Computers In History

The Business OrganizationRey B. Beria1Rey B. BeriaThe Business OrganizationIn large or medium organizations, computerized information systems do not keep just track of transactions and day-to-day business operations, they also support the flow of information within the organization. This information flows both vertically and horizontally. To understand this, we need to understand how an organization is structured. That is, we can study the different basic functional areas in organization and the different types of people within these functional areas. Functions:Depending on the services or products they provide, most organizations have departments that specialize in one of five basic functions:Rey B. BeriaThe Functional Perspective of BusinessManagement Hierarchy Rey B. Beria4Line ManagerResponsible for operational matters. Manage and monitor the employees or workers those who actually produce the goods and services. They monitor day-to-day events and immediately take corrective action if necessary.Middle ManagementResponsible for tactical planning. Deals with control planning and decision making. They implement the long term goals of the organization.Top ManagementResponsible for long-range planning ( also called strategic planning).They need information that will help them to plan the future growth and direction of the organization.

Rey B. BeriaManagerial LevelsInformation Flow within the Organization Rey B. BeriaUnstructured - formless6Top managerial-level information flow is vertical, horizontal and external. The vice-presidents of different departments communicates vertically(with regional managers), horizontally (with other vice-presidents) and externally to obtain data to forecast.Middle managerial-level information flow is vertical and horizontal. Regional sales manager communicates vertically(with district sales managers and the vice presidents of the department) and horizontally with other middle managers.Line managerial-level information flow is primarily vertical. They monitor workers activities to ensure smooth production. They provide daily status reports to middle departments managers.Rey B. BeriaInformation FlowInformation Flow within the OrganizationRey B. BeriaVolume of InformationType of InformationLow CondensedUnstructuredStrategic Long range planningMediumModeratelyProcessedModeratelyStructuredTacticalShort range improvementLargeDetailedReports

HighlyStructuredOperationalDay to daypoliciesUnstructured - formless8Rey B. BeriaWhy do we need information system in the business?Rey B. BeriaInformation System is needed when timely processing for fast action is needed, same data has to be processed in different ways and when organization require innovative processing. Rey B. BeriaTypes of Business Information System Transaction Process System (TPS) Management Information System (MIS) Decision Support System (DSS) Executive SupportSystem(ESS)Office Automation and Work Group System Centralized Systems Distributed Systems

Client Server Systems Network Computing System

In practice, there are several classes of information system applications. Each class correspond to different needs of different types of users.Lets look at the different types of Information systems available.Transaction Process System (TPS) Management Information System (MIS) Decision Support System (DSS) Expert System (ES) Office Automation and Work Group System Centralized Systems Distributed Systems Client Server Systems Network Computing System

11Records day to day transactions, such as customer orders, bills, inventories, and production output.The TPS helps the supervisors by generating databases that acts as foundation of the other information system.

Rey B. BeriaTransaction Processing System (TPS)- Information systems that capture and process data about business transactionsTransaction---------------------------------------------InformationCapture DataProcessTPS are information system applications that capture and process data about business transactionsTPS can either - respond to business transactions such as orders, time cards etc. - initiate transactions such as invoices. paychecks etc.Here are some Examples of Transaction processing systems Airline systems etc. - or possibly both

12Examples:

Rey B. BeriaTPS

Airline Reservations

Retail point of sale

Bank deposit and withdrawal Summarizes the detailed data of the transaction processing system in standard report for middle managers. Such report might include weekly sales and production schedules.MIS is an information system application that provides for management oriented reporting.

Rey B. BeriaManagement Information System (MIS)Inventory reporting

Production scheduling

Sales forecast

MIS is an information system application that provides for management oriented reporting. Those reports are usually generated on -predefined schedule and -appear in a prearranged format.Eg. Production scheduling , inventory reporting, sales forecasting, financial reporting

14Rey B. BeriaMIS

MISProduces Management Information is normally produced from a shared database that stores data from many sourcesincluding Transaction Processing Systems. MIS can present Detailed information , summary information, and exception information such as filtered information.

15Provides a flexible tool for analysis. The DSS helps middle-level managers and others in the organization to analyze a wide range of problems, such as the effect of events and trends outside the organization.Like the MIS, DSS draws on the detailed data of the TPS.Provides its user with decision-oriented information whenever decision making situation arisesRey B. BeriaDecision Support System (DSS)DSS is an information system application that provides its user with decision-oriented information whenever decision making situation arises. When apply to executive managers, these systems are sometimes called executive information system.In general DSS provides one or more of the following types of support to the decision maker.Identification of problems or decision making opportunities. Identification of possible solutions and decisions Access to information needed to solve a problem or make a decision Analysis of possible decision that will affect the decision (sometimes called what if analysis Simulation of possible solutions and their likely results.

16Rey B. BeriaDSS

Executes at workWith DSSTypes of Support Identification of problems or decision making opportunitiesIdentification of possible solutions and decisions Access to information needed to solve a problem or make a decision Analysis of possible decision that will affect the decision Simulation of possible solutions and their likely results. Rey B. BeriaExecutive Support System (ESS)also known as Executive Information System (EIS). an easy-to-use system that presents the information in a very highly summarized form. It helps top-level managers oversee the companys operations and develop strategic plans. The EDD combines the internal data from TPS and MIS with external data. Office Automation System (OAS)designed primarily to support data workers. These systems focus on managing documents (word processor), communicating (video conferencing) and scheduling (Microsoft projects).Support wide range of business office activitiesProvide facilities for improved work flow and communication between workersWorkers may not be located in the same office.

Rey B. BeriaOther Information System19Rey B. BeriaOAS

facsimileE-MailImaging Electronic document Work group computing Work group schedulingOffice Automation SystemsSystems that support wide range of business office activities.These activities provide for improved work flow and communication between workersThese workers may or may not be located in the same office.Office Automation Functions include Word Processing, e-mail, work group computing work group scheduling, facsimile processing.etc.

20Rey B. BeriaOffice Automation SystemsDesigned to support --- Individuals --- Workgroups

Personal Information Systems - for a single userWork group Information Systems - for a work groupused to create information in their areas of expertise.KWS consists of powerful microcomputers running special programs that integrate the design and manufacturing activities.Example:Engineers involved in product design and manufacturing use computer aided design / computer-aided manufacturing (CAD/CAM). CAD/CAM is widely used in the manufacture of automobiles and other products.Rey B. BeriaKnowledge Work System (KWS)Rey B. BeriaCentralized Systems

I have all system dataI am doing all processingProvide interfaces DatabasesIn centralized systems, a central, multi-user computer (usually a mainframe) hosts all the Data, Process, and Interface components of an information system. The user interact with this host computer via terminals or PC emulating a terminal.But virtually all of the actual processing and work is done on the host computer.

23Rey B. BeriaDistributed Systems-- Components of an information system -- Processing workload required to support the componentsDistributedto multiple locationsClient Server Systems Solutions are distributed between client PCs and one or more servers.

Data, Process, and Interface components of an information system are distributed to multiple location in a computer network. Accordingly the processing work load required to support these components is also distributed across multiple computers on the network. One example for a distributed system is a client server system. It is a solution in which the presentation, presentation logic, application logic, data manipulation, and actual stored data are distributed between client PCs and one more servers.

24Rey B. BeriaNetwork Computing SystemsPresentation logic layers are implemented in a client side web browser The presentation logic layer then connects to the application logic layer that run on an application server,Subsequently connects to the database server/s

Is a solution in which the presentation and presentation logic layers are implemented in client side web browser using content downloaded from a web server. The presentation logic layer then connects to the application logic layer that run on an application server, which subsequently connects to the database server/s on the back side.

25Four Kinds of Information SystemRey B. BeriaDecision Support System (DSS) use data from TPS and set of flexible analytical tools to support middle managers. (Example: Regional sales manager use the DSS to evaluate the impact of promotion campaign on regional sales and corporate profit.Management Information System (MIS) use data from TPS to support middle-level managers. (Example: Regional sales managers use their MIS reports to monitor weekly divisional sales and to compare actual sales to established sales goals Transaction Processing System (TPS) record day-to-day transactions to support middle managers. (Example: Production supervisors use their TPS to record and to monitor current inventory levels and production line output.Unstructured - formless26Building and supporting computer systems is a complex work and can require the skills of many different professionals.IS department may not employ individuals in all these different roles. Companies often hire other companies or individual to provide specialized skills. Outsourcing - pertains to freelance workers or outside companies are hired as contractors to do specific jobs.

Rey B. BeriaRole of an IS Departments Members IS Managers in IS department often is led by a chief information officer (CIO), typically have a broad background in IS technology, networking, and computer systems.Computer Scientist study the theory of computers by undertaking research, developing new computer designs, and attempting to achieve the next technological leap in the industry. Takes on projects such as designing hardware or developing new programming languages.Technical Analysts (also called System Analyst) look for solutions when an information systems needs to be updated, modified or revamp.

Rey B. BeriaRole of an IS Departments Membersrevamp - restore - overhaul28System Programmers create computer programs, either as commercial products or as part of a companys information system. Sometimes modify existing programs, consult an application design, or provide post-development support. Technical Writer and Online Help authors organize and create the instructional manual called documentation that will teach users how to operate various pieces of the information system. Many technical writers have shifted their skills from producing printed documentation to creating content for online help systems. Some organizations however, use Online Help Authors develop these complex systems of tutorials and instructional information.

Rey B. BeriaRole of an IS Departments Membersrevamp - restore - overhaul29 Procurement Specialist Hardware or software procurement specialist also known as purchasing agents, choose suppliers for system components and negotiate the terms for purchasing or leasing those items. Security Administrators specialist who are charged with ensuring the systems security. A security administrator may oversee the design, installation and maintenance of the organizations firewall. Trainers prepare users to accept a new information system through classes and one-one teaching sessions; trainers give users the opportunity to explore the new system, ask questions, and practice common task.

Rey B. BeriaRole of an IS Departments Members30System or Network Administrators - keep an information systems up and running. E-commerce Specialist are primarily concerned with e-commerce strategy and planning as well building the necessary administrative infrastructure. Hardware Maintenance Technicians maintain the hardware components of an information system.Web Support Specialist often called Webmasters, supports a companys Internet and internet operations. Web Support involves design and construction of web pages, monitoring traffic, managing hardware and software, and linking Web-based applications to the companys information system.

Rey B. BeriaRole of an IS Departments Members31Information System Department is responsible for providing technical resources and generating the information that the business needs to run effectively and efficiently.

A well structured IS department also understands the mission of the organization and works that mission in the most direct manner possible. IS departments are no longer isolated from the rest of the company and they becoming increasingly integrated in the day-to-day operations of organizations of organizations.

Rey B. BeriaRole of an Information System Department32System design and planning. The IS Team considers current and future information needs, ways the system can support the organizations basic mission, and ways the system can be used to benefit workers.Information Generation. To ensure that workers and managers get the exact information they need (and can input information easily), the IS team carefully plans and develops the types of forms and reports that must be generated from the system.Custom Reporting. The IS staff maybe called on to create unique, highly customized reports from the data in the companys transaction processing system.

Rey B. BeriaRole of an IS Departmentrevamp - restore - overhaul33Hardware and Software Installation and Maintenance. This part of the job includes installing and upgrading, troubleshooting, fixing problems, and even training workers in the use of their computerized system.Cost Control. In most companies, IS department is considered a cost center that is, a portion of the business that costs money to run but generates little or no direct revenues. IS department plays an important role in an organizations financial picture by providing essential information top the management, assisting in important decisions, and ensuring that the systems runs as efficiently as possible.

Rey B. BeriaRole of an IS Departmentrevamp - restore - overhaul34 Help desk support. Many IS department operate a help desk, a team of technical experts that helps the companys workers solve problems with or master the use of the information system.

Rey B. BeriaRole of an IS Departmentrevamp - restore - overhaul35