The following are the types of cables used in networks and other related topics
- 1. Week#2: Information Systems and Their Role Prepared by: Mr. Marvin A. Ramos
- 2. Lesson Overvie w • This week focuses on understanding the various types of information systems (IS) used in organizations, their roles in decision- making, and how they support organizational functions. We will explore different systems such as TPS (Transaction Processing System), MIS (Management Information System), DSS (Decision Support System), and ESS (Executive Support System), and their application in businesses. Additionally, we’ll examine the importance of IT infrastructure in supporting these systems.
- 3. Learning Objectives : •By the end of this lesson, students should be able to: 1. Identify and describe the different types of information systems. 2. Understand the role of information systems in supporting decision-making. 3. Recognize how organizations use information systems for operational, tactical, and strategic decisions. 4. Gain an overview of IT infrastructure and its importance for supporting information systems.
- 4. Types of Information Systems • TPS (Transaction Processing System) o A TPS is designed to handle the collection, storage, modification, and retrieval of data about transactions. These systems are essential for routine operations in organizations, such as sales orders, payroll, and inventory management. o Example: A point-of-sale (POS) system at a retail store that records every transaction made by customers.
- 5. • MIS (Management Information System) o An MIS is used to collect, process, store, and disseminate information for managerial decision-making. It provides reports and summaries of business operations, usually on a routine basis (daily, weekly, monthly). o Example: A monthly sales report generated by an MIS that shows revenue trends, sales performance, and inventory status.
- 6. • DSS (Decision Support System) o A DSS helps in making decisions by analyzing large volumes of data. These systems use analytical models and tools to support complex decision-making for non- routine problems. o Example: A financial planning system that helps a company predict the impact of different investment scenarios.
- 7. ESS (Executive Support System): o ESS provides top executives with easy access to both internal and external information that is crucial for making strategic decisions. These systems present high-level summaries of data and trends. • Example: A dashboard system used by an executive to view key performance indicators (KPIs) like sales, profit margins, and customer satisfaction.
- 8. The Role of Information Systems in Decision Making Information systems are crucial for decision- making at various organizational levels: Operational level: At the operational level, decisions are typically short-term and routine, focusing on day-to-day activities. Information systems help manage these operations efficiently.
- 9. • Example: A Point of Sale (POS) system in a retail store is a great example of an information system at the operational level. The system tracks sales transactions in real- time, providing data such as: • Number of items sold • Total sales revenue • Inventory levels
- 10. • This immediate data helps store employees and managers make on-the-spot operational decisions. • For example: If inventory levels are running low, the system will prompt a restock order. • During peak sales periods, the POS system might trigger a promotion or discount to encourage further sales. • The system can also alert employees to slow-moving items that may need additional promotion to sell.
- 11. Tactical Level • At the tactical level, managers use Management Information Systems (MIS) to make decisions based on reports and regular data summaries. These decisions are typically focused on medium-term objectives, like optimizing resources or improving efficiency.
- 12. • Example: A company’s MIS might generate weekly reports for its regional sales managers, showing: • Sales performance by region • Product performance trends • Customer feedback analysis
- 13. • Using this data, the regional manager could: • Adjust sales strategies based on product performance (e.g., focus on high-performing products or offer discounts on slow-moving items). • Reallocate resources to areas with higher demand. • Evaluate sales representatives' performance and decide on training or incentives for underperforming team members.
- 14. Strategic Level • At the strategic level, Decision Support Systems (DSS) and Executive Support Systems (ESS) come into play. These systems assist top-level executives and decision-makers in making high- level, long-term decisions by providing advanced data analysis, forecasting, modeling, and real- time data integration.
- 15. • Example: An ESS dashboard might provide executives with high-level insights into the company’s overall financial health, including: • Profit margins • Market share comparisons • Real-time performance data from multiple departments
- 16. • Executives can use this information to: • Make decisions on entering new markets or expanding existing ones. • Evaluate the potential for new product lines based on customer demand and competition. • Decide on mergers and acquisitions, based on financial and market data.
- 17. Organizational Use of Information • Organizations rely on information systems to gather, process, and analyze data at various levels of decision-making. These systems enable efficient operations, alignment with long-term goals, and informed strategic planning.
- 18. 1. Operational Decisions • Ensuring Smooth Day-to-Day Operations • Example: A restaurant chain uses a Point of Sale (POS) system to manage daily operations. The POS system tracks sales transactions, inventory levels, and customer preferences in real-time.
- 19. • How it helps: • Transaction Tracking: Every sale made (e.g., a customer purchasing a meal) is recorded, allowing the system to instantly update inventory levels. If certain ingredients are running low, the system sends alerts to staff, prompting them to reorder. • Customer Service: The POS system allows for quick billing, enabling faster service. It can also store customer preferences, helping staff provide a more personalized experience. • Employee Scheduling: The system can track which employees are working at which times, ensuring optimal staffing for busy hours.
- 20. 2. Tactical Decisions • Aligning Departmental Activities with Organizational Goals • Example: A manufacturing company uses a Management Information System (MIS) to manage its production processes. The system gathers data on production efficiency, employee performance, machine utilization, and inventory levels.
- 21. • How it helps: • Performance Reports: The MIS generates regular reports on key performance indicators (KPIs) such as the number of units produced, production downtime, and worker productivity. Managers can use these reports to assess whether the factory is meeting its targets and identify areas for improvement. • Resource Allocation: The system allows managers to align departmental activities with the company’s strategic goals by tracking resource usage. For example, if there’s a sudden spike in demand for a product, the system can suggest reallocating resources or prioritizing specific production lines.
- 22. 3. Strategic Decisions • Long-Term Planning and Goal-Setting by Top Management • Example: A retail corporation uses a Decision Support System (DSS) to make strategic decisions about expanding into new markets and launching new product lines. The DSS analyzes data on market trends, competitor performance, customer preferences, and economic conditions.
- 23. • How it helps: • Market Analysis: The DSS can provide top management with detailed reports and simulations on the potential profitability of expanding into a new geographic region or launching a new product. It helps executives understand the long-term impacts of such decisions on revenue, brand reputation, and market share. • Scenario Modeling: The system can model various strategic scenarios (e.g., what happens if they enter a new market vs. staying in their current markets) and assess the financial and operational risks of each decision. • Forecasting: The DSS can predict future market trends, helping top management plan for product development, budget allocation, and marketing strategies.
- 24. How Information Systems Improve Efficiency, Accuracy, and Productivity • Across all levels, organizations use information systems to: • Improve Efficiency: Automation of routine tasks (e.g., processing transactions, generating reports) saves time and reduces human error, allowing employees to focus on higher-value activities. • Make Accurate Predictions: Advanced analytics tools in DSS and MIS allow organizations to forecast future trends, from sales projections to staffing needs, helping them make proactive decisions. • Enhance Productivity: Information systems streamline workflows, enhance communication, and help track progress toward organizational goals, ultimately leading to improved productivity across departments.
- 25. IT Infrastructure Overview • IT Infrastructure is the foundation that supports the information systems in any organization. It consists of hardware, software, data management, networking, and human resources that work together to ensure seamless operation of the systems, enabling the organization to manage data, communicate, and carry out its day-to-day activities effectively.
- 26. • Hardware: Physical Devices • Software: Applications and Operating Systems • Data Management: Databases and Storage Systems • Networking: Connectivity for Communication and Data Transfer • Human Resources: IT Professionals Who Maintain and Support the Infrastructure
- 27. Group Activity #2 • Activity Name: Designing an Information System for a Small Business • Objective: Students will work in groups to design a simple information system for a hypothetical small business. The business could be anything from a retail store to a small consulting firm. They will outline the systems required at different levels of the organization and how these systems support decision-making.
- 28. Instructions • Business Scenario: Choose a type of business (e.g., coffee shop, e-commerce, etc.). 1. Identify Systems: o What type of information systems will be used at the operational, tactical, and strategic levels? o For example, what system will be used for handling transactions? What reports will the managers receive? How will executives make strategic decisions? 2. Present the Design: Create a presentation or poster that outlines: o The types of information systems used at each level. o How these systems interact with each other. o How the systems contribute to decision-making.