The document discusses the different types of information systems used in organizations. It describes operational, management, and strategic-level systems. The four major types of systems are transaction processing systems, management information systems, decision support systems, and executive support systems. It also outlines common business functions like sales, marketing, manufacturing and production, finance, accounting, and human resources, providing examples of information systems used for each function.
The document discusses the different types of information systems used in organizations. It describes operational, management, and strategic-level systems. The four major types of systems are transaction processing systems, management information systems, decision support systems, and executive support systems. It also outlines common business functions like sales, marketing, manufacturing and production, finance, accounting, and human resources, providing examples of information systems used for each function.
The document discusses the different types of information systems used in organizations. It describes operational, management, and strategic-level systems. The four major types of systems are transaction processing systems, management information systems, decision support systems, and executive support systems. It also outlines common business functions like sales, marketing, manufacturing and production, finance, accounting, and human resources, providing examples of information systems used for each function.
The document discusses the different types of information systems used in organizations. It describes operational, management, and strategic-level systems. The four major types of systems are transaction processing systems, management information systems, decision support systems, and executive support systems. It also outlines common business functions like sales, marketing, manufacturing and production, finance, accounting, and human resources, providing examples of information systems used for each function.
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Information Systems
in Organisations Session 3
1 With thanks to Laudon & Laudon Objectives
2 Major Business Functions
• Sales and marketing
• Manufacturing • Finance • Accounting • Human resources
3 Key Elements of an Organization • People • Structure • Operating Procedures • Politics • Culture
4 Management Levels • Senior managers: make long-range strategic decisions about products and services • Middle managers: carry out the programs and plans of senior management • Operational managers: monitor the firm’s daily activities
6 Types of Information Systems Major Types of Systems in Organizations
7 Major Types of Systems in Organizations Main Categories of IS
1. Operational-level systems
2. Management-level systems
3. Strategic-level systems
8 Four Major Major Types ofTypes of Systems Systems in Organizations
1. Transaction Processing Systems (TPS)
2. Management Information Systems (MIS)
3. Decision-Support Systems (DSS)
4. Executive-Support Systems (ESS)
9 The FourMajor MajorTypes of Types of Information Systems in Organizations
Systems
10 Transaction Processing Systems Major Types of Systems in Organizations (TPS) • Basic business systems that serve the organization’s operational level
• Input: Transactions, events
• Processing: Sorting, listing, merging, updating
• Output: Detailed reports, lists, summaries
• Users: Operations personnel, supervisors
11 Payroll TPS Major Types of Systems in Organizations
12 Typical Applications Major Types of TPS of Systems in Organizations
13 Management Information Systems Major Types of Systems in Organizations (MIS) • Serve management level; provide reports and access to company data
14 How management information systems obtain their Major Types of Systems in Organizations data from the organization’s TPS
15 Sample report that might be Major Types of Systems in Organizations produced by the MIS
16 Decision-Support Major Types of SystemsSystems in Organizations (DSS)
• Serve management level with data analysis for making
decisions
• Input: Low-volume data or massive databases, analytic
models, and data analysis tools
• Processing: Interactive, simulations, analysis
• Output: Special reports, decision analyses, responses
to queries
• Users: Professionals, staff managers
17 Voyage-estimating decision-support Major Types of Systems in Organizations system
18 Executive Support Major Types Systems of Systems in Organizations (ESS)
• Provide communications and computing
environment that serves the organization’s strategic level
• Input: External and internal aggregate data
• Processing: Graphics, simulations, interactive
• Output: Projections, responses to queries
• Users: Senior Managers
19 Model of Major a typical Executive Support Types of Systems in Organizations System
20 Major Business Functions 1. Sales and Marketing Systems
2. Manufacturing and Production Systems
3. Finance and Accounting Systems
4. Human Resource Systems
21 Sales and Marketing Systems Systems from a Functional Perspective
• Help identify customers
• Develop products and services • Promote products and services • Sell products and services • Provide ongoing customer support
22 ExamplesSystems of Sales and Marketing Information from a Functional Perspective Systems
System Description Organizational
Level Order Enter, process, Operational processing and track orders
Pricing Determine prices Management
analysis for products and services Sales trend Prepare 5-year Strategic forecasting sales forecasts
23 Manufacturing andPerspective Systems from a Functional Production Systems • Planning, development, production of products and services • Planning, development, maintenance of production facilities • Acquisition, storage, availability of materials • Scheduling materials, facilities, labor • Controlling the flow of production
24 Examples of Manufacturing and Production Systems from a Functional Perspective Information Systems System Description Organizational Level Machine Control the actions Operational control of machines and equipment Production Decide when and Management planning how many products should be produced Facilities Decide where to Strategic location locate new facilities 25 Overview offrom Systems ana Functional Inventory PerspectiveSystem
26 FinanceSystems andfromAccounting Systems a Functional Perspective
• Manage firm’s financial assets: cash, stocks,
bonds, etc.
• Manage capitalization of firm and finding new
financial assets
• Maintain and manage financial records
27 Examples of Finance and Accounting Systems from a Functional Perspective Information Systems System Description Organizational Level
Accounts Track money owed Operational
receivable the firm
Budgeting Prepare short-term Management
budgets
Profit planning Plan long-term Strategic
profits
28 Systems from a Functional Perspective Human Resources Systems
• Identify potential employees
• Maintain employee records • Track employee skills, job performance, and training • Support planning for employee compensation and career development
29 Examples of Human Resources Systems from Information Systems a Functional Perspective
System Description Organizational
Level Training and Track employee Operational development training, skills, and performance Compensation Monitor wages, Management analysis salaries, benefits
Human Plan long-term Strategic
resources labor force needs planning
30 Employee Record-Keeping System Systems from a Functional Perspective
31 Business Processes Enterprise Applications
• Manner in which work is organized,
coordinated, and focused
• Concrete workflows of material, information,
and knowledge
• Unique ways to coordinate work, information,
and knowledge
32 Examples ofEnterprise Functional Applications Business Processes • Manufacturing and production: Assembling product, checking quality, producing bills of materials
• Sales and marketing: Identifying
customers, creating customer awareness, selling
33 Enterprise Applications Examples of Functional Business Processes • Finance and accounting: Paying creditors, creating financial statements, managing cash accounts • Human Resources: Hiring employees, evaluating performance, enrolling employees in benefits plans
