• Business organizations are today facing a period of rapid “computerization “of almost all functions .• The rapid growth of computer use in business, government and the militaryservice has led to much speculation concerning the impact computers will haveon the using organisations. Structure change • This point of view is based on the tendency for an increasing number of computer personnel to report directly to top management • shows an increasing high-level involvement in this function and supports the idea that a "new management" is evolving.
How Computer-Based Information Systems Affect the Organizational Hierarchy Middle management•The typical decision situation at the middle management level is highlystructured• These decisions are composed of identifiable quantified elements capableof being rigorously manipulated.
• Reducing the role of the middle manager, the computer has madepossible the expansion of existing operations and has resulted in theaddition of middle management positions Centralization• That a computerized data system can provide one person in a centralposition with the total information needed for decision-making and control.• computers have become much more accessible, understandable, and,easier to use. Because of teleprocessing, time sharing, and user-orientedcomputer languages, top managers are now able to use computers directly.
Business Information Systems Types Transaction processing systems E-commerce systems Management information systems Decision support systems Expert systems
Transactions Processing Systems (TPS)An organized collection of people, procedures, software,databases, and devices used to record completed forbusiness related exchanges Payroll Example Hours worked Payroll Payroll transaction checks Pay processing rate
E-Commerce SystemPurchase Order - Traditional E-commerce • Involves any business transaction executed electronically • Conducting business on-line Purchase Order – E-commerce
Management Information Systems An MIS is… An organized collection of people, procedures, software, databases, and devices used to provide routine information to managers and decision makers Decision Support Systems A DSS is… An organized collection of people, procedures, software, databases, and devices used to support problem-specific decision making A DSS helps a manger “do the right thing”
Expert Systems An expert system is… A computer application that performs a task that would otherwise be performed by a human expert gives the computer the ability to make suggestions and to act like an expert in a particular field Examples: diagnose human illnesses, make financial forecasts, schedule routes for delivery vehicles Expert systems typically include “artificial intelligence”
Artificial Intelligence (1) The branch of computer science concerned with making computers behave like humans. The term was coined in 1956 by John McCarthy at the Massachusetts Institute of Technology. Artificial intelligence includes ; games playing expert systems natural language neural networks robotics
Conclusion Computers have tremendously improved the way businesses operate in their respective industries. Technology hasadvanced so remarkably that those who are not using computers in their business are at a major disadvantage against their competitors