oism session 15 technology in business

8/18/2019 OISM Session 15 Technology in Business

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Slide 3-4.1

Elliott, Global Business Information Technology © Pearson Education Limited 2005

Business Systems Activity


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Slide 3-4.2


The activity of decision making involves thefollowing sequence of activity:

1 planning

2 decision making

3 control

Planning is the process of deciding, in advance,

what is to be done, how it is to be carried out,when it is to be achieved and who is to achieve it

Business ystems !ctivity


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Slide 3-4.3


Steps in the decision making process (Simon, 1960):

•Input: gathering and collecting data•Intelligence: scrutinizing and examining the data•Design: formulating the problem and testing solutions•Choice: making a selection from a number of options•Implementation: choosing and implementing the choice

option

•Output: the decision


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Slide 3-4.4


Decision making is o t!o t"pes:• #ational :

•$ased on su%stantiated acts and data

•&on'rational•argel" %ased on opinions

Decision making is %usiness is %ased on %oth rational and

non'rational data

Decision making oten on %asis o incomplete data and

inormation


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Slide 3-4.5


Causes o ailure o leel o certaint" o decisions: limited time aaila%le to make decisions

imited inormation and data, proiding an

incomplete picture o the pro%lem*

Ineectie s"stems or processing o data and

inormation or the purpose o decision making

+hus, the need or mechanisms or inormation

modelling


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Slide 3-4.6


"eal#$orld %ecision &aking

1 'b(ectives setting

2 Planning strategies

3 %ecision making

) %irecting and e*ecuting tasks

+ 'btaining feedback

&onitoring and control


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Slide 3-4.7


Inormation S"stems are deeloped and used in

organi-ations to help !ith the a%oe

Inormation s"stems are used in organi-ations at

all ollo!ing leels:•+ransaction. Operational•/anagement•ecutie


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Slide 3-4.8


%ecision -hinking:

!n information systems used for decision makingmust

. /onsider the full range of factors a0ecting thedecision, both formal and informal

. *plore all the alternative courses of actionavailable

. !ssimilate all the possible information related tothe decision#making environment

. valuate the risks, costs and benets of a range ofactions

. &ake detailed plans for implementing the variousactions

. "eview the e0ectiveness of past decisions toassess im act


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Slide 3-4.9


Business 'rganisationalierarchy

trategic 4evel

&anagement 4evel

'perational 4evel

*ecutive 5nformationystems 657

&anagement5nformation ystems6&57

-ransactionProcessing ystems

6-P7


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Slide 3-4.10


pectrum of ystems /haracteristics

Figure 2.4 Information systems deision le!els "it#in a $usiness

organi%ation


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Slide 3-4.11


3 types of systems&'ransation (roessing Systems

'#e use of om)uters to automate routine tas*s in t#e

organisation +i.e. )ayroll systems,. '#ese systems later e!ol!ed

into t#e use of om)uters to ma*e routine deisions for

ontrolling some o)erational )roesses

&anagement Information Systems/eision Su))ort System

Im)lemented "it# t#e o$eti!e of inreasing managementeffeti!eness $y satisfying t#eir information needs. '#is is

a#ie!ed $y using data from t#e data )roessing systems to

)rodue summary information a$out $usiness )erformane

&Strategi Information Systems

Su# systems emerged $eause organisation "ere using ISI' to

#ange #o" t#ey onduted t#eir $usiness "it# t#e diret intent

of gaining a om)etiti!e edge. SIS systems fous on t#e on term

aims o$eti!es and goals of t#e organisation


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Slide 3-4.12


Three types of systems


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Slide 3-4.13


/haracteristics of -P

. "outine and deterministic in nature

. 4arge#scale alphanumeric data#processing activities

. eavy data storage requirements

. igh level of routine and repetition in theprocessing activity

. "eliance on deterministic computation andmathematical algorithms

. 8requent and routine operation on a day#to#day

basis


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Slide 3-4.14


-ransaction#Processing!ctivities

%ata collection

%ata manipulation

%ata storage

-ransaction#Processing

&ethods Batch processing"eal#time processing


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Slide 3-4.15


-ransaction Processingystems *amples:

ales order processing

Purchase order processing

Production planning and production control

tock 6or inventory7 control

"eceiving and distribution

Payroll 6wages and salaries7

!ccounting


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Slide 3-4.16


Figure 7.3 Purchase order processing system


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Slide 3-4.17


5ntegrated Business ystems

Figure 7.7 Integration of purchases, sales and accounting


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Slide 3-4.18


&anagement 5nformation ystems

9! system providinginformation fordecision making

usually intended formiddle management-he information maybe internal or e*ternalto the organisation;

enry 8ayol 61

9…to manage is toforecast and plan, to

organize, to command,to cooperate and tocontrol”


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Slide 3-4.19


%ecision upport ystems

9! system thatsupports managersand e*ecutives bymodelling the

decision#makingprocess>;

>'perate onunstructured or semi#structured informationenvironments>

ituation information

tatus information

8eedback and controlinformation

Planning information

nvironmentalinformation


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Slide 3-4.20


&anagement %ecision ystems

?ormally deal with data and information that are bothob(ective and sub(ective to varying degrees

*amples are Personnel ystems 6uman "esources7,

&arketing ystems, /ustomer upport ystems and"esearch and %evelopment

Provide managers with information that allows them toplan, control and organise more e0ectively and e@ciently

&anagers rely on formal reports generated by the variousinformation systems of the organisation


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Slide 3-4.21


/haracteristics of 5

• !bility to handle vast amounts of alphanumeric, te*tual,graphical and other multimedia information

. 8acility to handle, process and interpret data andinformation from very di0erent sources, using di0erentpresentational formats

. !bility to provide report and presentational Ae*ibility thatcan be integrated into di0erent output media

. 8acility to manipulate and analyse data and informationthrough modelling and simulation and other what#if analysis


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Slide 3-4.22


8our &ain &odels of *ecutive

5nformation ystems

8inancial models: cash Aow analysis, investmentanalysis and rates of return analysis

tatistical analysis models: statistics, trend analysis,statistical and econometric testing

raphical models: designed to provide a visual

picture of the underlying data and information

&anagement models: developed to control andpredict the management structure of an organisation


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Slide 3-4.23


/omponents of an 5

Figure 7.14 Components of an executie decision support systems enironment


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Slide 3-4.24


+he installation o a computer'%ased inormation s"stems has ena%led Daile"2s restaurant in

to streamline their operations and promote tighter internal controls oer their %usiness4

3 !aiter takes an order at a ta%le and then enters it online ia one o the si terminals locate

+he order is routed to a printer in the appropriate preparation area:

the cold item'printer i it is a salad, the hot'item printer i it is a hot sand!ich* or a %ar'print

3 customer2s meal check listing the items ordered and the respectie prices is automaticall" g

+his ordering s"stem eliminates the old three'car%on cop" guest check s"stem as !ell as an"

the !aiter2s hand!riting4 5hen the kitchen runs out o a ood item, the cook sends an out o

!hich !ill %e displa"ed on the dining room terminal !hen !aiters tr" to order that item4

+his gies the !aiter aster eed%ack, ena%ling them to gie %etter serice to the customers4

Other s"stem eatures aid management in the planning and control o their restaurant %usine

+he s"stem proides up'to'the minute inormation on the ood items ordered and %reaks out

sho!ing sales o each item ersus total sales4 +his helps management plan menus according t

+he s"stem also compares the !eekl" sales total ersus ood cost, allo!ing planning or tight

In addition, !heneer an order is oided, the reason or the oid is ke"ed in4

+his ma" help later in management decisions, especiall" i the oids are consistentl" related t

3cceptance o the s"stem %" the users is eceptionall" high since the !aiters and !aitressesthe selection and design process

oism session 15 technology in business

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