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I. Ch 11 Information Systems
Lecture Outline
A. Competencies pg 300
1. Explain how organizations can be structure according to five functions and three management levels.
2. Describe how information flows in an organization.
3. Distinguish among a transaction processing system, a
management information system, a decision support system, and an executive support system.
4. Distinguish between office automation systems and knowledge work systems.
5. Explain the difference between data workers and knowledge workers.
B. Introduction pg 301
Good information is essential to help run organizations.
▪
A typical use of computers in organizations is to help record events,
▪
but less obvious is the help they provide in making business decisions.
Competent end users need to understand how the information flows in
▪
an organization as it moves through the organization's different
functional areas and management levels. They need to be aware of the
different types of computer-based information systems, including transaction processing systems, management information systems, decision support systems and executive support systems.
They also need to understand the role and importance of databases to
▪
support each level or type of information system.
Be sure to look over the images comparing Information Flows and
▪
Information Systems. Information flows both vertically and
horizontally through the organization. Information systems include such ones as ESS, DSS, MIS, and TPS systems.
C. Organizational Information Flow pg 302
In large or medium firms, computerized systems are used to track
▪
transactions and day to day business operations, as well as supporting
the information flow throughout the organization.
The text uses a hypothetical organization called "HealthWise" to ▪
demonstrate the key components of information system use in a
business.
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a) Functions
Depending on the services or products they provide, most
▪
organizations have the following functions:
(1) Accounting
Records all financial activity from billing
▪
customers to paying employees
(2) Marketing
Plans, prices, promotes, sells, and distributes the
▪
goods and services
(3) Human Resources
Hiring, training, promoting the employees
▪
(4) Production
Creates finished goods and services
▪
(5) Research
Identifies, investigates, and develops new
▪
products and services
b) Management Levels
Most people in an organization are NOT managers
▪
The managers do the PLOC - planning, leading, organizing, ▪
and controlling.
Typical management levels include:
▪
(1) Supervisors
Manage and monitor non management
▪
employees
Responsible for operational matters
▪
Monitor day to day matters
▪
(2) Middle management
Deal with control, (tactical) planning and
▪
decision making
They implement the long term goals of the
▪
organization
(3) Top management
Focus on long range planning (aka strategic
▪
planning).
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Need to plan for future growth and direction of
▪
organization
c) Information Flow
Top management needs summarized information
▪
They also need information from outside the firm.
▪
Mid level managers need summarized data for shorter time
▪
periods: weeks or months
They also need budget projections as well as ways to
▪
evaluate the performance of supervisors.
Information needs to flow horizontally: from function to
▪
function
Information also needs to flow vertically - from the non- ▪
management employees all the way to the top managers.
D. Computer-based Information Systems pg 306
Almost all organizations have computer-based information systems.
▪
They may have different names for these systems, but they fall into the
▪
following categories:
a) ESS (aka EIS)
Executive Information Systems (aka Executive Information
▪
Systems)
Interface is easy to use
▪
Information is highly summarized
▪
Helps to oversee entire company's operations and to ▪
develop strategic plans
Combine internal data from TPS and MIS with external
▪
data
b) DSS
Decision Support System
▪
A flexible tool for analysts
▪
Helps middle level managers and others to analyze a wide
▪
range of problems, such as the effectiveness of events and
trends outside the organization
DSS pulls information from TPS system
▪
c) MIS
Management Information System
▪
Summarizes the TPS data
▪
Provides standardized reports to middle management
▪
Such reports may include weekly sales and production
▪
schedules
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