ITEC N453 Lecture 02

1. ITEC N453 – Information
Technology Practices
201302 - Week 02 - Lecture 02
• Information Systems
• Organizations and Organization’s efficiency
• Organizations and Information Systems
• Organization Inputs, Production Process and Outputs

2. Information System (IS)
• A System
• A group of components that work together to achieve a common
goal
• An Information System (IS):
• A group of components that work together to produce information
from data
• What is your favorite Information system?
• How does search engines work?

3. Types of IS
• Transaction processing systems (TPS)
• Management Information Systems (MIS)
• Decision support systems (DSS)
• Executive Support Systems (ESS)
• Office Automation Systems
Source: http://tutor2u.net/business/ict/intro_information_system_types.htm

4. Types of IS - ESS
• Executive Support Systems
• An Executive Support System ("ESS") is designed to help senior
management make strategic decisions. It gathers, analyses and
summarizes the key internal and external information used in the
business.
• A good way to think about an ESS is to imagine the senior
management team in an aircraft cockpit - with the instrument panel
showing them the status of all the key business activities. ESS
typically involve lots of data analysis and modeling tools such as
"what-if" analysis to help strategic decision-making.
Source: http://tutor2u.net/business/ict/intro_information_system_types.htm

5. Types of IS - MIS
• Management Information Systems A management
information system ("MIS")
• is mainly concerned with internal sources of information. MIS
usually take data from the transaction processing systems (see
below) and summaries it into a series of management reports.
• MIS reports tend to be used by middle management and
operational supervisors.
Source: http://tutor2u.net/business/ict/intro_information_system_types.htm

6. Types of IS - DSS
• Decision-Support Systems
• Decision-support systems ("DSS") are specifically designed to help
management make decisions in situations where there is
uncertainty about the possible outcomes of those decisions.
• DSS comprise tools and techniques to help gather relevant
information and analyze the options and alternatives. DSS often
involves use of complex spreadsheet and databases to create "what-
if" models.
Source: http://tutor2u.net/business/ict/intro_information_system_types.htm

7. Types of IS - KMS
• Knowledge Management Systems
• Knowledge Management Systems ("KMS") exist to help businesses
create and share information. These are typically used in a business
where employees create new knowledge and expertise - which can
then be shared by other people in the organization to create further
commercial opportunities.
• Good examples include firms of lawyers, accountants and management
consultants.
• KMS are built around systems which allow efficient categorization
and distribution of knowledge.
• For example, the knowledge itself might be contained in word
processing documents, spreadsheets, PowerPoint presentations.
internet pages or whatever. To share the knowledge, a KMS would
use group collaboration systems such as an intranet.
Source: http://tutor2u.net/business/ict/intro_information_system_types.htm

8. Types of IS – TPS
• Transaction Processing Systems
• As the name implies, Transaction Processing Systems ("TPS") are
designed to process routine transactions efficiently and accurately.
A business will have several (sometimes many) TPS; for example:
• Billing systems to send invoices to customers
• Systems to calculate the weekly and monthly payroll and tax payments
• Production and purchasing systems to calculate raw material
requirements
• Stock control systems to process all movements into, within and out of
the business
Source: http://tutor2u.net/business/ict/intro_information_system_types.htm

9. Types of IS –
• Office Automation Systems
• Office Automation Systems are systems that try to improve the
productivity of employees who need to process data and
information. Perhaps the best example is the wide range of software
systems that exist to improve the productivity of employees
working in an office (e.g. Microsoft Office XP) or systems that allow
employees to work from home or whilst on the move.
Source: http://tutor2u.net/business/ict/intro_information_system_types.htm

10. Organizations
Organization’s Efficiency
Organizations and Information
Systems

11. Organization efficiency
• What is Organization?
• ____________________________________________________
• What is Organization efficiency?
• The ____________ of an ____________ to produce desired
____________ with a ____________ expenditure of ____________
, ____________ , ____________ , ____________ , material, etc.
minimum money organization energy personnel capacity time results

12. Management Information Systems
Organizations and Information Systems
• Information technology and organizations
influence one another
• Complex relationship influenced by organization’s
• Structure
• Business processes
• Politics
• Culture
• Environment, and
• Management decisions
12 © Pearson Education 2012

13. Management Information Systems
Organizations and Information Systems
THE TWO-WAY
RELATIONSHIP
BETWEEN
ORGANIZATIONS
AND
INFORMATION
TECHNOLOGY
13 © Pearson Education 2012

14. Discussion
• How each factor might affect the relationship between
organizations and information technology? Provide an
Example for each factor
• Environment
• Culture
• Structure
• Business Processes
• Politics
• Management Decisions

15. Management Information Systems
Organizations and Information Systems
THE TECHNICAL MICROECONOMIC DEFINITION OF THE ORGANIZATION
In the microeconomic definition of organizations, capital and labor (the primary
production factors provided by the environment) are transformed by the firm through the
production process into products and services (outputs to the environment). The products
and services are consumed by the environment, which supplies additional capital and
labor as inputs in the feedback loop.
15 © Pearson Education 2012

16. Discussion
• Study the Previous Slides .. Then answer:
• What are the inputs from the environment according to the figure?
• Give few examples of such inputs.
• What do organizations output to the environment according to the
figure?
• Give few examples of such outputs
• Give example how outputs consumed by environment produce
more input to the organization?

17. End of Lecture
02
