MTAT.03.139 Information Systems Lecture 8: Information Systems

Types

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Lecture 13

Truban and Volonino (2010), Information Technology for Management: Transforming Organizations in the Digital Economy. The 7th International student edition, John Wiley & Sons, Inc.

Recall

•  Information system (IS) –  A system for dissemination of data between persons –

potentially, to increase their knowledge

•  Organisational information system –  An IS for the dissemination of data within organisation

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Computerised Information System

•  Computerised information system –  An IS which is based on the use of computers for

dissemination of data Information

System

Hardware

Software Data, Information

Procedures

User interface

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Computerised Information System

•  Computerised information system –  An IS which is based on the use of computers for

dissemination of data Information

System

Hardware

Software Data, Information

Procedures

User interface

Support organisational activities

top$management$

middle$management$

lower$management$

support$

Levels$of$authority$•  Top management

–  establishes goals –  does long-range planning –  determines new market & product

developments –  decides on mergers & acquisitions.

•  Middle management –  sets objectives –  allocates & controls resources –  does planning –  measures performance

•  Lower management –  supervises day-to-day operations –  takes corrective action when necessary.

•  Operational level –  performs day-to-day operations 186

Type of Support

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Systems' Employees'supported'

Descrip2on''

Management'informa2on'systems'

Middle$managers$ Rou8ne$informa8on$for$$• $planning,$organising,$and$controlling$opera8ons$

Communica2on'and'collabora2on'systems'

All$employees$ Enables$to$interact$and$work$together$

Document'management'systems'

Office$workers$ Automates$flow$of$electronic$documents$

Decision'support'systems'

Decision$makers,$$managers$

Combines$models$and$data$to$solve$semistructured$problems$with$extensive$user$involvement$

Group'support'systems' People$working$in$groups$

Supports$$• $working$processes$of$people$groups$in$different$loca8ons$

Expert'systems' Knowledge$workers,$nonIexperts$

Provides$stored$$• $knowledge$and$decision$recommenda8ons$$

Knowledge'management'systems'

Managers,$knowledge$workers$

Supports$• $gathering,$organising$and$use$of$an$organisa8on’s$knowledge$

Organisational activities •  Strategic activities

–  Deal with situations that might significantly change the manner in which business is done

•  Require elaborative research

–  Top management

•  Managerial activities –  Decisions, tactical activities

•  Short term planning, organising, control –  Middle and lower management

•  Operational activities –  Data-to-day activities

•  Assign employees, record the number of hours, place a purchase order •  Short term in nature

–  Operational level •  Supervisors, operators, field employees, clerical employees 188

Information Systems classification

Very Large and

Special Systems

Global Systems

Interorganisational Systems

Enterprise Systems

Functional and Management IS

Transaction Processing Systems

Personal and Productivity Systems

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Information Systems classification

Very Large and

Special Systems

Global Systems

Interorganisational Systems

Enterprise Systems

Functional and Management IS

Transaction Processing Systems

Personal and Productivity Systems

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Personal Productivity System

•  Activities performed by individuals –  Acquisition, organisation, maintenance, retrieval, and

sharing of information

•  Example –  Personal digital assistant

•  Calendar, calculator, scheduler

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Information Systems classification

Very Large and

Special Systems

Global Systems

Interorganisational Systems

Enterprise Systems

Functional and Management IS

Transaction Processing Systems

Personal and Productivity Systems

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Transaction Processing System

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•  Transaction processing systems –  Periodic financial, accounting, purchase orders,

routine business activities

•  Examples

–  Point of sales (PoS) terminals

–  Payroll preparation

Major characteristics

•  Large amount of data processed •  The source of data is mostly internal, output is intended for also for

internal audience •  Information is processed on regular basis •  High processing speed is needed due to high volume •  Monitors and collects current and past data •  Input and output data are structured •  Low computational complexity •  A high level of accuracy, data integration and security is needed •  High reliability is required •  Inquiry processing capacity is a must

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Transaction Processing Systems versus Functional Areas

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Information Systems classification

Very Large and

Special Systems

Global Systems

Interorganisational Systems

Enterprise Systems

Functional and Management IS

Transaction Processing Systems

Personal and Productivity Systems

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Functional Information Systems

•  Support work of individual department in an organisation

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Marketing Finance Accounting

Human Resources Production Other

IT and Information Systems

Accounts Payment billing

Inventory

Reports Performance Records

Market Research

Advertisement Budget

information Investment

analysis

Budget Performance Reports

Training plans Labor Requirements

Quality Control plans

Labor scheduling Labor Performance

Managing Production/Operations and Logistics

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Managing Marketing Channel

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Managing Human Resource Systems

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Information Systems classification

Very Large and

Special Systems

Global Systems

Interorganisational Systems

Enterprise Systems

Functional and Management IS

Transaction Processing Systems

Personal and Productivity Systems

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Enterprise Information Systems •  Involve entire organisation or two or more departments of it

•  Examples –  Enterprise resource planning –  Customer relationship management –  Knowledge management

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Executive administrator Our supplier and our partners

Our customers

Finance Accounting

Marketing Other areas Production Human resources

Process A

Process B

Process C

Process D

Enterprise Resource Planning •  Integrate all departments and functional integration flows

across a company into a single computer system –  Optimise production schedules –  Raise

productivity –  Increase

customer satisfaction

–  Increase competitive advantage

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Recall

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Raw data Information New data

Knowledge

processing

processing processing

processing

processing

processing

Knowledge Management •  Create

–  People determine new ways of doing things

•  Capture –  Identified as valuable –  Represented in a

reasonable way

•  Refine –  Placed in the content

•  Store –  Stored in a reasonable

format

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•  Manage –  Must kept current –  Review that it is relevant

and accurate

•  Disseminate –  Be made available in a

useful format

Information Systems classification

Very Large and

Special Systems

Global Systems

Interorganisational Systems

Enterprise Systems

Functional and Management IS

Transaction Processing Systems

Personal and Productivity Systems

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Interorganisational systems •  IS that connect two or more organisations

–  Electronic funds transfer (money among financial institutions) –  Groupware –  Shared databases

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Corporate A

System

Corporate B

System

Corporate C

System

Electronic Market

Human Resources Accounting IS

Finance IS

Marketing IS

Production IS

Administrative IS

Information Systems classification

Very Large and

Special Systems

Global Systems

Interorganisational Systems

Enterprise Systems

Functional and Management IS

Transaction Processing Systems

Personal and Productivity Systems

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Other Information Systems

•  Global IS –  IS that connect companies in two or more

countries •  E-commerce systems •  Supplies overseas

•  Very Large and Special Systems –  Very large and global by nature

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Large-scale systems •  Governmental systems

–  National, state, country, and city systems

•  Military systems •  Large corporation systems •  State University systems •  Large not-for-profit organisations •  Airline reservation systems •  Financial institutions and banking systems •  Search engine-based systems •  Special systems

–  Dedicate to specific events 210

Benefits

•  Effective communication at the reasonable cost

•  Standardized procedures and common language

•  Effective collaboration to overcome differences in distance, time, language and culture

•  Access to databases of business partners and ability to work on the same projects while their members are in different locations

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Relationship between systems

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Transaction Processes

Internet and External

Information

Management IS

Data Warehouses

Enterprise Systems

Business Intelligence

Inter-organisational

systems

Internet, Other

Computer Systems

Non-computer systems

Exercise

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•  Study system at the University of Tartu •  Facebook •  Traffic control at the airport •  Decision support systems •  Portable agenda planner •  2012 London Olympic system

Different types of system has different functionality

•  How system helps to achieve goals of each stakeholder?

Consider the Information System as an actor!!!

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i* Strategic Dependency Model

http://istar.rwth-aachen.de/ 215

i* Strategic Rationale Model

What have we learnt?

•  Computerise Information system •  IS support human activities •  Information systems types

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