Information systems in organisations

2,910 views

Published on

Published in: Business, Technology
0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,910
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
110
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide

Information systems in organisations

  1. 1. IT Applications Theory Slideshows By Mark Kelly McKinnon Secondary College Vceit.com Systems in organisations
  2. 2. Remember this management hierarchy? TACTICAL OPERATIONAL STRATEGIC STRATEGIC
  3. 3. You don’t? <ul><li>Look at the “Organisational Decisions” slideshow before starting this one! </li></ul>
  4. 4. Orders flow down the hierarchy TACTICAL OPERATIONAL STRATEGIC STRATEGIC Non-management workers
  5. 5. Decisions need data <ul><li>Good decisions can’t be made in a vacuum </li></ul><ul><li>Managers need to know what’s happening in the organisation </li></ul><ul><li>Data need to flow upward to inform managerial decisions </li></ul>
  6. 6. BTW <ul><li>“ Data” is plural </li></ul><ul><li>“ Datum” is singular. </li></ul><ul><li>“ The data are …” </li></ul><ul><li>“ The datum is …” </li></ul><ul><li>“ The data flow…” not “The data flows…” </li></ul><ul><li>Similar to “The elephants is…” </li></ul>
  7. 7. Data flow up the hierarchy TACTICAL OPERATIONAL STRATEGIC STRATEGIC Non-management workers
  8. 8. Different needs <ul><li>Different levels of decision-making need different amounts and types of data and information. </li></ul>
  9. 9. Information Needs <ul><li>The General Manager of Safeway Australia does not want to know how many unsold cooked chickens are left at the end of each day in each store. A store manager does . </li></ul>
  10. 10. Information Needs <ul><li>The manager of the Manangatang Safeway does not want to know the average sales of roast chickens across the country for the previous 6 months. The general manager does . </li></ul>
  11. 11. Types of information systems <ul><li>Different information systems are used at different levels of management, depending on their needs. </li></ul>
  12. 12. Reminder <ul><li>A “system” consists of: </li></ul><ul><ul><li>Equipment (hardware and software) </li></ul></ul><ul><ul><li>People </li></ul></ul><ul><ul><li>Procedures </li></ul></ul><ul><ul><li>Data </li></ul></ul>
  13. 13. Different information needs… TACTICAL OPERATIONAL STRATEGIC STRATEGIC Non-management workers Need information that is highly summarised, sorted, categorised Need more detail than strategic level. Need lots of detail.
  14. 14. … Different information systems TACTICAL OPERATIONAL STRATEGIC Non-management workers Transaction Processing System (TPS)
  15. 15. Different information systems TACTICAL OPERATIONAL STRATEGIC Non-management workers Transaction Processing System (TPS) Management Information System (MIS) and Decision Support System (DSS)
  16. 16. Different information systems TACTICAL OPERATIONAL STRATEGIC Non-management workers Transaction Processing System (TPS) Management Information System (MIS) and Decision Support System (DSS) Executive Information System (EIS)
  17. 17. TPS <ul><li>Transaction Processing System </li></ul><ul><li>Used by non-management staff </li></ul><ul><li>e.g. electronic cash register, POS (point-of-sale) terminal </li></ul><ul><li>It Processes Transactions! (derrr!) </li></ul>
  18. 18. TPS in action <ul><li>Cheryl buys a tube of toothpaste at the Manangatang Safeway. </li></ul><ul><li>Kylie, checkout operative, scans the toothpaste’s bar code with a bar code reader. </li></ul>
  19. 19. TPS in action <ul><li>Cheryl buys a tube of toothpaste at the Manangatang Safeway. </li></ul><ul><li>Kylie, checkout operative, scans the toothpaste’s bar code with a bar code reader. </li></ul>
  20. 20. TPS in action <ul><li>The TPS looks up the barcode in the inventory and fetches the item’s cost and whether it attracts GST. </li></ul><ul><li>It adds the cost of the toothpaste to the shopper’s total bill. </li></ul><ul><li>It calculates GST, if applicable. </li></ul><ul><li>It determines discounts, if applicable </li></ul><ul><ul><li>(e.g. buy 2, get 10% off) </li></ul></ul>
  21. 21. TPS in action <ul><li>The TPS looks up the barcode in the inventory and fetches the item’s cost and whether it attracts GST. </li></ul><ul><li>It adds the cost of the toothpaste to the shopper’s total bill. </li></ul><ul><li>It calculates GST, if applicable. </li></ul><ul><li>It determines discounts, if applicable </li></ul><ul><ul><li>(e.g. buy 2, get 10% off) </li></ul></ul>
  22. 22. TPS in action <ul><li>The TPS prints the docket for the customer. </li></ul><ul><li>It notifies the store’s inventory system that the tube of toothpaste has been sold. </li></ul><ul><li>The inventory system may re-order more toothpaste if stocks get below the re-order level. </li></ul><ul><li>The TPS stores the details of the transaction in a database. </li></ul>
  23. 23. Different information systems TACTICAL OPERATIONAL STRATEGIC Non-management workers TPS Management Information System (MIS) and Decision Support System (DSS) EIS
  24. 24. MIS <ul><li>The data from the TPS is used by the tactical managers in their Management Information Systems . </li></ul><ul><li>The TPS data is summarised, sorted, categorised – generally processed – to let the managers see “the big picture” related to sales. </li></ul>
  25. 25. BTW <ul><li>“ Data” are raw, unprocessed, separate facts and figures. They have potential value, but are not of much direct use to anyone. Think of raw corn: hard, inedible, tasteless. </li></ul>
  26. 26. BTW <ul><li>“ Information” comes from processing data, e.g. averaging, totalling, categorising into groups (e.g. “cosmetics”, “fresh fruit”, “hardware”), converting (e.g. from numbers to graphs). </li></ul><ul><li>Information makes data useful to humans. </li></ul>
  27. 27. <ul><li>Think of it this way: </li></ul><ul><li>raw corn ( data ) is </li></ul><ul><li>steamed, rolled, toasted ( processed ) to make </li></ul><ul><li>cornflakes ( information ) </li></ul>
  28. 28. DSS <ul><li>Decision Support System </li></ul><ul><li>Helps middle-managers make tactical decisions by letting them: </li></ul><ul><ul><li>Play “What if…” games e.g. using a spreadsheet as a DSS to change a value (e.g. profit margin) and see what happens to a related value (e.g. sales) </li></ul></ul><ul><ul><li>Do modelling </li></ul></ul>
  29. 29. DSS <ul><li>Helps middle-managers make tactical decisions by letting them: </li></ul><ul><ul><li>Do modelling Creating an artificial computerised model of the real world so they can simulate actions that are slow, impractical, expensive, dangerous. (e.g. nuclear explosions, test-crashing cars, reducing government interest rates) </li></ul></ul>
  30. 30. DSS <ul><li>Helps middle-managers make tactical decisions by letting them: </li></ul><ul><ul><li>Do forecasting Predicting future events based on current trends. </li></ul></ul>
  31. 31. MIS Example <ul><li>Clint, purchasing officer, needs to see whether peppermint or spearmint toothpaste is selling better. </li></ul><ul><li>The MIS can produce total sales of both flavour toothpastes over the past 6 weeks in each state. </li></ul><ul><li>Spearmint is especially popular in Victoria, so Clint increases spearmint toothpaste deliveries by 5%. </li></ul><ul><li>What a clever Clint. </li></ul>
  32. 32. Different information systems TACTICAL OPERATIONAL STRATEGIC Non-management workers (TPS) (MIS) (DSS) Executive Information System (EIS)
  33. 33. Strategic information needs <ul><li>Top-level managers would be unable to cope with massive amounts of raw data coming from thousands of transactions. </li></ul><ul><li>Need summarised information to better see trends and overall shapes. </li></ul>
  34. 34. EIS <ul><li>Executive Information System </li></ul><ul><li>More powerful “leather-bound” version of MIS </li></ul><ul><li>Lets top managers “zoom out” to see the whole organisation, or drill down to see interesting details from specific regions, times, stores etc. </li></ul><ul><li>Expensive to maintain. </li></ul>
  35. 36. Other types of information systems used in organisations <ul><li>Office Automation System - Automates manual processes </li></ul>Manual Automated Filing cabinets Databases Carbon paper, mailbox Mail merge, email Memos Mailing Lists Typewriter Word processor Calculator Spreadsheet Dictating letters Voice recognition
  36. 37. Other types of information systems used in organisations <ul><li>Expert system – compiles the knowledge of expert humans to let non-experts make expert decisions. </li></ul><ul><li>Useful when real experts can’t be found. </li></ul><ul><li>Diagnose diseases, identify rocks, trouble-shoot faults in complex systems </li></ul><ul><li>Uses simple question & answer format to narrow down possibilities. </li></ul>
  37. 38. <ul><li>By Mark Kelly </li></ul><ul><li>McKinnon Secondary College </li></ul><ul><li>vceit.com </li></ul>IT APPLICATIONS SLIDESHOWS These slideshows may be freely used, modified or distributed by teachers and students anywhere on the planet (but not elsewhere). They may NOT be sold. They must NOT be redistributed if you modify them.

×