Chapter 10 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 Computing Essentals 2017 Explain the functional view of an organization and describe each function Describe the management levels and the informational needs for each level in an organization Describe how information flows within an organization Describe computer-based information systems Distinguish among a transaction processing system, a management information system, a decision support system, and an executive support system Distinguish between office automation systems and knowledge work systems Explain the difference between data workers and knowledge workers Define expert systems and knowledge bases © 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 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 Computing Essentals 2017 understand how the information flows as it moves through an organization © 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 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 Computing Essentals 2017 functional areas, a management level and / or information flow © 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 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 Computing Essentals 2017 New product development © 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 Management Levels Management is usually divided into three levels: Top Long-range planning Middle Computing Essentals 2017 Tactical planning Supervisors Operational matters © 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 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 Computing Essentals 2017 Primarily vertical © 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 Computing Essentals 2017 Information Flow Pattern © 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 Computing Essentals 2017 Summary of Computer-Based Systems © 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 Computing Essentals 2017 Computer-Based Information Systems © 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 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 Computing Essentals 2017 in Accounting © 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 Computing Essentals 2017 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 © 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 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 Computing Essentals 2017 Periodic reports – produced at regular intervals Exception reports – call attention to unusual events Demand reports – produced on request © 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 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 not have a fixed format Microsoft Access is often used to provide an easy front-end interface Consists of four parts: Computing Essentals 2017 User – anyone who has to make decisions System software – operating system Data - both internal and external © 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 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 Computing Essentals 2017 Assists lower-level managers accomplish the daily activities and objectives © 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 Executive Support Systems (ESS) Computing Essentals 2017 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 © 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 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 Computing Essentals 2017 Used by OAS systems Use specialized systems, such as CAD/CAM © 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 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: Computing Essentals 2017 Medicine Geology Architecture Nature © 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 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 Computing Essentals 2017 $95,000 to $125,000 annually © 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 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? Computing Essentals 2017 • © 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 Open-Ended Questions (Page of 2) Name and discuss the five common functions of most organizations Discuss the roles of the three kinds of management in a corporation What are the four most common computer-based information systems? Computing Essentals 2017 © 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 Open-Ended Questions (Page of 2) Describe the different reports and their roles in managerial decision making What is the difference between an office automation system and a knowledge work system? Computing Essentals 2017 © 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 Computing Essentals 2017 Explain the functional view of an organization and describe each function Describe the management levels and the informational needs for each level in an... Questions (Page of 2) Name and discuss the five common functions of most organizations Discuss the roles of the three kinds of management in a corporation What are the four most common computer-based... Open-Ended Questions (Page of 2) Describe the different reports and their roles in managerial decision making What is the difference between an office automation system and a knowledge work system? Computing