Information Systems Chapter 10

Introduction An information system is a collection of people, procedures, software, hardware, and data They all work together to provide information essential to running an organization Computers are used in organizations to keep records of events Information system (key term) is a collection of all necessary resources working together to run an organization.

Computer-Based Information Systems Almost all organizations have computer-based information systems Four types of computer-based information systems that help track and keep information flowing in the amount and direction organization needs to stay on track: TPS –Transaction processing system (key term) ; records day-to-day transactions; foundation for other information systems MIS – Management information system (key term) ; summary of detail from TPS; produces standard reports for management DSS – Decision support system (key term) ; data source: flexible analytical tool; assists managers with solutions for a wide range of problems; uses the TPS ESS – Executive support system is also referred to as the Executive information system (EIS) (Key Term) ; highly summarized information presentations; gives senior management a broad company view, assists with strategic planning; sourced internally from TPS and MIS, and from external sources

Transaction Processing Systems (TPS) Records day-to-day transactions in a database Also called data processing systems (DPS) One of the most essential uses of a TPS is in Accounting Sales order processing Accounts receivable Inventory and purchasing Because TPS helps keep track of routine operations and records some firms call this data processing system (DPS) (key term) Records routine, day-to-day operations in a database Foundation for other information systems within organization Associated with sales, order processing, inventory (Key Term), purchasing (Key Term), accounts payable (Key Term), accounts receivable (Key Term), payroll (Key Term) – other accounting functions.

Management Information Systems (MIS) Produces standardized reports in summarized structured form to support decision-making by middle managers Produces predetermined format reports Periodic reports Exception reports: unusual events Demand reports: on request MIS use databases; DBMS required to integrate the databases of the different departments A computer-based information system that produces standardized reports in summarized, structured form Periodic reports (key term) – produced at regular intervals Exception reports (key term) – call attention to unusual events Demand reports (key term) – opposite of periodic, is produced only upon request

Decision Support Systems (DSS) Enables managers to get answers to unexpected problems Reports do not have a fixed format Support 3 decision models: Strategic: Top-level managers Tactical: Middle-level managers Operational: Low-level managers DSS is quite different from transaction processing system Gives a summary of the data Helps decision makers analyze unanticipated situations Managers often must contend with unanticipated questions; DSS help provide answers to unexpected, non-recurring problems DSS helps user (management or otherwise) make decisions For larger problems a group decision support system (GDSS) (Key Term) is used

Executive Support Systems (ESS) Designed for top management Similar to MIS and DSS but easier to use Provides immediate access to a company's key performance indicators ESS is a like a DSS or MIS that can present, summarize, and analyze data from an organization’s databases Emphasis on ease of use so that executives may operate without extensive training Easy, direct access about the company’s performance; highly summarized information to help make decisions; combines internal data from TPS and MIS with external data

Other Information Systems Information workers Data workers: Assistants, clerks Knowledge workers: Engineers Office automation systems (OASs) Supports data workers Project management programs like Microsoft project Videoconferencing systems Knowledge work systems (KWSs) Use specialized systems, such as CAD/CAM (involved in product design and manufacturing) Expert Systems: Used to apply the expert knowledge to specific user problems Information workers (key term) create, distribute, and communicate information. Information workers – Communication and distribution - data workers (key term); include but not limited to secretaries, clerks, Creation - knowledge workers (key term); engineers, and scientists Office automation systems (OASs) (key term) support the activities of data workers by managing documents, communications, and scheduling. Secretaries and clerks are data workers Project Managers(key term) – programs designed to schedule, plan, and control project resources Videoconferencing (key term) systems – computer systems using the computer and Internet that allow people located at various geographical locations to communicate and conduct in-person meetings Knowledge work systems (KWSs) (key term) CAD/CAM (computer-aided design/computer-aided manufacturing) (Key Term) – used by design and manufacturing engineers