© 2006 pearson education canada inc.6-1 chapter 6 organizational information systems powerpoint...
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6-1© 2006 Pearson Education Canada Inc.
Chapter 6Organizational
Information Systems
PowerPoint PresentationPowerPoint Presentation
Jack Van DeventerJack Van Deventer
Ward M. EagenWard M. Eagen
6-3© 2006 Pearson Education Canada Inc.
General Types of Information Systems
Transaction Processing Systems (TPS)Transaction Processing Systems (TPS) Management Information Systems (MIS)Management Information Systems (MIS) Decision Support Systems (DSS)Decision Support Systems (DSS) Executive Support Systems (ESS) or Executive Support Systems (ESS) or
Executive Information Systems Executive Information Systems Expert SystemsExpert Systems Office Automation SystemsOffice Automation Systems
6-4© 2006 Pearson Education Canada Inc.
General Types of Information Systems
Transaction Processing Systems (TPS)Transaction Processing Systems (TPS) To record transactionsTo record transactions Used at Used at operationaloperational level of the level of the
organizationorganization Goal: To automate repetitive information Goal: To automate repetitive information
processing activitiesprocessing activitiesIncrease speedIncrease speedIncrease accuracyIncrease accuracyGreater efficiencyGreater efficiency
6-5© 2006 Pearson Education Canada Inc.
General Types of Information Systems
Transaction Processing Systems (TPS)Transaction Processing Systems (TPS) Examples:Examples:
PayrollPayrollSales and orderingSales and orderingInventoryInventoryPurchasing, receiving, shippingPurchasing, receiving, shippingAccounts payable and receivableAccounts payable and receivable
6-6© 2006 Pearson Education Canada Inc.
General Types of Information Systems
Management Information Systems (MIS)Management Information Systems (MIS) Used at Used at managerialmanagerial level of the organization level of the organization Examples:Examples:
Sales forecastingSales forecastingFinancial management and forecastingFinancial management and forecastingManufacturing planning and schedulingManufacturing planning and schedulingInventory management and planningInventory management and planningAdvertising and product pricingAdvertising and product pricing
6-7© 2006 Pearson Education Canada Inc.
Information Systems that Span Organizational Boundaries
Decision Support Systems (DSS)Decision Support Systems (DSS) Designed to support organizational decision Designed to support organizational decision
making making (at all levels but mostly at the (at all levels but mostly at the ManagerialManagerial level) level)
““What-if” analysisWhat-if” analysis Example of a DSS tool: Microsoft ExcelExample of a DSS tool: Microsoft Excel Text and graphsText and graphs
Models for each of the functional areasModels for each of the functional areas Accounting, finance, personnel, Purchasing, etc.Accounting, finance, personnel, Purchasing, etc.
6-8© 2006 Pearson Education Canada Inc.
General Types of Information Systems
Executive Support Systems (ESS), or Executive Support Systems (ESS), or Executive Information Systems (EIS)Executive Information Systems (EIS) Used at Used at executiveexecutive level of the organization level of the organization Examples:Examples:
Executive-level decision makingExecutive-level decision makingLong-range and strategic planningLong-range and strategic planningMonitoring internal and external eventsMonitoring internal and external eventsCrisis managementCrisis managementStaffing and labour relationsStaffing and labour relations
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FunctionalFunctional Area Information Systems Area Information Systems
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Used to:Used to:Share messages, documents, reports, Share messages, documents, reports,
data/info, schedulesdata/info, schedules Virtual teamsVirtual teams VideoconferencingVideoconferencing
Desktop VideoconferencingDesktop Videoconferencing• e.g. Microsoft’s e.g. Microsoft’s NetmeetingNetmeeting
SMART BoardsSMART Boards GroupwareGroupware
• e.g. e.g. Lotus NotesLotus Notes (now owned by IBM) (now owned by IBM)
Electronic Meeting Systems (EMSs)Electronic Meeting Systems (EMSs)
Collaboration Technologies
6-12© 2006 Pearson Education Canada Inc.
International ISInternational IS supports cross-border transactionssupports cross-border transactions
• e.g. Beneton’s TPS (central located in Italy)e.g. Beneton’s TPS (central located in Italy)• e.g. Wal-Mart TPS/Inventory/Logistics & Supply Mgmt e.g. Wal-Mart TPS/Inventory/Logistics & Supply Mgmt
SystemSystem Transnational ISTransnational IS
Allows different parties/users to conduct Allows different parties/users to conduct transactions simultaneouslytransactions simultaneously
• e.g. Foreign-Exchange (currency) traderse.g. Foreign-Exchange (currency) traders Multinational ISMultinational IS
Decentralises data processing locally to respond Decentralises data processing locally to respond to local rules & regulationsto local rules & regulations
• e.g. Accounting Information System (following that e.g. Accounting Information System (following that country’s Accounting Rules & Principles)country’s Accounting Rules & Principles)
Global Information SystemsWHY? Because people, firms, & systems need to communicate and share over great distances and different time zones
6-13© 2006 Pearson Education Canada Inc.
Global ISGlobal IS Uses centralised networks to handle Uses centralised networks to handle
transactions coming from anywhere in the transactions coming from anywhere in the worldworld
• e.g. General Motors e.g. General Motors Global Inventory Management Global Inventory Management SystemSystem (consolidates all inventory information from (consolidates all inventory information from around the worldaround the world
Collaborative ISCollaborative IS Integrates different applicationsIntegrates different applications
• e.g. International Airline Reservation Systems e.g. International Airline Reservation Systems GalileoGalileo and and ApolloApollo used by multiple airlines and used by multiple airlines and travel agents to “simultaneously book international travel agents to “simultaneously book international flightsflights
Global Information Systems
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Brief Case 1: Shell Canada
Shell Canada’s easyPAY RFID payment Shell Canada’s easyPAY RFID payment technology was rolled out in 2001technology was rolled out in 2001
Shell conducted extensive research that revealed Shell conducted extensive research that revealed speed and convenience are becoming increasingly speed and convenience are becoming increasingly important factors for their consumersimportant factors for their consumers
The RFID technology allows the customer to The RFID technology allows the customer to bypass the lucrative service retail outlets, however bypass the lucrative service retail outlets, however positive customer reaction outweighs any potential positive customer reaction outweighs any potential loss of in-store salesloss of in-store sales
6-15© 2006 Pearson Education Canada Inc.
Brief Case 3: University of Victoria Screening graduate school applications can be Screening graduate school applications can be
very resource intensive and inconsistentvery resource intensive and inconsistent The University of Victoria has implemented an The University of Victoria has implemented an
expert system by Acquired Intelligence Inc. which expert system by Acquired Intelligence Inc. which screens applicants based on a set of predefined screens applicants based on a set of predefined questions and rates them for further reviewquestions and rates them for further review
Students’ ratings place them in categories such as Students’ ratings place them in categories such as ‘accept,’ ‘reject,’ or ‘discuss,’ which saves ‘accept,’ ‘reject,’ or ‘discuss,’ which saves committee members substantial timecommittee members substantial time