INFORMATION

TECHNOLOGY SYSTEMS
Supporting Information
Processing
2-2 Introduction

Information Technology is a Part of

Almost Every Organization
• Some IT systems simply process transactions
• Some help managers make decisions
• Some support the interorganizational flow of
information
• Some support team work
2-3 Introduction

OUR FOCUS IN THIS CHAPTER

• Organizations and Their Structures
• The Nature of Information in an Organization
(and Decentralized Computing)
• IT systems in an Organization and the Tasks
They Perform
2-4 An Organization
THE TRADITIONAL
STRUCTURE OF AN
ORGANIZATION
STRATEGIC

MANAGEMENT
TACTICAL

OPERATIONAL

NONMANAGEMENT
2-5 An Organization

THE TRADITIONAL STRUCTURE OF AN

ORGANIZATION
1.STRATEGIC MGMT - provides an organization with
overall direction and guidance.
2.TACTICAL MGMT - develops the goals and strategies
outlined by strategic mgmt.
3.OPERATIONAL MGMT - manages and directs the
day-to-day operations.
4.NONMANAGEMENT - those people who actually
perform daily activities.
2-6 An Organization

Organizations Also Have Depth...

Within the pyramid, many organizations

structure according to:
(1) Function (marketing, accounting, etc.)
(2) Product line
2-7 Information

When Considering Information, You

Need to Understand...
• The concept of shared information through
decentralized computing
• The directional flow of information
• What information specifically describes
• The information-processing tasks your
organization undertakes
2-8 Information

SHARED INFORMATION AND

DECENTRALIZED COMPUTING
As late as the early 1980s, most organizations
exhibited centralized computing and isolated
information. That is...
●Large central mainframe computers that
performed all tasks.
●Separate files of information for each
application or system.
●So, computing power was centralized while
information remained isolated.
2-9 Information

SHARED INFORMATION AND

DECENTRALIZED COMPUTING
During the early to mid 1980s, most
organizations exhibited decentralized computing
and isolated information. That is...
●Smaller, more powerful computers that were
distributed to functional business areas.
●These computers still maintained separate files
of information for each application.
●So, computing power was decentralized while
information remained isolated.
2-10 Information

SHARED INFORMATION AND

DECENTRALIZED COMPUTING
Today, organizations have maintained their
decentralized computing while bringing together
all the organization’s information.
●This bringing together of information is
accomplished by using databases.
●Databases support the concept of shared
information.
●So, computing power is now decentralized and
information is shared.
2-11 Information

HOW INFORMATION FLOWS

• Upward Flow of Information - describes the current
state of the organization based on its daily
transactions.
• Downward Flow of Information - consists of the
strategies, goals, and directives that originate at one
level and are passed to lower levels.
• Horizontal Flow of Information - between functional
business units and work teams.
2-12 Information
WHAT INFORMATION
DESCRIBES
• INTERNAL INFORMATION - describes specific
operational aspects of the organization.
• EXTERNAL INFORMATION - describes the
environment surrounding the organization.
• OBJECTIVE INFORMATION - quantifiably describes
something that is known.
• SUBJECTIVE INFORMATION - attempts to describe
something that is currently unknown.
2-13 Information

INFORMATION-PROCESSING
TASKS
1.Capturing information - at its point of origin.
2.Conveying information - in its most useful
form.
3.Creating information - to obtain new
information.
4.Cradling information - for use at a later time.
5.Communicating information - to other
people or another location.
2-14 Information

TWO WAYS OF CREATING

INFORMATION
1.TRANSACTION PROCESSING - the
processing of transactions that occur within an
organization.
– Example: computing payroll and sales tax
2.ANALYTICAL PROCESSING - creating
information to support your decision-making
tasks.
– Example: how to allocate Resources ?
2-15 IT Systems

THE SEVEN IT SYSTEMS IN AN

ORGANIZATION
1.Transaction Processing Systems (TPS)
2.Customer Integrated Systems (CIS)
3.Management Information Systems (MIS)
4.Workgroup Support Systems (WSS)
5.Decision Support Systems (DSS) & Artificial
Intelligence (AI)
6.Executive Information Systems (EIS)
7.Interorganizational Systems (IOS)
2-16 TPSs

TRANSACTION PROCESSING
SYSTEM (TPS)...
a system that processes transactions that
occur within an organization.
Capturing information
Creating information
Cradling information
Conveying information (secondary)
2-17 TPSs

TPS CHARACTERISTICS
• Are at the very heart of every
organization.
• Provide the primary interface to
customers.
• Found in all functions of an
organization.
• If they fail, the whole organization
suffers.
2-18 CISs

CUSTOMER INTEGRATED
SYSTEM (CIS)...
an extension of a TPS that places technology in
the hands of an organization’s customers and
allows them to process their own transactions.
Capturing information
Creating information
Cradling information
Communicating information
2-19 CISs

CIS CHARACTERISTICS
• Are at the very heart of every organization.
• Are the new primary interface to customers.
• Represent a further decentralization of
computing power by placing that power in
the hands of customers.
• Will forever change the relationship between
organization and customer.
2-20 MISs

MANAGEMENT INFORMATION
SYSTEM (MIS)...
a system that provides periodic and
predetermined reports that summarize
information within a database.
Creating information
Conveying information
2-21 MISs

MIS CHARACTERISTICS
• Alert people to the existence of problems or
opportunities.
• Report Types:
– PERIODIC - produced at a predetermined time interval.
– SUMMARIZED - aggregate information in some way.
– EXCEPTION - show only a subset of available information.
– COMPARATIVE - show two or more sets of similar
information.
2-22 WSSs

WORKGROUP SUPPORT
SYSTEM (WSS)...
a system that is designed specifically to improve
the performance of teams by supporting the
sharing and flow of information.
Communicating information
2-23 WSSs

WSS CHARACTERISTICS
• Supports the sharing, dissemination, and flow
of information.
• Supports both:
– Project teams - that solve a specific problem or
take advantage of a specific opportunity and then
decide to move on to other projects.
– Permanent teams - people from all departments
that perform a flow of work consistently.
• Contains groupware.
2-24

GROUPWARE
the popular term for the software that
supports the collaborative efforts of a team.

Groupware Supports Three Functions

1. Team Dynamics
2. Document Management
3. Applications Development
2-25 WSSs

GROUPWARE SUPPORT FOR

TEAM DYNAMICS
• ELECTRONIC MESSAGING - the
software component that helps team
members communicate.
• ELECTRONIC MEETING SUPPORT - the
component that helps you schedule
meetings and carry out those meetings.
2-26 WSSs

ELECTRONIC MEETING
SUPPORT SOFTWARE
• GROUP SCHEDULING - maintains day-to-day
electronic calendars of team members and schedules
optimal meeting times.
• ELECTRONIC MEETING - lets a team have a “virtual”
meeting through IT.
• VIDEOCONFERENCING - allows a team to have a
“face-to-face” meeting when members are
geographically dispersed.
• WHITEBOARD - lets team members meet and
interactively edit and share documents.
2-27 WSSs

GROUPWARE SUPPORT FOR

DOCUMENT MANAGEMENT
• GROUP DOCUMENT DATABASE - a
powerful storage facility for organizing and
managing all documents related to specific
teams.
– Contains documents from many teams
– Supports many levels of security
– Can store information in a variety of forms
2-29 DSS & AI
DECISION SUPPORT SYSTEM
(DSS) & ARTIFICIAL
INTELLIGENCE (AI)
DSS - a highly flexible and interactive IT system
that is designed to support decision making
when the problem is not structured.
AI - the science of making machines imitate
human thinking and behavior.
Creating information
Conveying information (secondary)
2-31 EISs

EXECUTIVE INFORMATION
SYSTEM (EIS)...
a highly interactive MIS combined with decision
support systems and artificial intelligence for
helping managers identify and address problems
and opportunities.
Creating information
Conveying information
2-32 EISs

EIS CHARACTERISTICS
• Make use of a data warehouse.
• Support drill down capabilities.
• Help identify information responsibility.
• Use DSS and AI tools.
• Provide access to a variety of information.
2-34 IOSs

INTERORGANIZATIONAL
SYSTEM (IOS)...
automates the flow of information between
organizations to support the planning, design,
development, production, and delivery of
products and services.
Communicating information
2-35 IOSs

IOS CHARACTERISTICS
• Supports ELECTRONIC DATA
INTERCHANGE (EDI) - the direct computer-to-
computer transfer of transaction information
contained in standard business documents.
• Allows many organizations to create an
economies of scale in technology.
• Provides a way for organizations to team up
and create new products and services.
2-36

TO SUMMARIZE
• Organizations:
– Consist of various levels of management and non management
employees
– Have depth

• Shared Information Through Decentralized

Computing
– an organization’s information is made available to anyone who
needs it (shared information).
– Computing power is spread throughout the organization
(decentralized computing).
2-37

TO SUMMARIZE
• Information in an organization flows upward,
downward, and horizontally.
• Information can be internal, external, objective,
subjective, or some combination of the four.
• Information-processing tasks include capturing,
conveying, creating, cradling, and communicating.
• Transaction processing and analytical processing are
both ways to create information.
2-38

TO SUMMARIZE
CAPTURE CONVEY CREATE CRADLE COMMU-
NICATE
TPS XX XX XX
CIS XX XX XX XX
MIS XX XX
WSS XX
DSS&AI XX
EIS XX XX
IOS XX