INFORMATION

Lesson 2
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Presented by: Prof. Joemen G. Barrios, MIT
• Key System Applications in the
Organization
• Systems from a Functional Perspective Information 2

• Integrating Functions and Business

Processes
Systems in
• International Information Systems the
Enterprise
 Information Systems 3

• collection of interrelated components that collect,

process, store, and provide as output information
needed to complete tasks.
• An information system has five key components:
hardware, software, data, processes, and people.

Information
Systems
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INFORMATION SYSTEMS COMPONENTS

ORGANIZATIONAL STRUCTURE
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 • Top managers develop long-
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range plans that define the
company’s overall mission and
goals. Focuses on issues that
Top affect the company’s future
Management survival and growth, including
long-term IT plans. Use
information systems to set the
company’s course and
direction.
 Middle Management 8

• Middle managers focus their goals on a shorter

time frame. Develop plans to achieve business
objectives, delegate authority and responsibility
to team leaders or supervisors and provide
direction, necessary resources, and feedback on
performance as tasks are completed.
 Lower • Oversee operational
Management/ employees and carry out day-
Knowledge to-day operational plans.
and Data Coordinate operational tasks,
Workers
make necessary decisions, and
ensure that the right tools,
materials, and training are
available.
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 Operational
Employees
• Primarily use TP systems to
enter and receive data.

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Fig 1: Types of Information
Systems
 Different Kinds of Systems 12

Operational-level systems
• Information systems that monitor the elementary
activities and transactions of the organization .
Knowledge-level systems
• Information systems that support knowledge and data
workers in an organization.
 Different Kinds of Systems 13

Management-level systems
• Information systems that support the monitoring,
controlling, decision making, and administrative activities
of middle managers.
Strategic-level systems
• Information systems that support the long-range planning
activities of senior management .
Major Types of
Systems

• Executive Support Systems (ESS)

• Decision Support Systems (DSS)
• Management Information Systems
(MIS)
• Knowledge Work Systems (KWS)
• Office Automation Systems (OAS)
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• Transaction Processing Systems (TPS)
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Fig 2: The six major types of information systems.

1. TPS – Transaction Processing Systems

◼ Computerized systems that perform and record the

daily routine transactions necessary to conduct the
business; they serve the organization’s operational level.
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Six Major Types of Systems

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Fig 3: Typical applications of TPS ■

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◆
Fig 4: A symbolic representation for a payroll TPS.
Six Major Types of Systems

2. KWS – Knowledge Work Systems

◼ Information systems that aid knowledge workers

in the creation and integration of new knowledge
in the organization .
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Example: Engineering workstation

3. OAS – Office Automation Systems

◼ Computer systems, such as word processing,

electronic mail systems, and scheduling systems, that
are designed to increase the productivity of data
workers in the office . 2
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Six Major Types of Systems

 Six Major Types of Systems

4. MIS – Management Information Systems

◼ Information systems at the management level of
organization that serve the functions of planning,
controlling, and decision making by providing routine
summary and exception reports. 2
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Example: Annual budgeting

 MIS – Management
Information Systems

• Structured and semi-structured

decisions
• Report control oriented
• Past and present data
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• Internal orientation
 TPS DATA FOR MIS APPLICATIONS

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Fig 5: How management information systems obtain their data the from the organization’s TPS .
 Six Major Types of Systems

5. DSS – Decision Support Systems

◼ Information systems at the management level of an
organization that combine data and sophisticated
analytical models to support non-routine decision
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making. 4

Example: Contract cost analysis

 Decision Support System (DSS)

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◆
Fig 6: Voyage estimating decision-support system .
 Six Major Types of Systems

6. ESS – Executive Support Systems

◼ Information system at the organization’s strategic level
designed to address unstructured decision making through
advanced graphics and communications.
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Example: 5-year operating plan

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• Top level management

ESS – • Designed to the individual
Executive • Ties CEO to all levels
Support
• Very expensive to keep up
Systems
• Extensive support staff
 Executive Support System (ESS)

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Fig 7: Model of a typical executive support system .

Systems from a
Functional
Perspective
Fig 8: Interrelationships among systems

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Business Processes and Information Systems

Cross-Functional Business Processes 30

Fig. 9 The Order Fulfillment Process

Business Processes and
Information Systems
Information systems help
organizations:

◼ Achieve great efficiencies by

automating parts of processes
◼ Rethink and streamline 31

processes
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Global System
Configuration