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Case: Frito Lay

Frito-Lay, Inc., a snack food subsidiary of Pepsi-Cola, outfitted its 10,000-person direct store-delivery sales force with handheld terminals used while calling on the 400,000 stores that sell its 100 products. Salespeople use the terminals to enter replenishment orders and record the number of “stales” removed after their 35-day shelf life. Based on this data, a printer in the truck prints an invoice handed to the store manager as part of the day’s deliveries. Salespeople hook the terminals to telephone lines to transfer each day’s data to the company’s mainframe computers in Dallas. The system saves salespeople four or five hours of paperwork per week.


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The mainframes in Dallas consolidate the data each night as part of Frito-Lay’s internal replenishment system. Requirements for that system changed drastically in the 1980s, and Frito-Lay’s regional competitors became stronger. Frito-Lay had to be able to respond quickly to a variety of competitive challenges, ranging from price changes to totally new products. Coordination between manufacturing and sales had to be much tighter because the company needed to be able to run local promotions on Thursday for a product that would have to be available on Monday.


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The system also used a data warehouse to provide comprehensive, up-to-date data for studying sales by any combination of product, store, and time period. In South Texas, the data from this system showed an unexpected drop in sales of Tostitos tortilla chips. Research into the cause of the drop indicated that a small competitor had launched a white corn tortilla chip. Frito-Lay developed a competitive white corn product within three months and regained market share.


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Question: comprehensive, up-to-date data for studying sales by any combination of product, store, and time period. In South Texas, the data from this system showed an unexpected drop in sales of Tostitos tortilla chips. Research into the cause of the drop indicated that a small competitor had launched a white corn tortilla chip. Frito-Lay developed a competitive white corn product within three months and regained market share.What type(s) of information systems does the case illustrate?Debate:


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The Frito-Lay information system supports a range of communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.


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Frito-Lay communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

  • Customers

    • Frito-lay Customers

    • Managers and others who use data

  • Products

    • Complete and timely information accessible for decision-making

    • Convenience and low-cost for salespeople and customers related to ordering and managing inventory

  • Business Process

    • Steps:

    • Track customer inventories of Frito-Lay products

    • enter orders

    • Consolidate data about orders and the market

    • Use data for monitoring and decision-making


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Frito-Lay communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

  • Business Process

    • Rationale: Use hand-held terminals to collect data during sales calls. Consolidate the information in a system that supports decision making.

  • Participants

    • Driver and salespeople

    • Marketing managers

  • Information

    • Inventory by product and customer

    • Customer orders

    • sales by product, region, and period

  • Technology

    • hand held terminals

    • computers

    • telecommunications networks


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Introduction communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

  • We can think of information systems as providing three basic functions:

    • support for decision-making (from computation capabilities)

    • support for communication

    • support for access to information

  • We will explore these concepts in depth over the next few weeks. The concepts are introduced here.

  • Types of information systems will be introduced and we will look at how they affect decision-making, communication, and information access.


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Capabilities of Information Systems communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

1. Fast and Accurate Data Processing, with large-Capacity Storage and Rapid Communication Between Sites.

  • Computer and telecommunications systems

  • exploited by operational support systems

  • deriving management reporting from volumes of data

  • business opportunities built on this capability

  • e.g. consolidate financial results from multiple organizational sites

    2. Instantaneous Access to Information

  • on-line, ad-hoc access to databases

  • tailorable graphical interfaces

  • support of knowledge-workers

  • e.g. EIS allowing executive access to yesterday’s sales


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Capabilities of Information Systems - 2 communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

3. Means of Coordination

  • bringing parts of organizations together in a common effort

  • office information systems

  • project management systems

  • portable computing widening the reach of information systems creating the virtual office

  • inter-organizational information systems coordinating efforts of cooperating enterprises.

  • Coordinate means to harmonize in a common action or effort

  • e.g. planning, scheduling, and running a workgroup project


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Capabilities of Information Systems - 3 communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

4. Boundary Spanning

  • IS link an organization to the outside world

  • EDI replacing paper documents

  • connecting suppliers with customers

  • Enables organizations to more quickly receive information about their environment

  • Use of the Internet and Web presence to make contact with customers

  • e.g. companies that have project teams to monitor public forums

  • e.g. investigating the competitive opportunities in new markets


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Capabilities of Information Systems - 4 communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

5. Support for Decision Making

  • Informing managers and permitting them to select from alternative courses of action.

    6. Supporting Organizational Memory and Learning

  • organizational memory = the means by which knowledge from the past exerts influence on present organizational activities.

  • Preserving the experience the organization has delivering products and services

  • e.g. Auto manufacturers preserve electronic designs, hotels maintain customer preferences

  • Development of Knowledge Management Systems

  • organizations that acquire knowledge and modify behavior are learning.


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Capabilities of Information Systems - 5 communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

7. Routinizing Organizational Practice

  • e-mail and conferencing systems providing new protocols for interaction of people within an organization.

  • Expert systems approve/refuse credit card transactions assures high consistency.

  • Order processing cycle

  • Routinizing of organizational practice does not take away from the creativity of individuals. It may leave time and opportunity for greater productivity and knowledge work.

  • E.g. electronic processing of insurance policy with the support of workflow systems


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Capabilities of Information Systems - 6 communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

8. Differentiation of Products and Services

  • Firms compete by making their products and services different from others.

  • Gain an initial competitive advantage.

  • E.g. FedEx tracking packages and shipments

  • allows for mass customization

    9. Modeling

  • model future economic conditions, prospective products, and the environment where they will operate.

  • Model = simplified representation of a real object or phenomenon

  • knowledge workers manipulate models of reality in order to gain understanding

  • e.g. the spreadsheet

  • e.g. product engineered and tested electronically before a physical prototype is made.


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Capabilities of Information Systems - 7 communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

10. Automation

  • fully automate certain business functions by replacing human labor

  • e.g. POS systems

  • However, loss of clerical positions gives rise to jon functions responsible for maintaining the system and developing new ones to analyze and exploit volumes of new information.

  • E.g. “lights-out” data centers run with out human participation.


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Improving Communication and Decision Making communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.Performance within Business Processes

RATE OF OUTPUT

Improve communication: Communicate more information or more types to more people

Improve decision making: Make more decisions using better, more complete information

CONSISTENCY

Improve communication: Make sure different people receive the same communication

Improve decision making: Make sure repetitive decisions are made in the same way

PRODUCTIVITY

Improve communication: Achieve more communication with less effort

Improve decision making: Make better decisions with less effort


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Improving Communication and Decision Making communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.Performance within Business Processes

CYCLE TIME

Improve communication: Eliminate undesirable delays in communication

Improve decision making: Eliminate unnecessary delays in decision making

FLEXIBILITY

Improve communication: Permit communication in many different forms

Improve decision making: Maintain decision quality across a wider range of situations

SECURITY

Improve communication: Make sure communications go only to the intended recipients

Improve decision making: Make sure decisions are controlled only by those authorized to make the decisions


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Basic Concepts of Communication communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.


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Communication communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

  • Communication is an interpersonal process of sending and receiving symbols with messages attached to them.


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General Model of a Communication System communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

Feedback

Receiver

Decoder

Transmitter

encoder

Source

Destination

Channel

Noise

and

Distortion


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Basic Communication Concepts communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

  • Social Context

  • Personal, Impersonal, and Anonymous Communication

  • Time, Place, and Direction of Communication


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Social Context communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

  • The situation and relationships within which communication takes place.

    • Social presence

    • Organizational position

    • Relationships

    • Cultural Norms

    • Age

    • Gender

    • The topic being discussed

  • Nonverbal communication

  • Media Richness Theory


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Personal, Impersonal, and Anonymous Communication communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

  • Personal - the relationship between sender and receiver matters. It affects form and content.

  • Impersonal - The sender and receiver’s relationship does not matter. Both serve as agents of the organization.

  • Anonymous - The sender’s identity is hidden from the recipient.


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Time, Place, and Direction of Communication communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

  • Synchronous - The sender and Receiver are available simultaneously

  • Asynchronous - The sender and receiver are not available simultaneously.

  • Place Involves Physical Presence

  • Direction: One-way vs. Two Way communication.


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Common Communications Classified By Time and Place communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

Presentation Systems

Copyboards

PC Projectors

Facilitation Services

Polling Systems

Group Decision Rooms

Transaction databases

World Wide Web

Shared Files

Electronic Mail

Voice Mail

Shift Work Communications

SAME

PLACE

EDI

Transaction databases

Electronic Mail

Computer Conferencing

Voice Mail

Fax

Pre-recorded Radio/TV

DIFFERENT

PLACE

Typical Telephone

Video Telephone

Video Conferencing

Live Radio TV Broadcast

SAME TIME

DIFFERENT TIME


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What are some approaches for Information Systems to communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.improve communications?


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Approaches for Improving Communication communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

1. Make face to face communication more effective.

2. Eliminate Unnecessary Person to Person Communication

3. Make Communications more systematic

4. Combine and Extend Electronic Communications


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Making Face to Face Communication More Effective communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

  • Presentation Technologies:

    • Blackboard

    • Prepared Paper Handouts

    • Overhead projector or slide projector with color transparencies

    • Electronic Blackboard

    • Computer LCD Display panels

    • Computer for “What-If” Scenarios

    • Computer-controlled Multi-media

    • Computer controlled multi-media with interactive control.


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Eliminate Unnecessary Person to Person Communication communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

  • Substitute on-line Access to data

    • Example: Supplier/Customer Relationships as discussed in Interorganizational Information systems

  • ATM access

  • Automated Telephone Attendants

  • Danger of becoming too impersonal


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Making Communication Systematic communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

  • Contrast communication between people vs. communication between machines.

  • The business Memo Header:

    • To:

    • From:

    • Date:

    • Re:

  • Having structure reduces the effort required to figure out what the communication means.

  • Even with communication between groups of people, repetitive aspects of communication are systematized.


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Combine and Extend Electronic Communication Functions communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

  • Early communication technologies have been combined and extended to create more powerful communication technologies.

  • Example: Telegraph, Telephone, Radio Broadcast

  • Consider how more modern technologies are being combined.

  • More convergence of computing and communications technologies.


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Question: communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form. How have the different degrees of social presence in communication, or how have time, place, and direction of communication affected a situation in which you have been involved?


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Basic Decision-Making Concepts communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.


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Steps in Decision Making communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.


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Types of Information Systems communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.


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Different Classification Schema communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

  • There is no one hard and fast rule for classifying information systems. Some way we might consider:

    • By Organizational Level

    • By Major Functional Area

    • By the Support Provided by the System

    • By the Information System Architecture


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Classification of IS: communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.Organizational Levels

  • Consider the hierarchical nature of organizations. Although many organizations are reengineering themselves and transforming themselves to other structures, the vast number of organizations have a hierarchical structure. Typical information systems that follow organizational levels are:

    • Departmental or functional area

    • Enterprise Information Systems ( e.g. vendors today market enterprise systems - PeopleSoft, SAP).

    • Inter-organizational Systems (e.g. American Airlines Sabre)


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Classification of IS: communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.Major Functional Area

  • Departmental information systems may follow traditional Functional Areas:

    • The accounting system

    • the finance system

    • the manufacturing (operation/production) system

    • the marketing system

    • the human resource system

  • Note in each functional area, there may be basic computerized tasks that essential to the operations of the organization and are routine in nature (e.g. preparing a payroll and billing a customer).


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Classification of IS: communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.Major Functional Area - 2

  • Such tasks are mission-critical and often are supported by transaction processing systems (TPS). TPS support tasks in all functional areas.

  • In each functional area it is often possible to fund dozens of IS-specific applications.

  • The functional area classification is outdated and perpetuates the notion of functional silos or functional islands of information.

  • There is the need for cross-functional information systems.


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Major Functional Areas communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

  • Primary Activities:

    • Manufacturing

    • Materials Management (logistics)

    • Engineering

    • Testing and Quality Control

    • Maintenance and Service

    • Marketing and Sales

  • Support Activities

    • Accounting

    • Finance

    • Strategic Planning

    • Human Resource Management

    • Research and Development

    • Procurement (Purchasing)

    • Public Relations

    • Information Systems


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Classification of IS: communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.Support Provided

Another way to classify IS is by the type of support provided regardless of the functional area involved:

  • Transaction Processing Systems (TPS) - supporting routine operations central to the mission of the organization.

  • Management Information Systems (MIS) - supporting functional managers.

  • Office Automation Systems (OAS) - supporting office workers.

  • Group Support Systems (GSS) - supporting people working in groups


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Classification of IS: communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.Support Provided

  • Decision Support Systems (DSS) - supporting managers and analysts.

  • Executive Information Systems (EIS) - supporting executives

  • Execution systems - systems that directly support the organization’s value-added work (e.g. help sales people sell, doctor’s practice medicine, architects design, etc.)

  • Intelligent Support system - supporting knowledge workers using Expert systems (ES) and artificial neural networks (ANN)


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Classification of IS: communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.By Nature of Activity Supported

  • Operational Systems - deal with day to day operations. Often involve TPS. Systems used by first-line managers (supervisors). Operational decisions are of short-term nature.

  • Managerial or Tactical - used by middle management; short-term planning, organizing, and controlling. Managerial systems are broader in scope that operational systems. They are often equated with MIS.

  • Strategic - deal with long-term situations which significantly affect how business is conducted.

  • Note: Reference Gorry Scott-Morton article.


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Information Systems Design communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

  • The manner is which an IS is designed depends on what it is intended to support.

  • It is important to conceptualize the information requirements of the organization (See Wetherbe article).

  • Often the conceptualization of how information requirements will be met is called the information architecture. It is a high-level description of an organization’s information resources.

  • The Information Systems infrastructure or information technology infrastructure is a related concept.


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Information Systems Design - 2 communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

  • The information technology infrastructure is a description of how computers, networks, databases, and other facilities are arranged and how they are operated and managed.

  • Architecture and Infrastructure are related aspects of Information System Design.

  • An analogy is the conceptual planning of a house (architecture) and the physical construction of the foundation, walls, roof, etc. (infrastructure).


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Classification of IS: communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.By Information Systems Architecture

  • Information Systems can be classified according to the systems architecture:

    • a mainframe based system, sometime called host-based systems.

    • a stand-alone personal computer.

    • a Networked (or distributed) environment divides the work between two or more computers.

      • Cooperative processing (geographic dispersed)

      • client-server (generally with LANs)

      • enterprise wide (uses intranet)


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Detail on Information Systems by Support Provided communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.


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Transaction Processing Systems communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

  • A transaction is an elementary activity conducted during business operations (e.g. merchandise sale).

  • Earliest Information Systems in organizations.

  • Support the monitoring, collection, storage, processing, and dissemination of the organization’s basic business transactions.

  • Provides backbone for many other applications involving other support systems.

  • On-line systems called OLTP vs. batch

  • Routine, repetitive tasks.


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Business Transactions in a Factory communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

  • Payroll: employee time cards, employee pay and deductions, payroll checks.

  • Purchasing: purchase orders, deliveries, payments (accounts payable)

  • Sales: sales records, invoices and billing, accounts receivable, sales returns, shipping

  • Manufacturing: production reports, quality-control reports

  • Finance and Accounting: financial statements, tax records, expense accounts

  • Inventory management: materials usage, inventory levels


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Transaction Processing Systems - 3 communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

  • In addiiton to processing the routine critical organizational activities, transaction processing systems also provide the source data for many other type of information systems used at the tactical and strategic levels in the organization.

  • Recall that tactical and strategic levels use aggregated data, over multiple time periods. TPS are often the source of this information. TPS often populate data warehouse which provide on-line analytical processing (OLAP).


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TPS Data Entry Screen communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.


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Management Information Systems communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.

  • Systems that convert TPS data into information for monitoring performance and managing an organization.

  • The MIS provides periodic information to functional (operational) and mid-level (tactical) managers on routine matters such as operational efficiency, effectiveness, and productivity.

  • Example: An HRIS can provide the HR manager with percentages of people who are on vacation or call in sick. It can compare actual to forecasted values, or to an industry average.

  • MIS are used for planning, monitoring, and control.


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MIS management report communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for management’s use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.


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Methods for Managerial Systems Support (MIS or Tactical Level)

1. Statistical Summaries

2. Exception Reports

3. Periodic and ad hoc reports

4. Comparative analysis

5. Projections

6. Early detection of problems

7. Routine decisions


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Statistical Summaries Level)

  • Statistical Summaries - summary of raw data collected in TPS.

  • Examples:

    • Daily production

    • weekly absenteeism rate

    • monthly usage of utilities

  • Enhanced with graphics - a picture tells a thousand words.


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Exception Reports Level)

  • To relieve managers from the information-overload syndrome, an information system can extract (or highlight) exceptions.

  • Produced only when pre-established “out-of-bounds” conditions occur

  • E.G. a report that compares expenses to budget, all expense items that exceed the budget by more than 5 per cent are underlined, colored, or separated from the rest.

  • Exception reporting helps managers avoid perusal of incidental figures and concentrate on deviations from the norm.

  • Challenge is to define the exceptions vs. normal.


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Periodic and Ad Hoc Reports Level)

  • Both statistical summaries and exception reports can be done on a routine basis or on a demand basis by users (ad hoc).

  • Ad hoc requested because they contain information not available in the routine reports or because users can not wait for the scheduled time of the periodic report.

  • As technology improves, the ability to request and receive ad hoc reports will improve further. Managers should be able to view current or even real-time information at any time they wish to do so.

  • Query languages to databases facilitate such inquiry. Web access tools are providing the same.


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Comparative Analysis Level)

  • Managers like to see performance values and other information compared to their competitors, past performance, or industry standards.

  • Key Performance Indicators and other Critical Success Factors can be calculated from primarily internal information and compared with information external to the organization. These measures are often found in Executive Information Systems.


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Projections Level)

  • In contrast to operational systems, which have a historical orientation, managerial information systems provide standard projections such as trend analysis, projection of future sales, projection of cash flows, or forecasting of market share.

  • Many projections will look at historical data and factors in key environmental factors and factors (e.g. consumer price index, inflation rate) to predict the future.


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Early Detection of Problems Level)

  • By comparing and analyzing data, managerial systems can detect problems in their early stages.

  • For example, statistical quality control reports can reveal if a trend for reduced quality is developing.

  • This requires defining norms.


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Routine Decisions Level)

  • Middle managers are involved in many routine decisions.

  • They schedule employees, order materials and parts, and decide what and when to produce.

  • Standard computerized mathematical, statistical, and financial models are available for the execution of these activities.


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Strategic Potential of Transaction Processing and Management Reporting Systems

  • TPS should not be written off as efficiency-oriented that requires nothing more than technical ingenuity

  • TPS can be enablers of major process innovations when approached with a TQM perspective.

  • Redesigned business processes, supported by TPS, cut through functional business lines and can ensure rapid and high-quality customer service. They can be a source of competitive advantage and generate a wealth of organizational knowledge.


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Strategic Potential of Transaction Processing and Management Reporting Systems - 2

  • Examples:

  • The Ford Purchasing System highlighted in chapter 2.

  • NJIT’s Self-Registration System and other “Let the customer do it himself/herself” systems.

  • TQM systems:

    • customer-focus

    • process-oriented

    • total involvement


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Decision Support Systems Reporting Systems - 2

  • Help people make decisions by providing

    • access to data,

    • ietartive problem-solving

    • direct use of models,

    • and analysis tools with user-controllable methods for displaying results.

  • Normally used in situations where decisions are semi-structured and unstructured where no one knows exactly how the decision should be made.


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IS Structured Decision-Making: Reporting Systems - 2Structuring loan authorization


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Decision Support Systems - 2 Reporting Systems - 2

  • DSS grew out of dissatisfaction with the ability of TPS and MIS to solve a new class of problems.

  • Repetitive Use of DSS: Insurance agents use DSS to help customers choose policy options. Different scenarios are reviewed.

  • Non-repetitive use of DSS: models are used to help evaluate different business strategies.

  • Note the use of “what if?” questioning.


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Graphical output from a DSS Reporting Systems - 2


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Decision Support Tools Reporting Systems - 2

  • The use of on-line data analysis tools to explore large databases of transaction data is called on-line analytical processing (OLAP). The idea of OLAP grew out of difficulties analyzing the data in databases that were continually updated by TPS.

  • Periodic downloads of transaction data is stored in a separate database specifically designed to support analysis work. This database is called the data warehouse.

  • Use of OLAP tools to try and find relevant patterns in large transaction databases is called data mining.


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Executive Information Systems Reporting Systems - 2

  • An EIS is a highly interactive systems which provides managers and executives flexible access to information for monitoring operating results and general business conditions.

  • EIS attempts to take off where the traditional MIS.

  • EIS reporting is tailorable to the user.


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EIS - 1 Reporting Systems - 2

(a)

(b)

(c)


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EIS - 2 Reporting Systems - 2


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EIS - 3 Reporting Systems - 2


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MIS Reporting Systems - 2

for

strategic

and policy

planning and

decision making

EIS

Management Information

for tactical planning

and decision-making

DSS,

ES

Management Information for

operational planning, decision-making

and control

MIS

Basic Transaction Processing

Collection of Core Business Data

TPS


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Office Automation Systems Reporting Systems - 2

  • Provide individuals with effective ways to process personal and organizational business data, perform calculations, and create documents.

  • Facilitates everyday information processing tasks

  • Includes a wide range of tools such as spreadsheets, word processors, presentation packages, and personal databases. Sometimes e-mail, v-mail, and fax are included.

  • When used for personal purposes, the work is less structured. When tools are included for groups or teams, we often consider the tools groupware.


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Group Support Systems Reporting Systems - 2

  • Share information with different people working on different parts of a task.

  • Controlling work flows and approval loops within a group.

  • Incorporating efficient methods of scheduling meetings.

  • Other names used are Groupware and Computer-Supported Cooperative Work (CSCW) systems.


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Group Support Systems - 2 Reporting Systems - 2

  • A form of Group Support systems called GDSS (Group Decision Support Systems) provides decision support by providing structure for meetings.

  • The meetings can be held synchronously or asynchronously.

  • Features of EIES/VC are compatible with GDSS.


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GDSS Room Reporting Systems - 2


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Communication Systems Reporting Systems - 2

  • Helps people work together by sharing information in different forms.

  • Examples: teleconferencing, video conferencing, messaging systems.

  • Sometimes called Computer Mediated Communication Systems (CMC).

  • Sometimes the features are considered part of groupware or office automation systems.


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Options for teleconferencing Reporting Systems - 2


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Expert Systems Reporting Systems - 2

  • Information systems that support the work of professionals in bounded, but complex situations where it is recognized that experts do better than non-experts.


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Example: Information Systems in a Human Resource Department Reporting Systems - 2

  • The boundaries between different classifications of IS are not precise and several real-life systems combine several of the categories.

  • Follow the descriptions of various HRIS’s in the next few slides.


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Transaction Processing in an HRIS Reporting Systems - 2

  • Keep inventory of personnel

  • payroll preparation

  • compute salaries and incentive plans


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Management Information Systems as part of an HRIS Reporting Systems - 2

  • Summary reports (e.g. average salaries in town)

  • performance tracking of employees

  • labor budget

  • preparation, monitoring, and analysis

  • short-term scheduling

  • match positions and candidates

  • fringe benefits monitoring and control


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Decision Support Systems in an HRIS Reporting Systems - 2

  • Special report (e.g. safety records, equal opportunity achievements)

  • Long range planning for human resources

  • design of a compensation plan

  • quantitative support of labor-management negotiations


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Expert Systems in an HRIS Reporting Systems - 2

  • Advice on legal and tax implications during management-labor negotiations.

  • Develop social responsibility plans

  • select training media

  • design comprehensive training programs


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Office Automation in an HRIS Reporting Systems - 2

  • On-line job interviews and recruiting,

  • schedule meetings,

  • mailing lists,

  • schedule training,

  • electronic mail,

  • labor news and statistics received on-line

  • preparation of training materials


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Executive Information Systems in an HRIS Reporting Systems - 2

  • Exists at corporate level only

  • will measure key performance indicators of the department (such as dollar per employee)


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IS Impacts on Communication and Decision Making Reporting Systems - 2

Transaction Processing Systems:

Communication:

  • creates database that can be accessed directly, thereby making some person to person communication necessary.

    Decision-Making:

  • gives immediate feedback on decisions while processing transactions.


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IS Impacts on Communication and Decision Making Reporting Systems - 2

Management Information Systems and Executive Information Systems:

Communication

  • Provides a basis of facts rather than options for explaining problems and solutions

    Decision Making

  • provides summary information and measures of performance for monitoring results.

  • May provide easy ways to analyze the types of information provided in less flexible form by older MIS


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IS Impacts on Communication and Decision Making Reporting Systems - 2

Decision Support Systems:

Communication:

  • analysis using DSS helps provide a clear rationale for explaining decisions.

    Decision Making:

  • provides tools for analyzing data and building models

  • Analysis using a DSS helps define nd evaluate alternatives


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Information System Examples in Three Functional Areas of BusinessSales,Manufacturing, and Finance

  • OFFICE AUTOMATION SYSTEMS

  • COMMUNICATION SYSTEMS

  • TRANSACTION PROCESSING SYSTEM (TPS)

  • MANAGEMENT INFORMATION SYSTEM (MIS) AND EXECUTIVE INFORMATION SYSTEM (EIS)

  • DECISION SUPPORT SYSTEM (DDS)

  • EXECUTION SYSTEM

Reference Table 5.6 in Alter Textbook.


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Transferable Features of IS Business

  • OFFICE AUTOMATION SYSTEMS

  • Transferable features:

  • Multiple forms of information, sometimes used in combination

  • Immediacy and interactivity of communication

  • Avoidance of unproductive work

  • COMMUNICATION SYSTEMS

  • Transferable features:

  • Emphasis on communication in addition to data processing

  • Consideration of social presence and other communication characteristics when building systems

  • Recognition of the need to handle different combinations of same or different time or place

  • Sharing information betwween different people working on different parts of a task

  • Controlling work flows and approval loops within a group

  • Incorporating efficient methods of scheduling meetings

  • TRANSACTION PROCESSING SYSTEMS

  • Transferable features:

  • Control

  • Procedures and rules

  • Repetitions


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Transferable Features of IS - 2 Business

  • MANAGEMENT AND EXECUTICE INFORMATION SYSTEMS

  • Transferable features:

  • Emphasis on measures of performance

  • Use of standard formats and measures by people in different departments

  • User friendly interface

  • User friendly methods for analyzing data

  • DECISION SUPPORT SYSTEMS

  • Transferable features:

  • User-controlled interaction with computers

  • Use of models and data

  • Information systems applied to semistructured tasks

  • EXECUTION SYSTEM

  • Transferable features:

  • Integrating computerized systems into doing the organization’s value added work

  • Bringing knowledge in active form to people doing the work