INFORMATION SYSTEM CONCEPTS. 2 Understand types of information systems Introduce IS in Education.

INFORMATION SYSTEM

CONCEPTS

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Understand types of information systems

Introduce IS in Education

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By organisational level By function within organisational level

Examples in functional areas

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DATA WORKERSDATA WORKERS

KIND OF SYSTEM GROUPS SERVEDKIND OF SYSTEM GROUPS SERVED

STRATEGIC LEVEL STRATEGIC LEVEL SENIOR MANAGERSSENIOR MANAGERS

MANAGEMENT LEVEL MANAGEMENT LEVEL MIDDLE MANAGERS MIDDLE MANAGERS

OPERATIONALOPERATIONAL OPERATIONAL OPERATIONAL LEVELLEVEL MANAGERS MANAGERS

KNOWLEDGE LEVEL KNOWLEDGE LEVEL KNOWLEDGE &KNOWLEDGE &

SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN

RESOURCESRESOURCESMARKETINGMARKETING

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DATA WORKERSDATA WORKERS

KIND OF SYSTEM GROUPS SERVEDKIND OF SYSTEM GROUPS SERVED

STRATEGIC LEVEL SENIOR MANAGERSSTRATEGIC LEVEL SENIOR MANAGERS

Executive Support System Board of Trustee, Executive Support System Board of Trustee, Advisory Board, VPSAdvisory Board, VPS

MANAGEMENT LEVEL MANAGEMENT LEVEL MIDDLE MANAGERS MIDDLE MANAGERSDecision Support SystemDecision Support System Deans, Heads Deans, HeadsManagement Information SystemManagement Information System

OPERATIONAL OPERATIONAL

OPERATIONAL LEVEL OPERATIONAL LEVEL MANAGERSMANAGERS

TransactionTransactionProcessing System Processing System

KNOWLEDGE LEVEL KNOWLEDGE &KNOWLEDGE LEVEL KNOWLEDGE &Knowledge Working SystemKnowledge Working SystemOffice Automation System Office Automation System

SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN

RESOURCESRESOURCESMARKETINGMARKETING

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Elementary activities and routine transactions

current and accurate data, e.g.TPS

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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 Resources

Systems that perform and record daily routine transactions necessary for business

Goal: to automate repetitive information processing activitiesIncrease speedIncrease accuracyGreater efficiency

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Computerized system that performs and records Computerized system that performs and records the daily routine transactions necessary to the daily routine transactions necessary to conduct the business; these systems serve the conduct the business; these systems serve the operational level of the organizationoperational level of the organization

• TYPETYPE : Operational-level : Operational-level• INPUTSINPUTS : transactions, events : transactions, events• PROCESSINGPROCESSING : updating : updating• OUTPUTSOUTPUTS : detailed reports : detailed reports• USERSUSERS : operations personnel, : operations personnel,

supervisorssupervisors• DECISION-MAKING: highly structuredDECISION-MAKING: highly structured

EXAMPLE:EXAMPLE: payroll, accounts payable payroll, accounts payable

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P ayr o l l S ys t e mM a n a g e m e n t

R e po rt s

O n - lin equ e rie s

P ayr o l lm as t e r

fi l e

Em plo y e e da ta (v a rio u s de pa rtm e n ts ) To g e n e ra l le dg e r: wa g e s a n d s a la rie s

G o v e rn m e n t do cu m e n ts

Em plo y e e ch e ck s

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TYPE OF TPS SYSTEMSales/ Manufacturing! Finance/ Human Other typesmarketing production accounting resources (e.g., university)systems systems systems systems

Major functions Sales management Scheduling Budgeting Personnel recard Admissionsof system Market research Purchasing General ledger Benefits Grade records

Promotion Shipping/receiving Billing Cornpensation Course recordsPricing Engineering Cost accounting Labor relations AlumniNew products Operations Training

Major Sales order Materials resource General ledger Payroll Registration systemapplication information system planning systemssystems Market research Purchase order Accounts Employee records Student transcript

system control systems receivable/payable systemPricing system Engineering Budgeting Benefit systems Curriculum class

systems control systemsQuality control Funds managementCareer path Alumni benefactorsystems systems systems system

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Systems that aid the creation and integration of new knowledge into an organisation, e.g KWS, OAS

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KNOWLEDEGE –LEVEL SYSTEMS

Engineering workstations Graphics workstations Managerial workstations

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

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Information system that aids knowledge workers in the creation and integration of new knowledge in the organization.

•TYPE: Knowledge-levelTYPE: Knowledge-level• INPUTS: design specifications INPUTS: design specifications • PROCESSING: modellingPROCESSING: modelling• OUTPUTS: designs, graphicsOUTPUTS: designs, graphics• USERS: technical staff; professionalsUSERS: technical staff; professionals

EXAMPLE:EXAMPLE: Engineering workstations Engineering workstations

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KNOWLEDGE –LEVEL SYSTEMS

Word processing Document imaging E-mail / electronic calendars

Examples:Communicating and schedulingDocument preparationAnalyzing dataConsolidating information

Systems that are designed to increase the productivity of data workers

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Computer system, such as word processing, electronic mail system, and scheduling system, that is designed to increase the productivity of data workers in the office.

• TYPE: Knowledge-levelTYPE: Knowledge-level• INPUTS: documents, schedulesINPUTS: documents, schedules• PROCESSING: document management, PROCESSING: document management, scheduling, scheduling, communicationcommunication• OUTPUTS: documents; schedulesOUTPUTS: documents; schedules• USERS: clerical workersUSERS: clerical workers

EXAMPLE:EXAMPLE: document imaging system document imaging system

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Management-levelPeriodic monitoring, control, decision-making and administrationIs the business working well? e.g. MIS, DSS

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Management-level Systems

Sales management

Inventory control Annual budgeting Capital investment

Relocation analysis

Sales and Marketing


Systems that serve planning, control and decision-making and reports

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Information system at the management level of an organization that serves the functions of planning, controlling, and decision making by providing routine summary and exception reports.

• TYPE: Management-levelTYPE: Management-level• INPUTS: high volume dataINPUTS: high volume data• PROCESSING: simple models PROCESSING: simple models • OUTPUTS: summary reportsOUTPUTS: summary reports• USERS: middle managersUSERS: middle managers• DECISION-MAKING: structured to semi-DECISION-MAKING: structured to semi-structuredstructuredEXAMPLEEXAMPLE: annual budgeting: annual budgeting

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1. MIS support structured decisions at the operational and management control levels. However, they are also useful for planning purposes of senior management staff.

2. MIS are generally reporting and control oriented. They are designed to report on existing operations and therefore to help provide day-to-day control of operations.

3. MIS rely an existing corporate data-and data flows.

4. MIS have little analytical capability.

5. MIS generally aid in decision making using past and present data.

6. MIS are relatively inflexible.

7. MIS have an internal rather than an external orientation.

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▪ Sales forecasting▪ Financial management and forecasting

▪ Manufacturing planning and scheduling

▪ Inventory management and planning

▪ Advertising and product pricing

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MANAGEMENT –LEVEL SYSTEMS

Sales region analysis

Production scheduling

Cost analysis Pricing / profitability analysis

Contract cost analysis

Sales and Marketing


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

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Information system at the management level of an organization that combines data and sophisticated analytical models or data analysis tools to support semi-structured and unstructured decision making.

•TYPE: Management-levelTYPE: Management-level• INPUTS: low volume dataINPUTS: low volume data• PROCESSING: simulations, analysis PROCESSING: simulations, analysis • OUTPUTS: decision analysisOUTPUTS: decision analysis• USERS: professionals, staff managersUSERS: professionals, staff managers• DECISION-MAKING: semi-structuredDECISION-MAKING: semi-structured

EXAMPLE:EXAMPLE: sales region analysis sales region analysis

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1. DSS offer users flexibility, adaptability, and a quick response.

2. DSS operate with little or no assistance from professional programmers.

3. DSS provide support for decisions and problems whose solutions cannot be specified in advance.

4. DSS use sophisticated data analysis and modelling tools.

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Strategic-level Long-term (e.g. 5 year) planning and

strategy Internal and external information e.g. ESS

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STRATEGIC-LEVEL SYSTEMS5-year sales trend forecasting

5-year operating plan

5-year budget forecasting

Profit planning

Personnel planning

Sales and Marketing


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

Executive-level decision makingLong-range and strategic planningMonitoring internal and external eventsCrisis managementStaffing and labor relations

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Information system at the strategic level of an organization that address unstructured decision making through advanced graphics and communications.

TYPE: Strategic levelTYPE: Strategic level• INPUTS: aggregate data; internal and externalINPUTS: aggregate data; internal and external• PROCESSING: interactivePROCESSING: interactive• OUTPUTS: projectionsOUTPUTS: projections• USERS: senior managersUSERS: senior managers• DECISION-MAKING: highly unstructured DECISION-MAKING: highly unstructured

EXAMPLEEXAMPLE: 5 year operating plan: 5 year operating plan

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In t e r n a l D at a

TP S /M IS D at aF i n an c i a l D at aO ffi c e S ys t e m sM o d e l i n g /an a l ys i s

E xt e r n a l D at a

D o w J o n e sG al l u p P o l lS t an d ar d &P o o r 's

E S Sw o r k s t a t i o n



M e n u sG ra ph icsC o m m u n ica t io n sL o ca l pro ce s s in g



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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

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S tra te g ic L e v e l S y s te m s5 -y e a r

s a le s t re n dfo re c a s t in g

5 -y e a ro p e ra t in g

p la n

5 -y e a rb u d g e t

fo re c a s t in g

P ro fitp la n n in g

M a n p o w e rp la n n in g

M a n a g e m e n t -L e v e l S y s te m sS a le sm a n a g e m e n t

S a le s re g io na n a ly s is

I n v e n to ryC o n tro l

P ro d u c t io nS c h e d u lin g

A n n u a lb u d g e t in g

C o s ta n a ly s is

C a p ita lI n v e s tm e n t a n a ly s is

P ric in g /p ro fita b ilitya n a ly s is

R e lo c a t io na n a ly s is

C o n tra c t c o s ta n a ly s is

K n o w le d g e -L e v e l S y s te m sE n g in e e rin gw o rk s ta t io n s

W o rdp ro c e s s in g

G ra p h ic sw o rk s ta t io n s

D o c u m e n tI m a g in g

M a n a g e ria lw o rk s ta t io n s

E le c tro n icC a le n d a rs

O p e ra t io n a l L e v e l S y s te m s

O rd e r T ra c k in g

O rd e r p ro c e s s in g

M a c h in e c o n tro l

P la n t s c h e d u lin g

M a te ria l m o v e m e n tc o n tro l

S e c u rit ie stra d in g

C a s hm a n a g e m e n t

P a y ro ll

A c c o u n ts p a y a b le

A c c o u n ts re c e iv a b le

C o m p e n s a t io n

T ra in in g & d e v e lo p m e n t

E m p lo y e e re c o rd k e e p in g

T Y P E S O F S Y S T E M S

E S S

M I S

D S S

K W S

O A S

T P S

S a le s a n dm a rk e t in g

M a n u fa c tu rin g F in a n c e A c c o u n t in g H u m a nR e s o u rc e s

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The accounting information systemThe finance information systemThe manufacturing (operations,

production) information systemThe marketing information systemThe human resources information

system

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Examples of IS by function: Sales and marketing Manufacturing and production Finance and accounting Human resources

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System Description Organisational Level

Order processing Enter, process and track orders

Operational

Market analysis Identify customers and markets

Knowledge

Pricing analysis Determine prices Management

Sales trends Prepare 5 year forecasts

Strategic

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Systems that help the firm identify customers for the firm’s products or services, develop products and services to meet customer’s needs, promote products and services, sell the products and services, and provide ongoing customer support.

EXAMPLESSystem Description Organizational LevelOrder processing Enter, process, and track orders OperationalMarket analysis Identify customers and markets using Knowledge

data on demographics, markets,consumer behavior, and trends

Pricing analysis Determine prices for products Managementand services

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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

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Systems that deal with the planning, development, and production of products and services and with

controlling the flow of production.

ExamplesSystem Description Organizational LevelMachine control Control the actions of machines Operational

and equipmentComputer-aided design (CAD) Design new products using Knowledge

the computerProduction planning Decide when and how many Management

products should be produced

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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

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Systems that keep track of the firm’s financial assets and fund flows.

ExamplesSystem Description Organizational Level

Accounts receivable Track money owed the firm OperationalPortfolio analysis Design the firm's portfolio of investments KnowledgeBudgeting Prepare short-term budgets ManagementProfit planning Plan long-term profits Strategic

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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

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Systems that maintain employee records; Track employee skills, job performance, and training; And support planning for employee compensation and career development.

ExamplesSystem Description Organizational Level

Training and development Track employae training, skills, Operationaland performance appraisals

Career pathing Design career paths for employees KnowledgeCompensation analysis Monitor the range and distribution Management

ofemployee wages, salaries, and bene6csHuman resources planning Plan the long-term labor force needs Strategic

of the organization

INFORMATION SYSTEM CONCEPTS. 2 Understand types of information systems Introduce IS in Education.

Documents

operationallevel inputs

operationallevel type

knowledgelevel inputs

knowledgelevel type

organisational level

organisation slide

knowledge workers

oas slide