Organizational Information Systems: Learning Outcome 2

Organizational
Information Systems
Paul D Mpuwa
Learning Outcome 2
Objectives
• Understand characteristics of operational,
managerial, and executive information
systems
• Understand characteristics of transaction
processing systems, management
information systems, and executive
information systems
• Understand characteristics of information
systems that span organizational boundaries
Types of Information Systems
• An organization consists of many people with

different interests, specialties, and levels.
• How a single information system can provide all
the information that an organization needs?
• There is no such single information system.
• An organization should have different info
systems for different interests, specialties, and
levels.
Decision-Making Levels of an Organization
Decision-Making Levels of an Organization
• Executive level (top)

– Long-term decisions
– Unstructured decisions
• Managerial level (middle)
– Decisions covering weeks and months
– Semistructured decisions
• Operational level (bottom)
– Day-to-day decisions
– Structured decisions
Basic systems model for all Info. Systems
General Types of Information Systems
• Transaction Processing Systems

(TPSs)
– Transactions
– Used at Operational level of the organization
– Goal: to automate repetitive information
processing activities
• Increase speed
• Increase accuracy
• Greater efficiency

(TPSs)
– Online processing
– Batch processing
• Data input
– Manual data entry
– Semiautomated data entry
– Fully automated data entry

(TPSs)
– Examples:
• Payroll
• Sales and ordering
• Inventory
• Purchasing, receiving, shipping
• Accounts payable and receivable
• Management Information Systems

(MISs)
– Two Types:
• Management of IS in organizations
• Specific information systems for mid-level managers
– Used at managerial level of the organization
Management Information System
• It helps the middle managers with reports, with on-line
access to the organization’s current performance and
historical records.
• It primarily serves the functions of planning, controlling,
decision-making at the management level.
• Generally it depends on TPS for data.
• It summarizes and reports on the basic operations of
the organization.
• It usually serve managers interested in weekly, monthly,
and yearly results, not day-to-day activities.
• It generally addresses structured questions that are
known in advance.
• It is not flexible and have little analytical capability.
Management Information System
• What are the functions of management-level info system?
=> Helps middle managers for monitoring, controlling,
decision-making, and administrative activities.
=> Generally it provides periodic reports rather than
instant information
=> However, some systems supports nonroutine decision
making.
• It should answer the questions:
=> Relocation Control System: It reports on the total
moving, house-hunting, and home financing costs for all
employees in the organization. It will also notify if actual
costs exceed the budgets.
=> What would happen to our return on investment if an
organization schedule were delayed for six months?

– Types of reports:
• Scheduled report
• Key-indicator report
• Exception report
• Drill-down report
• Ad hoc report

(MISs)
– Examples:
• Sales forecasting
• Financial management and forecasting
• Manufacturing planning and scheduling
• Inventory management and planning
• Advertising and product pricing
Executive Information Systems
• It helps senior managers.
• It addresses unstructured decisions.
• It provides a generalized computing &
telecommunications capability to solve problems.
• It employs the most advanced graphics software.
• It can deliver graphs & (historical data and
competitive data) from internal corporate systems
and external databases.
• Senior managers often have little experience with
computer-based information systems, ESS
should have easy-to-use graphic interfaces.
• Executive Information Systems (EISs)

– Used at executive level of the organization
– Highly aggregated form
– Data types
• Soft data – news and nonanalytical data
• Hard data – facts and numbers
• Executive Information Systems (EISs)

– Examples:
• Executive-level decision making
• Long-range and strategic planning
• Monitoring internal and external events
• Crisis management
• Staffing and labor relations
Information Systems that Span Organizational
Boundaries
Information Systems that
Span Organizational Boundaries
• Decision Support Systems (DSSs)
– Designed to support organizational decision
making
– “What-if” analysis
• Example of a DSS tool: Microsoft Excel
• Text and graphs
– Models for each of the functional areas
• Accounting, finance, personnel, etc.
• Expert Systems (ESs)
– Mimics human expertise by manipulating
knowledge
– Rules (If-then)
– Inferencing
• Office Automation Systems (OASs)
– Examples:
• Communicating and scheduling
• Document preparation
• Analyzing data
• Consolidating information
Relationship of Systems to one another:
Integration
ESS
MIS
DSS
OAS TPS
• Collaboration Technologies
– Virtual teams
– Videoconferencing
– Groupware
– Electronic Meeting Systems (EMSs)
• Functional Area Information Systems
– Geared toward specific areas in the company:
• Human Resources
• Benefits
• Marketing
• Global Information Systems
– International IS
– Transnational IS
– Multinational IS
– Global IS

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Organizational

• An organization consists of many people with

• Executive level (top)

• Transaction Processing Systems

• Transaction Processing Systems

• Transaction Processing Systems

• Management Information Systems

• Management Information Systems

• Management Information Systems

• Executive Information Systems (EISs)

• Executive Information Systems (EISs)

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