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I. Ch 11 Information Systems Lecture Outline
A. Competencies pg 300
1. Explain how organizations can be structure according to five functions and three management levels. 2. Describe how information flows in an organization. 3. Distinguish among a transaction processing system, a management information system, a decision support system, and an executive support system.
4. Distinguish between office automation systems and knowledge work systems.
5. Explain the difference between data workers and knowledge workers.
B. Introduction pg 301
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Good information is essential to help run organizations.
A typical use of computers in organizations is to help record events, but less obvious is the help they provide in making business decisions. Competent end users need to understand how the information flows in an organization as it moves through the organization’s different
functional areas and management levels. They need to be aware of the different types of computer-based information systems, including transaction processing systems, management information systems, decision support systems and executive support systems.
They also need to understand the role and importance of databases to support each level or type of information system.
Be sure to look over the images comparing Information Flows and Information Systems. Information flows both vertically and
horizontally through the organization. Information systems include such ones as ESS, DSS, MIS, and TPS systems.
C. Organizational Information Flow pg 302
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In large or medium firms, computerized systems are used to track transactions and day to day business operations, as well as supporting the information flow throughout the organization.
The text uses a hypothetical organization called “HealthWise” to demonstrate the key components of information system use in a business.
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a) Functions
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Depending on the services or products they provide, most organizations have the following functions:
(1) Accounting
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Records all financial activity from billing customers to paying employees
(2) Marketing
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Plans, prices, promotes, sells, and distributes the goods and services
(3) Human Resources
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Hiring, training, promoting the employees
(4) Production
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Creates finished goods and services
(5) Research
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Identifies, investigates, and develops new products and services
b) Management Levels
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Most people in an organization are NOT managers
The managers do the PLOC – planning, leading, organizing, and controlling.
Typical management levels include:
(1) Supervisors
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Manage and monitor non management employees
Responsible for operational matters Monitor day to day matters
(2) Middle management
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Deal with control, (tactical) planning and decision making
They implement the long term goals of the organization
(3) Top management
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Focus on long range planning (aka strategic planning).
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Need to plan for future growth and direction of organization
c) Information Flow
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Top management needs summarized information They also need information from outside the firm.
Mid level managers need summarized data for shorter time periods: weeks or months
They also need budget projections as well as ways to evaluate the performance of supervisors.
Information needs to flow horizontally: from function to function
Information also needs to flow vertically – from the non-management employees all the way to the top managers.
D. Computer-based Information Systems pg 306
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Almost all organizations have computer-based information systems. They may have different names for these systems, but they fall into the following categories:
a) ESS (aka EIS)
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Executive Information Systems (aka Executive Information Systems)
Interface is easy to use
Information is highly summarized
Helps to oversee entire company’s operations and to develop strategic plans
Combine internal data from TPS and MIS with external data
b) DSS
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Decision Support System A flexible tool for analysts
Helps middle level managers and others to analyze a wide range of problems, such as the effectiveness of events and trends outside the organization
DSS pulls information from TPS system
c) MIS
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Management Information System Summarizes the TPS data
Provides standardized reports to middle management Such reports may include weekly sales and production schedules
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