Chapter 10 - Information System

5 common functions of most organization :

1. Accounting – records all financial activity (billing customers, paying employees)
2. Marketing – plans, prices, promotes, sells, and distributes the organization’s goods and services
3. Human resources (focuses on people) - hiring, training, promoting and other human-centered activities
4. Production – creates finished goods and services using raw materials and personnel
5. Research – identifies, investigates, and develops new products and services

Management Levels and their roles

 Information Flow

Computer-Based Information System

- help track and keep information flowing in the amount and direction organization needs to stay on track

1.   Transaction processing system (TPS)

• records day-to-day transactions
• For example : TPS for Accounting
• Records information in a database to provide users access to the information via queries and/or reports

2.   Management information system (MIS)

• collect summary of detail from TPS and thus produces standard reports for management by using databases (DBMS)  to integrate the databases of the different departments and summarized it
• produces standardized reports in summarized or structured form to support decision-making by middle managers
• • Periodic – produced at regular intervals
  • Exception – call attention to unusual events
  • Demand – opposite of periodic, is produced only upon request

3.   Decision support system (DSS)

• decide and analysis the data, a stage of data source
• assists managers with solutions for a wide range of problems
• Helps decision makers analyze unanticipated situations
• DSS enable manager to get answers to unexpected and generally non-recurring problems
• a group decision support system (GDSS)  is used for large problems

DSS consists of four parts :

User – person who make decisions

System software – essentially the operating system

Data – stored in a DSS and consists of two kinds :

• Internal data – data from within the organization
• External data – data gathered from outside the organization (ex. marketing research firms)

DSS Decision Model

• Strategic models

- Assists top level management in long-range planning

• Tactical models

- Assists middle-management control the work

- Financial and sales promotion planning

• Operational models

- Assists lower-level managers accomplish the daily activities and objectives

4.   Executive support system (ESS) / Executive information system (EIS)

• Designed for top management
• sourced internally from TPS and MIS, and from external sources
• highly summarized information presentations
• assists with strategic planning and gives senior management a broad company view
• Sophisticated software for presenting, summarizing, and analyzing data, but specifically designed to be easy-to-use
• Provides immediate access to a company's key performance indicators

Other Information Systems :

a.   Information workers create, distribute, and communicate information.

• data workers (secretary and clerks)
• knowledge workers (engineers and scientists)

b.   Office automation systems (OASs)

• managing documents, communications, and scheduling which support the activities of data workers
• Project Managers – programs designed to schedule, plan, and control project resources
• Video conferencing systems – allow people located at various geographical locations to communicate and conduct in-person meetings using this system and Internet

c.   Knowledge work systems (KWSs)

• used specialized programs to design and manufacturing engineers, such as CAD/CAM (computer-aided design/computer-aided manufacturing)