Information Systems to Different Levels of Management

Transaction Processing System (TPS):

Business transactions are events that serve the mission of the business. They are the primary means by which the business interacts with its supplier, customer, partners, employees and government. Transactions are significant to us because they capture and or create data about and for the business. Examples of transaction include purchases, orders, sales reservation, shipment invoices and payments.

 "TPS are information systems application that capture and process data about (or for) business transactions they are sometimes called data processing systems."

The analysis and design of transaction of transaction processing systems tends to focus on factors such as response time, through put (volume of transaction), accuracy and consistency.

Management Information Systems:

Management information systems supplement TPS with management reports required to plan, monitor and control business operation. A MIS is a information system application that provides for management oriented reporting usually like current sales & marketing, recruitment and so on MIS produce information based on accepted management or mathematical/statistical models

Expert System:

An expert system is an information system application that captures the knowiedge and expertise of a problem soiver or decision maker and then simulates the thinking of thaiexpert for those who have less expertise. Expert sysiems imitate the logic and reisoning of the experts within their respective fields. For example

A food manufacturer uses an expert system to preserve the production expertise of experienced engineers who are nearing retirement Expert systems are implemented with artificial intelligence technology often called expert system shells that captures and simulates the reasoning of the expert

Decision Support System:

A decision support system (DSS) is an information system application that provides its users with decision oriented information whenever decision making situation arises. When applied executive managers, these systems are sometimes called executive information system. A DSS does not make decision or solve problems. People do. Decision support systems are concerned with providing useful information to support the decision making process. In particular. decision support systems are usually designed to support unstructured decisions. Those decision making situation that cannot be predicted in advance. DSS is based on the reality that the information needed to support unstructured decisions already been captured by transaction processing and management information system. The DSS provides the decision maker with tools (data mining tools) to access that information and analyze it to make a decision. In general a DSS provides one or more oi the following types of support to the decision maker:

• identification of problems or decision making opportunities.
• identification of possible solutions or decisions
• Access to information needed to solve a problem or make a decision
• Tc perform what if analysis
• simulation of possible solution and their likely results

Levels of Management

Differences can be identified between these kinds of information at the various levels of the organization.

At top management level of the organization, information tends to be ill structured, ad-hoc, informal, external, uncertain, and concerned with the future.

At middle management level information is more structured, formal, internal, regular,certain and concerned with the near future.

At operational management level information is repetitive, programmable, and largely internal and has a very short time- horizon.

The purposes of information therefore changes according to the level at which it is aimed. paradoxically, the higher up organization a manager is the less he will rely on formal information, and yet still needs to be informed (at summary level) of all the organization's activities.

On the other hand, the lower the manager is in the hierarchy, the more he needs to rely on precise and up to date information for his activities; yet he only needs a very limited set of the total information for his own particular activity.

Operational Management:

Requires day to day personnel performance information, machine performance and information on material usage.

At the middle management level:

This can be combined and summarized into exception reports personnel equipment or materials above or below accepted levels and comparisons against budget.

At top management level:

Middle management information can be combined and summarized, and also perhaps at the stage projections or forecasts produced.

Types of Functional Managers

• Finance manager (Chief financial officer)
• Production manager
• Marketing manager
• Human resources manager IT Manager (Chief information officer)

Board of Directors

These are a set of individuals who are appointed by shareholders to run the business organization on their behalf. The board of directors will usually consist of executive (working) and non-executive (non-working) directors. Their functions include formulation of long term strategies, decision making, appraisal of senior managers and other similar tasks"

Managing Director (Chief Executive)

This !s the individual who is responsible for the overall operations of the business. Usually occupying a seat on the board he/she is responsible for overlooking all functional areas while at the same time communicating operational performance to the board.

Production Manager

This is the individual who is responsible for planning production runs, appraising factory staff, measuring production performance, instructing purchasing managers, improving machinery and technology, etc. His/her function requires a detail understanding of technical systems and that which is associated with the real work environment.

Finance Manager

This is the individual who is responsible for raising suitable debt and equity finance, allocating financing to other operations, investing surplus funds appropriately, overlooking the preparation of financial statements, budget preparation, etc. His/her function requires a detail understanding of financial management and probably accounting skills as well.

Marketing Manager

This is the individual who is responsible for planning promotions, advertising campaigns, making pricing and distribution decisions, brand management, labeling, etc. He/she should be a good communicator, have a broad understanding of customer views and also be able to manage their requirements effectively.

Human Resources Manager

This is the individual who is responsible for identifying labor requirement, selection, recruitment, appraisal and training of the general employees of an organization. He/she should be a good communicator, have a broad understanding of employee views and be able to negotiate and motivate most employees.

IT Manager (Chief Information Officer)

This is the individual who is responsible for managing all IS related activities within an organization. His/her functions includes;

• Formulating long term IS strategies.
• Appraising IS systems.
• Selecting, recruiting and training IS staff.
• Servicing the information requirement of all aspects of the organization (most important)
• Ensuring timely upgrade of hardware and software systems.
• Training general staff in using IS facilities.
• Overlooking organizational computer and communication systems.
• Making recommendations on IS related activities to the board of directors