3. Types of information systems
For different types of
organizations
For different functions within
organizations
For different business needs
and at different management
levels of an organization
1 -
4. Major Functional
Subsystem
Some typical uses
Marketing Sales forecasting, sales planning, customer and sales
analysis
Manufacturing Production planning and scheduling, cost control
analysis.
Logistics Planning and control of
purchasing, inventories, distribution
Personnel Planning personnel requirements, analyzing
performance, salary administration.
Finance and
Accounting
Financial analysis, cost analysis, capital requirements
planning, income measurement
Information
processing
Information system planning, cost-effectiveness
analysis
Top management Strategic Planning, resource allocation
6. 1 -
Activity
Subsystem
Some typical uses
Transaction
Processing
Processing of orders, shipments
and receipts
Operational control Scheduling of activities and
performance reports
Management
control
Formulation of budgets and
resource allocation
Strategic planning Formulation of objectives and
strategic plans
8. 1 -
Time
Scales
Level of
Detail
Source
Degree of
Uncertainty
Frequency
Operational Middle Strategic
Management Management Management
Immediate
Highly
detailed
Internal
Certain
Frequent
Long
Term
Summarised
External
Uncertain
Infrequent
10. 1
Decision Support Systems
Serve middle management
Support non routine decision making
◦ E.g. What is impact on production schedule if
December sales doubled?
Often use external information as well
from TPS and MIS
DSS are either Model-Driven (What if) or
data-driven (Online Analytical Processing)
12. 1
Executive support systems
Support senior management
Address nonroutine decisions requiring
judgment, evaluation, and insight
Incorporate data about external events
as well as summarized information
from internal MIS and DSS
E.g. ESS that provides minute-to-
minute view of firm’s financial
performance as measured by working
capital, AP / AR, cash flow, and
inventory.
13. 1
Model of an ESS
This system pools data from
diverse internal and external
sources and makes them
available to executives in an
easy-to-use form.
14. 1
Interrelationships Among
Systems
TPS are major producers of information, which, in turn, produce information for
other systems. increasingly firms are using new technologies to integrate
information that resides in many different systems.
16. 16
Types of Decisions
Level Operational
Control
Management
Control
Strategic
Planning
Structured
Decisions
Inventory
Reorder,
Production
Scheduling
Pricing of
Bids,
Selection of
credit line
Institutions
Acquisition of
a company,
addition of new
product line
Unstructured
Decisions
Vendor
Selection,
hiring new
supervisor
Allocation of
advertising,
Internal
organization
of a deptt
Entry into new
market, new
organization of
company