TPS, DSS, Mis

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

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

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
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.
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.
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.
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.
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.
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

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INFORMATION

Information Technology is a Part of

OUR FOCUS IN THIS CHAPTER

THE TRADITIONAL STRUCTURE OF AN

Organizations Also Have Depth...

Within the pyramid, many organizations

When Considering Information, You

SHARED INFORMATION AND

SHARED INFORMATION AND

SHARED INFORMATION AND

HOW INFORMATION FLOWS

TWO WAYS OF CREATING

THE SEVEN IT SYSTEMS IN AN

Groupware Supports Three Functions

GROUPWARE SUPPORT FOR

GROUPWARE SUPPORT FOR

• Shared Information Through Decentralized

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