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2
WHAT DO MANAGERS DO?
They make decisions
Better decisions = better managers
The amount of information people must understand to make decisions, solve problems, and find opportunities is growing exponentially
Fire your Customer
3
PROGRAMMED VERSUS NONPROGRAMMED DECISIONS
Programmed decisions Decisions made using a rule, procedure, or quantitative method Easy to computerize using traditional information systems
Non-programmed decisions Decision that deals with unusual or exceptional situations Not easily quantifiable
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TYPES OF DECISIONS
• Structured– How many workers to staff
line A– What is the EOQ for raw
material Z– How many turbines to power
Lethbridge?
• Unstructured– What are the benefits of
merging with XYZ – How will consumer react if
we lower the price by 10%– What are the benefits of
MacDonald's opening up Hotels
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SYSTEM DESCRIPTION: TRANSACTION PROCESSING SYSTEMS
TPSs are designed to process business events and transactions
Architecture Components• Source Documents• Data Entry Methods
• Manual – • Semiautomated –(e.g. a barcode scanner)• Fully Automated – (e.g. automatic orders from inventory
systems)
• Processing• Online• Batch –
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SYSTEM DESCRIPTION: MANAGEMENT INFORMATION SYSTEMS
MISs are used by managerial employees to support recurring decision making in managing a function or the entire business
Supported Activities• Scheduled Reporting - produced automatically based on a
predetermined schedule. Some include:• Key Indicator – e.g. Monthly Sales Report• Exception – e.g. Monthly Late Shipments• Drill Down – printed only if needed
• Ad Hoc Reporting – unscheduled reports (e.g. sales data by person report to identify issues)
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SYSTEM DESCRIPTION: EXECUTIVE INFORMATION SYSTEMS
EISs, also called Executive Support Systems (ESS), information systems to support executive decision-making
System Detailsuse graphical user interfaces to display consolidated information :
• Soft Data -• Hard Data –
Supported Activities• Executive Decision Making• Long-range Strategic Planning• Monitoring of Internal and External Events• Crisis Management• Staffing and Labour Relations
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DECISION SUPPORT SYSTEMS
Decision Support Systemssystems designed to support managerial-level employees in organizational decision making
System Details use computational software to construct models for analysis (most common is MS Excel) to solve semi-structured problems (e.g. sales or resource forecasts)
Supported Activities: “What-if” analysis – changing one or more variables in the model to observe the effect (e.g. What is the payment if the interest rate increases by 1% ?)
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EXPERT SYSTEMS
Expert Systemsused by operational level employees to make decisions usually made by more experienced employees or an expert in the field
System Details use inference engines that match facts and rules, sequence questions for the user, draw a conclusion, and present a recommendation to the user
Supported Activities:These systems support many activities, including:
• Medical Diagnosis• Machine Configuration• Financial Planning• Software Application Assistance (help wizards)
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OFFICE AUTOMATION SYSTEMS
Office Automation Systemsincrease productivity within the office setting
Supported Activities• Scheduling Resources
Examples: electronic calendars• Document Preparation
Examples: software (word processing and desktop publishing); hardware (printers)
• CommunicatingExamples: e-mail, voice mail, videoconferencing and groupware
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COLLABORATIVE TECHS (GROUPWARE)
Groupwareenables people to work together more effectively
Supported Activities
These systems come in two types:• Asynchronous Groupware – Systems that do not require
users to be on the system working at the same time, including: e-mail, newsgroups, workflow automation, group calendars, and collaborative writing tools
• Synchronous Groupware – Systems that allow and support simultaneous group interactions including shared whiteboards, electronic meeting support systems, video communication systems
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SYSTEM DESCRIPTION: FUNCTIONAL AREA INFO SYSTEMS
Functional Area Information SystemsCross-organizational information systems are designed to support a specific functional area
Supported ActivitiesThe following functional organizations have systems to support their operational and managerial activities
• Accounting• Finance• Human Resources• Marketing • Operations Peppers &
Rogers
Workforce absenteeism
daytraders
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GLOBAL INFORMATION SYSTEMS
Global Information SystemsA variety of special-class systems used to support organizations that operate globally
Supported ActivitiesDepending on the organization, one or more of these systems may be required (definitions on next slide):
• International Accounting Systems• Transnational Information Systems• Multinational Information Systems• Global Information Systems• Collaborative Information Systems