INFORMATION INFORMATION TECHNOLOGY SYSTEMSTECHNOLOGY SYSTEMSSupporting Information Supporting Information

ProcessingProcessing

Information Technology is a Part of Almost Every Organization

• Some IT systems simply process transactions• Some help managers make decisions• Some support the interorganizational flow of information• Some support team work

Introduction2-2

OUR FOCUS IN THIS CHAPTER

• Organizations and Their Structures• The Nature of Information in an Organization

(and Decentralized Computing)• IT systems in an Organization and the Tasks

They Perform

Introduction2-3

THE TRADITIONAL STRUCTURE OF AN

ORGANIZATION

An Organization

NONMANAGEMENT

STRATEGIC

TACTICAL

OPERATIONAL

MANAGEMENT

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THE TRADITIONAL STRUCTURE OF AN ORGANIZATION

1.STRATEGIC MGMT - provides an organization with overall direction and guidance.

2.TACTICAL MGMT - develops the goals and strategies outlined by strategic mgmt.

3.OPERATIONAL MGMT - manages and directs the day-to-day operations.

4.NONMANAGEMENT - those people who actually perform daily activities.

An Organization2-5

Organizations Also Have Depth...

An Organization

Within the pyramid, many organizations structure according to:

(1) Function (marketing, accounting, etc.)

(2) Product line

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When Considering Information, You Need to Understand...

• The concept of shared information through decentralized computing

• The directional flow of information• What information specifically describes• The information-processing tasks your

organization undertakes

Information2-7

SHARED INFORMATION AND DECENTRALIZED COMPUTING

Information

As late as the early 1980s, most organizations exhibited centralized computing and isolated information. That is...Large central mainframe computers that performed all tasks.Separate files of information for each application or system.So, computing power was centralized while information remained isolated.

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SHARED INFORMATION AND DECENTRALIZED COMPUTING

Information

During the early to mid 1980s, most organizations exhibited decentralized computing and isolated information. That is...Smaller, more powerful computers that were distributed to functional business areas.These computers still maintained separate files of information for each application.So, computing power was decentralized while information remained isolated.

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SHARED INFORMATION AND DECENTRALIZED COMPUTING

Information

Today, organizations have maintained their decentralized computing while bringing together all the organization’s information.This bringing together of information is accomplished by using databases.Databases support the concept of shared information.So, computing power is now decentralized and information is shared.

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HOW INFORMATION FLOWS• Upward Flow of Information - describes the current

state of the organization based on its daily transactions.

• Downward Flow of Information - consists of the strategies, goals, and directives that originate at one level and are passed to lower levels.

• Horizontal Flow of Information - between functional business units and work teams.

Information2-11

WHAT INFORMATION DESCRIBES

• INTERNAL INFORMATION - describes specific operational aspects of the organization.

• EXTERNAL INFORMATION - describes the environment surrounding the organization.

• OBJECTIVE INFORMATION - quantifiably describes something that is known.

• SUBJECTIVE INFORMATION - attempts to describe something that is currently unknown.

Information2-12

INFORMATION-PROCESSING TASKS

1.Capturing information - at its point of origin.2.Conveying information - in its most useful form.3.Creating information - to obtain new information.4.Cradling information - for use at a later time.5.Communicating information - to other people or another location.

Information2-13

TWO WAYS OF CREATING INFORMATION

1.TRANSACTION PROCESSING - the processing of transactions that occur within an organization.– Example: computing payroll and sales tax

2.ANALYTICAL PROCESSING - creating information to support your decision-making tasks.– Example: how to allocate Resources ?

Information2-14

THE SEVEN IT SYSTEMS IN AN ORGANIZATION

IT Systems

1.Transaction Processing Systems (TPS)2.Customer Integrated Systems (CIS)3.Management Information Systems (MIS)4.Workgroup Support Systems (WSS)5.Decision Support Systems (DSS) & Artificial Intelligence (AI)6.Executive Information Systems (EIS)7.Interorganizational Systems (IOS)

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TRANSACTION PROCESSING SYSTEM (TPS)...

TPSs

a system that processes transactions that occur within an organization.

Capturing informationCreating informationCradling informationConveying information (secondary)

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TPS CHARACTERISTICS• Are at the very heart of every

organization.• Provide the primary interface to

customers.• Found in all functions of an

organization.• If they fail, the whole organization

suffers.

TPSs2-17

CUSTOMER INTEGRATED SYSTEM (CIS)...

CISs

an extension of a TPS that places technology in the hands of an organization’s customers and allows them to process their own transactions.

Capturing informationCreating informationCradling informationCommunicating information

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CIS CHARACTERISTICS• Are at the very heart of every organization.• Are the new primary interface to customers.• Represent a further decentralization of

computing power by placing that power in the hands of customers.

• Will forever change the relationship between organization and customer.

CISs2-19

MANAGEMENT INFORMATION SYSTEM (MIS)...

MISs

a system that provides periodic and predetermined reports that summarize

information within a database.

Creating informationConveying information

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MIS CHARACTERISTICS• Alert people to the existence of problems or

opportunities.• Report Types:

– PERIODIC - produced at a predetermined time interval.– SUMMARIZED - aggregate information in some way.– EXCEPTION - show only a subset of available information.– COMPARATIVE - show two or more sets of similar

information.

MISs2-21

WORKGROUP SUPPORT SYSTEM (WSS)...

WSSs

a system that is designed specifically to improve the performance of teams by supporting the

sharing and flow of information.

Communicating information

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WSS CHARACTERISTICS• Supports the sharing, dissemination, and flow

of information.• Supports both:

– Project teams - that solve a specific problem or take advantage of a specific opportunity and then decide to move on to other projects.

– Permanent teams - people from all departments that perform a flow of work consistently.

• Contains groupware.

WSSs2-23

GROUPWAREthe popular term for the software that supports

the collaborative efforts of a team.

Groupware Supports Three Functions

1. Team Dynamics2. Document Management3. Applications Development

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GROUPWARE SUPPORT FOR TEAM DYNAMICS

• ELECTRONIC MESSAGING - the software component that helps team members communicate.

• ELECTRONIC MEETING SUPPORT - the component that helps you schedule meetings and carry out those meetings.

WSSs2-25

ELECTRONIC MEETING SUPPORT SOFTWARE

• GROUP SCHEDULING - maintains day-to-day electronic calendars of team members and schedules optimal meeting times.

• ELECTRONIC MEETING - lets a team have a “virtual” meeting through IT.

• VIDEOCONFERENCING - allows a team to have a “face-to-face” meeting when members are geographically dispersed.

• WHITEBOARD - lets team members meet and interactively edit and share documents.

WSSs2-26

GROUPWARE SUPPORT FOR DOCUMENT MANAGEMENT

• GROUP DOCUMENT DATABASE - a powerful storage facility for organizing and managing all documents related to specific teams.– Contains documents from many teams– Supports many levels of security– Can store information in a variety of forms

WSSs2-27

DECISION SUPPORT SYSTEM (DSS) & ARTIFICIAL INTELLIGENCE (AI)

DSS & AI

DSS - a highly flexible and interactive IT system that is designed to support decision making when the problem is not structured.

AI - the science of making machines imitate human thinking and behavior.

Creating informationConveying information (secondary)

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EXECUTIVE INFORMATION SYSTEM (EIS)...

EISs

a highly interactive MIS combined with decision support systems and artificial intelligence for

helping managers identify and address problems and opportunities.

Creating informationConveying information

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EIS CHARACTERISTICS• Make use of a data warehouse.• Support drill down capabilities.• Help identify information responsibility.• Use DSS and AI tools.• Provide access to a variety of information.

EISs2-32

INTERORGANIZATIONAL SYSTEM (IOS)...

IOSs

automates the flow of information between organizations to support the planning, design,

development, production, and delivery of products and services.

Communicating information

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IOS CHARACTERISTICS• Supports ELECTRONIC DATA

INTERCHANGE (EDI) - the direct computer-to-computer transfer of transaction information contained in standard business documents.

• Allows many organizations to create an economies of scale in technology.

• Provides a way for organizations to team up and create new products and services.

IOSs2-35

TO SUMMARIZE• Organizations:

– Consist of various levels of management and non management employees

– Have depth

• Shared Information Through Decentralized Computing– an organization’s information is made available to anyone who

needs it (shared information).– Computing power is spread throughout the organization

(decentralized computing).

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TO SUMMARIZE• Information in an organization flows upward,

downward, and horizontally.• Information can be internal, external, objective,

subjective, or some combination of the four.• Information-processing tasks include capturing,

conveying, creating, cradling, and communicating.• Transaction processing and analytical processing are

both ways to create information.

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TO SUMMARIZE CAPTURE CONVEY CREATE CRADLE COMMU- NICATE

TPS XX XX XX

CIS XX XX XX XX

MIS XX XX

WSS XX

DSS&AI XX

EIS XX XX

IOS XX

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