oism session 15 technology in business
TRANSCRIPT
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Slide 3-4.1
Elliott, Global Business Information Technology © Pearson Education Limited 2005
Business Systems Activity
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Slide 3-4.2
Elliott, Global Business Information Technology © Pearson Education Limited 2005
The activity of decision making involves thefollowing sequence of activity:
1 planning
2 decision making
3 control
Planning is the process of deciding, in advance,
what is to be done, how it is to be carried out,when it is to be achieved and who is to achieve it
Business ystems !ctivity
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Slide 3-4.3
Elliott, Global Business Information Technology © Pearson Education Limited 2005
Steps in the decision making process (Simon, 1960):
•Input: gathering and collecting data•Intelligence: scrutinizing and examining the data•Design: formulating the problem and testing solutions•Choice: making a selection from a number of options•Implementation: choosing and implementing the choice
option
•Output: the decision
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Slide 3-4.4
Elliott, Global Business Information Technology © Pearson Education Limited 2005
Decision making is o t!o t"pes:• #ational :
•$ased on su%stantiated acts and data
•&on'rational•argel" %ased on opinions
Decision making is %usiness is %ased on %oth rational and
non'rational data
Decision making oten on %asis o incomplete data and
inormation
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Slide 3-4.5
Elliott, Global Business Information Technology © Pearson Education Limited 2005
Causes o ailure o leel o certaint" o decisions: limited time aaila%le to make decisions
imited inormation and data, proiding an
incomplete picture o the pro%lem*
Ineectie s"stems or processing o data and
inormation or the purpose o decision making
+hus, the need or mechanisms or inormation
modelling
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Slide 3-4.6
Elliott, Global Business Information Technology © Pearson Education Limited 2005
"eal#$orld %ecision &aking
1 'b(ectives setting
2 Planning strategies
3 %ecision making
) %irecting and e*ecuting tasks
+ 'btaining feedback
&onitoring and control
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Slide 3-4.7
Elliott, Global Business Information Technology © Pearson Education Limited 2005
Inormation S"stems are deeloped and used in
organi-ations to help !ith the a%oe
Inormation s"stems are used in organi-ations at
all ollo!ing leels:•+ransaction. Operational•/anagement•ecutie
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Slide 3-4.8
Elliott, Global Business Information Technology © Pearson Education Limited 2005
%ecision -hinking:
!n information systems used for decision makingmust
. /onsider the full range of factors a0ecting thedecision, both formal and informal
. *plore all the alternative courses of actionavailable
. !ssimilate all the possible information related tothe decision#making environment
. valuate the risks, costs and benets of a range ofactions
. &ake detailed plans for implementing the variousactions
. "eview the e0ectiveness of past decisions toassess im act
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Slide 3-4.9
Elliott, Global Business Information Technology © Pearson Education Limited 2005
Business 'rganisationalierarchy
trategic 4evel
&anagement 4evel
'perational 4evel
*ecutive 5nformationystems 657
&anagement5nformation ystems6&57
-ransactionProcessing ystems
6-P7
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Slide 3-4.10
Elliott, Global Business Information Technology © Pearson Education Limited 2005
pectrum of ystems /haracteristics
Figure 2.4 Information systems deision le!els "it#in a $usiness
organi%ation
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Slide 3-4.11
Elliott, Global Business Information Technology © Pearson Education Limited 2005
3 types of systems&'ransation (roessing Systems
'#e use of om)uters to automate routine tas*s in t#e
organisation +i.e. )ayroll systems,. '#ese systems later e!ol!ed
into t#e use of om)uters to ma*e routine deisions for
ontrolling some o)erational )roesses
&anagement Information Systems/eision Su))ort System
Im)lemented "it# t#e o$eti!e of inreasing managementeffeti!eness $y satisfying t#eir information needs. '#is is
a#ie!ed $y using data from t#e data )roessing systems to
)rodue summary information a$out $usiness )erformane
&Strategi Information Systems
Su# systems emerged $eause organisation "ere using ISI' to
#ange #o" t#ey onduted t#eir $usiness "it# t#e diret intent
of gaining a om)etiti!e edge. SIS systems fous on t#e on term
aims o$eti!es and goals of t#e organisation
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Slide 3-4.12
Elliott, Global Business Information Technology © Pearson Education Limited 2005
Three types of systems
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Slide 3-4.13
Elliott, Global Business Information Technology © Pearson Education Limited 2005
/haracteristics of -P
. "outine and deterministic in nature
. 4arge#scale alphanumeric data#processing activities
. eavy data storage requirements
. igh level of routine and repetition in theprocessing activity
. "eliance on deterministic computation andmathematical algorithms
. 8requent and routine operation on a day#to#day
basis
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Slide 3-4.14
Elliott, Global Business Information Technology © Pearson Education Limited 2005
-ransaction#Processing!ctivities
%ata collection
%ata manipulation
%ata storage
-ransaction#Processing
ðods Batch processing"eal#time processing
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Slide 3-4.15
Elliott, Global Business Information Technology © Pearson Education Limited 2005
-ransaction Processingystems *amples:
ales order processing
Purchase order processing
Production planning and production control
tock 6or inventory7 control
"eceiving and distribution
Payroll 6wages and salaries7
!ccounting
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Slide 3-4.16
Elliott, Global Business Information Technology © Pearson Education Limited 2005
Figure 7.3 Purchase order processing system
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Slide 3-4.17
Elliott, Global Business Information Technology © Pearson Education Limited 2005
5ntegrated Business ystems
Figure 7.7 Integration of purchases, sales and accounting
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Slide 3-4.18
Elliott, Global Business Information Technology © Pearson Education Limited 2005
&anagement 5nformation ystems
9! system providinginformation fordecision making
usually intended formiddle management-he information maybe internal or e*ternalto the organisation;
enry 8ayol 61
9…to manage is toforecast and plan, to
organize, to command,to cooperate and tocontrol”
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Slide 3-4.19
Elliott, Global Business Information Technology © Pearson Education Limited 2005
%ecision upport ystems
9! system thatsupports managersand e*ecutives bymodelling the
decision#makingprocess>;
>'perate onunstructured or semi#structured informationenvironments>
ituation information
tatus information
8eedback and controlinformation
Planning information
nvironmentalinformation
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Slide 3-4.20
Elliott, Global Business Information Technology © Pearson Education Limited 2005
&anagement %ecision ystems
?ormally deal with data and information that are bothob(ective and sub(ective to varying degrees
*amples are Personnel ystems 6uman "esources7,
&arketing ystems, /ustomer upport ystems and"esearch and %evelopment
Provide managers with information that allows them toplan, control and organise more e0ectively and e@ciently
&anagers rely on formal reports generated by the variousinformation systems of the organisation
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Slide 3-4.21
Elliott, Global Business Information Technology © Pearson Education Limited 2005
/haracteristics of 5
• !bility to handle vast amounts of alphanumeric, te*tual,graphical and other multimedia information
. 8acility to handle, process and interpret data andinformation from very di0erent sources, using di0erentpresentational formats
. !bility to provide report and presentational Ae*ibility thatcan be integrated into di0erent output media
. 8acility to manipulate and analyse data and informationthrough modelling and simulation and other what#if analysis
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Slide 3-4.22
Elliott, Global Business Information Technology © Pearson Education Limited 2005
8our &ain &odels of *ecutive
5nformation ystems
8inancial models: cash Aow analysis, investmentanalysis and rates of return analysis
tatistical analysis models: statistics, trend analysis,statistical and econometric testing
raphical models: designed to provide a visual
picture of the underlying data and information
&anagement models: developed to control andpredict the management structure of an organisation
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Slide 3-4.23
Elliott, Global Business Information Technology © Pearson Education Limited 2005
/omponents of an 5
Figure 7.14 Components of an executie decision support systems enironment
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Slide 3-4.24
Elliott, Global Business Information Technology © Pearson Education Limited 2005
+he installation o a computer'%ased inormation s"stems has ena%led Daile"2s restaurant in
to streamline their operations and promote tighter internal controls oer their %usiness4
3 !aiter takes an order at a ta%le and then enters it online ia one o the si terminals locate
+he order is routed to a printer in the appropriate preparation area:
the cold item'printer i it is a salad, the hot'item printer i it is a hot sand!ich* or a %ar'print
3 customer2s meal check listing the items ordered and the respectie prices is automaticall" g
+his ordering s"stem eliminates the old three'car%on cop" guest check s"stem as !ell as an"
the !aiter2s hand!riting4 5hen the kitchen runs out o a ood item, the cook sends an out o
!hich !ill %e displa"ed on the dining room terminal !hen !aiters tr" to order that item4
+his gies the !aiter aster eed%ack, ena%ling them to gie %etter serice to the customers4
Other s"stem eatures aid management in the planning and control o their restaurant %usine
+he s"stem proides up'to'the minute inormation on the ood items ordered and %reaks out
sho!ing sales o each item ersus total sales4 +his helps management plan menus according t
+he s"stem also compares the !eekl" sales total ersus ood cost, allo!ing planning or tight
In addition, !heneer an order is oided, the reason or the oid is ke"ed in4
+his ma" help later in management decisions, especiall" i the oids are consistentl" related t
3cceptance o the s"stem %" the users is eceptionall" high since the !aiters and !aitressesthe selection and design process