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Organizations and Information Technology Support

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CHAPTER 2
ORGANIZATIONS AND INFORMATION TECHNOLOGY SUPPORT

Learning Objectives
Discuss major information systems concepts such as architecture and infrastructure. Describe the hierarchical structure of organizations and the corresponding information systems. Define various information systems and their evolution, and categorize specific systems. Describe the support provided to different types of employees in an organization. Describe how information resources are managed.

Information Infrastructure
Everything that supports information processing except information itself:
computer hardware general-purpose software networks and communication facilities database information management personnel procedures

Information Architecture
is a general scheme of the information requirements in the organization (including information flows) Information architecture vs. hardware architecture Information architecture vs. concept model of organization

Centralized Information Architecture


(background) Input transactions do not need to be processed in real time; On-line-data-entry personal can be centrally located; Large number of periodic outputs are produced by the system.

Centralized Information Architecture


Single-computer architecture
Mainframe environment; PC environment

Multi-computer architecture
Group of similar computers Group of different computers implementing different tasks.

Decentralized (Distributed) Information Architecture


PC in a LAN or WAN Client/Server
Client/Server in a LAN Enterprisewide computing

Client/Server evolution into Internet-based architecture

Client/Server Architecture
Several computers share resources and are able to communicate with each other
A client - a computer attached to the network, which
is used to request and access shared network resources A server - a machine that is attached to the same network and provides clients with these services

Purpose : optimize the use of computer resources

Enterprisewide Architectures
Access to data, applications, services, and real-time flows of data in different LANs or databases Use client/server architecture to create a cohesive, flexible, and powerful computing environment Provide total integration of departmental and corporate IS resources Increase the availability of information and thereby maximize the value of information

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Internet-based Architectures
Based on the concepts of client/server architecture and enterprisewide computing The Internet is the basis for a network connection from the outside world to the company, as well as with the organizations web site Organizations internal private Internet (intranet) - useful for distributing information within the organization

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Organizations : Structure and IT Support


The nature of organizations determines their activities, the information support they need, and the type of information systems they use
profit-making business versus not-for-profit organizations exist manufacture goods versus services are delivered can be located in one place or in several places, some are global or multinational organizations

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Organizations : Structure
Hierarchical Structure Team-based structure
Project management structure Matrix organizational structure

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Hierarchical Structure
Headquarters

Division A

Division B

Overseas Division

Plant C Plant D
Administration Services (legal, etc.)

Plant E Plant F

ISD

Accounting

Marketing

Finance

HRM

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Figure 2.3 Typical matrix organization.

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Organizations : IT Support
The Corresponding Information Systems
Departmental Information Systems Plant Information Systems Divisional Information Systems Enterprisewide Information Systems Interorganizational Information Systems (IOS) Global Information System for an International or Multinational Corporation

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Transaction Processing Systems


Organizations perform routine, repetitive tasks a TPS supports the monitoring, collection, storage, processing, and dissemination of the organizations basic business transactions Frequently, several transaction processing systems exist in one company Modern transaction processing systems are much more sophisticated and complex

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Management Information Systems (MIS)


provide periodic reports generate weekly and monthly summaries by product, customer, or salesperson MIS reports may include summary reports, for the current period or for any number of previous periods - used for monitoring, planning, and control

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Functional Management Information Systems


geared toward middle managers Access data, organize, summarize, and display information for supporting routine decision making in the functional areas Examples: financial, manufacturing, marketing management, human resources management information systems

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Major Outputs of a Functional Management Information System


OUTPUT DESCRIPTION

Statistical summaries
Exception reports

Periodic reports
Ad hoc reports Comparative analysis

Projections

Summaries of raw data such as daily production, and weekly and monthly usage of electricity. Highlights of data items that are larger or smaller than designated levels. Statistical summaries and exception reports provided at scheduled, regular periods. Special, unscheduled reports provided on demand. Performance comparison to that of competitors, past performance, or industry standards. Advance estimates of trends in future sales, cash flows, market share, etc.

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Support Systems
office automation systems (OAS) computer-aided design and manufacturing (CAD/CAM) decision support systems (DSS)
executive information systems (EIS) group support systems (GSS)

Intelligent Systems
Expert systems (ES) Intelligent agents

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Integrated Systems
various computerized systems are being integrated to increase their functionalities one popular form of integrated system is enterprise resources planning (ERP)
ERP supports planning and management all of an organizations resources and their use, including contacts with business partners

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The Evolution
Computer Based Information Systems
1940 1950 1960 Scientific, military applications Routine business applications, TPS MIS, office automation DSS, LANs Client/server executive information system, PCs, AI, Groupware

1970 1980
1990 2000

Integration, intelligent systems the Web, intranets, extranets, ERP software Internet, Electronic commerce, Smart systems

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Clerical Staff
Data workers - use, manipulate, or disseminate information
bookkeepers, secretaries who work with word processors, electronic file clerks, and insurance claim processors

Supported by office automation and groupware, including document management, workflow, email, and other personal productivity software

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Managers
Implement major functions of organization on almost all levels of an organization
Top managers make strategic decisions Middle managers make tactical decisions Line managers make operational decisions

correspondent Information Systems


Executive Information Systems or DSS Management Information Systems Operation Information Systems

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Knowledge Workers
Engineers, financial and marketing analysts, production planners, lawyers, and accountants (60-80%): finding or developing new knowledge and integrating it with existing knowledge Advising and consulting the members of the organization introducing new procedures, technologies, or processes Supported by a large variety of information systems from Internet search engines to expert systems, to CAD, and by organizational knowledge bases

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IT Support at Different Organizational Levels


Strategic Systems

Top Managers Knowledge Workers, Professionals Middle Managers Line Managers, Operators Clerical Staff

Staff Support
Managerial Systems POM Systems

Office Automation and Communication Systems Information Infrastructure and TPS

The information systems support of people in organizations

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Managing IT Resources
IT resources are scattered throughout the organization Information systems have enormous strategic value Some IT resources change frequently. The responsibility for the management of IT is divided between a usually centralized information systems department (ISD) and the end users
ISD is responsible for corporate-level and shared resources, The end users are responsible for departmental resources

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Managing Information Technology


Key MIS issues in two recent time periods Key Issues, 1994/1995 Key Issues, 1997 1. Building a responsive IT 1. Improving productivity infrastructure 2. Facilitating and managing 2. Reducing costs business process redesign 3. Developing and managing 3. Improving decision distributed systems making 4. Developing and implementing 4. Enhancing customer an information architecture relationships 5. Planning and managing 5. Developing new communication networks strategic applications

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