Chapter 102017

10
Chapter
Information
Systems
Chapter 10
© 2017 by McGraw-Hill Education. This proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or
posted on a website, in whole or part.
Learning Outcomes
1. Explain the functional view of an organization and describe each function.

2. Describe the management levels and the informational needs for each
level in an organization.
3. Describe how information flows within an organization.
4. Describe computer-based information systems.
5. Distinguish among a transaction processing system, a management
information system, a decision support system, and an executive support
Computing Essentials 2017
system.
6. Distinguish between office automation systems and knowledge work
systems.
7. Explain the difference between data workers and knowledge workers.
8. Define expert systems and knowledge bases.
Introduction
An information system is a

collection of people, procedures,
software, hardware, data, and
connectivity
They all work together to provide
information essential to running
an organization
Computers are used in organizations

to keep records of events
Competent end users need to
understand how the information
flows as it moves through an
organization
Organizational Information Flow
Information flows vertically and

horizontally throughout an organization
Information systems support the natural
flow of information within an organization’s
structure
Information systems can be broken down

into one of five different functional areas, a
management level and / or information
flow.
Five Functions of an Organization
Accounting
Records all financial activity
Marketing
Plans, prices, promotes, sells and
distributes the goods
Human Resources
Human-centered activities
Production
Creates finished goods and services
Research
New product development
Management Levels
Management is usually
divided into three levels:
Top
Long-range planning
Middle
Tactical planning
Supervisors
Operational matters
Information Flow Levels
Each level of management has different information

needs.
Require information flows from different levels
from different directions
Top Managerial-Level Information Flow
Vertical, horizontal, and external

Middle Managerial-Level Information Flow
Vertical and horizontal
Supervisory-Level Information Flow
Primarily vertical
Information Flow Pattern
Summary of Computer-Based Systems
Computer-Based Information Systems
Transaction Processing Systems (TPS)
Helps organizations keep

track of routine operations
and records these events
in a database.
Records day-to-day
transactions in a database
Also called data

processing systems (DPS)
One of the most essential
uses of a TPS is in
Accounting
TPS for Accounting
Sales order processing

Records the customer requests
Accounts receivable
Records money received from or owned
Inventory
Parts and finished goods in stock
Purchasing
Buying of materials and services

Accounts Payable
Money the company owes
Payroll
Activity involving employer paychecks
General Ledger
Keeps track of all summaries of all the above referenced items
Management Information Systems
(MIS)
Computer-based information systems

that:
Produce standardized reports to support
decision-making by middle managers
Integrate data and summarizes details
from databases in a structured form

Produce predetermined reports
Periodic reports – produced at regular intervals
Exception reports – call attention to unusual
events
Demand reports – produced on request
Decision Support Systems (DSS)
Flexible tool for analyzing data for decision-making

purposes
Enables managers to get answers to unexpected and
generally non-recurring problems
Reports do not have a fixed format
Microsoft Access is often used to provide an easy front-

end interface
Consists of four parts:
User – anyone who has to make decisions
System software – operating system
Data - both internal and external
Decision Models
Give the DSS its analytical capabilities
Three basic types of decision models

Strategic models
Assists top level managers in long-range planning
Tactical models
Assists middle-managers control the work
Financial and sales promotion planning
Operational models
Assists lower-level managers accomplish the daily activities and
objectives
Executive Support Systems (ESS)
Designed for top management

Sophisticated software for presenting, summarizing, and analyzing
data, but specifically designed to be easy-to-use
Provides immediate access to a company's key performance indicators
Other Information Systems
Information workers distribute, communicate,

and create information
 Data workers
 Knowledge workers
Office automation systems (OASs) are designed
primarily to support data workers
 Project managers
 Videoconferencing systems
Knowledge work systems (KWSs) create
information in their areas of expertise
 Used by OAS systems
 Use specialized systems, such as CAD/CAM
Expert Systems
Or Knowledge-Based Systems are a type of artificial

intelligence that uses a database to provide
assistance to users
Contains facts and rules to relate these facts distilled
from a human expert
Systems developed in:

Medicine
Geology
Architecture
Nature
Careers In IT
Information systems managers oversee

the work of programmers, computer
specialist, systems analysts, and other
computer professionals
Employers look for individuals with strong
technical backgrounds, with a Master’s
degree in business
Strong leadership and excellent
communications skills
Information systems managers
can expect to earn from
$95,000 to $125,000 annually
A Look to the Future ~ IBM’s Watson
• The Ultimate
Information-Finding
Machine
• As information
amounts increase, it
is more difficult to
keep up
• Can Watson save us?
Open-Ended Questions (Page 1 of 2)
1. Name and discuss the five common functions of most

organizations.
2. Discuss the roles of the three kinds of management in a

corporation.
3. What are the four most common computer-based

information systems?
Open-Ended Questions (Page 2 of 2)
4. Describe the different reports and their roles in managerial

decision making.
5. What is the difference between an office automation system

and a knowledge work system?

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10

1. Explain the functional view of an organization and describe each function.

An information system is a

Computers are used in organizations

Information flows vertically and

Information systems can be broken down

Each level of management has different information

Vertical, horizontal, and external

Helps organizations keep

Also called data

Sales order processing

Buying of materials and services

Computer-based information systems

from databases in a structured form

Flexible tool for analyzing data for decision-making

Microsoft Access is often used to provide an easy front-

Give the DSS its analytical capabilities

Three basic types of decision models

Designed for top management

Information workers distribute, communicate,

Or Knowledge-Based Systems are a type of artificial

Systems developed in:

Information systems managers oversee

1. Name and discuss the five common functions of most

2. Discuss the roles of the three kinds of management in a

3. What are the four most common computer-based

4. Describe the different reports and their roles in managerial

5. What is the difference between an office automation system

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