6 major type of systems, Thesis of Business Systems

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Decision-Making Levels of an Organization

Decision-Making Levels of an Organization



Executive level (top)

Executive level (top)



Long-term decisions

Long-term decisions



Unstructured decisions

Unstructured decisions



Managerial level (middle)

Managerial level (middle)



Decisions covering weeks and months

Decisions covering weeks and months



Semistructured decisions

Semistructured decisions



Operational level (bottom)

Operational level (bottom)



Day-to-day decisions

Day-to-day decisions



Structured decisions

Structured decisions

General Types of Information Systems



Transaction Processing Systems (TPSs)

Transaction Processing Systems (TPSs)



Transactions

Transactions



Used at Operational level of the organization

Used at Operational level of the organization



Goal: to automate repetitive information

Goal: to automate repetitive information

processing activities

processing activities



Increase speed

Increase speed



Increase accuracy

Increase accuracy



Greater efficiency

Greater efficiency

General Types of Information Systems



Transaction Processing Systems (TPSs)

Transaction Processing Systems (TPSs)



Online processing

Online processing



Batch processing

Batch processing



Data input

Data input



Manual data entry

Manual data entry



Semiautomated data entry

Semiautomated data entry



Fully automated data entry

Fully automated data entry

Batch Processing:



Data is processed in groups or batches. Batch

Data is processed in groups or batches. Batch

processing is typically used for large amounts of

processing is typically used for large amounts of

data that must be processed on a routine schedule,

data that must be processed on a routine schedule,

such as paychecks or credit card transactions. A

such as paychecks or credit card transactions. A

batch processing system has several main

batch processing system has several main

characteristics: collect, group, and process

characteristics: collect, group, and process

transactions periodically. Batch programs require

transactions periodically. Batch programs require

no user involvement and requires significantly

no user involvement and requires significantly

fewer network resources than online systems.

fewer network resources than online systems.

General Types of Information Systems



Transaction Processing Systems (TPSs)

Transaction Processing Systems (TPSs)



Examples:

Examples:



Payroll

Payroll



Sales and ordering

Sales and ordering



Inventory

Inventory



Purchasing, receiving, shipping

Purchasing, receiving, shipping



Accounts payable and receivable

Accounts payable and receivable

Information Systems that

Span Organizational Boundaries



Knowledge Work Systems (KWSs)

Knowledge Work Systems (KWSs)



Mimics human expertise by manipulating

Mimics human expertise by manipulating

knowledge

knowledge



Rules (If-then)

Rules (If-then)



Takes Design specifications as input and

Takes Design specifications as input and

produces Models and graphics for technical

produces Models and graphics for technical

staff.

staff.



Ex – CAD, CAM

Ex – CAD, CAM

General Types of Information Systems



Management Information Systems (MISs)

Management Information Systems (MISs)



Two Types:

Two Types:



Management of IS in organizations

Management of IS in organizations



Specific information systems for mid-level

Specific information systems for mid-level

managers

managers



Used at managerial level of the organization

Used at managerial level of the organization

General Types of Information Systems



Management Information Systems (MISs)

Management Information Systems (MISs)



Examples:

Examples:



Sales forecasting

Sales forecasting



Financial management and forecasting

Financial management and forecasting



Manufacturing planning and scheduling

Manufacturing planning and scheduling



Inventory management and planning

Inventory management and planning



Advertising and product pricing

Advertising and product pricing

Information Systems that

Span Organizational Boundaries



Decision Support Systems (DSSs)

Decision Support Systems (DSSs)



Designed to support organizational decision

Designed to support organizational decision

making

making



What-if” analysis

What-if” analysis



Example of a DSS tool: Microsoft Excel

Example of a DSS tool: Microsoft Excel



Text and graphs

Text and graphs



Models for each of the functional areas

Models for each of the functional areas



Accounting, finance, personnel, etc.

Accounting, finance, personnel, etc.

General Types of Information Systems



Executive Information Systems (EISs)

Executive Information Systems (EISs)



Examples:

Examples:



Executive-level decision making

Executive-level decision making



Long-range and strategic planning

Long-range and strategic planning



Monitoring internal and external events

Monitoring internal and external events



Crisis management

Crisis management



Staffing and labor relations

Staffing and labor relations



Input – aggregate data &

Input – aggregate data &



Support senior management

Support senior management



Address non-routine decisions

Address non-routine decisions



RequiringRequiring judgment,judgment, evaluation,evaluation, andand

insight

insight



Incorporate data about external events (e.g.

Incorporate data about external events (e.g.

new tax laws or competitors) as well as

new tax laws or competitors) as well as

summarized information from internal MIS and

summarized information from internal MIS and

DSS DSS



Example: Digital dashboard with real-time

Example: Digital dashboard with real-time

view of firm’s financial performance:

view of firm’s financial performance:

working capital, accounts receivable,

working capital, accounts receivable,

accounts payable, cash flow, and inventory

accounts payable, cash flow, and inventory

Information Systems that Span Organizational Boundaries

Sales and marketing systems



System Description Orgainzational Level

Order Processing Enter, Process and track

orders.

Operational

Market Analysis Identify customers and

markets using data on

demographics, markets,

consumer behavior and

trends

Knowledge

Pricing Analysis Determine prices for

products and services

Management

Sales trend forecasting Prepare 5 –year sales

forcasts

Strategic