Lecture 1 – Organisations and Information Information Systems and Organisations

Systems

Title of Topic Topic 1 - 1.2

Scope and Coverage

This topic will cover:

• Data, Information and Knowledge

• Uses and importance of Information Systems (IS)

to organisations

Information Systems and Organisations

Topic 1:
Organisations and Information Systems © NCC Education Limited

Title of Topic Topic 1 - 1.3 Title of Topic Topic 1 - 1.4

Learning Objectives Contents

By the end of this topic students will be able to: • Organisational forms and functions

• Explain ways in which data, information and
knowledge are used in organisations
• Appreciate how Information Systems influence the
nature and success of organisations
• Definitions of data, information and knowledge
• Information Systems classification and influence on
organisations structures and activities

Title of Topic Topic 1 - 1.5 Title of Topic Topic 1 - 1.6

Organisational Forms and Functions Specialisation in Organisations

• Organisations differ in form and structure, and in
the way they are managed.... Working practices
may also be different
• It is important to consider form, structure, type of
organisation before considering the use of IS
• Note that an IS suitable for one organisation may
not be appropriate for another
• The descriptions presented here are intended to
bring out key common themes
• Once organisations grow beyond a certain size,
specialisation is essential for effective management
• This leads to departments with specialist functions
(finance, human resources, sales...)
• In larger and multi/transnational organisations,
divisions based upon different markets may
develop
• There is now a greater need for IS, and these tend
to fall into certain broad classifications

V1.0 Visuals Handout – Page 1

Lecture 1 – Organisations and Information Information Systems and Organisations
Systems

Title of Topic Topic 1 - 1.7 Title of Topic Topic 1 - 1.8

Organisational Hierarchies Ways of Thinking About Data,

Information and Knowledge
Strategic PYRAMID
Planning Budgets

Extended Knowledge FUNNEL

Decisions Anthony’s
Tactical Profit
measures
Triangle

Knowledge Information Data

Credit
Knowledge control Information

Processes
Financial
Operational transactions Data
HR FINANCE MARKETNG ….. ….. e.t.c.

Functional Activities

Title of Topic Topic 1 - 1.9 Title of Topic Topic 1 - 1.10

Data, Information and Knowledge DIKAR Model

• Data Numbers Account balance

• Data
• Information Processed by IS
• Information Processed or Account credit
• Knowledge
meaningful data history
• Actions Processed by IS
+ management actions
• Results
• Knowledge Meaningful Choices for
information for ‘chasing’ payment
decisions/actions

Title of Topic Topic 1 - 1.11 Title of Topic Topic 1 - 1.12

Management Information System

Management View
(MIS) in Essence (Traditional)
Environmental Future Direction
Information
Senior Transaction
Board
Management Costs
Transaction Recording Performance Monitoring
Set Targets Measure Performance

Departmental Managers Middle

Management Customer Margins &
Information Profitability
Set Targets Measure Performance

Enterprise Analysis
Branch/Department Operational
Managers Management

V1.0 Visuals Handout – Page 2

Lecture 1 – Organisations and Information Information Systems and Organisations
Systems

Title of Topic Topic 1 - 1.13 Title of Topic Topic 1 - 1.14

Departmental Information Systems Broad Classification of Information

Systems - 1
Monthly
Sales
Weekly/Monthly • Operational Payroll IS, Financial Accounting IS,
Tactical
Report Generation IS, CRM
Credit
Knowledge Control
Daily/Hourly • Planning/Monitoring/Evaluation:
Operational
Financial
transactions MIS, Enterprise Resource Planning
Departments Finance HR Operations Sales ... e.t.c. (ERP)
Financial Personnel Stock Sales
• Decision Support
Accounts Records Control Records Enterprise/
information Decision Support System (DSS), MIS
Sales
MRP Forecasting System
Ledger

Title of Topic Topic 1 - 1.15 Title of Topic Topic 1 - 1.16

Broad Classification of Information

Systems - 2 A New IS Affects All Users
Used by: User ... Through
• Individuals (staff, customers, managers)
• Individuals • Automating information tasks
• Groups/Departments (HR, Finance)
• Whole Organisations i.e. enterprise wide IS • Groups/Departments • Eliminating need for
management intervention
• Inter-organisation i.e. between partner organisations
• Whole Organisations
• Communities (e.g. organisations in the same • Providing new
communications paths
domain) • Inter-organisation

• Routine decision-making
• Communities

Title of Topic Topic 1 - 1.17 Title of Topic Topic 1 - 1.18

Examples Organisational Impacts

• Individual – Use e.g. Office’ software
• Downsizing (e.g. staff reduction)
• Group/Department e.g. Workflow Management • Outsourcing
• Restructuring
• Whole Organisation e.g. Enterprise Systems
• Removing management layers
• Inter-organisation e.g. Business to Business, eCommerce • Changing and eliminating work processes
• Communities e.g. Websites, Portals and CRM • Changed behaviours (e.g. Information sharing)
• New modes of working (e.g. ‘virtual’ and home-
working, hot-desking, mobile working etc.)

V1.0 Visuals Handout – Page 3

Lecture 1 – Organisations and Information Information Systems and Organisations
Systems

Title of Topic Topic 1 - 1.19 Title of Topic Topic 1 - 1.20

Interacting Components – P O T References

• Boddy, D., Boonstra ,A., Kennedy, G. (2008) Managing

People Organisation Information Systems : strategy and organisation 3 rd ed. FT
Pearson. ISBN-13: 978-0273716815

Technology

Topic 1 – Organisations and Information

Systems

Any Questions?

V1.0 Visuals Handout – Page 4