Information systems in organizations
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Section A. Organizational Structure. CHAPTER 12. Information Systems in Organizations. Page 534. Section A. Organizational Structure. Chapter 12. Section PREVIEW. Section D. Section A. You will be able to:. Describe the activities that take place in a typical business

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Information Systems in Organizations

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Information systems in organizations

Section A

Organizational Structure

CHAPTER

12

Information Systems in Organizations

Page 534


Information systems in organizations

Section A

Organizational Structure

Chapter

12

SectionPREVIEW

Section D

Section A

You will be able to:

  • Describe the activities that take place in a typical business

  • Provide examples of the computer’s role in TQM, employee empowerment, rightsizing, BPR, and e-commerce

Page 534


Information systems in organizations

Section A

Organizational Structure

Chapter

12

Section A

  • An informationsystem collects, maintains, and provides information to people.

  • An organization is a group of people working together to accomplish a goal.

  • Many organizations use computers to operate more effectively, gather information, and accomplish tasks.

Page 536


Information systems in organizations

Types of Organizations

What’s the difference between an organization and a business?

Chapter

12

Section A

  • An organization is a group of people working together toward a goal.

  • A business is an organization that seeks profit by providing goods and services.

  • The written expression of an organization’s mission is called a missionstatement.

    • describes goals

    • way goals will be accomplished

Page 536


Information systems in organizations

Types of Organizations

What’s the difference between an organization and a business?

Chapter

12

Section A

  • Mission statements are published in corporate reports and on the Web.

Course Technology’s

mission statement

Page 536


Information systems in organizations

Organizational Activities

Are there activities that most organizations have in common?

Chapter

12

Section A

  • Most organizational activities can be classified into four functional groups as shown below.

Financial Management

Operations

Human Resources Management

Sales and Marketing

Page 537


Information systems in organizations

Organizational Activities

Are there activities that most organizations have in common?

Chapter

12

Section A

  • The primary activities of an organization are called production or operations.

  • Tracking the flow of money through an organization is referred to as accounting or financialmanagement.

  • Advertising and promoting an organization are the jobs of salesandmarketing or publicrelations.

  • Keeping track of employees is referred to humanresourcesmanagement.

Page 537


Information systems in organizations

Trends and Challenges

Could an organization function without computers?

Chapter

12

Section A

  • Computers are an important aspect of organizational activities.

  • Organizations exist in a competitive environment where opportunities and threats abound.

  • In response to threats, an organization can:

    • become better at what it does

    • change the structure of an industry

    • create a new product or service

Page 538


Information systems in organizations

Trends and Challenges

Could an organization function without computers?

Chapter

12

Section A

  • Automation is the use of electrical or mechanical devices to improve manufacturing or other processes.

  • Computerization - implementing a computer system in an organization

  • TQM (total quality management) is a strategy in which an organization makes a commitment to analyzing and improving the quality of its products and services.

Page 538


Information systems in organizations

Trends and Challenges

Could an organization function without computers?

Chapter

12

Section A

  • Employee empowerment means giving employees the authority to make business decisions.

  • Rightsize means to find the most effective configuration for human and computer resources.

  • Businessprocessredesign requires radical changes to existing business practices to achieve improvements in performance.

  • Just-in-timeinventorymanagement - a way to reduce inventory costs

Page 539


Information systems in organizations1

Section B

People, Decisions and Information

CHAPTER

12

Information Systems inOrganizations

Page 540


Information systems in organizations

Section B

People, Decisions and Information

Chapter

12

SectionPREVIEW

Section D

Section B

You will be able to:

  • Describe the information needs of executives, managers, and workers

Page 540


Information systems in organizations

Section B

People, Decisions and Information

Chapter

12

Section B

Section B

  • Every organization requires people.

  • Workers are the people who carry out the organization’s mission.

  • Managers determine organizational goals and plan what steps to take to achieve those goals.

    • both need to make decisions

Page 540


Information systems in organizations

Workers

Do workers use information systems?

Chapter

12

Section B

Section B

  • A high percentage of workers use information systems and other computer or communications technologies.

  • Informationworkers - produce and manipulate information

  • Serviceworkers - deliver services to customers

  • Goodsworkers - create and manipulate physical objects

Page 541


Information systems in organizations

Workers

Do workers use information systems?

Chapter

12

Section B

Section B

Worker classification

in the organizational

pyramid

Page 541


Information systems in organizations

Managers

What managerial tasks are enhanced by information systems?

Chapter

12

Section B

Section B

  • Executivemanagers - set long range goals for organization called strategicplanning

  • Middle managers - design ways to achieve plans laid out by executive managers, known as tacticalplanning

  • Supervisors - deal primarily with day-to-day operations, known as operationalplanning

Page 543


Information systems in organizations

Problems and Decisions

How do workers and managers use information systems?

Chapter

12

Section B

Section B

  • To solve a problem, a worker must:

    • recognize the problem

    • devise possible solutions

    • select an action or solution

  • Problems

    • structured (every day, routine)

    • semi-structured (less routine, uncertain)

    • unstructured (require human intuition)

Page 544


Information systems in organizations

Problems and Decisions

How do workers and managers use information systems?

Chapter

12

Section B

Section B

  • Computer information systems help people solve structured, semi-structured, and unstructured problems.

Page 544


Information systems in organizations

Information Analysis Tools

Where do computers get information that they supply to workers and managers?

Chapter

12

Section B

Section B

  • Organizations generate internalinformation :

    • inventory

    • cash flow

    • personnel

      • stored in an information system

  • Externalinformation is collected from outside sources.

    • not permanently stored in information system

Page 545


Information systems in organizations

Information Analysis Tools

Where do computers get information that they supply to workers and managers?

Chapter

12

Section B

Section B

  • It is easy to collect external information using Internet resources and other communications capabilities.

Zacks Web site

provides information

about businesses

Page 545


Information systems in organizations

Information Analysis Tools

Where do computers get information that they supply to workers and managers?

Chapter

12

Section B

Section B

  • Most information systems produce a fixed set of reports (daily cash receipts).

  • Information analysis tools help people model problems then find a solution or decision.

Page 546


Information systems in organizations

Information Analysis Tools

Where do computers get information that they supply to workers and managers?

Chapter

12

Section B

Section B

Criterium

DecisionPlus

software

Page 546


Information systems in organizations2

Section C

Information Systems

CHAPTER

12

Information Systems inOrganizations

Page 547


Information systems in organizations

Section C

Information Systems

Chapter

12

SectionPREVIEW

Section D

Section C

You will be able to:

  • Provide examples of office automation that make significant improvements in ways that organizations operate

  • Describe the transaction processing systems that are typically used in businesses

  • Differentiate between an MIS and a DSS

  • Explain how an expert system works

Page 547


Information systems in organizations

Section C

Information Systems

Chapter

12

Section C

  • An information system must have one or more of the following components:

    • office automation system

    • transaction processing system

    • management information system

Page 547


Information systems in organizations

Office Automation

Can an information system automate routine office tasks?

Chapter

12

Section C

  • An office automation system “automates” or computerizes, routine office tasks.

    • word processing software

    • spreadsheet software

    • scheduling software

    • e-mail software

Page 547


Information systems in organizations

Transaction Processing

How does an organization collect information on production or operations?

Chapter

12

Section C

  • In an information system context, a transaction is an event that requires a manual or computer-based activity.

  • A transactionprocessingsystem (TPS) keeps track of the transactions for an organization by providing a way to collect, store, display, modify, or cancel transactions.

Page 547


Information systems in organizations

Transaction Processing

How does an organization collect information on production or operations?

Chapter

12

Section C

  • Examples of transaction processing systems:

    • pointofsalesystem records items purchased at each cash register

    • order-entry/invoicesystem provides a way to input, view, modify, and delete orders

    • generalaccountingsystem records financial status of business

    • e-commercesystem - collects online orders and processes credit card payments

Page 547


Information systems in organizations

Transaction Processing

How does an organization collect information on production or operations?

Chapter

12

Section C

  • Data that is used by a transaction processing system is stored in files or databases

Transaction

processing

system

Page 548


Information systems in organizations

Management Information Systems

Can data collected by transaction be presented in a format conducive to decision making?

Chapter

12

Section C

  • Managers need sophisticated reports to help them understand and analyze data.

    • created by a management information system

  • Management information system can be a synonym for the term “information system” or refer to a type of information system.

    • characterized by production of routine reports that managers use for structured and routine tasks

Page 550


Information systems in organizations

Management Information Systems

Can data collected by transaction be presented in a format conducive to decision making?

Chapter

12

Section C

  • One of the major goals of an MIS is to increase the efficiency of managerial activity.

  • A managerial information system produces several types of reports.

  • Detailreport - organized list

  • Summaryreport - combines or groups data

  • Exceptionreport - show information outside normal or acceptable ranges

Page 551


Information systems in organizations

Decision Support Systems

Can managers get information about unanticipated problems?

Chapter

12

Section C

  • A decision report system (DSS) allows users to:

    • manipulate data directly

    • incorporate data from external sources

    • create data models and “what if” scenarios

    • designed to make non-routine decisions

Page 552


Information systems in organizations

Decision Support Systems

Can managers get information about unanticipated problems?

Chapter

12

Section C

  • A decision model is a numerical representation of a realistic situation.

  • A decisionquery is a question or set of instructions describing the data that needs to be gathered to make a decision.

  • A decision support system “supports” the decision maker but does not make the decision.

Page 552


Information systems in organizations

Expert Systems and Neural Networks

Do information systems ever make decisions?

Chapter

12

Section C

  • Information systems do not make decisions. The manager analyzes the data and reaches a decision.

  • An expert system, sometimes referred to as a “knowledge-based system”, is a computer system designed to analyze data and produce a recommendation or decision.

    • uses a set of facts or rules

Page 553


Information systems in organizations

Expert Systems and Neural Networks

Do information systems ever make decisions?

Chapter

12

Section C

Expert system

Page 553


Information systems in organizations

Expert Systems and Neural Networks

Do information systems ever make decisions?

Chapter

12

Section C

  • Knowledgebase - set of facts and rules, stored in a computer file

    • manipulated by inferenceengine software

  • An expert system is not a general-purpose problem solver or decision maker.

  • An expertsystemshell is a software tool that helps in developing expert system applications.

    • contains an inference engine

    • expert system without rules

Page 554


Information systems in organizations

Expert Systems and Neural Networks

Do information systems ever make decisions?

Chapter

12

Section C

  • Expert systems are designed to deal with imprecise data or problems that have more than one solution.

  • Using a technique called fuzzy logic, an expert system can deal with imprecise data by asking for a level of confidence.

  • A neuralnetwork uses computer circuitry to simulate the way in which a brain might process information.

Page 555


Information systems in organizations3

User Focus

Expert System Facts and Rules

CHAPTER

12

Information Systems inOrganizations

Page 556


Information systems in organizations

User Focus

Expert System Facts and Rules

Chapter

12

User Focus

An expert system has the ability to make inferences based on the rules and data in a knowledge base.

An expert system can “think for itself” to draw conclusions from a set of facts.

Page 556


Information systems in organizations

Facts

How do I write the facts for a knowledge base?

Chapter

12

User Focus

  • A fact is a basic building block of a knowledge base.

  • Once facts are in a knowledge base, you can search through facts to produce an answer.

  • The way you write facts for a knowledge base depends on the development tool you use.

  • Predicate logic is a shorthand notation system used to construct your expert system.

Page 557


Information systems in organizations

Rules

Can I use predicate logic for rules?

Chapter

12

User Focus

  • The way that you enter facts depends on the development tool you use.

    • most do not allow free-form English

    • too ambiguous

  • A development tool requires you to use IF...THEN format or predicate logic to write rule.

  • When creating an expert system, the goal is to hide all of the details of a decision from the user.

Page 558


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