Growth, new markets

• Goals

• Financial resources

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Middle Management

• Implementation of goals

• Oversee supervisors

• Make tactical decisions

• Principally organizing and staffing

• Determine volume of product

• Inventory

• Sales reports

Ch 11 © The McGraw-Hill Companies, Inc., 2000 20 CCI

Lower or Supervisory Management

• Operational decisions

• Manage or monitor non-management employees

• Principally leading and controlling

• Restocking inventory

• Sales monitoring

Ch 11 © The McGraw-Hill Companies, Inc., 2000 21 CCI

Types of Information

• Intelligent decision making requires information that is:– accurate– complete and relevant– cost effective– current– time-sensitive

Ch 11 © The McGraw-Hill Companies, Inc., 2000 22 CCI

Information Properties

• Level of summarization

• Degree of accuracy

• Timeliness

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Information Categories

• Structured information– detailed– current– concerned with past events– highly accurate, nonsubjective data– narrow range of facts– internal activities

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Information Categories (continued)

• Unstructured information– summarized– less current– concerned with future events– subjective data– broad range of facts– outside as well as inside organization

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Information Categories

• Semistructured information– some structured and

some unstructured

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Management Information Systems

• Who are the intended users of the TPS, MIS, DSS, EIS, ES, and OAS management information systems?

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MIS

• The purpose of computer-based information systems is to provide managers and other employees with the appropriate information to help them make decisions

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Computer-Based Information Support

Lower: TPS

Middle: MIS and DSS

Top: DSS and EIS

All levels: ES and OAS

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Transaction Processing System

• TPS

• Keeps track of transactions that support business

• Input– bills, orders, inventory levels

• Output– invoices, paychecks

Ch 11 © The McGraw-Hill Companies, Inc., 2000 30 CCI

TPS• Lower managers

– principally supervisor– helps in operational decisions

• Produces detail reports– specific detailed

information about routine activities

• One per department• Basis for MIS and DSS

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Management Information System

• To support tactical decisions through reports

• Filters business inputs and outputs

• Helps spot trends and overview of business activities

• Draws from all departments

• Uses data recorded by TPS

Ch 11 © The McGraw-Hill Companies, Inc., 2000 32 CCI

MIS Reports

• Summary reports– trends and totals

• Exception– out of the ordinary

• Periodic reports– regularly scheduled

• On-demand– response to unscheduled demand

Ch 11 © The McGraw-Hill Companies, Inc., 2000 33 CCI

Decision Support System

• To support strategic decisions• Inputs

– some summarized reports– processed transactional data– external, but related data

• Outputs– flexible to help make unscheduled reports

Ch 11 © The McGraw-Hill Companies, Inc., 2000 34 CCI

DSS

• Mainly top and middle managers

• To help make strategic decisions– effecting events and trends outside the

organization

• Products analytical models– uses simulation models to project trends and

determine possibilities to react to shifting conditions

Ch 11 © The McGraw-Hill Companies, Inc., 2000 35 CCI

DSS Components

• Hardware– typically networked to take advantage of access

to other systems

• Software– contain generators to manage DSS databases,

decision modules, and interaction between the user and the system

Ch 11 © The McGraw-Hill Companies, Inc., 2000 36 CCI

DSS Components (continued)

• Data resources– internal and external data, and personal

databases

• Model resources– mathematical and analytical models

• People resources– explore decision alternatives

Ch 11 © The McGraw-Hill Companies, Inc., 2000 37 CCI

DSS Applications

• Airline DSS– American Analytical Information

Management System (AAIMS) for seat capacity and traffic statistics

– Yields management system helps determine appropriate overbooking and seat costs

Ch 11 © The McGraw-Hill Companies, Inc., 2000 38 CCI

DSS Applications (continued)

• Real estate DSS– RealPlan helps in complex analysis of real

estate investments

• Geographic DSS– Geographic Information System (GIS)

integrates computer graphics and databases

Ch 11 © The McGraw-Hill Companies, Inc., 2000 39 CCI

Executive Information System

• EIS

• Easy-to-use for top managers

• Focus on analyzing data and creating what-if scenarios

Ch 11 © The McGraw-Hill Companies, Inc., 2000 40 CCI

Expert System

• ES

• Interactive computer programs

• Management and nonmanagement

• Includes knowledge base from experts to aid in decision making

Ch 11 © The McGraw-Hill Companies, Inc., 2000 41 CCI

ES

• MYCIN– helps diagnose infectious diseases

• PROSPECTORS– helps locate mineral deposits

• CARES– Computer Assisted Risk Evaluation System

Ch 11 © The McGraw-Hill Companies, Inc., 2000 42 CCI

Office Automation System

• Reduces manual labor in an efficient office environment

• Voice mail, e-mail, scheduling, desktop publishing, word processing, fax

• LAN based– may add an intranet or an extranet

Ch 11 © The McGraw-Hill Companies, Inc., 2000 43 CCI

OAS

O A S

E lec tron ic P u b lish in gS ys tem s

E lec tron ic C om m u n ica tion sS sytem s

E lec tron ic C o llab ora tionS ys tem s

Im ag e P rocess in gS ys tem s

O ffice M an ag m en tS ys tem s

O ffice A u tom ation S ys tem s

Ch 11 © The McGraw-Hill Companies, Inc., 2000 44 CCI

Electronic Publishing Systems

• Word processing

• Desktop publishing

• Copying systems

Ch 11 © The McGraw-Hill Companies, Inc., 2000 45 CCI

Electronic Communications System

• Electronic mail – e-mail

• Voice mail

• Facsimile– fax

• Desktop videoconferencing

Ch 11 © The McGraw-Hill Companies, Inc., 2000 46 CCI

Electronic Collaboration System

• Electronic meeting systems

• Collaborative work systems

• Teleconferencing

• Telecommuting

Ch 11 © The McGraw-Hill Companies, Inc., 2000 47 CCI

Image Processing System

• Electronic document management

• Other image processing

• Presentation graphics

• Multimedia systems

Ch 11 © The McGraw-Hill Companies, Inc., 2000 48 CCI

Office Management System

• Electronic office accessories

• Electronic scheduling

• Task management

Ch 11 © The McGraw-Hill Companies, Inc., 2000 49 CCI

The Future

• Most organizations trying to improve management

• Frances Hesselbein suggests a circular management as a more free-flowing model