©1999 Addison Wesley Longman Slide 5.1 Communication, Decision Making, and Different Types of...

©1999 Addison Wesley Longman Slide 5.1

Communication,Decision Making,and Different Typesof Information Systems

5


Table 5.1Customizing Jeans at Levi Strauss



CUSTOMER

Person purchasing jeans



PRODUCT

Customized pair of jeans

Measurements representing the best fit

Manufacturing specification for the customized pair of jeans



BUSINESS PROCESS

Major Steps:

•Take measurements

•Try on special samples to get perfect fit

•Transmit to factory in Tennessee

•Manufacture jeans

•Mail jeans to customer

•Store specification for reorders

Rationale:

•Sell customized jeans that really fit the customer.



PARTICIPANTS

Customer

Salesperson

INFORMATION

Customer’s measurements

Manufacturing specifications

Delivery address

TECHNOLOGY

Sample pairs for fitting the customer

Technology for producing the jeans

Computers and data communication network


Table 5.2Ways Information Systems Can Improve Communication and

Decision Making Performane within Business Processes

RATE OF OUTPUTImprove communication: Communicate more information or more types to more peopleImprove decision making: Make more decisions using better, more complete information

CONSISTENCYImprove communication: Make sure different people receive the same communication Improve decision making: Make sure repetive decisions are made in the same way

PRODUCTIVITYImprove communication: Achieve more communication with less effortImprove decision making: Make better decisions with less effort

CYCLE TIMEImprove communication: Eliminate undesirable delays in communicationImprove decision making: Eliminate unnecessary delays in decision making

FLEXIBILITYImprove communication: Permit communication in many different formsImprove decision making: Maintain decision quality across a wider range of situations

SECURITYImprove communication: Make sure communications go only to the intended recipientsImprove decision making: Make sure decisions are controlled only by those authorized to make the decisions


Table 5.3Communication Technologies Classified by Time and Place of Communication

SAME PLACE

Same time:

•Presentation systems

•Group decision support systems (GDSS)

Different time

•Transaction databases

•World Wide Web

•Electronic mail

•Voice mail

DIFFERENT PLACE

Same time:

•Typical telephones

•Computer conferencing

•Video telephones and conferencing

•Nonrecorded radio or TV broadcast

Different time

•Transaction databases

•World Wide Web

•Electronic data interchange (EDI)

•Electronic mail

•Voice mail

•Fax

•Prerecorded radio or TV broadcast


Figure 5.1Steps in decision making


Table 5.4 How Information Systems Might Help Counteract Common Flaws in Decision Making

POOR FRAMINGDescription: Allowing a decision to be influenced excessively by the language used for describing the decision

How an information system might help: Provide information encouraging different ways to think about the definition of the issue

RECENCY EFFECTSDescription: Giving undue weight to the most recent informationHow an information system might help: Provide information showing how the most recent information might not be representative

PRIMACY EFFECTSDescription: Giving undue weight to the first information received How an information system might help: Show how some information is inconsistent with the first information received

POOR PROBABILITY ESTIMATIONDescription: Overestimating the probability of familiar or dramatic events; underestimating the probability of negative eventsHow an information system might help: Make it easier to estimate probabilities based on pertinent data


Table 5.4 How Information Systems Might Help Counteract Common Flaws in Decision Making

OVERCONFIDENCEDescription: Believing too strongly in one’s own knowledge

How an information system might help: Provide counterexamples or models showing that other conclusions might also make sense

ESCALATION PHENOMENADescription: Unwillingness to abandon courses of action decided upon previouslyHow an information system might help: Provide information or models showing how the current approach might give poor results

ASSOCIATION BIASDescription: Reusing strategies that were successful in the past, regardless of whether they fit the current situation How an information system might help: Provide information showing how the current situation differs from past situatioins

GROUPTHINKDescription: Bowing to group consensus and cohesiveness instead of bringing out unpopular biasHow an information system might help: Provide information inconsistent with the current consensus and prove its relevance


Figure 5.3Structuring loan authorization


Table 5.5Typical Ways Each Type of Information System Supports

Communication and Desicion Making

OFFICE AUTOMATION SYSTEM: provides individuals effective ways to process personal and organizational business data, to perform calculations, and to create documents

COMMUNICATION SYSTEM:helps people work together by sharing information in many different forms

TRANSACTION PROCESSING SYSTEM (TPS):collects and stores information about transactions; controls some aspects of transactions

MANAGEMENT INFORMATION SYSTEM (MIS) AND EXECUTIVE INFORMATION SYSTEM (EIS):converts TPS data into information for monitoring performance and managing an organization; provides executives information in a readily accessible interactive format

DECISION SUPPORT SYSTEM (DDS):helps people make decisions by providing information, models, or analysis tools

EXECUTION SYSTEM:directly supports the organization’s value added work (e.g.. helps sales people sell, helps doctors practice medicine, or helps architects design buildings)


Table 5.6Examples of Each Type of Information System in Three Functional Areas of Business

Sales, Manufacturing, and Finance

•OFFICE AUTOMATION SYSTEMS

•COMMUNICATION SYSTEMS

•TRANSACTION PROCESSING SYSTEM (TPS)

•MANAGEMENT INFORMATION SYSTEM (MIS) AND EXECUTIVE INFORMATION SYSTEM (EIS)

•DECISION SUPPORT SYSTEM (DDS)

•EXECUTION SYSTEM


Figure 5.4Options for teleconferencing


Figure 5.5Data entry screen from a transaction processing system


Figure 5.6A management report from an MIS


Figure 5.7Use an executive information system

(a)



(b)



(c)


Figur 5.8Graphical output from a decision support system


Figure 5.9A GDSS


Table 5.7Transferable Features of Particular Types of Information Systems

OFFICE AUTOMATION SYSTEMSTransferable features:•Multiple forms of information, sometimes used in combination•Immediacy and interactivity of communication•Avoidance of unproductive work

COMMUNICATION SYSTEMSTransferable features:•Emphasis on communication in addition to data processing•Consideration of social presence and other communication characteristics when building systems•Recognition of the need to handle different combinations of same or different time or place•Sharing information betwween different people working on different parts of a task•Controlling work flows and approval loops within a group•Incorporating efficient methods of scheduling meetings

TRANSACTION PROCESSING SYSTEMSTransferable features:•Control•Procedures and rules•Repetitions


Table 5.7Transferable Features of Particular Types of Information Systems

MANAGEMENT AND EXECUTICE INFORMATION SYSTEMSTransferable features:•Emphasis on measures of performance•Use of standard formats and measures by people in different departments•User friendly interface•User friendly methods for analyzing data

DECISION SUPPORT SYSTEMSTransferable features:•User-controlled interaction with computers•Use of models and data•Information systems applied to semistructured tasks

EXECUTION SYSTEMTransferable features:•Integrating computerized systems into doing the organization’s value added work•Bringing knowledge in active form to people doing the work

©1999 Addison Wesley Longman Slide 5.1 Communication, Decision Making, and Different Types of...

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