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Types of Information Systems

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Title: Types of Information Systems


1
Types of Information Systems
2
Case Frito Lay
Frito-Lay, Inc., a snack food subsidiary of
Pepsi-Cola, outfitted its 10,000-person direct
store-delivery sales force with handheld
terminals used while calling on the 400,000
stores that sell its 100 products. Salespeople
use the terminals to enter replenishment orders
and record the number of stales removed after
their 35-day shelf life. Based on this data, a
printer in the truck prints an invoice handed to
the store manager as part of the days
deliveries. Salespeople hook the terminals to
telephone lines to transfer each days data to
the companys mainframe computers in Dallas. The
system saves salespeople four or five hours of
paperwork per week.
3
The mainframes in Dallas consolidate the data
each night as part of Frito-Lays internal
replenishment system. Requirements for that
system changed drastically in the 1980s, and
Frito-Lays regional competitors became stronger.
Frito-Lay had to be able to respond quickly to a
variety of competitive challenges, ranging from
price changes to totally new products.
Coordination between manufacturing and sales had
to be much tighter because the company needed to
be able to run local promotions on Thursday for a
product that would have to be available on
Monday.
4
The system also used a data warehouse to provide
comprehensive, up-to-date data for studying sales
by any combination of product, store, and time
period. In South Texas, the data from this
system showed an unexpected drop in sales of
Tostitos tortilla chips. Research into the cause
of the drop indicated that a small competitor had
launched a white corn tortilla chip. Frito-Lay
developed a competitive white corn product within
three months and regained market share.
5
QuestionWhat type(s) of information systems
does the case illustrate?Debate
6
The Frito-Lay information system supports a range
of communication and decision-making functions
typically associated with different types of
information systems. It is a transaction
processing system because it is used to enter
orders from each retailer. It can be considered a
management information system or executive
information system because it provides
information in a readily available form for
managements use. It is a decision support system
because it supports decision making by helping
route drivers, customers, and managers obtain
needed information in a genuinely useful form.
7
Frito-Lay
  • Customers
  • Frito-lay Customers
  • Managers and others who use data
  • Products
  • Complete and timely information accessible for
    decision-making
  • Convenience and low-cost for salespeople and
    customers related to ordering and managing
    inventory
  • Business Process
  • Steps
  • Track customer inventories of Frito-Lay products
  • enter orders
  • Consolidate data about orders and the market
  • Use data for monitoring and decision-making

8
Frito-Lay
  • Business Process
  • Rationale Use hand-held terminals to collect
    data during sales calls. Consolidate the
    information in a system that supports decision
    making.
  • Participants
  • Driver and salespeople
  • Marketing managers
  • Information
  • Inventory by product and customer
  • Customer orders
  • sales by product, region, and period
  • Technology
  • hand held terminals
  • computers
  • telecommunications networks

9
Introduction
  • We can think of information systems as providing
    three basic functions
  • support for decision-making (from computation
    capabilities)
  • support for communication
  • support for access to information
  • We will explore these concepts in depth over the
    next few weeks. The concepts are introduced here.
  • Types of information systems will be introduced
    and we will look at how they affect
    decision-making, communication, and information
    access.

10
Capabilities of Information Systems
  • 1. Fast and Accurate Data Processing, with
    large-Capacity Storage and Rapid Communication
    Between Sites.
  • Computer and telecommunications systems
  • exploited by operational support systems
  • deriving management reporting from volumes of
    data
  • business opportunities built on this capability
  • e.g. consolidate financial results from multiple
    organizational sites
  • 2. Instantaneous Access to Information
  • on-line, ad-hoc access to databases
  • tailorable graphical interfaces
  • support of knowledge-workers
  • e.g. EIS allowing executive access to yesterdays
    sales

11
Capabilities of Information Systems - 2
  • 3. Means of Coordination
  • bringing parts of organizations together in a
    common effort
  • office information systems
  • project management systems
  • portable computing widening the reach of
    information systems creating the virtual office
  • inter-organizational information systems
    coordinating efforts of cooperating enterprises.
  • Coordinate means to harmonize in a common action
    or effort
  • e.g. planning, scheduling, and running a
    workgroup project

12
Capabilities of Information Systems - 3
  • 4. Boundary Spanning
  • IS link an organization to the outside world
  • EDI replacing paper documents
  • connecting suppliers with customers
  • Enables organizations to more quickly receive
    information about their environment
  • Use of the Internet and Web presence to make
    contact with customers
  • e.g. companies that have project teams to monitor
    public forums
  • e.g. investigating the competitive opportunities
    in new markets

13
Capabilities of Information Systems - 4
  • 5. Support for Decision Making
  • Informing managers and permitting them to select
    from alternative courses of action.
  • 6. Supporting Organizational Memory and Learning
  • organizational memory the means by which
    knowledge from the past exerts influence on
    present organizational activities.
  • Preserving the experience the organization has
    delivering products and services
  • e.g. Auto manufacturers preserve electronic
    designs, hotels maintain customer preferences
  • Development of Knowledge Management Systems
  • organizations that acquire knowledge and modify
    behavior are learning.

14
Capabilities of Information Systems - 5
  • 7. Routinizing Organizational Practice
  • e-mail and conferencing systems providing new
    protocols for interaction of people within an
    organization.
  • Expert systems approve/refuse credit card
    transactions assures high consistency.
  • Order processing cycle
  • Routinizing of organizational practice does not
    take away from the creativity of individuals. It
    may leave time and opportunity for greater
    productivity and knowledge work.
  • E.g. electronic processing of insurance policy
    with the support of workflow systems

15
Capabilities of Information Systems - 6
  • 8. Differentiation of Products and Services
  • Firms compete by making their products and
    services different from others.
  • Gain an initial competitive advantage.
  • E.g. FedEx tracking packages and shipments
  • allows for mass customization
  • 9. Modeling
  • model future economic conditions, prospective
    products, and the environment where they will
    operate.
  • Model simplified representation of a real
    object or phenomenon
  • knowledge workers manipulate models of reality in
    order to gain understanding
  • e.g. the spreadsheet
  • e.g. product engineered and tested electronically
    before a physical prototype is made.

16
Capabilities of Information Systems - 7
  • 10. Automation
  • fully automate certain business functions by
    replacing human labor
  • e.g. POS systems
  • However, loss of clerical positions gives rise to
    jon functions responsible for maintaining the
    system and developing new ones to analyze and
    exploit volumes of new information.
  • E.g. lights-out data centers run with out human
    participation.

17
Improving Communication and Decision Making
Performance within Business Processes
RATE OF OUTPUT Improve communication Communicate
more information or more types to more
people Improve decision making Make more
decisions using better, more complete
information CONSISTENCY Improve communication
Make sure different people receive the same
communication Improve decision making Make sure
repetitive decisions are made in the same
way PRODUCTIVITY Improve communication Achieve
more communication with less effort Improve
decision making Make better decisions with less
effort
18
Improving Communication and Decision Making
Performance within Business Processes
CYCLE TIME Improve communication Eliminate
undesirable delays in communication Improve
decision making Eliminate unnecessary delays in
decision making FLEXIBILITY Improve
communication Permit communication in many
different forms Improve decision making Maintain
decision quality across a wider range of
situations SECURITY Improve communication Make
sure communications go only to the intended
recipients Improve decision making Make sure
decisions are controlled only by those authorized
to make the decisions
19
Basic Concepts of Communication
20
Communication
  • Communication is an interpersonal process of
    sending and receiving symbols with messages
    attached to them.

21
General Model of a Communication System
Feedback
Receiver Decoder
Transmitter encoder
Source
Destination
Channel
Noise and Distortion
22
Basic Communication Concepts
  • Social Context
  • Personal, Impersonal, and Anonymous Communication
  • Time, Place, and Direction of Communication

23
Social Context
  • The situation and relationships within which
    communication takes place.
  • Social presence
  • Organizational position
  • Relationships
  • Cultural Norms
  • Age
  • Gender
  • The topic being discussed
  • Nonverbal communication
  • Media Richness Theory

24
Personal, Impersonal, and Anonymous Communication
  • Personal - the relationship between sender and
    receiver matters. It affects form and content.
  • Impersonal - The sender and receivers
    relationship does not matter. Both serve as
    agents of the organization.
  • Anonymous - The senders identity is hidden from
    the recipient.

25
Time, Place, and Direction of Communication
  • Synchronous - The sender and Receiver are
    available simultaneously
  • Asynchronous - The sender and receiver are not
    available simultaneously.
  • Place Involves Physical Presence
  • Direction One-way vs. Two Way communication.

26
Common Communications Classified By Time and
Place
Presentation Systems Copyboards PC
Projectors Facilitation Services Polling
Systems Group Decision Rooms
Transaction databases World Wide Web Shared
Files Electronic Mail Voice Mail Shift Work
Communications
SAME PLACE
EDI Transaction databases Electronic
Mail Computer Conferencing Voice
Mail Fax Pre-recorded Radio/TV
DIFFERENT PLACE
Typical Telephone Video Telephone Video
Conferencing Live Radio TV Broadcast
SAME TIME
DIFFERENT TIME
27
What are some approaches for Information Systems
to improve communications?
28
Approaches for Improving Communication
  • 1. Make face to face communication more
    effective.
  • 2. Eliminate Unnecessary Person to Person
    Communication
  • 3. Make Communications more systematic
  • 4. Combine and Extend Electronic Communications

29
Making Face to Face Communication More Effective
  • Presentation Technologies
  • Blackboard
  • Prepared Paper Handouts
  • Overhead projector or slide projector with color
    transparencies
  • Electronic Blackboard
  • Computer LCD Display panels
  • Computer for What-If Scenarios
  • Computer-controlled Multi-media
  • Computer controlled multi-media with interactive
    control.

30
Eliminate Unnecessary Person to Person
Communication
  • Substitute on-line Access to data
  • Example Supplier/Customer Relationships as
    discussed in Interorganizational Information
    systems
  • ATM access
  • Automated Telephone Attendants
  • Danger of becoming too impersonal

31
Making Communication Systematic
  • Contrast communication between people vs.
    communication between machines.
  • The business Memo Header
  • To
  • From
  • Date
  • Re
  • Having structure reduces the effort required to
    figure out what the communication means.
  • Even with communication between groups of people,
    repetitive aspects of communication are
    systematized.

32
Combine and Extend Electronic Communication
Functions
  • Early communication technologies have been
    combined and extended to create more powerful
    communication technologies.
  • Example Telegraph, Telephone, Radio Broadcast
  • Consider how more modern technologies are being
    combined.
  • More convergence of computing and communications
    technologies.

33
Question How have the different degrees of
social presence in communication, or how have
time, place, and direction of communication
affected a situation in which you have been
involved?
34
Basic Decision-Making Concepts
35
Steps in Decision Making
36
Types of Information Systems
37
Different Classification Schema
  • There is no one hard and fast rule for
    classifying information systems. Some way we
    might consider
  • By Organizational Level
  • By Major Functional Area
  • By the Support Provided by the System
  • By the Information System Architecture

38
Classification of IS Organizational Levels
  • Consider the hierarchical nature of
    organizations. Although many organizations are
    reengineering themselves and transforming
    themselves to other structures, the vast number
    of organizations have a hierarchical structure.
    Typical information systems that follow
    organizational levels are
  • Departmental or functional area
  • Enterprise Information Systems ( e.g. vendors
    today market enterprise systems - PeopleSoft,
    SAP).
  • Inter-organizational Systems (e.g. American
    Airlines Sabre)

39
Classification of IS Major Functional Area
  • Departmental information systems may follow
    traditional Functional Areas
  • The accounting system
  • the finance system
  • the manufacturing (operation/production) system
  • the marketing system
  • the human resource system
  • Note in each functional area, there may be basic
    computerized tasks that essential to the
    operations of the organization and are routine in
    nature (e.g. preparing a payroll and billing a
    customer).

40
Classification of IS Major Functional Area - 2
  • Such tasks are mission-critical and often are
    supported by transaction processing systems
    (TPS). TPS support tasks in all functional
    areas.
  • In each functional area it is often possible to
    fund dozens of IS-specific applications.
  • The functional area classification is outdated
    and perpetuates the notion of functional silos or
    functional islands of information.
  • There is the need for cross-functional
    information systems.

41
Major Functional Areas
  • Primary Activities
  • Manufacturing
  • Materials Management (logistics)
  • Engineering
  • Testing and Quality Control
  • Maintenance and Service
  • Marketing and Sales
  • Support Activities
  • Accounting
  • Finance
  • Strategic Planning
  • Human Resource Management
  • Research and Development
  • Procurement (Purchasing)
  • Public Relations
  • Information Systems

42
Classification of IS Support Provided
  • Another way to classify IS is by the type of
    support provided regardless of the functional
    area involved
  • Transaction Processing Systems (TPS) - supporting
    routine operations central to the mission of the
    organization.
  • Management Information Systems (MIS) - supporting
    functional managers.
  • Office Automation Systems (OAS) - supporting
    office workers.
  • Group Support Systems (GSS) - supporting people
    working in groups

43
Classification of IS Support Provided
  • Decision Support Systems (DSS) - supporting
    managers and analysts.
  • Executive Information Systems (EIS) - supporting
    executives
  • Execution systems - systems that directly support
    the organizations value-added work (e.g. help
    sales people sell, doctors practice medicine,
    architects design, etc.)
  • Intelligent Support system - supporting knowledge
    workers using Expert systems (ES) and artificial
    neural networks (ANN)

44
Classification of ISBy Nature of Activity
Supported
  • Operational Systems - deal with day to day
    operations. Often involve TPS. Systems used by
    first-line managers (supervisors). Operational
    decisions are of short-term nature.
  • Managerial or Tactical - used by middle
    management short-term planning, organizing, and
    controlling. Managerial systems are broader in
    scope that operational systems. They are often
    equated with MIS.
  • Strategic - deal with long-term situations which
    significantly affect how business is conducted.
  • Note Reference Gorry Scott-Morton article.

45
Information Systems Design
  • The manner is which an IS is designed depends on
    what it is intended to support.
  • It is important to conceptualize the information
    requirements of the organization (See Wetherbe
    article).
  • Often the conceptualization of how information
    requirements will be met is called the
    information architecture. It is a high-level
    description of an organizations information
    resources.
  • The Information Systems infrastructure or
    information technology infrastructure is a
    related concept.

46
Information Systems Design - 2
  • The information technology infrastructure is a
    description of how computers, networks,
    databases, and other facilities are arranged and
    how they are operated and managed.
  • Architecture and Infrastructure are related
    aspects of Information System Design.
  • An analogy is the conceptual planning of a house
    (architecture) and the physical construction of
    the foundation, walls, roof, etc.
    (infrastructure).

47
Classification of ISBy Information Systems
Architecture
  • Information Systems can be classified according
    to the systems architecture
  • a mainframe based system, sometime called
    host-based systems.
  • a stand-alone personal computer.
  • a Networked (or distributed) environment divides
    the work between two or more computers.
  • Cooperative processing (geographic dispersed)
  • client-server (generally with LANs)
  • enterprise wide (uses intranet)

48
Detail on Information Systems by Support Provided
49
Transaction Processing Systems
  • A transaction is an elementary activity conducted
    during business operations (e.g. merchandise
    sale).
  • Earliest Information Systems in organizations.
  • Support the monitoring, collection, storage,
    processing, and dissemination of the
    organizations basic business transactions.
  • Provides backbone for many other applications
    involving other support systems.
  • On-line systems called OLTP vs. batch
  • Routine, repetitive tasks.

50
Business Transactions in a Factory
  • Payroll employee time cards, employee pay and
    deductions, payroll checks.
  • Purchasing purchase orders, deliveries,
    payments (accounts payable)
  • Sales sales records, invoices and billing,
    accounts receivable, sales returns, shipping
  • Manufacturing production reports,
    quality-control reports
  • Finance and Accounting financial statements, tax
    records, expense accounts
  • Inventory management materials usage, inventory
    levels

51
Transaction Processing Systems - 3
  • In addiiton to processing the routine critical
    organizational activities, transaction processing
    systems also provide the source data for many
    other type of information systems used at the
    tactical and strategic levels in the
    organization.
  • Recall that tactical and strategic levels use
    aggregated data, over multiple time periods. TPS
    are often the source of this information. TPS
    often populate data warehouse which provide
    on-line analytical processing (OLAP).

52
TPS Data Entry Screen
53
Management Information Systems
  • Systems that convert TPS data into information
    for monitoring performance and managing an
    organization.
  • The MIS provides periodic information to
    functional (operational) and mid-level (tactical)
    managers on routine matters such as operational
    efficiency, effectiveness, and productivity.
  • Example An HRIS can provide the HR manager with
    percentages of people who are on vacation or call
    in sick. It can compare actual to forecasted
    values, or to an industry average.
  • MIS are used for planning, monitoring, and
    control.

54
MIS management report
55
Methods for Managerial Systems Support (MIS or
Tactical Level)
  • 1. Statistical Summaries
  • 2. Exception Reports
  • 3. Periodic and ad hoc reports
  • 4. Comparative analysis
  • 5. Projections
  • 6. Early detection of problems
  • 7. Routine decisions

56
Statistical Summaries
  • Statistical Summaries - summary of raw data
    collected in TPS.
  • Examples
  • Daily production
  • weekly absenteeism rate
  • monthly usage of utilities
  • Enhanced with graphics - a picture tells a
    thousand words.

57
Exception Reports
  • To relieve managers from the information-overload
    syndrome, an information system can extract (or
    highlight) exceptions.
  • Produced only when pre-established
    out-of-bounds conditions occur
  • E.G. a report that compares expenses to budget,
    all expense items that exceed the budget by more
    than 5 per cent are underlined, colored, or
    separated from the rest.
  • Exception reporting helps managers avoid perusal
    of incidental figures and concentrate on
    deviations from the norm.
  • Challenge is to define the exceptions vs. normal.

58
Periodic and Ad Hoc Reports
  • Both statistical summaries and exception reports
    can be done on a routine basis or on a demand
    basis by users (ad hoc).
  • Ad hoc requested because they contain
    information not available in the routine reports
    or because users can not wait for the scheduled
    time of the periodic report.
  • As technology improves, the ability to request
    and receive ad hoc reports will improve further.
    Managers should be able to view current or even
    real-time information at any time they wish to do
    so.
  • Query languages to databases facilitate such
    inquiry. Web access tools are providing the same.

59
Comparative Analysis
  • Managers like to see performance values and other
    information compared to their competitors, past
    performance, or industry standards.
  • Key Performance Indicators and other Critical
    Success Factors can be calculated from primarily
    internal information and compared with
    information external to the organization. These
    measures are often found in Executive Information
    Systems.

60
Projections
  • In contrast to operational systems, which have a
    historical orientation, managerial information
    systems provide standard projections such as
    trend analysis, projection of future sales,
    projection of cash flows, or forecasting of
    market share.
  • Many projections will look at historical data and
    factors in key environmental factors and factors
    (e.g. consumer price index, inflation rate) to
    predict the future.

61
Early Detection of Problems
  • By comparing and analyzing data, managerial
    systems can detect problems in their early
    stages.
  • For example, statistical quality control reports
    can reveal if a trend for reduced quality is
    developing.
  • This requires defining norms.

62
Routine Decisions
  • Middle managers are involved in many routine
    decisions.
  • They schedule employees, order materials and
    parts, and decide what and when to produce.
  • Standard computerized mathematical, statistical,
    and financial models are available for the
    execution of these activities.

63
Strategic Potential of Transaction Processing and
Management Reporting Systems
  • TPS should not be written off as
    efficiency-oriented that requires nothing more
    than technical ingenuity
  • TPS can be enablers of major process innovations
    when approached with a TQM perspective.
  • Redesigned business processes, supported by TPS,
    cut through functional business lines and can
    ensure rapid and high-quality customer service.
    They can be a source of competitive advantage and
    generate a wealth of organizational knowledge.

64
Strategic Potential of Transaction Processing and
Management Reporting Systems - 2
  • Examples
  • The Ford Purchasing System highlighted in chapter
    2.
  • NJITs Self-Registration System and other Let
    the customer do it himself/herself systems.
  • TQM systems
  • customer-focus
  • process-oriented
  • total involvement

65
Decision Support Systems
  • Help people make decisions by providing
  • access to data,
  • iterative problem-solving
  • direct use of models,
  • and analysis tools with user-controllable
    methods for displaying results.
  • Normally used in situations where decisions are
    semi-structured and unstructured where no one
    knows exactly how the decision should be made.

66
IS Structured Decision-MakingStructuring loan
authorization
67
Decision Support Systems - 2
  • DSS grew out of dissatisfaction with the ability
    of TPS and MIS to solve a new class of problems.
  • Repetitive Use of DSS Insurance agents use DSS
    to help customers choose policy options.
    Different scenarios are reviewed.
  • Non-repetitive use of DSS models are used to
    help evaluate different business strategies.
  • Note the use of what if? questioning.

68
Graphical output from a DSS
69
Decision Support Tools
  • The use of on-line data analysis tools to explore
    large databases of transaction data is called
    on-line analytical processing (OLAP). The idea
    of OLAP grew out of difficulties analyzing the
    data in databases that were continually updated
    by TPS.
  • Periodic downloads of transaction data is stored
    in a separate database specifically designed to
    support analysis work. This database is called
    the data warehouse.
  • Use of OLAP tools to try and find relevant
    patterns in large transaction databases is called
    data mining.

70
Executive Information Systems
  • An EIS is a highly interactive systems which
    provides managers and executives flexible access
    to information for monitoring operating results
    and general business conditions.
  • EIS attempts to take off where the traditional
    MIS.
  • EIS reporting is tailorable to the user.

71
EIS - 1
(a)
(b)
(c)
72
EIS - 2
73
EIS - 3
74
MIS for strategic and policy planning
and decision making
EIS
Management Information for tactical planning
and decision-making
DSS, ES
Management Information for operational planning,
decision-making and control
MIS
Basic Transaction Processing Collection of Core
Business Data
TPS
75
Office Automation Systems
  • Provide individuals with effective ways to
    process personal and organizational business
    data, perform calculations, and create documents.
  • Facilitates everyday information processing tasks
  • Includes a wide range of tools such as
    spreadsheets, word processors, presentation
    packages, and personal databases. Sometimes
    e-mail, v-mail, and fax are included.
  • When used for personal purposes, the work is less
    structured. When tools are included for groups
    or teams, we often consider the tools groupware.

76
Group Support Systems
  • Share information with different people working
    on different parts of a task.
  • Controlling work flows and approval loops within
    a group.
  • Incorporating efficient methods of scheduling
    meetings.
  • Other names used are Groupware and
    Computer-Supported Cooperative Work (CSCW)
    systems.

77
Group Support Systems - 2
  • A form of Group Support systems called GDSS
    (Group Decision Support Systems) provides
    decision support by providing structure for
    meetings.
  • The meetings can be held synchronously or
    asynchronously.
  • Features of EIES/VC are compatible with GDSS.

78
GDSS Room
79
Communication Systems
  • Helps people work together by sharing information
    in different forms.
  • Examples teleconferencing, video conferencing,
    messaging systems.
  • Sometimes called Computer Mediated Communication
    Systems (CMC).
  • Sometimes the features are considered part of
    groupware or office automation systems.

80
Options for teleconferencing
81
Expert Systems
  • Information systems that support the work of
    professionals in bounded, but complex situations
    where it is recognized that experts do better
    than non-experts.

82
Example Information Systems in a Human Resource
Department
  • The boundaries between different classifications
    of IS are not precise and several real-life
    systems combine several of the categories.
  • Follow the descriptions of various HRISs in the
    next few slides.

83
Transaction Processing in an HRIS
  • Keep inventory of personnel
  • payroll preparation
  • compute salaries and incentive plans

84
Management Information Systems as part of an HRIS
  • Summary reports (e.g. average salaries in town)
  • performance tracking of employees
  • labor budget
  • preparation, monitoring, and analysis
  • short-term scheduling
  • match positions and candidates
  • fringe benefits monitoring and control

85
Decision Support Systems in an HRIS
  • Special report (e.g. safety records, equal
    opportunity achievements)
  • Long range planning for human resources
  • design of a compensation plan
  • quantitative support of labor-management
    negotiations

86
Expert Systems in an HRIS
  • Advice on legal and tax implications during
    management-labor negotiations.
  • Develop social responsibility plans
  • select training media
  • design comprehensive training programs

87
Office Automation in an HRIS
  • On-line job interviews and recruiting,
  • schedule meetings,
  • mailing lists,
  • schedule training,
  • electronic mail,
  • labor news and statistics received on-line
  • preparation of training materials

88
Executive Information Systems in an HRIS
  • Exists at corporate level only
  • will measure key performance indicators of the
    department (such as dollar per employee)

89
IS Impacts on Communication and Decision Making
  • Transaction Processing Systems
  • Communication
  • creates database that can be accessed directly,
    thereby making some person to person
    communication necessary.
  • Decision-Making
  • gives immediate feedback on decisions while
    processing transactions.

90
IS Impacts on Communication and Decision Making
  • Management Information Systems and Executive
    Information Systems
  • Communication
  • Provides a basis of facts rather than options for
    explaining problems and solutions
  • Decision Making
  • provides summary information and measures of
    performance for monitoring results.
  • May provide easy ways to analyze the types of
    information provided in less flexible form by
    older MIS

91
IS Impacts on Communication and Decision Making
  • Decision Support Systems
  • Communication
  • analysis using DSS helps provide a clear
    rationale for explaining decisions.
  • Decision Making
  • provides tools for analyzing data and building
    models
  • Analysis using a DSS helps define nd evaluate
    alternatives

92
Information System Examples in Three Functional
Areas of BusinessSales,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

Reference Table 5.6 in Alter Textbook.
93
Transferable Features of IS
  • OFFICE AUTOMATION SYSTEMS
  • Transferable features
  • Multiple forms of information, sometimes used in
    combination
  • Immediacy and interactivity of communication
  • Avoidance of unproductive work
  • COMMUNICATION SYSTEMS
  • Transferable 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 SYSTEMS
  • Transferable features
  • Control
  • Procedures and rules
  • Repetitions

94
Transferable Features of IS - 2
  • MANAGEMENT AND EXECUTICE INFORMATION SYSTEMS
  • Transferable 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 SYSTEMS
  • Transferable features
  • User-controlled interaction with computers
  • Use of models and data
  • Information systems applied to semistructured
    tasks
  • EXECUTION SYSTEM
  • Transferable features
  • Integrating computerized systems into doing the
    organizations value added work
  • Bringing knowledge in active form to people doing
    the work
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