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Management-level systems support non-routine decision making. They tend to focus on
less-structured decisions for which information requirements are not always clear. These
systems often answer ?'what-if' questions. Example;
- What would be the impact on production schedules if we were to double sales in the month of December?
- What would happen to our return on investment if a factory schedule were delayed for six months? Answers to these questions frequently require new data from outside the organization, as well as data from inside that cannot be easily drawn from existing operational-level systems.
Strategic-level systems help senior management tackle and address strategic issues and long— term trends, both in the firm and in the external environment. Their principal concern is matching changes in the external environment with existing organizational capability, what will employment levels be in five years? What are the long-term industry cost trends, and where does our firm fit in? What products should we be making in five years?
operational management
Information systems also serve the major business functions, such as sales and marketing, manufacturing and production, finance and accounting, and human resources. A typical organization has operational management, and strategic level systems for each functional area.
For example, the sales function generally has a sales system on the operational level to
record daily sales figures and to process orders. A management—level system tracks monthly
sales figures by sales territory and reports on territories where sales exceed or fall below
anticipated levels. A system to forecast sales trends over a five-year period serves the strategic level. We first describe the specific categories of systems serving each organizational level and their value to the organization. Then we show how organizations use these systems for each major business function.
NatalieR answered the question on June 14, 2022 at 11:54
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