Week 2 - Chapter 3 - Part 1 - Information Systems PDF

Information Systems Dr. Samantha Kakavand, PhD Ma nag ers & Deci sio n Supp ort Sy st ems  Managers and Decision Support Systems  Business Architecture Top layer is the strategic layer occupied by C-level executives and advisory groups. Middle laye...

Information Systems Dr. Samantha Kakavand, PhD Ma nag ers & Deci sio n Supp ort Sy st ems  Managers and Decision Support Systems  Business Architecture Top layer is the strategic layer occupied by C-level executives and advisory groups. Middle layer is the tactical or managerial layer seeks to steer the organization in alignment with the strategy. Bottom layer is the operations layer executes its core processes and delivers value 3  Business Architecture Executives Strategic Layer Managers Middle/Functional Managers Tactical Layer Front-line employees Operational Layer 4  Decision Making Support Systems The activity of a Manager is a decision making based activity To make decisions, managers process and use the information that come from external and internal sources 5  1970s and 1980s  Management Information Systems (MIS) DSS & MIS for tactical managers  Decision support systems (DSS)  Executive Information Systems (EIS) for strategic managers 6 Levels of Use (1) less structured all the information has been analyzed 7 Levels of Use (2) 8 Key applications of IS in organizations 9 Business Processes Business processes – Flows of material, information, knowledge – Logically related set of tasks that define how specific business tasks are performed – May be tied to functional area or be cross-functional Businesses: Can be seen as collection of business processes Business processes may be assets or liabilities Business Processes Examples of functional business processes – Manufacturing and production Assembling the product – Sales and marketing Identifying customers – Finance and accounting Creating financial statements – Human resources Hiring employees Figure. The Order Fulfillment Process How Information Technology Improves Business Processes Increasing efficiency of existing processes – Automating steps that were manual Enabling entirely new processes – Changing flow of information – Replacing sequential steps with parallel steps – Eliminating delays in decision making – Supporting new business models Transaction Processing Systems (T.P.S.) Basic systems that: support the day-to-day operations of the business, record routine and daily transactions, consist of highly structured and predetermined tasks, Any company has a T.P.S 14  T.P.S & Human Resources Danone « IHRIS » Project (2002-2003) : IS covering recruitment management, career and skills management, administrative management and compensation management. One system designed to manage 40,000 people and eventually 100,000 people. * International Human Resources Information System TPS can be everywhere: can be H.R every company has at least one T.P.S can be called Human Resources Management 15 T.P.S – A Payroll T P S A payroll TPS is connected to the government 16  ordering something on Zara is an T.P.S – Marketing & Sales example of TPS for sales 17  T.P.S at Hospitals Example: Information has the capability to register voice and documents into systems Hospitals can have records across all canada to all be connected to a central system of Radiology database 18 Management Information Systems (M.I.S) Serves functional/tactical managers They are made towards reporting and control They make many decisions whether it is weekly, monthly, yearly Only used to analyze internal factors of a They depend on the existing data in the company company They facilitate decision-making using past and present data They have few analytical functions They are relatively rigid They have an internal orientation to the company 19 From T.P.S to M.I.S TPS is linked to MIS 20  M.I.S Different types of Managerial Reports Scheduled Progress Reports: Reports in a predetermined format designed to provide managers with information at regular intervals. Examples: weekly sales analysis reports, monthly financial statements. IE: Balance Sheet is generated once every year, Income Statement is generated every month etc... Exception records: Generating information on exceptional situations Example: Report containing only customers who exceed their credit limit. IE: creating a report on how many people have closed an account in the last year? 21 M.I.S : Report Sample Carpet cleaners are underperforming in the Northeast RATIO is generated by MIS 22 Decision Support Systems di erence between MIS & DSS ◦ DSS has a major part of functionality, can help with predicting the future, non routine decision making Serve middle management Support nonroutine decision making – Example: What is the impact on production schedule if December sales doubled? May use external information as well as TPS / MIS data Model driven DSS – Voyage-estimating systems Data driven DSS – Intrawest’s marketing analysis systems What is nonroutine decisions they make or have made in the past as managers or employees? paternity/maternity leave (participation) Figure. Voyage-Estimating Decision-Support System better predict the possibilities  Executive Information System (E.I.S) internal and external information of the company They support the strategies of the organization They use the internal and external information of the company They allow to find the answer of questions that do not have a clear solution  What market should be present in?  What our competitors are actually doing?  What new acquisitions should we develop in order to protect our company from the competitors? 25 E.I.S - EXAMPLE Organisations E.I.S software RBC Royal Bank Optimizing the location of ATMs Canadian Traffic Traffic evolution analysis to evolve Network infrastructures Desjardins Group Location and risk assessment Stimulation of sales teams by communication of Sport Chek daily operational indicators Customer behavior analysis for targeting Walmart personalized marketing actions 26 27  Discussion Question Read the mini-case and respond to the following questions: 1. Is the Avon failure the fault of Avon? SAP? IBM? All three? Explain your answer. 2. Recall the discussion of strategic information systems in Chapter 3. Is Avon's new system a strategic information system? Why or why not? Explain your answer. 3. Discuss the trade-off between the quality of an information system and the amount of time that needs to be spent on employee training. 28  Discussion Question In 2014, Gallup's State of Global Workplace reported that "51% of workers said they weren't engaged at work and of this segment, 17% stated they were actively disengaged" (Loubier, 2017) To combat this, several companies are using Addiction by Design to alter the role employees play within various business processes. For instance, Disney takes advantage of techniques to get employees more motivated and involved at work. At Disney's hotels, they have a tracking system to monitor the workers' progress in real-time. They use gamification of the whole system, where worker's names are monitored by coloured lights, which signal to them if their keeping up with the pace of work. The scoreboard system creates a competitive social environment and encourages people to enjoy doing their work (LaBrarre, 2018). Is new system a strategic, tactical or operational information system? Why or why not? Explain your answer. 29