Managing Information
Systems
Information Systems in Organisations
Kangethe Alex
DIS 511
Objectives
To understand the role of IS within
organisations
To understand the diversity of types of IS
within a business / organisation
To understand relationships between IS and
business functions
Topics
Types of Information System in
Organisations:
By organisational level
By function within organisational level
Examples in functional areas
IS at the Organisational Level
KIND OF SYSTEM
STRATEGIC LEVEL
MANAGEMENT LEVEL
KNOWLEDGE LEVEL
OPERATIONAL
LEVEL
GROUPS SERVED
SENIOR MANAGERS
MIDDLE MANAGERS
KNOWLEDGE &
DATA WORKERS
OPERATIONAL
MANAGERS
SALES &
MARKETING
MANUFACTURING FINANCE ACCOUNTING HUMAN
RESOURCES
IS at the Organisational Level
Operational-level
Elementary activities and routine transactions
Data current and accurate
Knowledge-level
Support knowledge and data workers
Integrate new knowledge into the business
Office automation
IS at the Organisational Level
Management-level
Periodic monitoring, control, decision-making
and administration
Is the business working well?
Strategic-level
Long-term (e.g. 5 year) planning and strategy
Internal and external information
Examples
What examples can you think of at the
different organisational levels?
Types of IS
Transaction Processing Systems (TPS)
Knowledge Work Systems (KWS)
Office Automation Systems (OAS)
Management Information Systems (MIS)
Decision-support Systems (DSS)
Executive Support Systems (ESS)
Transaction Processing Systems
Systems that perform and record daily routine
transactions necessary for business
Operational-level Systems
Order
tracking
Machine control
Securities trading Payroll
Compensati
on
Order
processing
Plant scheduling
Cash
management
Accounts
payable
Training and
development
Accounts
receivable
Employee
records
Material
movement and
control
Sales and
Marketing
Manufacturing
Finance
Accountin
g
Human
Resources9
Knowledge Work Systems
Systems that aid the creation and integration of new
knowledge into an organisation
Knowledge-level Systems
Engineering workstations Graphics workstations
Managerial workstations
10
Office Automation Systems
Systems that are designed to increase the
productivity of data workers
Knowledge-level Systems
Word processing
Document imaging
E-mail / electronic
calendars
11
Management Information
Systems
Systems that serve planning, control and decisionmaking through routine summary and reports
Management-level Systems
Sales
Inventory control
management
Sales and
Marketing
Manufacturing
Annual budgeting Capital
investment
Finance
Accountin
g
Relocation
analysis
Human
Resources
12
Decision-support Systems
Systems that combine data, models and analysis
tools for non-routine decision-making
Management-level Systems
Sales region
analysis
Sales and
Marketing
Production
scheduling
Manufacturing
Cost analysis
Pricing /
profitability
analysis
Contract
cost analysis
Finance
Accountin
g
Human
Resources
13
Executive Support Systems
Systems that support non-routine decision-making
through advanced graphics and communications
Strategic-level Systems
5-year sales
trend
forecasting
5-year operating
plan
Sales and
Marketing
Manufacturing
5-year budget
forecasting
Finance
Profit
planning
Accountin
g
Personnel
planning
Human
Resources
14
Interrelationships
TPS major producer of
data
External data also
required for MIS, DSS
and ESS
Typical loose coupling of
systems
Digital firms have tighter
integration
ESS
MIS
KWS
DSS
TPS
OAS
15
Functional Examples
Examples of IS by function:
Sales and marketing
Manufacturing and production
Finance and accounting
Human resources
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Sales and Marketing
System
Description
Organisational
Level
Order processing
Enter, process and
track orders
Operational
Market analysis
Identify customers and
markets
Knowledge
Pricing analysis
Determine prices
Management
Sales trends
Prepare 5 year
forecasts
Strategic
17
Manufacturing and Production
System
Description
Organisational
Level
Machine control
Control actions of
equipment
Operational
Computer-aided
design (CAD)
Design new products Knowledge
Production planning
Decide number and Management
schedule of products
Facilities location
Decide where to
locate facilities
Strategic
18
Finance and Accounting
System
Description
Organisational
Level
Accounts receivable
Track money owed
to firm
Operational
Portfolio analysis
Design firms
investments
Knowledge
Budgeting
Prepare short-term
budgets
Management
Profit planning
Plan long-term
profits
Strategic
19
Human Resources
System
Description
Organisational
Level
Training and
development
Track training, skills
and appraisals
Operational
Career paths
Design employee
career paths
Knowledge
Compensation
analysis
Monitor wages,
salaries and benefits
Management
Human resources
planning
Plan long-term
workforce needs
Strategic
20
Summary
Looked at the role of IS within organisations
At organisational levels
Looked at the diversity of types of IS within a
business / organisation
Six different functional types of IS
Looked at relationships between IS and business
functions
Examples by functional area
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