infomation technology the internet and you chapter 10

Chapter

10

Information Systems
Chapter 10

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Learning Outcomes

Computing Essentals 2017

1. Explain the functional view of an organization and describe each function.
2. Describe the management levels and the informational needs for each level in an
organization.
3. Describe how information flows within an organization.
4. Describe computer-based information systems.
5. Distinguish among a transaction processing system, a management information system, a
decision support system, and an executive support system.
6. Distinguish between office automation systems and knowledge work systems.
7. Explain the difference between data workers and knowledge workers.
8. Define expert systems and knowledge bases.

© 2017 by McGraw-Hill Education. This proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


Introduction

An information system is a collection of people,

procedures, software, hardware, data, and
connectivity

They all work together to provide
information essential to running
an organization

Computers are used in organizations to keep records
of events

Competent end users need to

Computing Essentals 2017

understand how the information
flows as it moves through an
organization

© 2017 by McGraw-Hill Education. This proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


Organizational Information Flow

Information flows vertically and horizontally throughout an organization
Information systems support the natural flow of information within an
organization’s structure
Information systems can be broken down into one of five different

Computing Essentals 2017

functional areas, a management level and / or information flow.

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Five Functions of an Organization

Accounting

Records all financial activity

Marketing

Plans, prices, promotes, sells and distributes the goods

Human Resources

Human-centered activities

Production

Creates finished goods and services

Research
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New product development

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Management Levels

Management is usually divided into three
levels:

Top
Long-range planning

Middle
Computing Essentals 2017

Tactical planning

Supervisors
Operational matters

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Information Flow Levels

Each level of management has different information needs.

Require information flows from different levels from different directions
Top Managerial-Level Information Flow
Vertical, horizontal, and external

Middle Managerial-Level Information Flow
Vertical and horizontal

Supervisory-Level Information Flow

Computing Essentals 2017

Primarily vertical

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Computing Essentals 2017

Information Flow Pattern

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Computing Essentals 2017

Summary of Computer-Based Systems

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Computing Essentals 2017

Computer-Based Information Systems

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Transaction Processing Systems (TPS)

Helps organizations keep track of routine
operations and records these events in a
database.

Records day-to-day transactions in a
database
Also called data processing systems (DPS)
One of the most essential uses of a TPS is

Computing Essentals 2017

in Accounting

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Computing Essentals 2017

TPS for Accounting

Sales order processing
Records the customer requests
Accounts receivable
Records money received from or owned
Inventory
Parts and finished goods in stock
Purchasing

Buying of materials and services
Accounts Payable
Money the company owes
Payroll
Activity involving employer paychecks
General Ledger

Keeps track of all summaries of all the above referenced items

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Management Information Systems (MIS)

Computer-based information systems that:

Produce standardized reports to support decision-making by middle
managers
Integrate data and summarizes details from databases in a structured
form
Produce predetermined reports

Computing Essentals 2017

Periodic reports – produced at regular intervals
Exception reports – call attention to unusual events
Demand reports – produced on request

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Decision Support Systems (DSS)

Flexible tool for analyzing data for decision-making purposes
Enables managers to get answers to unexpected and generally non-recurring
problems

Reports do not have a fixed format

Microsoft Access is often used to provide an easy front-end interface
Consists of four parts:

Computing Essentals 2017

User – anyone who has to make decisions
System software – operating system
Data - both internal and external

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Decision Models

Give the DSS its analytical capabilities
Three basic types of decision models

Strategic models

Assists top level managers in long-range planning

Tactical models

Assists middle-managers control the work
Financial and sales promotion planning

Operational models

Computing Essentals 2017

Assists lower-level managers accomplish the daily activities and objectives

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Executive Support Systems (ESS)

Computing Essentals 2017

Designed for top management
Sophisticated software for presenting, summarizing, and analyzing data, but
specifically designed to be easy-to-use
Provides immediate access to a company's key performance indicators

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Other Information Systems

Information workers distribute, communicate, and create information
Data workers

Knowledge workers

Office automation systems (OASs) are designed primarily to support data
workers

Project managers
Videoconferencing systems

Knowledge work systems (KWSs) create information in their areas of expertise

Computing Essentals 2017

Used by OAS systems
Use specialized systems, such as CAD/CAM

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Expert Systems

Or Knowledge-Based Systems are a type of artificial intelligence that uses a database to
provide assistance to users

Contains facts and rules to relate these facts distilled from a human expert

Systems developed in:

Computing Essentals 2017

Medicine

Geology
Architecture
Nature

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Careers In IT

Information systems managers oversee the work of programmers,
computer
specialist, systems analysts, and other computer
professionals
Employers look for individuals with strong technical backgrounds,
with a Master’s degree in business



Strong leadership and excellent communications skills

Information systems managers
can
expect to earn from

Computing Essentals 2017

$95,000 to $125,000 annually

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A Look to the Future ~ IBM’s Watson

•

The Ultimate Information-Finding Machine

•

As information amounts increase, it is
more difficult to keep up
Can Watson save us?

Computing Essentals 2017

•

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Open-Ended Questions (Page 1 of 2)

Name and discuss the five common functions of most organizations.

2.

Discuss the roles of the three kinds of management in a corporation.

3.

What are the four most common computer-based information systems?

Computing Essentals 2017

1.

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Open-Ended Questions (Page 2 of 2)

Describe the different reports and their roles in managerial decision making.

5.

What is the difference between an office automation system and a knowledge work system?

Computing Essentals 2017

4.

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