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Identify and describe the three levels of the organizational hierarchy. Which types of information systems serve each level? Describe each with examples from a real African scenario.

The three level pyramid shows a model based on the type of decision taken at different levels in the organization.

·         The first level represents transaction processing systems focused on operational decisions.

·         The second level represents management information systems focused on tactical decisions.

·         The third level represents executive information systems focused on strategic decisions.

Third Level

An executive information system (EIS) is a decision support system (DSS) used to assist senior executives in the decision-making process. It does this by providing easy access to important data needed to achieve strategic goals in an organization. An EIS normally features graphical displays on an easy-to-use interface.

Executive information systems can be used in many different types of organizations to monitor enterprise performance as well as to identify opportunities and problems.

Companies like Safaricoms’ Board of Directors and Stake Holders e.g. the Government use this system to assist the senior executives in the decision making process. The data they need is availed by the EIS in terms of trends of the market, graphs and pictorials such as charts stating what is happening generally in the organization and the effect the organization is feeling.

This information may be inclusive of which subscribers are bringing the company profit in terms of Pre-paid and Post-paid services, and whether they will need more roll out of either service as the want to maintain a steady profit, or whether the market can sustain an upgrade to a 4G Cell network and even increase subscribers. Therefore EIS filters out all the unnecessary information and compiles only the information needed by the Board where anything that comes from there trickles all the way to the bottom as an Executive order or Decision.

Second Level

A management information system (MIS) is a broadly used and applied term for a three-resource system required for effective organization management. The resources are people, information and technology, from inside and outside an organization, with top priority given to people. The system is a collection of information management methods involving computer automation (software and hardware) or otherwise supporting and improving the quality and efficiency of business operations and human decision making.

Management information systems are used to make tactical decisions in organizations.
As an area of study, MIS is sometimes referred to as IT management (information technology management) or information services (IS). Neither should be confused with computer science.

Sarova White sands Hotel is an example, they need a system to support tactical decisions and supports business decision making. The system should collect information management methods involving computer automation.

The system can show how many bookings were made for over a given period of time, or what the customers usually prefer to do at a specific period of time e.g. going to the beach, or going site seeing around the region. They can have an idea of what Theme to implement at given times. At times they will require more food to be brought in to accommodate possibly a large number visitors and plan to fulfill them or reduce the amount as certain periods of time their numbers are little. This system helps them plan even ahead of time and reduce losses that might be incurred.

First Level

A transaction process system (TPS) is an information processing system for business transactions involving the collection, modification and retrieval of all transaction data. Characteristics of a TPS include performance, reliability and consistency. Transaction process systems are used to make operational decisions in organizations. TPS is also known as transaction processing or real-time processing.

Kenya Commercial Bank (KCB) has a system that supports business processes and operations. Their Transaction Processing System (TPS) would collect details about their subscribers and customers when they open an account in their database. Modify their details if need be when a withdrawal or deposit is made to an account, alongside processing the frequency of use of the account and how much money is transacted in the account daily, monthly and annually. This will be stored in the database as purely data.

Modifications like connecting the account with the Kenya Revenue Authority (KRA) for tax. It is all recorded under their name with the usage rate and all transaction data within the Bank.

References (Links)
http://www.techopedia.com/definition/1016/executive-information-system-eis
http://www.techopedia.com/definition/707/transaction-process-system-tps
http://www.techopedia.com/definition/8240/management-information-system-mis

http://www.chris-kimble.com/Courses/World_Med_MBA/Types-of-Information-System.html

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All this Was Documented and Created By:

ANYONA JOSEPH MAGIYA

                      MUEMA CINDY NDUKU

                      NJOGU ERIC MATTHEW

                     OKAKA NAVIN OMONDI

                      FOWLER CHRIS OKENYE

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