Managing Information Systems

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Managing Information Systems
Information Systems in Organisations Part 1 Dr.
Stephania Loizidou Himona ACSC 345
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Objectives

• To understand the role of IS within organisations
• To understand the diversity of types of IS within
  a business / organisation
• To understand relationships between IS and
  business functions

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Topics

• Types of Information System in Organisations
• By organisational level
• By function within organisational level
• Examples in functional areas

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IS at the Organisational Level
KIND OF SYSTEM GROUPS
SERVED
STRATEGIC LEVEL
SENIOR MANAGERS
MANAGEMENT LEVEL
MIDDLE MANAGERS
KNOWLEDGE LEVEL
KNOWLEDGE



DATA WORKERS
OPERATIONAL

OPERATIONAL LEVEL

MANAGERS
SALES MANUFACTURING FINANCE ACCOUNTING
HUMAN
RESOURCES
MARKETING
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IS at the Organisational Level

• Operational-level
• Elementary activities and routine transactions
• Data current and accurate
• Knowledge-level
• Support knowledge and data workers
• Integrate new knowledge into the business
• Office automation

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IS at the Organisational Level

• Management-level
• Periodic monitoring, control, decision-making and
  administration
• Is the business working well?
• Strategic-level
• Long-term (e.g. 5 year) planning and strategy
• Internal and external information

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Examples

• What examples can you think of at the different
  organisational levels?

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Types of IS

• Transaction Processing Systems (TPS)
• Knowledge Work Systems (KWS)
• Office Automation Systems (OAS)
• Management Information Systems (MIS)
• Decision-support Systems (DSS)
• Executive Support Systems (ESS)

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Transaction Processing Systems
Systems that perform and record daily routine
transactions necessary for business
Operational-level Systems Operational-level Systems Operational-level Systems Operational-level Systems Operational-level Systems
Order tracking Machine control Securities trading Payroll Compensation
Order processing Plant scheduling Cash management Accounts payable Training and development
Material movement and control Accounts receivable Employee records
Sales and Marketing Manufacturing Finance Accounting Human Resources
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Knowledge Work Systems
Systems that aid the creation and integration of
new knowledge into an organisation
Knowledge-level Systems Knowledge-level Systems Knowledge-level Systems Knowledge-level Systems Knowledge-level Systems
Engineering workstations Engineering workstations Graphics workstations Managerial workstations Managerial workstations

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Office Automation Systems
Systems that are designed to increase the
productivity of data workers
Knowledge-level Systems Knowledge-level Systems Knowledge-level Systems Knowledge-level Systems Knowledge-level Systems
Word processing Word processing Document imaging E-mail / electronic calendars E-mail / electronic calendars

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Management Information Systems
Systems that serve planning, control and
decision-making through routine summary and
reports
Management-level Systems Management-level Systems Management-level Systems Management-level Systems Management-level Systems
Sales management Inventory control Annual budgeting Capital investment Relocation analysis
Sales and Marketing Manufacturing Finance Accounting Human Resources
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Decision-support Systems
Systems that combine data, models and analysis
tools for non-routine decision-making
Management-level Systems Management-level Systems Management-level Systems Management-level Systems Management-level Systems
Sales region analysis Production scheduling Cost analysis Pricing / profitability analysis Contract cost analysis
Sales and Marketing Manufacturing Finance Accounting Human Resources
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Executive Support Systems
Systems that support non-routine decision-making
through advanced graphics and communications
Strategic-level Systems Strategic-level Systems Strategic-level Systems Strategic-level Systems Strategic-level Systems
5-year sales trend forecasting 5-year operating plan 5-year budget forecasting Profit planning Personnel planning
Sales and Marketing Manufacturing Finance Accounting Human Resources
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Interrelationships

• TPS major producer of data
• External data also required for MIS, DSS and ESS
• Typical loose coupling of systems
• Digital firms have tighter integration

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Functional Examples

• Examples of IS by function
• Sales and marketing
• Manufacturing and production
• Finance and accounting
• Human resources

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Sales and Marketing
System Description Organisational Level
Order processing Enter, process and track orders Operational
Market analysis Identify customers and markets Knowledge
Pricing analysis Determine prices Management
Sales trends Prepare 5 year forecasts Strategic
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Manufacturing and Production
System Description Organisational Level
Machine control Control actions of equipment Operational
Computer-aided design (CAD) Design new products Knowledge
Production planning Decide number and schedule of products Management
Facilities location Decide where to locate facilities Strategic
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Finance and Accounting
System Description Organisational Level
Accounts receivable Track money owed to firm Operational
Portfolio analysis Design firms investments Knowledge
Budgeting Prepare short-term budgets Management
Profit planning Plan long-term profits Strategic
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Human Resources
System Description Organisational Level
Training and development Track training, skills and appraisals Operational
Career paths Design employee career paths Knowledge
Compensation analysis Monitor wages, salaries and benefits Management
Human resources planning Plan long-term workforce needs Strategic
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Summary

• Looked at the role of IS within organisations
• At organisational levels
• Looked at the diversity of types of IS within a
  business / organisation
• Six different functional types of IS
• Looked at relationships between IS and business
  functions
• Examples by functional area