A typical organization is divided into operational, middle, and upper level. The information requirements for users at each level differ. Towards that end, there are number of information systems that support each level in an organization. This tutorial will explore the different types of information systems, the organizational level that uses them and the characteristics of the particular information system.
Understanding the various levels of an organization is essential to understand the information required by the users who operate at their respective levels. The operational level is concerned with performing day to day business transactions of the organization. Examples of users at this level of management include cashiers at a point of sale, bank tellers, nurses in a hospital, customer care staff, etc. Users at this level use make structured decisions.
This means that they have defined rules that guides them while making decisions. For example, if a store sells items on credit and they have a credit policy that has some set limit on the borrowing. All the sales person needs to decide whether to give credit to a customer or not is based on the current credit information from the system. This organization level is dominated by middle-level managers, heads of departments, supervisors, etc.
The users at this level usually oversee the activities of the users at the operational management level. Tactical users make semi-structured decisions.
The decisions are partly based on set guidelines and judgmental calls. As an example, a tactical manager can check the credit limit and payments history of a customer and decide to make an exception to raise the credit limit for a particular customer.
TPS, on the other hand, performs routine operations for supervisory executives which include storing, retrieving, possessing creating and formatting data. The users of TPS come on the lowermost level in the management hierarchy while the users of MIS are the mid-level managers. The input activity involves data entry, transaction processing, TPS file and database processing, and TPS documents and report generation.
The activities performed by MIS are taking high volume transaction level data as an input and then processing this input based on simple models.
ATPS usually operates only within one functional area of a business. In other words, accounting and finance, production, marketing and sales, and research and development each have its own transaction processing information system database management systems were designed to solve the problems involves with sharing computer-based files among the different functional areas. Although the reports generated by a TPS are useful to lower-level managers, they are not generally helpful to middle managers, who need more summarized information.
Management Information systems MIS , also called information reporting systems, provide middle management with reports that summarize and categorize information derived from all the company databases. The purpose of the reports is to allow management to spot trends and to get an overview of current business activities, as well as to spot trends and to monitor and control operational-level activities.
Although the term management information systems. ESS present graphs and data from many sources through an interface that is easy for senior managers to use. How do systems that link the enterprise improve organizational performance?
Explain how enterprise applications improve organizational performance? Enterprise applications , which are systems that span functional areas, focus on executing business processes across the business firm, and include all levels of management.
Enterprise applications help businesses become more flexible and productive by coordinating their business processes more closely and integrating groups of processes so they focus on efficient management of resources and customer service. There are four major enterprise applications: enterprise systems, supply chain management systems, customer relationship management systems, and knowledge management systems.
Each of these enterprise applications integrates a related set of functions and business processes to enhance the performance of the organization as a whole. Define enterprise systems, supply chain management systems, customer relationship management systems, and knowledge management systems and describe their business benefits.
Enterprise Systems Firms use enterprise systems , also known as enterprise and production, finance and accounting, sales and marketing, and human resources into a single software system.
Information that was previously fragmented in many different systems is stored in a single comprehensive data repository where it can be used by many different parts of the business. These systems help suppliers, purchasing firms, distributors, and logistics companies share information about orders, production, inventory levels, and delivery of products and services so that they can source, produce, and deliver goods and services efficiently.
The ultimate objective is to get the right amount of their products from their source to their point of consumption in the least amount of time and at the lowest cost.
These systems increase firm profitability by lowering the costs of moving and making products and by enabling managers to make better decisions about how to organize and schedule sourcing, production, and distribution. Customer Relationship Management Systems Firms use customer relationship management. CRM systems to help manage their relationships with their customers. CRM systems provide information to coordinate all of the business processes that deal with customers in sales, marketing, and service to optimize revenue, customer satisfaction, and customer retention.
This information helps firms identify, attract, and retain the most profitable customers; provide better service to existing customers; and increase sales. Knowledge management. Systems KMS enable organizations to better manage processes for capturing and applying knowledge and expertise.
These systems collect all relevant knowledge and experience in the firm, and make it available wherever and whenever it is needed to improve business processes and management decisions. They also link the firm to external sources of knowledge. Explain how intranets and extranets help firms integrate information and business processes. Intranets and extranets are private corporate networks based on Internet technology that assemble information from disparate systems. Extranets make portions of private corporate intranets available to outsiders.
Define collaboration and teamwork and explain why they have become so important in business today. Collaboration is working with others to achieve shared and explicit goals. Collaboration focuses on task or mission accomplishment and usually takes place in a business, or other organization, and between businesses. Collaboration and teamwork are more important today than ever for a variety of reasons.
List and describe the business benefits of collaboration.
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