Chapter 11: Information Systems

Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill

Chapter 11: Information Chapter 11: Information SystemsSystems

Chapter 11: Information Chapter 11: Information SystemsSystems

Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved.

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11-2McGraw-Hill

Competencies Competencies (Page 1 of 2)(Page 1 of 2)

• Explain the functional view of an Explain the functional view of an organization and describe each organization and describe each functionfunction

• Describe the management levels and Describe the management levels and the informational needs for each level the informational needs for each level in an organizationin an organization

• Discuss how informationDiscuss how informationflows within an organizationflows within an organization

• Discuss computer-basedDiscuss computer-basedinformation systemsinformation systems


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Competencies Competencies (Page 2 of 2)(Page 2 of 2)

• Distinguish among a Distinguish among a transaction transaction processing processing systemsystem, a , a management information management information systemsystem, a , a decision support systemdecision support system, and an , and an executive support systemexecutive support system

• Distinguish between Distinguish between office office automation systems automation systems and and knowledge knowledge work systemswork systems

• Explain the difference between Explain the difference between data data workers workers and and knowledge workersknowledge workers


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IntroductionIntroduction

• An information system is a collection of An information system is a collection of people, procedures, software, hardware, people, procedures, software, hardware, and data and data – They all work together to provideThey all work together to provide

information essential to runninginformation essential to runningan organizationan organization

– Computers are used in organizationsComputers are used in organizationsto keep records of events to keep records of events

• Competent end uses need to Competent end uses need to understand how the information understand how the information flows as it moves through an flows as it moves through an organizationorganization


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Organizational Organizational Information FlowInformation Flow

• Information flows vertically and Information flows vertically and horizontally throughout an horizontally throughout an organizationorganization

• Information systems Information systems support the support the natural flow of information within an natural flow of information within an organization’s structureorganization’s structure

• 5 Functional Areas• Management LevelsManagement Levels• Information FlowInformation Flow


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Five Functions of an Five Functions of an OrganizationOrganization

• AccountingAccounting• MarketingMarketing• Human ResourcesHuman Resources• ProductionProduction• ResearchResearch

Return


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Management LevelsManagement Levels

• Management is usually divided into Management is usually divided into three levels: Top, Middle, and three levels: Top, Middle, and SupervisorsSupervisors

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Information Flow (1 of 2)Information Flow (1 of 2)

• Each level of management has Each level of management has different information needs different information needs

• The information flows to support The information flows to support these needsthese needs– Top managementTop management

• Vertical, horizontal, Vertical, horizontal, and external and external

– Middle managementMiddle management• Vertical and horizontal Vertical and horizontal

– SupervisorSupervisor• Primarily verticalPrimarily vertical

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11-9McGraw-Hill

Information Flow Information Flow (Page 2 (Page 2 of 2)of 2)

Return


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Computer-Based Information Computer-Based Information Systems Systems


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Transaction Processing Transaction Processing Systems (TPS)Systems (TPS)

• Records day-to-day transactions in a Records day-to-day transactions in a databasedatabase

• Also called Also called data processing systems data processing systems (DPS)(DPS)

• One of the most essential uses ofOne of the most essential uses ofa TPS is in the accounting areaa TPS is in the accounting area


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TPS for AccountingTPS for Accounting

• Sales order processingSales order processing• Accounts receivableAccounts receivable• Inventory and purchasingInventory and purchasing


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Management Information Management Information Systems (MIS)Systems (MIS)

• Produces standardized reports to Produces standardized reports to support decision-making by middle support decision-making by middle managersmanagers

• Integrates data and summarizes Integrates data and summarizes details from databases in a details from databases in a structured formstructured form

• Produces predetermined reportsProduces predetermined reports– Periodic reportsPeriodic reports– Exception reportsException reports– Demand reportsDemand reports


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Decision Support Decision Support Systems (DSS)Systems (DSS)

• Flexible tool for analyzing data for decision-Flexible tool for analyzing data for decision-making purposesmaking purposes

• Enables managers to get answers to Enables managers to get answers to unexpected and generally non-recurring unexpected and generally non-recurring problemsproblems– Produces reports that do not have a fixed formatProduces reports that do not have a fixed format

• Microsoft Access is oftenMicrosoft Access is oftenused to provide an easyused to provide an easyfront-end interface forfront-end interface forperforming SQL decisionperforming SQL decisionsupport queriessupport queries


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Parts of a DSSParts of a DSS

• UserUser– A decision-maker, like yourself A decision-maker, like yourself

• System softwareSystem software– Operating systemOperating system– Easy to learn and useEasy to learn and use

• DataData– Internal dataInternal data– External dataExternal data

• Decision modelsDecision models


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DSS Decision ModelsDSS Decision Models

• Strategic modelsStrategic models– assists top level management in long-assists top level management in long-

range planningrange planning

• Tactical modelsTactical models– assists middle-management control the assists middle-management control the

workwork– E.g., financial and sales promotion E.g., financial and sales promotion

planningplanning

• Operational modelsOperational models– assists lower-level managers accomplish assists lower-level managers accomplish

the daily activities and objectivesthe daily activities and objectives


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11-17McGraw-Hill

Executive Support Executive Support Systems (ESS)Systems (ESS)

• Designed for top managementDesigned for top management• Sophisticated software for Sophisticated software for

presenting, summarizing, and presenting, summarizing, and analyzing data, but specifically analyzing data, but specifically designed to be easy-to-usedesigned to be easy-to-use

• Provides immediateProvides immediateaccess to a company'saccess to a company'skey performancekey performanceindicatorsindicators


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Other Information Other Information SystemsSystems

• Information workersInformation workers– Data workersData workers– Knowledge workersKnowledge workers

• Office automation systemsOffice automation systems(OASs)(OASs)– Supports data workersSupports data workers– Project management programsProject management programs– Videoconferencing systemsVideoconferencing systems

• Knowledge work systemsKnowledge work systems(KWSs)(KWSs)– Use specialized systems, such as CAD/CAMUse specialized systems, such as CAD/CAM


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Careers In ITCareers In IT

• Information systems managers Information systems managers oversee oversee the work of programmers, computer the work of programmers, computer specialist, systems analysts, and other specialist, systems analysts, and other computer professionals computer professionals

• Employers look for individuals with Employers look for individuals with strong technical backgrounds, with a strong technical backgrounds, with a Master’s degreeMaster’s degree– Strong leadership andStrong leadership and

communications skillscommunications skills

• Information systems managers Information systems managers can expect to earn from can expect to earn from $79,000 to $129,500 annually$79,000 to $129,500 annually


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A Look to the FutureA Look to the Future

• Information Information overloadoverload– May have a negative May have a negative

effecteffect– E-mail is one of the E-mail is one of the

major sources of major sources of overloadoverload

• How to handle e-How to handle e-mailmail– Be selectiveBe selective– RemoveRemove– ProtectProtect– Be brief Be brief – Stop spamStop spam– Don't respond Don't respond

Oftentimes, More Information Is Too Much Oftentimes, More Information Is Too Much InformationInformation


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Open-Ended Questions (1 Open-Ended Questions (1 of 2)of 2)

• Name and discuss the five common Name and discuss the five common functions of most organizations.functions of most organizations.

• Discuss the roles of the three kinds of Discuss the roles of the three kinds of management in a corporation.management in a corporation.

• What are the four most common What are the four most common computer-based information computer-based information systems?systems?


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Open-Ended Questions (2 Open-Ended Questions (2 of 2)of 2)

• Describe the different reports and Describe the different reports and their roles in managerial decision their roles in managerial decision making.making.

• What is the difference between an What is the difference between an office automation system and a office automation system and a knowledge work system?knowledge work system?

Chapter 11: Information Systems

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