Information System
- Collect, process, store and distribute information to support decision making and control in a organization.
- Help manager and workers analyze problems, visualize complex subjects, create new product.
Information Technology
- Consist of all the hardware and software that a firm needs to use in order to achieve its business objectives.
Data
- Streams of raw facts representing events occurring in organizations.
Information
- Data that have been shaped into a form that is meaningful and useful to human being.
How Information System Impact Organization and Business Firms
1. Economic Impacts
- Relative cost of capital and cost of information.
- Reduce internal management costs.
2. Organization and Behavioral Impacts.
- Often inefficient, slow to change, less competitive.
- IT pushes Decision-Making right lower.
- Managers become faster in making decisions because much more accurate information received on time.
How Information Technology enhances business processes
- Information system automate many steps in business processes that were formally performed manually.
- New technology can actually change the flow of information.
↪ Many more people to access and share information.
↪ Replacing sequential steps with tasks that can be performed simultaneously.
↪ Eliminating delays in decision making.
What is an Organization ?
- An organization is a stable, formal social structure that takes resources from the environment and processes them to produce outputs.
This definition focuses on 3 elements of organization :
⇢ Input from environment
⇢ Production Process
⇢ Output of the environment
i) Senior Management
➔ Make strategic decision.
➔ Eg: Manager director.
ii) Middle Management
➔ Carries out the plans of senior management.
➔ Create new knowledge for the firm.
➔ Eg: Engineers, Sales Marketing.
iii) Operational Management
➔ Responsible for monitoring the daily activities.
➔ Production and service worker.
➔ Eg: Ticketing officer and clerks.
Each of the management groups uses system to support the decision they must make to run the company
i) Transaction Processing System (TPS)
⇒ TPS help Operational management.
⇒ The daily routine transaction.
ii) Management Information System (MIS)
⇒ MIS serving Middle management.
⇒ Report on the organization current performance.
⇒ To monitors and control the business.
iii) Decision Support System (DSS)
⇒ DSS support non-routine decision making.
⇒ They focus on problems that are unique and rapidly changing.
iv) Executive Support System (ESS)
⇒ ESS help Senior Management.
⇒ Strategic issues and long term trends, both in the firm and in the external environment.
⇒ Present graphs and data from many sources through an interface that is easy for senior manager to use.
No comments:
Post a Comment