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IST3e Ch07 - Chapter 7 Enhancing Business Intelligence...

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Information Systems Today: Managing in the Digital World 7-1 7 Chapter Enhancing Business Intelligence Using Information Systems Use of outdated information systems can be costly. A software glitch at the Tokyo Stock Exchange cost Misuho Securities Co. U.S.$350 million.
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Information Systems Today: Managing in the Digital World 7-2 Learning Objectives
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Information Systems Today: Managing in the Digital World 7-3 Learning Objectives
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Information Systems Today: Managing in the Digital World 7-4 Decision-Making Levels of an Organization
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Information Systems Today: Managing in the Digital World 7-5 Operational Level Day-to-day business processes Interactions with customers Information systems used to: o Automate repetitive tasks o Improve efficiency Decisions: o Structured o Recurring o Can often be automated using IS
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Information Systems Today: Managing in the Digital World 7-6 Summary of Characteristics: Operational Level
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Information Systems Today: Managing in the Digital World 7-7 Managerial Level Functional managers o Monitoring and controlling operational-level activities o Providing information to executive level o Midlevel managers Focus on effectively utilizing and deploying resources Goal of achieving strategic objectives Managers’ decisions o Semistructured o Contained within business function o Moderately complex o Time horizon of few days to few months
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Information Systems Today: Managing in the Digital World 7-8 Summary of Characteristics: Operational Level
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Information Systems Today: Managing in the Digital World 7-9 Executive Level The president, CEO, vice presidents, board of directors Decisions o Long-term strategic issues o Complex and nonroutine problems o Unstructured decisions o Long-term ramifications
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Information Systems Today: Managing in the Digital World 7-10 Summary of Characteristics: Operational Level
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Information Systems Today: Managing in the Digital World 7-11 Comparison of Decision-Making Levels Operational Level Managerial Level Executive Level Who Foreman or supervisor Midlevel managers and functional managers Executive-level managers What Automate routine and repetitive activities Automate the monitoring and controlling of operational activities Aggregate summaries of past organizational data and projections of the future Why Improve organizational efficiency Improve organizational effectiveness Improve organizational strategy and planning IS Transaction Processing Systems (TPS) Management Information Systems (MIS) Executive Information Systems (EIS)
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Information Systems Today: Managing in the Digital World 7-12 Learning Objectives
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Information Systems Today: Managing in the Digital World 7-13 General Types of Information Systems Input-process-output model o Basic systems model o Payroll system example
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Information Systems Today: Managing in the Digital World 7-14 Transaction Processing System Operational level Purpose: o Processing of business events and transactions o Increase efficiency Automation
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