IT Applications Theory Slideshows

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IT Applications Theory Slideshows
Systems in organisations

• By Mark Kelly
• McKinnon Secondary College
• Vceit.com

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Remember this management hierarchy?
STRATEGIC
STRATEGIC
TACTICAL
OPERATIONAL
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You dont?

• Look at the Organisational Decisions slideshow
  before starting this one!

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Orders flow down the hierarchy
STRATEGIC
STRATEGIC
TACTICAL
OPERATIONAL
Non-management workers
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Decisions need data

• Good decisions cant be made in a vacuum
• Managers need to know whats happening in the
  organisation
• Data need to flow upward to inform managerial
  decisions

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BTW

• Data is plural
• Datum is singular.
• The data are
• The datum is
• The data flow not The data flows
• Similar to The elephants is

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Data flow up the hierarchy
STRATEGIC
STRATEGIC
TACTICAL
OPERATIONAL
Non-management workers
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Different needs

• Different levels of decision-making need
  different amounts and types of data and
  information.

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Information Needs

• The General Manager of Safeway Australia does not
  want to know how many unsold cooked chickens are
  left at the end of each day in each store. A
  store manager does.

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Information Needs

• The manager of the Manangatang Safeway does not
  want to know the average sales of roast chickens
  across the country for the previous 6 months. The
  general manager does.

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Types of information systems

• Different information systems are used at
  different levels of management, depending on
  their needs.

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Reminder

• A system consists of
• Equipment (hardware and software)
• People
• Procedures
• Data

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Different information needs
Need information that is highly summarised,
sorted, categorised
STRATEGIC
STRATEGIC
Need more detail than strategic level.
TACTICAL
Need lots of detail.
OPERATIONAL
Non-management workers
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Different information systems
STRATEGIC
TACTICAL
Transaction Processing System (TPS)
OPERATIONAL
Non-management workers
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Different information systems
STRATEGIC
Management Information System (MIS) and Decision
Support System (DSS)
TACTICAL
Transaction Processing System (TPS)
OPERATIONAL
Non-management workers
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Different information systems
Executive Information System (EIS)
STRATEGIC
Management Information System (MIS) and Decision
Support System (DSS)
TACTICAL
Transaction Processing System (TPS)
OPERATIONAL
Non-management workers
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TPS

• Transaction Processing System
• Used by non-management staff
• e.g. electronic cash register, POS
  (point-of-sale) terminal
• It Processes Transactions! (derrr!)

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TPS in action

• Cheryl buys a tube of toothpaste at the
  Manangatang Safeway.
• Kylie, checkout operative, scans the toothpastes
  bar code with a bar code reader.

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TPS in action

• Cheryl buys a tube of toothpaste at the
  Manangatang Safeway.
• Kylie, checkout operative, scans the toothpastes
  bar code with a bar code reader.

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TPS in action

• The TPS looks up the barcode in the inventory and
  fetches the items cost and whether it attracts
  GST.
• It adds the cost of the toothpaste to the
  shoppers total bill.
• It calculates GST, if applicable.
• It determines discounts, if applicable
• (e.g. buy 2, get 10 off)

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TPS in action

• The TPS looks up the barcode in the inventory and
  fetches the items cost and whether it attracts
  GST.
• It adds the cost of the toothpaste to the
  shoppers total bill.
• It calculates GST, if applicable.
• It determines discounts, if applicable
• (e.g. buy 2, get 10 off)

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TPS in action

• The TPS prints the docket for the customer.
• It notifies the stores inventory system that the
  tube of toothpaste has been sold.
• The inventory system may re-order more toothpaste
  if stocks get below the re-order level.
• The TPS stores the details of the transaction in
  a database.

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Different information systems
EIS
STRATEGIC
Management Information System (MIS) and Decision
Support System (DSS)
TACTICAL
TPS
OPERATIONAL
Non-management workers
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MIS

• The data from the TPS is used by the tactical
  managers in their Management Information Systems.
• The TPS data is summarised, sorted, categorised
  generally processed to let the managers see
  the big picture related to sales.

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BTW

• Data are raw, unprocessed, separate facts and
  figures. They have potential value, but are not
  of much direct use to anyone. Think of raw corn
  hard, inedible, tasteless.

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BTW

• Information comes from processing data, e.g.
  averaging, totalling, categorising into groups
  (e.g. cosmetics, fresh fruit, hardware),
  converting (e.g. from numbers to graphs).
• Information makes data useful to humans.

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• Think of it this way
• raw corn (data) is
• steamed, rolled, toasted (processed) to make
• cornflakes (information)

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DSS

• Decision Support System
• Helps middle-managers make tactical decisions by
  letting them
• Play What if gamese.g. using a spreadsheet as
  a DSS to change a value (e.g. profit margin) and
  see what happens to a related value (e.g. sales)
• Do modelling

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DSS

• Helps middle-managers make tactical decisions by
  letting them
• Do modellingCreating an artificial computerised
  model of the real world so they can simulate
  actions that are slow, impractical, expensive,
  dangerous. (e.g. nuclear explosions,
  test-crashing cars, reducing government interest
  rates)

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DSS

• Helps middle-managers make tactical decisions by
  letting them
• Do forecastingPredicting future events based on
  current trends.

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MIS Example

• Clint, purchasing officer, needs to see whether
  peppermint or spearmint toothpaste is selling
  better.
• The MIS can produce total sales of both flavour
  toothpastes over the past 6 weeks in each state.
• Spearmint is especially popular in Victoria, so
  Clint increases spearmint toothpaste deliveries
  by 5.
• What a clever Clint.

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Different information systems
Executive Information System (EIS)
STRATEGIC
(MIS) (DSS)
TACTICAL
(TPS)
OPERATIONAL
Non-management workers
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Strategic information needs

• Top-level managers would be unable to cope with
  massive amounts of raw data coming from thousands
  of transactions.
• Need summarised information to better see trends
  and overall shapes.

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EIS

• Executive Information System
• More powerful leather-bound version of MIS
• Lets top managers zoom out to see the whole
  organisation, or drill down to see interesting
  details from specific regions, times, stores etc.
• Expensive to maintain.

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Other types of information systemsused in
organisations

• Office Automation System - Automates manual
  processes

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Other types of information systems used in
organisations

• Expert system compiles the knowledge of expert
  humans to let non-experts make expert decisions.
• Useful when real experts cant be found.
• Diagnose diseases, identify rocks, trouble-shoot
  faults in complex systems
• Uses simple question answer format to narrow
  down possibilities.

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IT APPLICATIONS SLIDESHOWS

• By Mark Kelly
• McKinnon Secondary College
• vceit.com

These slideshows may be freely used, modified or
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the planet (but not elsewhere). They may NOT be
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