Information Technology For Management 5th Edition

1
Chapter 2
Information Technologies Concepts and Management

• Information Technology For Management 5th Edition
• Turban, Leidner, McLean, Wetherbe
• Lecture Slides by A. Lekacos,
• Stony Brook University (modified by G. Green)

2
Learning Objectives

• Classifications of information systems by
• (3) organizational levels
• (4) managerial levels
• (5) functional areas
• (7) types of support
• IT architecture vs. IT infrastructure
• Roles of the ISD

3
Ways of Classifying ISs

• Organizational levels
• Departmental
• Enterprise-wide
• Inter-organizational
• Departmental Functional areas
• Accounting
• Finance
• POM
• Marketing
• HR
• Managerial levels
• Operational
• Knowledge
• Management
• Strategic
• Types of support
• TPS
• OAS
• KMS

4
Information System Classification by
Organizational Level
An information system (IS) can span departments,
business units and corporations.

• Departmental IS
• Enterprise-Wide IS
• ch. 7
• Inter-Organizational IS
• ch. 4

Information systems are usually connected by
means of electronic networks
5
Information System Classification by Departmental
Function
An information system (IS) can support each
departmental function within a corporation.
e.g., Point-of-Sale (POS)

• Operations/Production
• Accounting
• Finance
• Marketing/Sales
• Human resources

6
Information System Classification by Managerial
Level
Strategic Level
Management Level
Knowledge Level
Operational Level
7
Information System Classificationby Type of
Support

• OAS
• KWS
• ISS
• TPS
• MIS
• DSS
• ESS

8
Information System Classificationby Type of
Support, cont

• Office Automation Systems (OAS)
• Support processing/communicating of info
• Objective
• Increase productivity of office workers
• Examples
• Word processing
• Spreadsheets
• Email

9
Information System Classificationby Type of
Support, cont

• Knowledge Work Systems (KWS)
• Supports creation/integration of knowledge
• Objective
• Increase productivity of knowledge workers
• Examples
• CAD/CAM
• CASE tools

10
Information System Classificationby Type of
Support, cont
11
Information System Classificationby Type of
Support, cont

• Intelligent Support Systems (ISS)
• Perform intelligent problem-solving
• Objectives
• More effective decision-making
• Retain knowledge capital
• Examples
• AI systems
• Expert systems

12
Information System Classificationby Type of
Support, cont

• ISS Characteristics
• Data source internal, knowledge capital
• Interactive
• Based on formal models
• ISS makes decision

13
Information System Classificationby Type of
Support, cont

• Transaction Processing Systems (TPS)
• Perform record daily routine transactions of
  the business
• Objectives
• To collect provide all data required by
  organizational policies or by law to keep the
  business running properly efficiently
• Provides timely reports
• Provides data for tactical and strategic systems
• Examples
• processing sales orders from customers
• processing bank deposits and withdrawals
• making reservations

14
Information System Classificationby Type of
Support, cont

• TPS Characteristics
• Data source internal
• Large amounts of detailed data
• Fast processing speed required
• Relatively low computational complexity
• High degree of data accuracy, security, and
  integrity
• High degree of reliability
• If these systems are down, business could come to
  a halt

TPS
Order Processing System
Materials Resource Planning System
General Ledger System
15
Information System Classificationby Type of
Support, cont

• Management Information Systems (MIS)
• Summarizes operational performance of co.
• Objectives
• Improve monitoring of efficiency, effectiveness,
  and productivity
• Support structured decision-making of tactical
  and mid-level managers
• Examples
• Statistical summary of sales
• Budget analysis

16
Information System Classificationby Type of
Support, cont

• MIS Characteristics
• Data source internal, TPS
• Routine, structured decision-making
• Little analytical ability
• Decision-maker makes decision
• Fixed, pre-defined, report-oriented format

MIS
MIS
REPORTS
MANAGERS
MIS FILES
17
Information System Classificationby Type of
Support, cont

• Decision Support Systems (DSS)
• Support for complex, non-routine decisions
• Objective
• Improve semi-structured decision-making for
  tactical and mid-level managers
• Example
• Pricing impact analysis

18
Information System Classificationby Type of
Support, cont

• DSS Characteristics
• Data source internal and external
• Interactive
• Based on formal models
• Decision-maker makes decision
• Some DSS methodologies
• Mathematical Modeling
• Simulation
• What-If
• OLAP/Data Warehousing
• Data Mining

19
Information System Classificationby Type of
Support, cont

• Executive Support Systems (ESS)
• Support decision-making activities of senior
  management
• Objectives
• Support unstructured, strategic decision-making
• Example
• Trend analysis for new product development

20
Information System Classificationby Type of
Support, cont

• ESS Characteristics
• Heavy use of graphics
• Heavy use of external data
• May combine technologies

21
IS Classifications Combined
Strategic level
Management level
Knowledge level
Operational level
22
IS Classifications Combined
ESS
Strategic level
MIS DSS
Management level
KWS OAS
Knowledge level
ISS
Operational level
TPS
23
IS Classifications Combined
ESS
Strategic level
MIS DSS
Management level
KWS OAS
Knowledge level
ISS
Production/Operations
Human Resources
Sales/Marketing
Accounting
Finance
Operational level
TPS
24
Examples

• Sales Marketing
• Identifying customers, creating customer
  awareness, selling, and providing ongoing
  customer support

25
Classify ISsTo which management level,
functional area, and IS type do the following
belong?
26
Classify ISsTo which management level,
functional area, and IS type do the following
belong?

• Web manager oversees the online
• order-processing software for the e-business
• Management level
• Functional area
• IS type
• 2. Sr. manager uses business analytics software
• to forecast sales trends
• Management level
• Functional area
• IS type

27
IT Infrastructure

• Facilities, services, and management that support
  shared computing in organizations
• "What assets are available"
• 5 components
• Hardware
• Software
• Networks
• Databases
• Personnel
• Subset of IT Architecture

28
IT Architecture

• High-level plan of an organizations information
  assets
• "How assets are arranged"
• Ensures IT can support organization's needs
• Types
• Mainframe
• Legacy systems
• PC/LAN
• Distributed Computing
• Client/Server
• Web-based IS
• Peer-to-Peer
• Enterprise-wide Computing

29
Client-Server LAN
Clients access shared network services. Servers
provides services to clients (ex. database,
communication)
30
Peer-to-Peer Architecture

• Unique instance of client-server
• Direct connection to other hard drives
• No central server needed
• Share files or processing
• power

31
Managing IS Resources

• Information Systems Department (ISD)
• Head is CIO reports to CEO
• One or more units, such as
• IT Architecture
• IT Security
• IS Development
• Systems/Network Support
• Responsibilities include
• Managing systems development projects
• IS security and integrity
• Technology innovations
• Training
• See table 2.4 for others

32
IS in organizationsPutting it all together
33
Summary

• What scope of the organization do ISs support?
• What levels of the organization do ISs support?
• What functional areas of the organization do ISs
  support?
• Describe the types of ISs that support the areas
  above.
• What is an IT architecture vs. an IT
  infrastructure?
• Describe the different types of IT architectures.
• Describe the different roles, groups, activities
  involved in managing ISs in organizations.