Itecn453 organizations student_ver

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

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?

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

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.


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.


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.


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

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


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.


Organizations

Organization’s Efficiency

Organizations and Information Systems

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

Management Information Systems

• Information technology and organizations influence one another• Complex relationship influenced by organization’s• Structure• Business processes• Politics• Culture• Environment, and •Management decisions

© Pearson Education 201212



THE TWO-WAY RELATIONSHIP BETWEEN ORGANIZATIONS AND INFORMATION TECHNOLOGY



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


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.



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?

End of Lecture 02

Itecn453 organizations student_ver

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