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Assignment 1

EBIS200-Information Systems and Organizations, Session 2 D-B1-2947-1 Egemen Kanicok


An information system helps the people (e.g. manager) to achieve operational excellence in a company. These include for example the improvement of efficiency and achieving higher profitability and productivity in the operating business. The information systems and modern IT technologies provide useful and effective tools to achieve the above mentioned goals. The modern information systems helps the companies to define a customer oriented supply-chain and according to their own.


Many managers have the problem that they can not get the desired and correct information at the right time to make an informational decision. Incorrect, unusable or

inaccurate information is the result of high costs, customer loss, misallocation of resources, poor response times, overproduction and underproduction of goods and services. For an improved decision making the information systems make it possible for managers to provide real-time data or information from the marketplace to avoid the above mentioned problems and provide a better performance.


Technical approach: includes the disciplines Computer science, management science and operations research. It emphasizes mathematically-based models to analyze an Information System. It also deals the physical and technical formal ability of the system.

Behavioral approach: includes the disciplines Psychology, Economics und Sociology. It is a field of information system, which deals with the behavioral disorder (e.g. strategic business integration, implementation, etc.) of the system, which is under development.

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In a socio-technical perspective is the performance of a system optimized, when both, the technology and organization are adjusted mutually with each other. The sociotechnical perspective shows us that the optimal organizational performance is

achieved through the common optimizing of the social and technical systems, which is used in production. The socio-technical view helps us also to prevent the mistaken notion that the information systems consists only with computer and technology.


TPS: stands for transaction processing system. It is a computerized system. These types of systems perform and record accurate daily transactions (e.g. for reservations, payroll, customer statements, payment reminders etc.) necessary to conduct business. Transaction processing systems allows managers in the lower level management to monitor status of operations with the external environment. It serves operational levels, operational staff and supervisors. It also serves predefined structured goals and decision making in a business.

MIS: stands for management information system. This system is used in the middle level management of a company. It provides the companies in the middle management information, which helps the companies can directed and the controlling can be operated. It provides reports on firms current performance and answers to routine questions.

DSS: stands for decision support system. It is a system that helps the human decision makers to determine relevant information for the operational and strategic tasks. It supports the nonroutine decision making. It also serves like the MIS in the middle level management. It is divided in two branches: model driven DSS and data driven DSS.

ESS: stands for executive support systems. These kind of systems support the senior management (top-level management). It serves as a reporting tool and relies on the information inputs (external or internal data) from the MIS and DSS of a firm and provides this information as well as the summarized information to the executives.

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The traditional information systems and the enterprise systems actually fulfill the same purpose. They supply the user with information. It is important to distinguish in which way the information made available to the user. The traditional information systems and enterprise systems are composed of different departments and modules, where the desired information is obtained. The different modules of a traditional information system are not connected together and can not communicate with each other. This leads to that you can not get the information automatically from the information system. You have to ask another department to get information about e.g. an invoice. The data or the information in a traditional information system can not be provided in real-time. This problem was adequately resolved by the enterprise systems. With the help of the enterprise systems, the different departments in an organization can now linked together and the desired information could be made available in real-time to the user. All business processes in an

organization can be controlled with an enterprise system and processed.


In a company, a supply chain management software is used to optimize the effectiveness and efficiency. These include the achievement of the quality benefits, cost benefits and a reduction of the delivery times. Further benefits of a supply chain management software is to avoid supply bottlenecks and the rapid adaptation of changes in the market. Supply chain management software is also a network of different companies which are working together to produce a product and transport it to the end customer. It supports

the strategic planning, which includes especially the demand and inventory planning. Through the introduction of an efficient supply chain management software in an organization, the sales increased significantly.

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Innovation and competitiveness are very important factors in an organization. Knowledge management is one of the key factors in the company to ensure the innovation

and competitiveness. A company needs a good knowledge management to keep the long-term sustainable competitiveness. The companies want to build a knowledge advantage and creating added value to optimize the processes and deliver a better performance. The knowledge management helps the companies to achieve a better service and product quality, productivity, customer focus and satisfaction and knowledge transparency.


Knowledge acquisition: it is the first stage of the knowledge management value chain. The objectives of the knowledge acquisition are documenting tacit and explicit knowledge for the experts, developing an expert network for the experts and storing information (documents, reports, presentations, best practices). It also ensures the information gathering and data mining.

Knowledge storage: This process stores the data and information in e.g. data bases or in paper-based. For manage, update and distribute the stored information or data, the organizations need a document management system. The management supports the development of planned knowledge stored systems and they reward the employees for update and store documents accurate (e.g. paper-based data).

Knowledge dissemination: includes the knowledge transfer. This process describes the various ways that knowledge can be disseminated within the organization (e.g. internet portals, collaboration tools, search engines etc.).

Knowledge application: is the final stage of the knowledge management value chain process. This stage emphasizes the need to see and evaluate knowledge in terms of organizational capital and return on investment. To provide this return on investment the organizational knowledge must become systematic part of management decision making.

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