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Lecturer: Dr Richard Boateng
EmaiI: richard@pearIrichards.org
Feb 3
rd
2010
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An !"#$%&'(!$")*+*(,& (|S) ls an arrangement ot people,
oata, processes, ano lntormatlon tecbnology tbat lnteract to
collect, process, store, ano provloe as output tbe lntormatlon
neeoeo to support an organlzatlon.
-"#$%&'(!$")(,./"$0$1+ ls a contemporary term tbat
oescrlbes tbe comblnatlon ot computer tecbnology (baroware
ano sottware) wltb telecommunlcatlons tecbnology (oata,
lmage, ano volce networks).
An !"#$%&'(!$")*+*(,& (|S) ls an arrangement ot people,
oata, processes, ano lntormatlon tecbnology tbat lnteract to
collect, process, store, ano provloe as output tbe lntormatlon
neeoeo to support an organlzatlon.
-"#$%&'(!$")(,./"$0$1+ ls a contemporary term tbat
oescrlbes tbe comblnatlon ot computer tecbnology (baroware
ano sottware) wltb telecommunlcatlons tecbnology (oata,
lmage, ano volce networks).
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,-./'&()(01(21%&.'#%&3(4-&5(67(2176'8#%-61(#13(!688/1-9#%-61(:&9"16;6.-&<
=>2?
Source: AdapLed from uuncome and Peeks (2001)
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Information Architecture and Information TechnoIogy Infrastructure
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! Data: Streams ot raw tacts representlng events
sucb as buslness transactlons
! |ntormatlon: Clusters ot tacts tbat are meanlngtul
ano usetul to buman belngs ln tbe processes sucb
as maklng oeclslons
! Data: Streams ot raw tacts representlng events
sucb as buslness transactlons
! |ntormatlon: Clusters ot tacts tbat are meanlngtul
ano usetul to buman belngs ln tbe processes sucb
as maklng oeclslons
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What Is an Information System?
Data and Information
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INPUT OUTPUT PROCESS
Activities in an Information System
INPUT OUTPUT PROCESS
FEEDBACK
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Functions of an Information System
Figure 1-3
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More Qu
1. Wbat are tbe major types ot systems ln a buslness?
Wbat role oo tbey play?
2. How oo lntormatlon systems support tbe major
buslness tunctlons: sales ano marketlng,
manutacturlng ano proouctlon, tlnance ano
accountlng, ano buman resources?
1. Wbat are tbe major types ot systems ln a buslness?
Wbat role oo tbey play?
2. How oo lntormatlon systems support tbe major
buslness tunctlons: sales ano marketlng,
manutacturlng ano proouctlon, tlnance ano
accountlng, ano buman resources?
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Six Types of Information Systems
3. Management Information
Systems (MIS)
2. Decision Support
Systems (DSS)
1. Executive Support
System (ESS)
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6. Transaction Process
Systems (TPS)
5. Office Systems (OS)
3. Management Information
Systems (MIS)
4. KnowIedge Work
Systems (OS)
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SAP ERP:
Human Resource Systems - Leave Request
ExampIe
Executive Support Systems - SaIes PIanning
and Forecasting
http://www.sap.com/soIutions/business-suite/erp/demos/index.epx
SAP ERP:
Human Resource Systems - Leave Request
ExampIe
Executive Support Systems - SaIes PIanning
and Forecasting
http://www.sap.com/soIutions/business-suite/erp/demos/index.epx
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A (%'"*'.(!$")2%$.,**!"1)*+*(,& (TPS) ls an lntormatlon
system tbat captures ano processes oata about buslness
transactlons.
A &'"'1,&,"()!"#$%&'(!$")*+*(,& (M|S) ls an
lntormatlon system tbat provloes tor management-orlenteo
reportlng baseo on transactlon processlng ano operatlons ot
tbe organlzatlon.
A 3,.!*!$")*422$%()*+*(,& (DSS) ls an lntormatlon system
tbat eltber belps to loentlty oeclslon maklng opportunltles or
provloes lntormatlon to belp make oeclslons.
A (%'"*'.(!$")2%$.,**!"1)*+*(,& (TPS) ls an lntormatlon
system tbat captures ano processes oata about buslness
transactlons.
A &'"'1,&,"()!"#$%&'(!$")*+*(,& (M|S) ls an
lntormatlon system tbat provloes tor management-orlenteo
reportlng baseo on transactlon processlng ano operatlons ot
tbe organlzatlon.
A 3,.!*!$")*422$%()*+*(,& (DSS) ls an lntormatlon system
tbat eltber belps to loentlty oeclslon maklng opportunltles or
provloes lntormatlon to belp make oeclslons.
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An ,52,%()*+*(,& ls an lntormatlon system tbat captures
tbe epertlse ot workers ano tben slmulates tbat epertlse to
tbe benetlt ot noneperts.
A .$&&4"!.'(!$"*)'"3).$00'6$%'(!$")*+*(,& ls an
lntormatlon system tbat enables more ettectlve
communlcatlons between workers, partners, customers, ano
suppllers to enbance tbelr ablllty to collaborate.
An $##!.,)'4($&'(!$")*+*(,& ls an lntormatlon system tbat
supports tbe wloe range ot buslness ottlce actlvltles tbat
provloe tor lmproveo work tlow between workers.
An ,52,%()*+*(,& ls an lntormatlon system tbat captures
tbe epertlse ot workers ano tben slmulates tbat epertlse to
tbe benetlt ot noneperts.
A .$&&4"!.'(!$"*)'"3).$00'6$%'(!$")*+*(,& ls an
lntormatlon system tbat enables more ettectlve
communlcatlons between workers, partners, customers, ano
suppllers to enbance tbelr ablllty to collaborate.
An $##!.,)'4($&'(!$")*+*(,& ls an lntormatlon system tbat
supports tbe wloe range ot buslness ottlce actlvltles tbat
provloe tor lmproveo work tlow between workers.
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! |nternatlonal network ot networks
! Unlversal tecbnology plattorm: Any computer can
communlcate wltb any otber computer
! Worlo Wloe Web ano Websltes
The Internet
! |nternatlonal network ot networks
! Unlversal tecbnology plattorm: Any computer can
communlcate wltb any otber computer
! Worlo Wloe Web ano Websltes
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4 Major Systems Detlnlng tbe Dlgltal Flrm
! Supply cbaln management systems
! Customer relatlonsblp management systems
! Lnterprlse systems
! Knowleoge management systems
The Competitive Business Environment and the Emerging DigitaI Firm
4 Major Systems Detlnlng tbe Dlgltal Flrm
! Supply cbaln management systems
! Customer relatlonsblp management systems
! Lnterprlse systems
! Knowleoge management systems
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! vldeo Sesslons
! l-800 llowers (hLLp://www.1800flowers.com)
for vldeo: hLLp://news.zdneL.com/2422-12794_22-334892.hLml
! 8lue nlle
(hLLp://www.bluenlle.com)
for vldeo: hLLp://news.zdneL.com/2422-12794_22-334930.hLml
! vldeo Sesslons
! l-800 llowers (hLLp://www.1800flowers.com)
for vldeo: hLLp://news.zdneL.com/2422-12794_22-334892.hLml
! 8lue nlle
(hLLp://www.bluenlle.com)
for vldeo: hLLp://news.zdneL.com/2422-12794_22-334930.hLml
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! I-800 FIowers
! A network of 9000 fIorists
! MobiIe (device) service
! CaII Centre
! BIogs
User Experience
- 75 % Customers from Web
- VisuaI Experience
- Portray the beauty of products
- Easy Experience, comfortabIe
- Efficient
TOWARD THE DIGITAL FIRM
BIue NiIe BIue NiIe
60,000 jeweIry 60,000 jeweIry
33--4 days deIivery times 4 days deIivery times
Unique products need unique Unique products need unique
technoIogy technoIogy
User Experience User Experience
-- Understand Gender Understand Gender
Preferences Preferences
- Women do the seIection Men
do the buying
-- Competitive Price Competitive Price -- no no
middIemen/commissions middIemen/commissions
-- AvaiIabiIity: 24/7 AvaiIabiIity: 24/7
! I-800 FIowers
! A network of 9000 fIorists
! MobiIe (device) service
! CaII Centre
! BIogs
User Experience
- 75 % Customers from Web
- VisuaI Experience
- Portray the beauty of products
- Easy Experience, comfortabIe
- Efficient
BIue NiIe BIue NiIe
60,000 jeweIry 60,000 jeweIry
33--4 days deIivery times 4 days deIivery times
Unique products need unique Unique products need unique
technoIogy technoIogy
User Experience User Experience
-- Understand Gender Understand Gender
Preferences Preferences
- Women do the seIection Men
do the buying
-- Competitive Price Competitive Price -- no no
middIemen/commissions middIemen/commissions
-- AvaiIabiIity: 24/7 AvaiIabiIity: 24/7
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9+2%(+*()#*+,&"'-+#(./0'%&0
EnabIing
Processes and
Functions in
Organizations
Supporting
Processes and
Functions in
Organizations
The websites of these
companies support the saIe
of eIectronic products which
are primariIy done in the
shops
The websites of these companies enabIe
the saIe of products. These companies
primariIy do not have any
shops/showrooms for consumers or may
faiI to operate efficientIy without
their websites.
!"#"$%&%#'()#*+,&"'-+#(./0'%&0
! Llectronlc Commerce: Sbarlng buslness lntormatlon,
managlng buslness relatlonsblps ano tacllltatlng transactlons wltb
|nternet tecbnology. (llnklng buyers ano sellers).
! Llectronlc 8uslness: Lecutlng all tbe tlrm's buslness
processes wltb |nternet tecbnology. (sales, tlnance, buman
resources, manutacturlng)
! |ntranet: 8uslness bullos prlvate, secure network baseo on
|nternet tecbnology
! Ltranet: Ltenslon ot lntranet to autborlzeo eternal users
! Llectronlc Commerce: Sbarlng buslness lntormatlon,
managlng buslness relatlonsblps ano tacllltatlng transactlons wltb
|nternet tecbnology. (llnklng buyers ano sellers).
! Llectronlc 8uslness: Lecutlng all tbe tlrm's buslness
processes wltb |nternet tecbnology. (sales, tlnance, buman
resources, manutacturlng)
! |ntranet: 8uslness bullos prlvate, secure network baseo on
|nternet tecbnology
! Ltranet: Ltenslon ot lntranet to autborlzeo eternal users
!"#"$%&%#'()#*+,&"'-+#(./0'%&0
Transtormatlon ot tbe 8uslness Lnterprlse
! Flattenlng
! Decentrallzatlon
! Flelblllty
! Locatlon lnoepenoence
! Low transactlon ano coorolnatlon costs
! Lmpowerment
! Collaboratlve work ano teamwork
Transtormatlon ot tbe 8uslness Lnterprlse
! Flattenlng
! Decentrallzatlon
! Flelblllty
! Locatlon lnoepenoence
! Low transactlon ano coorolnatlon costs
! Lmpowerment
! Collaboratlve work ano teamwork
!"#"$%&%#'()#*+,&"'-+#(./0'%&0
O/<-1&<<(C&'<$&9%-B&(67(2176'8#%-61(?H<%&8<
ORGANIZATION ORGANIZATION TECHNOLOGY TECHNOLOGY
INFORMATION INFORMATION
SYSTEMS SYSTEMS
PeopIe
Structure
Procedures
PoIitics
CuIture
Hardware
Software
Storage
MANAGEMENT MANAGEMENT
INFORMATION INFORMATION
SYSTEMS SYSTEMS
PeopIe
Structure
Procedures
PoIitics
CuIture
Hardware
Software
Storage
Senior, middIe, operationaI
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Key Llements:
! People: Managers, knowleoge workers, oata
workers, proouctlon or servlce workers
! Structure: Organlzatlon cbart , groups ot speclallsts,
prooucts, geograpby
Organizations
Key Llements:
! People: Managers, knowleoge workers, oata
workers, proouctlon or servlce workers
! Structure: Organlzatlon cbart , groups ot speclallsts,
prooucts, geograpby
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! Operatlng proceoures: Stanoaro operatlng proceoures
(SOP, rules tor actlon)
! Polltlcs: Power to persuaoe, get tblngs oone
! Culture: Customs ot bebavlor
Organizations
! Operatlng proceoures: Stanoaro operatlng proceoures
(SOP, rules tor actlon)
! Polltlcs: Power to persuaoe, get tblngs oone
! Culture: Customs ot bebavlor
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Levels:
! Senlor managers: make long-range strateglc oeclslons
about prooucts ano servlces
! Mloole managers: Carry out tbe programs ano plans ot
senlor management
! Operatlonal managers: monltor tbe tlrm's oally actlvltles
Management
Levels:
! Senlor managers: make long-range strateglc oeclslons
about prooucts ano servlces
! Mloole managers: Carry out tbe programs ano plans ot
senlor management
! Operatlonal managers: monltor tbe tlrm's oally actlvltles
!"#"$%&%#'()#*+,&"'-+#(./0'%&0
Tools managers use to cope wltb cbange
! Haroware: Pbyslcal equlpment
! Sottware: Detalleo preprogrammeo lnstructlons
! Storage: Pbyslcal meola tor
storlng oata ano tbe sottware
Computer TechnoIogy
Tools managers use to cope wltb cbange
! Haroware: Pbyslcal equlpment
! Sottware: Detalleo preprogrammeo lnstructlons
! Storage: Pbyslcal meola tor
storlng oata ano tbe sottware
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03(4$"H"$5- 03(4$"H"$5-
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.($,13'(/%4./%/(0(.$34D"E(/%4./%$1%/"F"$4D"E(%$7("3
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L1,%*"F"$4D%"#%5163%9"32:
HighIy networked
decentraIization
Low
DigitaIization
Less network
centraIization
High
DigitaIization
!"#"$%&%#'()#*+,&"'-+#(./0'%&0
!"#"$%&"'(%)* !"#"$%&"'(%)* ++ ,,,-."'("/-012 ,,,-."'("/-012
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Further ExampIes of the Major
Types of Systems in
Organizations
Further ExampIes of the Major
Types of Systems in
Organizations
!"#"$%&%#'()#*+,&"'-+#(./0'%&0
Four powertul worlowloe cbanges tbat bave altereo tbe
buslness envlronment:
1. Lmergence ot tbe Global Lconomy
2. Transtormatlon ot |noustrlal Lconomles
3. Transtormatlon ot tbe 8uslness Lnterprlse
4. Tbe Lmerglng Dlgltal Flrm
Four powertul worlowloe cbanges tbat bave altereo tbe
buslness envlronment:
1. Lmergence ot tbe Global Lconomy
2. Transtormatlon ot |noustrlal Lconomles
3. Transtormatlon ot tbe 8uslness Lnterprlse
4. Tbe Lmerglng Dlgltal Flrm
!"#"$%&%#'()#*+,&"'-+#(./0'%&0
Major Types of Systems in Organizations
TypicaI AppIications of Transaction Processing Systems (TPS)
!"#"$%&%#'()#*+,&"'-+#(./0'%&0
Major Types of Systems in Organizations
How management information systems obtain their data
from the organization's TPS
!"#"$%&%#'()#*+,&"'-+#(./0'%&0
Major Types of Systems in Organizations
Transactlon Processlng Systems (TPS)
! 8aslc buslness systems tbat serve tbe organlzatlon's
operatlonal level
! |nput:Transactlons, events
! Processlng: Sortlng, llstlng, merglng, upoatlng
! Output: Detalleo reports, llsts, summarles
! Users: Operatlons personnel, supervlsors
Four Major Types of Systems
Transactlon Processlng Systems (TPS)
! 8aslc buslness systems tbat serve tbe organlzatlon's
operatlonal level
! |nput:Transactlons, events
! Processlng: Sortlng, llstlng, merglng, upoatlng
! Output: Detalleo reports, llsts, summarles
! Users: Operatlons personnel, supervlsors
!"#"$%&%#'()#*+,&"'-+#(./0'%&0
Enterprise Applications
Knowleoge Management Systems (KMS)
! Collect relevant knowleoge ano eperlence ln tlrm to
support buslness processes ano management oeclslons
! Manage ano olstrlbute oocuments ano otber olgltal
knowleoge objects
KnowIedge Management Systems in the Enterprise
Knowleoge Management Systems (KMS)
! Collect relevant knowleoge ano eperlence ln tlrm to
support buslness processes ano management oeclslons
! Manage ano olstrlbute oocuments ano otber olgltal
knowleoge objects
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Enterprise Applications
Role ot Knowleoge Management Systems
! Acqulre knowleoge
! Store knowleoge
! Dlstrlbute knowleoge
! Apply knowleoge
KnowIedge Management Systems in the Enterprise
Role ot Knowleoge Management Systems
! Acqulre knowleoge
! Store knowleoge
! Dlstrlbute knowleoge
! Apply knowleoge
!"#"$%&%#'()#*+,&"'-+#(./0'%&0
Major Types of Systems in Organizations
Management |ntormatlon Systems (M|S)
! Serve management level, provloe reports ano access to
company oata
! |nput: Summary transactlon oata, blgb-volume oata, slmple
mooels
! Processlng: Routlne reports, slmple mooels, low-level
analysls
! Output: Summary ano eceptlon reports
! Users: Mloole managers
Four Major Types of Systems
Management |ntormatlon Systems (M|S)
! Serve management level, provloe reports ano access to
company oata
! |nput: Summary transactlon oata, blgb-volume oata, slmple
mooels
! Processlng: Routlne reports, slmple mooels, low-level
analysls
! Output: Summary ano eceptlon reports
! Users: Mloole managers
!"#"$%&%#'()#*+,&"'-+#(./0'%&0
Major Types of Systems in Organizations
Declslon-Support Systems (DSS)
! Serve management level wltb oata analysls tor maklng
oeclslons
! |nput: Low-volume oata or masslve oatabases, analytlc
mooels, ano oata analysls tools
! Processlng: |nteractlve, slmulatlons, analysls
! Output: Speclal reports, oeclslon analyses, responses to
querles
! Users: Protesslonals, statt managers
Four Major Types of Systems
Declslon-Support Systems (DSS)
! Serve management level wltb oata analysls tor maklng
oeclslons
! |nput: Low-volume oata or masslve oatabases, analytlc
mooels, ano oata analysls tools
! Processlng: |nteractlve, slmulatlons, analysls
! Output: Speclal reports, oeclslon analyses, responses to
querles
! Users: Protesslonals, statt managers
!"#"$%&%#'()#*+,&"'-+#(./0'%&0
Major Types of Systems in Organizations
Lecutlve Support Systems (LSS)
! Provloe communlcatlons ano computlng envlronment tbat
serves tbe organlzatlon's strateglc level
! |nput: Lternal ano lnternal aggregate oata
! Processlng: Grapblcs, slmulatlons, lnteractlve
! Output: Projectlons, responses to querles
! Users: Senlor Managers
Four Major Types of Systems
Lecutlve Support Systems (LSS)
! Provloe communlcatlons ano computlng envlronment tbat
serves tbe organlzatlon's strateglc level
! |nput: Lternal ano lnternal aggregate oata
! Processlng: Grapblcs, slmulatlons, lnteractlve
! Output: Projectlons, responses to querles
! Users: Senlor Managers
!"#"$%&%#'()#*+,&"'-+#(./0'%&0
Major Types of Systems in Organizations
ModeI of a typicaI executive support system
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! !"#$%&'()&*(+&,-./0$-$1
! Contact: rlcbaro@pearlrlcbaros.org
! Webslte: www.pearlrlcbaros.org
48
! !"#$%&'()&*(+&,-./0$-$1
! Contact: rlcbaro@pearlrlcbaros.org
! Webslte: www.pearlrlcbaros.org